Organizational Development: Process Control Inc - Case Study Example

Organizational Development: Process Control Inc. Name Institution Date Table of Contents Running Head: ORGANIZATIONAL DEVELOPMENT: Process Control INC. 1 Table of Contents 2 ORGANIZATIONAL DEVELOPMENT: Process Control INC. 14 2 Organizational Development 3 Introduction 3 Background of Process Control Inc (PCI) 3 Discussion 5 Fisher’s Theory of Change Management 9 The process of transition as fisher indicates. 10 Recommendations 11 Implications 11 Conclusion 12 Reference 13 Organizational Development Introduction Organizations are often faced with increasing pressure to swiftly adapt to the global market, the regulatory as well as the environmental pressures so as to maintain their competitiveness and survival. The pressure has no restrictions to the public sector either, as the commercial organizations in the private sector are heavily affected. As such, design and change have always taken a centre stage in solution provision. Behind the successful products and the thoughtful services lies the capacity of driving change in the business models, customer experiences as well as the organization in general. Design, mainly concerned with creating the preferred future, is an agent of change, as what is already there can not be designed, but rather what is yet to come. If careful management is not ensured, rapid change can have significant consequences on the organizations as well as the individuals working within. This creates new challenges to leaders who must otherwise balance emphasis on improved efficiency and also effectiveness with morale maintenance and retention of the key personnel. This paper will share the key insights concerning organizational development in relation to Process Control Inc (PCI). Background of Process Control Inc (PCI) Process Control Inc (PCI) is a European company and an American conglomerate arm with its location in the UK Midlands. Its operations started in 1979, due to a merger with a particular subsidiary of a British electronics company. The company specializes in producing circuit boards that are printed ((PCBs) and equipments of process control. The PCB business got significantly expanded in 1988 when the parent company, after transferring USA work, concentrated much of the manufacturing of PCB there. In 1990, the company engaged in production of more than 95% of the PCB needs of the conglomerate, while employing 395 individuals. The structure of the company was initially hierarchical before some transitions were made. A chart illustrating power flow in a hierarchical structure The rapid PCB assembly expansion in 1988 came along with significant operational problems that were associated with delivery and product quality. As a result, the USA –based parent company faced increased difficulties as its product deliveries as well as quality suffered. Also, the increased workload resulted in PCI relying majorly on technology as well as marketing. PCI attributed most of its problems to the marketing and technology staff that are claimed to be making erratic as well as unrealistic demands. Managers also claimed the forecasts in volumes as well as the product mix were hardly accurate, further adding that the technology division frequently altered the designs of PCB during their manufacture. The result was a dwindling manufacturing performance, rather than recording improvement hence translating into a significant failure in meeting the completion dates that were targeted. Quality problems that were concomitant were also experienced. Discussion For a successful organization to exist, the theories, frameworks, and other factors crucial to defining what entails effective organizations, both profit and non-profit, are crucial. Organizational development that is successful, as indicated in Sullivan (2010), entails efforts that are not only planned and organization wide, but also managed from top so as to enhance the organizational health as well as effectiveness. This is achieved by planned interventions in organizational processes using the knowledge of behavioral science. Change, as such, has to be planned so as to be successful Jones et al (2006). The case of Process Control Inc (PCI) highlights major issues that are pertinent to organizations and that are often faced by various organizations. It also indicates some of the solutions most organizations always see as befitting. In order to experience successful organizational development, organizations have to engage long-range approach in planning their activities before they undertake any action, as GolembiewskiIronies (2003) indicates. The CEOs and managers from Process Control Inc (PCI) have been shown as having diverse views on planning activities. The CEO who succeeded the British CEO developed a strategic planning for the organization, creating a vision of empowering the organization to attain world-class standard and attain customer delight. His strategic plan had five elements which small groups had to develop. Such included People involvement, supplier partnering, just-in-time, total quality, and social responsibility. In practice however, he viewed the first and the last plans as being contentious as well as difficult. The rest of the CEOs who followed also seemed to work well on their plan and were quite engaged in planning activities. However, they were occasionally let down by the managers who deeply craved for power and who felt that their positions were being threatened, as anybody could suppose, they posed most resistance to any plans developed by CEOs that seemed to challenge their authority. There was one particular CEO, however, who came in 1990 and who was much reluctant on engaging in activities related to development and changes in the company, and hence could not plan. The involvement of the Materials Manager in 1991, however, seemed successful due to effective planning that incorporated ideas and commitment from the managers, tackling causes rather than problems, research activities and proper implementation. Also, Cummings & Worley (2008) state that organizational successes are felt when the organizational development is organization-wide. In such instances, the developments that were to take place and take Process Control Inc (PCI) to the next level were to include every member and every activity of the organization. The second CEO who took over from the British CEO seemed to focus much on organizational hierarchy, team building and empowerment, and the liaison in PCI, Technology and Marketing. The CEO devoted much time in studying the structure of the organization and thus realized that the structure of the organization needed to be flat. The CEO noted that all the managers (eight managers) reported to three managers who were directly reporting to the previous CEO. As far as he was concerned, this was not effective. The CEO also noted that the information and feedback process was hampered by the three managers, where the information given to the British CEO was in some ways inaccurate. To some extent, some information challenging the preferences and questioning the responsibilities and characters of the three managers never actually reached the British CEO. To correct this, the incoming CEO flattened the organizational hierarchy so that every manager, totaling to eleven managers, reported to him directly. While implementing this, the CEO made switching of jobs between the top management and the subordinates, for instance as he told two of the three former managers to switch jobs with their subordinates. In as much as such conditions were resented against by the three managers, the management team that was created became a stronger team and also created teamwork. Concerning PCI, Technology as well as Marketing, he emphasized on technology and marketing, which he claimed acted erratically hence created increased difficulty in the company’s task. The CEO, however, did not accomplish his mission before leaving since the organization members were divided on his strategies, and the managers seemed dissatisfied by his actions against them. As such there was division and confusion. The interim CEO who came in 1990 after him never considered any actions against the company situation and hence was passive, waiting for the lapse of his period. The Materials Manager who succeeded this CEO in 1991, however, became recognized for his efforts to save the whole organization using strategies that incorporated ideas form the managers and subordinates, and which overhauled all previous strategies. The manager involved the managers and the staff in the development of the plans and strategies, consulted the parent company, brought the feedback to other members and together with their inputs, implemented a successful operation. The top management has to engage in the supporting, modeling as well as espousing of organizational development strategies for the development to be successful, as stated in Rothwel et al (2009). The process of organizational development also requires the approval as well as ownership by the workers throughout the organization. In the case of the Process Control Inc (PCI) wrangles concerning decisions and strategies have been witnessed among the CEOs, managers as well as the subordinates (who seem to be majorly influenced by the managers). Many managers have been involved by the CEOs in implementing the decisions that the CEOs have come up with. The CEO who joined the company in 1989 engaged the management team in off-site and weekend-long seminar to create team work and solve problems. Such decisions, although, often create a conflict of interest where the managers feel that their power is limited and that their roles are ignored. In this company, it is only the Materials Manager who seemed to get it right as the managers and the subordinates supported the overhauling and the re-structuring of the development strategy. This was not the case with the CEOs who joined the company in 1989 and 1990 as they both had failed to garner support from the managers and the subordinates. Organizational development is always able to improve the effectiveness of an organization. It therefore has bottom-line ties. According to Poole & Van de Ven (2004), the main goal has to focus in organizational improvement, making it quite competitive by the alignment of systems of the organization with the people. The CEO who joined the company in 1990 mastered the difficulties experienced in involvement of individuals as well as social responsibility. Many people viewed the involvement of the CEO as irrelevant and threatening to normal operations of the organization. The CEO, however, managed to involve the subordinates and the managers in different roles, switching their roles so the managers could have more knowledge on what is entailed in other areas of duty, hence be effective in their operations. The marketing manager also achieved some success by balancing people input with the requirements. Also, since planned interventions are a necessity in effective organizational development, the company finally developed plans for system wide and permanent organizational changes based on the marketing manager’s strategies. The company, as a result of this, started experiencing greater improvement in quality, costs as well as delivery (Carter 2004). Fisher’s Theory of Change Management For many individuals, there is often difficulty in accepting change both in their personal lives as well as in their work environment. The case of Process Control Inc (PCI) particularly highlights Fisher’s transition process which is based on identification of grief stages developed by Kubler-Ross. Fisher’s theory of change management holds that people are often initially opposed to changes, of which after undergoing emotional stages like fear, happiness as well as hostility, they logically think of the imminent change. Change, as fisher states, cannot in anyway be forced. Likewise, subordinates and managers in Process Control Inc (PCI) became shocked and resentful when the British CEO was fired. The American CEO who replaced him in 1989, in as much as he tried to force his ideas, received less corporation and much resistance, especially from the managers. However, in the face of closure threat, an upsurge in PCB demand, and re-emergence of the original difficulties; the company members accepted the change. They thus became quite fundamental in saving the company from closure (Arrow et al, 2005). Kubler-Ross’s curve The process of transition as fisher indicates. Sequential Model for Effective Change Implementation The devil in effective change management is often in its details. Even major strategic plans can easily be destroyed when there is poor implementation. As such, successful implementation relies on clear understanding of the relevant issues, altogether with the sequential steps resulting in them and solving them. The overall organization has to be prepared for change by creating the need for change, educating people on its necessity, creating and communicating vision and removing obstacles. Having short targets, developing full change and employing it in the corporate culture is also important. In Process Control Inc (PCI), this has not been implemented as the sacking of the initial CEO was abrupt, nobody was informed of the necessity and reasons behind change, and no analysis on the underlying causes were done. Also, there were no short targets neither was there effective communications associated with consultations and feedback. It’s only with the marketing manager that such started being felt. No obstructions were removed and vision was hardly communicated by some CEOs (McLean, 2005). Recommendations Process Control Inc (PCI), despite its intensive efforts at attaining organizational development, found many obstacles. This is due to several factors that the company did not consider aforehand before engaging in the actual changes. The company, also, while carrying out the change, could have focused more on efficiency and effectiveness in issues pertinent to quality, delivery and market conditions. The parent company should have considered engaging the management team in decisions regarding the impended change and put their inputs into consideration. Besides, the quick succession of the CEOs should have been avoided, as it only created a worst situation where strategies were left half-way while other CEOs became reluctant. Also, the CEOs, the management team and the subordinates should have worked in harmony. As such therefore, the company ought to ensure that effective communication is ensured, people are well informed and prepared on any actions including change, team work ensured, and researching on problems before taking any action is done. As well, fundamental steps in change management should be considered before effecting changes (Gallos, 2006). Implications In order to deal with individuals effectively, managers and CEOs have to consider various factors crucial to the individuals. They have to listen, encourage, give responsibility, set standards and reward individuals. In dealing with various groups, the managers and CEOs must ensure team work flourishes, involve the members indecision-making as well as problem-solving and though the mutual interactions assist members handle positive as well as negative feelings (DeKler, 2007). Conclusion In the case of Process Control Inc (PCI), much can be said about the company in relation to its change management method and the turmoil it has faced. However, the apparent issue is that for effective organizational development to be achieved, factors like time frame, preparation, effective communication, right procedures, and people involvement should take the centre stage. Just as the case of Process Control Inc (PCI) highlights, effective management of power and authority in an organization is a necessity. Wrangles impede organizational development. Effective management of communication is indicated as key in creating mutual understanding among the key participants, of which without it, the vision and the goals of the organization are not effectively communicated. This may lead to failure in meeting the set targets. Process Control Inc (PCI) has highlighted several factors fundamental in ensuring successful organizational development. Reference Cummings, T. & Worley, C. (2008). Organization development & change. New York: engage Learning. DeKler, M. (2007). Healing emotional trauma in organizations: An O.D. Framework and case study. Organizational Development Journal, 25(2): 53 Rothwel, W., Stavros, J. & Sullivan, R. (2009). Practicing Organization Development: A Guide for Leading Change. New York: John Wiley and Sons. Jones, B., Brazzel, M. & NTL Institute of Applied Behavioral Science. (2006). The NTL handbook of organization development and change: principles, practices, and perspectives. New York: John Wiley & Sons. Sullivan, R. (2010). Practicing Organization Development: A Guide for Leading Change. New York: Jossey Golembiews, R. (2003) Ironies in organizational development. New York: CRC Press, 2003 Carter, L. (2004). Best Practices in Leadership Development and Organization Change. New York: Jossey Bass. Gallos, J. (2006). Organization development: a Jossey-Bass reader. New York: John Wiley and Sons. McLean, G. (2005). Organization development: principles, processes, performance. San Francisco, C A: Berrett-Koehler Publishers. Poole, M. & Van de Ven, A. (2004). Handbook of organizational change and innovation. Oxford: Oxford University Press. Arrow, H., Henry, K., Poole, M., Wheelan, S., & Moreland, R. (2005). Theories of small groups: Interdisciplinary perspectives. Thousand Oaks, CA: Sage. 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