It is undeniable true that Partexceltron Ltd had a need for major change within the organization. It is about a planned change that according to McNamara (2006) it occurs when leaders in the organization recognize the need for a major change and proactively organize a plan to accomplish the change. This is a typical situation in a chaotic organization.
Organization development (OD) operates at all levels of the organization, individual, group, and organizational. It is a long-term process for initiating and implementing planned change.
In order to diagnose the current situation, let us try to understand the positives and negatives inside and outside the organization. In order to identify possible reasons for change we are going to carry out a SWOT analysis to help us to analyze the company's situation.
Partexceltron Ltd is a medium-sized company which took the decision to expand their operation; productivity rose by 15%.
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The company has been built upon a reputation for good delivery times and good customer service.
The organization is a respected employer that values is workforce.
International sales were increased by 50%.
Need for a professional Human Resources (HR) person.
The organization is dependant on its main competitive advantage, the delivery time, so sometimes the employees feel the pressure to reach the target.
Tension is increasingly growing between board operatives and module operatives. Employee's felling of distrust and worthless.
A diversification within the business
The company has the opportunity to expand its global operations.
New markets as the Far East are beginning to emerge.
Of the 84 operatives just 28 had been trained to produce the micro-chip modules.
Company's culture of support and high commitment could be damage.
Threat of strikes and unrest within the organization.
SWOT analysis shows us the key factors for success when looking at the strengths and weaknesses due to we can define key areas of performance that are essential for the organization to accomplish its mission. Thus, according to Caralli (2004) any activity or initiative that the organization undertakes must ensure consistently high performance in these key areas; otherwise, the organization may not be able to achieve its goals and consequently may fail to achieve its mission.
It is now time to develop a vision for change. We need to highlight the important role that HR executive plays in influencing organizational performance in today's competitive environment. It is reasonable to assume the necessity of a HR person to manage the set of resources (e.g., human capital skills, employee commitment, culture, teamwork, etc.) that are most likely to be sources of sustained competitive advantage in the future as Barney & Wright (1997) stated. In the case of Partexceltron the department of HR would be of great help, as the company requires the development of a program that allows employees to be selected and trained for those jobs that are better suited to their skills. Furthermore, another of the tasks of the human resource management is the application of the rewards or incentives that are born of the need to motivate the employees. Thus, the company must hire a HR person in a short-term, from outside the organization due to it is going to allow that person to check more objectively the relationship between the employees and the organization.
It is a well-known fact that the leaders are the ones who have to guide and understand their employees. Partexceltron's managers harmed the business environment due to a lack of communication that leaded to a lack of trust and credibility in the business. These problems were reflected on the employee's feelings emerging a hostile environment where constant conflicts appeared. As Rahim (2010, p.7) stated conflict may cause stress and job performance may be reduced. For this reason, it is a responsibility that needs to be shared for the whole management team, where front-line managers can formulate the conflict strategy, HR person can play the role of mediator in formal disputes and leaders have a key role to play in modeling desired behaviours, ensuring that conflict management strategy is given an adequate resourcing, as Johnson & Keddy (2010) quoted.
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Applying the tropics test to determine the nature of the problem we must consider it as a soft one due to the variables that constitute the problem are very subjective. Everything started due to a simple conflict between the two units, the board operatives and the modules operatives. The board operatives were sick and tired of being classed as second raters and despite work harder they got worse working conditions. Partexceltron's managers need to take serious actions about structure and job design to provide an effective governance model. According to Aquinas (2008, p.177) it involves conscious efforts to organize task, duties and responsibilities into a unit of work to accomplish the objectives. Furthermore, it would help to fulfill important individual needs with an emphasis on performance and satisfaction as desired outcomes. It is worth stating at this point that internal communication is the most important aspect within the organization to get a unique direction and obtain the seeked goals set by the company. Smaller organizational decisions should be taken by senior individuals, but large ones should be decided as a group. Everyone's voice must be heard to avoid murmurs and back-biting as Smith & Mounter (2005, p.10) stated. Furthermore, clear and real information, avoiding workers rumors, will not generate doubts in the business.
Workers motivation is an essential issue due to it will make workers feel part of the business making their effort and productivity increase. Companies are increasingly investing money to improve its work climate due to this is in relation to the motivation, satisfaction and productivity of the employees. For this reason, the personality and the needs of the workers are the main factors that executives and managers should evaluate to ensure the motivation of its employees and thus, determine the form of motivation more indicated to use. It was therefore concluded by Clements-Croome (2006, p.32) that the fact that the company were taking an interest in their working conditions resulted in increased motivation. In other words, the motivation is a key element for business success as it depends in large measure the achievement of the objectives of the company. To improve the motivation of their employees, Partexceltron as a medium-sized company could treat each employee as an individual person and recognize their merits when necessary with rewards. In addition, managers need to listen to their ideas and proposals giving to the employees the opportunity to participate in the decision-making.
In the ongoing quest to be competitive, organizations are looking at, and are being exposed to, more comprehensive change. This type of comprehensive change is referred to as significant if it requires that an enterprise must respond in order to maintain its competitive advantage as Chrusciel & Field (2003) stated.
Next step for Partexceltron would be to gain commitment to the vision and the need for change. According to Cripe (2012) vision needs to be shared with all employees so that each person can assess it in conjunction with his or her own vision. It can develop motivation, inspiration, and mutual responsibility for success vision due to it can be taken as an ability or characteristics of a person which can not only be capable to perceive the future in precise and accurate way, but also can increase the motivation and sense of responsibility to get this desired future (Abbas & Asghar, 2010). Communication results key as well as the development of integration efforts aimed to make everybody's opinion to be heard. Poor communication is a major barrier to change.
We need to highlight the importance of the questionnaires and interviews to get some feedback on the existing ideas for change. More specific attention to forms of change communication and to the communicative skills of change agents is needed. Furthermore, feeding back the results to the workers could help to understand change communication and to develop ideas for improvement (Bennebroek, Elving & Werkman, 2005).
Now, the issue is how the vision can come about. An adequate preparation for change must be present in the plan. All components and departments must fully understand the change. The consensus should be unanimous, so that Partexceltron employees can work in the same path, sharing a unique goal. An action plan is the way to make sure your organization's vision is made concrete. According to Roughton & Mercurio (2002, p.88) the development of an action plan presents another opportunity to get employees involved. Managers and others employees can play an important role in mapping out the details they will be expected to accomplish. The plan must be specific and flexible enough to respond to change due to it is always a continuous process. Beckhard & Harris (1987) as cited in (Sharma, 2007, p.32) focused on the importance of transition state through which members of the organization first realized their dissatisfaction with the current state and then identified the desired future describing the new plan that the organization needs to adopt.
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In order to analyze the company's situation and construct an action plan designed to achieve the target situation we are going to use Force Field framework and therefore identify the forces supporting the change and others opposed to it. (Annex 1). As can be seen in the plan, it is necessary to give all employees the same opportunities, to re-create a working environment based on trust and communication. All the employees must be trained to produce the micro-chip modules, and in this way, the company will not be dependent on the delivery times. This action, jointly with the hiring of a person in charge of the department of HR external to the company, must be carried out in the short-term. The aim here is to develop high performing teams with characteristics such us shared responsibility, alignment of purpose, effective communication, future focus, a continued focus on task, creativity, productivity and rapid response (Lowenberg & Conrad, 1998, as cited in Furnham, 2005). In this way, tension and stress of the workers will decrease. Moreover, all staff must attend to a monthly meeting to assess and improve the way things are done and section leaders must speak every week with the current managing director, Jack Stevens.
It is now time to discuss how implement the change. It is reasonable to assume that people are the key force to drive successfully the change. For this reason, lack of personnel support is the principal cause of failure to accomplish change. The goal here is to carry out a plan in which people believe and trust. People will believe in a plan they understand; they will support new processes and structures more readily if they have an opportunity to participate in developing them as Suran (2002) quoted.
Finally, Partexceltron needs to assess and reinforce the change. In this step we need to evaluate how changes in attitudes, behaviours and cultural norms are taking place. In any process of change, persistence is the key for ensuring that the process would reach its goals. All members in the organization should be seriously committed towards the process of change. Change objectives will be reached on time if the change transition is managed effectively. Therefore, Partexceltron has to strengthen the change, evaluate results to initial change objectives, and make additional modifications if necessary. Moreover, the company needs to assess its organizational culture due to Partexceltron's culture could have been damaged. Organizational culture integrates a set of values, attitudes and beliefs, communication, assumptionsâ€¦and in general a common behavior generating an organizational culture. Thus, cultural change implies that the people involved change their assumptions and goals and behave accordingly. The main objective of a good change agent is the joint optimization of the outcomes applying justice, moderation, prudence, honesty, humility, etc., for the organization as a whole, as well as for its individual members and other stakeholders as Schabracq (2007) quoted. The company needs to assess all the factors that we have restructured such as the communication policies, the motivation of its employees and the new values of the company in order to create a relaxed and pleasant workplace environment.
In order to conclude, we need to highlight the importance of managers and section leaders working together to learn how to manage these aspects of change more effectively. Communication between them is essential. The process of leadership is not easy and it goes beyond simple planning, organization and control of activities and processes. In any process of change, we need to deal with the ability of the leader to make the people to cooperate and participate, with the harmony that exists between members of the organization and the external factors to this.
The process of managing change is not an easy one. We must design a plan and implemented it. Defining the scale of change, as Dunphy & Stace quoted, corporate transformation is an organizational change that is affecting the whole organization. It is a radical change.
HARVARD REFERENCES LIST:
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Aquinas, P. G. 2008. Organizational Structure and Design. Applications & Challenges. New Delhi, Excel Books, p.177.
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Bennebroek, K. M. Elving, W. J. L. & Werkman, R. A., 2005. The Communication and Organizatonal Change Questionnaire: Development, Results and Application [pdf] Available at: http://www.pluspulse.nl/pdf/academypaper2005.pdf [Accessed 6th January]
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FORCE FIELD ANALYSIS:
Tension is increasingly growing between the two modules. Employee's felling of distrust and worthless.
Company's culture could be damage
Expands its global operations.
Forces in favour:
Managers interest in gaining presence in the market H-5
Good delivery time H-4
Good customer service H-4
Of the 84 operatives just 28 had been trained to produce the micro-chip modules. H-5
Pressure to reach the target H-5
High 5 //Medium 3//Low 1
Gain presence in the market V.I.
Good delivery time I.
Good customer service I.
Just 28 had been trained to produce the micro-chip modules. V.I
Pressure to reach the target V.I.
Very important V.I. // Important I. // No important N.I.
Possibility to train all workers interested
Select an action:
Hire a person in charge of the department of human resources who will be responsible for training employees.
Organize staff meetings.
Human Resources needed
Training: all staff must attend. 3 hours per week
Staff meeting: once per month. Listen employees concerns and needs.
Speak with team leaders. 1 hour per week.