In order for there to be effective communication in a business there has to be a good measure of formal and informal communicational structure and management. Riordan Manufacturing recently has decided to make a change to its company's customer management system. The company does not currently have any formal system for managing their customer information and has traditionally left this up to individual employees. This new system will require employees to use one customer management system.
My team and I are working to help Riordan implement this change and as its consultants we must do the following; identify formal and informal power structures in the organization, the most appropriate for the company, potential effects on employee behavior, characteristics of the company's culture, and potential sources of resistance to change. My team will recommend a strategy to implement the changes over the next 12 months and describe how we will evaluate the success or failure of the planned change.
Section I: Change Management Plan
Current Formal and Informal Power Structures
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Riordan Manufacturing functions as a dominant structure and a system based on formal power. Organizations are departmentalized into functional areas based on the scope of work. The organization also breaks down jobs and departments based off personnel skills and experience. Each department or division has a VP that oversees the department and reports to the chief executive officer. Each VP has managers who manage a number of employees. This system will allow effective management throughout the organization. This also allows decisions to be disseminated throughout the organization with ease. The system is very common and popular throughout organizations today.
Front-line employees report to managers, manager's report to directors or regional managers, directors report to division VP's, and VP's report to the chief executive officer. This system allows systematic communication and relies on clear and concise management. This type of system can create a disconnection between the top chief executive officer level to the front-line employees if the chief executive officer does not have accurate reports and information. It is important to have the right managers and leaders in the key roles. This helps employees because if everyone is performing his or her function properly, the organization should run smoothly. When organizations receive a project, the most efficient way to complete it successfully is to incorporate it into an organizational structure. There are three structures available that companies can choose from; functional, pure, and matrix.
Appropriate and Effective Organizational Structures
The most appropriate organizational structure we thought was the functional structure. The functional organizational structure will allow employees to be flexible. Employees can contribute as needed, and return to their normal position because all projects in that division are directly related to their field of work. Another benefit of functional organization is the shared knowledge and experience of the group, which provides a potential source of creative solutions to any problems that may arise.
Potential Effects of this selected Structure
The advantage of a functional organization is that the workforce may be divided into specific groups and employees will not have trouble in understanding what the company expects from them. Another benefit is that duties and responsibilities can be defined so that work cannot be replicated. Organizational design has affected employee behavior yet has become an important factor of the modern organizational leaders. No longer can employers rely on the traditional models of design structure, function, and employee interaction.
Characteristics of the Company's Culture
Company cultures constantly change over time. As employees leave the company and new personnel come along the company culture changes. Strong cultures may not change very much. However, because new employees bring their own values to the group the culture may change. A company culture will change as the company grows from a startup to an established company. The type of culture that the business currently has is employee commitment.
Potential Sources of Resistance
It is normal to experience different types of resistance when change comes along. Knowing that there will be conflict to change will help an organization prepare for it, identify its sources, and modify its efforts to manage the issues of change to ensure success. As a leader, you must understand what your employees are feeling and thinking. There are a few strategies for resistance. First, involve employees who are interested in planning for change by asking them for advice and incorporating their ideas. Second, clearly define the need for change by describing the strategic decision in person and in written form. Finally, if you and your organization are not prepared to fully commit yourselves to the change, do not announce the strategy.
Recommend a Strategy
Always on Time
Marked to Standard
Change can be a painful process in the workplace because it means going from what is certain and known to the unknown. For change to be successful, a conscious well thought out project management approach should be taken. Managers should think the change through creating a vision, and strategy of what the plan will consist of. First on the agenda for management should be to create a checklist on the planning and implementation of the change to take place. It is important to keep a record of employees and their functions for future improvement. By doing so, management can implement positive changes.
Evaluate the Success
Organizational plans and initiatives need to be "evaluated" throughout its course. Asking employees and coworkers if your action plans are working is the first step on beginning an evaluation. Positive results suggest that the initiative is heading in the right direction and you probably should keep heading there. Evaluations are vital in helping management see what actions must be taken if the initiative is not heading in the direction you planned.