Organizational Transformation of the World - Essay Example

Download file to see previous pages Again business organizations in order to operate successfully in the competitive business environment are strongly endeavouring to strategize their business activities in order to gain a larger share in the existing market. The level of competition among the business entities around the world has assumed such hyper state that it has become difficult for conservative and conventional companies to go on doing business. Further several foreign firms are also making huge foray into the so called protected markets by breaking down the trade barriers constructed by the governments of the day. (Levy & Merry, 1986, p.3-4).This need for organizational transformation has given birth to the concept of transformational leadership in the new organisation structures. The change management to be effective must strongly involve the incorporation of both human and technological resources in an optimal manner to achieve business objectives. Transformational leaders henceforth must endeavour to create change in the existing organisational culture through motivational leadership aimed at enhancing the productive aspects of the people concerned. The process of organizational transformation henceforth aims at rendering total human development in terms of enhancement of the aspects of self esteem and in creation of a secured job environment. People belonging to the change culture are found to gain vivid work experiences while working with the new organisational processes and systems. Thus this process helps in also cultivating the concept of a learning organization. Change management in the organization thus helps in building a learned workforce which would help the organization to reach to new boundaries in terms of both market share and revenues. (Chawla & Renesch, 2006, p.105-108). The revenues of the firm from 1990 to 2010 grew along a rapid pace and reached $ 9.5 billion in 2010 from a meagre $1.6 billion in 1999. The strategies incorporated by the Chairman of the company to achieve the above ends consisted of augmenting the value of the shareholders of the company and also in developing the skills and performance of the people of the concern through continuous monitoring activities. These activities strengthened the internal environment of the company and thereby helped the business to expand along uncharted territories. Further accruing employees of supreme knowledge and skill base and promotion of an innovative system helped the company to counter the external competitive environment. In fact, the above activities rendered by the Chairman greatly helped in transforming the cultural hemisphere of the concern. (McKinsey & Company, 2010, p.28). Focusing on the case study of Larsen and Toubro in regards to organizational transformation focus is rendered on the level of activities taken by the Chairman of the company in enhancing total organisational productivity.

The organization, Larsen and Toubro was first conceptualized by two engineers of Danish background. Larsen and Toubro emerged as one of the largest organization in the field of construction and engineering activities along the Indian subcontinent. The company which started as a partnership firm during 1938 by dearth of the joint cooperation of the two Danish engineers was transformed to a limited concern during 1946. In the modern context the company renders services along a plethora of departments starting from construction to manufacturing to electrical and a host of other engineering activities. (Larsen and Toubro Limited, 2010). Further the company also operates based on a certain visionary guidelines which can be stated as follows. Firstly the company works on delivering high amount of satisfaction to its large number of customers and also works on enhancing the value of the shareholders of the concern. Secondly the company management also desires to design a potentially effective team who can counter all possible challenges pertaining to the external environment. For that the company envisions to generate high amount of flexibility and innovation to help its employees come out with ideas which can help change the future of the company and the economy of India. Finally in the third stage the company also focuses on helping its employees develop their knowledge and skill potential while working in a simultaneous manner in different mega projects. These visions act as the guiding framework or the backbone behind the successful functioning of the company. (Larsen and Toubro Limited, 2010).

The context of organisational change incorporates high amount of managerial decision making. These people are held as the pivots of the change process and in turn endeavour to bring about organizational transformation by introduction of new systems and processes. Organizational mangers in the way of bringing about changes in the existing systems and processes must focus on rendering optimum capitalisation of such activities to help gain the maximum advantage of alterations made throughout the organisational system.

...Download file to see next pages Read More