Category: Organization Development

Organizational development (OD) is an integral part of any enterprises’ work wishing to remain successful and competitively capable. OD is a scientifically based process that focuses on various aspects and work processes to improve the organization’s effectiveness (van Vulpen, 2020). To make the necessary changes, interventions are carried out – several activities to implement the desired changes. Given the importance of such changes and the fact that they should be based on scientific evidence, OD interventions require careful preparation and thought-out planning and implementation.

Preparation for OD interventions includes developing a strategy, in particular, such steps as:

• diagnosis,
• determining the structure of interventions,
• choosing and establishing sequencing,
• taking into account the dynamics of intervention,
• considering the expected result.

If a problem is identified or the administration wants to make a change, it is necessary to find out whether the desired shift is suitable for the work of the organization. Moreover, it is crucial to determine employees’ readiness and calculate the necessary time, resources, and efforts. When defining the structure of interventions, it is essential to analyze such aspects as stakeholders, clarity of purpose, the realism of expectations, employees’ readiness to study and work together.

The sequencing of interventions also depends on several crucial factors. For example, it is affected by potential efficiency – if an organization needs to motivate employees to make changes, this OD intervention should be the first. The manager must also view what sequence will keep the resources, contribute to the rapid speed of changes, be more relevant to the organization and create minimal stress for employees. According to French and Bell (1999), interventions have different dynamics depending on their types, such as the dilemma intervention, respective intervention, and other kinds. It is critical to ensure that the selected type matches the desired change. Finally, intervention depends on the expected result – for example, the goal may be to educate employees or increase motivation and efficiency.

Thus, OD interventions are designed to improve and optimize the enterprise’s operation through a number of actions. In order for the intervention to be effective, many critical factors must be taken into account in its planning and implementation. In particular, it is crucial to consider the circumstances, goals, and dynamics. Careful preparation will determine the strategy, structure, time, and resources required, making intervention fast and beneficial.

References

French, W. L., & Bell, C. H. (1999). Organization development: Behavioral science interventions for organization improvement (6^th ed.). Upper Saddle River, NJ: Prentice Hall.

van Vulpen, E. (2020). What is organizational development? A complete guide. Web.

Introduction

• Apex furnishers in one of the leading retailer of furniture and furniture related products in the world.
• The company was started off by John Keane in 1962 as a solo venture in Atlanta, Georgia.
• During its early years, it concentrated on furniture assembly and repair.
• Later on it embarked on the selling and distribution of furniture, a venture that led to the growth and development of the company up to date.

John Keane started off the company on 1st March 1962. He used his mother backyard as the workshop of his small business. With increased request for orders and the desire to expand, Keane transformed the business from a repair shop to a local furniture manufacturing workshop.

• From its humble beginnings in Atlanta, Georgia, the Apex Furniture is now found in over 20 countries, mainly in America, Europe and Asia.
• It has 196 stores world wide with a workforce of approximately 97,200 individuals.
• The company has prospects of opening additional stores in Africa, South East Asia and China.
• This is due to the presence of emerging markets in these regions.

The founder of Apex Furnishers, John Keane had the dream that his company will have stores located all over the globe. Due to this fact, the management of the company has always strived to expand its activities into new markets. To achieve this, several market entry strategies have been used. In some situations, these strategies have been fruitful while in others, they have failed.

• The company is quite stable.
• In 2011, it recorded a net profit of $4.6 billion.
• On that year, its total sales amounted to $31.6 billion.
• Having entered the stock market in the early 1980s, Keane does not have full control over the company. However, he is the majority shareholder.

The company required a solid financial backup in order to expand into new markets. During the early days, Keane was against the idea of entering Apex Furnishers into the stock market. However, due to stiff competition and strict regulations from the state and financial institutions with regards to provision of loans, the company had no option but to join the stock market in 1983.

Since then, the company has been recording desirable profits. However, the global economic crisis that has been experienced since 2008 has had tremendous impacts on the its profits. With proper planning, the company has however managed to be profitable.

Historical Data

• The organization and management practices that are practices at Apex Furnishers are highly influenced by the founder of the company, John Keane.
• The company is mission driven. Its main aim is to provide its customers with state of the art furniture. This is furniture that is of a great design, high quality but affordable to all individuals.
• To ensure that the goals and objectives of the organization are achieved in the short run and in the long run, the founder ensured that all the employees at the firm adopt the cause of the organization.
• Organization structure and culture are essential aspects that ensure the effectiveness and efficiency of an organization and its sustainability in the short run and in the long run (Ritter, 2000).
• Apex Furnishers has implemented a decentralized organization structure. However, the views and needs of low level employees have always been neglected.
• This has resulted in labor conflicts between the management and its employees.

Over the last three years, the employees of Apex Furnishers have gone on strike on four different occasions. They have demanded for better pay, conducive working condition, union representation and the adoption and implementation of IT in their operations in order to reduce their physical burden.

• The recurring feud between the employees and management has resulted in a decline in the services and output of the organization.
• Since most of the goods available in their stores are not manufactured in-house, the quality of products has remained the same.
• However, the quality of services within the organization has declined.
• This factor also played a critical in reducing the overall profits of the company within the last few years

Due to the conflict between the management and employees, the services offered at Apex Furnishers shops has declined. This is due to the dissatisfaction that these employees get. This has in turn reduced their motivation and performance (Sobel, 2005)

Structure Data

• The management strategy at IKEA has been and still is:
  1. Formal
  2. Nonhierarchical
  3. Based on team work (Biddle at al, 2003)
• All the employees at the company have respect for one another.
• There are is no special perks for managers.
• Titles and privileges within the organization are a taboo.

Employees at all level of the organization have respect for one another. It is due to this fact that they even refer to each other by their first names and not sir names. Titles like ‘sir’ or ‘boss’ are not used at all.

• The company highly values creativity from its employees.
• It focuses on recruiting young individuals and training them within the system rather then employing highly qualified personnel.
• Employees are motivated by the passion for the work and the conducive working environment rather than high salaries and benefits.
• Employees are entitled to a 30 day leave annually and 14 day sick leave.
• Additionally, employees are given entertainment and holiday allowances.

During the times that employees are on leave, they still receive their normal salaries. Additionally, they also get leave pay.

• The employees work together as a team and maintain close ties with one another.
• Due to this fact, they have been able to come up with strategies and ideas of improving their products and services.
• In 2003, the company joined the stock market.
• The company has thus been facing the pressures of profit realization from stakeholders.
• This has resulted in its vigorous expansion activities.

The fact that employees work together as a team has increased the bond between them. This is essential in determining the production rate of the organization (Sobel, 2005).

Since the company joined the stock market in 2003, it has expanded rapidly into new markets. This is due to the availability of financial resources.

Organization Functioning

• Apex Furnishers has always strived to be the leading furniture retailer in the world.
• To achieve this, the company has always been alert on internal and external factors that may affect its operations.
• It has focused on its strengths, improved on its weaknesses, maximized on its opportunities and has implemented strategies to eliminate its threats.

For a company to be sustainable in the short run and in the long run, it needs to be alert on all factors that may affect its operations. It is due to this fact that companies must conduct a SWOT analysis (Ritter, 2000). For Apex Furnishers, the results of the analysis have always revealed that it stands on a competitive advantage over its rivals. This is a good indicator of success in the short run and in the long run.

• With the help of its decentralized organization structure, communication and passing of information within the organization flows within all levels of the organization.
• The company also gives its employees the opportunity to further their knowledge through seminars and workshops.
• Scholarships are also provided.
• Knowledge and information is essential as it will result to the organization being able to understand the market effectively and meet the needs and demands of consumers.

Information is essential as it gives the management the opportunity to analyze the performance of the firm. This is achieved through internal and external analysis. it is also essential for the staff to have up to date information with regards to the market status and trends. This gives them the chance to provide better services to customers.

• Through its strategies, Apex Furnishers has always enjoyed a greater market share.
• The main strategy that Apex Furnishers has is the identification of its target market.
• The company has always been targeting middle class individuals who are in the 20s and 30s.
• The configuration of Apex Furnishers stores also ensure that customers spend as much time as possible and make a lot of purchases while there

Through its strategies, the actions of Apex Furnishers has led to the success that the company is currently enjoying.

• The stores are located outside town to avoid congestion, have multiple products in a single section, have a day care center to carter for the customer`s children, ample parking and a restaurant.
• The products at Apex Furnishers are readily available unlike other companies where a customer has to wait for several weeks for the arrival of their products.
• For convenience, Apex Furnishers has a home delivery service.

Location is also an important aspect in marketing.

Attitudes and Relationships

• Apex Furnishers has an organization culture that is based on consumer satisfaction.
• Each employee at every level has a specific role to play.
• Employees thus perform the roles and duties with the aim of satisfying consumer needs.
• To achieve this goal, the organization has an attitude that fosters team work.

The attitude that an organization has with regards to task agents is essential in the determination of the status of its operations. In the quest of satisfying its consumers, Apex Furnishers has adopted a team work approach. This has ensured that the operations within the organization are run effectively and efficiently.

• The company has also being against merges and acquisitions.
• The management of the company believe that the company can grow, expand into new markets and flourish on its own.
• With its consistency with profitability, the shareholders of Apex Furnishers have backed up the decision of their managers.

In the course of operating an organization, mergers and acquisitions are at times helpful in assisting a company succeed in the market. Despite this information, the management of Apex Furnishers have faith on their corporation. Due to its strong brand name and brand loyalty, the organization has managed to maintain its customers during the tough economic times that we are currently experiencing and still be profitable.

Analysis

• Despite the fact that the company has labor issues, its operations are still effective and efficient.
• The profits that were reported by the company in 2011 were the highest in the furniture industry and one of the highest to be reported by a company in the world.
• The company has also been exhibiting favorable financial trends over the last 10 years. This is an indication of stability and a good base to project the future sustainability of the company.
• The company also holds a large market share.
• Its target market comprises of enthusiastic individuals with a strong purchasing power and unique taste and preference.
• The buying power of Apex Furniture target group is characterized by brand sensitivity and identity, high volume purchases and price sensitivity. To meet their needs, Apex Furniture has a variety of products that are of high quality and pocket friendly.
• The substitutes of Apex Furniture products are either of a lower quality or are highly priced. This gives the company an upper hand of winning, maintaining and attracting new customers

The fact that Apex Furnishers has high quality products and a favorable pricing mechanism, it has been virtually impossible for rival companies to come up with substitute products of a similar or superior quality. This has enable Apex Furnishers to command a large market share in the furniture industry.

Conclusion

• From humble beginnings, Apex Furnishers has grown to become the leading furniture retailer in the world.
• Apex Furnishers therefore needs to conduct a market survey to determine the needs and requirements of its customers.
• The company also needs to embrace and apply technology, in its operations; from management to manufacturing.
• This will guarantee the sustainability of the company in the long run.

References

Ritter, L.S. (2000). Principles of Money, Banking, and Financial Markets. Addison-Wesley, Menlo Park

Sobel, J. (2005). A Theory of Credibility. Review of Economic Studies, 52 (6), 557-73.

Though important, the organizational development practice (OD) has not been well defined in scholarly work and practice. Consequently, it is difficult to define the roles of the practitioners and consultants in this field (Brown & Harvey, 2015). In particular, OD goes beyond the traditional boundaries of coordination and facilitation of departmental functions.

Nevertheless, it is worth noting that the area is increasingly becoming important in modern organizational and public management. It requires effective, knowledgeable and dedicated OD professionals and consultants (Brown & Harvey, 2015). Therefore, the point of interest is to address the question “what are the roles and styles of an OD practitioner/consultant?”

Scholarly literature has used different types of descriptions for the practitioner, including advisor, coach, designer, facilitator, consultant, partner, diagnostician, expert, process specialist and a number of others (Cheung-Judge & Holbeche, 2015). It is worth noting that these roles can be practiced as an external consultant or within the human resource department or section (Cheung-Judge & Holbeche, 2015).

Regardless of the description used, the reality is that the roles of an OD practitioner are varied and its primary aim is to help clients improve the effectiveness of developing their organizations. In addition, the practice is humanistic in nature, which makes the roles and practice relational based (Cheung-Judge & Holbeche, 2015).

One of the main roles of the OD practitioner in the modern context is to aid organizational leaders to foster effective organizational alignment (Brown & Harvey, 2015). In this case, they act to help an organization become responsive to the environment in which it operates. The OD practitioner or consultant must be part of the team that aligns the original culture as well as capabilities to the company’s strategic interests (Brown & Harvey, 2015).

In facilitating organizational alignment, the OD practitioner must work closely with experts involved in strategic planning. This process involves formulating an OD plan that acts as part of the organization’s strategic plan. In simple terms, the plan developed by the OD practitioner has the intentional change efforts that the organization requires to successfully and effectively executive its strategy (Cheung-Judge & Holbeche, 2015).

Secondly, the OD practitioner plays significant roles in helping an organization detect and understand any gap that hinders successful growth, development and performance (Brown & Harvey, 2015). The practitioner must strive to obtain adequate information relating to the organization’s history, culture, performance, relations and other aspects (Cheung-Judge & Holbeche, 2015).

Using this information, the practitioner is able to help the organization realize and understand gaps, problems and disparities that hinder the achievement of its strategic objectives. For instance, the OD can use this information to determine the causes and origins of low employee motivation and engagement or negative perception of the work and organization (Cheung-Judge & Holbeche, 2015).

To play this role, the practitioner must facilitate sessions. Employee surveys, organizational assessment and other means of gathering information are used in OD practice to obtain as much information as possible in order to develop a comprehensive plan for facilitating change (Brown & Harvey, 2015).

It is also important to note that the OD practitioner helps in facilitating behavioral change in an organization. They are the major players in supporting and facilitating change management (Cheung-Judge & Holbeche, 2015). The work requires implementing strategies for the organization, the managers and their employees to change their perceptions and behavior in carrying their tasks in order to achieve their goals and objectives (Brown & Harvey, 2015).

References

Brown, D. R., & Harvey, D. (2015). An experiential approach to organization development. Upper Saddle River, NJ: Prentice Hall.

Cheung-Judge, M., & Holbeche, L. (2015). Organization Development: A Practitioner’s Guide for OD and HR. New York: Kogan Page.

Carlos Ghosn is a businessperson who presently acts as the Chairman and Chief Executive Officer of the Paris-founded Renault. Additionally, Carlos acts in the same capacity at the Japan-founded Nissan (Millikin & Fu 2005). These companies jointly generate more than 10 per cent of cars sold internationally.

Carlos is as well the Chairman and Chief Executive Officer of the Renault-Nissan coalition, the tactical affiliation administering both companies via distinctive cross-shareholding accord.

For coordinating one of the most violent downscaling movements and leading the turnabout of Nissan Company at the verge of bankruptcy, Carlos attained his celebrity standing. Currently, Carlos ranks amongst the 50 most renowned individuals in international business and politics.

In 1996, Carlos was employed as the administrative vice president accountable for sophisticated research, purchasing, car improvement and engineering, and management of Renault Company (Yoshino & Fagan 2003). Renault acquired around 37% stake of the Nissan Corporation in 1999.

While continuing with his capacity at Renault, Carlos was hired as the CEO of the Nissan Company in mid 2001. Carlos met a debt of 20 billion dollars that the Nissan Company had not cleared.

Additionally, just three of the forty-eight models of the Nissan Company were making a profit and undoing the falling fate of the company was deemed unattainable. Carlos promised his resignation if the company failed to attain a profitability status by the close of that year.

He also affirmed that Nissan could have cleared all it debts by 2005. He disregarded business etiquette in Japan and went ahead to cut off 14 per cent of the entire workforce, closed up five plants, and sold off assets like the aerospace entity of the company.

Owing to his radical schemes, the net profit of Nissan rose to around 3 billion dollars in one year from a loss of 6 billion dollars in the previous year. Within twelve months of his 3-year turnabout scheme, Carlos managed to take Nissan back on the right course.

By the end of the 3-year period, Nissan was among the moneymaking companies in the automotive industry. Moreover, the operating profit margin (prior to taxes and interests) of Nissan rose from 1.4% in 2000 to 9.2% in 2006.

Carlos initiated major structural modifications at Nissan, considerably adjusting the culture of the company (Pisapia 2011).

He stopped dependence of Nissan on an intertwined web of suppliers (keiretsu), modified the official language of the company from Japanese to English, and encompassed officials from Europe and the US in major international policy for the first time.

In early 2005, Carlos was promoted by the Renault Company to be its CEO. With his assumption of the responsibility of CEO in both Nissan and Renault, he became the first individual to head more than one company simultaneously to the extent of their being among the Fortune 500 companies.

He has maintained his dedication of establishing over a million trucks and cars every year in Japan. He has fully rebuilt every one of the earlier damaged plants making all plants attain full production. These efforts have placed Nissan past its rivals like Toyota in some markets.

While heading the Renault Company, Carlos has ensured that it remained top on the sales charts by overpowering its rivals like Peugeot and to ensure that Renault evades losing in poor performance period of 2008, Carlos cut off 4800 workforce.

In conclusion, dedication by Carlos improved both Renault and Nissan companies by making organizational change and development. The tactical partnership involving Nissan and Renault is not a unification or acquirement. Both companies are connected through cross-shareholdings accords (Segrestin 2005).

This alliance has continued to widen its scope noticeably by establishing further partnerships.

Reference List

Millikin, J & Fu, D 2005, ‘The global leadership of Carlos Ghosn at Nissan’, Thunderbird International Business Review, vol. 47 no. 1, pp. 121-137.

Pisapia, J 2011, ‘Finding the Future and Making It Happen’, Towards the Next Orbit: Corporate Odyssey, vol. 1 no. 1, pp. 55-7.

Segrestin, B 2005, ‘Partnering to explore: The Renault–Nissan Alliance as a forerunner of new cooperative patterns’, Research Policy, vol. 34 no. 5, pp. 657-672.

Yoshino, M & Fagan, P 2003, ‘The Renault-Nissan Alliance’, Harvard Business School, pp. 303-023.

Introduction

Organizational Development (OD) Specialists help businesses improve their operations and profits by providing advice and assistance. As an OD consultant, an individual can play a range of positions and styles. OD specialists should be able to deliver good results to a company. They are highly qualified and can have a significant effect on a business. They also provide the resources needed to facilitate change in organizations, despite having little control over them. The words specialist and consultant are used with the same meaning in OD (Bierema, 2020). Organizational development seeks to enhance the efficiency of the company; therefore, an OD specialist’s main duty lies in strengthening the relations with and between people and firms in order to achieve the objective. This paper will address the relevance of the problem, specific conditions for OD consulting, and an acceptable solution to the institution’s problem.

Validity of the Problem

Initial Assessment of the Issue

The first move for management should be to get a broad picture of the situation to pinpoint the real issue. Top management should consult advisors and experts to determine the type of the system that is needed (Chesson, 2018). Consultants may only meet and assess an organization’s personnel in the first stage to collect information. The consultant will work with people from various organizational levels at the initial assessment stage to obtain product information.

Data Gathering

A specialist will conduct surveys at this level to assess the organization’s environment and the employees’ behavioral issues. Interview questions, questionnaires, and related documentation are the tools that consultants may use to gather data (Singh, 2020). The consultant works with different organizations outside of the workplace to determine the organizational environment and behavioral problems that the company is facing. Surveys are used to collect data, and interviews are conducted to develop it.

Data Feedback and Confrontation

The information collected in the second phase will be circulated to work teams, who will be responsible for updating it. Any conflict areas will be resolved solely among themselves, and goals for a reform will be identified (Bierema, 2014). The data is then shared with the relevant workgroups, which are later asked to review the information. They examine the data, find the problem areas, resolve them, make a decision, and then offer reform recommendations.

Developing a Change Strategy

At this point, the consultant will recommend a change strategy. The professional tries to turn the assessment of the issue into a proper action plan with the overall aims for success, which is the basic method for achieving certain aims and the systematic strategy. The group deals with the problems of the company and prepares comprehensive plans to determine who is responsible for the crisis and how they work and when.

Unit Interference

During an OD cycle, the machine interferes with the programmed, featured system. The main objective of OD is to strengthen the structure through these scheduled events (Bierema, 2014). External consultants may be involved in design, including preparation, process management, and team building activities. The creation of a natural partnership, including managing director and subordinates, allows for the development of bigger groups consisting of many teams. In this manner, the whole organization would be included in the process.

Team Building

In the process of team building, the consultant helps the groups to focus on how they communicate with one another. Group meetings take place during the planning process and the advisor encourages members to choose how to operate together: as a community or as a team (Singh, 2020). The consultant assists them in realizing the importance of clear communication and gaining their confidence. The OD specialist should notify them about the importance of open communication and faith in group dynamics.

Evaluation

Since OD is a long process, it necessitates close monitoring in order to obtain accurate input about what happens after the program starts. This will make it easier to perform appropriate changes as needed. Critique sessions, evaluation of progress efforts, and comparison of pre and post-training behavioral trends are also successful ways to test an OD system (Bierema, 2014). As a result, the abovementioned social mechanism and the measures addressed do not apply to all organizations.

Specific Criteria for OD Consulting

Interpersonal Ability

Consultants should be able to build and maintain successful relationships with people and groups in the organization and assist them in developing the skills they need to solve existing issues. The foundation expertise is considered to be team dynamics, comparative cultural experiences, and market functions, managing the consultation process and cooperation as core skills (Singh, 2020). Successful partnerships are affected by both team dynamics and comparative cultural experiences.

General Consulting Skills

OD begins by diagnosing an agency or department to explain how it is currently operating and identify the areas for improvement. At an early stage, OD practitioners should be able to make a precise diagnosis. People should understand how to include employees in the organization in the review, as well as help them think critically and gather data (Chesson, 2018). The director should be familiar with basic diagnostic inquiries and techniques for gathering information, such as questionnaires and surveys, and evaluation techniques, such as force field analysis or qualitative means.

Organizational Growth Theory

A general understanding of organizational development is the final fundamental method that OD practitioners can possess. They should be aware of the numerous interventions available and the value of reviewing and institutionalizing transformation initiatives (Kuna & Nadiv, 2018). Most notably, OD practitioners should be aware of their functions as an OD consultant, director or specialist business consultant in the developing area of organizational advances.

Response to the Organization Regarding Their Issue

Accommodating

Accommodating involves people putting their own needs aside to appease others and maintain harmony. Smoothing or improvising can lead to a false solution to an issue and a range of emotions in the individual, from anger to enjoyment (Chesson, 2018). Accommodators are quiet and friendly, and they may serve as a martyr, troublemaker, or saboteur. On the other hand, accommodation may be helpful when one is mistaken or when a person needs to reduce losses to maintain relationships.

Avoiding

Rather than confronting a dispute, avoiders choose to disregard or withdraw. Avoiders tend to be unconcerned with their own or others’ problems. People who escape a disability expect to leave, to repair themselves without interfering, or to take responsibility for someone else. On the other hand, avoidance may be dangerous if another individual thinks the person is not interested in communicating.

Working Together

Collaboration leads to innovative ideas that address all of the parties’ issues and requirements. Collaborators identify underlying questions, evaluate theories, and obtain a deeper understanding of others’ viewpoints (Bierema, 2014). Collaboration takes time and if the connections of the parties are not important, time and effort cannot be worth the effort to find an effective solution. Collaboration, on the other hand, fosters value, confidence, and partnerships.

Conclusion

In conclusion, I discovered no direction or way to inform customers on various matters by contrasting these types and functions of an organizational leadership consultant. In seeking a consultant, the company should first decide if the specialist needs to be external or internal. Being an OD consultant necessitates mastery of consulting skills as well as ongoing education. There should always be a degree of contact between a specialist and a customer to choose an appropriate approach.

References

Bierema, L. L. (2014). Organization development: An action research approach. Bridgepoint Education.

Chesson, D. (2018). Meeting 21st century organizational challenges with design thinking. Organization Development Journal, 36(3), 73-82.

Kuna, S., & Nadiv, R. (2018). Divided we stand? Occupational boundary work among human resource managers and external organization development practitioners. Employee Relations, 40(5), 848–867. Web.

Singh, R. (2020). The ODC Practitioner. Leading Organizational Development and Change, 123–141. Web.

Diagnostic Approach

Diagnosis plays a critical role in resolving some of the issues that affect organizational members in the manufacturing units hence it can be applied successfully in addressing the problem at the Packing and Shipping department in the organization. Change should be introduced in the department to facilitate productivity and employee satisfaction. Research shows that workers are never satisfied with an organization that does not care about their needs and aspirations. Every employee is often driven by personal ambitions, such as career development and financial success. Therefore, the management has a great role to play to ensure that individual goals and objectives are incorporated into the organizational major aims (Cummings, 2008). The use of diagnosis in bringing about change in the organization entails the development of action research and a critical analysis of the behavior to ensure the organization carries out its core functions effectively. In the packing and shipping department, it is identified that workers are reluctant to achieve the organization’s targets and quality service delivery because of factors such as lack of open communication, inability to include informal leaders in decision-making, lack of teamwork, discord, and lack of empowerment to enable members to develop their potentials. Several diagnostic approaches exist, but Wiesbord’s six-box model approach would be the most appropriate in addressing the demands and the wishes of the staff at the packing and shipping department.

The diagnostic approach suggests that the consultant must understand the purposes, structures, associations, headship styles, the existing incentives, and other helpful instruments in the department before embarking on the process of problem-solving. The purpose of the organization includes the major missions and goals that must be fulfilled within a specified period. The structure is how an institution is organized, including the existing chain of command. The department might be underperforming mainly because of the role assigned to it or the functions that it should carry out. It is advised that any consultant wishing to resolve any form of conflict using the diagnostic approach must understand the relationships that exist between various stakeholders in the organization. For instance, the relationship between the management and employees is critical in resolving the employee issues in the packing and shipping department. In this regard, it must be understood whether individuals work as a team and whether the multi-skilled teams consult each other in offering important services (DeKler, (2007).

Technology is known to influence the success of any organization in the modern globalized market. The diagnostic approach suggests that the consultant intending to apply the approach should comprehend the relationship between employees and technology. The issues surrounding the underperformance of the department might be related to leadership hence the understanding of the headship styles employed in the running of the department is critical. Research shows that an organization with the ability to apply transformational leadership principles has always performed well in the market. Finally, the model suggests that the helping mechanisms or the instruments, including work plans, employee evaluation tools, budgets, and information systems ought to be used in trying to identify the problem facing the organization.

Data Collection methods

Before embarking on an extensive process of formulating a solution to the problem facing the department, gathering of critical data is essential. Information from employees is needed to shed light on the issue at hand. The data collection methods ought to be quantitative since they follow some of the established standards of scientific research. Based on this, the methods tend to produce valid and reliable results. Inaccurate results might lead to faulty conclusions, which will go a long way to affect the final decision (Sullivan, 2010). The use of structured data collection and measuring instruments, including fixed-choice questionnaire, will be the most appropriate method. Alternatively, the use of a standard coding scheme can perhaps be the most suitable method, even though its structuring is challenging. Open-ended questions will be used because they give respondents more time to figure out their opinions, which would make them volunteer more information related to feelings, outlooks, and comprehension of the subject. This would allow the researcher to understand the position of respondents as regards to feelings. Open-ended questions minimize some errors that could have been created in the course of research. Respondents rarely forget answers if allowed to respond freely.

Questions to be Asked

The consultant will collect critical data from the employees of the packing and shipping department. These questions include the following.

1. Concerning the purposes of the organization, do you support the organization mission and goals, especially regarding the work schedule
2. As far as the structure is concerned, does any form of relationship exist between employees in the packing and shipping department and the management
3. Does the organization reward any member of the packing and shipping organization if he or she meets the desired target? If yes, kindly state the type of the reward and explain the feelings of employees as regards to the reward.
4. Do leaders of the packing and shipping department define the organizational purposes to junior employees, including you? In other words, do leaders incorporate the organizational aims into the departmental decision-making mechanism?
5. Please kindly describe the leadership style that is mainly practiced in your department
6. Finally, do the existing helping mechanism fulfill their purpose of assisting employees to meet organizational and personal targets

References

Cummings, T. G., & Worley, C. G. (2009). Organization development & change. Australia: South-Western/Cengage Learning.

DeKler, M. (2007). Healing emotional trauma in organizations: An O.D. Framework and case study. Organizational Development Journal, 25(2), 49-56.

Sullivan, R. (2010), Practicing Organization Development: A Guide for Leading Change. New York: Jossey Bass.

Introduction

Organization development principle is a concept that has been applied in organization management for over five decades. Therefore, it has undergone through various changes overtime. Based on this, an organization development principle does not have a clear definition.

However, it is essential to argue that an organization development is a managerial theory that mainly focuses on individuals and organization satisfaction (McLean, 2005). Further, various organization development principles have been approved to be very important and are applicable in different situations particularly when an organization is undergoing major changes.

Generally, organization development can be described as a process where behavioral science knowledge and practices are utilized by an organization to attain greater efficiency and success (McLean, 2005).

The application OD Principles in automotive organization

The greatest efficacy that various organizations strive to attain relates to the concentration on increased productivity and enhanced product quality. Such values can be achieved through better service quality and superior life value to all stakeholders including suppliers, investors and customers (Yaeger & Sorensen, 2009).

For a continuous positive operation, organization development should put much emphasis on the ways an organization can improve its ability to assess and restructure its problems. In fact, the orientation of organization development aims at improving the whole organization system including internal and external environments that greatly influence organization functions (Anderson, 2011).

The way an organization development is designed is not merely to provide simple solutions to a minor or temporary issue within the organization, but it is rather meant to move the company to a greater level through proper functioning. This should improve its performance and satisfaction to all the stakeholders.

After it was announced that the automotive company was relocating to Mexico, more information was needed to show the reasons for such a big move. This information is regarded essential in the establishment of the firm in this new destination. Besides, the firm has been doing fairly well in its current location as it gained some profits while employing thousands of people.

Therefore, relocation implies that the firm has to deal with other social issues emanating from the country of origin as well as from the relocation venue. This information is essential in dealing with these issues. The main principle of OD is to gather as much information as possible concerning organization behavior and changes (Anderson, 2011).

The facts regarding organization management, current employees as well as any other issues relating to organization has to be put together so as to bring in the necessary changes that are needed to successfully relocate to new destination.

The information researched should be used to establish the organization core values, beliefs, attitudes and structures that are deemed essential to jumpstart the operations (Anderson, 2011). Furthermore, the newly gathered information should be used to plot the new plans that will improve the change processes and generate a continuous organization success.

Basically, the OD principles will be used to develop and enhance the organization’s new mission, vision statements, aims, goals and strategies. The organization principles will furthermore be used to align the organization functional structures so that they work together for a common purpose (Yaeger & Sorensen, 2009).

The organization principles will similarly be utilized in the formation of deliberate procedures on how the company will be capable of making decisions concerning its future and how that future will be attained. It is worth noting that the organization development will be essential in conflict management.

Conflicts that will exist between the employees and the organization management, between employees themselves, between the organization functions or sites will be solved using the OD principles. Conflicts normally disrupt the organization health and functional capacity.

In essence, the OD principles will be applied in the creation of a collaborative environment regarded useful for organization effectiveness and efficient operations.

The appreciation of the organization principles will help in the creation of reward systems that are acceptable and which are in accordance with the organization goals and vision (McLean, 2005). Of great significance is the fact the organization development principles will assist in developing the organization policies as well as procedures that aim at improving the ongoing organization operations.

The management tools for organization development will be used to evaluate the organization working environment so as to identify the strengths that the company should build on and areas that need improvement or changes (McLean, 2005).

Furthermore, the OD principles will offer the employees support particularly those in the senior or managerial positions who require constant training to properly deliver the needed services. Finally, the OD will be used in establishing systems that will provide personal performance feedback and when conducting studies at personal level. Individual studies will provide feedback useful for personal development.

Conclusion

The firm will adopt the OD principles in establishing its operations in Mexico. The OD model will be applied in planning, execution and evaluation of all the functions within the context of the automotive organizations. The organization will use the OD principles to establish an organization culture that will determine all the organization processes for the benefit of all stakeholders.

References

Anderson, D. L. (2011). Organization development: The process of leading organizational change. Thousand Oaks, California: SAGE. Print.

McLean, G. N. (2005). Organization development principles, processes and performance. San Francisco, California Berrett-Koehler Publishers. Print.

Yaeger, T. F. & Sorensen, P. F. (2009). Strategic organization development: Managing change for success. Charlotte, North Carolina: IAP. Print.

Organizational development (OD) as a technique helps to effect change in a company to improve its effectiveness. It contributes to a change process, and establishes long-term activities, including operation of self-managed or autonomous teams as well as problem solving opportunities (Anderson, 2011, p.2).

OD applies to scientific knowledge on behavioral development that embraces a number of concepts, including work design, leadership skills, team building and international design. The system is a flexible scheme that entails implementation of changes. Furthermore, it should adapt quickly to changes and, when the new data is introduced or experienced, it should be ready to process it (Cummings and Worley, 2008, p. 50).

Indeed, it involves a long range of efforts that will improve problem-solving strategies, as well as its ability to face various challenges within an organization (Cummings and Worley, 2008, p. 2). Organizational development considers change a process that involves a set of such activities as planning, diagnosing, assessing, and implementing (Jex and Britt, 2008, p. 477).

The organizational development process assures the establishment of favorable relationship within a work environment and outside it and provides groups with the possibility to initiate and manage change. Further, organizational development is considered a set of core values, such as respect and commitment, genuineness and cooperation, self-awareness and improvement, democracy and feeling of justice. The process is made up of the four main activities.

These are introducing, analyzing, planning, and implementing (Anderson, 2011, p. 42). The process involves an action research scheme which allows to define the problem and analyze the reasons for introducing changes. Further, it is purposeful to plan an intervention, evaluate and implement it.

The next step will involve collecting information to assess the intervention and define whether progress has been reached or whether further interventions are needed. Furthermore, it begins when a leader envisions relevant approaches and strives to enhance organizational performance (Jex and Britt, 2008, p. 473).

Organization development relies on open systems methods and schemes so as to get a better idea of organization’s goals. Therefore, a shift occurred to one department of an organization cannot be supported without introducing shifts to other departments (Cummings and Worley, 2008, p. 50).

Organization development stems basically from three psychological theories for an organization to understand and motivate its employees. They include need theory, job analysis model, and expectancy theory that provide a deep insight into personal differences among the team members, as well as different kinds of organizational aspects that influence behavior (Jex and Britt, 2008, p. 478).

Need theory as a strategy considers motivation as a means to meet people’s needs and concerns. Need theory is strongly associated with organizational development because it is based Maslow’s theory introducing a hierarchy of needs (Jex, Britt, 2008, p. 480). It starts from the bottom with physical needs, as the basic concerns, and followed up by needs of self-esteem and actualization (McLean, 2005, p.32). Job characteristic model analyzes the way the personnel work.

It also demonstrates how an employed environment influences employees’ motivation with regard to three psychological states (Jex and Britt, 2008, p. 483). Expectancy theory focuses on motivation with regard to decisions that members make concerning the effort they will take to perform organizational tasks.

It suggests that choices about work effort are premised on particular beliefs or values that members uphold. The model is used to introduce effective techniques for an organization to enhance employee incentives, which is also possible through introducing reward systems (Jex and Britt, 2008, p. 486).

The factors that introduce organizational change and development include performance challenges, competition, organizational challenges, and technological advances. Many change strategies are more effective in reducing restraining forces and, therefore, will allow the driving conditions to provide change and decrease resistance (Jex and Britt, 2008, p. 497).

Participative management entails involving members directly in realizing the need for shifts, developing corresponding changes, and putting those into practice. It is also imperative to analyze the need for change and make significant external stakeholders believe that these changes are urgent (Anderson, 2011, p. 100).

A vision will present future perspectives allowing an organization to communicate effective ideas to their employees and provide a healthy work environment. Course of action strategy needs to be developed as well to implement change. This will act as the algorithm for an organization offering directions to present an appropriate final state while defining challenges (Jex and Britt, 2008, p. 499).

Leaders should be able to provide sufficient internal support and create a solid platform for introducing changes. In such a way, they can reduce resistance for employees to take an active part in the process of organizational change. By ensuring full commitment to an organization, leaders will play a crucial role in increasing organizational performance (Anderson, 2011, p. 150).

However, lack of effective leadership skills heightens the challenges for public institutions. In this respect, organization should be provided with sufficient resources to manage change effectively. At this point, introducing planned organizational change can foster a rational distribution of resources within an organization. In addition, the public provides a stronger force for altering their interest in products (Jex, Britt, 2008, p. 501).

In conclusion, in order to effect organization change, there is the need to resort to such stages as change identification, implementation planning, implementation, evaluation of the results, and seeking feedback. It is also important for a leader to understand the potential of the organization with regard to employees’ experience and motivation.

References

Anderson, L. D. (2011). Organization Development: The Process of Leading Organizational Change. California: SAGE.

Cummings, G. T., & Worley, G. C. (2008). Organization development & change. Vancouver: Cengage Learning.

Jex, M. S., & Britt, W. T. (2008). Organizational psychology: A scientist – practitioner approach. New Jersey: John Wiley & Sons.

McLean, N. G. (2005). Organization development: Principles, processes, performance. California: Berrett-Koehler Publishers.

Introduction

The modern globalized society provides numerous opportunities for travelers and tourists to visit other countries and gain new experiences. The rapid development of new means of transport and the reduction in prices for travel stipulated the appearance of a new beneficial environment for the development of the international hospitality and tourism sector. Thus, during the last 25 years, the average number of international tourist arrivals have increased about one percent faster than the global GDP (Abudi, 2017). Additionally, in rapidly developing regions the number of tourists has continuously risen from 31% to 45% (“Annual Report”, 2016).

All these factors evidence the enhanced attractiveness of this sector for investors and global corporations that have their hotel chains or some other tourist services in different regions of the world. However, this also means the emergence of multiple challenges like the high level of rivalry, international terrorism, financial crises, etc. that should be faced to remain successful and preserve leading positions in the sector (Abudi, 2017). It could be a complex process as the organizational development and change demand specific resources and approaches. For this reason, the paper is devoted to the comprehensive investigation of the ways problematic issues could be solved with the help of efficient change management and using Holiday Inn hotels as the background for the research.

Background

The choice of the company is not accidental and is preconditioned by the organizations stable position in the international market. It was founded by Kemmons Wilson in 1952 as an attempt to create a hotel with a high quality of suggested services and consistent road accommodation during different road trips (“Annual Report,” 2016). Later on, some new hotels were opened and gave rise to one of the most recognizable trademarks. At the very first stages of its development, the company was focused on the provision of cheap and appropriate rooms for clients who traveled or had to stay in a particular city for several days (“Annual Report,” 2016).

In other words, Holiday Inn has always been concerned about tourism and significantly benefited from this sector. In the course of the development, the corporation experienced some significant reorganizations and became the part of InterContinental Hotels Group. Finally, in 2007 it had announced a radical relaunch of the brand with the central aim to enhance the quality of delivered services and rooms suggested to clients (“Annual Report”, 2016). That is why nowadays one can observe a renewed brand with diverse peculiarities and aspects of its functioning.

Problem and Causes

Nevertheless, despite numerous attempts to eliminate all critical issues and preserve its leading positions, Holiday Inn still faces some problems. For instance, InterContinental Hotel Group to which belongs to the analyzed company reports a fall in revenue in its annual results (“Annual Report”, 2016). This threatening statistics should be devoted much attention as it signalizes the emergence of negative processes in the sector.

Corporations reports also demonstrate the reduction in the number of clients who used Holiday Inn services in different countries (“Annual Report”, 2016). The problem could become a significant challenge to the organization as the further deterioration of the statistics, and the decrease in the number of sales will result in renunciation and provide the closest rivals with an opportunity to conquer the market. For this reason, the comprehensive investigation of the basic causes and the main factors that preconditioned the appearance of this problem along with the elaboration of the efficient change strategy become the central task for the company.

External Factors

Both external and internal factors precondition the appearance of negative tendencies in the work of the Holiday Inn. As we have already stated, the first external factor is the extremely high level of rivalry (Waddell, Creed, Cummings, & Worley, 2017). The enhanced attractiveness of the sphere stipulates the emergence of numerous rivals who work in the same segment. We could now observe the appearance of chains of hotels that are focused on the provision of services to numerous tourists who want to visit different regions in the world and gain new experiences. For this reason, Holiday Inn might lose its positions due to the efficient functioning of its closest rivals that also provide middle-class services to clients.

Second, the global financial crisis and instability of financial markets might also precondition the emergence of alterations in demand for services and its reduction (Harvard Business Review, Hotter, Kim, & Mauborgne, 2011). Finally, modern international relations are characterized by numerous conflicts and significant convergences in perspectives on disputable issues. It results in diverse sanctions and decreases in the number of tourists who are potential clients of Holiday Inn. These factors should be considered regarding the organizational change and improvement of the companys functioning.

Internal Factors

As for the internal factors that stipulate the emergence of the outlined problem, these should also be considered by the basic aspects of the organizational development (OD) internal focus is critical for change and improvement. Therefore, at the moment, the company uses the strategy suggested by InterContinental Hotels Group. It means attempts to preserve the existing position by introducing numerous rewards and encouragements for traditional clients who have already used the brands services (Kotter, 2012). At the same time, the current strategy demonstrates its poor efficiency in struggling against the closest rivals and attracting new customers.

Additionally, Holiday Inns focus on the middle-segment of the market might also be doubted as today we could observe the tendency toward the increase in the level of demands to the suggested services and their quality. Moreover, the latest reports evidence the extremely high turnover rates (“Annual Report”, 2016). This preconditions the low efficiency and competence of workers and their inability to establish contact with the top management. It might also occur due to the strict hierarchy and the abuse of power that is observed in some Holiday Inn structures. In such a way, there are also diverse internal factors that might precondition the deterioration of the current performance and statistics.

Change Process

Nevertheless, the existence of this problem signalizes the necessity to initiate a particular change process to guarantee the preservation of the companys leading positions and their future development. This activity will be shaped by globalization, information technology, and managerial innovations needed to stimulate positive outcomes and ensure that the successful transformation will be accomplished (Barends, Janssen, Have, & Have 2013).

First, Holiday Inn could be classified as a learning organization that demonstrates the ability to change and improves continuously. It is proven by its numerous alterations in the course of its development and innovations that are introduced at different periods of its functioning. Moreover, its ability to learn helps the organization to move beyond using the knowledge it accumulates during its existence (Vukotich, 2011). It means that the use of all information accumulated during the companys functioning and its implementation to the current situation might help to resolve existing problems by understanding the peculiarities of customers behavior and their preferences regarding the choice of hotels and services provided by them.

Model of Change

Analyzing the current case, it is critical to apply the efficient and relevant models of change to attain positive results and eliminate the reduction of clients and decrease in the level of incomes. This task could be accomplished using Lewins change model that presupposes three essential phases which are unfreezing, movement, and refreezing (Cummings, Bridgman, & Brown, 2015). This should be applied to the company. At the moment, its current state is characterized by the reduction in incomes and the appearance of problematic issues. Using the ODs perspective we could assume that the future state should demonstrate significant growth in revenues, the emergence of new customers, and a decrease in turnover rates (Starr, 2017).

In this regard, it is critical to enter into the transition state to solve problems, adapt new experiences, and influence future alterations. From Lewins perspective, it could be determined as the unfreezing and movement phases (Cameron & Green, 2015). At this very moment, companies have to suggest efficient interventions to guarantee enhanced results and achieve all planned goals.

Change Agent

Therefore, the initiation of the change process also means that the company needs a change agent responsible for the creation of a particular course and strategy to introduce all planned interventions and guarantee the final success of this venture. This specialist should posse outstanding skills in diagnostic, expertise, problem-solving experiences, empathy, and objectivity (Davidson, 2015). These skills are crucial for the change agent.

Additionally, Holiday Inn should use the model that presupposes an internal change agent who has an advantageous position because of the improved knowledge of the organization, its dynamics, culture, and practices that are efficient at the moment (Hiatt & Creasey, 2012). Moreover, the internal change agent will have access to all information about the companys current status, its financial reports, and direct observations about its evolution. Finally, a person from the company will cause a lower level of stress among workers, and they will be able to trust him/her. For this reason, the use of the internal change agent might be recommended for the given case.

Intervention

Thus, the change process should affect the most important aspects of the companys functioning. First, Holiday Inn should be ready to encourage new clients to use their services by introducing new policies and more beneficial conditions. At the same time, it is critical to reducing staff turnover by using motivational practices and improving cooperation between managers. Additionally, the solution to the problem might include a reconsideration of the functioning of managers who use traditional approaches to work with people and guarantee their satisfaction (Hiatt & Creasey, 2012). At the same time, the use of diverse financial models to attract new clients might also be needed.

The problem of the high turnover rates and poor communication between workers could be solved with the help of structure interventions affecting work design and explored communication practices. The application of human resource intervention might help to eliminate the problem and guarantee the use of the enhanced communicational patterns between all individuals. Thus, the motivational approach could also be efficient in solving the existing problem.

Workers of a particular department or the whole organization should be shown the importance of enriching their work efficiency through close cooperation with all managers and team members. At the same time, regarding the peculiarities of the motivational approach, employees should be provided with greater autonomy and responsibility to demonstrate the high level of trust and their importance for the company. It will help to decrease staff turnover rates and motivate people to work harder. The use of this approach should be supported by redesigning jobs and creation workplaces with high levels of meaning to satisfy workers need for self-development and professional growth. In such a way, the application of this intervention might help to improve the situation in the sphere.

Resistance to Change

These changes will affect all aspects of the company starting from common managers and ending with its officials. That is why the scale of these alterations might result in the rise of resistance to change and the appearance of undesired behaviors in employees who do not understand the need for the outlined processes and act in ways that slow down their use in practice.

In general, resistance to change is one of the critical elements of any change process. In the majority of cases, several fundamental causes stipulate the emergence of resisting behaviors in workers. These might be the fear of losing control, lack of psychological resilience, uncertainty, inconvenience, prolonged periods of adaptation, and economic factors (Bersin, 2012). In such a way, a significant part of employees involved in essential activities might deteriorate the results of the change process if they do not have the needed level of understanding or try to protect their current status.

For this reason, one of the central tasks of a manager responsible for change and OD practitioners is the choice of an appropriate strategy to guarantee that all individuals are ready to participate in the change process. First, a change manager should demonstrate empathy and support to all workers who will be affected by the reconsideration of the companys functioning. A new financial model might mean the introduction of new rewarding practices. That is why clear and effective communication about the change in groups should be established to explain all peculiarities of the new environment and build trust among all members of the collective. Additionally, resistance could be eliminated by encouraging and rewarding new behaviors and creating the new culture needed to facilitate change and attain enhanced results.

Environment

Another aspect of the outlined problem and change process associated with it is the necessity to create a specific learning environment in which all workers will be able to learn and acquire the needed experiences (Bersin, 2012). The improvement of the Holiday Inns functioning means a new approach to working with clients and finances. For this reason, employees should learn how to act regarding this very environment.

It could be achieved with the help of the change agent who will perform the role of a leader who demonstrates all the needed aspects. Moreover, as far as we have already classified Holiday Inn as a learning organization, it has specific aspects like a supportive learning environment and improved mutual understanding between all its members, In such a way, possessing the knowledge about the current companys performance and being able to apply them to the real-life conditions, all workers will be able to improve their performance by correctly realizing how they should act in the new environment.

Areas of Change

Nevertheless, the functioning of the company significantly depends on the success of the change process and the creation of significant competitive advantage. In other words, the alteration in work with clients and shift of priorities from middle-class to other spheres of the market become central components of the organizations future rise and preservation of its leading positions. Additionally, the ability to overcome rivals is one of the desired outcomes of the change process that could be achieved through the decrease in staff turnover (Davidson, 2015).

In such a way, the focus of these very alterations is one creation of a potent tool to achieve goals and remain competitive. At the same time, it is critical to improving the whole system and all aspects of its functioning in the context of the existing micro-environment and market peculiarities (Dey, 2017). In such a way, all workers should be explained aspects of the process and guaranteed that they will have stable positions in the new environment and they will not suffer from the introduction of new methods to manage the company.

Thus, all these actions should be accomplished during the movement phase regarding Lewins model. During this very stage, significant shifts in new behaviors, values, and attitudes should be achieved. It is critical to ensure that all outlined alterations are attained during this very phase which is introduced with the central aim to unfreeze all important processes and guarantee the efficient reconsideration of existing approaches (Davidson, 2015).

At the same time, it is extremely important to achieve the highest efficiency among workers at that period as they should contribute to the enhanced outcomes. Moreover, during this very phase, numerous problems related to the acceptance and implementation of new practices might appear. For instance, the use of the new approach in communicating with employees demands additional training among the members of the staff to precondition the acceptable level of their skills. However, all these problems should be eliminated during the given stage.

Recommendations

In such a way, the suggested approach and intervention demands specific actions from all employees. In such a way, the following recommendations should be given. First, top managers of the company should ensure that problems in communication and hierarchy will be eliminated by introducing more tolerant and efficient collaborative practices and behaviors. Second, regarding the motivational approach, workers should be provided with perspectives for their development to remain interested in their high efficiency and top performance (Straatmann, Kohnke, Hattrup, & Mueller, 2016).

It is critical for the companys management to use models described above and inform all workers about the necessity of change. It is an essential element of any change process as it guarantees positive outcomes and decreases resistant behaviors in employees. At the same time, all individuals who work in Holiday Inn should be recommended to involve in the change process to guarantee their enhanced positions of professional growth. The radical character of these alterations will affect them; however, it is critical to ensure that workers will feel protected and benefit from the introduction of new practices that will help the company to evolve and become even more prosperous.

Conclusion

Altogether, change management is a complex problem that demands an enhanced understanding of the current situation and the causes of the issues that affect the functioning of the company and result in the significant deterioration of its performance. Several efficient interventions are recommended as an appropriate way to attain success and eliminate the problem preventing an organization from its further rise. Thus, it demands an experienced change agent and cooperation between all workers of the company with the primary aim to achieve the current goal and minimize the negative impact of problematic factors.

References

Abudi, G. (2017). Implementing positive organizational change: A strategic project management approach. New York, NY: J. Ross Publishing.

Annual Report. (2016). Web.

Barends, E., Janssen, B., Have, J., & Have, S. (2013). Difficult but doable: Increasing the internal validity of organizational change management studies. The Journal of Applied Behavioral Science, 50(1), 50-54. Web.

Bersin, J. (2012). Five keys to building a learning organization. Forbes. Web.

Cameron, E., & Green, M. (2015). Making sense of change management: A complete guide to the models, tools and techniques of organizational change. Philadelphia, PA: Kogan Page.

Cummings, S., Bridgman, T., & Brown, K. (2015). Unfreezing change as three steps: Rethinking Kurt Lewin’s legacy for change management. Human Relations, 69(1), 33-60. Web.

Davidson, J. (2015). What’s all the buzz about change management? Healthcare Management Forum, 28(3), 118-120. Web.

Dey, A. (2017). Change management drivers: Entrepreneurship and knowledge management. South Asian Journal of Business and Management Cases, 6(1), vii-ix. Web.

Harvard Business Review, Hotter, J., Kim, C., & Mauborgne, R. (2011). HBR’s 10 must reads on change management (including featured article “Leading Change,” by John P. Kotter). New York, NY: Harvard Business Review Press.

Hiatt, J., & Creasey, T. (2012). Change management: The people side of change. Loveland, CO: Prosci Learning Center Publications.

Kotter, J. (2012). Leading change, with a new preface by the author hardcover. New York, NY: Harvard Business Review Press.

Straatmann, T., Kohnke, O., Hattrup, K., & Mueller, K. (2016). Assessing employees’ reactions to organizational change: An integrative framework of change-specific and psychological factors. The Journal of Applied Behavioral Science, 52(3), 265-295. Web.

Starr, J. (2017). Leadership. Organizing for adaptive change management. Phi Delta Kappan, 98(8), 70-71. Web.

Vukotich, G. (2011). Ten steps to successful change management. Alexandria, VA: Association for Talent Development.

Waddell, D., Creed, A., Cummings, T., & Worley, C. (2017). Organisational change: development and transformation, Asia Pacific. South Melbourne: Cengage.

Introduction

One company that can be said to have changed the automobile industry is Toyota Motor Corporation (TMC). Since its establishment in the year 1937, Toyota Motor Corporation has evolved to become one of the best car selling companies in the world. At the same time, Toyota is estimated to provide employment opportunities to about 317,000 people at the moment, working as dedicated employees of the company.

Major activities of Toyota Company started after the Second World War, when the company started to design and manufacture automobiles in large number.

The history of Toyota Company is associated with Kiichiro Toyoda who was an excellent inventor and established Toyoda Automatic Loom Company that largely relied on his prolific designs (Toyoland, n.d). As part to generate more capital resources, the company Kiichiro Toyoda licensed part of the designs to the British and the generated money was used to establish Toyota Motor Company, an idea that received government’s support due to its military applications (Toyoland, n.d).

Before the establishment of the company, Japanese armies relied on imported trucks, and as a result of depression that affected the world and the country at the same time, resources to import trucks became scarce (Toyoland, n.d). As a result, domestic production was seen as an avenue to reduce costs, create employment opportunities, and empower the country to be self-reliance (Toyoland, n.d).

Some of the automobile designs by Toyota Motor Corporation in the history include: Model A1 and G1 models, model AA, sedans, phaetons or model AB, Toyota model, GB truck, G1 truck, Toyopet or the model SA, SD models, RH model, Landcruiser, Crown, Corona, Avalon, Camry, and Lexus (Toyoland, n.d).

Toyota at the same time throughout history has been able to establish plants in other regions of the world specifically in Latin America and USA. Today, Toyota Motors has evolved as the global largest designer and “manufacturer of automobiles, both in unit sales and net sales” (Toyoland, n.d). For instance in USA alone Toyota has succeeded in eclipsing Honda and sustained fierce competition to GM and Ford motors (Toyoland, n.d).

Further, in 2002, Toyota Motors incorporated 2010 Global vision, which according to the company is a vision aimed at achieving mobility needs in away that considers and respects environment and the people (Toyoland, n.d). Major themes in this Global vision include “Toward a recycle-oriented society, toward the age of IT and ubiquitous networks, toward a mature society, and toward motorization on a global scale” (Toyoland, n.d, p.1).

Toyota’s Organizational Structure and strategy

Richard D. Daft, writing in the book titled ‘Organizational Theory and Design’ observes that in defining what organizational structure is, it is important to put into consideration three important aspects: organization structure constitute formal reporting relationships that include number of levels in the hierarchy and span of control of managers and supervisors (Daft, 2009).

Second, organizational structure establishes the grouping together of individuals into departments and of departments into total organization. Lastly, organizational structure constitutes the design of systems to ensure effective communication, coordination, and integration of efforts across departments (Daft, 2009).

According to the author, these three elements involve both the vertical and horizontal aspects of organizing, with each representing a structure that is more appropriate in certain specific organizational orientation. Accordingly, an ideal structure should be in a position to encourage employees to provide horizontal information and coordination where and when it is needed (Daft, 2009).

From 2003, Toyota Motors was seen to be causing ripples in the automobile industry as it undertook initiatives at high speed catching up with the industry’s perennial leaders and dominant players like GM, Ford, and Chrysler (Griffin and Moorhead, 2009). Many people viewed this as a risk strategy, which upon failure would have severe negative impacts on Toyota Motors.

However, on gradual note, the strategy has been working out as some instances of literature postulate that Toyota Motors has been able to outperform one or two of these companies (Griffin and Moorhead, 2009). As the strategy appeared successful, Toyota put in place strategies to re-invent itself and one of the re-invention strategies was to introduce new designs.

One of the changes that has characterized Toyota introduced by the management include introduction of a number of new designs such as introduction of Prius hybrid model in 2004 (Griffin and Moorhead, 2009). When the success of this model was realized, Toyota was motivated to introduce another hybrid luxury sport-utility vehicle known as the RX 400h and today the company offers these two designs in the world’s market estimated to be about 50 per cent (Griffin and Moorhead, 2009).

Accompanying Toyota’s introduction of new designs in the marketing is the company’s well-established and known reputation that, on wider global scale characterizes the company as one of the world’s leading corporation to be involved in massive cost cutting. The company has continuously invented and improved guided by the kaizen (continuous improvement) philosophy. Kaizen has further been strengthened by the company’s kanban (just-in-time inventory) systems (Griffin and Moorhead, 2009).

The understanding of these two concepts is that the company’s managers should continuously search for diligent ways of reducing expenses. At the same time, Toyota has engaged in making numerous low-tech changes that are aimed at bringing about cost savings while at the same time, be able to improve speed and quality (Griffin and Moorhead, 2009).

Toyota’s urge and need for change is not only anchored in its favor for designs, processes and technology but also the company has undertaken broad initiatives to update and ‘repackage’ its organizational structure by replacing some of its top managers (Griffin and Moorhead, 2009).

At the same time, the company is integrating some of its far-flung divisions such as the business unit. With the coming of Watanabe as the new CEO after retire of Fujio Cho in 2005; change at Toyota has become an inevitable aspect as the new CEO pays attention to the aspects of cost cutting and quality control measures (Griffin and Moorhead, 2009). Watanabe has characteristically embarked on shuffling organization’s managers as part of his wider aim of having new and fresh blood in the top management of the company.

To make these changes more meaningful and genuine, the Company’s leadership is at the time involved in updating the organization’s culture. For a long time, Toyota Motors has been accused and viewed by many to be too conservative especially in its design, too focused on the Japanese market, as well as too timid and slow in adopting revolutionary innovations (Griffin and Moorhead, 2009).

As a show of changes taking place at Toyota, Maryanne Keller, an auto industry consultant noted that Toyota’s CEO was more focused and determined t pushing for more reforms, more openness, more alliances, more speed, and more risk taking (Griffin and Moorhead, 2009).

Today these changes continue to bore fruits since from 2007 although the world witnessed financial turmoil in terms of recession profits margins at Toyota increased by 4,7 per cent. Further, the company has invested about $16 billion in cash to enhance its research and development together with growth and as today it stands, re-invention constitute and define Toyota’s winning strategy (Griffin and Moorhead, 2009).

Organization change process

Today, organization change is seen to be inevitable feature especially given the competitive environment that businesses are being subjected to (Harigopal, 2006). Change in general manifest itself in two forms: intended change and unintended change. Intended also known as planned change usually takes place with aim of bringing about systematic change in an organization in order to increase or improver organization’s effectiveness (Harigopal, 2006).

Numerous models exist today that explain how change process can be undertaken and such models include “Lewin’s model of change, the planning model, the action research model, and the integrative planning model” (Harigopal, 2006). With regard to objectives of this research, attention will be paid to two major models: Lewin change model and integrative planning model.

Lewin change model postulates that change constitutes processes of modifying the forces that tend to keep a system’ behavior stable and that change can be planned by modifying the existing state through either increasing the forces pushing for change or reducing the forces that maintain the current state or even in some instances apply a combination of both (Harigopal, 2006).

Further, this model postulates that there are different levels at which change can occur in an organization. These levels of change are individual, with aim of changing individuals’ behavior, values, skills, and behavior (Harigopal, 2006).

In addition, there is structural and systems change, where the aim is to change or modify work design, reporting relationships, and information systems and even reward systems (Harigopal, 2006). Third level of change can take place at the organizational level where realization of change may be manifested in change of leadership styles, interpersonal relations, decision-making, and other aspects at this level (Harigopal, 2006).

On the hand, integrative model of planned change postulate that an organization exists in different states at different times and that planned change can occur from one state to another (Harigopal, 2006). Integrative model of planned consists four phases that include exploration phase, in which the organization makes a decision on whether to plan for specific changes and allocate resources for that particular change.

Next phase is the planning phase in which planning for change starts and usually comes about as a result of particular problem facing the organization. After diagnosis of the particular problem to be modified, planning process sets in. Third phase is the action phase where changes derived from planning are implemented at this stage. It is within this phase that the organization aims to transform from its current state to the desired future state.

Last phase is the integration phase in which changes are incorporated as part of regular organizational functioning after undergoing successful implementation. The new change behavior in the organization become reinforced through feedback, incentives, and reward system (Harigopal, 2006).

Organizational changes at Toyota Motors

In 2009, Toyota Motor Corporation announced major change initiatives as part of its organizational change (Toyota Motors Corporation, 2009). The organization change undertaken by the company rested on the theme of “reinforcing necessary functions and implementing that contribute to more efficient organizational operations to better respond to priority issues of each individual field and group” (Toyota Motors Corporation, 2009, p.1). Types of changes that the company anticipated to pursue included the following:

Business Development Group

The change to be introduced was to see the business development division being merged with marine business division; the two form a new division known as Business Development Division& the Marine& Unit Business Division (Toyota Motors Corporation, 2009). The aim of this initiative was to see the use of resources between the two divisions carried out more “effectively and increase the efficiency of the unit business” (Toyota Motors Corporation, 2009).

Purchasing Group

The company’s purchasing planning department, the global purchasing promotion division and the parts of purchasing division were to be integrated and re-organized into the new created Purchasing Administration Department together with Purchasing Planning Division (Toyota Motors Corporation, 2009). The purpose of this initiative was to ensure consolidation and centralization of purchasing issues and needs into the new Purchasing Administration Department in order to improve and strengthen the global strategies and project management (Toyota Motors Corporation, 2009).

Japan Sales Operations Group

The initiative to be implemented in the company was to see elimination of the Japan Advertisement and Marketing Division where the functions performed by this division were to be transferred to the new Toyota Marketing Japan Company Limited (Toyota Motors Corporation, 2009). The aim of this strategy was to see much emphasis and focus is directed towards activities that target Japan Market while art the same time be able to reinforce the identified and specific activities (Toyota Motors Corporation, 2009).

Middle East, Africa, and Latin America Operations Group

Accordingly, the company intended to create a new division, with the purpose of this initiative centering on “consolidating the product planning, profit management, affiliate management and business planning functions of the Middle East, Africa and Latin America Operations Group in the Middle East, Africa, Latin America and Caribbean Planning Division in order to increase momentum and efficiency of operations” (Toyota Motors Corporation, 2009, p.1).

Customer Service Operations Group

Change here was to involve the Service Parts Administration Division where this unit as to be transferred to the new established Customer Service Operations Group. The major purpose of this initiative was to ensure there is closer achievement and “collaboration with parts and accessories divisions in Japan and overseas (in the service-parts segment) to achieve more timely supply and establish quality assurance standards” (Toyota Motors Corporation, 2009).

How success Toyota will be able to realize these changes?

First, it must be realized that Toyota Motors has pursued strategies of lean manufacturing system where the company’s production system in built on the principle of ‘just-in-time’ production (Bauer and Erdogan, n.d). The essence of this principle is that raw materials and other supplies are exactly delivered to the plant when production is to take place and this has avoided tendencies to waste resources.

At the same time, emphasis has been put on the importance of efficiency on the part of the employees specifically those located on the front lines (Bauer and Erdogan, n.d). Assembly workers have been empowered in decision-making processes to take appropriate action when production line experiences a problem.

Toyota Company has also been able to enact its change programmes by receiving help from its human resource strategies, culture and structure (Bauer and Erdogan, n.d).

For the human resource, Toyota has employee programs and initiatives that are see employment opportunity more permanent and stable, there is also “high investment in training and development, and internal promotions, all promoting a sense of employee ownership of the process” (Bauer and Erdogan, n.d). With regard to culture, Toyota company has put more emphasis on the learning and modesty specifically by incorporating past successes in the company that isolate them from other competitors (Bauer and Erdogan, n.d).

For example, the company requires and support employees to be experts in everything they do and as a result, the issue of specialization has been encouraged in the organization. From these aspects, Toyota Motors has evolved and established a effective structure that fosters internal communication. Further, meetings in the company are frequent being held after “every two days to coordinate the relations between chief engineers and functional managers” (Bauer and Erdogan, n.d). “

Other key aspects in the organization that facilitate effective functioning in the organization include effective communication channels such as presence of module development teams tasked with the role of harmonizing organizational operations and processes. These aspects have characteristically made Toyota Motors appear unique among auto companies since it is able to remain traditional and bureaucratic while at the same time striving to be agile and innovative (Bauer and Erdogan, n.d).

The culture of the company focuses and emphasizes continuous and constant learning and improvement with employees being given opportunity to analyze gaps in the expected performance and therefore be able to change.

Conclusion

Organizational structure is the key aspects to the success or failure of change in an organization. To fit into the challenges of dynamism in the environment organizations will be forced to undergo change if they aspire to remain competitive. Although there are two types of change – planned and unplanned – it is the planned one, which has the capacity to bring meaningful change to the organization. What is important is for the various organizations anticipating or planning for change to carry out the process more diligently.

There is need to carry out environmental scanning before appropriating the necessary change needs and strategies. Key and formidable internal structures should be able to support the change process and such can result due to presence of change-oriented management. When it appears, the management is not ready for change or re-organization then it becomes necessary for such management team to be substituted with more change-oriented management.

All in all change process is seen to be a tedious process that sometimes will results into failure but this should be an excuse not to undertake change. All organizations should be prepared to embrace and employees of the company or organization should be involved and even incorporated into change decisions for the whole process to succeed.

References

Bauer, T. and Erdogan, B. (N.d). Organizational Behavior. Web.

Daft, R. L. (2009). Organization Theory and Design. OH: Cengage Learning.

Griffin, R. W. and Moorhead, G. (2009). Organizational Behavior: Managing People and Organizations. OH: Cengage Learning.

Harigopal, K. (2006). Management of organizational change: leveraging transformation. NY: SAGE.

Toyoland. (N.d). Toyota history: corporate and automotive. Web.

Toyota Motors Corporation. 2009. Toyota Announces Organizational Changes. Web.