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Organizational change involves tactics to transitioning individuals, groups, and organizations from an existing state to an anticipated future state. It is a managerial process directed at helping change participants to accept and embrace fluctuations in their business environment. Organizational change is an outline for handling the effect of new business procedures, variations in organizational arrangement or cultural variations within an enterprise. An efficient approach to organizational change is advantageous when change requires stakeholders throughout an organization to acquire new behaviors and skills in order to adapt to the new policies introduced in the sector.
RJF, Jewelry Manufacturing Company has been affected by the current dramatic fluctuations that occurred in the global prices of gold and the introduction of new guidelines from the ministry of commerce in Saudi Arabia in which Saudize the industry of jewelry sales, looking for reducing joblessness rate among Saudis. Due to this new phenomena, RJF need to make some organizational changes in order to cope with this two aspects of global prices of gold and new guidelines from the ministry of commerce in Saudi Arabia in which Saudize the industry of jewelry sales. This therefore necessitate a very significantly adjustments and some organizational modifications to take a place. These new changes that should be effected by RJF includes: Variety in production particularly using other products other than gold, for example, using silver; teaching Saudis salesmen to be set for market and increasing the market size through an extensive advertising.
The reason for and the value of the proposed change
Training of salesmen will equip them with the techniques and specific tactics and techniques used be used in completing a deal. This will not only be necessary in every transactions presentation, but creating a professional salesperson with all the necessary tools at their disposal when required.
The value of Training of salesmen in RJF will be inculcating Customer Service skills in the salespersons equipping them with the knowledge of how to treat a client in order to gain their respect and commitment to the specific salesperson. This will in turn help to build a customer base of regulars who will perceptively and deliberately come back again and again to fulfill their needs and to endorse other clients to shop in this company. This will therefore help in increasing the sale and general development of RJF.
The reason for extensive advertising is to increase the size of the market for the goods produced in RJF. Increasing the size of the market means that sales will increase despite increase in the cost of production.
The value of extensive advertising and increase the size of the market is to raise the amount of revenue that RJF get from the sale of their products.
Variety in production particularly using other products other than gold will enable the company to substitute Gold as the main raw material thus having a way of dealing with the fluctuation of Gold price and the cost of production. The value of this change is to low the cost of production which has resulted from fluctuation in global Gold prices.
The new proposed change in an organization will have influence in powers, tools and techniques for organizational in RFJ. It is through the power of organization that the proposed changes will be implemented. Tools and organizational techniques will be instrumental in implementing these changes.
Definition of terms
Power- Organizational power is the capacity of the organization arrangement to exploit all the fixed resources in favor of organization improvement such as machine, man and other assets.
Tools- Organizational tools are skills crucial in the workstation and are the key to getting forward in the corporate world.
Organizational techniques- is the process of exploring how the different tasks in an organization are done in a business, industry etc. and identifying means of doing them more efficiently.
Significance of the study
There is a current dramatic fluctuation that occurred in the global prices of gold and the introduction of new guidelines from the ministry of commerce in Saudi Arabia in which Saudize the industry of jewelry sales, looking for reducing joblessness rate among Saudis. This study is therefore very important in identifying changes that RJF need to adopt in order to cope with these new occurrences that are directly affecting their operation.
The changes that RJF should effect, including variety in production particularly using other products other than gold, for example, using silver; teaching Saudis salesmen to be set for market and increasing the market size through an extensive advertising will be of great usefulness in the company set up.
Training of salesmen in RJF will be inculcating Customer Service skills that will help to build a customer base thus increasing the number of clients who will be shopping in this company. This will therefore help in increasing the sale and general development of RJF.
Extensive advertising will help to increase the size of the market for the goods produced in RJF. Increasing the size of the market means that sales will increase despite increase in the cost of production. Extensive advertising and increase the size of the market is to raise the amount of revenue that RJF get from the sale of their products. This therefore will be of great benefit to RJF.
Diversity in production, mostly using other products other than gold will assist the company to substitute Gold as the primary raw material thus having a way of dealing with the fluctuation of Gold price and the cost of production. This in turns will help to lower the cost of production as a result of use of other products other than Gold whose price is fluctuating.
Specific business objectives
The business objectives in RJF will be as follows:
Increasing the customer base
Lowering the cost of production in RJF
Raising the amount of revenue from sales of RJF products
This goal of the changes whose objectives are outlined above will be to cope with the new occurrences that have greatly affected the day to day business of RJF. The goals are to ensure that RJF does not make loss or even close down due to new policies introduced by the government and the fluctuation of gold prices.
Ways of achieving the goals and objectives
Team building will be very crucial in realizing the set goals. Employees will be taken a good care of in order to work as a group. Working in groups will ensure that every worker contribute ideas to the development of the company.
RJF will consider individual and team motivation. For the organizational development of RJF and change is concerned, group and individual stimulus will essential in playing a key role in the direction of realizing company aims and objectives. Motivation in any organization inspires employees to work extra harder beyond their limits. This therefore is a very important aspect in the growth and development of any industry. This therefore means that RJF should adopt motivation aspect in order to steer the company ahead.
Specific changes relevant in organizational change will ensure that RJF maintain a very high number of its customers, earn large amount of revenue and have a new substitute to gold as the main product. The changes that RJF need to implement are: Employment of highly skilled salespersons; Focus on other products of production apart from gold; adjusting the prices of RJF products in order to remain competitive and changing of employment policy in line with Saudize, Saudi Arabia government policy.
The importance of the aims and objectives to the organization are to ensure that RJF remain very steady despite the new occurrences in the sector of jewelry sales. With increased the customer base, low cost of production and improved earning of revenue from sales of RJF products, RJF will continue to grow and develop effectively.
Outcomes and metrics
From the above mention changes to be adopted in RJF, the expected outcomes in the organization will include:
First, there will be an increase in the size of market for RJF products. Through an extensive marketing, many people will be made aware of the RJF products. Increase in the size of market will force RJF to employ more employees in order to deal with the increased number of customers. This will enable the company to comply with the new Saudi Arabia Government policy, Saudize.
Increasing the number of customers will lead to an increase in revenue collection. This will in turn help the company get enough money to cope increased salary bill which is as a result of increased number of employees.
Using other products other than gold will low the cost of production in RJF. Low cost of production will help the company retain a competitive price for its products. This will be important in retaining customers without adjusting the prices of RJF products.
Importance of the change in the business arena
The importance of the changes to the organization is to ensure that RJF retain its strong ground as ever before despite the new occurrences in the sector of jewelry sales. With increased the customer base through widening of market, low cost of production and improved earning of revenue from sales of RJF products, RJF will continue to grow and develop effectively. Maintaining a very sturdy ground is very important as it acts as the groundwork of achievement in the organizations that are ready to embrace change now and in future.
For the implementation of the propose changes, the following are the persons and the role they will play in the implementation of various changes:
Sales manager- The sales managers will be involved in training the sales persons. It is through training of sales person that RJF will be targeting to increasing revenue through increased sales.
Marketing Manager- marketing manager will lead employees in marketing department in advertisement activities. This will be aiming at widening the size of market for RJF products.
Procurement manager- He will be instrumental in implementing the employment policy in order to be in line with the Saudi Arabia Government policy, Saudize.
Production manager- he will be in charge of ensuring that there are other products other than gold in order to lower the cost of production by substituting other product for gold whose price is fluctuating
The scope of change
The changes will be effective throughout the organization. Changes will take place harmoniously throughout the RJF. The entire departments in RJF will experience a certain level of change in order to cope with the current dramatic fluctuations in the global prices of gold and the new guidelines from the ministry of commerce in Saudi Arabia in which Saudize the industry of jewelry sales, looking for reducing joblessness rate among Saudis.
Change implementation duration
The duration of change implementation will be approximately six months. This will give the company relatively adequate time to full make changes and adapt to them. The employment policy will have been changed, training of sales person and advertisement to increase a wide market will have been accomplished.
Interim impacts of the change process
The impact of changes is expected to be seen in two phases:
In this phase, the company will have implemented the change of training the sales persons. The impact of this will be increase in sales and thus the amount of revenue will have started to increase. Also the employment policy will have been implemented, high skill employees will be employed and this will impact on an increased level of production and efficiency in production. Efficiency in production will lead to high quality products being produce. This will attract more customers and thus widen the market which will in turn raise the level of revenue to the company.
In the second phase, the extensive advertisement of the companyâ€™s product will have been implemented. The impact will have been increase in the size of the market which will in turn lead to increase in the level of revenue. Also, a substitute of gold as the main product to be used in making jewelry will have been taken into effect. This will lower the cost of doing business and lead to increased profit.
The methodology that will be used in this assignment will be interview through a survey. This survey will be conducted among the employees to seek their views on the proposed changes. Their views will be analyzed and the decision be made from those views.
Necessary Steps in Implementing Change in RJF
The following are the steps to be followed in implementing the proposed changes in RJF
RJF employees on board with managerial transformation will make the internal change smoother and aid clients and vendors change too. RJF will adopt a technique that will enable employees to individually get involved in change and inspire them to look at the corporate as though they were organizing it.
Map it out
RJF will avoid making radical changes without notifying employees of the nature of the alterations thus removing confusion. Employees will accurately be told what is going on and generate sympathetic from the beginning.
Go in Stages
Change will be executed in stages. There will be creation of the sense of earnestness that will gather backing for change. Solution will then be rolled out on an experimental basis.
Get Everyone Involved
The whole management and decision-making teams will get involved and creation of enthusiasm among the staff in order for change to take hold.
The above mentioned changes should be adopted by RJF. The reason behind this is that with increased the customer base, low cost of production and improved earning of revenue from sales of RJF products, RJF will continue to grow and develop effectively. This therefore means that the proposed changes are important in improving and developing RJF and thus they should be adopted as soon as possible.