Challenges Facing Change Management Process at Lenovo - Case Study Example

Report on challenges facing change management process at Lenovo This report is meant to up the new CEO regarding the challenges facing change management process at Lenovo’s research centre in Beijing. The report highlights on challenges emanating from the organisational structure, culture and other business functions. With regard to organisational structure, this report examines some of the challenges contributed by the leadership style and how they can be mitigated. On the other hand, the challenges related to organisational culture that can affect change management as examined in the report include the reluctance of the top management to involve other employees in the decision-making process. In addition, the report also discusses other business functions such as knowledge management and ethical practices at the workplace and how they can affect the change management process. This report also provides recommendations for the new CEO on how the challenges to change management can be resolved before the implementation of proposed plans for the research centre in Beijing by the new CEO. Table of Contents 1.0 Introduction…………………………………………………………………………………4 2.0 The organisational structure of the Lenovo’s research centre in Beijing……………………4 3.0 The organisational culture at Lenovo’s research centre in Beijing………………………….6 4.0 Challenges with regard to other business functions at the research centre………………….8 5.0 Recommendation for improvements for the research centre to overcome challenges during the change management process…………………………………………………………………9 6.0 Personal reflection…………………………………………………………………………..9 7.0 Conclusion…………………………………………………………………………………..11 8.0 References…………………………………………………………………………………...12 1.0 Introduction The purpose of this report is to inform the new CEO regarding the challenges facing change management process at Lenovo’s research centre in Beijing, China. As a firm dealing in the production of electronic gadgets such as computers, research is critical to improving Lenovo’s products in the market. Due to technological advancement and a rapidly changing global business environment, implementing new plans is critical in terms of ensuring that a firm remains relevant in a competitive business environment. As such, the challenges facing change management processes at one of Lenovo’s research centre needs to be addressed urgently to keep the company on track with regard to its present and future plans in the production of goods and services. Implementing changes in the firm has an impact on the organisation structure, culture and other business functions (Helft, 2013). Since the new CEO may have proposals regarding changes that can move the firm forward in terms of achieving success in the global marketplace, it is necessary that he becomes aware of the challenges facing change management process in one of the firm’s research centre. Since most firms have shifted from the traditional industries to knowledge-based industries, strengthening the R&D capabilities is necessary for the company to compete at the same level with other leading companies in the global market such as Dell, for instance (Junarsin, 2009). 2.0 The organisational structure of the Lenovo’s research centre in Beijing The organisational structure at Lenovo’s research centre is flatter in order to allow employees to work in teams. However, there are challenges in terms of the leadership style adopted by the top management. The management prefers working under the closed door and this to an extent impacts negatively on the employees working at the research centre. In most cases, the decision-making process becomes a challenge where the management ignores the input of other employees working in teams (Keller, 2014). The management at the research centre finds it flexible to deal directly with the team leaders, however; it is important that they take an interest in the work of other employees in the different teams at the research centre. While the structure allows employees to work in teams, the authoritative nature of leadership applied by the top management can interfere with the work of the various teams because their input is ignored in the decision-making process. In a company such as Lenovo that focuses on knowledge management as a way of improving technological development, the sharing of information is critical. Further, the research centre consists of employees with different skills who work together to ensure that Lenovo meets its desired objectives in the competitive marketplace. However, the lack of involving other employees in the decision-making process tends to impact negatively on the change management process at the research centre (Pettigrew et al., 1992). This is because the decisions emanating from the top management tends to conflict with the views of the various teams working at the research centre. As such, there are delays in terms of innovating new products to be introduced to the market. The delays are caused by a bureaucratic process where inventions in the various teams have to go through different management levels for approvals. In some cases, these innovations are halted in their initial stages because some of the top management has conflicting views with regard to how the research centre should move forward with regard to innovation and creativity. Developing R&D capabilities at the firm’s research centre require cooperation from every person. However, where a consultative process lacks, the work done by the various teams is affected because there is lack of clarity regarding how the teams should carry out research meant to improve quality of the Lenovo’s products in the marketplace (Keller, 2014). The aim of Lenovo as a global firm dealing in the production of electronics such as personal computers is to develop user-friendly products that resonate with the customers’ needs globally. As such, the type of organisational structure adopted by the firm’s research centre is critical in facilitating innovation and creativity. In a knowledge-based market, innovation and creativity are essential for firms to remain relevant in a competitive global business environment (Gehani, 2013). As such, the goal of enhancing innovation and creativity to develop user-friendly products requires the company’s research centre to focus on an efficient management of a flatter structure. In addition, the leadership style adopted by the management rather than being authoritative should emphasise a participative process where every employee’s view is considered important towards meeting the overall objective of the firm’s research centre. Change management process requires an environment where the top management deals directly with employees to ensure there is no conflict of interest in terms of improve Lenovo’s R&D capabilities (Gehani, 2013). 3.0 The organisational culture at Lenovo’s research center in Beijing As a global brand, Lenovo employees’ people from different cultural background and its research centres in Morrisville, Beijing and Singapore are not an exception. Consequently, a number of challenges tend to emerge during the implementation of new changes in the firm’s research centres, for instance. This is because of the different values and beliefs held by a culturally diverse workforce (Kotter & Heskett, 1992). During the change management process, some of the noticeable challenges with regard to organisational culture are the attitude of some workers. In any organisation, promotions are normally effected depending on the skills and experience of workers. However, there are some employees and particularly in the top management who are adamant in maintain the status quo. In a firm that focuses on innovation and creativity, promotion acts as an encouragement and improves employee involvement (Kotter & Heskett, 1992). Conversely, where the top management is reluctant to reward hardworking employees, a negative attitude towards work can emerge at the workplace. As a result, productivity will reduce, and the firm’s competitive edge in the market place will be affected. Other employees may eventual resign and seek employment in other organisations where their efforts will be valued by the top management (Keller, 2014). On another note, effective communication at the firm’s research centre is on the decline, and this tends to affect the change management process. For instance, the top leadership is reluctant to include the views of other employees in the decision-making process, and this affects the implementation of new plans. In an organisation that focuses on a flatter structure, the input of employees working in various teams is critical in making a decision that is acceptable to everyone at the workplace. In order to effect changes in an organisation, some of the behaviours embraced by workers also need to change. However, behaviour change at the workplace can only succeed if the top leaders communicate directly with their juniors and make them understand the importance of new changes in the organisation (Schein, 2004). At Lenovo’s research centre in Beijing, the attitude adopted by employees poses a challenge in the implementation of new plans. This is because employees in the various teams feel that their effort is not recognised by the top leadership. As such, they view any action taken by the top leadership is only meant to serve their personal interest rather than the organisation in general. In this sense, it is necessary for the top leadership to emphasise a consultative process during the implementation of new plans. In addition, the leadership at the research centre needs to learn and understand the values and beliefs of a culturally diverse workforce in order to achieve success during the change management process (Lei & Slocum, 2005). 4.0 Challenges with regard to other business functions at the research centre The three research centres established by Lenovo serve the purpose of ensuring that the company continues to update its products to meets the demands of customers in a competitive global marketplace for computing. As such, the company needs to deal with challenges such as knowledge management and ethical conduct of both the top management and other employees in order to meet the desired goals of the company in general. For instance, innovation and creativity in the company require sharing of knowledge (Moschieri & Mair, 2012). However, there is a challenge because some of the employees are not willing to share the information with the various teams that they work. As a result, the company is affected during the change management process due to the mistrust that develops among employees where knowledge sharing is impeded. On the other hand, due to the pressure for employees to invent new product lines, some employees may engage in unethical practices such as intellectual property theft, and this may affect the Lenovo brand globally. In addition, the leadership may also create challenges when managing the change process by taking sides instead of supporting the efforts of all the teams at the research centre. Promotion of employees should also be based on merit rather than safeguarding the interest of a few individuals at the workplace (Lei & Slocum, 2005). 5.0 Recommendation for improvements for the research centre to overcome challenges during the change management process The flatter structure at Morrisville research centre requires a participative process by the top leadership. The views of the various teams should be included in the decision-making process when effecting new changes at the research centre. There is a need for the top leadership at the research centre to communicate directly with employees in the various teams rather than dealing only with their team leaders to enhance employee involvement and support for new changes. Promotion at the research centre should be on merit rather than safeguarding the interest of a few individuals to avoid a negative attitude by employees towards the top leadership and the company in general. The research centre needs to embrace an ethical code of conduct to ensure the top management and other employees do not engage in unethical practices meant to give the firm a competitive edge over the competition. Behaviour change during the implementation of new plans requires the management to embrace a consultative process where employees are made to understanding the importance of supporting the new changes. 6.0 Personal reflection From a personal point view having gone through the HRM 101 course, the new CEO need to look at the aforementioned challenges prior to implementing his new plans at the Beijing research centre. This is because in order to implement and achieve success with the proposed plans, the new CEO needs to understand the present organisational structure, culture and other business functions at the centre. Consequently, he will be in a position to identify where the problems affecting change management process emanates and rectify the situation prior to implementing the proposed plans (Lei & Slocum, 2005). In a flatter structure, the new CEO needs to examine the leadership style adopted by the top management whether it is authoritative or democratic. For instance, in a department that focuses on teamwork such as Lenovo’s Beijing research centre, the new CEO needs to confirm with the leadership style is participative. This is because in a team, the views of every employee are critical in deriving the best alternation action to take during the change management process (Keller, 2014). However, where employees work in groups, but the top leadership maintains an authoritative leadership process, the performance of employees tends to drop because they feel their effort is not taken seriously by the management. As such, the new CEO needs to ensure that the top leadership practices a participative leadership style in managing the various teams working at Lenovo’s Beijing research centre. On the other hand, challenges with regard to changing the organisational culture during the implementation of new changes require the new CEO to communicate directly with all employees in order to understand their views and how the firm can move forward without any conflict of interest held by a culturally diverse workforce (Kotter & Heskett, 1992). Communicating directly with employees foster understanding and support for the new changes by employees because the process engages a consultative process. With regard to other business functions at the centre, the new CEO needs to deal with the issues affecting knowledge management and ethical practices prior to implementing new plans at Lenovo’s Beijing research centre in China. In essence, change management process can achieve success where both the top management and other employees do not differ with regard to the proposed plans. As such, the new CEO should prioritise an efficient and effective communication process to ensure that everyone understand and support new processes taking shape at Lenovo’s Beijing research centre (Xiaoya & Marler, 2012). 7.0 Conclusion Change management in any organisation is a challenging task because it affects the organisation structure, culture and other business functions. As such, the new CEO of Lenovo needs to consider these factors prior to implementing new plans at Lenovo’s Beijing research in China. In essence, understanding the challenges that exist at the research centre will ensure the new CEO make decision that is well informed and necessary for tackling the challenges affecting change management process at the research centre. In addition, implementing new plans require the new CEO to communication with other employees regarding the urgency of the proposed changes. Communicating the new plans to other employees is important in terms of ensuring that the new changes are supported by everyone at the research centre. In addition, the new CEO need to engage the top management in implementing the new plans to ensure that there is no conflict of interest that can affect the change management process. 8.0 References Gehani, R.R. 2013.Innovative strategic leader transforming from a low-cost strategy to product differentiation strategy. Journal of Technology Management & Innovation, 8(2), 144-155. Helft, M. 2013.Can Lenovo do it? Fortune, 167(8), 100. Junarsin, E. 2009. Managing discontinuous innovation. International Management Review, 5(2), 10-18. Keller, R.H. 2014. Is team based tacit knowledge transferable? Players as strategic resources. Journal of Management Policy & Practice, 15(4), 40-50. Kotter, J.P., & Heskett, J.L.1992. Culture and performance. New York, NY: Free Press. Lei, D., & Slocum, J. 2005.Strategic and organizational requirements for competitive advantage. Academy of Management Executive, 19(1), 31-45. Moschieri, C., & Mair, J. 2012. Managing divestitures through time- expanding current knowledge. Academy of Management Perspectives, 26(1), 35-40. Pettigrew, A.M., Ferlie, E., & McKee, L.1992. Shaping Strategic Change: Making Change in Large Organisations. London: Sage Publications. Schein, E.H.2004. Organizational Culture and Leadership, Third edition. San Francisco: Jossey- Bass. Xiaoya, L., & Marler, J.H.2012.Strategic human resource management in China: East meets West. Academy of Management Perspectives, 26(2), 55-70. Read More