Organizational Change - Energy City Qatar - Case Study Example

Organizational change scenario xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Name xxxxxxxxxxxxxxxxxxxxxxxx Organisation xxxxxxxxxxxxxxxxxxxxxxx Lecturer xxxxxxxxxxxxxxxxxxxxxxxx Date of submission Organizational change scenario (word count 500) I had a chance to work in Energy City Qatar a Real Estate company located in Doha Qatar. This company has maintained competitive advantage over the past years due to provision of quality services and products. I was working as an external appointee head in the finance department. This department was undergoing a number of changes to enhance its performance and attract more clients. Since the company is multimillionaire company, there has been an urgent need to ensure that resources are well managed and channeled to projects that aid company growth. Company managers came to a conclusion of changing the management of the company from Arab to Europe management. The finance department was previously divided into two subsections (auditing and accounting sections) with each having its own head. After the financial review done in 2008, the management came up with changes and decided to amalgamate the two subsections into one hence forming a common administrator for the two sub-sections. This meant that an overall leader was required to administrate the sub-sections as one unit. Since appointing a head from one of the leaders in these subsections was deemed inappropriate, the management came to a conclusion of having an external appointee to take up the position and responsibility of managing 20 employees. Staff members were not consulted in the determination and implementation of change. The employees had developed a negative attitude towards each other owing to lack of a good information flow in change implementation. Change implementation process took longer before beingg enacted. Speculations about redundancy in accounting sub-section were rife for a long time. In reaction to this false redundancy, the management team at the highest level declared the administrative section in accounting redundant. This declaration meant that all the staff in accounting section had to reapply for their own jobs. Consequently, there were a lot of negative perceptions about the values espoused by the organization. The whole idea of staff having things done for them and not by them was not embraced by employees. Since this two groups held negative perception about each other, working together as a team proved quite difficult. I had a hard time trying to ensure that things are done the right way especially dealing with a staff when on the wrong. In addition, my predecessor was a victim of the redundancy. There was a challenge in agreeing with him since he felt intimidated. There was an urgent need to solve the existing differences if the set departmental and organizational goals were to be met. Poor methods of communication and information flow were attributed to existing difference. Staff members from accounting section could not easily cope with the staff in auditing section since they felt intimidated after being declared redundant. The management did not also explain the reasons for terming this sub-section redundant. Managing these people was quite difficult owing to the differences that existed between them. This resulted to a delay in change implementation. Analysis of the scenario Leadership approaches (411 words) In all forms of leaderships, there are behaviors, abilities and characteristics needed by the different leaders to meet today’s challenges. Leaders in different sectors have always failed to effectively and ethically carry out their assigned roles such that only a significant number, if any, can be described as 100 percent principled. The leadership approach used in Energy City Qatar was the assertive approach. Since the management wanted to ensure a change in the way people behaved, they went forth and implemented their own ideas without consulting the staff. This kind of approach is directed towards ensuring that an action taken rather than a reaction (Hughes 2004). Managers simply came up with conclusions that a change had to be implemented but did not consider the input of the staff in determining how this change was to be implemented. Moreover, the staff members were not involved in problem identification meaning that the managers were dealing with redundancy which was not the real problem. In this case, the problem was the period taken to implement change which resulted to poor performance. Implementation of a wrong leadership approaches made the staff to suffer in that they had to reapply for their positions. Staffs in accounting were the victims. This approach was not the very best based on the situation. Staff members needed to be handled with care to ensure that they felt part of the organization hence resulting to willingness in contributing to positive development. In addition, the managers did not take time to research what the problem was. A situational approach would have been more effective because it would have ensured that a good relationship between the employees and the management was maintained. To ensure effectiveness, Manslow hirachy emphasizes on mutual respect, stake holder participation in the process of decision making, democracy, self knowledge and self awareness (Mahoney 2001). The managers ignored democracy and stakeholder involvement when deciding on an implementing change. In my opinion, victimized staff members were not the cause of the problem but had to suffer the repercussions of poor leadership approach. They were de-motivated and restoring trust in the management would take more time. Instead of dealing with the problem to bring about a better working environment, the approach applied resulted to more problems which were even harder to deal with. According to Vroom, stakeholder involvement identifying the plan of action led to better results. Change has to be accepted by the parties involved if it is to be effective. Change management strategies (402 words) The change in finance department was radical but unplanned. The managers simply came to a decision of combining the two sub-sections without any form of consultation to understand the real problem. Though Dunphy and Stance identify radical change as important in preventing an organization from being distinguished, there is need for a comprehensive search to understand the problem. This search was not carried out as no staff was involved in problem identification of the need for change or its implementation. The change strategy applied was power coercive. This is indicated by the fact that change was dictated by managers. This change strategy assumes that people will simply follow what they are told as they are compliant. Success in implementing change is based on his or her ability to exercise power. This form of change strategy is applied when there is limited time and a very serious threat facing the organisation. In this case, the managers in the highest level dictated what was to be done at the departmental level. However, this change strategy did not succeed. The poor relationship that developed between staff from the two sub-sections and also the managers indicate this. In my opinion, applying empirical rational change strategy would have proved more effective. This strategy assumes that human beings are capable of applying rational thinking in accepting or rejecting change. They will follow an idea in relation to self interest. Communication forms the basis of this strategy. This would have required the managers to communicate their intentions to the people on the ground and ensure their involvement in identification and implementation of change. Convincing the staff on the importance of this change would have resulted to better working conditions while enhancing team work. Collaboration of all stakeholders in strategy implementation was required. However, it was a different case in case in finance department. The managers had the say while the staff simply submitted. Consequently there was poor job performance and job dissatisfaction. This also meant that the managers would not easily get support from the staff incase they needed their support later. ECQ top management team dictated change and ensured its implementation by application of their authority. The use of directive method ensured that those in the lower levels were not informed of any change as this was deemed unnecessary. Participative method would however have made a greater and positive impact. Power and politics (459 words) Politics and power form a basic part of any organization. However, a person’s success in this is dependant on personal characteristics as well as surrounding environment. Power is the ability to be above other people and cause them to act in a given way forcefully or willingly to achieve a set goal. There are several basis of power that try top explain the behavior of leaders and the outcome (French and Raven 1959). There are five main power bases two of which are personal while the rest are formal power bases. The personal power bases are referent and expert power. Formal power bases are rewarding power, coercive power and the legitimate power. These five power bases are important for the success of any leader. However, the bases can be misused to the disadvantage of those being lead and the organization and to the benefit of the leader (Crosby, 1979). In this scenario, the applied power base is coercive power base and expert power base. In the application of coercive powerbase, employees simply follow what has been dictated for fear of facing consequences such as being dismissed from the job. Accounting section was dissolved and a single section formed when redundancy was suspected. The fact that the staffs in lower levels were not consulted proves that coercive power was applied. In addition, staffs had to reapply for the positions if they needed their jobs back. In my opinion, this in itself is a form of punishment to ensure control. This is evident by the fact that the employees submitted to what was determined by the managers. The application of expert power base is evident in that those in high positions were qualified professionals with management skills. Legitimate power base was also applied when the managers at the organisational level appointed an external expert to take-up the new managerial position in finance department rather than promoting the existing leaders. Referent and rewarding power bases were not applied. Several methods can be applied when one wants to rise to a position of power. These include professionalism and personal power. It is evident that all the managers acquired power on the basis of professionalism. Job performance and ability to practice authority were the back bone of the departments. Personal power can be acquired through learning to gain knowledge. Since there was poor communication, developing personal power was a challenge. My selection as the departmental head was based on my educational level, specialization and past experience. This indicates that professionalism was a priority in the organisation. Politics is the ability to influence people to act in a given way through the use of authoritative power, influencing people or negotiating. In this scenario, the managers used authoritative power to have things done. Conflict Issues (453 words) Conflict develops in an organization or any working place when one party thinks ill of the other party or is in a position to do anything that will affect the other person. It’s common to find bosses in disagreement with their employees or employees relating poorly with each other. In this scenario, the bosses who are the organization managers are not in terms with employees and this made staffs feel disrespected and intimidated. Staff members from the past two sub-sections dislike each other. Emotional effect conflict is evident where staffs from the accounting and auditing sections feel a lot of hatred, dislike, and disrespect for the other group. The two teams cannot thus work together effectively pursuing same goals. Conflict can be destructive if mismanaged and can result to failure both at finance department and organizational level (Crosby 1979). However, if well managed, it can be a source of development and improved performance as people learn and become more creative. Most people still consider conflict as negatively influencing the organization and try to apply all measures to ensure that it does not occur. However, conflict is sometimes inevitable and a source of power to move to the next level. Ensuring good management is very crucial. Interpersonal conflict is evident among the staff. This arises as a result of competition to take positions of authority. Being the finance department head was intimidating to the previous head of accounting that had to now work under me. Demotion to a lower position or other acts such as reapplication of the posts brought about conflict. Being aware of felt and perceived conflict is the good beginning point in its management. This results to application of all possible methods to manage the situation. There are five strategies basic to conflict resolution. These are avoidance, accomodation, compromise, competition and collaboration (Robert, 2003). One should separate emotions from decision making process. Each of the five strategies can be used in solving a problem but certain skills are required in identifying what to use and what not to use. Avoidance is the main strategy applied in dealing with the conflict in ECQ. This is evident when the management seeks to employ an external party to take up the position of departmental head. Appointing a head from the existing sub-section leaders would have agreviated the conflict. Accomodation is also applied when the two sub-sections are placed under a common leadership to ensure team work. The result of conflic management is improved performance though the situation was not totally under control. Resolving the conflict would consume more time than expected due to tension between the staff and the poor method of handling change implementation by the managers. Organisational culture and design (405 words) Organisational culture can be the source of power for the organisation to develop or the element to drag it behind. It can be define as a combination of shared beliefs, norms and assumptions by agiven group. These three determine how people act or live including how they correlate with each other. In this scenario, the organisation has values and norms that dictate every day’s performance. Customers are their passion and all actions are directed towards customer satisfuction. In addition respect for all people is withheld as managers have to treat the workers with dignity. To achieve set goals and objectives, the organisation highly regards individual achievement in job performance. Respect for autholity was emphasised and all employee had to be aware of this. The organisation is a corruption free zone where integrity was to be maintained by all regardless of the position one held. Those thet failed in this are subject to displinary even if in the position of a manager. Quality in the service production and team work are encouraged without which the organisation would fail (Crosby 1979). This was assesed through the performance of the students in their exams and field of specialisation after they had left the organisation. In regard to external enviroment, the organisation seeks to enhance customer loyalty hence maintaining competitive advantage. This has lead to the encoragement of developing meaningfull innovations. Conducting research forms the basis for organisational development if ECQ is to positively impact the community (Santrock 2007). Lastly, service to all is aimed at attracting more clients while positively contributing to the lives of the surrounding communities through offering free trainings and internship opportunities to fresh graduates. Subcultures sets exist in most organisations. These are characterised by people facing common experiences and problems. In the organisation, subcultures were very strong when the sub-sections existed. These were based on tasks assigned but were neutralised when the sub sections were done away with. Organisational structures in the organisation were matrix structures where the organisation had several departments with department heads in control. These department were divided according to the areas of specialisation such as engineering departmet, finance department, department of social sciences among others. The different managerial levels and leadership position including department heads formed the chain of command. The staff formed controlled students in the lecture hall. Time was a valued resource and effective time management was ensured by reducing time wastage. Conclusion (433 words) Growing population and increased need for better housing facilities has favoured ECQ making it the most prosperous company in the area. The company depends totally on its customer’s loyalty and satisfaction to maintain positive growth. This is evident with the business increasing the variety and diversity of her products and services from rental houses to business centers especially favouring oil and gas trading. For instance, the company initially traded in real Estates only but has now moved in to provide telecommunications, commercial tents, interned among others. This has contributed to the high growth rate experienced over the years. ECQ has also worked hard to in ensuring a high quality. ECQ has been working hard to redefine its systems and enhance positive change. The rising number of private sectors offering similar services. the implementation of changes at departmental and organisational level resulted from. Howeverr, positive change cannot be achieved if human capital is to be ignored as the basic need in achieving set goals and objectives (Singer 2000). Change that is well planned, goal oriented and research based is the only change that can positively affect the society. The empployees of these organisations should be viewed as the most important asset (Lyon 1999). This means that they should be treated as equal partners in change implementation. ECQ managers have however ignored this point in that they suggest and implement change without consulting staff at the departmental level. Other problems emerge when some stakeholders are assumed in decision making. Besides, it would be illogical to think that employees who feel intimidated would tirelessely work on the vision of the organisation. Poor communication strategies such as the one identifyed in ECQ have resultd to the fall of many instittutions. To solve this, continous training with the aim of developing leaders and not masters should be implemented. Resistance in change implementation mainly resulted from the poor communication systems and ignoring stakeholders. This resulted to some feeling undermined and hence withdrawing from sharing the vision of the organisation. Though organisational conflic is innevitable, the intitution takes advantage of conflict incidences to implement change and ensure improved performance. This has resulted to mainatanance of a positive growth rate over the years as more clients are drawn to purchase products and services. However, organisational conflict must be controlled to prevent explosion of emotional reactions. This organisation has ensured this throught he establishment of good monitoring tools as well as applying conflict avoidance skills. Politics in the organisation form a basic part in the well run of the departments. Bibliography Blake, R, Mouton, J. 2003, The Managerial Grid, The Key to Leadership Excellence, Houston, Gulf Publishing Co. Bondas, T, 2006, Paths to nursing leadership, Journal of Nursing Management. Borbasi, S, & Gaston, C, 2002,Nursing and the 21st century, what's happened to leadership? Collegian. Churchill, G, A, Ford, NM, Jr, & Walker, O, C, Jr, 1976, Organizational climate and job satisfaction in the sales force, Journal of Marketing Research. Crosby, B, 1979, Quality Is Free, The Art of Making Quality Certain, New York, NY, McGraw- Hill. Dale, M. ‘Learning organisations’ in Mabey, C, and Iles, P, eds. Managing learning, London, Routledge in association with the open university. Etzioni, A, 1964 Modern Organizations, Englewood Cliffs, New Jersey, Prentice Hall. French, J, and Raven, B, 1959 "The Bases of Social Power," In Studies in Social Power, Dorwin Cartwright, ed, Ann Arbor, MI, University of Michigan Press. French, J, R, P, & Raven, N, 1959 The bases of social power, In D, Cartwright, Ed, Studies in Social Power, Ann Arbor, University of Michigan Press. Handy, C, Understanding organizations, 4th ed, London, Penguin Books. Hughes, S, 2004, The mentoring role of the personal tutor in the 'fitness for practice' curriculum, an all Wales approach, Nurse Education in Practice journal. Lyon, D, 1999, Post modernity, Open University Press, Buckingham. Mahoney, J, 2001, Leadership skills for the 21st century, Journal of Nursing Management. Santrock, J, 2007, A Topical Approach to Life-Span Development, New York, McGraw-Hill. Senge, P, 1994 the leader’s new work, in Mabey,C, and Iles, P, ed, Managing learning, London, Routledge. Singer, P, 2000, Writings on an Ethical Life, Harper Collins Publishers, London. Stacey, R, D, Strategic management and organizational dynamics, 2nd ed, London, Pitman publishing. Read More