Organizational development is the process of changing the policies, procedures, practices of the organization in to a newer kind according to the objectives to make organization stronger, capable in handling and managing the objectives of the organizations effectively. Organizational development process is useful to change and mould the organization according to the changes in the industry and the market. Organization development gives opportunity to handle and face the new challenges and risks that comes from the external business world suddenly. In the present business world, companies which start developing its core business operations, practices, policies they can only survive and can perform in the industry with high energy and performance.
Change is a continuous process. Everything in and around the business world at certain point of time tend to change. Changes cannot be stopped permanently in micro economic environment. Organizations which change its organizational practices, policies, procedures according to the changes in the markets then only that type of companies can survive in this highly competitive business world. Change is inevitable. Developments in the domestic and international market business rules and procedures changed the way of doing business in many markets. Today's economic systems is not like ever before. During the early days of industrialization business operations were limited only to only few markets and companies used to operate in its home country as well few other countries. Now in the current market several multinational companies are ruling the world trade. After the third world war, inception of WTO helped countries to promote international trade between the member countries of WTO. WTO helped to make several bilateral and unilateral agreements between the member countries to promote regional and international trade. Several big companies in the world at that time started entering new big markets and into the market with high growth potential. World business spread its wings across the world. Companies stated doing business operations around the world. Based on the size of the market, based on the region of operations companies started implementing and forming new local strategies to capture the market share and to compete with the local companies. With huge financial support, huge experience and with new kind of products and marketing strategies Several international companies ruined and dominated the domestic companies in many countries. Because of the increase in the world trade, increase in the business volume, demand for the products increased, and so companies started hiring new fresh and local talented employees to promote sales in various market. Because of the stiff competition in the market several domestic and foreign companies started hiring employees, as a results job opportunities increased. This trend increased demand for new kind of products to protect the market share and to protect the customers.
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Because of these types of reasons companies started changing in many areas. Changes in the management subject area facilitated to change the management of organizations. Competition in the market increased quality in product manufacturing, good customer service, business strategies according to the other companies' plans and strategies. Now markets are in control of customers, companies which provide good service or products according to the tastes and requirements can only survive in the industry. Companies which failed to change the organization according to the changes in the economy failed to improve business. Several companies around the world closed the business houses only because of stiff competitions and failed to change as per the growth and changes in the economy.
In the age of rapid speed, quicker and fast development in every business sector companies should update itself according to the changes in the business markets. Both international and domestic business operations are changing very fastly than ever before. Because of various business reasons most of the companies are started changing the organization in several ways by introducing new changes in the company as per the market. If a company is successful to introduce new change as per the changes in the for a target industry then it can be useful to increase profits and sales to the company and also can be useful to get ready to utilize the future business opportunities and threats. A successful new change process gives several chances to a company to increase market share and sales size in single or in various other markets.
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Marked to Standard
For the development of the Novartis business operations a new kind of changes has to implement. The new change can be used for the growth and development of the company. The main target of the change should be Novartis objectives to deliver innovative healthcare products to the customers for lives better and healthy people in the world.
A company should always concern not only about the business operations in past or in present. It should consider the factors that may impact the business in future. Developing and implementing new change not possible every time when a sales figure of a company showing down trend or performance of the company is not well or falling continuously.
Companies which are successful to forecast the opportunities that are going to come in future, will become successful and can run the business operations very effectively by facing the threats from the external business forces. So like this due to these kinds of reasons a new change is implemented for the development of the organization.
About organizational theories
Explain Classical Scientific School of thought by Fredric Taylor.
This theory is helpful manage an organization using more scientific principles and methods. Taylor principles are useful to divide the work structure of the employees of the organization, delegating authority, responsibilities, providing clear reporting and commanding line between the boss and the employee and using other principles Taylor developed one useful principle for the development of business management and administration in an organization. Development in management studies, growth in industries, and importance of industrial management and relations, worker disputes are the reasons for this theory development.
Explain Scientific School of Human Relationship
Employees are the most important assets of an organization. Employees contribute a major change in the growth and development of the organization. This approach helped to recognize employees in the companies as the useful assets to achieve the desired goals and objectives. This approach further helped to find the best process to identify the factors that impacts the employees' performance.
Growth in giving importance to employees and identifying the drop in employees' performance in work are the reasons for the development of this theory.
Explain Systems Approach
System approach identifies three major processes in an organization, namely. Input-Process-Output.
This theory is helpful to run entire organization practices in systematic activities. If all existing processes are managed, monitored, performed effectively then any type of production oriented company can be managed effectively. This approach is helpful to give better results by identifying the loopholes and problems in existing systems. This approach depends on external environment to scan and identify the useful opportunities and changes required for this approach. Special approach for manufacturing companies, slow production process, and production concept supportive approach requirement are the drives for this theory development.
Explain Contingency approach
This approach is developed to increase the efficiency in taking right decision in managing and resolving business problems in all type of organizations. This approach helps to hire and select managers with huge experience in management. This approach states, for quick and good decision making and effective management practices, this theory is useful.
Poor managerial skills, slow decision making process in few organizations are the drivers of this theory development.
There are several type of organizations structure available in the management studies. Some of them are highly popular and few are not even having acceptance from the companies in the present world. Bureaucratic organizations belong to the second kind of organizations structure. Because of weak points in its structure I didn't have wide acceptance from the business houses. This type of model is useful to run the business activities to run like administrative activities. In this model of companies are managed using the formal set of rules which are defined by the top executives of the organization. This organizations structure focused on administration functions of business and neglected the management functions.
In this type of firms' responsibilities of employees are defined before creating a job in the firm. Bureaucracy is suitable for the organizations with stable environments and routine activities which can perform with repeated tasks and responsibilities like government organizations. Bureaucratic structures will be defines clearly proper authority in performing the task and control in executing the task. In this type organizations all the functions are carried out a per the legal environment policies and practices.
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Rules and procedures: If all the rules and procedures are clearly defined for each job in the organization then employees can able to perform the activities with utmost care and control. Chances of committing mistakes and deviations in performing the work can be minimized.
Specialized Employees: In this type of organizations only specialized person with abilities and capacity to perform the tasks and duties can be only taken as employees. So quality in doing duties can be increased, training can be avoided.
Organization Structure: Structure of the organization is well defines, so communication can flow any side with minimum barriers. Understanding the manager and team members can be so easy. So rate of unit of direction and unit of command can be increased.
Legal policies: In this type of organization all the job activities are created as per the legal policies. Security for the job is high; employees can ask and get statutory benefits. Since the job security is high employees can feel more satisfaction.
Duties and responsibilities: Since organization structure is defined clearly so all the duties and responsibilities of the employees can be performed with the division of labor principle.
Slow decision making process may not be useful to act fastly and quickly in critical business cases.
Red tapesim will increase in recruitment and selection process.
This structure reduces the employees participation in decision making
This type of organization cannot be useful in the present generation.
Working according to the set of rules is not possible for the employees in the current business world.
This structure eliminates the expressing the employees opinions in business decision making.
This type of organization may increase the employee conflicts.
Difficult to provide good customer service and products according to the customer requirements.
Organization Novartis UK
Novartis UK is the UK affiliate of Swiss based Novartis AG - one of the largest and most widely respected pharmaceutical companies in the world. This pioneering and innovative company came about through the merger, in 1996, of two key Swiss pharmaceutical organizations, Ciba Geigy and Sandoz. Novartis has been proving as the best Pharma Company in many markets across the world. With new kind of drugs and medicines Novartis is proving as the best performer in the industry. Headquarters are located in Basel; Novartis employs nearly 100,000 people worldwide and has a presence in over 140 countries
Organizations can be developed in many ways. Based on the changes that want to inject in the organization, process of development is selected. Organizational development is a continuous process. Model of development is selected based on the several other factors. Based on the resources allocated, time allotted model for implementing the organizational change is selected. Organizations can be developed in many ways. These are the sample type of organization development processes that Novartis can adopt to develop the organization according to the requirements.
Ways of Organizational Development
Employees of the organization are the key resources of the organization. Employees' performance impacts the business organizations performance and productivity. Employees should get trained and developed as per the changes in the market conditions. Employees generally trained on various skills, technologies to make them ready according to the new business change or project or business process. Employees are the one of the important stakeholder of the organization. Employees contribute his role and responsible for the development of the organization. If employee fails then whole organizations fails to achieve the business organization. So employees should be give higher importance in organization development. If the development process is against the interest of the employees they are first stakeholders who resist or act against the organization development process.
Developing business process and management practices:
The way of doing business practices also impact the business from external threats. Business process is also need to develop according to the changes in the external market. If all the processes that are using in the organization for running the business as per the changes in the market. Developing business process increases the productivity, decrease costs; decreases time to finish the process, increase the efficiency, helps to complete the accepted work at a faster rate. If management practices are updated as per the changing market conditions then it could help to take aggressive strategies to expand business operations and opportunities.
To be successful in the market, to take quicker decisions, to prepare the reports for better business information analysis, to improve efficiency in performing the duties of the employees, to reduce operating costs a new technology development and upgradation gives better results. This form of developing gives best results, already it has been proved several times.
Justify which organizational development is suitable for chosen organization with explanation:
For providing better healthcare products and services changes in the existing productions and new products lunch are necessary for increasing the customers base and development of the company.
What are the changes need to be bringing in the organization?
Change in the existing production process to produce cheap medicines.
Changes in using production technology
Reducing manual production facilities
Increasing production quality
Making new kind of medicines
Expanding market share.
What are the reasons to bring those changes?
To make the company available to everyone in the world, to bring quality of product production for the growth and development of the company are the reasons for the change.
Model for organizational change
Change can be implemented in many types. Based on the objectives of the change process, management recommend for selecting a model to implement the changes in a short time with little effort and time. Change cannot be brought in the company as and when required. Every company make necessary structural and non structural changes to make the company more competitive in the industry as well the market in which it is doing business. Changes can be done in many ways. Type of implementation type will be based on the complexity of the change implementation.
Based on the market analysis and internal organization assessment identify the right change for the company. Change can be implemented for the whole company or part of the company or in a particular region or in the particular business entity in a big business group or in a business organization operating in a market.
Identify the type of change that the management would like to implement in the company, analyze the change type, factors that implement the change process. Based on the complexity management appoints the team of member to handle and manage the change process implementation in the organization. Management of the organization should allocate the resources required like funds, human resources and technical resources for the growth and benefit of the organization. If all the resources are allocated and objectives of the implementation are fixed then the next important task is to appoint the team of member to identify the stakeholders and other that may resist the change process.
Managing the change is the very important activity in the change implementation process. People may resist the change process by not accepting the process in various ways. Managers should minimize the resistance by using the tools and method in the change management process. Resistance can be minimized by explaining the importance of change to the employees and shareholders. Generally people resist change to protect the personal interests. If the new change process decrease the importance of the employees or share holders, if they hinder the growth and development of the organization then they may oppose the change process. So based on the reasons for opposing the change managers should resolve the problems through face to face meeting or awareness programs and through training programs to them. If stakeholders are ready to provide support to the change then organization can get the desired results with smooth implementation of change. With the cooperation and coordination of the stakeholders change process can be implemented successfully. If resistance is minimized then the next important task is to implement the change using the change implementation tools and techniques. During any stage of the change implementation process organization can seek help from the external third part or professionally owned organizations or institutions to implement the change in the organization. Because they have good knowledge and experience in implementing the change in the organization successfully, with the professional knowledge they give better advices to restrict and minimize the resistance from the stakeholders. If implementers are successful in bringing the stakeholders get involved in the implementation process in the objectives of the implementation can be achieved with little effort.
During every step of change implementation team of change implementers should monitor and manage the changes to minimize the negative results. During the whole process entire activities must be designed and implemented to attain the goals and objectives of the organization as well as the objectives of the change process.
2. A. and 2.B
Define Stakeholder Analysis
For running the business in this world business organization require support from several firms, agencies, individuals, directly or indirectly. With the help these type of organizations and individuals organizations perform their business organizations.
Key stakeholders of the company:
Employees of the organization
Customers in all markets
All type Shareholders- equity and non equity
Suppliers of the company
Identify appropriate Stakeholders
Clinical and product research organizations, customers, government regulatory agencies, shareholders are the appropriate stakeholders of the proposed changes.
Identify Influential stakeholders
Everyone listed in the stakeholders list are the influencing stakeholders of the company.
To develop change in the organization, management needs support from various systems in the organization. For the sake of effective management most of the companies divide the organizations structure in functional divisions. Functional divisions help the organizations to perform the business activities with more specialization with effective decisions.
This is the major department and functional area in the organization. This is the only department interacts with the customer directly. Based on the intensions, needs and requirements organization should produce goods and services and market them to the customers directly. Marketing system should frame strategies from the department level to the ground level to face the competition from the opposite companies. As per the changes in the marketing strategies of the rival companies, sales force team should change the strategies to attract the customers and sell the products. Sometimes a small change in framing the strategy and planning the marketing strategy may fail to generate business to the company. Major changes cannot require for this department. Companies which are having good marketing network around the market can get good benefits over the other companies. Using the organizational development process marketing department has to build a strong sales force to attract the customers and get more business or the companies by using the promotional tools and techniques.
In this department major changes are required to take solid financial decisions. After the careful business environment analysis, finance department has to plan the financial are sources from various sources according to the changes in the business environment. Finance department has to check the various business opportunities and chances of getting revenue from various markets in various markets using the tools and techniques. Finance department has to scan the internal organization to cut the costs of the company. It should monitor and control all the business activities to control and costs. Based on the investment and return all the project decisions should be implemented in a right time. Finance department has to care4fully watch the trends and happening in the local and international financial markets to take a right decision.
Human resource system
Effective employee management gives better results. Employees are the key assets of the organization. If the HR department is actively helps the employees of the organization to develop in acquiring more skills for performing the employees job activities in more easy way with high efficiency then that type of changes helps the organization to achieve higher and improved performance and productivity from the employees. This helps the organizations to prepare a health organization climate and culture. Employees must be developed to face the external threats and utilize the market opportunities.
Involving stakeholders in change process
For performing the organizational change process as per the prescribed format all the systems, key stakeholders related to that system must be given higher importance to bring them in the process of development and change. Stakeholders are the real the persona or organizations who directly or indirectly can influence the business activities. If the organizational development process is against to the interests of the stakeholders then they can oppose to cooperate and support the organizational development process. So, major task for any manager in this type of cases is to bring them and make them involved in the process of change for the growth and development of the company.
Resistance majorly comes from the employees in most of the cases; Managers of the organizational development process must explain the objectives of the organizational development process. If employees know about the benefits they and the organization will get if organization development or changes process is successful then they may support the process. In most of the cases, lack of information, ambiguity, poor communication and poor managerial practices and also past bad experiences stop employees to support the major change process in any organization. With effective measures and management process can be completed successfully. Share holders are also the second important stakeholders that impact and influence the organizational changes. If the managers of the changes provide the information about the changes and explain the benefits tot hems and the benefits that organization get in future then shareholders will support the change process.
If all the stakeholders are satisfy with the benefits they get and benefits organization gets after the change process is successfully implemented then all stakeholders will support the process. Managers first focus on the people or the stakeholders that may oppose very highly to get the support with cooperation and coordination in finishing the change process successfully.
What are the set of activities for stakeholders?
This chosen model helps to perform the implementation process in a procedural format. Entire implementation is done in a step process. All the activities related can be planned before they are performed. Once the activities are performed they can be managed and monitored to control the negative results to manage the whole process of change. This chosen model is useful to complete the whole process in a sequential order, based on the time allotted by the management, based on the importance and based on the change type and based on the other resources allocations entire change implementation process can be managed, monitored, controlled, effectively. At the same context, this model is useful to complete the whole process by fixing the right objectives and goals in each phase of process. This process helps to minimize the resistance using the appropriate tools.
Action Plan for the implementation
Identify the change to bring in the organization
Appoint the team of experts to manage whole change process
Fix the objectives for the change
Plan the resources required
Educate the stakeholders to avoid resistance
Plan the activities
Implement the change in a series of activities
Monitor and control the change
Assess the impact of change on the business
Resources used to implement the change?
Financial resources: These resources are essential to fund for procuring, employees salary and incentive payments, payments to suppliers etc in various stages of change process.
Human Resources: Clinical and research department employees and every major employee of the organization at a higher designation need to work for the success of the change process to achieve the expected results.
Marketing resources: If Novartis expand its marketing network in various markets, then few changes suggested can be implemented effectively.
Machines: for producing quality, safe medicine adequate machines are required in good working conditions and maximum production capacity.
Objectives of the implementation
Producing good quality products
Increasing producing productivity
Higher market share acquisition
New product launch
Good managerial policies and practices
Enhancing sales and income to the company.
How the people are going to implement the changes?
Implementation team has to implement all the major activities of the change process for better results for the entire company along with the support of employees and stakeholders support and help.
How much time it is going to take to implement the changes?
The entire proposed changes can be implemented in not less than one year.
Who is going to monitor and control the implementation?
Implementation team has to monitor and control all the major activities of the change process for better results.
How they are going to monitor and control the implementation?
Using marketing, financial, production, research and development tools and reports implementation team can monitor and control the change process
A better business process operations management and information flow in all sides
Increase in employee performance and productivity
Increase in the chance of cutting the costs of the company
Helps to improve the core competencies of the company.
Helps to identify the loophole in the present system
Helps to improve quality in performing the activities.
Helps to develop the company for the growth and development.
In the Pharmaceutical industry growth chances are very high in many markets. Based on various studies it is observed that there is a huge gap between demand and supply. If a Pharma company changes its production process, research process with latest technology and business practices using the organization changes process then based on the results of the process, a company like Novartis can attain the goals and objectives of the company in a better way.