The paper "Organizational Development and Change, Ethical Business Leadership" is an outstanding example of management coursework. The establishment of Society A, a building society in New South Wales, took place in 1959. Its management team consists of the managing director and six general managers; hence, it is likely that the organization has a slightly flat structure. It was not until the 1980s when the Federal Government deregulated the banking industries to allow building societies to become banks and limit the new entrance of foreign banks. By 1988, Society A had extended its operation to include credit and commercial facilities because it had become a bank, Bank A.
Originally, the mission of the organization was to provide house and small personal loans out of members’ deposit. Thus, some important characteristics of Society A development are the rise in the number of staffs and products’ diversification and acquisition. Considering, for example, in 1974 the number was 200 and exceeded 1200 by 1990. Prior to becoming a bank, the social value was $ 1 billion that doubled by 1990. It is worth mentioning that the society branches and the new products and services raised the overhead costs more than that of major competitors; thus, the firm requested management consultants to review its operations and recommend areas of reducing the operating expenses.
As an assumed change agent, I base this project on the case “ Integrative Case Study on Managerial Politics of Organizational Change. ” Section 2 The Development/ Change Plan and Process Identification or Diagnosis of the Problem. In 1986, the enterprise management team sought assistance from management consultants, B Agencies, because its operating expenses were above those of the competing firms in the same industry.
The experts reported that the firm could tap more than $ 1 million savings from head offices and branch networks. Unluckily, these consultants failed to specify those areas although they promised to work closely with the society in the identification. However, Society A did not accept the offer, and instead, it decided to adopt the Total Quality Management (TQM) technique in an effort of minimizing its overhead costs. It is worth mentioning that the process of adopting the TQM technique did not involve the entire firm’ s departments; thus, it was highly likely to have hazardous impacts on the individual departments.
Here, the senior managers failed to share the firm’ s vision with the individuals who are going to implement the policies as well as to whom the policies have more impacts. Specifically, the firm approached the issue of raising the savings by adopting the bottom-up strategy that proved to have little positive impacts because many departments resisted the change, did not really feel the impact of the new technique, the managers had not started the technique themselves and no one had sought their consent or contribution.
Worsening the situation, the managers pointed out that their primary responsibility was to support and not to implement the system; thus, lack of follow-ups and consistency. Neither did the seniors endorse compulsory involvement in quality management team nor appreciate those involved in the system; thus, managers could not influence the actions of their workers. Another problem managers caused is a lack of commitment that led to the loss of the strategic direction. For example, no one communicated the senior managers’ TQM message because everyone was busy in their departmental activities.
In fact, the TQM method proved to be beneficial in a number of areas such as reducing the number of workers and overtime working hours that leads to greater serving.
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