Managing Organisational Design and Change - Assignment Example

Introduction

Companies today have put more emphasis on the productivity derived from its members. The emphasis is possible as the aim of the management is to seek the means in which the services and products have a chance of improvement. Therefore, companies utilise Total Quality Management approach towards achieving this target. Either TQM must have an establishment on the company based on the set international standards or the company can decide to personalise it. TQM aims at ensuring quality management through the involvement of the customer (Omachonu & Ross, 2004). The classification of the processes is reliant on planning and acting on mostly preferred categories as PDCA (Ćwiklicki, 2016). Based on PDCA, the management ensures that the principle elements meet the standards. The elements include; customer-focus, total involvement of the employee, and ensuring the system is process centred.

Additionally, there has to be an integrated system, an approach that is strategic and systematic which ensures continual improvement and decision-making based on facts. The achievement of the set elements is through efficient communication and a good way forward. The company planners maximises the importance of ranking scenarios as a forecasting instrument for the plans (Davidson, 2014). In the case that the ranking of the scenarios fails, the organization must utilise strategic drift, which comes with response to a changed environment. In this paper, in order to capture the tools, the focus is on Petsmart Company. A retailing comoany in Arizona that helps in understanding the different quality tools such as histogram and Pareto. Additionally, the Petsmart must ensure that the usage of the Quality management tools such as histogram, checklists and cause-effect diagram is in place (Wiley, n.d).

Besides, the paper discusses the concepts of principles of management using two theories. The theories are classical scientific and classical administrative. Finally, the management must draw a balanced scoreboard for tracking the progress.

Question 1

Ranking Scenarios is valuable for planners in analysing Scenarios when used as a strategic forecasting instrument. In ranking the scenarios, there is a possibility of discovering what potential the future environments hold. Thus, ranking scenario planning is an anchor of creativity and intuition in the strategic planning process. Scenario ranking ensures that the possible threats and opportunities in the future are timely identified (Torsten, Philip & Stubner. 2010). Even though at times identifying the exact nature of the given threat might be a challenge, the organization is in a better position to navigate through the forecasted solutions.

When planners do the ranking of the scenarios, it is possible for them to identify the potential pathways and see what is common in the scenarios. The clear indication is through the types of future created which are possible future (future knowledge), plausible future (current knowledge), probable future (current trends) and preferable future (value judgments). Conscious thinking bases on the long-term future and creates possible implications to current strategies. The ranking is a creative process that enables time for reflection on the future of the organization (Salmeron, Vidal, & Mena. 2012).

Scenarios ranking happens when several scenarios need reviewing or possible combination thus enable commonness checking. Therefore, the scenarios are set in between optimistic-pessimistic with the most preferred ranging to the least favourite view of the future (Maack, n.d). In setting the scenarios, the steps followed include:

• Framing the Issues

In this step, the critical issue or question becomes the central point of assessment as the initial step of the whole process. The managers must identify the issues affecting the organization at all times.

• Identifying and Ranking the driving forces

To determine the driving forces, an individual must allow the chances for a brainstorming moment. Brainstorming session leads to the generation of the central issues or questions for an address. There are times that the additional offline research is done on the identified trends.

• Identifying and Ranking the Critical Uncertainties

The significant risks become the central point for framing the scenario matrix, which leads to identifying the commonness. Things that are of greatest importance and bear the highest uncertainty get top priorities in this instance.

• Creating the scenario Matrix

The quadrants created from the future uncertainties provide combinations of the possible future for assessment. A description of each scenario frames the uniqueness for all the participants.

• Creating Paths to the given Scenarios

The scenarios carry probabilities of them happening in the future. There is the creation of the pathways to each of the future based on the specific issues and characteristics. The pathways include the elements of technology, research, the public, and politics. The pathways creation is independent of each other as the futures are equally unique. The other steps are identifying the common elements and the signposts. Common elements are viable as they are a result of extensive range of possibilities.

A concrete example is a company that wants to forecast on the company’s future. The first thing the executive does is, they assess the implications of the different approaches. The approaches must be helpful in managing the services of the company. Then the executive must identify the key driving forces. The driving forces within the managerial department can be setting rules, coming up with strategies that are clear for the company. The driving forces then are ranked in relation to their importance with the management. The importance can be Highly important or Highly unimportant. Then two attributes from the driving forces must receive consideration. Finally, the executives decided on the scenario ranking and that is on the basis of monitoring them. In monitoring, the important components are assessed.

Question 2

Managers are the overseers of projects in an organization. There are issues that they have to handle in order to prevent strategic drift. Management may find itself focusing on minor problems and abandoning the major issues at hand. Managers are the overseers of project in an organization. There are issues that they have to handle in order to prevent strategic drift. Strategic drift is an aspect of strategic management. it refers to organizational response to changes in its environment. This can bring about a serious tragedy and thus should be avoided (Sammut‐Bonnici , 2015).

Culture is among the major issues for managers to handle when preventing strategic drift. Culture provides for the foundation of the organization. Things happen the way they do in a repeated manner. Plans and executions follows the traditional methods. Embracing a new way of doing things is not easy thus; the manager has to make sure change implementation occurs if it is the best way forward. The future of many companies usually is in the form of the past. E-V-R theory points out the major issues that may cause strategic drift. These are environment, values and resources.  Leadership and culture fall under values, opportunities and threats are environmental factors while strengths and weaknesses are resources. They are discussed below in detail. This usually leads to strategic drift (Benedetta, 2011).

Environment is another issue for managers. The environment keeps changing. Research assignments on the changing trends must happen in order to keep up and avoid strategic drift. Managers should not overlook this issue. They should adjust according to the needs of their immediate environment and beyond it.

Managers should take seriously the issue of competition A healthy competition should be maintained. Competition will make the employees to come up with more innovative ideas that will keep the company going. Managers need to make sure employees do their jobs well and efficiently to beat competition.

Analysis is another issue for managers to seriously consider. An organization has its specific design. For a change to occur, the manager and those involved in implementation have to carry out an analysis. There are two types of analysis; internal analysis and external analysis. After the analysis, a review on the strategic performance follows. Analysing a company gives the manager a view on the state of the company. He or she can make decisions that will save the company.

Finance is another managerial issue. The economy affects a company and thus the finances should be adequate. A good manager has to ensure a company does not go bankrupt. Bankruptcy leads to collapsing of company. When purchasing items for the organization, a manager should ensure the most important items get a first priority.

Consequentially, managers play an important role in preventing strategic drift. They are the leaders. With proper leadership and insight, the various issues that relate with strategic drift are properly handled.

Question 3

Ishikawa uses Taguchi method in explaining how an organization can use the quality tools to achieve its goals. In the case study, Ishikawa realizes that the Logistics Department is responsible for ensuring that the employees of the Petsmart Company know how to use the tools. The case study illustrates how Petsmart Company can use the quality tools towards achieving the organizational goals. The reference done is in the processes of quality planning, quality improvement and quality control using the quality tools. The research focused on the processes and the sub-processes involved in the case study organization. Quality tools are vital in analysing the historical data enabling the organization to identify the possible opportunities (Strojniski, 2009).

Ishikawa identified seven quality tools consisting of flowcharts, checklists, scatter diagrams, control charts, Cause-and-effect diagrams, Pareto chart, and histogram. The totals placed responsibility on all the employees. Therefore, it was a necessity that all the staff recognizes the importance of Total Quality Management Tools.

However, the case study utilized Control chart, Pareto diagram, Record sheet and histogram among the quality tools. Histograms were crucial in identifying the common problems associated with the organizations and how to provide support towards appropriate actions (Fabio & Sousa, 2013). Two histograms constructed showed the variation over time in the nonconforming components represented as a percentage. Histogram revealed that the nonconforming parts rate is higher in the preparation section in Petsmart Company. On the other hand, the nonconforming parts percentage in the assembly section was small almost for considerable days.

Fig. 2 Histogram of nonconforming components in preparation (Fabio & Sousa, 2013 p.3)

The second histogram elaborated on the influence of the preparation section of the organization. The percentage represented nonconforming components resulting from the section of preparation. Therefore, it is clear that the histogram showed the frequency distribution of the observed items in both sections. From the histogram, it was hard to know the origins and sizes of the problems.

Hence, the need for a Pareto chart to help classify the nonconforming components based on their backgrounds. From the Pareto Chart, it was clear that three of twelve origins had a significant contribution to the final percentage of the nonconformities. Therefore, based on the findings of the Pareto Chart, it was necessary to design an Attribute Control Chart to verify the production. From the design, some control were above the Upper Control Limit, an indication of assignable causes. The tools used in this process indicate that the preparation section led in the troubles. The preparation section problems extended to the assembly section (Fabio & Sousa, 2013).

The next quality tool identified under the PDCA Cycle is the Flow Chart. The flow chart supports the cause-effect diagram. Unfortunately, flowchart identified the most problems necessitating need for prioritization of the implementation process.

Fig. 3 Cause-effect diagram of nonconforming FL components (Fabio & Sousa, 2013 p. 4)

Comment: The whole process of the organization in Petsmart Company in Arizona gets a new clear direction with the use of the quality tools, which boost the processes and the sub-processes. The tools are paramount as they identify what holds the company back. That gives the company a better approach to the future prospects.

Question 4

F.W Taylor established the objective system of management that focused on optimizing the work a person does as opposed to the ideology of making a person work as hard as they can.

Fredrick Taylor and his counterparts introduced the concepts of scientific principles of management. The principles included:

• Structuring the organization
• Inspecting the product
• Work-study
• Controlling the production process
• Gauging

The theory is composed of two branches: Classical scientific and classical administrative. The classical scientific focused on production methods while the classical administrative focused on improvement of management practices.

The greatest prosperity achievement is through minimal expenditure on labor, capital and natural resources (Taylor, 2007). The principles advocate that the interests of the management and the employee should be in congruence (Taylor, 2007). It opposes the traditional ordinary methods, which separated the interests of the two. The work-study is relevant and helps in developing and improving the workers’ skills. Focus should be on training the employee to enable them produce at quickest reasonable pace and the highest efficient level possible (Taylor, 2007). The work-study is the origin of the recently adopted in-service training and workshops by companies and organization.

Gauging and production management are critical because it ensures workers produce at the best rate. Timing essential elements and keeping their records, helps avoid systematic soldering of employees, which reduces their output (Sheldrake, 2003). The lethargy of some workers is encouraged by trade unionism, which involves paying all employees same amount of money for a day’s work. The introduction of an incentive system to pay every worker by his or her individual results can help curb lethargy (Sheldrake, 2003). The system lays the basis for the signing of performance contracts, which is a requirement in the current job markets.

One of the companies that implemented the principles of management is Bethlehem Steel Plant. It deals with unloading of iron from rail cars. There was the improvement in production and reduced labour (Cole, 2004). The rate of unloading increased from 12.5 tons to 47.5 tons per worker. Improvements were with the use of correct movements. The company changed the design of shovels and was able cut down human labour from 500 to 140 people. The re-designing also enabled them to increase the length of working hours. Finally, they increased motivation by developing an incentive system, which was to reward workers who attained a particular standard (Cole 2004). Because of these changes, the company witnessed increased productivity within a short time.

Question 5

A major organization, which was leading in adopting Total Quality Management (TQM), might move its focus and investment because of various disadvantages. Total Quality Management is an organizational approach of management that is comprehensive and structured and its aim is to improve a company through its services and products. Foremost, it is evident that TQM is a long-term process, so, the benefits are not visible for some of the years. It means that employees will start experiencing the benefits of total quality management when they get used to doing improved quality work. The organization will be slow in its growth since the employees might take a lot of time to adjust to new changes and break from old habits (Roland, 2010). Besides the company will have to modify the culture to adopt to total quality management since with time, a new culture develops.

Another factor that would contribute to the downfall of an organization using total quality management is an emergency of a gap between the whole association and the top management. Therefore, implantation of total quality management needs an effective reconsideration in the company. Furthermore, if there is dishonesty in excellence, quality, and validity of data, total quality management will not persist (Goetsch and Davis, 2014). In addition, the culture of the organization might highly be harmed considering this disadvantage hence cooperation between the whole company and top management is very crucial.

Production disruption in the business occurs since the employees need to undergo comprehensive training during execution of total quality management. The productivity drops during the initial training period. Additionally, communication for quality increasing teams takes employees away from their responsibilities. The work productivity of the association usually weakens at the beginning of the TQM implementation. It is clear that the organization would incur too much loss in productivity and may take a longer period to catch up with competitors (Mohammed and Amer 2014).

Lastly, the employees may be resistant to changes in the organization. It is quite discouraging since workers would feel less secure in their jobs. They might not like control on how to conduct the business and change from what they are used to (Oakland, 2014). Consequently, this may lead to loss of employees in the company because the pressure would be too much for them to handle. Besides, older workers would feel intimidated by the implementation of total quality management. Therefore, the organization would rather retain the staffs who have been there for a long time since they have experience in their work. Additionally, resistance among the workers would prove the company is incompetent thus reducing the sales and the profits.

Question 6

Balanced Scorecard

Performance management refers to process of ensuring achievement of objectives and goals of an organization.  Certain activities like constant communication can be employed in performance management. A balanced scorecard is a system for deliberate preparation and management. Its uses are extensive; it is used by different organizations worldwide. Additionally, it keeps business activities at par with the organizations’ visions as it integrates the measurement system with the management system. Generally, it manages performance (Kaplan & Anderson, 2013). It deals with both financial and non-financial items of data. This improves the internal and external environments.

Doctor Robert Kaplan and Doctor David Norton came up with it as a performance measurement. It consists of automation tools and methods of design. It enables managers to keep track of activities that go on in the various departments of the organization. Consequences that will arise from these activities controllable when monitored. It keeps employees in check, as their performance records are up-to-date.

Balanced scoreboard is an improvement of the traditional performance measurement system. It makes up for the weakness of the traditional performance measurement. Its primary focus is on customer satisfaction. A customer has to be satisfied with the products and services. It provides a platform for growth as it focuses on the future of the organization. The balanced scorecard facilitates attainment of an operational internal environment (Malina & Selto, 2001, pg.62).

Differences between Balanced Scorecard and Traditional Performance Measurement

A balanced scorecard is different from the traditional performance measurement because they work differently. Traditional performance management system used to track only the finance of a company or organization while balanced scorecard tracks both financial and non-financial data items. It deals with the profits made and the losses incurred. The focus is on financial measures, which are lag indicators according to Kaplan and Norton. This is because they only show data of the collected in the past thus shows the history of performance.

Unlike balanced scorecard, the traditional performance can drive managers to make haste decisions that are short term and negative regarding the organization. This is because of its reliance to financial metrics (vaishak, 2012).

The main reason for developing Scorecard was for modern environment organizations that are knowledge based. On the other hand, traditional performance management system was designed for mass-production of tangible assets and it aided in decision-making. For balanced scorecard, intangible assets must cater for the standards, for example, intellectual capital.

Traditional performance cannot directly link to an organization’s strategy but the balanced scorecard can. An organizations strategy relates with its vision, which is a long-term goal. Traditional performance concentrates on short term achievements. Balanced scorecard encourages positive future results. Currently, competition is high innovation is in the forefront and thus business have to be adaptive. Balanced scoreboard takes care of this, as the traditional performance is not flexible to change.

Conclusion

The progress of any company is through a proper plan put forward by the management. The plan must engage both the customer and the company’s employees. Therefore, it is notable that organizations have a collective responsibility of controlling the general functions of the company. A company must be in a position to forecast the future with the strategic scenarios then accompany it with strategic drift. Strategic drift helps the company to cope up with the change in the environment, which could be competitive environment (vaishak, 2012). Therefore, a proper utilization of quality tools will ensure increase in production, which enhances efficiency and gives competitive advantage to the company. A company’s brand and name depend on the quality of goods and services they offer to the customers.

The company must put into practice Classical scientific and classical administrative methods. The two methods emphasizes on how the employees treatment should be and how the company must operate (Brooks, n.d). In the case that the employees’ management is proper, the chances of the company’s downfall become minimal. Therefore, the company has more time to focus on investment. Therefore, with that the company can focus on its vision through balanced scoreboard. Finally, for the company to realize prosperity, they should be open to change in all sectors of the economy and plan focusing on the future.