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Question and answers of Industry Evolution and Strategic Change

Category: Strategic Management Paper Type: Case Study Writing Reference: APA Words: 1320

The phenomenon in which a company reforms its shape, techniques, operational strategies, technology, or organizational lifestyle to have an effect on trade within the business enterprise and the consequences of those adjustments at the organization is known as Organizational Change. It is non-stop or occurs for some periods of time.

With the proper organizational change strategies, the companies will able to evade immobility, and at the same time, also diminishing interruption as much as they can. Preparation is essential in the business, especially when the company is doing the efforts to adjust to the change. However, there is no company could make any preparation without understanding what kind of change is happening (Al-Haddad & Kotnour, 2015).

Questions

1.      Track an organizational change process that you have experienced or have researched. What tools were used to manage the change? What else could have been done generate a willingness to change?

An example of the organizational change process is personnel change. Personnel change occurs when a company applies for mass employing or redundancies. Every single process of the personnel change in a company is able to cause a substantial modification in the better or worse morale of employees and assignation.

Mass employing or mass hiring might have better consequences meant for a company. Still, it is not deprived of struggle and difficulty. Mass hiring defines as an indicator of the main expansion that occurs at the time when a company is vulnerable to cultural changes and inefficiency. With hiring new personnel, the company will need to train and also provide continuing provision for them. Even though it is good to welcome the arrival of new personnel, but there will be work changed in management as well. If the company is unable to handle and manage this change properly, then it is potential to be chaos, and worst, it could eventually discourage other development within the company.

In the other hand, the risk of redundancies could cause fear and worry for all the personnel in the company. Even though specific situations require for a proper decision, the executives or leaders of the company must anticipate the conflict within the morale of the employees will be appeared. Nevertheless, the company needs to keep on moving and adjusting with the change. Thus, the company has to figure out the ways to motivate the employees to keep giving the best performance throughout the difficult situations (Swierz, et al., 2017)

The tool that was used to manage the personnel change in the company is the ADKAR model. ADKAR model basically is a framework of 5 stages that support the company to make sure that the entire employees are involved in the change process and believe that the change meant for the success of the company itself. The word ADKAR stands for Awareness, Desire, Knowledge, Ability, and Reinforcement (Hornstein, 2015).

·         Awareness

All of the employees should be aware of the need for change in the company.

·         Desire

The company needs to make sure that all the employees have the same desire to participate and support the change in the company.

·         Knowledge

The company also needs to support the employees with knowledge on how to participate and support the change. This could be done by conducting some training.

·         Ability

The company has to support the employees in improving their ability. This was usually done by evaluations and feedback.

·         Reinforcement

The company needs to be sure of reinforcing the change.


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    The organizational change could offer a perfect opportunity to influence the perceptions of employees positively. Therefore, to generate a willingness to change from the employees, the company could establish some short-term goals. These goals will motivate the employees as they will realize that they are making progress toward the change to achieve the goals. With establishing short-term goals, the company also will able to analyze the progress and recognize the misalignment formerly in the process.

Choose an industry facing fundamental technology change (e.g. the recorded music industry vs. digital technology, computer software vs. open-source, newspaper vs. the Internet, corporate IT services vs. cloud computing...). In relation to one leading player in the industry, discuss the problems posed by the new technology.

Technology has transformed the method of how companies perform their business by allowing small business to compete with bigger companies. An example from this is how the companies that are running their business in newspapers have to face the change of technology. We all acknowledge that nowadays, the Internet could give wide-range of any type of news that the people need which might better than newspapers. If the companies want to survive in the business, then they need to adjust to this change as well.

In the other hand, there are certain problems that these companies have to deal with regarding the change of technology as mentioned below (Ekdale, Singer, Tully, & Harmsen, 2015).

·         Impact on the employment

Along with the change of technology, the companies need to implement the change within the staff as well. In 2001 to 2009, some companies that running their business in the newspaper have been reported to reduce their complete newsroom staff for 25%. The reason behind this is that the companies need to hire more competent staff with proper knowledge on the Internet, websites, online advertising, and so on. Thus, the companies needed to reduce some of their old personnel, which they found do not have competencies in this field.

·         Impact on the revenue

The companies that are running their business in the newspaper field must already have their loyal customers who were always buying their newspapers. However, since the companies need to adjust to the change of technology, they will switch their service by providing news on the Internet. Some of the customers might be unaware of this transformation, and thus, they might not use the new online service of the companies on the Internet. For this reason, the revenue of these companies will get impacted; fewer customers means less revenue.

·         Impact on the investors

Along with the impact on the revenue of the companies, obviously, it will impact on the shareholders as well. It is a real fact that the investors will always analyze the revenues of the companies to determine the profit that they will get from their investments. Hence, if the companies are getting a problem with their profits, then definitely they could only provide a little share of the profit for the investors. As a result of this situation, the investors might take back their investments and no longer giving fresh subsidies to support the business operations of the companies.

The conclusion from this, the companies need to do proper preparation to anticipate the organizational changes that could happen anytime. Some of the organizational changes even could be unpredictable such as the change of technology that explained above. Thus, in order to survive in the business, the companies really have to understand properly the changes and decide the strategic management in adjusting the change within the companies as well.  

References of Industry Evolution and Strategic Change

Al-Haddad, S., & Kotnour, T. (2015). Integrating the organizational change literature: a model for successful change. Journal of Organizational

Change Management, 234-262.

Ekdale, B., Singer, J. B., Tully, M., & Harmsen, S. (2015). Making a change: Diffusion of technological, relational, and cultural innovation in the

newsroom. Journalism & Mass Communication Quarterly, 938-958.

Hornstein, H. A. (2015). The integration of project management and organizational change management is now a necessity. International Journal

of Project Management, 291-298.

Swierz, N. F., Baron, J., Vroom, B., Powell, M., Loughridge, R., Perreault, S., . . . Swierz III, N. F. (2017). Method and system for implementing

workflows and managing staff and engagements.

 

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