Organisational Transformation in Practice - Essay Example

? Organisational Transformation in Practice Contents Problem & context – describe the experience 3 Self awareness - Feelings and thoughts 4 Evaluation 6 Analysis 10 Conclusion – alternative courses of action 11 Action plan – vision 12 References 13 15 Problem & context – describe the experience The need to transform the processes and existing business practices of the organization is transformed into practice with the necessity to quit the old and obsolete systems and gain hold of newer and innovative business practices. However in that it needs be mentioned that managerial action and effective decision making becomes a true necessity while transforming the business organization along separate lines involving human and technological resources and also taking the organization as a whole. Each of the several departments and business units need to revamp their working and management styles while gradually imbuing the change concept. Moreover the process of organizational transformation helps the employees to gain huge insights into the change process. However the process of organizational transformation also renders potential obstacles and challenges to the managers which must be effectively managed to render efficiency. Organizational transformation as a change process becomes effective if the newer business processes and innovations brought about are rightly absorbed by the existing business climate. Similarly while recruiting newer employees or installing newer machineries and production systems learning must be rendered to train the recruited workforce to inherit the existing organizational culture. Again the existing pool of human resources must be also trained to gain insights about operating the newer machineries to rightly adjust them to the innovative environment. (Brynjolfsson, Renshaw & Alstyne, 1997). The process of organizational transformation is found to be a spontaneous process involving the transformation of several organizational factors and business processes. Each of the different organizational factors like human and technological attributes tends to act in a collaborative manner to help in the transformation of organizational dynamics. The several business departments pertaining to customer servicing, resource allocations, financing and billing and inventory and management of distribution channels all contribute to the process of organizational change by effectively altering the existing operational and business processes. (Kamoche, Cunha & Cunha, 2002, pp.182-185). Self awareness - Feelings and thoughts The experience of organizational transformation can be studied along certain relevant parameters like alterations in management and leadership styles, alterations along the personal and at the employee level and changes along the organizational climate as a whole. Organizational leaders become closely associated with the transformational themes introduced in the concern to bring about a holistic change in the existing business processes. The approach of the business leaders to help in rendering change in the business processes brought about the theory of ‘transformational leadership’. Leadership aspects in the organizations underwent large amount of transformations owing to changes in the external business environment. Moreover transformation brought about in the existing leadership styles also called for large amount of changes in the behavioural patterns of the leaders making them more courageous and accountable. Further the above aspect also demanded the leaders to develop their visionary potential and thereby inculcate an environment of spontaneous learning. (Simic, 1998, pp.50-51). Similarly the roles of managers also assume equal importance and potential to guide the different organisational levels to rightly adapt the change process. Role of managers in the change process involve guiding the people to perform in an efficient manner in respect to the changing environment. It is observed in this respect that the upper management body of the organisations operate based on some said assumptions where they tend to cultivate an authoritative work culture to govern the practices of the employees. (Weick & Quinn, 1999, p.380). Changes in the personal level in correspondence to the organizational changes can be studied along certain relevant parameters which can be enumerated as follows. The people in the different levels need to develop on their visionary, innovativeness and creativity aspects to help perform effectively in respect to changes in the external environment. Further the people must reflect relevant traits like courage, self respect and also must be highly accountable to the environmental and organisational standards in order to create a collaborative organisational culture. Employees while performing in a collaborative business sphere reflect the growth of teamwork in business organisations. This teamwork aspect helps in division of the entire task along several heads to accomplish organisational objectives. (Chawane, Vuuren & Roodt, 2003, p.67). In terms of organizational leadership the theory propounded by Kurt Lewin it is observed that there are mainly three different styles of the leadership movement in the organizations. The first style depends on the democratic approach where the management body takes decisions in close consultation with the employees at different levels. In regards to the second style the leaders are found to leave the entire work load upon the employee’s shoulders along with the management and decision making activities. Finally in the third stage the organisational leaders come out with a different working style where they tend to dictate the working styles to their subordinates. These are the three styles which a leader can take while delegating the work to his subordinates to fulfil the organisational objectives. It is further observed that to help in the fulfilment of organizational objectives in an effective manner the process of democratic leadership suits the best for it incorporates the views of all employees. However in regards to the second group it is observed that though the gaining of personal authority in accomplishment of organisational goals helps in gaining productivity yet it does not contribute in enhancing the satisfaction level of the employees. Finally in the third case where the business leaders render an authoritative business environment it is found that the employees start suffering from considerable amount of frustration which leads to decline of their productivity. (Harris, 2006, pp.338-339). The internal climate of the organizations are generally constituted by mainly three elements like the structural elements of the organization, patterns of leadership followed in the concern and the social and cultural aspects of the people working in such concerns. Hence effective leadership roles help the employees to perform in an effective manner to accomplish organisational goals in a collaborative fashion. Encouragement of team work among the employees helps them to interact effectively with the organisational managers leading to productivity enhancement. (Sinha, 1978, p.124). Evaluation While evaluating the managerial and leadership styles in regards to the accomplishment of business objectives it is found that certain levels of organizational transformation enabled were encouraged by both the employees and supervisors while in some aspects there was emergence of conflicting mentalities. The democratic aspect of leadership led the leaders to act as Messiah who acted to transform the organizational culture by incorporating the works of all the other employees. This helped to improve the productivity of the organizations and also of the people at the different levels to enhance organizational productivity. Further the Messiah approach also helped in improving the loyalty parameter of the employees through the cultivation of an interactive sphere. (Western, 2007, p.105-106). Similarly another form of leadership style also applicable in the said context is the ‘Eco-leadership’ wherein the leaders incorporate the views and operational potencies of the workers pertaining to different levels for fulfilment of organizational goals. (Western, 2008). In view of the above discussion the case of the Japanese automotive company Toyota can be examined which reflects potential organisational change to help the organisation compete effectively with the external competitors. Organizational culture enabled at Toyota helped in rendering effective training to the different stakeholder groups like customers and suppliers to help in the fulfilment of organisational goals. Organizational leadership generates transformation in the cultural patterns of the concern through the creation of an interactive environment wherein the people of the concern are given space to interact with the managers to find effective solutions to potential business problems. Democratic leadership patterns followed in the organization help in generating a collaborative business sphere which helps the employees to enhance on their knowledge and skill enhancement. Further business leaders in the company also feel that maintenance of proper inventory levels in the organization helps in enhancing the cash flow position of the company. This category of ‘transformational leadership’ enabled in the concern helped the company better up on both the revenue and market share in the Japanese market. Management leadership at Toyota also generates process innovation in the company through the mode of continuous enhancement or Kaizen. Such transformation enabled in the concern helped to gain improvements in the organizational and operational productivity. (Hino, 2006, 59-61, 78-80). Contrary to the above transformational process another transformational process which is currently under debate is the autocratic management style wherein the business managers endeavour to dictate their own decisions over the employees. It is observed that the system of autocratic leadership practiced by one organization focused on reduction of productivity owing to the elimination of a team work environment. Practice of independent management styles in the organization though helped in enhancing the productive atmosphere of the concern yet it reduced the motivation level of the employees. However the authoritative styles in the organizational transformational process is considered effective in certain cases where close monitoring of the performances of the employees are to be conducted in accordance to the transformation rendered through incorporation of innovative practices. (Alas, Tuffel & Tuulik, n.d., pp.63-64). Again another major transformation that was brought about in the organizational processes was the rendering of enhanced use of information technology in the business processes. This enhanced use of information technology helped the employees of the organisations to perform more effectively in a flexible work sphere. Employees working on such flexible parameters gained huge contentment for which the paradigm of loyalty to such companies also rightly enhanced. On the other hand the business operating through such paradigms became able to reduce its operational cost while also gaining a large number of employees who could work from home to generate increased productivity. Further again the enhanced use of such information technology also helped the business units to widen their sphere of business to move into newer paradigms which helped in rendering further customer service. However the organizational transformation brought about was defied by some people who were against such innovative workplace practices. Some people also reflected that the pattern of flexibility rendered helped a certain working population to gain the increased advantage of the situation at the cost of others which led to organisational resentment. Again it can be seen that the business organizations which had encouraged the people to take resort of the flexibility programs had to tighten the monitoring paradigm in order to render fulfilment of the organisational objectives. Rendering of flexibility programs in the organizational framework is also found to reduce the practice of working in teams which previously was helping the concern to solve complex business problems. Satisfaction level of the workers increased through such methods helped the firm to gain large amount of productivity from the employees. Business Corporations also expanded their wings to offshore areas through the enhanced use of information technology in the business processes. (Brown, 1999). Rendering large amount of transformation to the organizational structures however led to the growth of employee resentment in some quarters. Organizational changes brought due to the rise of deregulatory practices with also mergers and acquisitions led some people to openly revolt against such. This practice led to the downfall of organizational productivity as large number of employees resorted to issues like increased absenteeism and spreading of rumours within the concern. Organizational transformation brought about if not properly administered can lead to large amount of disruptions in the organizational framework which mainly happens due to the rise of fear in the minds of the employees. These employees who tend to feel insecure to such organizational changes start spreading erroneous information along different quarters leading to rise in attrition levels in the organization. This rise in attrition levels in the organizations concerned makes the business suffer from loss of potential employees who would have enhanced the productivity parameter of such. Even some of the employees were noticed to suffer from heavy mental and physical strain owing to such facts. Thus the organizations also greatly suffer from increased health costs owing to such uninformed transformational processes in the industries. (FEAP Newsletter, n.d.). Analysis Keeping in tune to the above events it must be analysed of how to potentially combat the ill effects of such organizational transformation processes. Firstly the employees concerned are required to render an open mind to such organizational changes and must endeavour to make the best use of such to enhance skills and productivity. Secondly the employees must be trained by the managerial heads to remain flexible to rightly adapt to the organizational and external changes. Thirdly the employees must also be encouraged by the management team of the concern to take part in group efforts to reduce organizational tension. Taking part in group work would help the employees and the organization as a whole to improve on skill and knowledge base. Fourthly the employees must be also encouraged to render patience for gaining adaptation to such organisational changes. Fifthly the employees must be trained by the managerial team to manage the wrong information circulated along by some people and identify the miscreants thereof. Finally in the sixth case the managerial team must endeavour to incorporate special health and yoga programs to help the employees reduce the stress factor gained owing to such organisational change framework. (FEAP Newsletter, n.d.). The key to the right organizational transformation process is the enhancement of group effort. Through high amount of group effort the workers can effectively divide the whole task into small units and thereby work together to accomplish the stated objective. In such exercises optimal utilisation is enabled both for the human and technological resources which thereby enhances the productivity of the task performed. However the people working in groups tend to reflect potential conflicts owing to difference of opinion among themselves. Thus the organizational managers need to closely monitor the group efforts and psychology of people working in the groups to enhance the dynamism of the groups. (French, Rayner, Rees & Rumbles, 2011, pp.430-431). In fact, the dynamism is observed to be a force which helps in enhancing the group synergy through the optimal use of human and technological resources and cultivating a strong organisational psychology. Effective teamwork is also considered to be the by-product of strong interpersonal relationship among the group individuals which is effectively enhanced through development of group psychology. Strong interpersonal relationship among the individuals and development of the interactive sphere in the organisation helps in cultivating a strong motivational environment for the attainment of organisational objectives. (Vries, 2004, p.184). Organisational managers need to also handle the negative emotions emanating from the groups owing to changes brought about in the organisational system. Thus the group managers must endeavour to streamline the group synergies and energies flowing out to the negative side to change their pathway and help in adapting the changes rendered. The different organisational groups further expand through the further incorporation of newer team members. These new team members must also be rightly trained by the managerial team to firstly adapt the organizational culture and also to perform effectively operating in the changed environment. (French, 2001, p.487). Conclusion – alternative courses of action The organizational managers can take other courses of action other than those listed above to rightly enhance the organizational transformation process. In that the managers of the company incorporating the change management can invite managers from other companies which are already operating on such changed structure. In fact such activities would help the organization to enhance their relationship with the potential competitors in the market and also to create motivation among the organizational workers to perform effectively to enhance their position. Further the managers can also take resort to practices like alteration of role players which helps in reduction of mundane work relationships. Alteration of roles in the organization by shifting people from one department to another would also help in rendering innovation in the operational framework and thereby helping the people to perform more effectively in the change scenario. Similarly while introducing newer work systems and technological and manufacturing systems special emphasis can be rendered by the organizational leaders to produce exhibits or models which would help the people to gain the feel of such. Interaction among the organizational teams can be further enhanced through organization of forums where the internal people along with other stakeholders can jointly discuss the business problems. Negative psychology of the team members and other stakeholder groups can also be minimized through such actions and group synergies can be regulated to gain control of the changed situation. These alternative courses of action can also be taken by the management body which would further help in creating a collaborative work atmosphere in the concern. Action plan – vision The organizational managers must also endeavour to change the organizational vision and mission objectives to help in effectively adapting the change culture. Development of organizational vision would help the people gain a better insight of the change process through which they can effectively design their ideologies to perform in an effective manner. Similarly the organizational groups can also be enhanced through the recruitment of skilled workforce which would help in crafting an innovative work culture in the organization. Again the group efforts can be further developed through the development of the interactive sphere by rendering some innovative introduction process. Visionary elements enhanced would also help in enhancing the productivity of other stakeholder groups like suppliers and investors. These organisational groups tend to cultivate an elevated feeling about the organisational systems for change in vision and mission elements. Henceforth these people also collectively try to enhance the business performance which has been envisioned by the managerial team. Similarly the performances of the internal people can be further enhanced by organising visits to potential industries. The visits organised by the management team helps in cultivating a better understanding of the work environment of the potentially strong companies and thus help the individual employees to perform better. Again the interactive sphere in the organisation can be further used to encourage the employees to venture into newer organisational areas and take resort to innovative work systems. This helps in cultivating higher amount of organisational innovation and rightly enhances the change process. References Brynjolfsson, E., Renshaw, A., & M. Alstyne. (1997). The Matrix of Change: A Tool for Business Process Reengineering. [Online]. Available At: http://ccs.mit.edu/papers/CCSWP189/CCSWP189.html. [Accessed on May 4, 2011]. Kamoche, K., Cunha, M. & J. Cunha. (2002). Organizational improvisation. Routledge. Simic, I. (1998). Transformational Leadership-The Key to Successful Management of Transformational Organizational Changes. [Pdf]. Available At: http://facta.junis.ni.ac.rs/eao/eao98/eao98-06.pdf. [Accessed on May 4, 2011]. Weick, K. & R. Quinn. (1999). Organizational Change and Development. Annual Review Psychology. Volume 50,pp.361-386. Chawane, T., Vuuren, L. & G. Roodt. (2003). Personal Change as A Key Determinant of the Outcomes of Organisational Transformation Interventions. SA Journal of Human Resource Management. Vol. 1, no. 3, pp.62-76. Available At: http://www.sajhrm.co.za/index.php/sajhrm/article/download/24/24. [Accessed on May 4, 2011]. Harris, D. (2006). CIMA Learning System 2007 Integrated Management. Butterworth-Heinemann. B.P. Sinha. (1978). The Nurturant-Task Leader. Concept Publishing Company. Western, S. (2007). Leadership: a critical text. SAGE. Western, S. (2008). Leadership A Critical Text. SAGE Publications. Alas, R., Tuffel, K. & K. Tuulik. (No date).Leadership Styles During Transition in Society. [Pdf]. Available At: http://www.isma.info/dosyalar/447856-65.pdf. [Accessed on May 4, 2011]. Hino, S. (2006). Inside the mind of Toyota: management principles for enduring growth. Productivity Press. Brown, B. (1999). The Mobile Worker in the Flexible Workplace. [Pdf]. Available At: http://www.calpro-online.org/eric/docs/tia00078.pdf. [Accessed on May 4, 2011]. FEAP Newsletter. (No date). Managing Organizational Change. [Online]. Available At: http://www.healthsystem.virginia.edu/internet/feap/newsletters/managing-org.-change.pdf. [Accessed on May 4, 2011]. French, R., Rayner, C., Rees, G., & S. Rumbles. (2011). Organizational Behaviour. John Wiley and Sons. Vries, M. (2004). Organizations on the Couch: A Clinical Perspective on Organizational Dynamics. European Management Journal Vol. 22, No. 2, pp. 183–200. French, R. (2001). “Negative Capability”: managing the confusing uncertainties of change. Journal of Organizational Change Management. Vol. 14, no. 5, pp.480-492. Read More