Transformation Growth Of The Worlds Economy Commerce Essay


Transformation growth of the world's economy, environment, technology and human behavior have the most influential towards an organization's change. The influential of the changes forcing the needs of strong change management in an Organisation, in order to cope up and stand strong in the competitive market.

The future of Work" written by Malon are guide us into a right way, when he said we need to shift from command-and-control to coordinate-and-cultivate. The message from this book is from the first time in the history, technologies allow us to gain the economics of larger organizations, like economies of scale and knowledge , without giving up the human benefit of small ones, like freedom, creativity, motivation and flexibility.

The workplace is changing and the education and skills need in the 21st century are difference compare with 20th century. Nowadays, everybody are talking about the world is flat , that is not more country and the distance in the world. Advance technology is required in the 21th century, Communication with outside the country and also need to attain proficiency in science, technology, and culture, and gain all the information around the world.

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Talent Management increasing focus in Human Resources Management on planned and strategic management of employee, often with a focus on senior leader. For the talent management there are looking on two major areas of measurement: potential and performance. Monitor on employee performance and develop their potential to ensure company future have a good development. To develop a easier talent management strategy and to increase awareness of available successors and talent employee, all organization should conduct monthly talent review meeting to ensure every employee are on the track and understanding company current situation. Monthly review employee performance and discussion career future of employee to appraisal successors and top talent employee in the organization and to create action plan to prepare employee for future roles in the company. This is the talent required to maximize wealth creation and create competitive advantage.

The purpose of this assignment is planning for the company shift their thinking from command and order to coordinate and cultivate. From this assignment company also need to understand how important to change management could be effected by nurturing and motivating worker with creative skills to enhance productivity and thus sustainability and profitability of the organization.

2.0 company background

ABC Sofa Sdn Bhd a privately owned limited company was established in years 2005.It operation located at Pekan Nanas, Johor approximately 45 kilometers north-east Johor Bahru. Currently, it has a total workforce of 300staffswith monthly production 100 containers. It exports its products worldwide, mainly to Europe and Asia.

ABC Sofa Sdn Bhd is involved in producing upholstery sofa and current production capacity is approximately at 10,000 seats per month. Manufacturing process of upholstery sofa can be categories to different sectional process namely cutting process, sewing process, filling process, framing process, assembly and packaging. Cutting process entail the cutting of leather, fabric or PVC sheets. All of the material are transferred for sewing and subsequently filled by polyester fiber (seat gum). On the other section of the manufacturing floor, the framing process takes place where wooden frame are joined with PU foams and webbing (either by glue, staples, nuts and bolts) to formed as sofa base (white body). Later, seat gum and the white body are assembled to become a completed sofa set.

Company Current situation

The Company has been in operation for the past 7 years Our company overall focus on good quality is the quality primary requirement of the customer. Company is lack of top management leadership and involvement. Local worker turnover is too high, many entry level workers do not received training and feedback that they want to receive when they are trying to work their way up in the company. As usually happened is that manufacturing workers find that they have learned everything that there is to learn and won't have any promotion in the company so they will look for other better offer from other company. This is not good for the company because of the turnover has a huge effect on the quality of the manufacturing system for many reasons. Therefore Enhance the Human Resource Management can settle internal problem. As well as Company now still using command and control to manage organisation.

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In addition, company business expends to overseas, but company still lack of the advance IT system to management. Is it the time to changing the management and develop a new organization development? Is it the timing to change company thinking from command and control to coordinate and cultivate to fulfil the new culture and develop more business?

3.0 Organization Development

3.1 New Thinking from 'Command & Control' To 'Coordinate & Cultivate'

New Perspective: We need to shift our thinking from Command-and-Control to Coordinate-and-Cultivate. When a company coordinate that is good thing to employee whatever you are in control or not. Coordination focuses on the activities that need to be accomplished and the relationship among them.

ABC Sofa Sdn Bhd's organization development, company adopt to shift our managemet direction from "Command and Control To Coordinate and Cultivate". Company are decide to end Command and Control culture and start Coordinate and Cultivate, means that company movement toward human freedom in business that may be as fundamental as democracy. But company making change is no easy for everyone, so it is important to certain that you really what to make change.

First to change is gives employee more authority, and gives them an opportunities to grow to their toolkit. But it is not easy to make the change immediately because of the old command and control to exert authority to influence employee's thinking. As a company we must give employee flexible authority to let employee to make some decision, let them starting to learn how to make decision and to hold the responsibility. It may take some time to change and let all employees to hold the responsibility to become Coordinate and Cultivate, but slowly change will bring the big impact for company.

To Cultivate is to bring out the best in people through the right combination of controlling and letting go. Sometime company management need to give employee top down command, but sometime needs to assist employee to develop their natural strength. A good cultivation, therefore, including find the balance between centrelized and decentralizes control.

3.2 Employee Education & Creative Skills

For company's employee education and creative skills playing a very big role of the organization development, because the knowledge is the key differentiation of the professional class, is it imperative to provide a clear definition of the term and its context. Employee knowledge is information used to make sense of problem, example question raised for inquiry consideration and solution. Knowledge is not something people process in their minds but rather something people produce together.

Among creative, knowledge-intensive, traditional organization boundaries are not particularly meaningful because these worker seems to respect professional boundaries more than ones and use reciprocity and knowledge sharing as exchange currency. Creative workers are well aware that their reputation and the loyalty of customer to them, not organization, are the only things that can guarantee them a job in the long run.

In additional, Company conduct a weekly and monthly in house workshop and training seminars. Company provide education resource of employee in the form of expert conducting workshop and training. Example company can provide a computer learning section for those employee doesn't know how to use computer, like Microsoft excel and Microsoft words. For those employees who are educated, whether through self or company provided, are more likely the employee will be useful when implementing continuous an improvement strategy. Continuous education give it to employee improves reasoning skills which are valuable assets for company development

3.3 Talent Management

ABC sofa Sdn bhd adopt talent management strategy to create awareness of available successors and talent. Talent review meeting is an important parts of the overall talent management process. Company designed and review employee performance and career potential of employee, to discuss current promotion opportunity of current employee. To identify the top talent in the company, give opportunity of those employees to show their ability and potential on work.

Company should conduct monthly and weekly working performance review is required to monitor employee's work process everything is on the track. Let company to take this opportunity to share more information to staff, let them gain more confidence of company. Employee working performance has always been a standard evaluation measurement tool of the profitability for the employee. However, talent management are seeks to focus on employee's future performance.

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The talent management strategic creates strategic advantage for company primarily through improving human performance or talent and focusing on the long term to generate company energy that drives performance. Company believe that maximize employee potential over the long term is the key achieving result.

Company that adopt talent management as strategic and deliberate in how they source, select, attract, train, develop, retain and move employees through the organization. This mindset of this more personal human recourses approach seeks not only to employ the most qualified and valuable employees but also to put a strong emphasis on let the employee stay in the company.

4.0 Change Management

4.1 Organizational change

Organization culture change appeared to have some influence on attitude toward organizational change. Innovation is the engine of change the right of positive characteristics provides the company necessary ingredient to innovate. Culture could enhance the tendency to innovation. Therefore company suggested the culture allow an organizational to address ever-changging problems of adaption to external adaptation. The majority issue for the organization is to determine which type of organization culture would like to be. The challenge task could from top management to decide how to implement changes in the organization.

For the organizational change here are some tips to apply;

Give people information, Company must be honest and open about the company's facts, but dun give overoptimistic speculation. Meet their openness needs, but in the way that does not set unrealistic expectations.

Give people choice, to make and be honest to tell them the possible result of those choices.

Give people time, to talking their views, and support their decision making on the task, provide couch, counseling or provide full information to assist them through the loss curve.

Keep observing good management practice, example conduct a monthly review, discussion and feedback though the pressure might seem that is it reasonable to let such thing slip - during difficult change such practices are even more important.

For ABC Sofa Sdn Bhd can be change separate into two; changing environment and changing organization culture and structure. Managerial and organizational research is the is the only beginning to analyze the problem solving capabilities of the employee working attitude and working environment, the company organization structure.

ABC Sofa Sdn Bhd would like to change Human Resource Management Human Resource quality equitation provides HR department with the opportunity. HR can be the "business issue" that brings out senior managers and HR executives together to move from just Human Resource Management to strategic Human Resource Management. A major role in the organization managing change, HR in a position to contribute directly and visibly to the bottom-line, to add value to the companproduct and services in the same way that other functions, such as sales, accounting and production, add value. (Heizer, J. & Render, B. 2004 pg 329-324). Company recommends doing some adjustments from the Human Resource Management, example like re-design the job scope and the job regulation and policies. Operation Manager can re-design the job scope for those workers facing some working problem and to arrange the positions suitable put them. And also can promote those employee performed very well during the last few years to encourage them to more aggressive to work. In Addition, company can consider to re-provisions of the rules of the company. Building morale and meeting staffing requirement that result in an efficient, responsive operation are easier if manager have fever job classification and work-rule constraints.

In the other words, if company context where survival critical, the mercenary culture adopted well to ensure he survival. Therefore, as manager, the mercenary culture in an organization can ensure efficient and effective of organizational goals and objectives. This type of culture can make sure every employee very work hard, try to hit the company target and objective.

4.2 Process of Change Management

The change management process is few steps that a change manager team or the unit manager would follow to apply change management to a company. Please refer below change management contain the following three phases:

Phase 1 is preparing to change, company have to define company change management strategy, changing the team name and a new team member. For the first step in managing change is creating awareness around the need for change and create a desire among all the employee. Therefore, communication becomes a very important part to deliver the message to all the employee. The message should bring to employee and create the awareness around the business reasons the change and the risk of not change. Communication and planning is begins with a careful analysis of the employee, key message, and timing for those messages.

Phase 2 is Managing change, company should detailed planning and change management implementation. Manager and team leader will play a key person in managing change. The manager or team leader has more influence compare to an employee's motivation to change than any other person at work. But the manager and the team leader are the most difficult convince of the need of change. To the worst , company can consider to change the manager or team leader and executive sponsors to gain the support of the employee and build change new leadership. Once manager and team leader are on ready, the change management team must be prepare a series of training. The training should including the change management tools with their employee. Lastly the change management, employee needs to understand and manage resistance from the company.

Phase 3 reinforcing change, company should do date gathering, corrective action and recognition. All the employee involvement is a necessary and integral part of managing change. Feedback from employee is the key element of the change management process. Analysis and corrective action based on the feedback provided by employee. In addition, celebrating and recognizing success is necessary. Recognition is a necessary component of change management, in order to stubborn the change of management in the company. In this reason, company can review back the whole program, evaluate successes or failures, and identify process problems for the next project.

Along with the management change management process, organization is creating a system for the organization managing change. For the good management change above is important component tools to follow.

5.0 Conclusions

5.1 Lack of Effective Communication

Communication is the ability to communicate with between employer and employee. Communication is expressive, message sending and receptive, message received, process. Lack of effective communication can be due to problem on either or both ends of the process. Another one lack of communication is an inability to communicate effectively. Having effective communication will certainly the opportunity in the business and will enable to get ahead certain area where others who are less assertive may not succeed. Example company wants to make some change or make decision, they is depending on the manager or supervisor to communicate with all the employee. If the person lack of effective communication, it may bring out wrong information to company staff.

5.2 Resistance to Change In Organization Culture

When company decide to change the organization management, but some of the employee are resistance to change in organization culture cause the employee are doubt on their capabilities. This kind of self doubt wears out self-confidence and undermines personal growth and development. Changing are need some time and need communication between employer and employee, a clear communication can avoid employee resistance to change in organization culture. It is human nature to resist change. Company need to created a habit and prefer the security of familiar surroundings. As changes occur in company environment, most employee will not positively to those changes

5.3 Lack of Top Management Leadership and involvement

Company manager are lack of the fundamental training in managing people, some of the manager even lack of the value, sensitivity and awareness needed to interact effectively all day long with people skill and techniques are easier to teach but the leadership and the relationship are need time and need to reliable of each other to build up the team work. Managers are the front line representation of company business. The majority of the communication about the business is funneled through company manager. When company employee turnover rate become high , this can be the main reason for their resignation. Open communication between manager and subordinate can stimulate many good ideas from those who are best acquainted with the problem that requires change. It also alerts managers to potential problems that might arise when the change is implemented. Such an approach also involves employees in the diagnostic and creative process (p. 130).

5.4 Lack of Understanding of Talent Management

Talent management required human capital the organization need a plan to meet those needs. A good talent management can improve awareness of available successors and talent, all company should contact monthly talent review meeting to avoid the lack of understanding of talent management. Review is an important part of the talent management process, review the performance and career potential of employee, to discuss possible vacancy risk of current employees, to identify the talent in the management. A talent management must work with business strategy and implemented in daily process throughout the company as whole. It cannot be left solely to the human resource department to attract and retain employees, but rather must be practiced at all level of the company.

5.5 Lack of Employee Motivation

Motivation is combined of people desired and energy directed when archiving a goal. This can influence a employee's innovation means getting then to want to do what you know must be done. (Military Leadership,1993). Normally employee know how to perform as ordinary, but while employee many jobs have problem that are affect to the position, it is the problem that are affect to the person that normally cause us to loose focus from main task to getting result. So, once the company know the problem then have to assist them to solve the issue to avoid effect whole company's environment. Most of the employee want to make a good job. It is company to work with the employee as long as business needs are met and it is within the bonds of the organization to do so.

5.6 Ineffective Action Plan For Responding to Change In Your Workplace

The workplace is expected to change over long period. Most of the companies agree that the workplace is changing and the skills necessary for success in the 21st century workplace are different from those needed in the 20 century But some of the plan is cannot workable because of some reason. First it is the new plan is not suitable for the company and the staff cannot understand the plan. Second it maybe the management are not communicate or guide the staff properly and the last is staff are thinking that the plan is not suitable for them or affect their working benefit so they refuse to change. If the company facing this issues, they must be solve the issues as fast as possible . Because it may affect the employee working morale.

6.0 Recommendation

First, Company should improve on the communication with all the staff. Clear communication can let all the employee understanding organization future grow and company development. Effective communication can build up a good relationship between company and employee. And the effective communication can reduce the problem for those employee resistances to change in the organization. So the manager and the team leader become an important role between company and employee.

Secondly, Organization management adopt talent management to develop employee potential. Lets the employee become more educated and develop their strength, therefore employee can be an important value assets for the company. Promotion opportunity is provided for those employees are really wants to work. Let those employee can be motivated and work with very hard working.

Lastly, Company must be continuing on the talent management review, to ensure the entire employees are on track, can understand company goal and continuously to develop their strength and their potential.