Analysis
The first approach to organisational change in the Oticon case happens within the understanding of continuous improvement: “When Kolind arrived in 1988, he took a number of swift and decisive actions that allowed Oticon to once again become profitable.” (IMD international (2005) p. 2). One could think, that Kolind wanted to change the organisation in small steps to avoid taking high risks. He laid off 15 % off the workforce and took control of all investment decisions. As a result, Oticon had fewer employees to pay, less costs and in return, Oticon’s profitability increased but sales still stalled. This organisational change did not work out thus it only focused on the short term results. Oticon did manage to return to profitability,
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3). He is preparing for the change (MERE). Second, the changes were made “We removed the entire formal organisation. We took away all departments.” (IMD international (2005) p. 4). The organisation transformed from being unmovable to be flexible and mobile (IMD international (2005) p. 1). Third, Oticon was ‘refreezed‘ with all the changes implemented. A whole new organisational structure was created with a new value and belief system and as a project-based company. Kolind believed that change was necessary for the company to succeed: “In my opinion, you must change everything at once -- organizational structure, culture, physical settings and the very nature of work itself (IMD international (2005) .p. 4) Kolind seemed to be motivated and determined about implementing changes and thought that change itself should be the mindset for everyone in the company. A part of their belief system was: “One thing is for sure: Oticon will change. We will create a flexible organisation, where everyone realizes that the only certain thing is change.” (IMD international (2005) p. 1). A reason for the successful change could be the specified focus on the formal structure. Kolind changed location, removed all doors, never allowed the use of paper and made all information within the company available for everyone. In other words, he …show more content…
He knew that the core of the organisation was built upon trust, teamwork, flexibility and change without any exceptions. The whole organisation was turned upside down, every employee got the job to “´fit each employee’s capabilities” (IMD international (2005) p.5). The formal structure allowed all employees to create their best working environment which again forced the informal structure to change. Because the employees aligned their values with the company’s, the new informal structure was also aligned with the company’s formal structure. In other words, Kolind forced the informal structure, the employee’s actions and opinions and their beliefs and values, to fit the formal structures value and belief system. The changes within the formal, as well as the informal organisation structure, could have been a necessary factors in order to successfully help the proceedings of restructuring the
In conclusion, the statement at the start of the chapter that “if we only draw upon one particular frame, then this will take us away from thinking about what is going on from an alternative perspective” reminds us as manager leading change in an organization to not just jump to the first idea on how to make change. We need to be able to think outside the box and make a change in how we react to change and what are first instincts of action would be. Having different perspectives in how to go about change will allow managers to really engage and figure out what the best plan of
As the rapid development of modern economy and the increasingly fierce market competition, the demand of how to manage organization change is increasing. Especially for leaders in both large and small companies, the ability of dealing with change is so significant. In many case, the main reason for company bankruptcy is that leaders fail to cope with organization environment change properly. The demise of many fortune 500 companies in the 1980s and
The purpose of this book is to make us see that nearly all-operating prescriptions for creating large-scale corporate change are nothing but myths and that changes do not happen from one day to another by a miracle, the change from good to great is the result of a successful plan who
6. Organization development consultant David Nadler was interested in developing a model of how large companies cope with restructuring in a competitive business environment. With a team of consultants, he followed the restructuring process of Xerox Corporation for two years. He interviewed the CEO and the top managers at Xerox. He observed the behavior and analyzed the speeches of the CEO and the top managers. Nadler and his team collated and interpreted the information they had collected, and wrote up a detailed account of Xerox’ restructuring process,
The case deals with two major transformational organisational changes that take place within a span of 5 years in Marconi PLC. The first change process was under the leadership of Lord Simpson who took over this large diversified conglomerate in 1996 when the company was in a mature phase, already in decline. The company was under performing, had a rigid structure, lacked a clear vision and the employees had become change averse and complacent. To recharge the company Lord Simpson lead a change process with a clear vision with a growth oriented strategy, acquisition and a cultural change process for the employees. To motivate the employers to embrace the cultural change he introduced an attractive stock option plan.
Change is going in the organization. With the help of theories I can easily visualize
After reviewing and researching the literature with respect to organizational changes, I have come to the conclusion that organizations have always changed. When everything in the world is changing, organization cannot remain islands. They must change to face new challenges. Bolman and Deal (2008) claim organizations have changed about as much as in past few decades as in the preceding century. Bolman and Deal (2008) claim means that the change organizations have experienced in the last decade are almost similar to those they experience in at the end of the twentieth century.
For any business in the rapidly evolving world of business, planning and implementing successful organizational change is indispensable. Essentially, organizational change refers to a process whereby an organization strives to optimize performance in order to achieve its ideal state characterized by high performance and profitability (Côté & Mayhew, 2014). Any business would be more likely to lose its competitive edge, as well as fail to meet the demands of its loyal consumers if it doesn’t plan and implement change. Weiss (2012) emphasizes that all organizations ought to embrace change, and it’s imperative to note that successful organizational change doesn’t involve simple process of adjustments; instead it requires appropriate change management capabilities.
Al-tech Manufacturing company is in need of a change in its ability to maximize profit during a difficult market. In order for Al-Tech to make changes and pursue a goal of stable profitable company. Al-Tech is constructing change in the organization in accordance to a second-order type two transformation (Ian Palmer, 2009). During an second-order type two transformation, an organization will make alteration in order to rearrange, reduce, and reengineer the nature of the organization according to Ian Palmer, Richard Dunford, and Gib Akin second edition managing organizational change text book chapter four (Ian Palmer, 2009). Al-Tech merged with a rivaling company, Border Manufacturing, in order to maximize profit and reduce overhead
In this dynamic business environment, change is inevitable. Changes can be planned, or unintentional: depending on the driving forces behind. The major forces for change can be derived from the nature of the workforce, technology, economic shocks, competition, social trends, and world politics (Robbins & Judge, 2011). In this post the author will explain the Kotter’s eight –step approaches to managing organizational change and discuss how his company handles the planned changes in term of organization reconstruction.
The main objective of this report is to gain a better understanding of large scale organizational change. The different changes implemented by General Motors company in an attempt to cope with the economical crisis of 2008 is a perfect example of this concept.
Introducing organisational change is often hard, the main reasons for that can be variation in perceptions of the employees, fear of disruption or failure and underlining the right approach to apply change. Then even if the change in a specific organisation is projected successfully there is still lot to be done to manage it in an appropriate way (Oakland, 2007).
In order to survive and prosper in a rapid changing environment of business world, organization is often required to generate fast response to changes (French, Bell & Zawacki, 2005). Change management means to plan, initiate, realize, control, and finally stabilize change processes on both, corporate and personal level. Change may cover such diverse problems as for example strategic direction or personal development programs for staffs. In this
Formalization is characterized by creation of procedures, rules, and tasks for staffs, organizational groups, teams and the institution as a whole by managers as illustrated by the writer McLean. The author’s argument that managers have to develop initiatives to encourage buildup of trust among employees is true. Since through this, favorable atmosphere between workers and management is created that enables efficient and effective communication (McShane & Glinow, 2015). Significantly, the writer’s illustration of high level of trust among personnel and administration leads to harnessing of non-rational measures of organization is untrue. This is because, increased level of trust between workers and their managers
Week 3, the lecture on Managing Change describes organizational changes that occur when a company makes a shift from its current state to some preferred future state. Managing organizational change is the process of planning and implementing change in organizations in such a way as to decrease employee resistance and cost to the organization while concurrently expanding the effectiveness of the change effort. Today's business environment requires companies to undergo changes almost constantly if they are to remain competitive. Students of organizational change identify areas of change in order to analyze them. A manager trying to implement a change, no matter how small, should expect to encounter some resistance from within the organization.