Kenworth Motors Managment - Essay Example

Executive Summary Kenworth Motors is one of the leading automobile manufacturers of the country with expertise in producing high end automobiles. The plant manger of its trucking unit at Seattle recently took over the job however, he was of the opinion that things are not going well. This report has been prepared in response to the said concern of the plant manager and indicates that there are communication gaps between the plant manager as well as other employees of the unit. In order to overcome them and to bring in change, it is therefore critical that more delegation shall be done down the line and lower employees must be empowered. 1.1. Introduction Kenworth Motors is producers of trucking and other automobile products with its trucking manufacturing unit as its major and most important business unit. It is the leading manufacturer of heavy duty and medium duty trucks since 1923 and is dominating the market through its large network of dealers spread all over the country as well as in Canada. This large network not only offers the final product of the company but also offer parts and after sales services to the clients all over the market. The company has a tradition of serving its customers through its large network and as such the overall structure is designed in such a manner that it effectively serve its customers in almost all parts of the country. The case study in question provides the insight into the existing affairs that are taking place at the trucking unit of the company at Seattle and indicates about the various difficulties which the plant manager is envisaging in the future to happen. The underlying change that has been discussed in the case is multi-dimensional in nature and requires a very careful review of the affairs of the firm in order to prescribe any policy initiatives which can only be undertaken after issues are sorted out. Further, since any change cannot take place without the considering significant changes in the way HR function of the organization used to work. The change that is implicitly discussed in this case study outlines the need for having a complete revamping of the unit’s overall structure in order to make it more organized and efficient. For this purpose, HR therefore shall be playing the major role of providing necessary support in making this change more visible and effective within the organization.( Diefenbach,2007). I am being hired as an external consultant with the main responsibility of understanding the actual problems that are underlying this unit and what can be its causes and consequences for the overall performance management of the unit. My role as a consultant therefore will be to facilitate the identification of the different problems that might not have surfaced yet but can be a significant challenge for the firm in the future. A consultant therefore has the core responsibility of initiating a fact finding probe by discussing the different issues and getting the first hand experience of learning the issues and problems faced by the plant managers and other members of the staff working at the plant. Thus the aim is to analyze the response to come forwards with a definite plan of action as to how to formulate different strategic responses to such problems to correct them on permanent bases and achieve the desired strategic objectives. This report will be divided into six different broader areas discussing and outlining each and every step required evaluating the change, discussing the role of HR and people management for the change and based on this assessment to make a recommendation for taking the different strategic initiatives to overcome the problems faced by the unit. 2. Background to the Organisation and Identification and Explanation of Change As discussed above that the firm is involved in the manufacturing of trucks and the case study specifically mention about its trucking unit at Seattle. If one goes through the case study, it can be easily inferred that the plant is going through certain set of problems which are relatively unknown and a further study may reveal the exact nature of such problems. Organizational change and the role of people management in it is often considered as a process which is often viewed as a part of the overall strategic management process. Change therefore needs to be tailored in such a manner that it brings in changes that are required to achieve the strategic objectives of the firm. (Poole, 2000) In order to unearth the change and the underlying problems, following two models will be used: 1. 7-S Model 2. Wiesboard Model 3. 7-S Model The 7-S model was developed in McKinsey and outlines that the organization is not just the structure but it consists of the 7 different elements. In order to diagnose the existing problem with the firm, these 7 elements will be utilized as under: 3.1. Strategy Strategy is often referred to the actions that a firm plan to undertake in order to successful meet the challenges posed by the external environment. Strategy becomes relatively more difficult to formulate if problems are more docile and interactive in nature requiring a complex web of problems and associations to be studied before making any formal strategic move to resolve them.(Taylor & Cooper,1988). The strategy stage also indicates that the firm must start planning for resource allocation in order to reach at an identified goal to be pursued by the organization. This stage of analysis therefore requires that a consultant must carefully analyze the existing strategy of the firm and identify whether the resources are properly allocated to achieve the overall objectives of the organization. If one goes through the case, it is really clear that the unit has the requisite resources and as such every section of the unit has adequate resources to perform.(Kaplan,2005). However, what is also significantly more critical here is to understand as to how the overall strategy of the firm is executed at the unit and whether the unit is properly working by encompassing the larger strategic direction as set by the organization itself. Though apparently it seems that the strategy is followed both at the tactical level as well as functional level however, a closer analysis may indicate that the employees of the firm may not be able to accept the change that has taken place i.e. the hiring of the new manager Mr. Robert Denton himself. Any strategy can only be successful if it can help to achieve the change with relatively more ease and less resistance. (Hiatt & Creasey, 2003). It seems that the strategy is not being supported by the people who were working within the unit. 3.2. Structure Structure basically refers to the basis for specialization and as such it is largely influenced by the strategy and organizational size. This also indicates that the firm is not just the collection of different structures but rather it is dependent upon the ability of the organization to define different organizational relationships within the organization. A closer analysis of the structure of the unit will indicate that there are nine managers who are handling nine separate functions and are reporting to one person. Personnel working below these two layers therefore directly report to these two managers who directly than report to Denton. What one can infer from this fact is the assumption that the due to Denton’s style of keeping a track of everything i.e. looking after almost every affair at the plant may hinder the process of delegation within the organization. The other two managers may be not entirely satisfied with their jobs as the same is often being over-sighted by an independent person. For a change to take place, it is really critical that a mutual degree of trust is developed between each and every members of the team.(Culpan, 1989) What is also important to understand that the overall structure of the unit is hierarchical in nature which also indicates that the firm has a very rigid and fixed structure? Such structure however, often does not lead to the result orientation and as a result of which the overall integration across the organization may not be entirely possible. (Dorf, 1999). Such lack of integration therefore can further lead to the productivity losses as well as the de-motivation of the employees due to their inability to consider themselves as part of the organization. In order to effectively to successful manage the change, it is often important that such hierarchical structures are decomposed in a manner that such decomposition facilitates the overall change process within the organization.(Sherwood,1990). 3.3. Systems Systems within this context refers to the formal and informal procedures and policies that the overall strategy and structure of the organization. This is last of the hard S’ s that organization has to manage in a manner. From analysis point of view, System can often lead to the diagnosis of the problems that are more fundamental and functional in level. Effective designing of systems therefore outlines that the organizations must be able to design them in such a manner that they support the achievement of the strategy of the organization. (Field, 1990). The flexibility of the systems therefore is of utmost importance in order to ensure that the organization is flexible enough to accommodate the changes that are necessary for its strategic survival. The existing procedures in the unit indicate that the overall flow of work is relatively good and as such there is no glitches that can be traced apparently however, it is important that a further emphasis must be placed on defining the appropriate systems in a manner that support the overall strategy achievement. In order to bring in the change, it is therefore critical that the unit must re-design some of its systems and procedures in order to achieve more efficiency as well as more commitment from the lower staff. 3.4. Style Style often refers to the overall culture of the organization as well as the dominant values that are collectively held by the organization. It is critical to note that in order to bring in the change, it is important the cultural and political aspects of the organization are also viewed from a critical perspective. (Saka, 2003). Thus style of the organization shall include its overall culture as well as the management styles that exist within the organization. If an analysis of the case is performed from this perspective, it will be evident that the style is relatively more informal and as such everyone seems to be following pre-defined set of organizational values and beliefs. The authority of Mr. Denton is more or less intact and lower organizational levels seem to be obeying his authority within the unit and overall style is relatively informal. However, it is also important to note that the overall design of Mr. Denton’s office may indicate that he likes to make things more formal at least while dealing with the people from outside the organization. This however, also may lead to the conclusion that the employees may not be able to find it easier to approach Mr. Denton to discuss their problems and present suggestions to improve the overall performance of the unit. Such formality therefore may further create a sort of environment which may culminate into something relatively more unstable. 3.5. Staff Staff basically refers to the people management and how Human Resource Management in the firm responds to the development and management of its employees. Staff also therefore is of critical importance because help organizations to achieve their distinctive competencies through acquiring of the new skill sets and knowledge. Thus staff also help organizations to develop as learning organization where continues learning process allows organizations to develop and evolve as better organizations. (Hitt, 1995). It’s critical to note that the Mr. Denton spends much of his time concentrating on his routine jobs such budgeting etc. It may therefore infer that the overall development of staff has been overlooked in order to achieve more regular tasks. 3.6. Skills Skills refer to the distinctive competencies of the institution and indicate the core competencies of the firm at which they are best to achieve their competitive advantage in the market. (Culpan, 1989). From the given case study it can be inferred that the skills sets of the employees at the unit are relatively good and as such there is no issue as far as the hard skills are concerned. It is however, critical that the employees may be trained in soft skills. 3.7. Shared Values Shared values are the basic building blocks of the organization around which the overall organizational structure and values are built. Shared values are often abstract and carry great meaning inside the organization for every member of the organization.(Gillespie & Mann, 2004). Shared vision of the organization can assist managers to achieve the objective of learning organization and as such may allow them to develop more fulfilling employees within the organization. (Hoe, 2007). It seems that Mr. Denton does not prefer to motivate the employees of the unit through the overall shared vision of the organization. 4. Weisbord’s Model This model is another important contribution to look at the organization from a different perspective. This six body model discusses different elements and this report therefore will discuss each and every element to discuss the potential problems at the firm 4.1. Purposes Purpose basically refers to the kind of business in which firm is operating i.e. in this case, the firm is in manufacturing of heavy duty automobiles. Apart from this the purpose all includes the overall mission of the organization. What is however, significant to note that designing the overall mission and purpose of the organization is critical because it allows employees to get motivation out of it as it indicates the overall future strategic direction to be undertaken by the firm. (Matejka, Kurke, & Gregory, 1993). Judging from this perspective, it will be imperative that the firm has the overall strategic direction and purpose and as such unit shall be aware of what is expected out of them to achieve this mission and goals. What is however can be important to notice here is the alignment of the firm’s mission statement with the overall conditions at the plant. Question arises as to whether Mr. Denton has been able to make it realize to the employees the overall importance of the organizational purpose and how it can be achieved, 4.2. Structure Structure is again how the different functions within the organization are organized together to achieve the strategic objectives of the firm i.e. how the organization is organized. (Falletta, 2005). As discussed above that the structure of the organization/unit is relatively formal however, there may be relative gap in communication lines between the staff and Mr. Denton. Things seems to be well under control with proper structure put in place to take care of all the affairs of the unit however, there is still a general lack of delegation of work and Mr. Denton seems to get himself involved in almost all tasks. 4.3. Relationship Relationships indicate the way in which people and different units interact with each other. It is therefore critical that the organizational structure shall be designed in such a manner that it fosters the development of overall relationships within the organization. (Granot, 1999). Apart from this, the way people interact with the technology also define the relationships within this context and refers to the way organization shall design its structure to facilitate this interaction. The closer look at the facts provided in the case study will indicate that the relationship between different organizational layers is relatively formal in nature and as such there is no visible glitch in them. However, it may be critical that due to overall style of Mr. Denton, there may be gaps in communication between him and rest of the employees. Further, it is also quite possible that the overall interaction of the employees with the technology may not be optimized and as such employees may have to face difficulties in interacting with the technology with more ease. 4.4. Rewards Rewards are both intrinsic and extrinsic in nature and refer to how people associate them with their work. The overall performance of the managers as well assembly line staff depends a lot upon their association with the reward and how they perceive both intrinsic as well as extrinsic rewards to be obtained from their work. (Kominis & Emmanuel, 2005). Rewards may be an issue for the employees too especially intrinsic rewards because there have been new hiring within the unit and existing employees may feel de-motivated as they were not chosen as the logical replacements for these posts. 4.5. Leadership Leadership task is basically to balance the different other tasks at the organization and as such refers to a balancing act that needs to take place. Thus leadership needs to be seen from relational perspectives and must be competent enough to create synergy between different organizational functions. (Cardona, 2000). Leadership from this perspective however seems to be lacking for the unit as Mr. Denton looks to keep his communication restricted. 4.6. Helpful Mechanisms Helpful mechanisms are simply routine tasks such as budgeting etc that help achieve the organization its objective. There seems to be no issue in this regard with the management of the unit. 5. Recommendations and Conclusion The above diagnostic tools and discussions indicate that there is a gap in the communication between the employees as well as the new plant manager. This problem is critical from the perspective of change management because it asks for more participation from the employees. (Essers, Bohm, & Contu, 2009). A change therefore can only be brought in by introducing the organizational ideologies within the organization. In order to achieve this however, Human Resource Management will play a significant part because being viewed from the strategic point of view; HRM has to act as a support activity to allow managers to better plan the organizational change. (Diefenbach, 2007). In order to bring in more change, it is therefore critical that at least structure as well as relationships within the unit are reorganized in more flexible manner so as to encourage participation of other members of the staff too. This will help unit to become more coherent in nature and will achieve the necessary flow to align itself with the overall organizational objectives and mission. Mr. Denton also needs to focus more on the development of the employees by creating open lines of communication as well as delegating the work to lower staff. 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