Organizational Change and Development - Profit Margins of the Company - Assignment Example

Organizational Change and Development - Profit Margins of the Company When organizations find themselves in a downward spiral, it is always a demotivating feeling for the entire organization. It leads the managers to believe that nothing could be done to make the situation better, and it will only worsen from that point forward. It is true that when the leaders begin to believe that they have lost to the spiral, the faith in the entire organization is gone. This leads to a demotivated workforce, which is in need of a leader to keep the flock together and instil faith in them. For this reason, the first crucial step towards changing the course of the downward process would be the belief on part of the managers that it is still possible to rejuvenate the organization and improve the products in order to gain a competitive advantage in the market again. With the belief that the company can stand on its feet again, the morale returns to the employees and this will help the company get back to where it was in the long-run. To increase the profit margins of the company, the most important thing to do would be to focus the finances towards the out-dated product lines of the company. This can be done by conducting a market analysis to figure out the consumer demands and what they prefer in the product. By attending to the needs of the consumer, we are actually paving a way for higher profits in the future because we’ll be giving the consumers what they want. Moreover, by understanding the consumer demand it’ll become easier for us to redesign our product to the desired specifics and the chance of losing sales due to undesirable characteristics would be reduced. To analyse and incorporate the effects of the external environment into our organization’s business plan, it would also be beneficial to point out who our competitors are. An in-depth research of the competitors and the products that they sell is very important because it gives us an insight into how we could give our products a USP (unique selling point) in comparison to that of the competitors. Also, the objective is not to duplicate the competition products but to manufacture good-quality products with features that give us a leg up. The best way, in my opinion to ensure success finance-wise, is to create products that are not already supplied in the market but have a high consumer demand. In order to reach this goal, the organization design will have to be rearranged in several ways. First, all the major contributors will be divided into teams, which will be assigned by the ideas of the new business plan. Next, one main objective or goal will be given to all the teams to focus on, and it will be made sure that it has all the expertise and knowledge required to efficiently achieve that goal. The team-members will assist each other in completing the goal. They will also have a set role, with the Team leaders and Managers to look over the entire process. This structure will mean that we can focus on our customers and suppliers, as they will be the force that drives the organization towards product redevelopment, changes in the hierarchy and so on. Moreover, the inter-departmental communication flow will be clearer and faster, leading to more efficient decision making for the organization. Also, meeting the needs of our consumers will provide us with a competitive edge in the market. Moreover, in order to manage the problem of the competition of internal resources, a BCG matrix analysis can be conducted to point out the stars, cash-cows, problem-child and dog products. This is essential because, it will help us manage the portfolio competently. The unprofitable products will be eliminated freeing up resources to be injected into other products that are likely to give us higher returns. For the problem of adversarial communication faced by the organization, it is important to lessen the pressure in the organization to provide an environment that encourages open and honest communication. (Hunter, 2011) The primary role of managers in a company is to try to aim on the highest efficiency. For this purpose, it should be a CEO’s top priority to make sure the design on the organization is correct (Daft, 2010). Hence, it can be concluded that the fate of an organization facing a downward spiral is entirely in the hands of the manager. If handled correctly at the right time and with the right goals, it can be turned around and the organization can reap benefits in the long-run in forms of stability and profits. Change is inevitable for every organization. It is important or a company to morph itself to fit into the external environment that it is surrounded by, to mould its products according to the consumer demand and competition as well as make changes in the organizational structure as it is needed. In today’s environment, companies are forced to implement changes in order to survive. This change brings with it new challenges and demands from everyone, from the top of the hierarchy to the bottom. Effectively managing the workforce within the organization, means not fearing the challenges and changes, but instilling in the employees the necessary skills to cope up with it. (Covi, 2011) For managing change, in my opinion, thought process and relationship dynamics are fundamental for the success. As long as the employees fear losing their jobs to the change or getting transferred elsewhere, there is likely to be an environment of uncertainty and tension surrounding the workplace. This means that it will interfere with the thought process of the employees and will cause the organization to lose productivity. It is, therefore, important that the manager instils in them the levels of confidence required to carry on with a different job but at the same time provides them with job security. According to Maslow’s hierarchy of needs, safety and esteem needs are the stepping stones to self-actualization. (Boeree, 2006) Hence, providing the employee with job safety will make him fear changes less and will improve his concentration levels at workplace. Moreover, I also agree strongly with the principle that change will only happen when each person makes a decision to implement it. Leaders and managers continuously make an effort to incorporate significant and successful change in their organizations. Some are very good at this, while others try to struggle and eventually fail. That is very often cited as the difference between those who thrive in the roles given to them and those who get shuttled around. For the change to have a beneficial effect on the organization, it is important that the workforce accepts and tries to be a part of the change instead of sulking on the side-lines and opposing it. For this, it is vital to eliminate the fear that surrounds change so that they are motivated by the benefits they will be reap in the future by this step. (McNamara, 2010) Lastly, a clearly defined vision of the end result enables all the people to define the most efficient path for accomplishing the results. Each organization has a goal that it wishes to achieve. If change takes place, it is usually to make sure that these goals are easier to achieve. This is why a clear vision of the end is significant. It will give us an aspirational snap-shot of the future, and then we can go about bringing change in order to achieve the goal successfully. Moreover, if the employees are aware of the end goals, they are also likely to take the decision of changing the organization better than they would previously. With the prospects of increasing the shares, growth rate or profitability of the organization a manager can also make better decisions regarding the structure and layout. Therefore, knowing what the change would result in, is the key to making sure that it does. It is also important because it helps us measure and analyse how successfully we are working towards the aims at present, and what we will need to do in the future. The company that I’ve chosen for the discussion of a CEO’s leadership qualities is Apple. The leader that I chose has never been involved in politics. He has; however, successfully inspired people all over the world and helped changed the definition of technology single-handedly. Much has been written about Steve Jobs, CEO of Apple Computers, and or good reason. Jobs has created an environment which is very relaxed, yet at the same time very productive. One of the characteristics that separates him from the rest, and makes him an effective leader is that he is extremely charismatic. It is often cited that Jobs has an aura about him that makes people respect him. Employees at Apple, enjoy work with Jobs because they feel that he makes the workplace secure, correct and inspired. Moreover, he can be termed as the visionary with a focus on the long-term. Apple products are innovative, easy-to-use and consumer friendly. He has this perspective that always begins with the impression of the user. Apple has introduced products in the markets that were not in demand by the consumers at present, but would be in the future. Hence, by possessing a good eye for the future, Jobs was able to successfully offer break-through technology that had a unique selling point. Jobs also has a methodology that the most important decisions you make are not the things that you do, instead they are the things that you decide not to do. It is all about risk-taking and doing the right thing at the right moment. Risk-taking is a very vital quality for an entrepreneur. This is because; it allows him to diversify and search for profitability in an unexplored territory that he wouldn’t have otherwise. The qualities that an effective leader should possess are very diverse in range. He should be truly humble and not obsesses with his own self-image. Moreover, an ability to be non-judgementally observant is very important because it gives you an insight of how things could be improved and where the short-comings lie. (Zhivago, 2010) An effective leader will also demonstrate passion for what he believes in: someone with a dream to better the society, or at least a portion of it. (Larson, 2007) This is very consistent with the qualities of Steve Jobs described previously. As someone who has faced failure in his life, he is humble to the boot and shows appreciation for his success by giving out to the community as a philanthropist. Moreover, he is someone who has proven himself to the world by the work that he does, not by talking about it or having a pretentious self-image. The legacy that he will leave behind for the organization will be that a desire to innovate encompasses all. People are not even aware of what they want, until it is presented to them. Therefore, to be the best not only means providing quality products, but also combining it with breakthrough features to arouse the interest of the consumers. References: Zhivago, Kristin. (2010). Top 10 characteristics of an effective leader. Retrieved 26 February, 2011 from http://www.revenuejournal.com/2010/01/top_10_characteristics_of_an_e.php Larson, Sandra. (2007). What makes for an effective leader? Retrieved 26 February, 2011 from http://managementhelp.org/mgmnt/leader.htm Covi, Ida. (2011) Coping with change in the workplace. Retrieved 26 February, 2011 from http://www.businessknowhow.com/manage/leadwithin.htm Boeree, C.G. (2006) Abraham Maslow. Retrieved 26 February, 2011 from http://webspace.ship.edu/cgboer/maslow.html Mc Namara, Carter. (2010) Organizational Change and Development. Retrieved 26 February, 2011 from http://managementhelp.org/org_chng/org_chng.htm Daft, Richard. (2007). Organization Theory and Design. Retrieved 25 February, 2011, from http://books.google.com.pk/books?hl=en&lr=&id=CmFjF5tNmuEC&oi=fnd&pg=PR19&dq=competitors+of+an+organization&ots=XpFKCRBYse&sig=Ec8nNuNrgkZj3--K5a_FrTn5SEM#v=onepage&q=competitors%20of%20an%20organization&f=false Hunter, Scott (2011). Top Ten Workplace Communication Skills: How They Can Make Work For You! Retrieved 25 February, 2011, from http://findarticles.com/p/articles/mi_qa3857/is_200310/ai_n9305547/pg_2/?tag=content;col1 Read More