Essay: Org. Dev. Plan For ABC Intl. Pty Ltd." (50 Characters)

Question:

Discuss about the Organisation development Plan and Drastic Action Or evolutionary adaptation An organisation Development Perspective.

The aim of this project is to develop a plan for organizational change resulting in organization development. The project team comprises of four members who have the following responsibilities. The first team member addressed the purpose, rationale, goals and objectives of the strategic requirement. The second team member was responsible for identification of key stakeholders and required organizational climate for implementation of plan. The third team member was responsible to describe the strategic priorities, planning of implementation change and communication. The fourth team member was responsible to conduct a cost-benefit analysis and plan review. All the team members were collectively responsible for proposed staff development.

From the case scenario, it is evident that ABC International Pty Ltd faces increasing competitive pressure that led to departure of two senior executives. An implementation of organizational development plan can help increase the fallen market share and revenue. With successful organizational change, the firm shall be sustainable in the long-run. The technology infrastructure upgrading shall help in better management of departments. Reviewing the staff competencies shall helpful in identifying the areas of development to enhance organizational performance[1].

The goals and objectives of this organizational development plan are addressed as follows:

• To recover for 8% lost market share and increase the overall rate by 15% within six months by ensuring consistent technology platforms and efficient training and development to the employees.
• To increase the revenue of the firm while recovering for 23% lost amount within a year by enhancing the management system and responsibility among employees.

Stakeholders play a vital role in an organization’s outcome. In the given case scenario, the key stakeholders for the planning and implementation process of organizational change development are senior management, graphic designers, product managers, brand managers, and marketing team. The senior management determine the methods to be used to achieve goals and objectives. The other stakeholders play the role for implementation of plans for organizational development[2].

Organizational climate refers to the conditions or practices of conflict, communication, rewards and leadership practices as viewed by the employees. There must be flexibility and adaptability among employees for accepting the technological change in the infrastructure. The employees must possess strong and unified cultures by aligning goals. Additionally, the organizational conflicts must be resolved by the senior management at ABC International Pty Ltd so that the competitive needs can be met. The operational change requirements such as change in processes and implementation of enterprise resource planning shall be helpful in leading to success[3].

The first strategic priority is to review and upgrade the existing technology infrastructure for ensuring there is consistency in the technology platforms, applications and maintenance across different departments. It is observed that there are multiple departments in the development and distribution of beauty products represented in pharmacies, boutique stores and retail chains. The second strategic priority is to review the existing staff competencies while identifying the training and development needs. The company is not able to sustain in the competition and lack of training led to the departure of two senior executives.

The planned development strategies can be implemented using four steps. Firstly, organizational development refers to the professional development of employees. The employees shall be trained to adapt to the new infrastructure and computer applications. Secondly, financial resources can be utilized to engage in the activities. The company policies can be formulated to support the strategy. So any activity that does not contribute to the strategy cannot be done. Continuous improvement programs cab be ensured based on the previous infrastructure provided to the employees.

Stakeholders and Organizational Climate

After identification of strategic priorities, the senior management at ABC need to develop a communication plan. Core messages must be developed that determine the nature of organizational development and necessity of change. The process of changing from the existing to the desired state shall be communicated. The role played by all employees shall be determined as required in the change process. The method of communication needs to be determined using memos, emails or notices. The circulation of the message shall be determined so that it reaches all the employees. Based on content preparation, the frequency shall be determined. The employees must be provided with a feedback opportunity to determine paths of resistance.

The first strategic priority of reviewing and upgrading the current technology infrastructure shall involve costs of software development. The human resources shall be increased and financial expenses shall rise up high so that the employees can reap the benefits of latest technology. The benefit of this strategy is that the organization shall be able to sustain in the market and compete. In the second strategic priority, identification of training and development needs shall not have high cost. Software is available online where the competencies can be assessed. The benefit obtained shall improve the overall staffing structure and training needs of employees to help ABC reach new competitive heights.

The purpose of training is to test and enhance the knowledge of employees regarding technology infrastructure and competencies. Online tests can be conducted so that the employees can have an idea of where they stand. It shall also help in knowing the skill-level before training. The senior management shall be responsible to look after the development of organization post-training. On-the-job training methods can be used where the employees are trained to use the latest technology infrastructure.

The key performance indicators can help in reviewing if the training was effective and extent of success of the organization development. An assessment shall be made if any other senior executive left the organization. The figures for market share and revenue shall be assessed to see if the losses made in the previous times have been recovered. Further, a survey may be conducted to check if the vision and mission statements of the organization are met[4].

Organizational change can be defined as the process of changing an organization’s procedures, processes, culture and technologies. Organizational change can be continuous or occur for distinct periods of time. The organizations are under a risk of failure in running the business successfully if there is no efficient change management. Change management s a tool that focuses on how teams and people are affected by transition. The increasing innovation of technology in companies’ thereby boosting competition makes it necessary for the organizations to undergo change. Therefore, change management helps the organizations to sustain in the competition as it affects all employees and departments directly. The organizational change can be distinguished into two categories based on its intensity- transformation through drastic action or through evolutionary adaptation[5]. The aim of this essay is to discuss the two approaches with a focus on organizational development. Multiple theories of organizational behaviour, organizational culture, organizational dynamics and change management are considered.

Strategic Priorities

The organizations undergo change through drastic action and evolutionary adaption. In case of change through drastic action, change is forced and mandated by the senior management. As the name suggests, the change is discontinuous in nature. Change through drastic action can be caused by several reasons such as changes in political, regulatory, competitive and legal landscape. In this change management scenario, changes happen quickly in case of major technological innovations or the above specified reasons. This can be related with the Theory E that has the purpose of creating economic value. Theory E is often driven by the top management as the approach is based on formal systems and structure. The Theory E involves drastic layoffs, restructuring and downsizing of the organizations as the firm may undergo drastic changes. The theory streamlines hardware- structures and systems. The leadership involves top-down approach that involves low involvement of the managers or lower levels. The drastic action requires clear, comprehensive and common plan of action in process with specific deadlines. The reward system is primarily financial in nature and the employee compensation is linked to financial incentives[6].

Organizational dynamic refer to the process of continually strengthening resources and improving employee performance. Firstly, the senior management set measurable goals that shall determine decisions and future actions. In change through drastic action, the management defines the departments and divisions for all the regular duties. Further, goal execution involves allocation of resources by the top management. The skills and schedules of employees is enhanced in a manner that the drastic change requirements are met. Authoritarian leadership style is followed to drive innovation and performance among employees. Under the authoritarian leadership style, the employees are expected to follow the systems and processes without questioning the authority.

Drastic change is revolutionary in nature that is rapid and is planned by a limited people. The organizational culture may be conflicting and unsavoury. The employees who tend to resist change shall suffer. The management may fire the employees and replace them with the new ones if it fits and meets the purpose of existing growth stage of the organization. The drastic change management process is often painful. Drastic change is also referred to as unplanned change which is a result of unforeseen circumstances. Following the motivational theory, the autocratic managers tend to motivate the employees by establishing confidence in the manager's ability to make accurate and productive decisions. Employees become comfortable with the manager's knowledge of the industry and the company processes and derive motivation from the manager's ability to keep the department focused on achieving company goals. Autocratic managers do not value employee contributions, preferring to manage operations with zero feedback from their teams. They also tend to supervise their teams closely to ensure deadlines and goals are being met.

As the change management is drastic, Kurt Lewin’s change model may be applicable. There are three simple steps in implementing change through drastic action. When the senior management recognizes the need for change, it may unfreeze the change. Naturally, the employees resist change as the change is unplanned and drastic in nature. The senior management must conduct communication so that the employees feel that the change is urgent and necessary. In the next stage, the employees learn new behaviours and processes of thinking. Support and education are critical and it must be carefully planned and executed. In the last stage refreezing, the change model must be refrozen based on the new processes, status, structure and people that is cemented into the culture. The employees must be given positive rewards and their individual efforts must be acknowledged so that they are motivated to repeat the behaviour if required[7].

Implementation Strategies

The second approach is recognized as evolutionary change approach. In this type of change, the change is incremental and decentralized that involves lasting shift with less upheaval. As the name suggests, the change management involves continuous improvement or changes in systems, processes or procedures. The evolutionary change approach can be related with Theory O. In this theory, the changes are based on organizational capability. The main focus of the theory involves process of changing, gaining feedback, making a critical analysis and implementing further change. It involves development of human capability and culture through individual and organizational learning. The Theory O involves all the employees using bottom-up approach requiring emotional commitment from them. The bottom up approach is use to transform the behaviour, culture and attitude of the employees. The change in this approach is more emergent and evolutionary. This change management approach involves innovative work processes, culture and value changes. As the employee involvement is high, the external consultants are not hired or relied upon. The employees tend to analyze their own solutions. The reward system involves skills-based pay system and profit sharing plans. These compensation systems do not drive goals but support the goals of culture change.

Applying the theoretical elements of organizational dynamics, evolutionary change involves proper planning that is actionable foundation for all their regular duties. This form of change management involves transformational leadership style in which the leader envisions or guides the employees through inspiration to execute change. The management can apply Herzberg’s two factor theory of motivation. In this theory, the factors that create job satisfaction and job dissatisfaction are identified. The hygiene factors refer to the factors that cause dissatisfaction in its absence such as compensation, working conditions, job security and others. Motivation factors are the ones that create satisfaction if they are present in the organization such as recognition, achievement, personal development and responsibility. Therefore, for evolutionary change management, the senior management must maximize the above identified motivation and hygiene factors so that the employees are adaptive towards change management[8].

For changing the culture, systems and processes continually, Kotter’s eight-step model can be implemented for successful change management. This theory helps in improving the process in a logical fashion. In the first step, the potential opportunities or crises may be discussed and catalyst for change shall be created. A powerful coalition may be formed so that the employees develop strategies to achieve vision. Vision shall be created that would help direct the change effort. Vision shall be communicated using the bottoms-up approach. The obstacles to change shall be removed and employees must be motivated to encourage risk taking. The sixth step in Kotter’s model is to create short term wins. This shall enable the employees to change their behaviour and attitude slowly. The seventh step is to build on the change. The management must keep communicating the vision, removing obstacles, and keep delivering benefits. Lastly, anchor the change. The senior management must embed it into organizational procedures, operating models and into people’s day to day work.

Conclusively, both hard and soft approaches of change management are necessary. Both these approaches can be combined. Both hard and soft culture can be transformed by freeze pay-rises, greater transparency and less hierarchical standards. There is no one way to effect change. The examples and theories used in the above paper illustrate how organizations can implement change through drastic action or evolutionary change. Change management s a tool that focuses on how teams and people are affected by transition. Multiple theories of organizational behaviour, organizational culture, organizational dynamics and change management are considered. In case of change through drastic action, change is forced and mandated by the senior management. The leadership involves top-down approach that involves low involvement of the managers or lower levels. The skills and schedules of employees is enhanced in a manner that the drastic change requirements are met. As the change management is drastic, Kurt Lewin’s change model may be applicable. In evolutionary change approach, the change is incremental and decentralized that involves lasting shift with less upheaval. The management can apply Herzberg’s two factor theory of motivation. For changing the culture, systems and processes continually, Kotter’s eight-step model can be implemented for successful change management.

References

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