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Using either the systems contingency model or the corporate life cycle model, discuss the need for improvement for the business in the situation.
A well-known organizational technique that has been commonly used to foster transition is the contingency management model (Fiedler 59). The whole structure, according to the model, is focused on the need to ensure that particular internal components function in harmony. Internal components are critical in assisting the enterprise in converting inputs into outputs. The central principle of this model is that an organization should include internal elements in planning and implementing the desired transition (Fiedler 60). To introduce change, the contingency model asserts that the company in the above scenario should focus on four main parts which include the work, people, systems and the structures. Each of the element is described and applied to the case identified above in relation to change.
Work: Before introducing and managing change, the management should ensure that the work being performed by employees is well defined and structured. The requirements of each individual job ought to be assessed in relation to workflow. In introducing change, the management should merger the current workflow, existing workforce, the current culture and the corporate structures (Fiedler 70). There is a need for change since the company is the current structures are not supporting information and mostly they are long and bureaucratic in ensuring and thus causing conflict between role and job requirements. Since the company has grown but it has not improved its manpower, restructured the current job activities as well as training of its employees to meet the current demand and expertise in the production of quality products (Fiedler 71).
People: Change management is all about the competitiveness of employees and how they are technically fit to embrace it. Currently, employees at the company are lowly recognized and have no place to expand and enhance their abilities. In such situations, change introduction would be difficult (Fiedler 73). Employee expectation has to be revived by allowing them to share their skills and creative ideas. Currently, the existing top-down structures do not permit employees to develop their skills and abilities or even share and enhance their creative ideas by sharing with others. Consequently, the company needs to embrace change to solve the current situation. Workers have to be trained, motivated, recognized and given ownership of their innovative ideas (Fiedler 80).
Structure: There is a need for change in the given scenario in regard to the current structures. The current relationship at the company is not well defined for quality achievement. Presently, the company has top-down structures which are long in nature. Employees have no say or neither can they participate in the decision making process concerning key issues facing the company (Fiedler 80). The structures are bureaucratic in nature making communication difficult. Consequently, there is a need to change the entire organizational structures and embrace open door policy, horizontal and matrix structure which are key in promoting cohesiveness among employees and the management. There is a need for a new structure which should focus on developing and enhancing the relationship between the management and the employees. Additionally, the new change ought to come up with structures which can ensure employees have a maximum say in the decision making (Fiedler 80).
Culture: The current organization culture in thence provided in in dire straits of change. Employees have low relations with the employer. The company has low employee support system and approaches which demotivate them. In most cases, the decisions are only formulated by top management while ignoring staff interests. There is a need for culture change in order to cope with the increased performance as well as training of employees which becomes one of the core objectives of any culture (Fiedler 100).
B. Describe the differences between a learning organization and a traditional organization.
In traditional organizations, the overall strategy and vision are provided by the management or the leader while in learning organization the overall goals and vision are determined by the group due to the existence of a shared vision (Stata and Almond 31). In traditional organization learning the process of formulating and implementing an idea is contingent upon the top management which is in sole charge of defining and implementing the desired change whereas in learning organization ideas are formulated and implemented at all stages or levels of the organization (Stata and Almond 40). Additionally, in a traditional organization, each individual is concerned about his or her own actions with no link to others but in learning organization workers are accountable for their actions but adhere to the link between their performance of other employees (Stata and Almond 35).
1.Identify which stage of Woolner_x0092_s 5-stage model the company is currently in.
Based on the current situation and activity of the scenario presented in our case study, the frim is in the developing stage of the Woolner_x0092_s model.
a. Explain why the company is currently in the identified stage of Woolner_x0092_s 5-stage model.
The developing stage is characterized with aggressive development and improvement in the organization processes. At this stage the entity has to ensure that it develops its employees through training, mentorship and coaching as one way to cope with the new change. During this phase, the company is registering substantial growth both in sales and in size as it starts to stabilize from the formation stage. It is at this stage where company restructuring and redesign are insisted to ensure that it meet the increased market demand. Similar to the case presented, it is evident that the firm has just graduated from formation stage and it is experience high growth rates such as increased sales as it is only 10 years in the market. The firm is in developing stage also based on the fact that it is at initial stage of going international which has seen the labor force increase significantly. Evidentially, steady growth which need to be harnessed for future growth are the key features of developing stage and which essentially defines the firm position.
2. Explain how the company from the scenario would use Senge_x0092_s 5 disciplines to become a learning organization.
Currently, the company is recording high growth in profits as well as its manpower. Additionally, for the first time it has begun making appearance in the international business which it is successful and thus the need to prepare through incremental change for future growth both locally and internationally
C. Identify the type of change and the rate of change to take the company from a traditional organization to a learning organization using Balogun and Hope-Hailey_x0092_s model.
Based on the information given concerning the scenario, the company is in an evolution stage and exhibit transformational rate of change. In other words, the business is exhibiting an incremental change that is found in the first quadrant of the model._x000b_1. Explain why the type of change and rate of change would be appropriate for the company in the scenario using Balogun and Hope-Hailey_x0092_s model.
Transformational/incremental change is key for the business as its still at the growth stage where a lot of restructuring is needed to presser the company for future avenues.
D. Discuss how four steps of the action research model could be applied to the change process (traditional organization to learning organization) for the company in the scenario.
The Action Research model has got four steps. The first step involves planning: the company has to identify and plan for the desired change. For instance, plan for the training and development change as well as innovation. Second step entails acting on the problem identified through the planning step. Necessary steps are to be taken to ensure that the desired change is well facilitated through the needed support and resources. The third step is observing which entail the evaluation and monitoring of the change. Basically, it entails evaluating the effectiveness of change in realizing the desired outcome. The last step is reflection upon which the company is suppose to reflect the outcome of the change. The suitability and the achievement of the change is reviewed and the weakness addressed.
E. Recommend two innovation strategies that management could use to transition the company in the scenario from a traditional organization to a learning organization.
Novelty forms the cornerstone of any firm which aspires to excel in the modern world which is dynamic and presumably more competitive. In order for the company in our case to flourish in the market, there are some innovative strategies that need to be perused and implemented as the only sure way of promoting its future suitability in the market. The discussed below are some of the strategies which can be used by the firm to propel its innovativeness and transition into a learning organization.
a) Top management support: One of the best strategy used to promote innovation by different enterprises and which can be applied by the firm is top management support. The management has the responsibility of creating and fostering a conducive environment that can promote creativity within a given workplace. To promote innovation, management bureaucracies and all barriers that hinder management should be removed. Subsequently, the commitment from top management in creating and promoting is paramount and the essential step in ensuring that employees are motivated to come up with new ideas. As a result, the leaders should be ready to offer their assumptions concerning innovation as well as their role in creating or changing the firm_x0092_s culture. The management needs to essentially appreciate the benefits and the significance of incremental or major innovations, be able to comprehend psychology of innovation besides taking a lead position in the promotion of innovative culture.
b) Open communication and ownership opportunity: Innovation and the shift traditional structure to learning organization are directly linked to the innovation level that a firm has developed. Free and all-inclusive communication platforms within an organization have the ability to ensure that trust exists between employees and the management. The firm management should be ready to develop and implement communication structures which will ensure that employees engage and interact freely among themselves. Open communication has the capability of fostering employee cohesive which is a key factor of an idea generation that automatically leads to creativity. Free communication will ensure employees to share creative and innovative ideas with their colleagues and come up with new ways of solving the current problems facing the company such as product enhancement and service delivery which has the ability to ensure quality products. Ownership is also key to promoting innovation and creativity in the company.
1. Explain how one recommended innovation strategy would be used by management in the company's change process.
The section will apply top management strategy in promoting change through innovation. To ensure that innovation is vibrant in the firm, the top management should ensure that employees are supported through the entire process of idea generation to its implementation. For instance, fringe benefits and financial incentives have to be used to woo innovative employees to contribute to their quality performance through creativity. Employee recognition has to be used to appreciate all workers who are exhibiting high performance in promoting firm_x0092_s creativity levels. The management should also ensure that staffs are encouraged to come up with innovative ideas and also help them to market their ideas. Financial support, incubation costs, and commercialization costs should be subsidized by the company management. Lastly, brainstorming between employees and leaders can generate a high-level organizational atmosphere that is ready to foster change.
F. Discuss how four steps of Kotter_x0092_s 8-step model could be applied to the change process for the company in the scenario.
The four steps which are advocated by Kotter_x0092_s 8-step model are discussed below briefly.
a) develop sense of urgency: According to model, the primary step in ensuring that change starts in the organization is through creating and recognizing the need or sense of urgency for the change desired (Appelbaum et al 764). Consequently, in reference to our scenario, the management should come up with well-defined need and urgency for the desired change which in creativity and innovation in company products and the necessity of employee training to imparts new skills and knowledge which are up do ate with the current market situations. For instance, it can be done through the identification of potential threats which are likely to occur in future in case no change is introduced (Appelbaum et al 773). The management can identify basic opportunities which can be used to promote change through different intervention like promoting creativity. Lastly, at this stage the management should endeavor to bring aboard all the stakeholders concerned and have them the effects of the desired change; the key stakeholders to be consulted include the customers and the employees who are directly influenced with creativity and innovation outcomes (Appelbaum et al 780).
b) Formation of powerful guiding coalitions: For change to be realized, there is a need to form teams which will oversee it through the implementation stage. The company should identify key and effective team leaders who are supposed to oversee change introducing as well as its implementation. Key stakeholders are also to be involved in assessing the need to promote innovation and employee training to foster a swift change transition (Todnem By 369). Working teams are to be formed to help in defining the need for change as well as initiating tactful strategies to implement it. The groups, coalitions and teams have to be well vetted to ensure that weak points are identified and timely addressed. The essential aspect at this stage is to ensure that influential people are used to help persuade the followers concerning the importance of change (Todnem By 370).
c) Development of vision and strategy: For change to remain a central part of a given team with the company, there is need to develop core objectives consisting of visions and strategies. For instance, the company leadership should determine cardinal vision as well as strategies which can be used to realize the desired change and this case innovation and attainment of a learning organization (Tsang 73). All change agents must aim a position to describe vision from one stage of change to another and match to the overall organizational goals. The set objectives should be easy to understand and follow (Todnem By 380).
d) Communicating vision and objectives: The most technical stage that the management has to ensure that it has been well done is communicating the vision to the team and every member of the company. At this phase, the leadership should develop strategic communication channels through which they will reach employees and other stakeholders concerning the vision and objective of the change being introduced which in this case involve employee training which will lead to the achievement of a learning organization and innovation enhancement (Tsang 74). Adequate organizational structures are to be initiated and implemented to facilitate the alignment of the visions and objectives to the corporate culture (Paton and McCalman 2008). Ensure that employees are frequently brief about the vision through regular meetings and informal groups. The vision should be communicated through different media and channels by placing them in strategic places such as boardroom and conference hall for easy visibility (Paton and McCalman 2008). Additionally, the leaders should ensure that they continuously evaluate potential barriers which are likely to impede vision communication to the target groups. All issues raised by different groups and their concerns should be well handled so that honest and trustworthy is achieved during the whole process (Paton and McCalman 2008).
G. Explain how each of the five pillars of sustainable change could be applied to sustain the learning organization environment of the company in the scenario.
a) Leadership: Axiomatically, any form of change within any given organization must have the support and involvement of its leaders. Effective change occasionally commences with the leaders who are in the position to effectively lucid the desired vision and endure that all employees are inspired and motivated by its achievement (Tsang 75). In reference to our scenario above, the leaders of the company must be steady in initiating change presumably the need to promote innovation and foster training and development which will lead to a learning organization. Consequently, they should come up with the vision and fully ensure that it well understood by every member of the firm. Lastly, the leadership should motivate all staffs and interested stakeholders in working towards and achieving the defined vision which is designed to introduce and implement a change (Tsang 77).
b) Strategy: Strategy formulation is vital in attaining change. The strategy will define different tactics that will be used to achieve and realized the identified vision. The effectiveness of a strategy will be key in defining the extent to which the vision will be achieved and consequently the realization of the change. In our case, the management should ensure that more and tactful strategies are implemented. Different schemes are to be used by the leadership to ensure that the contemplated change is defined, perused achieved and eventually _x0093_sticks_x0094_ into the organization_x0092_s culture (Paton and McCalman 2008).
c) Culture: Organization culture can be defined as the accumulation of work environments, individuals, and beliefs which from the organization. The nature of vision and strategy created to introduce and implement change has wide effects on the culture of an organization (Tsang 73). Definitely, its suitability has a lasting significance in determining the success of the change. In order to fully introduce change, the management should ensure that the vision and the strategy defined aligns with the culture of the business. The agents of change at the company should warrantee the current culture that the risks associated with change are to be will address and any other negative effects will be attended to timely (Todnem By 369).
d) Structure: Organization structures play an important role in determining the effectiveness and the realization of change within different companies. Based on the scenario presented in our case, the management should have a keen analysis of its organizational structures by redesigning the current structures. The vision for change and the accompanying strategies should be developed to compliment each other. Firm structures which are likely to limit interaction and communication within the business should be removed. The actual applicability of this pillar would be the removal of top-down structures which currently inhibit free interaction and only encourages bureaucracy within the entity. Matrix and horizontal structures should be used to facilitate the flow of information between workers (Tsang 73).
e) Systems: The concept refers to the manner in which different parts of the organization are interdependently working together to achieve a common goal. The effectiveness of an entity is gauged by the degree to which different systems and individual within the firm are allowed to work together. In reference to our scenario, the management should ensure that all systems are well working for a common goal. Employees should be allowed to interact easily, develop and promote their innovation across different levels of the firm as well as sharing ideas with other colleagues (Tsang 80).
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