Management and Organizational Behavior
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For any company to be termed ‘competent’, there are various factors to take into account and numerous renovations that the company has to undergo. Becoming proficient is not a simple deal. One cannot just wake up one morning, go to work, and in the evening proclaim one’s company as competent. Competency of a company requires team members to be devoted. They also have to understand the goals that the company at large wishes to achieve by the end of the year or at any given time. They also need to contribute their best to the company to ensure that the latter earns high profit rates compared to the losses it suffers. This will ensure development in the company all round the year (Rao, 2010). There are situations when a company fails to achieve its goals due to poor working systems and having unskilled personnel employed in the company. These two problems are the main factors that can always bring the company down at most times. The only way to solve both problems is to initiate change, which will be aimed at either changing the system or retrenching existing personnel from work and employing new qualified experts.
Change can also be necessary whenever a large group of people complains about a specific issue. In case stakeholders of a company complain about an issue, the company management team is expected to address this issue as fast as possible. This will help to prevent strikes from taking place. Moreover, if the complaint was from employees and if it was from other stakeholders, their views should also be considered so to avoid damaging company’s image in the society (Organizational Management, 2002). According to many managers, change brings confusion. The reason is that once an employee is demoted from his/her office and assigned to work in another office, the work load there might be higher than the employee used to. This is because it takes time before an employee can understand the key principles of new office and how to run it smoothly. Change can occur in three ways: as a promotion, demotion, or even complete deferment from the system. Nevertheless, change should not be alarming to us. We need to always be positive about it. This attitude will ensure that our lives continue running smoothly, without stress and upsets due to new development brought about by change.
Change should be permanent. It should not be a process of doing something new today and going back to the beginning tomorrow. For this reason, we always have to value changes taking place in our lives and make sure that we learn from our past experiences. Once we decide to move from the old system, we should not go back and try to repeat past experiences. Thus it is important to be disciplined whenever charge is taking place. This will help to ensure that when a whole group has moved to the next level, its members are not pretending to be stubborn or sticking to the old way of doing things. Whenever a company undergoes change, its employees should ensure that they try their best to move from their old cocoon and style up (Ritson, 2003).
This paper helps to understand and analyze change management of Zuka Preemie Company. Being the assistant of CEO in this company, it has been noted with concern, that one production managerial department has been discriminating some workers due to their race or social class. Other managers mistreat their subordinates by either making them work extra hours in poor working conditions, thus causing some of these workers to suffer from various health complications. Complaints have been received from workers, who were demanded to work extra hours without being paid. They also reported that when their boss asked them to work and they tried to give excuses as to why they could not manage to work extra hours , they were automatically forced to leave the company. After a thorough conversation with some workers, I understood that these workers were forced to work despite the fact that some of them were in poor health, which caused some of them to end up in hospitals in difficult conditions. The manager also was involved in corruption since the resources his department received to purchase necessary gears needed by workers to work in factories were not accounted for fully. This factor was the main cause as to why workers were forced to work in poor conditions and later being reported dead or seriously sick. Workers also did not receive all their wages, and if one tried to inquire about the issue, the manager would definitely cross his name out from the list of empoyees of Zuka Company (Murray, 2006). The company noted that production rates started to decline, and every time the production manager was consulted, he never missed a chance to defend his department. Business clients and consumers had also formed a negative view about the commodities produced by the company. I decided to present the information I had acquired from employees and the CEO, who in his turn called upon an immediate investigation aimed at finding out what exactly was affecting the production department.
Research proved that the manager manipulated all his employees to work according to his regulations. The company also noted that since the department did not use computerized system, corruption was growing fast in this particular department. The department was also noted to be firing workers, yet the manager did not care to look for employees to replace the old members (Robbins, 2009). He also continued to demand resources from the finance office to pay the salary to those he had dismissed. A large amount of money was also found to lack good accountancy.
Due to these factors, the company had been experiencing higher losses than it could be expected. As a result, the company decided to change the old system of management it was relying on since the early years from the moment it was founded. The main reason behind the big urge to implement change was to cut down extra costs incurred by the company. The choice was either to try to renovate the system or pave the way or corruption due to lack of good management. Unethical behavior has really made the company to suffer great losses thus reaching a point where it was unable to pay employees their total wages. The company has also been affected by the problem with purchasing raw materials for the production of Zuka commodities.
The issue was first presented to all stakeholders, who included the owner of the company, company employees, managers, capital suppliers, investors and clients (who among them included the society at large). From the clients’ side, poor quality of the commodities that the company was producing recently seemed to be the main issue. They also complained about poor working conditions that the company provided. They agreed to cooperate with the company if the old system was terminated. They also demanded to change managers who have overstayed in their offices. This will help to avoid dominance in some offices, which resulted in having corrupt officials. Employees highly recommended the new system and wished that this system would take into consideration their working conditions.
Investors wished to have shared services running in the whole company since this would help reduce extra cost incurred by the old system. The managerial department explained that the system would require qualified technicians. Therefore, they feared that this new system would force the managerial department to be computer oriented. They also noted that some of the employees would either be forced to leave the job or pay extra cost for acquiring relevant computer knowledge from a qualified and recognized institution. This would be a good way of having employees run the system without facing problems.
The change consultant that the company had chosen advised that some offices would have to be downsized since the new system would incorporate them with other systems running in their related offices. Accounts office would be merged with finance department, while human resource department would also be incorporated in the management department. This will result in some of the employees loosing their work. For this reason, some of the managers rejected this system considering that it would negatively affect them. Nevertheless, the company decided to go on with its plans since the biggest number of stakeholders supported the renovation. This system was aimed at reducing extra costs which were caused by having many offices with a high number of employees. Yet, some of these offices were inefficient.
The issues of forcing some employees to leave the company, sending those who are not computer proficient back to college as well as high cost of incorporating the system in the company seem to be the main problems facing the shared services system. I would recommend that all employees who proved to be competent enough to be considered for taking the top seats in the company’s management team. The team also requested to consider leading professionals from the offices that will be closed for a seat in departments where their qualification will fit. The two recommendations would ensure that the company employs dedicated managerial team members. This team will be responsible for raising the morale of all workers to encourage hard work in order to increase production rates in the company which are low at the moment.
I would encourage customer service department to work closely with the research department so as to find out how stakeholders feel about the new system and what competitors think about the company. This will help to decide what else we need to change to meet our goals and be competitive as our rivals. These departments will also be responsible for listening to employees’ voice and ensuring that their complaints, in case there are any, are reported to respective departments.
The new program will significantly contribute to raising the production rate that had gone down. This will lead to some of the workers in the company being fired without being paid all the amount of money they had earned in the company. Changing the old systems of the company seems to be the only solution to the problem of high rate of corruption in the company. The CEO of the company together with his assistant managers decided to replace the old system with a computerized system, which will store every single document related to operations of the company. This seemed to be the most effective solution since all documents presented will have to be accounted for by the end of the week in accordance with new principles. Employees were very impressed by the decision that their managers had taken. They viewed it as a way of improving the governance system, which would help to improve financial condition of the company by reducing high poverty level.
Managers also decided to first close the company for a short period of time so as to try and research how all these activities happened without some of managerial officers knowing about them. The two settled for this option after seeing that even after all those years of trying to warn all employees involved in corruption, the main idea and aim of all those actions had not clicked a warning to the rest of employees. The owner of the company was really dissatisfied and viewed these as the best options. This time he wanted to see a change in his company’s management. The owner of the company made all employees understand that the company had been announced bankrupt and that he could not continue supporting it fully without having any returns from it. He ensured that employees got all their wages. He also effectively communicated to them that when the company rises again, it will emerge as a new company, thus new systems will be implemented. He also promised that if an employee is reported to be involved in the act of corruption, he will be fired immediately. The change process will be aimed at advising company’s leaders on the importance of maintaining a close supervision of the work of their workmates, the project owner, and all company employees.
The company was in a terrible condition. The management seems to have failed to perform it expected responsibilities. This has made managerial department of the company to be announced bankrupt due to lack of finances. This is a sad outcome that could have been prevented a long time ago if only stakeholders were keen on how the company was performing in the last few years or months (Mullins, 1996).
In conclusion, stakeholders of a failing organization, such as the one described above, should analyze the whole situation to ensure that they recognize the main problem that affected their company. This will not be the right time to start long arguments and passing blames on to one another. On the contrary, this will be the best time to learn from their previous mistakes and admit they handled things in unprofessional manner. The team should accept the changes positively and understand that all transformations that will take place will be for the good of their company. Changing moral values should be the main task for all the team members (Marsden, 2002). A morally upright human being recognizes that stealing is wrong and will do anything to stop all those involved in the activity. The company’s managerial department should be replaced so as to avoid situations where managers who know all tactics want to steal from the company or perform other activities that are against company’s principles.