Polyprod Change Management - Assignment Example

Running Head: INITIATING CHANGE IN THE MANUFACTURING AND DISTRIBUTION DIVISION OF POLYPROD Initiating Change in the Manufacturing and Distribution Division of Polyprod Name: Course: Tutor: College: Date: Executive summary Due to the rapid development in the Polyprod Company, severe managerial, documentation and personnel problems have resulted. It is necessary for change to be initiated in the company. In this article, the consultant uses the Mckinsey 7S models and the Weisbord model to generate solution that can improve these departments. The author then recommends the solution to the management as well as outlines the plan of action required to bring change. Table of content Executive summary 2 Table of content 3 Chapter 1 4 Introduction 4 Introduction 4 1.2 Problem statement 5 1.3 Objectives of the study 6 1.4 Justification of study 7 1.5 Scope and limitation of the study 7 Chapter 2 9 Literature review 9 2.1 Review of Mckinsey model. 9 2.2 Review of Marvin Weisbord Model 11 Chapter 3 12 Research Methodology 12 3.1 Methods of data and information collection 12 3.2 Research methodology 12 3.2.1 Qualitative methodology 12 3.2.2 Case study analysis 12 Chapter 4 14 Case study of Polyprod 14 4.1 Polyprod general Information and problems 14 4.2.1 Shared values 14 4.2.2 System 15 4.2.3 Structure 16 4.2.4 Staff 16 4.2.5 Skills 17 4.2.6 Style/ culture 18 4.2.7 Strategy: 19 4.3 Analysis using Weisbord model 19 4.4 Outline for implementing the proposed reforms 20 Chapter 5 21 Conclusions and recommendations 21 5.1 Conclusion 21 5.2 Recommendations 23 References 24 Chapter 1 Introduction Introduction For an organization to function effectively and efficiently, leadership and organization issues must be taken into account. To maximize profits, the corporation must have well organized departments that are well coordinated. Polyprod is a multinational company that designs; develops, manufactures and markets various high-tech products for both commercial and home use. The firm has been in operation for the last eleven years and has been experiencing exponential growth. The companies has it's headquarter at the United States and several centers located at Canada, Asia, Europe and Africa. The central or the headquarter division managers all the other centers in different location though the other centers have autonomy to make decisions. The firm has an elaborate and highly automated manufacturing process that allows for the huge production and makes the system operate at high speeds, intricacy and produce massive volume of the products sold. The designs are created at the headquarters while the production takes place at various aforementioned locations to exploit cheap labour and maximize on profits. The products manufactured are of high quality and must pass the quality control tests. In spite of all the success experienced by the company, there are many organizational problems hampering the growth of the firm. Some of these factors include organizational and leadership problems, resistance to changes in organizational culture, rapid organizational growth, documentation and human resources problems In the wake of these issues, the company hired an external consultant to streamline and improve the impeding management, organizational and leadership issues. The consultant will also make decisions on ways of improving the manufacturing and distribution division at Polyprod. 1.2 Problem statement The rapid development in Polyprod in the past 11 years has resulted to the company experiencing severe problems in the following main areas Inefficient and ineffective management and leadership practices The firm's unable to monitor the number of locations, sales, product lines and capital equipment which have increased exponentially. Polyprod Lacks proper personnel support systems such as information and knowledge management system. The firm has also hired temporary and in-experienced personnel who cannot handle and manage the growing needs of the company. Strong resistance to change especially in synchronizing all the locations during the implementation of single process/technology. Frictions between the firms's headquarter and the locations and the internal waggles in headquarter as well as stiff resistance to change. There are documentation problems caused by high volume manufacturing systems that minimize the quality control operations. The main organizational problems include; The headquarter reluctance to change in their past 11 years of operation. The rapid hiring, promotion, insufficient mentoring, downsizing of certain competencies, heavy reliance on temporary workers in non engineering workforce, heavy outsourcing have resulted to organizational problems and damaging of the company culture. The rapid growth of the firm has rendered it impossible to maintain conformity and order. The creation and maintaining of an elaborate, modern and state of the art information management system is challenging and a capital intensive task for the firm. 1.3 Objectives of the study The consultant in this case study seeks to diagnose the human relation and organizations problem at Polyprod, formulate and implement solutions geared towards improving and solving the current problems experienced by the firm. The specific objectives are: To conduct a case study to evaluate the current organizational problems experienced by the firm. To use the 7S Mckinsey and the Weisbord model to generate solutions that can bring change to the firm management, organization and documentation systems. The changes proposed by the consultant are related to personnel department and ways in which the will contribute to this improvement. To outlay an implementation strategy stipulating and detailing the roadmap and milestones towards archiving the proposed improvements. 1.4 Justification of study The case study analysis conducted by the external consultant is important in the identification of the current personnel management problems being experienced by the firm. After problem identification, the consult will formulate solutions geared towards improving the firm human resources department and also propose and detail ways of changing the organization culture as well improve the documentation systems through the personnel department. This will lead to the long term improvement of the firms productivity; foster cooperation among the different departments, employee, locations and the management; inculcate a high-quality and modernized corporate culture; enable the firm gain competitive advantages through the use of highly skilled and competent workers; increase the firms profitability as well as boost its chances of sustained high profits in the long run. 1.5 Scope and limitation of the study The consultant will evaluate Polyprod organization as whole to identify the major problems faced by the firm. He will investigate Polyprod organizational structure, system and the general management. The consultant will then critically evaluate the human resources department and identify the major issues being faced by the department. Through extensive research, he will highlight how the personnel department can be used to foster cooperation among the departments, headquarter and the locations. The consultant believes that, initiating change by transforming the personnel's department will result in changes in all the major areas of the company. Analysis testing will be done by comparing the company current position against two models, that is. The Mckinsey model and the Weisbord model. The consultant will evaluate the company, identify what is lacking and generate solutions based on the information collected from journals and what the models stipulates. After generating a set of solution, the consultant will propose these solutions to Polyprod headquarter leaders and advice them on the benefits of restructuring their management, organizational, documentation and personnel departments as well as caution them on the consequences of failure to implement the suggested reforms. After approval, the consultant will encourage forums and interdepartmental meeting to foster cooperation and trust. He will train the management on the proposed ideas and the methods of disseminating the solutions to the employees. Feedback information will be obtained from employees and staff members at the location and headquarter to determine the overall progress of the change process. Chapter 2 Literature review 2.1 Review of Mckinsey model. According to Mckinsey & Company (2008), The Mckinsey model was developed and used by the company consultant to evaluate over 70 large organizations. The framework has seven variables notably; structure, strategy, systems, style, staff, skills and shared values. According to Lynch (2005), Systems are internal processes that enable an organization support and implement the strategies to run its day to day activities. Traditional systems used bureaucratic style while Modern corporation enhance systems through the use of innovations and modern techniques that allow decisions to trickle down fast and in an effective manner. Toni and Tonchia (2003), define Strategy as the stipulated plan of action prepared in response to anticipation for changes. Three factors affect and influence the strategy formulation process, these are; the current position of the company, the vision, mission and goals of the company. Boyle (2007), Deshpande and Farley (2004), states that different organizations have varying structures that depend on their objectives and organization culture. Traditionally, hierarchical methods were widely implemented. These methods structured the organization into different departments. Each department was assigned a given task and each management layers was answerable to the upper layer above it. The method is still used to date though many organizations are now inclined to the flat structure that eliminates middle level management thereby empowering employees. Staff engrosses humans dedicated to the cause of making the organization more successful. The staff determine to a great extent the overall success and profitability of the organization. Identification of staffing needs, recruiting and training personnel, enabling the staff gain professional excellence, motivating employees and compensating them for work done enhance the organization competitive advantage ((Purcell and Boxal, 2003); (David, 2006); (Orlando and Nancy 2001)). Martins and Terblanche, (2003) stipulates that, different organizations have distinct management style and culture. Culture incorporates the beliefs, norms and other values that develop overtime and become incorporated into the organization. They govern the interactions between the management and the employees. Rohit and John (2004), asserts that, traditional style of management is being replaced by a more open, more innovative and friendly environment with small hierarchical chains of commands. For the success of the company, all the members should share the same fundamental ideas and concepts. According to Martins and Terblanche (2003), all employees and the management should work towards a given goal. The goals should be coherent and enable to keep the team spirit alive. Organizations with weak goals find employees formulating their own goals that crash with the organizational goals tearing down the organization chances of success in a competitive environment. As described by David (2006), Skills are the competences of the personnel's working in a given corporation. Different members of staff are endowed with varying skills that enable employees and the management work towards a common objective. Contribution of skills acquired results to the success of the firm. It is therefore important that the company seeks qualified employees as well as empowers and train existing personnel for the purposes of sharpening their skills and expertise, asserts, Amit (2001). 2.2 Review of Marvin Weisbord Model This six box model was developed by Marvin Weisbord to aid in evaluating the functioning of different organizations. The model gives attention to standards for remuneration, partnerships, internal competitions, organizational control, accountability, assessment of performance, delegation of authority, planning, giving of rewards and incentives, organizational units, standards for remunerations, personnel as well as other support functions. The analysis box has the following major components; Purpose, Relationship, Rewards, Structure, Helpful mechanism, Leadership (Wilfred et al, 2001; Nancy, 2001). Chapter 3 Research Methodology 3.1 Methods of data and information collection Of the two main protocols for collection of data, that is the primary and secondary data collection techniques, the consultant relied on secondary data collection techniques. This involves searching of materials from journals, articles, and reports from credible sources. This data collection technique is economical, quick and less laborious as opposed to primary data collection techniques. 3.2 Research methodology 3.2.1 Qualitative methodology The consultant relied on qualitative research techniques. As defined by Creswell (2003), the method entails making knowledge and claims based primarily on constructivist perspective (Creswell, 2003 and Denzin and Lincoln, 2003). 3.2.2 Case study analysis The consultant carried out a detailed case study to identify the current organizational and personnel management problems encountered by Polyprod and employed two analysis models to generate results. Yin (2003), describes case study analysis as 'A case study is an empirical inquiry that investigates a contemporary phenomenon within its real-life context, especially when the boundaries between phenomenon and context are not clearly evident.' (Yin, 20031). The reasons for the consultia adopting case study as the research methodology are; The aims and objectives stipulate the evaluation of Polyprod data against the 2 models and generate organization decisions that can catapult acceptable changes. The available resources, such as time and money limiting primarily data collection techniques as well as quantitative research methodologies. Chapter 4 Case study of Polyprod 4.1 Polyprod general Information and problems As explained in section 1.0, Polyprod is multinational company manufacturing high quality products that are marketed across the globe. The rapid growth in the company has resulted to severe mismanagement, problems in the documentation as well as personnel problems. The main problems being faced by the firm are stipulated in section 1.2. 4.2 evaluating the company using 7S Mckinsey framework: The consultant evaluated the Polyprod Company using the seven Mckinsey analysis tool (strategy, structure, skills, shared values, staff, style/culture and systems) and obtained the following results (Ethan and Paul, 2009) 4.2.1 Shared values This is the most important attribute of the corporation and takes the central position in the Mckinsey analytical tool. It represents the central beliefs of the firms. All members of the corporation must share the same common goal and objectives. This attribute is severely lacking in Polyprod. There are no existing visions and mission statement to guide the firm. Due to this, the staff at region and at the headquarter seem to differ. Poly prod staff lack shared culture, beliefs and competencies. To curtail this the firm need to: Formulate mission statement Formulate Polyprod mission statement that stipulates the purpose of the company and enlighten the management and employees of this statement and its meaning. Formulate vision statement Formulate a vision statement, which vividly describes what the firm aspires to archive. This statement energizes the management team and enables them gain a mental picture of the expected outcome and goals. The managers should be empowered more in a shared vision that can tie them up and enable them work together to fulfill the stipulated vision (Wally, 2007). Shared information management system The management should hold meeting that include both management teams from Polyprod headquarter department and the locations. These meetings will pilot and encouraging cooperation amongst the managerial teams. Inter-Departmental meeting Departmental meeting should be held constantly to encourage cooperation and unity between the different departments. This will enhance the aspect of shared knowledge as well as encourage and foster cooperation. The employee's voice should be heard and his complains acted upon. Teams should be set up drawn from different departments to discuss company issues and give Reponses. Feedback from employees especially during organizational structure and culture changes is important in evaluating the achievements of the proposed changes (Harrison, 2001). 4.2.2 System These are systems laid to enable the company archive its goals and run its day to day activities. Polyprod relies on bureaucratic systems and the decisions made by the headquarter which take a long time before they trickle to the locations. For Polyprod, the core changes that can curtail the current problems are: Shifting power: it is imperative to empower managers and allow power to shift from the top management to lower levels. Power sharing should be fostered to encourage the subordinate staff contribute to the decisions making process. Information systems: the company needs to set a state of art and ultra modern information management system to link all the departments and allow for faster and effective data and information handling. The system should allow for changes to be notified to all employees. This will mitigate most of the documentation problems. Good documentation system should be adopted by the Polyprod to allow for proper materials and process specifications, well laid out operating instructions as well as maintenance information and assembly. Testing and checking instructions should be well laid out so that the can be followed by staff and employees at the locations (ngel, et al 2001). 4.2.3 Structure This details the organization unit in a given firm. Polyprod firm is divided into departments. Each department is assigned a given task. The departments are answerable to the management level above them. Hierarchical management structure should be changed to matrix and network structure. This type of structure eliminates long chains of commands and leads to better cooperation between the top level management and the low ranking employees. The company should encourage team work where employee's views are taken into consideration before decisions are made (McLaurin and Reagan, 2008). 4.2.4 Staff For Polyprod, staffing is a major issue and hiring of unqualified and temporary workers especially in the non engineering department has affected the company in general. Temporary employees don't have an understanding of the company mission and vision and work blindly in the firm (Orlando and Nancy, 2001). In terms of staffing the following major decisions should be engrossed by the firm (Edward, 2007). Identification of staffing needs: The leaders should critically evaluate the current position of the firm; evaluate all the company departments to determine the staffing needs. Reward system: The management should look for an appropriate reward system to motivate employees. Appropriate compensation for work done should be encouraged to boost the morale of the employees (Amit, et al 2001; David, 2006). Determine the outsourcing needs: The leadership should also identify the various areas where the company can outsource in order to get experts perform the job for them (Cameron and Alan, 2007; Shilpa and Randolph, 2005). Identify ways of promoting staff: The management should stipulate staffing appraisal methods as well as ways of promoting members of staff (Phillip, 2006). 4.2.5 Skills As stipulated in the problem statement. Polyprod suffers lack of skilled and qualified personnel. In light of these, the management should; Critically evaluate every department and determine skills and competences required. Organize workshop so that workers can be taught different skills as well as enlighten them on the company's goals, mission and objectives. Train and mentor the workforce. The leadership should be sensitized on the issues of hiring qualified employees. This will enable the leadership to stress on its importance to the departmental heads and especially the human resource department (Igor and Leonard, 2007). 4.2.6 Style/ culture Inculcating a good culture is important for the overall success of Polyprod. Polyprod need organizational change and reengineering to streamline its activities. The system and structure to be used must be acceptable before the leadership and employees. The consultant will create awareness about the importance of a strong culture and warn them that if changes aren't implemented, the company will collapse. Though it is hard to change culture, motivation of the top management to initiate the changes can serve as a good starting point (Martins and Terblanche, 2003; ngel et al, 2001; Rohit & John, 2004; Wilfred, 2001). Creating awareness: It is imperative that the management creates awareness about the significance of these changes. Leadership should take up this challenge, show the way and motivate the employee to emulate them and accept the change. Leader's must trust and belief that the change is pivotal to the company success (Roger, 2006). A culture of hiring trained employees and maintaining high standards of the working employees need to be inculcated in the company. The leaders must stress the importance of qualified and competent personnel's. Due to the different locations of the other centers, it is important that the company seek leaders with a divergent cultural background that allow them adapt the cultural differences of the differing location (McLaurin and Reagan, 2008). Leaders should also encourage teamwork, trust and collaboration when working. 4.2.7 Strategy: These are the plans that detail how to archive a given objective (Angel, 2003). The company leadership should develop strategies that will empower the managers; identify the laid down strategies of gaining competitive advantage over the competitor firms, lay out strategies for allocating different resources and Strategize on methods of improving their labour force by hiring qualified employees. The main steps towards developing a strategic goal are; the creation of a motivation for change, creating the vision, lobbying for support by the top management, managing and monitoring the change process and sustaining the momentum for the change process. The leadership should also formulate ways and means of collecting responses and feedback from the clients with a view of evaluating the change that has occurred as well initiating more reforms (De Toni and Tonchia, 2003). 4.3 Analysis using Weisbord model Purpose of the business: The management should define the purpose and objectives of the business, currently poly prod does not have an elaborate mission, vision, objectives, strategies and milestones to archive. This leaves all members formulating goals for themselves. Relationship: The company leadership should formulate laws that aid in managing conflicts and also in managing the people. Rewards: Currently, Polyprod does not have ways of rewarding it employees. Proper employee motivation and rewarding system should be developed by the management. The employee's performance should then be evaluated to find out if there is any success. Structure: Currently the organization is divided in departments with each department working separately. It is necessary that the department work hand in hand. Proper coordination and cooperation between the department in most of the activities and especially in decision making should be fostered by those in leadership positions. Team work should be encouraged and inculcated to the corporate culture through use of leaders. Helpful mechanisms: Ultra modern business information systems should be installed at the firm to allow for speedy transfers of information to all locations. Leadership: corporation among the leaders should be encouraged. They should be motivated to ensure that they are productive and can be used as instruments for bringing change to the organization. 4.4 Outline for implementing the proposed reforms The following gnat chart shows laid down strategy for implementing the change at Polyprod Time Activity 1 2 3 4 5 6 Problem identification XX Materials search XXXX Generating a solution set XXXX Evaluating the workability of the formulated solution X Proposing the solution to the management X Training the management XXXX Implementation of the solutions XXXX XXXX Collecting feedback information XXXX Improving the firm based on the feedback information XXXX X: represents one week Chapter 5 Conclusions and recommendations 5.1 Conclusion From the research carried out by the consultant, it was determined that Polyprod had severe organizational, management, personnel and documentations problems that would lead to its collapse if proper managerial rules and organizational changes were not implemented. From extensive review of journal articles, the resecher established many organizational solutions that could be used to restructure Polyprod failed departments. The consultant evaluated the available information about Polyprod. This information furnished him with vital information about the company. The consultant used organizational models such as the Weisbord and the Mckinsey 7S framework to evaluate the company systems and generate solution towards improving the Polyprod organizational, management, personnel and documentation systems. Based on this analysis, the consultant found out that the company required a total overhaul of their management systems. Aspects such as company mission, vision, objectives, identification of staffing needs, training and mentoring staff, identifying competencies, promoting organizational culture change and changing the organizational structure as well as upgrading the documentation systems were some of the major solution identified by the consultant. It was generally found out that lack of trust; cooperation and unity among the staff members had severe consequence on the whole firm. The consultant also found out that improving the human resource department would generally improve the organizational aspect as a whole. Based on the case study research findings, the consultant generated a set of solutions that could be used to improve Polyprod. These solutions are geared towards using the human resource department to improve the firm. The consultant hopes to convince the management to implement these changes, if the management approves the proposed changes, the consultant will training the management team who will in turn inculcate a new culture to Polyprod. The consultant will collect feedback information by administering questionnaires to the employee and management to determine their views about the new system. 5.2 Recommendations After the case study analysis, the consultant recommended the following changes to the management; Change of the organizational culture, though it is hard to change the culture, motivated leaders can inculcating a new culture to the organization. Change of organization structure: this will allow for decisions to flow rapidly and empower low ranked employees. Team work should be encouraged especially between the top management and regional management staff. The company should formulate a mission and vision statement. These statements should be elaborated to the management and the employees so that they can focus on archiving the company goals. The company needs to hire qualified personnel and avoid temporary workers. The firm should also train, empower, motivate, reward and compensate employees well to boost their morale The management need to adapt a culture of hiring qualified employees, striving to fulfill the company objectives, encouraging workers to participate in decision making, be committed to improve the firm systems, encourage interdepartmental meeting as well as foster unity and trust among the top management and regional heads. The documentation system needs to be replaced with a new, state of the art information system. The employees should be trained on how to collect and store data on the documentation system. Leaders should strive to motivate workers to accept and trust the documentation system. References ngel, C; Elizabeth, F;Cabrera and Sebastin, B.(2001). The key role of organizational culture in a multi-system view of technology-driven change. International Journal of Information Management, Vol 21, (3), Pages 245-261. Oxford: Elsevier. Angel, C. Elizabeth, F. C.(2003). 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