Discuss about the Advance Diploma of Management.
Fast track courier service is a Sydney based company. The main aim of the report is to describe the changes that will have a positive impact on the morale of work force. The company is running at loss as it just has a five percent of the total market share. The organization has adopted many changes in past in order to improve its operation. The main aim of the organization is to capture the major market share so that it does to have to close down in future. It aims at reducing the wages and the cost of production and delivers the goods faster to its customer. The main treat of the courier service is from its competitors that are highly efficient. Formulation of efficient strategies is necessary for the organization in order to improve the operations.
- External threats:
The main threat of the courier service company is from its competitors. The market share of the company is just five percent that is very less when compared to the other courier services. Delivery services face many dangers. It is essential for the firm to adapt technologies that is in trend. It is essential for the delivery service too have an IT department that is responsible for managing and tracking orders. The company also has threats in the form of late delivery and misplacement. If any product gets misplaced then the delivery service is in danger. Threat is from the change through which the company has to go. The pressure of work is also more. If Fastrack delivery services continue in the market with the same market share then the company will be in loss and will be forced to close down (Dey et al. 2015).
- Strategic goals for 2017:
The main goal of the company is to expand its market share in Sydney from 5 percent to 7.5 percent in order to stay in business. The strategy of the company is to develop and employ machines that help in faster delivery of products and services. The firm plans to adopt technologies that lead to faster packaging and delivery of goods. This includes strengthening the use of GPS methods in order to help the drivers find the place of delivery. Another strategy is to motivate workforce to wok better so that the best ones are retained. Instead of using more of employees, the organization plans to use more of fast track trucks for delivering the product. The main strategy is to improve the productivity of the company. It also aims at managing the workforce and employing the techniques that will lead to faster delivery products. The techniques so employed should be such that the employees do get injured and work harder to increase the productivity of the firm (Jung et al. 2015).
- Tactical goals:
Tactical goals describe the strategies adopted by the company to accomplish its goals and objectives. In order to reduce the delivery time the company plans to strengthen its GPRS system to help the drivers find the places of delivery easily. In order to reduce the work pressure the company also employed fast track trucks in its operations that would help the drivers pick up the delivery packets from the ground level. Use of fast track trucks increased the number of injuries due to which company plans to adopt modified trucks. The trucks that the organization plans will come with an innovation. The truck will have a lift gate at back of each truck to lift heavy and light packets. Each truck would have just one driver for operation of the entire service. This will also helps the company reduce the cost bringing the wages to truck ratio the same. Hence, the productivity is likely to increase using the tactics motioned.
The main issue that the company faces is its inability to capture major market share. The other issue is low retention of workers, increase in rate of injuries, low productivity and increase pressure of work (Hayes 2014). The drivers are not satisfied working with the worker and increases the number or problems for the company by not delivering the product on time. The threat is from the trade unions of drivers that go on frequent strike that ultimately hampers the productivity of the organization.
- Stakeholders within organization:
The stakeholders that will get affected from the change are the customers of fast track courier services, its employees and its shareholders. The stakeholders of the organization are the part of the organization. Customers, clients, employees and shareholders are the stakeholders of the organization because they are the part of the organization and contribute towards the organization in some way or the other.
The change management primarily focuses on change in technology as the company plans to adopt new machines and technologies to reduce the cost of production and increase the productivity of the firm (Seuring and Gold 2013). Change in technology will helps the organization retention of workers and will motivate the employees as it reduces the work pressure. The organization plans to be more capital intensive and less labor intensive.
- Risk analysis Matrix:
Type of Risk
Likelihood of the Risk
Impact of the Risk
Late delivery of the product
Reasons for late delivery are drivers lose their way while finding the place of delivery. Another reason can be late back attitude of the employees of the organization.
The risk of late delivery is very high and the solution that the company plans to adopt is switching its method from labor intensive to capital intensive.
Misplacement of product
Irresponsible behavior of the employees and theft are some of the reasons for misplacement of the product
Careful handling of the product by the employees helps in handling the product safe.
(Source: McNeil et al. 2015)
Kurt Lewin’s change model emphasizes on the change of the human aspect. There are three stages of Lewin model that are unfreezing, change, and freezing. The unfreezing changes describe the changes of the world and the factors that encourage people to adopt change. The first stage is related to preparing people to adopt the change. In case of courier service the employees should prepare themselves to adopt the new fast track trucks as it is a new technology for them. The employees also have to get ready to use the GPRS technique. The second stage is change or transition (Burnes and Cooke 2013). Change is a process rather than an event according to Lewin. This is the most uncertain stage as people or organization is not aware of the results or consequences of the change. Support is needed to adopt the change and it can be in the form of training and development. The managers of the organization cannot predict what the consequences of change would be. Hence, it is the most uncertain stage. The third stage is freezing stage where the main purpose is to create stability once the changes have been made. The last stage is time consuming, as change is not easy to accept. It is a very time consuming purpose.
Communication is one of the most important tools that every organization should be efficient in. communication helps in better transfer of knowledge and reduces misunderstanding at work place as well. Fastrack courier services can improve communication by providing proper training to the employees. Communication will helps the stakeholders aware of the change the organization plans to adopt. Employees will be able to use to the technique efficiently. Effective communication will also help in faster delivery of products (Broadbent 2013). Communication needs to be strong between the customers, the management team and the employees. Adoption of change will help the employees and its stakeholders aware of the changes that are being bought.
Stakeholder is people that are attached to the organization and contribute in some way or the other for the benefit of the organization. Stakeholders can be customers, clients, either shareholders or employees. The employees of the Fastrack courier service will be most affected from the change as the way of working will change. The firm is planning to be more of capital intensive than labor intensive. This will lead to a fall in wage that will directly impact the employees. The employees also need to prepare themselves for the new technologies that the organization is planning to adopt. This can be achieved by providing proper training and development.
Changes are measured by measuring the performance of the organization. It will be measured by looking into the market share that the organization recently holds. The changes will also be measure by looking into the turnover rate, the number of absenteeism of the employees, the income of the firm and the profit that the firm has generated over the past six months. The success and failure depends on the feedback of employees as well as customers (Benn et al. 2014.) If customers are happy with the service then the change is said to have a positive impact. Result also depends on the feedback of employees. If the employees are happy working with the organization then the change is said to have a positive impact. The main aim of the change is to increase productivity and profit and to reduce the pressure on employee by adopting new form of technologies.
Change in organization is necessary. It is essential for the organization to handle these changes efficiently in order to create a positive impact. Effective communication is necessary to handle the business efficiently. Fastrack courier service needs lot of improvement as the market share of company is low compared to its competitors. The organization faces various risks such as late delivery and misplacement of the product.
Benn, S., Dunphy, D. and Griffiths, A., 2014. Organizational change for corporate sustainability. Routledge.
Broadbent, D.E., 2013. Perception and communication. Elsevier. Retrieved from: https://books.google.co.in/books?hl=en&lr=&id=ZCOLBQAAQBAJ&oi=fnd&pg=PP1&dq=Broadbent,+D.E.,+2013.+Perception+and+communication.+Elsevier.&ots=sGOqj5lHEN&sig=MqQw-x7-wWvXXfFfWTsdzZxGgnU#v=onepage&q=Broadbent%2C%20D.E.%2C%202013.%20Perception%20and%20communication.%20Elsevier.&f=false
Burnes, B. and Cooke, B., 2013. Kurt Lewin's Field Theory: A Review and ReÃ¢â¬Âevaluation. International journal of management reviews, 15(4), pp.408-425.
Dey, P., Bose, A. and Hajare, S., 2015. ERP IMPLEMENTATION IN COURIER INDUSTRY.
Hayes, J., 2014. The theory and practice of change management. Palgrave Macmillan.
Jung, K., Morris, K.C., Lyons, K.W., Leong, S. and Cho, H., 2015. Mapping strategic goals and operational performance metrics for smart manufacturing systems. Procedia Computer Science, 44, pp.184-193.
McNeil, A.J., Frey, R. and Embrechts, P., 2015. Quantitative risk management: Concepts, techniques and tools. Princeton university press.
Seuring, S. and Gold, S., 2013. Sustainability management beyond corporate boundaries: from stakeholders to performance. Journal of Cleaner Production, 56, pp.1-6.
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