Impact Of Organizational Change On The Workplace Change

The electronics and media giant Sony was struggling through the late 1990s and early part of the 21st century. With each disappointment, it seemed that Sony’s management launched another restructuring of the company. By 2003, commentators were beginning to ask whether restructuring was part of the solution or part of the problem. How should Sony be managing its strategic renewal? Introduction For the first quarter ending 30 June 2003, Japan based Sony Corporation (Sony)2 stunned the corporate world by reporting a decline in net profit of 98 per cent. Sony reported a net profit of ¥9.3 million compared to ¥1.1 billion for the same quarter in 2002. Sony’s revenues fell by 6.9 per cent to ¥1.6 trillion for the

Change is an ongoing and never-ending process of organizational life. The intensity of organizational change can range from the nominal to the radical. As Clark, Gioia, Ketchen, and Thomas (2010) mentioned, three degrees of change intensity are distinguished according to the amount of

Organizational change is any action or set of actions resulting in a shift in direction or process that affects the way an organization works. Change can be deliberate and planned by leaders within the organization (i.e., migrating from legacy technology to new improved Internet Protocol infrastructure), or change can originate outside the organization (i.e., new government regulatory process) and be beyond its control. Change may affect the strategies an organization uses to carry out its mission, the processes for implementing those strategies, the tasks and functions performed by the

First let’s look at defining change and the complexities that exist associated with it. As defined by Small Business Chron, “organization change is about

Philips and Matsushita add together more than two hundred years of history in the high technology consumer electronics industry. During this period both companies followed contrasting strategies and experienced disruptive changes in its environment forcing them to review, adapt and implement new corporate strategies. The following case synopsis focus on how these companies developed different organizational capabilities, and how the quality of implementation and control affected their performance in the long run.

Change management is guiding teams, individuals or an organization through a series of changes to move from the current state to the desired state. During this transition, the goal is to empower the people involved to embrace the changes and the process (Bassey, Solomon, and Omono, 2014). Management of change significantly contributes to its success. Change can be influenced by both internal and external elements. It can appear in different ways including a change of management, policies, organizational structure, objectives, business climate, employees and operational location. Whatever the reason behind the change, the aim of change management is to ensure it does not have an adverse impact on the organization or its

Organizational change is a widely encompassing process which necessitates application of competencies to effectively manage. There are internal and external factors that impinge on the performance of organizations which provide the impetus for efforts to change. Organizational change is defined by Chen, et al. (n.d.) as “a process in which an organization optimizes performance as it works toward becoming its ideal state” (p. 2). In its simplest form, the meaning of organizational change was described as “a process in which a large company or organization changes its working methods or aims, for example in order to develop and deal with new situations or markets” (Cambridge University Press, 2015, p. 1). From the definitions, it could be deduced

Sony has the vision to lead the AV/IT industry by providing the most cutting edge innovations in all emerging and existing markets. Sony prides itself in leading the industry as a benchmark setter for research and development, while providing products at the most economical price for consumers. Part of the mission and vision of Sony is to dominate the market by streamlining its global operations in order to reduce costs, increase efficiency and maximize profits for the shareholders. The new comprehensive marketing and management strategy will focus on five main initiatives in order to achieve Sony’s mission to be the leader in the technology industry and provide the most return for both customers and stakeholders. The five initiatives focus on aggressively strengthening Sony’s core

The business strategy used for our company, Sony and its PlayStation, is differentiation. PlayStation differentiates its product in many ways. First it is the only gaming console to adapt to blu-ray technology, something that no other gaming console can say. Its sleek style and looks make it the most visually stunning system to date as well as the graphics are better than any other system. Its ability to reach the entire world and provide so many different uses in such a convenient and easy way is head over heels better than any other gaming console in the world.

By any objective measure, the amount of important, frequently distressing, change in organizations has grown enormously over the last two decades (Kotter, 1996). Jeffrey M. Hiatt, CEO of Prosci Inc., (as cited by Gibson, Ivancevich, Donnelly & Konopaske, 2009, p. 481) explained, “thirty years ago, a fortune 100 probably had one or two enterprise wide change initiatives going on; today that number is probably between 20 and 25.” The speed of global, economic, and technological development makes change an inevitable element of organizational life. Change is a pervasive, persistent, and permanent condition for all organizations (Gibson, et al., 2009).

Sony is a company that needs very little introduction, it’s a global leader in many different aspects of the international market. Its pure size means that they are widely respected and their revenues prove to be a major boost to any countries GDP. This document will look at how Sony began, structures its organization and the hand it’s had to play in the political scene.

Taking both organizational and employee perspectives into account, Armenakis and Bedeian (1999) have reviewed major research publications on the theory of organizational change from 1987 to 1999. To set a basis for selecting from the vast number of the available material, their study was concentrated on those researches focusing on the fundamentals of organizational change dynamics. The researchers acknowledge the effect of the extent of their resource selection on the literature review outcome, stating that their choice of subject area will provide a deeper understanding of the existing approaches governing organizational change. In order to make their research manageable,

There are 2 mains problems with Sony’s way of managing R&D activities. First, the lack of coordination among divisional managers due to a silo structure. This insufficiency of coordination led to bad allocation of resources in R&D for improving existing products. Moreover, different divisions and products groups under the decentralized structure have been allowed to pursue independent agendas. So, different labs worked on the same project. It is fair to say that Sony wasted resources and duplicated efforts for nothing. Secondly, even if we don’t care about the first problem, Sony’s R&D efforts have simply been less effective than

Change is a phenomenon which is inevitable in every aspect of human life and it is always constant despite the fact that people do resist change due to some reasons. Organizational change is also a phenomenon which cannot be avoided by organization, because internal and external factors exist which can cause an organization to change. According to Mills an et al (2008) organization change can be defined as an alteration of a core aspect of an organization’s operations. Theses core aspects involve culture of the company, the technology used or the structure of the organization. This report will evaluate the impact of organizational changes.

Sony Corporation is a Japanese based technology company. Sony specializes in consumer and professional electronics, gaming, entertainment, and financial services. Each of these branches has a specific strategy it must adhere to in order to be successful. The reason for having different strategies for each branch is to conform to the demands for each specific market. If their strategy can’t keep up with market demand than the business will fail. Sony’s mission statement is “A company that inspires and fulfils your curiosity.” Sony’s vision statement is “Using our unlimited passion for technology, content and services to deliver groundbreaking new excitement and entertainment,as only sony can”.