Organizational Behavior and the Change Management

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This paper is based on organizational behavior and change management. This paper shall be focusing on the organization's background; it will conduct an analysis of the mission, vision and value statement of the company. The paper shall be conducting cultural analysis, i.e. how a company goes through a change in its culture. The paper shall be focusing on the organizational structure and finally it will conduct a change plan for the company. The company that has been chosen for this paper is ABC Company.

Research Methodology

Collection, analysis and reporting of data and findings can be defined as marketing research but in a systematic and organized design, which can help the company in facing a specific situation or a problem. Effective marketing research is based on five steps define the problem and objectives of the research, developing the plan for the research, collecting information for the research, analyzing the information which is collected and finally present the findings so that it helps the marketers and mangers make the right decision.

Research Method

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The most common method of obtaining information about behaviors, attitudes and other characteristics is to ask from people directly. Therefore the research method that is going to applied here is in-depth interviews and questionnaires.

Questionnaires: questionnaires will also be used because they will help the individuals to answer those questions which they might be not able to answer when asked directly.

In - Depth interviews: are frequently used the researchers when they want detailed information regarding an individual's behavior attitude or needs and wants, or when the information they receive from the questionnaires is impractical, more costly and inaccurate. Therefore applying both of these methods will make sure that information that the researchers receive is accurate and not false plus it will help them to make the right and better decision.

Sampling Methods & Plans

The sampling method is one of the ways the sample units can be selected for qualitative research, there are five kinds of sampling methods; probability versus non-probability, single unit versus cluster of units, un-stratified versus stratified, equal unit probability versus unequal unit probability and single stage versus multistage.

The method that the researchers are going to be using for the research is probability versus non-probability. It must be remembered that the probability sample which are selected are selected on chance where as in non-probability sample (included convenience, judgment, quota, and purposive sample), no sample is selected on chance. From these samples the researchers are going to implement the following sampling methods for our researches:-

Cluster Sample: the sampling method used in this research is probability sampling method, in this the researcher divides the population into mutually exclusive groups (like managers and top executives) and then the researcher draws a sample of the groups to interview and fill out the questionnaires.

Quota Samples: the quota sampling is going to be based on managers and top executives, communication channels and the behavior.

Sample Unit

The sample unit is based on the unit which contains the elements of the population, who are going to be the sample. Since it is going to be a large scale research and this research is going to be targeting the entire organization.

Sample Size

The sample size for this research is going to be 250, and that size is taken keeping in view of the nature of the research. It must be remembered that this research is being done on a large scale and it covers the entire organization.

Measurement Technique

In-depth Interviews: The in-depth interviews will be one to one and the interviewer is going to ask a numbers of questions from the interviewee to gain inside knowledge and which is going to provide a general perspective to the recording company.

Questionnaires: the analysts and the managers will be provided with questionnaires to fill out, this will provide the information about the willingness of the employees for change or not.

The data which is going to be collected from in-depth interviews and questionnaires will be scrutinized and analyzed to obtain the knowledge that is needed by the researchers that how much unemployment effects business.

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Response Format (in-depth interviews and questionnaires): the interviewer is going to be asking open-ended questions along with close-ended, so that in-depth information can be obtained. The interview is going to be recorded and the interviewer is also going to take notes so that the researcher can go through the information again. For example, in close-ended questions the interviewer can ask the respondent some yes and no questions and from there he or she can tabulate the actual finding and can present it in a graphical form to the recording company.

Organizational Background

ABC Company is a very famous franchise in the world that serves coffee and baked goods like donuts, bagels and other bakery products, that operates in the fast food industry. Bill Rosenberg is the founder of ABC Company. It was in the year 1950 when ABC Company opened its very first shop in Quincy, Massachusetts. The first store that he opened still stands at 543 Southern Artery Quincy, Massachusetts. The headquarters ABC Company' Brands of ABC Company is situated on 130 Royall Street, Canton, Massachusetts. By 1954 ABC Company had opened about 5 shops. The company licensed first of their many franchises in 1955. Today ABC Company has somewhere around 7988 outlets worldwide and out of those outlets 5769 are only in the United States and the rest 2219 are internationally based franchises and by 2025 ABC Company' plans to open somewhere around 15000 plus coffee shops throughout the US. One of the major competitors of ABC Company' was Mister Donuts, which was acquired by the parent company of ABC Company and is now has been re-branded as ABC Company'. ABC Company operates in approximately 30 countries worldwide, they operate in countries like Aruba, Bahamas, Canada, Chile, Germany and UAE etc. The present president and chief brand officer is Will Kussell. The organization claims that America runs on ABC Company' and the slogan of the company is "Something fresh is always brewin' here". (ABC Company, 2010)

Products

ABC Company serves nearly a billion cups of rich coffee every year. The products of ABC Company are as follows:-

Baked Goods:-

Donuts (52 flavors), Munchkins, Cookies, Brownies, Éclairs, Crullers, and Coffee Rolls (9 flavors)

Breakfast Sandwiches:-

Egg & Cheese, Supreme Omelet and Ham & Cheese etc.

Coffee

Bulk Coffee, Espresso, Cappuccino & Lattes, Iced Coffee (flavors; blueberry, hazelnut, coconut, French vanilla etc.), Iced Lattes and Turbo

Hot Beverages

Hot Chocolate, Tea, Dunkaccino, and Vanilla Chai

Cold Beverages

Coolattas (flavors; coffee, watermelon, grape etc.), Iced Teas, and Smoothies

Mission and Vision Statement

The organization claims that America runs on ABC Company' and the slogan of the company is "Something fresh is always brewin' here". ABC Company is on the franchises round the globe that provide with food and beverages that are fresh, quick and quite affordable to their customers who lead busy lives. The company has been serving the best quality coffee for the last 55 years or so. ABC Company serves nearly a billion cups of rich coffee every year to their customers who are going for their work in the morning and they stop for a nutritious but a quick breakfast.

The mission statement of ABC Company is that it will work hard to be the dominant retailer of high quality donuts, bakery products and beverages in the market in where they choose to compete. The mission statement has helped the company to grow and develop itself and has also helped it to come this long way that is from where it started out to be a single coffee shop to where it is now having somewhere around 7988 outlets worldwide and out of those outlets 5769 are only in the United States and the rest 2219 are internationally based franchises and still the company plans to expand itself.

The vision of ABC Company is to be the world's largest coffee and baked goods chain and to incorporate teamwork, effective communication, enjoyable work and honesty in the company's work force in order to get to the goals and objectives to be successful in their mission. It basically started with keeping the customers in mind that what are their need and preferences. ABC Company have added a new range of coffee in their menus while keeping the customers in their mind. This new range of coffee is known as "Flavorology". ABC Company has realized the fact that the customers are always looking for new tastes and flavors in coffee as they look forward for a different start for every day. And with new flavors of coffee it helps the customer to do so rather than having the old and traditional monotonous flavors of the coffee.

Department and Role

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The department that I work for is the Human Resource department and the role that I play in the department is the HR officer one. The day activities for my work task are that, I have to keep a check on the expenses, create schedules, help my supervisor with payrolls etc.

Analysis of Mission, Vision and Value Statement

Relevance of Mission, Vision and Value Statement

It is with the help of a Mission, Vision and Value Statement that the company is able to identify its goals and objectives. The relevance of these statements is as follows:-

ABC Company embraces diversity, because it operates all over the globe.

ABC Company works for its communities and environment.

Recognizes the fact that profit is very important for the success of the company itself.

Being able to satisfy the needs, preferences and people who are connected with the company

Playing a positive role in the society, so that the company is able to make a difference

Employee safety is always first

Customer value and loyalty plays an important role in the success of the organization

Communication of Statements within the Organization

The vision, mission and the value statement of the company are very well communicated to the employees. For example, ABC Company also makes sure that the customers get a friendly environment when they enter into one of their outlets. As soon as a customer's enters into ABC Company' outlet, the customer comes across colorful but appealing wall paint and images, a very well seating arrangement which gives a soothing and relaxing experience to the customer, who in return enjoy their meal in a very friendly environment. The music is not loud when one enters in an outlet of ABC Company', there is no sound of kitchen and people behind the counter and the waiters are extremely friendly and helpful. This kind of a service helps give a customer a head, who leave the restaurant refreshed and in a jolly and relaxed mood. Although these strategies help make the customer happy, these strategies have also helped ABC Company to maintain both its existing customers and also attract new ones globally.

Influence of the Statements

The vision, mission and the value statement do leave an influence behind on individual, department and organizational level. These influences are as follows:-

Individual Level

Department Level

Organizational Level

Employees are willing to do their work

Employees follow rules and regulations

Empowerment of Employees

Honesty and integrity

Employees are valued

Effective Teamwork

Total quality

ABC Company ensures that the employees of the company are motivated and the company provides them with a good and healthy working environment.

Implementation of honesty and integrity in all the parts of the organization (i.e. following the proper codes of conduct set by the organization)

Innovation

Implementation of Teamwork

Being responsible for all its acts and being responsible towards the global environment

Change in the Mission and Vision Statement

The mission and vision statement of the company remains essentially the same over the long-term it basically emphasizes the fact that to become the dominant market leader in the donuts and beverages retailing business one has to intercept the customer's needs and preferences and to change with time.

The mission and vision of the company can make adjustment over the time to suit the changing environment and the changing needs of the clients and customers of the company. When the company is in the early stage of the strategy development process the management has to decide upon the vision statement of the company. The vision statement is reviewed and updated as shifts in the strategic direction of the company happen over a period of time.

Organizational Structure

Organization structure is a tool that the managers of the organization use to harness recourses for getting things done. The structure of ABC Company is considered to be a framework that shows that how the task / activities are divided among the employees and how they are carried out, how the resources of the company are deployed and how the departments of the organization are coordinated. The structure of the company is a set of tasks that are assigned to the employees of the company and to the department of t ABC Company, the organization structure also has formal reporting relationships within the company and it also includes authority within the company, the responsibility of decision making, levels within the company and the people who are considered in charge of other employees.

Structure Chart

Board of Directors

CEO

Vice President Accounting

Director HR

Director Marketing

Vice President Manufacturing

Manager

Team Managers

Manager

Manager

Team Manager

Manager

Team Manager

Team Manager

Organic Structure

In our case the organization (ABC Company) uses an organic structure; organic structure is the horizontal structures dominate the company as in the companies that are contemporary empowered. Here the tasks are redefined very frequently so that they are able to the needs of both the employees and the organization (in our case ABC Company). Here decision making is de-centralized and informal; authority is based on expertise of the employee rather than the hierarchy. The tasks are shared, i.e. the company works on a team based system. The benefits of the system would be:-

The employees would be empowered

There will be flexibility and speed

Innovation

Integration.

Relationship between Environment and Structure

Environment

Structure

Organic Structure

Uncertain (Unstable)

Correct fit : organic structure in uncertain environment

Certain (Stable)

Incorrect fit: organic structure in certain environment

Structure too loose

When managers use the wrong structure for the environment it reduced performance results. A rigid mechanistic structure in an uncertain environment prevents the organization from adapting to change and a loose organic structure in a stable environment is inefficient.

Influence of the Structure of the Culture of the Organization

Keep employees motivated

Employee training and development program

New product targets

Return on investment

Focusing on opportunities

Aims to be a leader in the industry

Provide top quality products and services to its customers

Helps them to stay above the competition.

Maintain long-term relationships with the suppliers and customers

Establish itself in every market niche.

Culture Analysis

Organizational culture is basically concerned with how the employees of the company understand the characteristics or elements of the organization's culture and not with if they like the culture of the company or not. The understanding and perceiving of the culture of the company can be defined as a descriptive term. The descriptive term basically focuses on the differentiation of this concept from job satisfaction. A research was conducted to measure that how the employees of the company see the organization in which they work, does the company encourages team work or not and does it reward innovation or not. The management of the company should keep in mind that the term organizational culture is descriptive form and whereas the term job satisfaction is based on evaluation.

Culture within the Organization

The culture that is being implemented within ABC Company is the learning culture known as the 'learning organization'. In this new era of the organization the main responsibility of the management is to create learning capability throughout the organization. And a lot of companies are reinventing themselves towards something called learning organization. In learning organization all the employees of the company take part in problem solving, identifying the problems, it helps the company to experiment, improve the company's efficiency and increase its productivity. The learning organization's focus is mostly based on customer satisfaction and quality. The learning organization also emphasizes on teams and systems rather on the hierarchy of the company to improve and maximize the company's performance. The managers need to go through a certain changes in order to make the learning organization a successful one. The learning organization actually breaks down the former vertical structure of the company and it uses the most new ideas to achieve collaboration through work teams, task forces, and horizontal linkages and through concepts such as networks etc. Teamwork is considered more important in the learning organization rather than individual work. For example, the teams are actually given major projects to handle like producing a product or a service. The boss would no longer make the decisions that are; the members of the team would take the responsibility for innovation, dealing with customers, training, and safety etc.

Effects of Learning Culture

Individual Level

Department Level

Organizational Level

Employees feel motivated

Growth and development of the employees

Ability to adopt new change

Individual learning

Teamwork is implements

Increase in performance

Increase in creativity and innovation of the products

Ability to adapt to change Collective learning

Teams are created at all the levels of the organization

Increase in innovation

Increase in the productivity

Informed about the environment

The organization became more flexible

Collective learning

Harmful Behaviors Based on Culture

If the company is changing at a rapid pace it will lose its core values

Too much diversity due to change will create problems in the communication process

Internal Environment

ABC Company would need a new marketing strategy because it plans to enter into a new market, i.e. the Middle East market

The brand of the company is considered very reliable

ABC Company is its mature phase of the market

The company is an innovator, i.e. innovates the products of the company

The company has a strategic advantage over its competitors due to its market portfolio.

The company believes in change.

External Environment

There is a control of the government on export and import

New emerging markets where the company wants to enter

Development of new products and services which satisfy the consumer's demand

Economic conditions and social concerns

Rivals or competitors of the company in the market

Policies like quality standards that need to be adhere by the company, when it is expanding itself globally.

SWOT Analysis

Strengths: Strengths of the company can be defined as the positive internal characteristics that the company can use to achieve its strategic performance goals. The company has gained its strength from its brand recognition of 'ABC Company'. 'ABC Company' is recognized as a worldwide donut shop and it is preferred by almost everyone all over the world. The brand name has been established successfully in 31 countries and it is continuously growing as well. ABC Company also provides quality products which are fresh and wholesome and services at reasonable prices, which again strengthens the company's position in the market.

Weaknesses: Weaknesses of the company can be defined as the internal characteristics that inhibit or restrict the organization's performance. The weakness of ABC Company comes from the inconsistent quality of food. This means that there are complaints that are made by customers of some particular franchises that the food quality is not satisfactory. Due to this problem the company is losing its sales along with their clientele.

Opportunities: Opportunities of the company can be defined as the characteristics of the external environment that has the potential to help the organizations achieve or exceed in its strategic goals. The biggest opportunity for ABC Company was that when the shifted from being an only donut shop to a donut and a coffee shop which bought in new clientele for the company and which has help the company to increase its sales and make profits.

Threats: Threats can be defined as characteristics of the external environment that may prevent the organization from achieving it strategic goals. The competitor of ABC Company is Starbucks. Starbucks is one of the market leaders in the food industries through their vertical integration strategies. Starbucks specializes in coffee only and it works very hard to retain its customers.

Risks Associated With the Culture

Sometimes it happens that the organization is not able to embrace personal mastery, i.e. if the employees of the company are empowered in an unaligned way then they can become a treat for the company itself.

There can be a breakdown in communication

The employees resist to change

There are barriers which are erected by the employees towards learning (Luthans, 2006)

Change Plan

When the company is changing its culture it would face some resistance from the employees of the company. However the significant barriers and resistance to change is shown by the employees of the company, the organizational cultures can be managed and changed completely with time. The management of the company should have this in mind that changing of the company's culture takes time that it is a slow process, it cannot be changed overnight.

Options for Change

There are different options for change, when a company is going through a change in their culture. The options are as follows:-

Change through Global Diversity

Change through Technology

Change through Awareness Training

Best Option for Change

The best option for change would be through global diversity. As globalization increases diversity would also increase, as the growing number of immigrants' increases it presents mangers with more complex communication issues with dealing with people whose native language is not the same as that of the vast majority of their co-worker. Creating a productive and enjoyable work environment is the dual responsibility of human resource managers and human resource experts. Having a diverse culture in a company is considered to be a beneficial process that will help in an employee's growth while it also increases the cultural sensitivity and as well as the mentoring skills of the HR department members, it is considered to be a 2 way process, the employees teach their supervisors or mentors while they are learning from them. If there is a diverse culture in a company, there will be a health competition between the employees and the result of that competition would be that the employees will do well in their work activities and the company will be able to retain its employees. Acceptance of diversity is becoming especially important because of socio-cultural changes and the changing of workforce.

Change Models

There are different change models that can be implemented by the organization to implement change. These models are as follows:-

Cultural Dimensions (Hofstede Model)

Hall's Context Model

7-S Model

Cultural Dimensions - Hofstede Model

The Hofstedes five dimensions of culture are used when a company is entering into a new culture for business. For example, ABC Company can use this dimension of culture to gain important insights when entering a new region. The five dimensions are as follows:-

Low vs. High Power Distance; for example, there is a high power distance in the Asian culture; the people who have less or no power at all in the society acknowledge the power of those who have high powers based on their positions in the firms.

Individualism vs. Collectivism; when entering the Asian culture ABC Company must remember that the Asian society is more inclined towards collectivism and not individualism. They believe that their family and their cultural values come first.

Masculinity vs. Femininity; when entering the Asian culture ABC Company must remember that the Asian countries are those countries in the world whose culture is masculine. The roles of the males in the Asian society are not very fluid but are more dramatic. ABC Company must remember that the Asian culture is very different from theirs because men are given more preference over the females no matter what.

Uncertainty Avoidance; uncertainty is based on reducing uncertainty from the society. Cultures like Asian countries have the highest rate of uncertainty avoidance, therefore they expect their employees to remain with the company for a long period of time and they prefer rules and expect their employees to follow them.

Long vs. Short Term Orientation: this is related with the society's future versus past and the present. ABC Company must know that the Japanese culture falls under long term orientation, where they have a sense of shame, strongly believe in values and order relationships through status, whereas ABC Company culture is completely different from that of the Asian organization's one.

Devise Change Plan

Implementing Teamwork: Teams play an important role within the organization. With the help of work teams the organization's productivity will increase and the performance of the organization will improve tenfold. The use of work teams within the company increases the company's potential and provides a lot benefits for the company as well. The organization and the team members are the ones who benefit from the team when it is a success. The teams usually have a positive impact on productivity and satisfaction on the members.

Assessment of Change: It is important that with time the change is accesses, to see that whether it is working or not. The assessment of change can be done through the following:-

Feedback: feedback is considered important, with the help of feedback the management of the organization will be able to identify if there are any problems related with the change if the culture within the organization.

Evaluation of Employee Performance: employee evaluation can be done through a number of performance tests. These tests are based upon the employees' knowledge or skills, these tests can be paper - pencil variety or may even require an actual demonstration of skills. These tests must be reliable and validated to be useful; even then, it is more apt to measure potential than performance and it will help the management to understand that whether the employee has adapted to the new culture or not.

Implementing Change Plan

Recommended Options: the recommended option for change plan would be through technology.

Benefits: the benefits are; Technological change has a huge impact on the training and development programs; it increases the need to assess the developmental requirements of current and future managers, professionals and technical people.

Time Period: It is going to take somewhere around 6 to 8 months for the company to change itself.

Responsibility: It is the responsibility of the leaders within the organization, for the implementation of change plan. The leaders of the organization would be able to create a successful environment and they would also create a capacity for change. And help their employees to accept change. Making a difference as a leader today and in the future requires a very different approach from the past. As the head it is the duty of leader to be able to communicate with the subordinates who work under him/her.

Monitoring & Evaluation: monitoring and the evaluation will be done by the HR department. For example, there are several ways through which the goals and the objectives of the company can be achieved; the way they are achieved is known as the equi-finality which means that there are a lot of ways to gain the objectives. The HR department can develop the employees in such a way that he or she is adaptable to change

Estimated Cost: The company would need to use PERT (program evaluation review technique) along with CPM (critical path method), this will provide useful aid to the managers for estimating the resources that would be needed for a project and clarifying the planning process.

Recommendations

The organizations need to be more flexible to change

The management needs to train and develop its employees for the future, so that they are able faces all kinds of challenges

The management needs be accommodative towards its employees from time to time

Focus on innovation and continuous improvement

Empowerment of employees

More interaction between the management and employees.

Conclusion

Sometimes it becomes necessary that the company has a need to change its culture so that its performance can improve. For example the current environmental context of a company has undergone a huge and a drastic change and the company has two options either adapts to the new changes and conditions of the company or not to change and if the company does not change it might not survive. It is considered important the companies in this time and age need to have a culture that learns and that it anticipates change. It is important for the company to anticipate change or moving towards change but it is not easy to let go of the culture and move towards a new one. If the employees of the company are not developed for a change they would resist it and that would decrease the efficiency of the company. Therefore it is the work of the Human Resource department to train and develop the employees so that they are more adaptable towards change.

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