WeaveTech - High-Performance Change - Coursework Example

It is recommended that WeaveTech should not layoff 20% of its managers but should instead expand its business by incorporating a new private-consumer apparel department. The expansion would then entail hiring more managers with a ‘private sector philosophy’ to steer the impending change towards targeting the private-consumer apparel market. This is because; WeaveTech needs to expand its market focus to include the private-consumer apparel market and not overhaul its business model completely. WeaveTech would benefit more by combining both the private-consumer and the government-contract markets, since such focus would help WeaveTech hedge against the risks associated with the overreliance on a single client or single-market revenue stream (Salaman, 2002).

WeaveTech already has a working business model targeting the department of defense, which out to continue regardless of the changing market environment that might see this market shrink. The low market demand in the department of defense is already being compensated by the high price at which WeaveTech sells its products to this client (Beer & Swiercz, 2015). This simply means that even though the organization needs to expand its focus to the private-consumer apparel market, it should not disrupt the existing government-contract market, which the organization has relied on entirely throughout its operational history. Therefore, WeaveTech should maintain its current management structure to continue the historically productive relationship with the department of defense, while expanding its market to the private-consumer apparel market through hiring a new workforce specialized in this business area.

Further, WeaveTech should avoid implementing the 20% managers’ layoff. The organization already has a long-standing culture of ‘no layoffs’ for its employees, which is highly likely to taint the morality and commitment of the rest of the employees to the organization, should the organization lay down 20% of its managers. Therefore, to safeguard its valuable culture and at the same time maintain the morale, loyalty and productivity of its employees that has enabled the company lower its employee absenteeism to only 0.2%; WeaveTech should maintain its current organizational structure intact. Additionally, to avoid a protracted legal battle with the laid-off managers, WeaveTech should only hire more workforces to steer the organization in the intended dimension.

Conclusion

Changing an organizational structure and business model is at times inevitable, due to the ever changing global business environment. Nevertheless, if such change puts an organization at greater risks of losing the existing markets, revenues and disrupt the employee morale and productivity, such organizational change can be avoided. It would be more beneficial to expand the business as opposed to changing its structure and model, risking its current operations, employee productivity and revenue generation.