Your task is to choose two, and critically evaluate their usefulness to effect change for both a Manufacturing Company and a Service Company.
The essay highlights on the critical evaluation of two different change tools for their effectiveness in a manufacturing and a service Company. The manufacturing and the service company that is chosen for this study are Apple and Centre Bank that is headquartered in USA. The two change tools that are selected for evaluation are – TQM (Total Quality Management) and the learning organization. Organizational change refers to the procedure in which the firm changes its strategies, technologies, structure and operational method to impact change within the company and effects of changes on the company (Anderson 2012). The organizational change might occur for distinct time period. This change in the organization has huge significance as it helps in building competition and enhances their growth. In addition, organizational change also permits the employees to investigate new opportunities, learn to develop skills and exercise creativity in varied ways that benefits the companies through increased commitment and new ideas. TQM change tools facilitate the companies to recognize, analyze and examine both qualitative as well as quantitative data in relation to business. The learning organization as change tools helps learning of the workers so that the companies can transform itself (Anderson 2016). It mainly develops owing to pressures facing the present organizations as well as enables them for remaining competitive in business environment. The scope of this essay is to elucidate on the significance of change tools on the organization.
TQM as change tool and its working
TQM refers to the management philosophy that seeks to amalgamate all the functions of organization including- marketing, design, customer’s service, finance and total production etc to concentrate on meeting the requirements of customers and the organizational objectives. It is basically concerned with improvement in work that ranges from high strategic planning level and decision making to the execution of job elements. The organizations implement TQM for managing quality, quality control, quality assurance and quality improvement. The primary step in the implementation of TQM is to examine the present reality of the organization. They use TQM as strategy for instituting it at the business level for having the desired effect. This change tool works for improving the quality of goods and service and processes of operation (Shani, Pasmore and Woodman 2012). In the TQM effort, the staffs of the companies also participate to improve the culture in workplace. TQM works in the companies based on some principles that includes- total involvement of employee
Process centered- The fundamental part of TQM basically focuses on the process thinking. In this process, the inputs are taken from suppliers and then transforms it into output , which are delivered to customers.
Communication- This involves strategies and method used for motivating the employees at every level. These elements are vital for TQM that several companies define them as core principles at which they operates (Goetsch, David L and Stanley 2014).
Integrated system- Although the companies consist of numerous functional specialists organized into departments structured vertically, it is the horizontal procedure interlinking these functions that becomes the focus of TQM.
Strategic approach- The approach usually includes formulation of the strategic plan, which amalgamates quality as basic component.
The learning organization as change tool and its working
The learning organization as change tools has been commonly hailed as panacea for the success of company in the dynamic economy. This tool aims to bring about innovative methods, new ideas and debate issues. The implementation of this tool helps to enhance the change pace within the company. It also helps them to improve the organization’s image by helping them to become more customer oriented (Santos-Vijande et al. 2012). The learning organization is mainly characterized by involvement of total workers in the process of collectively accountable variation that is directed towards shared principles. This change tool foster environment in which the individuals create the outcome that they desires. The main characteristics of the learning organization upon which it works includes- company’s structure,
Culture- The learning organizational change tool works on strong culture, which promotes openness and creativity among the members.
HR (human resource) practice- This change tool works according to HR practice that focuses on the provision of individual learning. This also facilitates in motivating the employees within the organization and improves their performance.
Leadership- The learning organization tool mainly depends on effectual leadership. The leaders of the company models openness, communicate vision of this change tool and provide empathy that is required to lead other individuals towards it.
Information system-The learning organization tool needs the information system for controlling the business operations and improves practices.
Similarity and difference between Apple and Centre Bank
The Centre Bank is locally owned community bank that is headquartered in USA. The service provided by this bank includes- relationship banking, decision- making locally, involvement of community and local ownership. The main features of this bank are providing exceptional service and products to the customers with reasonable fees. Being the community bank, they are mainly obsessed with consumer service, having best workers and taking care of their staffs. This bank has developed over the last few decades through successful implementation of TQM principles in the banking industry. Apple Inc is the biggest American multinational software and electronics organization headquartered in California. This organization has become the leader in technology sector by producing price worthy goods that possess huge value in account of technological design. The hardware products produced by this company includes iPhone smartphone, iPad tablet, watches, TV, iPod etc. In addition, this company also produces software products such as- macOS, iOS operating systems, Web browser etc. The products manufactured by this company are sold globally through their online stores, resellers and wholesalers. In the recent decades, this entity focuses on the expanding their business through utilization of advanced concepts of design and reengineering of products. The similarity between these two companies is to provide total quality service to their customers. These companies analyze their customers requirement in order to provide better service and manufacture product based on this. On the contrary, the difference between these two organizations is the implementation of change management tool within the business. This means that the strategy formulation by these two organizations differs from each other (Cummings, Thomas and Christopher 2014).
Application of TQM on the Apple Inc
This company applies integrated team work for improving their objectives including quality, timeliness and cost. They ensures steadiness in product delivery in line with specification of design, quality of product, launch process etc. TQM is based not only on features of product but also on consumer satisfaction and service level provided by them. It also involves both the external as well as internal staffs to supply chain for meeting their consumer needs at lowest cost. This organization adopts TQM with the support as well as commitment from their management by upholding consumer centric focus on their products, processes and services (Oakland 2014). The management of Apple ensures that their decisions in business comply with laws and regulations. Even their adaptive design also works for their competitive environment that demands flexibility to deal with changing circumstances (Kim et al. 2012). Moreover, this entity does their business in safe working situations, treats their workers with respect and also utilizes environmentally responsible production process. They also encourage internal teamwork within the organization for achieving TQM as well as competitive advantage against their rivals. In fact, they also formulate strategies in different section by focusing on their customers’ requirements. One shortcoming that occurs for application of TQM in Apple is that at times there occurs miscommunication gap between the managers and team, which in turn creates fear among employees. However, this lowers morale of the employees and total productivity in business.
Application of TQM on the Centre Bank of USA
The Centre Bank provides quality service through three ways that includes-
- Providing high level training to their employees
- Analyzing the requirements of customers
- Developing measurement systems for attaining regular feedback
One of the strategies applied by this company is provide training to the employees so that they can deliver quality service. They provide non- traditional training to their employees in which the branch managers mentor their employees. The managers coach their consumer service representatives as well as tellers after being coached by the supervisors. Their coaching program also involves videotaping participants during their role play. During these sessions, these employees learn about process of interaction with their customers for determining their financial requirements. In fact, during this interaction they pay special attention to the voice tone, attitude and facial expression of their customers (Bon, Abdul Talib and Esam 2013). The management of this bank also analyzes the requirement of customers through this process in order to deliver high quality service to them. This bank also adopts effective methods of gathering customer’s feedback in order to improve their service. This in turn helps to satisfy their customers and attain good reputation. As quality service arises from leadership, this bank strategizes to introduce leaders to help their employees make spot decisions regarding customer’s interest (Carter et al. 2012). One shortcoming of TQM application in this bank that occurs is production disruption. As the bank provides training to some of their employees, it reduces productivity and puts workload pressures on other employees. In addition, this also reduces the total output of other employees working in this bank.
Application of learning organizational tool on Apple
The learning organization mainly requires knowledge management for supporting distribution of knowledge and learning. As this learning organization occurs at higher level, it involves higher knowledge management (Rasula et al. 2012). Every organization requires both knowledge management and the learning organization in order to succeed in competitive marketplace. The linkage between this change tool and knowledge management help in creating new ideas for adapting to changes in organization. Apple encourages their employees to create new ideas and let them learn from their experience in order to be successful. Although they face several failures or mistakes in their product line, they continue to innovate new ideas in product. Moreover, they learn from this failure and improve it while manufacturing next product. This company also utilizes best practice in this change tool in order to understand which strategy is success and failure. This in turn helps them to have new idea for creating the product. The shortcoming that arises in this case is that few products of Apple did not achieve success in the market due to implementation of new ideas in products.
Application of learning organization on the Centre Bank
This bank in USA applies team learning in which this change tool and global functions in business is integrated under same roof. Through this change tool the bank make the decision relative to customer service and this bank. Moreover, the managers of this bank have the responsibility to implement this change tool within all divisions (Jacobs et al. 2013). The individuals within the bank have given the permission to share their vision with other staffs for creating the commitment sense to long term. In addition, this bank involves the staffs at all levels who have the capability of personal mastery for implementing this change tool. This learning organizational change tool aids personal mastery through creation of environment favorable to individual pursuits. However, this tool helped this bank to gain competitive advantage against their rivals.
The conclusion that can be drawn from the above study is that implementation of change tool impacts both positively and negatively to the organization. There are some of the vital factors that influences success or failure of the companies, which includes- lack of proper plan, poor management during the change procedure, mismatch between the entity’s context and change plan. Most of the organization around the globe learns lessons from their failure and manufactures product with higher quality as well as provides better services to their customers. Moreover, effective implementation of TQM and the learning organization change tool helps both the manufacturing and service companies to enhance their productivity and maximize profitability level. This change tool also aids the companies to improve their financial performance and attain good reputation in the competitive market.
Anderson, Donald L. Organization development: The process of leading organizational change. Sage Publications, 2016.
Anderson, Donald L. 2012. Cases And Exercises In Organization Development & Change. Los Angeles: Sage.
Argote, Linda. Organizational learning: Creating, retaining and transferring knowledge. Springer Science & Business Media, 2012.
Benn, Suzanne, Dexter Dunphy, and Andrew Griffiths. Organizational change for corporate sustainability. Routledge, 2014.
Bon, Abdul Talib, and Esam MA Mustafa. "Impact of total quality management on innovation in service organizations: Literature review and new conceptual framework." Procedia Engineering 53 (2013): 516-529.
Burke, W. Warner. Organization change: Theory and practice. Sage Publications, 2017.
Burke, W. Warner, and Debra A. Noumair. Organization development: A process of learning and changing. FT Press, 2015.
Carter, Louis, Dave Ulrich, and Marshall Goldsmith, eds. Best practices in leadership development and organization change: How the best companies ensure meaningful change and sustainable leadership. Vol. 18. John Wiley & Sons, 2012.
Cummings, Thomas G., and Christopher G. Worley. Organization development and change. Cengage learning, 2014.
Fugate, Mel, Gregory E. Prussia, and Angelo J. Kinicki. "Managing employee withdrawal during organizational change: The role of threat appraisal." Journal of Management 38, no. 3 (2012): 890-914.
Goetsch, David L., and Stanley B. Davis. Quality management for organizational excellence. Upper Saddle River, NJ: pearson, 2014.
Jacobs, Gabriele, Arjen van Witteloostuijn, and Jochen Christe-Zeyse. "A theoretical framework of organizational change." Journal of Organizational Change Management 26, no. 5 (2013): 772-792.
Kim, Dong-Young, Vinod Kumar, and Uma Kumar. "Relationship between quality management practices and innovation." Journal of operations management 30, no. 4 (2012): 295-315.
Oakland, John S. Total quality management and operational excellence: text with cases. Routledge, 2014.
Rasula, Jelena, Vesna Bosilj Vuksic, and Mojca Indihar Stemberger. "The impact of knowledge management on organisational performance." Economic and Business Review for Central and South-Eastern Europe 14, no. 2 (2012): 147.
Santos-Vijande, María Leticia, José Ángel López-Sánchez, and Juan Antonio Trespalacios. "How organizational learning affects a firm's flexibility, competitive strategy, and performance." Journal of Business Research 65, no. 8 (2012): 1079-1089.
Shani, Abraham B. (Rami), William A Pasmore, and Richard W Woodman. 2012. Research In Organizational Change And Development. Bingley, U.K.: Emerald.
Valmohammadi, Changiz, and Shervin Roshanzamir. "The guidelines of improvement: Relations among organizational culture, TQM and performance." International Journal of Production Economics 164 (2015): 167-178.