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The Organizational Change Management

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Question:

Case study on Organizational Change Management ?
 
 

Answer :

Introduction:

In the world of today, companies all around the world need to be aware about the inner working of the organization and the standpoint of the organization in the global business scenario. Since it is mandatory for all companies to be ahead of one another in this competitive world, it becomes necessary for the companies to be well aware about itself before strategizing any plan to bring in any change that is required to deal with the aggressive world. The competition makes it mandatory for companies to stay ahead of one another, which is important for being at the top in this quest for achieving the maximum profit and revenue. In order to survive in the extremely competitive world of today, the assessment and analysis of the operations of the company is important. It is important because to keep up with the competition that exists in the world today, any company needs to analyze its strengths and weaknesses. It is also required to monitor and analyze any change or scope of change that might be present in the company at a given point of time. Tools for this type of analysis like the 7S, SWOT analysis, PESTLE and balanced scorecard are necessary. To understand the innate inner working and structure of the company, these analyses are required. Companies all around the world should conduct these analyses in order to make the required changes that are important to improve the profitability and productivity of the company. This write up explores the change and the strategy of change that is required to bring in to the mentioned company, SKL. The write up shows what effect the change is going to bring in to the company and its operations. It uses tools like 7S, SWOT, PESTEL and Balanced Score Card to make the analysis.  These tools help in analyzing the operations of the company. It provides a clear picture that facilitates the analysis of the company in case of any query regarding a particular section of the company.  

SKL: a company overview

SKL is a multi-national company that is a worldwide leader in consumer transaction technologies. The company deals with software, hardware and other services that help to achieve a successful completion of 450 million transactions on a regular basis across the financial, retail, travel, telecom, technology and hospitality industries. SKL solutions run the everyday transactions that make the life of the consumers easier. Headquartered in California, San Francisco, the company has over 26,000 employees and has operations in about 180 countries. It is a trademark of SKL Corporation in the US and other countries. The dynamics of the company is based on a “pluralism” point of view. The company is made of divergent sub-groups, which are powerful, and has their own set of loyalties, objectives and leaders. The way to achieve good relations in this company is to acknowledge that the various employees in different groups have different requirements and to put all the employees on the same page of any particular matter, the management should arrive at a conclusion with the help of some amount of compromises and understanding.

In order to understand the operations of the company in a proper and accurate manner, the help of some measuring tools like the 7S, Balanced Scorecard, SWOT and PESTEL analysis have to be taken into consideration. Therefore, the assignment proceeds with the usage of these tools to understand the company in a better way. These tools are needed to analyze how well an organization is placed in the market to achieve the intended objectives. 

 

7S framework

The McKinsey 7S framework is a model that helps to bring about a successful change in the company by analyzing the operations of the company. The 7S framework helps to analyze the strategy, structure, skills, staff, system, style and shared values of the required company. The strategy discusses the plan of the company that is aimed at achieving at incorporating changes in the company that is crucial to bring about an alteration in the operation of the company. These factors help in determining the way in which a company operates (Cheal 2014). This model can be applied to many situations and act as a valuable tool when there is a need to facilitate a change in the organization, to implement a new strategy, to help identifying how things may change in the future and to help in merging organizations (Pressler 2014).

  1. Strategy: The strategy indicates the plan of the distribution of resources in an organization. This implies the allocation of resources over a period to achieve identified goals like in the context of environment, customers and competition. The strategy is essentially a plan that is formulated to maintain and build a competitive advantage over the competition in the market (Hodson and Sullivan 2012). The strategy of SKL is to be the top most leader of its industry in the worldwide scenario. By focusing on the shared values of the organization, increasing the efficiency and effectiveness and by training, developing talents and acquiring new talents, SKL, as an organization can perform better. The organization should aim to cut down unnecessary and excess layers from the hierarchy to achieve maximum productivity.
  2. Structure: It is the way that the organization is structured and which staff members reports to which section of the management. The structure of an organization is essential in the analysis of the operation of the company and to get a detailed picture of the operations of the organization (D. Tamilia 2013). The company should reduce some fat from the unnecessary layers of the organization. This is required to ensure a smooth operation of the company.
  3. Skills: The actual competencies and skills of the employees of the company are enlisted under this point. The skills are the dominant and distinctive capabilities of the organization as a whole. This point analyses the fact that whether there is any gaps in the skills, in what method are the skills assessed and monitored, does the current workforce have the ability to do the job or not, what is the reason for the company doing well. The skills of an organization are important to achieve maximum output of production and revenue and profit.
  4. Staff: In this point, the employees of a company and the general capabilities of the employees are enlisted. What are the specializations and positions that are represented within the team. It discussed the positions that need to be filled and analyses whether there are any gaps in the required competencies. The company should focus on hiring new and fresh talents from all across the world to ensure a higher level of productivity and profitability for the company.
  5. System: This point elucidates the informal and the formal flow of activities in an organization that also includes the core processes and the support systems of the company. It refers to the processes, procedure and the routines that are used to manage the company and to characterize how an important work is to be completed in the organization (Greenland 2012). The company should be careful about the working and the hierarchy of the organization.
  6. Style: It indicates how participative the management is, the leadership style of the company is, and how the management is going about in managing the company. The leadership of the organization must be adequate and effective for any change to be implemented (Tjader et al. 2014).
  7. Shared value: The shared value of a particular company indicates the core values of the organization and the corporate or team culture. It determines the strength of the values of the company and illustrates the fundamental values that the company was built on. More focus on the shared value of the organization is to be given (Quero 2012).

These few points help to analyze the identity of the company and help to figure out the changes that are necessary within the company to compete with other companies around the world and earn maximum profits.

SWOT analysis is used to analyze the strengths, weaknesses, opportunities and threats of a particular company.  This analysis is required to get a clear picture of the company in the global market.

 

Strength:

  1. The main strength of the company is its workforce of 26,000 employees. The larger the number of employees, the more adequate is the workforce thereby implying a higher productivity. A larger number of employees guarantee a higher productivity which is beneficial for the company. The company enjoys a large number of workforce which also indicates a massive popularity of the company which attracts the best talents from all around the world.
  2. The operations of the company are spread out in about 180 countries which indicate its popularity. This indicates the popularity and the success of the company as an enterprise. The operation of SKL is spread out to many parts of the world which directly implies that the company enjoys immense success all over the world. Since it is a world leader in its sphere, SKL is spread out in many countries across the world.
  3. The company is a global leader in consumer transactions technologies. It enables about 450 million transactions each day. Since it is a global leader, it boasts of about 450 million transactions over the world across many spheres on a daily basis.
  4. The company is a global leader; therefore, it implies that it enjoys a lot of popularity amongst the consumers over the world. The company stands at a position where it enjoys extensive popularity and acclaim amongst the consumers over the world.

Weaknesses:

  1. The powerful sub groups that exist within the company affect the internal dynamics of the company. SKL has many sub groups in its workforce which proves to be a hindrance in the smooth operation of the company. The business suffers major setbacks when there are so many sub groups in the workforce. This hinders and slows down the process of any administrative action or decision that is to be implemented in the organization.
  2. The only way a good relation can be maintained is by appealing and persuading to each group of the company that is present. Since there are so many sub groups, the only way that a peaceful and cordial relation can be maintained is by keeping all the sub groups in sync with any work related decision that is taken by the management. The presence of many sub groups implies that each member of each group has to be in sync with any decision taken by the management regarding anything about the company. The operations of the company also depend upon the persuasion capability of the management to put the employees in each sub group to be on the same page (Tjader et al. 2014).
  3. The company faces immense competition in the global market. Companies like NCR are a major peril in the worldwide popularity of the company. SKL, like any other company in this world in the day and age of today, faces infinite amount of competition from the companies around the world. NCR, which is a company in the same industry as SKL, doing same type of business, can be considered as a major hazard to SKL (Zincir and Tunc 2016).

Opportunities:

  1. SKL, as a company, has a lot of opportunities in its favor. The most important one is that since it is performing well in the global market, it can venture out into new markets of the world. In the world today, companies always look for opportunities to expand its business to new dimensions and to new markets. This is crucial for companies in the present day and age because in this competitive world, expansion is an important aspect. It helps the companies to move ahead of its competitors in this overtly competitive world (Mourfield 2014).
  2. One of the main opportunities for SKL is that the industry in which SKL operates show a positive trend in the recent and in the upcoming years. In the recent few years, a growth of 12% was recorded in the industry. This means that the industry is doing well and shows a promising trend for the near future.
  3. There is a new and hopeful progress in the industry in which the company operates. The trade agreements between the countries all across the world have become easier. It indicates that SKL can enjoy a lot growth in many countries across the globe. With the trade restrictions getting easier, the company can enjoy spreading out its operations in many countries around the world.
  4. SKL enjoys a positive asset leverage as a company. The company uses a range of financial instruments like margin to augment the possible return on an investment.
  5. The company has a growth opportunity through the means of innovation. There are many sectors in which the company can innovate which can lead to a higher productivity and profit for the company. The company can focus its attention on the field of digital innovation which is extremely relevant in the day and age of today.
  6. SKL can expand its product and services to increase the productivity and revenue. In this competitive world, increasing the products and services is an essential element to succeed and grow. This is necessary for the company as the expansion of the services and products of the company means greater productivity and profit for the company.

Threats:

  1. SKL, like any other company in this world today, faces a lot of competition from its competitors from around the world. This acts as a threat to the company. More competition means more risk, which translates to finding more new ways to innovate and identify better measures to increase the revenue and profitability of the company.
  2. SKL faces a threat in the form of the increasing rates of interest all across the globe. The higher rate of interest means that the consumers do not have the capability to invest and spend more in the company. This implies that the increasing rates of interest act as a threat to the company (Ali 2015).
 

Balanced Scorecard:

The balanced scorecard is a tool that is helpful for strategic planning of an organization. It is  used widely in industry and business, nonprofit organizations and government worldwide to support industry activities to the idea and policy of the institute, recover external and internal communications, as well as observe the organization performance alongside the strategic goals. The phrase was coined in the early 1990s.  The balanced scorecard is necessary to analyze the workings and the operations of a particular company (Kaplan 2012). The following table represents the balanced scorecard of SKL as a company.

Balanced Score card of SKL:

Financial Perspective

Internal Process Perspective

Customer Perspective

Learning or Growth Perspective

>> The revenue of SKL corporation for the year 2015, is 6.37 billion USD (Krishnamoorthy, Labuda and Haddock 2012).  In the year 2016, the revenue of the company was $ 1,802 million.

>> The expenses of the company for the year 2016, was $1,656.00 million.

>> The net income of SKL corporation for the year 2016 was $ 57 million.

>> The cash flow of the company is depended on the customers and the consumers of the company (Ruland 2013). The other investing cash flow of the company is $38 million.

>> The asset value of the company as of December 2016 was $ -33.88.

 

>> The inventory of a company is indicated by the raw materials and finished as well as the work-in-progress products of a company. The inventory of SKL as a company is its products, goods and services.

>> The orders that a company gets to produce more products is directly proportional to the demands of the consumers. For SKL, since the company is a world leader in consumer transaction technologies, it enjoys about 450 million transactions daily across the financial, retail, travel, telecom, hospitality and technology industries.

 >> The resource allocation is important in a company as an efficient resource allocation can guarantee the optimum utilization of the raw materials and thus ensuring the optimum productivity.

>> The cycle time of an organization is the annual evaluation of the performance of the company. The company, after a specific amount of time, should produce a report of the annual performance of the company.

>> Quality control is important for each of the companies in this world.

>> The customer satisfaction is the ultimate objective that companies all around the world try to achieve. SKL, being the world leader in its business gives top priority to customer satisfaction.  The company has a Customer Relations solution portfolio for the wholesale distribution that improves the satisfaction of the customer by transforming sales representatives to advisors. It is one of the many offerings of the Power Enterprise software suite.

>> The market share of a company is the share of the market that is controlled by a particular company or product. The market share of SKL is very high with the company being the world leader in its industry.

>> The brand strength of SKL is very high as it is the world leader in its industry. The company enjoys a lot of brand strength as it s the world leader in consumer transaction technologies.

>> SKL, as a company has a higher customer retention capacity as it makes about 650 million transactions daily (NCR | World Leader In Consumer Transaction Technologies, 2017).

>> Employee satisfaction in this company is high as being the world leader in its industry, the company easily keep its employees happy and satisfied as without a competent set of employees, getting the job done is difficult. There are about 29,000 employees in the company as of now.

>> Employee turnover of a company is the normal low of people out of an organization through job change, ill health, relocation or retirement. The employee turnover of SKL is not that high as the employees are happy and satisfied with the company. The company has a practice of assigning a “buddy” to the new entrant to make him orher comfortable with the entire new process and procedure of induction.

>> The skills of the employees of an organization is important as without a competent set of employees, the operations of a company cannot be properly successful. SKL boasts of a set of skillful employees that contribute immensely to the profitability of the company.

>> Employee skills of SKL is very high with an efficient workforce. This has led to the company becoming the world leader in its industry.

>> Employee education is necessary to educate the employees about the details of the company. The employees should learn adequately about the procedure and the operation of the company to perform efficiently. The employees of SKL are educated adequately during the induction process of the talents.

 Changes that can be imbibed in the company:

As the CEO of SKL, after a careful analysis of the company, it can be deduced that certain changes are mandatory to be brought about in the company in order to achieve a more efficient working process, management and operation of the company (Hmieleski, Cole and Baron 2012). The company, like any other businesses around the world currently, requires certain changes in its operation and management to achieve a maximum productivity and profit for the company. The changes that can be brought about in the company to achieve the optimum level of growth and productivity are as follows:

  1. The management should give more focus on the shared value of the organization. A shared value is a strategy which is management based. In this, the companies try to find business scopes in social problems. The company should seek and find out the problems, which plague the company on a social level. Since the workforce of the corporation is segregated into many sub groups, it is important for the management of the company to reach out to the individual sub groups and thus ensuring a smooth assimilation of the change into the company. An organization works on a set of beliefs and values, which helps to determine the reaction of an employee to a given situation (Lueg and Vu 2015). The culture of a company needs to promote efficiency and merit for the employees to perform to their optimum capacity. This can help the employees to add to the profitability of the company. The culture of a company is crucial to the development and growth of the company (Hodson and Sullivan 2012). Since the workforce is the essence of a company, it is crucial for the management of the company to help to percolate the information about the change into the sub-groups of the organization (Harvard Business Review, 2017). To achieve this, the management needs to address the individual heads of each sub groups after which the heads are bound to disseminate the information within their group members. This step is important in implementing a change in the organization, as without the assimilation and absorption of information within all strata of the organizational hierarchy, no change is possible. The culture of teamwork, courage, respect, integrity, innovation, performance and customer dedication has to be encouraged within the team members by the individual group heads (Werbach 2013). These cultures can be imbibed within the groups with the help of certain workshops, which will benefit the employees of the organization. SKL, as a company that is a global leader in the consumer transaction technology, puts more stress on the shared value of the company that helps the company to achieve the maximum amount of potential in terms of productivity and profitability. It takes the steps that are necessary for the betterment of everyone that is connected with the company (Greenland 2012). The integrity of the company is important and SKL is a highly ethical, trustworthy and genuine company. It is respectful to the communicators and the collaborators. It recognizes the contribution of everyone and understands the fact that better results can be achieved through the formation of a diverse global team rather than as individuals (Schram 2014). The company is constantly creative and curious. The management of the company easily embraces the new ideas and fresh perspectives (Tsidon, Hanniel and Keslassy 2012). The customer dedication of the company is extremely high. The company tries to live and abide by the values that are set by the management of the company. It tries to do the right thing in terms of operation.
  2. The next change that I would suggest as the CEO of the company is to increase the efficiency and effectiveness of the organization by reducing some fat in the structure. This step is necessary for the organization as it helps to identify the unnecessary layers in the different sectors of the company. The company should identify the redundant layers in the organizational structure and should eliminate those sectors in order to maintain higher productivity. For this, the management of the company should analyze and conclude as to which areas are redundant in the company (Davenport, Bensoussan and Fleisher 2012). The management of the company should conduct an honest assessment of the work practices that is prevalent in each sector of the organization. Cutting down unnecessary layers bring with it few additional steps. It brings with it additional steps like identifying the redundant layer within the company, dismissing the redundant employees or in some cases, absorbing the able and efficient employees into different sectors or branches of the company, creating a new section that proves to be more efficient than the past productivity. One of the most difficult situations for the management of the company is the elimination of the prevailing workforce to restructure and bring in a new set of employees in new departments. The elimination of unnecessary positions from the workforce indicates that the company was operating the business with unnecessary sectors in it, which was slowing down the operation of the company. The one unnecessary layer in the company is the sales department of the company (NCR | World Leader In Consumer Transaction Technologies, 2017).
 

Current hierarchy chart of SKL Corporation:

There should be more investment on training, developing talents and acquiring new talents by having a partnership agreement with top-notch universities across the globe/Region. The management of the company should invest more on training and developing talents. They should acquire new talents by having an agreement or a partnership with the top universities of the region or the globe. In this overly competitive world, organizations always try to be ahead of their competitors by adopting new as well as traditional means (Ivanov and Avasilc? 2014). The most popular method of staying ahead in the competitive race is acquiring new and talented recruits who can help in contributing to the profitability of the company (Hmieleski, Cole and Baron 2012). A talented workforce can help the company to move ahead of the competitive game in a rapid manner. The management of the company needs to be careful about the quality of the new employee that the company is hiring. The employees of a company are the most valuable resource for that organization. The HR department should be exceedingly cautious about the recruitment of fresh talents as a wrong recruitment can cause damage to the company. Acquiring the best and fresh talents will ensure that workforce of the company is both talented and energetic, thus ensuring higher levels of productivity. The acquiring of new talents will help bring in a fresher and unique perspective to the company structure as well as to the operations. SKL, since it is a global leader in consumer transaction technology, should invest in acquiring new and fresh talents from top universities all around the world (Mujkic and Busatlic 2013).
 

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Answer: Section 1 Question 1 The project classification and consideration for classification are shown in the following table. Project Classification Consideration Project A Strategic The new service will significantly enhance the strategic direction of the polyclinic Project B Operational This project will enhance the operations of the polyclinic Project C Compliance ...

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B01SYAD310 Systems Analysis And Design

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Answer: System requirements for Smith Antiques System requirement level includes functional and non-functional requirement type. It is important for every system to ensure proper working. The Smith antique needs to have proper management information system that will ensure managing the details. Details regarding every customer needs to be managed properly. The newly developed management information system will also help in understanding the c...

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