Change management case study analysis
The facilitation of faster and elaborate communication channels ensured that the staff improved their performance which meant that they were more productive because of the enhanced technological processes used to produce quality bus tyres. Additionally, the benefits of the proposed organization structure were the people that collaborated with the teams while using increased spontaneous communication and initiative; the procedures, rules and close supervision were limited (Rokeach, 2008, p.67). XYZ Continental adopted an organizational design that would enable sufficient communication between the managers and the employees. For instance, the finance manager of the company communicated directly with the CEO. This meant that the structure of the organization was different and unique based on the communication design. These radical changes were fundamental transformational reorientations that were usually initiated by the newly hired managers.
Ever since the change took place, the sales department in XYZ Continental showed a 15 percent growth rate for the full time employees. The company carried out a performance appraisal to grade the employees’ performance through the use of company objectives that were analyzed by the managers. On the other hand, reward and remuneration was used to give the staff targets based on their experience and job level so that they can achieve beyond expectations. The employees were also recognized based on their performance by being given awards which would encourage them to utilize the new technology needed to produce quality tyres. XYZ Continental opted to award the sales departments as well as the factory production staff because of the progressive work they were doing to ensure that the quality of the bus tyres remained high.
Such reinforcements are known as extrinsic because they are the rewards that are offered to employees by their superiors in order to increase the company productivity and due to the fact that they impact the environment and are valued for influencing the law of effect. It is essential to note that cultural change could take a long time but effective strategies for cultural change may be utilized to reduce the timeframe. Sibbet (2013, p.234) explains aligning culture to support is important especially if a desired change is needed in the workforce behavior. For instance, XYZ Continental required a professional culture that was customer focused and this required the staff to acquire professional behavior and skills. As a result, all the departments undertook all the company departments focused on undergoing full training programs that were designed to enhance communication awareness which focused on empathy and questioning.
XYZ Continental changed its culture and structure because of the unprofessional work practices that were managed in a bureaucratic structure which was performing below expectations as compared to the transformational, innovative, high performing and professional culture which is more focused on the needs of the customers. The company attained its objective of productivity, growth as well as change in culture but most staff became uncertain during the change process which means that there was insufficient planning. The lack of proper planning cannot be adequately explained but it is evident that communication or external agents should have been used to implement change. However, the company faced budgetary restrictions and it reduced the profits of the company; this is why change had to be initiated in the organization.
Productivity improvement case study
This case study has effectively explained the various theories of change and this increased the understanding of the main aspects of the change process. The Kotter model was essential in examining the process of change because it explains it in a radical manner. Alternatively, Lewin’s model failed to reveal a continuous process that could be used in situations of change management in XYZ Continental. However, the proposed process can be used to alter the continuous requirements needed for change.
Kotter introduces the first step as the creation of the sense of urgency. The company can assist its workforce to have the motivation to perform better. In the case of the company, it realized the sense of urgency when more competitors cropped up and advanced technology was introduced in terms of the construction of tyres. It is for this reason that the organization opted to hire managers and staff that were more skilled as well as ensure that the staff had the professional skills to use advanced technology to construct quality tyres.
Creating a guiding coalition in which a specific group is designated to lead the process of change. XYZ used newly recruited mangers to ensure that the change that was needed in the company was implemented. The managers had more skills and experience to lead the staff towards change by providing sufficient motivation and support to ensure the productivity of the company improved and increased the quality of the products.
The future is clarified in terms of how it will enhance processes that were done in the past. In this case, the company had a vision of ensuring that the quality of the materials used to construct bus tyres was improved and that the workforce performance and skills were sufficiently increased. Communicating a vision for the buy-in is the fourth stage because it makes sure that many people accept and understand the vision. XYZ Continental opted to offer new training to the existing employees so that they can have an understanding of the change that was being implemented in the company. The managers used effective communication to make sure that the employees understood the new vision of the organization.
Change management impact analysis
It is important to note that when it comes to leadership, it has two categories known as transformational or transactional leadership. XYZ Continental used both of them but mostly transformational leadership. The CEO desired a company that had increased performance, quality, and management practices. A soft management enhances the employee performance because they will voluntarily change in order to meet the company vision. However, XYZ Continental suffered immense loss because of the additional costs that were needed to train the existing employees so that they could acquire the skills and knowledge needed to improve the status of the company.
Based on Kotter’s model, transformational efforts may fail following any of the steps that he has described. The aspect of communication needs continuous reiteration as the change process progresses because the vision will be developed and set, collaborations will be established and so on. However, communication can never end in an organization because this is the key tool that can be used to ensure that all processes are executed effectively.
Nonetheless, if the organization fails to carry out the process of change effectively, this should not be taken negatively because each company has a different way in which it will receive change. The association between the XYZ change and transformation and culture, people, and process start with the entire change procedure. Process can be described as operations that are done during the treatment of the product (in this case the bus tyres). On the other hand, People illustrate the competitive environment in which there are many similarities and replications of products; most companies experience difficulty identifying sustainable competitive advantage. In this situation, people are developed and trained to comprehensively become unique; this provides empowerment as well as tangible strength to a company over the competitors. Culture refers to a belief that takes a period of adjusting to; it delineates the human groups by distinguishing one from another. Culture entails affective, behavioral, and cognitive characteristics because of the complexity involved in it.
The information emanated from this case study may inspire transformational company owners and managers to embrace open systems that will enhance motivation and performance of the workers. It is important to note that cultural change will assist in increasing a company’s productivity because the employees will have the awareness that they need to be accountable and responsible in order to attain the company objectives. Furthermore, the company has to enhance the quality of the bus tyres as well as the customer services. This is because the perception of the public is very important and if a company improves public perception, the customers will hold the belief that the company they trust in fulfills all their needs.
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