Rationales and Strategies for Organizational Change - Assignment Example

Rationales and Strategies for Organizational Change XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Rationales and Strategies XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Name XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Course XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Course instructor XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Date submitted Q1a & b. Identification of rationale and strategies for change Bloomberg Business Despite being among the top ten groups in innovation, Business Consulting Group (BCG) has had to make considerable adjustments to its operations as it was disappointed with the returns on the investments in their business area. The main focus for the firm was to identify the major huddles to innovation that many companies face in this age. Among the reasons given for the need for change included the lack of dynamism in their innovativeness that is able to meet the ever changing consumer needs which keep shifting. Secondly, the comprehensive outsourcing and the open source software has made it the purpose for all the companies that need to attain the formulated goals and meet competitive profits to move with speed. Thirdly, BCG, from their survey findings, identified the lack of coordination as a stumbling block to innovation. To counter this, BCG recognized the prerequisite for it not to employ only the lip service strategies in the breaking down of silos but in addition, create clear communication models and create environments that will enhance teamwork and collaboration. In addition, workers represented on the organizational chart are to be teamed up and give rewards based on innovations (Bloomberg Business, 2006). The Conference Board Review For meaningful change to occur in an organization there has to be a talented leadership. The leadership should be able to solve the complex problems that emerge and be able to formulate strategies that will be able to meet the growing needs of the future. Among the problems faced by the General Motors (GM) in the USA is the alignment of leadership that has a long term strategy. The leadership as identified lacked the ability to adapt to change given the nature of the ever dynamic environment, failing to put down the laid down strategies into practice and failing to reinvent themselves to meet the growing future demands. GM realized that 2/3 of the planned initiatives by the firm failed to materialize as most of the formulated strategies were not successfully implemented. 95% of the employees were unaware of the organization strategies. This to them is the lack of commitment from the leadership in ensuring the formulated plans and strategies are successfully implemented. To avert this, GM made it a deliberate attempt to create awareness of the organization’s business strategies to the senior executives. This will be able to create and develop an understanding to the top management with the skills and knowledge of what the organization is to do and achieve. The understanding of the organization’s strategies by the top management will enable the firm to boost its output levels to meet the growing demands of the consumer needs. GM had to carry out an assessment of the leadership capabilities in comparison with those that the firm needed in the future. This was to enable the organization to set clear and attainable leadership strategies that were required to meet the ever growing future needs. This was done by conducting a SWOT analysis of the company. Secondly, GM purposed to get approaches that will be useful in the aligning of the organizational culture and design which will be able to create the required leadership. The firm recognizes the effect culture has on meeting the formulated goals. Culture influences leadership either positively or negatively. Appropriate steps are to be effected to allow the culture to embrace the new ways in operations that are in line with the new strategies. The analysis of the culture effects at work to GM is able to eliminate poor behavior and reinforce effective behavior. There is need for the firm to get clear about the goals and leadership beliefs. The firm recognized the need for the leadership to examine organizational principles, practices and policies and be able to support the development in leadership (The Conference Board Review, summer 2010). T-Magazine Companies are currently experiencing structural changes due to changes in global economy making them to come up with ways so as to fit in the business sector. Clearly, with new emerging markets across the globe organizations seems to embed into a sustainable recovery as part to fir into the changing system. Ernest and young is one of most renowned auditing firm across the globe is greatly involved in reallocating resources through shifting their performances to reflect on new challenges brought by changes. It has been brought to their understanding that not only are world markets evolving but also technology and ways in which companies are operating. As part to fit into the changing global economy, the company has embarked on capitalizing on new technology so as to improve its research, development, distribution and procurement procedure and be ahead of its competitors in the auditing market (T-Magazine, 2011). Further, the company has realized an urge to strike an equal balance between both local and global entities. This is very effective in responding to changes created by global economy since new operation models are implemented. Hitting a balance between local and international entities have resulted to downsizing of staff since new technologies experienced between these two entities have replaced individual working in this company. In addition, the balance ensures there is centralization of organizational functions which validate effective cuts in cost and possibilities and greatly increasing transparency. It is evident that shifting towards global economy is one way of tackling changes since today more multinational and local companies have moved to be truly global. Changes in this company operating model which includes its people, structure, processes and systems (T- Magazine, 2011). Q. 2a Comparing rationales and strategies of organizations Evidently, there is clear indication that in all the three companies discussed global change is key factor that contributes to major changes within organizations. All the discussed companies seem to be having same rationale and strategies while dealing with changes both from internal and external pressures. Striking a balance between various changes and strategies being incorporated by companies is essential in achieving the best change management practices. Commonality as discussed above are mostly related to kind of approach being used by the companies as they try to tackle problems arising from improved technology , globalization and external and internal pressures. It is evident that all companies have decided to centralize their functions and structures as a way to adapt toward different changes. New technology and globalization are considered to be main factor that have forced all three companies to change their organizational structures and indulging in mergers and acquisitions. All companies find the need of understanding that change which is driving it towards profits and success. By so doing a general idea is achieved whereby a competitive advantage is obtained to tackle with emerging changes. The organizations seem to agree to the fact that there is no better solution in managing change constant ideas need to be developed so as to hit a balance between organizational goals and different changes emerging. Q2. B Strategies and rationales that have been given legitimacy Innovativeness and leadership are given more legitimacy in the firm’s quest for meaningful change. To begin with innovativeness is considered to be a new item or idea in the market. Innovation of new products by an organization will determine how the products will perform in the existing market conditions. This is vital to the firm as it will determine how it will grow and expand in the market and gain competitive advantages in the vibrant and unstable circumstances. This will involve the creation and the giving of the information on how the product will be used by the consumers. Innovativeness is able to create the opportunity for new firms to gain an upper edge in an already existing competitive market. However innovations are associated with higher risks and require additional budgetary allocation in some cases. Innovativeness in the firm comprises of product innovation, production innovation procedure, labor organization and administration practices (Green, W. et al, 2006, p. 264). Innovation can only yield success if the firm’s actions are in line with what is valued by the market. The firm needs to understand its consumer’s needs as the yare the factors that determine the performance of the newly invented or improved products. Innovation are to be in line with the firm’s strategy in terms of the type of innovation, the amount of resources required to implement the innovation activities, the avenues through which the firm get and share /exchange information and the effects of the innovation to the market. Secondly, all firms give attention to the organizational leadership as a key element to attaining meaningful change in the organization (Katou, A. & Budhwar, P, 2006, p. 1224). Effective leadership offers support in enhancing performance through the application of skills and knowledge in ways such as training programs, mentoring and action learning. This enables the work force to gain formidable knowledge that is able to make the organization attain its formulated goals. Best practiced leadership enables the workers to be able to learn from their work. Good organizational leadership should be able to offer solution to existing problems. It should also be able to enhance teamwork as this enable the organization to be able to endorse success and endurance. Studies by (Paauwe, J & Boselie, P, 2005, p. 992) indicate that organizations that are able to withstand competitive environments are those which influence the workers to effectively and willingly contribute to the good of the group. Such leadership is able to coordinate and guides the workers into achieving its goals. Leadership serves different purposes depending on the organization. GM for instance needs a different organizational leadership strategy from BCG (Ramaswamy, E & Schiphorst, F, 2000, p. 665). Leadership has either positive or negative effect to organization’s performance. It is maintain that leadership is the major recipe for the performance of a team. Leadership effectiveness is determined by the way through which the leadership permit or guarantee employee satisfaction and motivation. Organizational leadership are governed and determined by the organizational cultures (Tsai, C, 2006, p. 1529). The employment of effective transformational leadership is able to convince workers to lay aside their differences and work towards a collective purpose. This can be attained through the combination of common goal, effective principles, relationships and role modeling. In addition, influence the organizational goals in decisions on the strategic goals and policies. Leaders are t influence their staff in maintaining high levels of performance and collaboration. It is also vital for leaders to be able to encourage innovativeness that are in line with the organization’s strategies (Richard, O & Johnson, N, 2001, 300). Q. 2c Application of single and multiple rationales or strategies The rationale for change depends on the type of company and the challenges they are facing. GM for example is facing increasing challenges of market competition as the yare supposed to ensure they satisfy their consumers by designing models that are attractive and meet the fuel consumption needs (The Conference Board Review, summer 2010). These challenges are becoming increasingly competitive as the dynamism in the market is to be met by equal measures of technical innovations. The innovations are accompanied by effective leadership skills which are able to identify, support and motivate innovation. However, the innovations need to be in line with the strategies of the organizations (Wright, P & Boswell, W, 2002, p. 248). To BCG, there is need for multiple rationales as the innovativeness comes at a cost (Bloomberg Business, 2006). It requires additional finances and the ability of the organization to work as a team. To increase continuous creativity, the firm identifies the need for effective communication and leadership style. Leadership and communication are vital as they determine the direction the organization is to go in terms of sustaining its place in the competitive market (Wright, P, et al. 2005, p. 877). In conclusion, the challenges that exist in the can either be technical, adaptive or critical. The rational and strategies to be employed in the elimination of the challenges differ. For instance, critical challenges will require the complete change of the system whereas the adaptive challenges would require the development of novel ideas and solutions. Some organizations need to have a clean overhaul of the organizational system as the existing organizational culture is the main determiner of the type of leadership and the competitiveness of an organization in a market. References Ernst & Young, 2011, EMEIA Tax T-magazine: Tax insight for business leaders, accessed on the 14th April 2011 from, http://tmagportal.ey1.dedicated.nines.nl/wp-content/uploads/2011/01/TMagazine_03_2011_web.pdf Pasmore, W, summer 2010, the conference board review who will run your company: Aligning leadership development with long-term strategy, accessed on the 14th April 2011 from: http://www.tcbreview.com/who-will-run-your-company.php . Green, W. et al , 2006, ‘the impact of strategic human resource management on firm performance and hr professionals’ work attitude and work performance,’ International journal of human resource management, 8, 3, 263–276. Katou, A. & Budhwar, P, 2006, ‘the effect of human resource management systems on organizational performance: test of a mediating model,’ International journal of human resource management, 17, 7, 1223–1253. Paauwe, J & Boselie, P, 2005, ‘best practices . . . in spite of performance: just a matter of imitation?,’International journal of human resource management, 16, 987–1003. Ramaswamy, E & Schiphorst, F, 2000, ‘human resource management, trade unions and empowerment: two cases from india,’ International journal of human resource management, 11, 4, 664–680. Richard, O & Johnson, N, 2001, ‘strategic human resource management effectiveness and firm performance, ‘International journal of human resource management, 12, 2, 299–310. Tsai, C, 2006, ‘high performance work systems and organizational performance: an empirical study of taiwan’s semiconductor design firms,’ International journal of human resource management, 17, 9, 1512–1530. Wright, P & Boswell, W, 2002, ‘desegregating hrm: a review and synthesis of micro and macro human resource management research,’ Journal of management, 28, 3, 247–276. Wright, P, et al. 2005, ‘new models of strategic hrm in a global context,’ International journal of human resource management, 16, 875–881. Business Week, April 24, 2006, The world's most innovative companies, accessed on the 14th April 2011 from: http://www.businessweek.com/magazine/content/06_17/b3981401.htm Read More