Technological Change in ERP: Saudi Standards, Metrology and Quality Organization - Assignment Example

Title: Technological change in ERP Student’s Name: Instructor’s Name: Course Code and Name: Institution: Date Assignment is due: Technological change in ERP: Saudi Standards, metrology and Quality organization (SASO) Introduction The Saudi Standards, metrology and Quality organization (SASO) is a corporate organization that is involved, in the issuance of Saudi Standards and the implementation of Quality Systems. This is practised in different areas that may include; the petroleum products, agricultural and food products, mineral products, building materials, construction products, electronic products and textile products among others. SASO has a variety of customers that include companies and factories, whose end products’ qualities, may need to be reviewed for quality before they are circulated to different destinations for customer consumption, and aims to improve the quality of its products, with an objective of protecting customers’ health and safety. SASO has a vision of rising up to be distinguished in all standardization and quality fields, nationally, regionally and internationally. Their goal is to protect product consumers and protect the public interest, by issuing and applying quality and standards systems. SASO also aims at ensuring that fraud is prevented in addition to the prevention of dumping products that are counterfeit in the market. This is done through the organisations’ commitment to apply variety measures, such as embracing values with the core values being loyalty, neutrality, transparency and a firm commitment to the Sharia law. SASO has also gone further to ensure, there’s maintenance of standards in calibration, marking, sampling, metrology, testing and identification of commodities. In addition to these, it does inspection, alongside seeing to it that there is regulation of commodities’ standards. Another oversight function it does is, publishing Saudi standards and promoting standardisation awareness among the Saudi people. The company intends to make some technological changes in its operations and service. These changes are aimed at improving the effectiveness of the company’s tasks. It is evident that these technological changes in the ERP would affect SASO’s operation for it would involve a number of new skills that may cause SASO to hire new personnel and/or train the current employees to be conversant to the change. Technological changes in ERP are no minimal tasks to consider bearing in mind that it involves so many parties to make it actualise. Change management; implementing change in ERP The change in SASO’s ERP started in 2003 and was to come to an end in 2005, but it finished in 2006 due to the delay in the application for one year for financial reasons. Looking at the changes that an organization has to consider, in order to actualize changes it intends to bring fourth. It is evident that managing this change, needs people from employees and managers of SASO, to the external environment, who include the organizations employees, their direct customers as well as the general consumers, who use the products that have passed through SASO’s laboratories’. They need awareness of essence of standardization and quality. Change management needs people right from the planning function, through implementation to the evaluation of the changes made. It is an activity that is people involving, particularly on the case of SASO, whose processes encompasses other companies, as well as, consumers of the products (Sheilds, 2001, p. 7). Implementing change in Enterprise Resource Planning (ERP) is a major challenge that can be evidenced in the analysis of the main three challenges that SASO is facing. The three major challenges include; the financial resource difficulties that often lead to failure in developing the intended quality control measures, the second one is the weaknesses in the qualified technical cadres that makes training new personnel a challenging process. The third one is limited awareness of people and consumers, of the need of national standards and the quality mark; this is highly experienced among factories and companies. It is a major challenge, for it increases the amount of work that an organisation has to handle in creating awareness, which in turn consumes a lot of resources and time (Drury, 2007 p.45). ERP System & Change MANAGEMENT IN SASO One of the greatest tools in change management is Enterprise resource planning (ERP) is; for it involves the external and internal management information that runs across the organization. It also embraces other key areas of an organization, such as finance, manufacturing, sales and services. SASO has to empower its ERP system, so as to cope with the challenges to effect the required changes. In general, the purpose of ERP is to facilitate the inflow and outflow of significant information, between business functions within the boundaries of the organization, as well as, connections with the outside stakeholders (Ramaswamy, 2007, p 145). This means that SASO should empower its ERP in a manner that the flow of information makes the internal functions of the company run smoothly, to see to it that the goals are reached at. In addition to this, its ERP should connect its operations to its stakeholders who include the directors; the organization provides the standardization and quality service to, as well as consumers of the products (Brown & Vessey, 2011 p.41). The changes technology with regard to Enterprise resource planning (ERP), affects SASO for it empowers its ERP in a manner that the flow of information makes the internal functions of the company run smoothly, to see to it that the goals are reached at. Technological changes would certainly bring fourth increased speed in the sharing of information, within and without the organization. This is in addition to the fact that, ERP connects SASO’s operations to its stakeholders, who include the directors; therefore the changes will stretch across the organizational boundaries. The changes will too improve the standardization and quality service to the company’s it serves, as well as consumers of the products (Brown & Vessey, 2011, p.41). Literature Review It is evident that the paper looks at issues surrounding the technological changes in relation to ERP. Enterprise resource planning (ERP), being a great tool in change management, needs a critical look, for it involves the external and internal management information that runs across the organization. In the event that new technology comes in, it may alter the forms by which information is transferred and this call in for underlying factors in the whole process to be assessed. The paper also focuses on the ERP changes; through embracing an explanation on how other key areas of an organization, such as finance, manufacturing, sales and services. SASO has to empower its ERP system, cope up with the challenges that affect the required changes. In general, the purpose of ERP is to facilitate the inflow and outflow of significant information, between business functions within the boundaries of the organisation, as well as, connections with the outside stakeholders (Ramaswamy, 2007 p.37-42). This means that SASO should empower its ERP in a manner that the flow of information makes the internal functions of the company run smoothly, to see to it that the goals are reached at. In addition to this, its ERP should connect its operations to its stakeholders, who include the directors, the companies provides the standardization and quality service to, as well as consumers of the products. Models and approaches to Organizational change There are many approaches to organizational change. They include the ‘organizational structural approach’, which is the oldest and deals with changes in the levels of policy making, communication, development, and control of policies. The second approach is the ‘job design approach’ that concerns itself with applying changes, through job simplification, job rotation, job enlargement, and job enrichment. The third approach is ‘social technical change’, which is very applicable for organizations like SASO. This approach is comprised of people and the various technologies (Cook & Macaulay, 2004 p.38). Human relations aspect is not optional in this approach because, when changes are introduced, they affect the motivational patterns of the people, their interrelationships and behaviour patterns, which ultimately determine the input, the transformations and the output of the approach (John, 2006 p.23). Who to manage the technological changes Whatever the approach in organizational change that was to be applied in SASO, with regard to managing the changes, they had to put in place everything so that the; change in SASO’s ERP started which began in 2003 and had to come to an end in 2005, but it delayed and finished in 2006 due to the delay in the application for one year for financial reasons.. It still remains that some resistance to change is expected. Researchers have carried several investigations, on why there is resistance to change, however, to date there is no universal rationale why human beings would be resistant to change. If the approaches are compared, the first organizational approach of ‘organizational structural approach’, which entails changes in policies, communication and control, may cause people to resist change for they may dislike the new polices, or fear the outcome of the implementation of the new policies. Application of job design approach’ which touches on change in job simplification, rotation, enlargement, and enrichment, may lead to resistance of change by people concerned, due to fear of more responsibilities, fear of losing their jobs and the fear of uncertainties concerned with the change (Khosrowpour, 2006, p.44). In addition to these, Application of ‘social technical change’ approach may also face resistance, in the case that employee or people are not conversant with the new technology or techniques needed to be used. There is always some resistance to change, which should be handled well by management. In SASO, change management should be well addressed by the Board of Directors, headed by the Minister of Commerce and Industry, including the respective governor’s in-charge of the projects on the field. Leadership Role and Style to manage Change Change management particularly with regard top ERP requires a bigger input from the leadership, in terms of the leadership styles they use in management. The leadership style that is applied as well as the roles that leaders use in carrying out the change implementation is very essential. The leaders are supposed to give direction on how the processes will be carried out, as well as the time lines that the change will take place. SASO has come up with a change management program, with the objectives to be attained; Management should break this down as well as explain to the people concerned what the implication of the change involves (John, 2006, p. 145). Application of leadership styles such as autocratic, as well as rigid application of bureaucratic leadership styles may not yield best results as employees as well as other stakeholders left out of the process will feel being neglected. It may also cause a feeling of lack of motivation and collective responsibility, in the whole process. SASO should endeavor to embrace leadership style such as democratic so as to maximize the effectiveness of the process, as well as the effectiveness in terms of the output of change management (John, 2006 p. 213). The roles of SASO leaders starting from the Minister of Commerce and Industry to the other leaders in relation to the changes to be effected should be clear to the people; this is to avoid conflict and resistance to change, as well as increasing the involvement of significant people to the whole exercise. Finally, there are so many leadership styles that SASO can apply in the management of change. We have bureaucratic leadership style that would focus on the rules and regulation. The style calls for the employees to be enslaved by the laws; this further implies that the changes to be effected can be broken down to units and regulations can be laid out on how the whole exercise will be. Other ;leadership styles such as autocratic as discussed above may be applied, though they may attract failure in the project due to employees being pushed, and the feeling that comes with harassment which may not yield results (Greg & Timbrell, 2000, p. 497). Public Sector Changes In the public sector, SASO been able to facilitate positive change I the lives of many. This is through organization of workshops through which the capacity building is doe to individuals so as to enable them improve their economy. There is also the public eye in terms of the Saudi Arabian Kingdom’s Governance, who is concerned in the whole process, as well as the public, who include consumers of the products, the environmentalists, who are on the watch, on the impacts of the change particularly with regard to environmental degradation, and the general public who are influenced by the change. The changes that SASO plan begun in the change started in 2003 and was to finish in 2005, is basically for the public well being (Guy & Greg, 2000, p.494-500). The organization has also undertaken to reduce on its consumption of environmentally degrading energy and invested in green energy to support the fight for a greener and safer environment. Most Critical Success Factors for Organizational Change We have a number of the most critical success factors for organizational change, however, three main factors are discussed as follows; the first factor comprises of factors that determine and influence change in behaviour at work. They include coaching and counseling activities, the team building activities, inter-group activities, as well as the training and development. This factors influence change in behaviour towards the success of organizational change. The second factor, relates to the factors aimed at changing the organizational structure, for the success of the change anticipated, these factor include role analysis, job design as well as job enrichment. The third most critical success factor for organizational change is the factor relating to problem-analysis during change management; these factors include diagnostic activities, planning and objective setting methodologies used the process of consultation, and the business process re-engineering (Ramaswamy, 2007 p. 37-42). Technological Change & ERP in SASO SASO’s technological need is an overriding factor in the changes that are even experienced in its ERP. SASO has been on the frontline in the increase in quality of technology in the Kingdom of Saudi Arabia. SASO has played a tremendous contribution to the increase, the sophistication and quality of materials used in Saudi Arabia (Turban et al, 2011, p. 306). The increased automation in SASO has resulted I reduced operational costs and I the same connection boosted the profits of the organization. The automation has resulted increased efficiency ensuring that there is quality services provided by the organization. The time take to carry out various organizational processes has thus bee greatly reduced by the massive uptake of various Information Communication Technologies. Information sharing has been greatly boosted through the widespread use of the internal internet enabled system. This has also led to increased accountability by the employees. Supervision of the employees has also bee boosted by the uptake of the internal internet system. Through this system, the management can be able to monitor the working hours of the employees and the quantity and quality of time spent (Kotter, 1996, p. 44). Role of employee’s culture in Work Organization It is essential to give a critical look at the impact of the culture of SASO’s employee to the organisation of work in the organisation. The Work environment, it is made up of an environment that is both internal and external. Internal environment comprises of the proprietors, managers, employees of the organisation, they do shape the work environment, through the associations and the work interrelationships that are formed at the work place. There is also external environment that is made of the public, who consume products and services, investors who have their vested interest in the organisation, and the companies that the organisation serves. In SASO case, employees play a big role in the association between the company and the companies that it offers its service for. Employees play such a significant part in the overall success of change management, by shaping the environment to be conducive and receptive to change. This is why SASO is investing much on improving its Enterprise resource planning (Turban et al, 2008). Change identification in ERP SASO has identified the changes it wants to implement. These are the changes as regards to Enterprise Resource Planning. Certainly these changes would involve the input of both its employees, as well as, other stakeholders, such as the companies that SASO serves and the public consumers of the products. In addition to the main changes which is in regard to technological improvement in ERP. The various stakeholders would be involved through generation of ideas, planning and implementation of the project. Failure to involve any of these stakeholders may lead to technical problems at all stages as information will not be shared by all that are involved (Timothy, 2011, p. 44). Key implication of Changes to people and the organisation Technological changes in Enterprise resource planning will have direct implication to the people. First because it is the people that run the ERP system, secondly the equipment and machines including the maintenance of ERP databases are done by people. Therefore this change has implications to the people. The employees have to get trained in the way of using the new technologies that will come, in addition to other company’s that SASO serves (Morgan, 2006, p. 24). Change would always come with implications to both people and employees concerned, as well as, to the general organization that effects the change. The Key implications and possible issues change for the organization and people include, the implication on the company, such as technological implications that may require the company to invest in newer technology that is relevant to the change that is implemented (Oliva, 2008, p.45). The other implication to the organization may include, the structural implication, that may push the organization to adjust its operational structures to be coherent with the demands of the changes, that have tom be applied., The other implication may be related to the environment, the company may be forced to adjust to the new demands that the change will have brought by, as well as respond to the environmental pressures that may come by after implementation of the change. (i) The leadership-employees-organization may also be affected in change management This is depended on the approach of organizational change that was picked. A particular approach that is picked can either strengthen the ties between the leadership and the employees or it can bring discord between the leadership and the employees. This is one of the key implications of organizational change management. The relationship between the leadership and employees is such a significant factor that works, for or against the success in change management (Azari, 2011, p.67). For instance in SASO, the leadership which comprises of the Minister of Commerce and Industry should employ strategy in the implementation of the changes made, through early preparation that is all inclusive, this should be done with consistency so as to promote good relations between leadership and the employees, that will enhance harmony in the implementation of the change (Hiatt & Timothy, 2011, p.37) (ii) Development-structure-management objective-teamwork In managing change, it is also crucial to work on proper structures that would enhance development of teamwork. Proper and firm structures ought to be established; structures that promote good relations between the different functions that are involved in the change process, these structures should be flexible enough to allow the set objectives to be met. The structures should be closed to the destructions that are anticipated to work against the set objectives. This is possible when structures are established with the goals and objectives in mind. Management should exhibit openness to interrelationships that are in line with the set objectives so as to create a platform, where the objectives can be attained (Harrison, 2004, p.29). The objectives of SASO needs a whole broader team work among the parties concerned, such as, employees, the companies that SASO serves, and the public who consume the product. Preparation for change Effective change comes with a prepared mind, prepared sacrifice and preparedness of the people involved to the task they have to perform in the implementation of change. The relationship between manager and employees is the first step that should be checked in the preparation for change. People generally, would play a significant role in change management. This is because, managing change is a people factor, by the virtue that it is people who see the need to effect the changes, plan for the changes, implement the planned changes and finally, it is people who evaluate the implemented changes (Minoli, 2010, p.33). The other resources are only available as tools to be used during, before or after the change has been reached at. The significant people concerned in this context is managers and employees, for they are directly involved in the whole process of change management. SASO is made of up of 2000 employees, who are committed to their task and because the company is committed to some values such as loyalty, including those values that stipulated in the Sharia law, then there is harmony in the work force. This needs to be promoted further, as the five year change plan is coming nearer (Singh, 2004, p.51). The general preparations for change include: Preparing the parties involved in the change in terms of empowering them, to see how the change can be easily reached at by removing the obstacles , getting rid of restrictive organizational structures, improving the necessary skills among personnel involved, having well focused managers, in addition to getting rid of imaginative reward systems. It may also involve, generating a number of benefits in the short term that people can be able to see, and be involved in the changes that are planned. This will also act as motivational tool for collective involvement, towards the change processes that will ultimately make the change management a success. In addition to this, management may also consolidate short term gains to the efforts put by the work force, as well as introduce new projects with new people, who are committed to the changes that are looked forward to be achieved (Wylie, 1999, p.123). Managers and Employees Role in Managing Technological Change in ERP It is very evident that the changes in ERP cannot be effected without the input of managers and employees. A manager prepares for technological change by first making the change management process all inclusive. This means that the employee should also have the liberty to air out their concerns; it may be a concern with respect to the new technology or adjustments made. This is very necessary for it promotes collective responsibility alongside creating confidence on the part of the employee. The manager should also prepare for change through employing activities that motivate the employee, things which can build up the morale of the employee, make the employee feel recognized in the process of change, employ some reward mechanism aimed at giving the employee more interest in the tasks involved in the change processes. This can too act as a competitive tool to outdo other market player (Dehning & Stratopoulos, 2011 p.34). In other words, the manager should employ all the techniques; to see to it that all through the change management process, employee feels valued. Employees too have a role in the preparation of change, in terms of complying with management and leadership, as well as giving ideas that can make management of change effective (Monk & Wagner, 2006 p.34). The possible barriers might arise of that change on managers, include; the cost implied in motivating employees, the resistance to change by employee and the negative attitudes to change by employees. The possible barriers might arise of that change on employees includes the rigidity of employees’ culture, resistance to change and discord between an employee and a manager. This barriers above, can be overcome by the increasing the channels of communication between manager and employees, by establishing an open structure, where the weaknesses of both employees and mangers can be sorted out positively (Stranks, 2007, p.23).In addition to this, they can also be overcome through the use of newer communication channels such as the social media. The problem in meeting the costs of motivating the employees may be solved through SASO inviting external investors into the program. Managing Change to SASO’s ERP Project In the ERP Project, there are many approaches to project management and methodology that has been used over time. A sustainable approach would involve a simple five stage project management methodology that encompasses some process groups which include: Initiation; involves a consideration of the idea, it determines the nature and scope of the project (Mehdi, 2001, p.37-43). The stages include: 1. Planning and Design; after the initiation, the project is planned to an appropriate level of detail required. This includes; developing the scope statement, developing the schedule, developing the budget, selecting the team, Creating a work breakdown structure, Identifying deliverables, Risk planning, and Communication planning (Sheilds & Mureell, 2001, p.9-10). 2. Execution; Execution involves the processes that are used to complete the work defined in the project management plan (Yusuf & Abthorpe, 2004, p.87). 3. Monitoring and controlling; involves managing and tracking the project. 4. Closing; it involves splitting up the project team in the change management process, finishing all activities across all process groups, and signing off the project with the customer (Mehdi, 2001, p.37-43) . Risks involved in the initiation of the changes are also quite many. The main challenge is the risk of incurring high costs I the initiation of the projects. This means that if the processes are not well taken care of, the company might end up making huge losses. Failure by the organization’s staff to adapt to the new changes might render the change management process to be ineffective. This might also result in huge losses (Yusuf & Abthorpe, 2004, p.86). Conclusion and Recommendation In conclusion, the said ERP changes that they want to implement, are likely to be a success if management employs more input, to ensure that people factor in the whole process of change management, is given priority. This should begin from the planning process to the real implementation of the project. Looking at the change to be effected, then there’s need for involvement of people in the processes, beginning from the top management, through employees to the public, who consume the products that have passed through the laboratories of SASO. There is need for a closer working relationship between employees and managers, the organization need to establish structures that are open to the contribution of both employees and managers in the management of change (King, 2005, p.23). There is also need for an understanding between all the parties’ concerned in the management of change, particularly with regard to the processes that are involved in the changes, as well as, the breakdown of the plan in order to make the plan very feasible. I recommend, the following; SASO needs to as early as now, to prepare thoroughly for the changes to be effected. I too recommend that the changes to be effected should be further split, to have a feasible implementation plan for the by allocation of the changes within a specified time framework. In addition to this, I recommend that the Kingdom of Saudi Arabia, through the concerned ministry, to set aside some special fund for the five years that these changes will be effected. 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