Introduction
Perhaps, every organisation wants to initiate a management system and strategy that could maintain the organization's capability, strength and competitiveness. It is important that the management team and the organisation per se should always open their mind for changes that they might encounter in order to cope and adapt to the latest development that are happening within and outside their environment. Thus, this paper will discuss and evaluate a large-planned organizational change that would help Lakeland Wonders to achieve its mission and to survive with the stiff competition. Specifically, this paper will study the organizational change that would be imposed in Lakeland Wonders. As stated, this paper had selected Lakeland Wonders based in Minnesota. This
company
had
recently
adopted
a
particular change
management brought by their new CEO, Cheryl Hailstorm. This new CEO has come aboard with full of fire and enthusiasm to change things quickly with the objective of making dramatic improvements in the ways work is done. However, issues like pace of change, method of implementation, resistance to change, organizational culture, accepted norms and practices, acceptance of new leadership, human dignity and other problems at work were perhaps not carefully considered and tactfully handled. The company Lakeland Wonders produces high-quality wooden toys. It has three plants in Minnesota with almost 5,000 employees. The company has applied a certain change management focused on offshore manufacturing. Before planning for this particular project, the company had made an extensive evaluation of its facilities, manufacturing capabilities and Labour management.
Analysis The CEO, Cheryl Hailstorm
It cannot be denied that the only constant in this world is change, many people especially those in the business arena find themselves normally adapting. In this manner, the Lakeland Wonders is never an exception. This is because change can
bring about so much improvement in certain aspects. In many ways, change can make work easier, pave the way for future innovations or generally improve people’s lives. Similarly, change has been adopted by various work organisations for varied reasons. Known as change management, companies and businesses are integrating change into their work systems so as to be competitive and more efficient. Due to the problems and the target growth that have been distinguished by this company, the CEO, Cheryl Hailstorm has decided to create a plan in relation to change of management. As mentioned earlier, Cheryl Hailstorm wanted to employ change management for facilities, maintenance unit, manufacturing process and human resource
management.
management
process
in
Primarily, order
to
her
major
enhance
objective
their
target
is
to
utilize
market
by
change venturing
to offshore manufacturing and to satisfy their clients. However, Cheryl Hailstorm as new CEO should be aware of the culture of the company. She should have respect to the Lakeland Wonders history. Actually, she uses too autocratic, threatening, coercive leadership since she wanted her people to follow her way without getting people involved. She certainly needs to get the cooperation of the people involved in order to have successful changes in management. With regards to ethical issues, Cheryl Hailstorm should be able to take considerations of what would be the reaction of their employees to the changes that would be imposed. Furthermore, she should have seen to it that her employees have undergone critical explanations about the reasons why the change of management system and strategy is needed for a certain aspects within the company.
Cheryl
Hailstorm should also give the employees enough time to master the skills and proficiency of their employees from maintenance, communication services and human resource management in utilising the changes made by the organisation. This is done by providing them enough trainings and orientation to explain the changes made. Actually, the leadership skills of Cheryl Hailstorm are important for the company. The title of being chief executive officer can be utilized by any individual however possessing the title does not automatically makes a person a leader in a true sense. According to Haddock and Manning (1995) being a true leader must be obtained through inspiring and motivating people to give their best and a successful leader commits herself to her organisation or group and nurtures the same kind of commitment to its members. In addition, according to Haddock and Manning, a successful leader has the following traits:
•
Knows her job and her field thoroughly.
•
Stays on top of current development, trends, and theories.
•
Knows her people, including their strengths, weaknesses, hopes, and goals.
•
Shares a vision of service, excellence, ethics, and achievement with others.
•
Demonstrates by her words and actions strengths of character and integrity.
From these traits presented by Haddock and Manning (1995), Cheryl Hailstorm should carefully evaluate herself and made the possible changes to become a successful CEO in Lakeland Wonders.
Reactions to Changes
“Workers are assets” has become the dominant symbol of late twentieth-century management. In some ways, it represents a worthy elevation of employees to the status they deserve. People are, after all, the chief engine of prosperity for most organizations. What other factor of production contributes so much to strategic success? In other ways, however, the asset symbol falls short of fully expressing the value that people bring to the workplace and the control they exercise over its investment. Ands: Outsourcing could mean lost of jobs Company’s image suffers if outsourced. She did not provide a solution Delivery concern; Company going offshore to establish a base with no certain terms– don’t do thing so fast. She needs to articulate strategy, vision, mission, short term & long term objectives & goals Distrust Poor communication Unpleasant surprises Lack of openness
Fear of unknowns
Management Approach
In setting up an offshore manufacturing plant, different aspects of management must be considered and given importance to be able for the company to come up with good plans for implementation. Because Lakeland Wonders needs to be as productive as possible to utilize their precious resources, to meet their customer needs, and to stay competitive with similar organizations, they must adopt and implement a good deal of management. Management is the principal factor determining the productivity of labor, thus, the compulsion for higher productivity in business organizations demands highlevel manpower resources. Therefore, through operations management concepts, organizations will be able to effectively implement management strategies that would be relevant to their plans of putting up a call center. Primarily, operating plans involve planning, with a given emphasis on allotting a specific period or time for a specific task. In setting up an offshore business, thorough and careful planning must be made to identify the different several risks that must be given consideration for a more effective operation. Theoretically, operational planning deals in aggregated or average values of variables in the system, such as product demands, equipment capacity, standard costs, and inventory levels (Thereof 1987). Secondly, organizing is another important aspect to take note of, and involves the approach of total quality management or TQM. With TQM, the whole organization can manage change and set their own agendas with the plethora of new external pressures. This is another relevant approach for setting up a call center, for it aims to create a quality culture, which has a goal of delighting their customers (Sallies 2002). A third aspect to point out is the importance of resource allocation, which dictates or restrains the choice of goals and strategy (Ko et. al. 2006). Resource allocation and budget is an important aspect to take note because in putting up a call center, management of resources would determine the extent of technology and workforce that the call center may have, thus, money and budget determines the capability of the company to provide extensive services and features to its consumers. Next aspect that must be given importance is monitoring and evaluating, which includes
knowledge of how to improve performance given institutional considerations and constraints (Field, Holden and Lawler 2000). Monitoring and evaluating must be developed prior to setting up a call center, to ensure the smooth and flawless operations of the outsourced department. Lastly, controlling must also be considered, for this involves the adjusting of plans to predetermined objectives as they are executed, and involves distinct activities to measure actual performance, compare performance with standards, and take action to correct deviations when required (Howard and McKinney 1998). With the effective process of controlling, the supposed call center would have an effective operations that would enable the company attain its desired implications. Therefore, the role and use of such management issues and aspects would enable the whole organization, to efficiently and effectively plan its actions in setting up a call center. Thus, before Cheryl Hailstorm pursues her plans, she need first to won over the senior management support. She must be frank and talk to the senior management individually and make them understand survival or else acquired by others. Cheryl Hailstorm must also show concern to the union and respect their culture. She should get people involve of what she does. By appointing a team and empower them to take decision would possibly earn respect and good working habits from employees and later on start talking of the vision. As previously discussed, the leadership style of Cheryl Hailstorm should be changed to the type in which it is appropriate to the company. In addition to this, the unforeseen problems that Lakeland Wonders might encounter
are
the
cultural
differences
of
its
possible
employees
if
offshore
manufacturing was initiated. When assessing the interaction between culture and empowerment, the company must be able to identify and understand those subcultures that might engender a work environment more or less empowering than the larger organizational system (Wilkins & Dyer, 1988). The management should be able to develop a thriving organizational culture and a stronger organization, providing their needs and the things that they deserve in order for them to be motivated for their sake and for the organization’s sake as well. In addition, elements such as work processes, organization design, career path, performance management and a compensation program are part of human capital management strategy and a plan to ensure continuing success. The change management process imposed by the company must have been seen that there may also encounter problem with some of their stakeholders like employees, customers and others.
Also, in managing people, the human capital management should also incorporate a governance process to ensure equality among employees. Hence, even though managing people in organization is the most difficult responsibility to be taken, it is also the most challenging part that if given enough attention, focus and consideration, this would enhance the employees loyalty and hard work that may not only benefit them but as well as the organization may it be a non-profit or a profit oriented organization. In general, people can give more than what is expected if the management were able to provide them extra hand and minds and if the management give them extra time, extra information and extra people in order to do their job properly. This study was conducted in order to evaluate the efficacy of change management in an actual working organisation as well as to identify the various effects of change to individuals. The Lakeland Wonders might possibly implement an offshore manufacturing business. Specifically, these general objectives were integrated in the company operations through the addition of technological facilities, creation of communication centres and designation of a human resource staff. Actually, change of management is not bad as long as the changes made can really enhance the competitiveness and strength of an organisation. It is effective, if and only if, a thorough investigation and evaluation of the company’s performance has made. And if the study suggests that there is a need for change, then that is the only time, the organisation should imposed required changes to be done. Because, change of management system is very critical, one wrong move, the company, might faced its biggest downturn instead of strengthen its business portfolio and survive to the stiff competition in the business arena. It is recommended that any organisation, who will undergo some changes on their management system must see to it that the changes are well planned and implemented carefully, because this will the basis for the success and/or failure of any organisation.
Remedial Steps
Ands: Ask board to reduce target, cite people concern & culture. Go forward, talk to people, and get them excited.
Use reward & recognition Team effect Include people from the union
From the discussion, it can be understood that the personality of leaders and their implementation of leadership styles are determined their culture. The leadership style of the leader depends on his or her culture and personality, and thus, depends on the norms of the society and the culture of his or her subordinates. In addition, the FiveFactor model of personality does not determine the type of leadership that a certain leader implements in his or her organization. It simply shows that it serves as an informative tool that emphasizes the important role culture and personality play in leadership implementation. As a recommendation, it would be essential if one will be able to effectively and efficiently assess the type of leadership that must be implemented. There is no general type of leadership style that is applicable to every organization in any culture or country. Because of this, a leader must be able to evaluate the nature, the needs, abilities, and the performance of its employees or colleagues to effectively adopt and implement a suitable type of leadership, depending on their culture, societal norms, and the individual personality and characteristics of the leader.
Conclusion
Change management is a process wherein all sectors in the society undergo. It is a significant process because it allows the organisation to create decisions that will be beneficial to the employees and the company. Moreover, organisations that are accept changes are usually more successful compare to companies that resist it. In a globalize market, new technologies and procedure are emerging rapidly, in order to keep up with this progress a company must be willing to adapt to management changes. Lakeland Wonders needs change management particularly with its marketing, inventory, and
performance of the employees in order to keep up with the competition that rapidly becomes a huge threat in the organisation. Addressing changes particularly in the human resource will directly benefit the company because the performance of the employees will either aid in the improvement or failure on the performance of the company. Investing in the human resource is important because they are the front liners of the organisation. Efficient front liners ensure the success in winning the battle of competition within the industry.
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