Managing Organisational Change And Affect An Organisation Business Essay

Managing Organisational commute And Affect An Organisation fear EssayIntroduction Todays melody sector environment produces miscellany in the study much suddenly and frequently than ever in the lead. Mergers, acquisitions, bleak technology, restructuring and bring downsizing argon only factors that contri hardlye to a growing climate of uncertainty. Jobs, health, even marriages great deal be placed at risk, jeopardizing productivity and realizeability. Speci all(prenominal)y in in conclusion five days umteen another(prenominal) businesses has seen unpredictable channels, which arrive at lead them to umteen possible worst or good outcome, kindred sell-out, closing down the business or cutting down the staff, low productivity etceteratera For some businesses lurchs curb been positive and growth and success has been progress tod. In this parturiency champion(a) we depart look at third makeups namely Santander, lbf. get and simple machine audio wargo n mansion.Objectives Main objective of the problem 1 is to study the turns those contain been interpreted place in above named three companies. Secondary study the clean position of these agreements in the menstruum foodstuff and thirdly outline the positive and contradict outcomes of counterchanges.From Marketing ConsultantTo advance of DirectorsDate-Subject Changes in Last years and end of those Changes1. Santander disposition of Business Current position The Santander collection is the fourth large(p)st bank in the world by profits and eighth by stock securities industry bang-upization. Santander is unmatchable of the worlds openhandedgest retail and commercial bank, based in Spain, with operations in to a greater extent than 40 countries. Founded in 1857, Santander had EUR 1,168 billion in managed funds at the end of 2008. Santander is the largest financial group in Spain and Latin America, with leading positions in the UK and Portugal and broad presence in E urope by and finished and through its Santander Consumer Finance arm. In year 2008 Santander registered EUR 8,876 million in profit attri exclusivelyable profit, an increase of 9% from previous year excluding capital gain. Its peck is to consoli take c ar itself as a large internationalistic financial group, which provides an increasingly naughty return to its shargonholders and meets the financial hires of its clients. In order to achieve this, it combines strong presence in local markets with corporate policies and global capacities. To achieve its vision Santander has at peace(p) through m both changes mainly mergers and acquisition.http//www.santander.com/csgs/Satellite?pagename=SANCorporativo/GSDistribuidora/SC_IndexChanges in five years e actuallywhere the five years Santander has through many another(prenominal) mergers and acquisitions in UK. In UK before 2004 Santander group has genuinely less(prenominal) presence. So in 2004 they acquired deal with Abbey. In Se ptember 2008, Santander acquired Bradford and Bingleys saving and branch ne cardinalrk and in October 2008 they acquired Alliance and Leicester. two acquisitions were part of their growth strategy in UK and their goal to make out the crush commercial bank in the UK. By doing so now Santander has more than 1000 branches all over the country for its nodes and more and effective banking products to take aim return over its clients.http//www.aboutsantander.co.uk/csgs/Satellite?pagename=AboutAbbey/GSDistribuidora/PAAI_homePositive Outcome When an agreement bear with any changes in that respect atomic number 18 quite possibility of positive and negative outcome. There be so many positive out-comes for Santander in UK, which are mentioned below unattackable banking presence in UKMore than 1000 branches and 4500 immediate payment machines25 million node baseBenefits for customer improved products and it has created customer friendly environment in UK banking environmentIt has become third largest trust taker and second largest mortgage lender in the UK.Negative Outcome di unflurriedery now there are not many negative out-come for Santander in UK market solely we loafer buoy say economical condition is still improving and Santander has to go farsighted way in UK market shake up they are facing unrelenting competitor from the banks homogeneous Barclays, Lloyds TSB, HSBC etc. As a group Santander has become very complex in size. chastise worldly concern personality of Business and Current position ticktock land was established in April 1990, with funds provided by the multi-million pound cut-rate sale of an international wholesaling business. whip lands retailing concepts is extremely simple a range of more than 3000 items, each offered for sale at only 1 each representing nasty value for money. They undetermined first throw in in Octagon Centre, Burton-upon-Trent in celestial latitude 1990, followed by spic-and-span computer stora ges in High street, Meadow hall and another(prenominal) quality trading locations. Since then Pound land has 233 stores in UK with 3500 employees. Pound land scarpers in a Retail Sector, where it provides tough rival to its competitors. Pound land provides all the home related products from chocolate, biscuits, major(ip) drinks like coke, Pepsi. They overly provide Stationery, toys and other kitchen and bathroom related equipments. Pound lands capaciousgest sale advantage is their price consistency crossways all products. sequence other retailers mustiness decide upon the price of each individual product and have this distinctly dis beted to their customers, pound land whitethorn simply move stock onto its shelves from their warehouses, so customers know how much a product cost.Change took place and Outcome In destruction five years major change has taken place in pound land, internally and outdoor(a)ly. When VAT was introduced, in November 2008 to 15%, Pound lands price s remained fixed at 1m, it is be attempt they kept the price point of 1 for 18 years and during that time they have cut down on duty and suppliers cost. They said they leave behind pass the saving on customers. new(prenominal) external change was its competitors. There are not much competition for Pound land apart from midget shops and 99p store ltd.http//www.poundland.co.uk/corporate-information/Car-phone WarehouseNature of the Business and current position The Car Phone warehouse mathematical group was founded in 1989 by Charles Dun stone as a UK agile phone retailer, in the following eight years, the business grew organically and opened its first branches elsewhere in Western Europe in 1996, the business supplemented this organic growth with a series of acquisition both in the UK and Western Europe and now has a portfolio of 2453 stores across nine European countries of which 2231 are owned and 222 are franchised. Car phone Warehouse provides large number of liquid pay as y ou go and pay monthly phones, it excessively provides laptop and broadband and other accessories. Over the years it has develop many contracts with mobile phone providers such as perfect(a) busy, T Mobile, 3 Mobile, O2, Vodafone, Orange etc. Car phone Warehouse believes in Wireless world and By March 2010 40 to 50 radiocommunication stores are planned, including mix of new stores. Car phone Warehouse has enjoyed its success in last 10 years because of their sales strategy and customer serve up.Changes and Outcome In last 5 years CPW has gone through many changes one of them is new Mobile France, In April 2006, vestal Mobile France was launched as a joint venture between the Car phone Warehouse gathering and virtuous Group. On 14 December 2009, virginal Mobile France completed the acquisition of Tele 2, consolidating its position as Frances largest MVNO and fourth largest mobile operator in France, with 1.7 million customers. Other changes were because of economic condit ion, where in last three years market growth is slow, customers has become very fastidious about the product and money minded. Still the outcome is positive for the CPW, it is one of the highest mobile sellers in Europe, It has across-the-board range of customers all across Europe, the profit margins has been gone up since 2007. The Brand itself has become very popular.http//www.cpwplc.com/phoenix.zhtml?c=123964p=irol-home purpose In last five years above companies have gone through many vigilance or geological formational changes. Organizations like Santander and Car phone Warehouse has seen many positives and negative outcomes, and small scheme like Pound land has also seen market changes in current economic climate alone overall its beneficial for the all the companies. task 2- bureaucratic OrganizationsIntroduction Crozier (1964, p 187) suggests that A bureaucratic makeup is an organization that fanny not correct its behaviors by learning from its errors. normally Bureauc ratic organizations are those government agencies, where work inevitably be done from department to departments. But today bureaucratic organizations are authentically gravid organizations where they are very complex in size, their hierarchy is rightfully complicated, have unhappy employees etc. In this Task 2, two bureaucratic organizations IKEA and virginal Group pass on be studied over last many years what changes have been taken place and how these big companies have calld those changes?Objectives In task 2, Current positioning and How bureaucratic organizations like IKEA and Virgin Group performs, their strengths and weaknesses, changes which has been taken place, how the changes has been taken place and whether they were beneficial or not will be studied.From Marketing ConsultantTo bill of DirectorsDate-Subject Bureaucratic Organizations IKEA and Virgin Group1) IKEA (Efficiency through which IKEA run) Over the last sixty years IKEA offers total range of furniture to its customers. IKEA is a bureaucratic organization with points and store in more than 25 countries. The IKEA story began in 1943 in the small village of Agunnaryd in Sweden, when founder Ingvar Kamprad was Just 17. Since then, the IKEA group has grown into a major retail experience with 123,000 co- p components in 25 countries generating annual sales of more than 21.5 billion euros. To withstand the big disgrace name it has also got the big work force contrastive states of businesses. It has 13800 people working in purchasing, diffusion and wholesale range art object 15000 and 94200 workers working in Swedwood and retail area respectively. It has also got very frameatic distribution chain. It has 28 distribution centers and 11 customer distribution centers in 16 countries.Impact on environment and reaction to change Over the six decades IKEA has gone though many organizational changes like business expansion in many new markets like USA, China, and Whole Europe etc. It has also actual many different products to sustained market growth and customer satisfaction. It operates in wide range of products comprises from Living room furniture to textiles. It has also got mixed other sections like bedroom, kitchen and childrens IKEA, which actually gives them the edge over their competitors. It has also started to operate in franchise remains.Firstly to understand the working efficiency of big organizations it is must to understand the mission avowal of that organization. A mission educational activity may be a phrase, sentence, or document which attempts to sum up a companys corporate goals (long-term), in a way in which it may create a common purpose for all the stakeholders for the business. To date, IKEAs vision relation is to create a better anyday life for the many people. Whilst its business idea, as stated by the IKEA group website is to offer a wide range of well-designed, functional, home furnishing products at prices so low that as many people as possible can afford them. For the employees and managers of IKEA, the mission statement aims to motivate and inspire the staff as one, in order to achieve other financial goals and aims.Strength and WeaknessesIKEAs strength is given belowA strong global suckerA straighten visionStrong concept pop design (the equal balance of function, quality, design and price)IKEAs weaknesses are given belowThe size and scale of its businessThe demand for inexpensive productsThe need to keep the public and IKEA stakeholders well informed about its environmental activities.Cultural changeThe first weakness for a bureaucratic organization is the size and scale of its business. IKEA is a large organization, so it is difficult to maintain and keep track of its global activities and it will make difficult to manage its operations. As IKEA is oblation low cost, good quality furniture to its customers it is really difficult to maintain low cost against quality.http//www.ikea.com/ms/en_US/about_ik ea/facts_and_figures/about_ikea_group/index.html2) Virgin Group (Efficiency through which it operates) Virgin is a leading branded venture capital organization and is one of the worlds nigh recognized and respected brands. Conceived in 1970 by Sir Richard Branson, the Virgin Group has gone on to grow very booming businesses in sectors ranging from mobile telephone to emigration, travel, financial dos, media, music and fitness. As a group Virgin has created more than 300 branded companies worldwide, employing approximately 50,000 people, in 30 countries. It has its revenues in 2009 exceeded 11.5 billion. Virgin believes in making a difference. Virgin stands for value for money, quality, innovation, fun and a sense of competitive challenge.Impact on their environment Virgin has always considered themselves to be a responsible business, and whilst fetching environmental and social pressures of world. Virgins mission statement which can be seen in their growth is Looked for new, in novative ways to do business by offering consumers another way, a better way, and by cosmos willing to armed combat their corner. In starting years whenever Virgin has started its new business, it had gone through really tough time but effective strategic counselling it has grown from one Office Company to group. One of the single most influence behind the company success is its founder Sir Richard Branson, his strategic decisions, long vision, forward thinking and risk taking ability had enable virgin to achieve the height of success they are enjoying now.How they react to changes Virgin has very straight forward working pattern, their hierarchy is really simple, and they operate their businesses more or less their customer needs. When Virgin opened Virgin Atlantic they had very stiff competition from British Airways and other American airline companies. It had also seen very stiff competition in music industry. The strategy virgin has espouse over the year is known as strat egy of unrelated diversification entering in to the new market. In Virgin Control was distributed in to the different divisions to gain effective organization.Virgin Strength and Weaknessesa. hurt Price is the main factor in Virgins success as a group, Virgin has always try to provide quality and good customer service at lower price or if they charge high for any product they keep their promises for their productsb. Brand As mentioned above Sir Richard Brandson is the big brand by himself and he had put lots of efforts to develop Virgin brand from jumping from the roof of American building to balloon flight across the Atlantic.c. Customer Service As Virgin is operate in many industry and different products, customer service is the main strength of Virgin, as they tends to give all products under one roof service options to its customer.d. Democratic Design As mentioned earlier Virgin has very simple operating structure, so it helps in quick decision making. And its avoid miscomm unication.Weaknesses Every big organization has one big weakness it is their size so it is very difficult to maintain the balance between different departments. Secondly so many products, which virgin offers are bound to create misunderstanding among its customers. third the cultural change is the another weakness in the case of Virgin as its operates businesses in so many countries and it has 50000 employees over many countries, Virgin has to manage right culture mix approach, if they fail to do so, it will lead them to big problem in futurity.http//www.virgin.com/about-us/Conclusion Bureaucratic organizations are really complicated and there were many changes in IKEA and Virgin Group, but they have good hierarchy and anxiety in place to handle those changes. They have enjoyed good current positioning in the market. Specially, because of current economic meltdown Virgin Airlines did go through tough time but as it got support from other virgin group companies, Virgin Airlines ge t in in the market. So these are the strengths and weaknesses of IKEA and Virgin Group companies.Task 3Introduction It is not the strongest of the species that survives, or the most intelligent that survives, it is the most all-mains(prenominal) to change Charles Darwn (1809-1882). Major organizational change should be avoided at all cost it sucks up time, energy and emotion, distracts your main purpose, disrupts operations, annoys your people, undermines morale and rarely delivers the promised benefits. And if organization can adopt the change very quickly and efficiently they can surely taste the growth in near future. In Task 3, relation between two organizations one from task 1 and one from task two will be given.Objectives Objectives of task three reason of Fordism conceptLearn New and Better Methods of Managements parity between two organizations.From Marketing ConsultantTo Board of DirectorsDate-Subject Fordism concept and new focusing techniques with similitudeFordism Co ncept and Importance Frodism, named after Henry Ford, refers to non-homogeneous social theories about production and related socio-economic phenomena. Berman (1982, p21) suggest that The essential meaning is that the worker must be paid higher wages in order to afford the products that the industrialist himself produces, cavictimization an economy that runs full circle. Fordism was specifically juvenile modes of organizing labour which immediately suggest that this is all it was. Fordism concept, that is valuable for any organization because of its meaningful characteristics. Higher productivity is the main philosophy of manufacturing by doing standardizing the output, using conveyor assembly lines and breaking work into small de-skilled tasks. Taylorism seeks machine and worker efficiency, part fordism seeks to combine them as one unit. straightway there is comparison between two organizations each one from task 1 and task 2.Organizational Development According to Cummings and Worley Organizational tuition are both a professional field of social action and an area of scientific inquiry. The OD Covers wide spectrum of activities with seemingly endless variations upon them. Organization development refers to a long range effort to improve an organizations problem answer capabilities and its ability to cope with changes in its external environment with the help of external or internal behavioral scientist touch onants, of change agents, as they are sometimes called. Globalization, cultural change, system change and employee good turn an authorized role in organizational development. Apart from internal stakeholders and systems, external stakeholders like customers, shareholders and suppliers also play an classic role in OD. Below we will discuss the comparison between two organizations and its development.Comparison between IKEA and Santander As we have seen in the case of IKEA, it is a big organization with many offices and stores across the world. T hey need to go through changes very frequently compare to Santander which is banking sector company. During the change process people, structure, size, leadership, strategies etc. are most important factors which need to be taken care of by organization. While doing change organizations must consult their employee and let them know in advance the future changes those are sack to be happening in the organization. So they are ready to accept the changes. While any organizations main assets are its products and people. Stakeholders also play an important role in attention change or organizational change. Now a days people have become more net savvy and they do most of the shopping on line or even they can book their holidays online. So internet has become scurrying way of medium to serve the clients in fastest way. While every organization is couching millions of dollars or pounds in creating e shop for their customers they are also investing lots of money to train their employee and to help them to improve their skills and techniques to use improved system. There are so many factors which play important part in organizational development and change direction, goal-directed leadership, alignment of purpose and value and porters five forces.Operations are in the bank are very wide, from customer services to back office operations and to do the work efficiently, most of the banks used electronic equipment and system to cope with the future demands. For an example as we have seen Santander is a one of the big bank in Europe and to manage their operations they are spending lots of money in banking system and website development. When a customer penurys to open bank account they physically need not to go in to the bank, they can just click few buttons on their computer and they will be able to open bank account, they can switch funds between their accounts, even they can pay their bills online as well. So this way Santander is enjoying luxury of reaching the people in right off through its website. While other banking system they use for their employees is internal system where they can store each and every data of every customer transaction. To use the system they need to train their employee how to use the system etc. Multinational companies needs to also look after cultural changes in their respective offices. As a bank it has merged with many other financial institutions in other countries. So merger is also one the better organizational management methods.While as a bureaucratic organization IKEA is more sensitive towards the changes, they need to face many changes all the time cause every time they need to develop new products, develop new markets etc. Cultural change is the major issue in the bureaucratic organization compare to domestic organization or small organization. Because they are producing furniture and when they do so they need look after its customers needs and believes while making so. Organizational changes are also depends on competition of the particular industry. As in the furniture industry, there tends to be major changes every year and competition is likely to be very high and to survive in the industry employee management, efficient leadership, System changes, Cultural changes etc. are really important.Conclusion At the end of the day all organization runs its business to give excellent customer service to its customer and end motto is to earn profit and stabilization in current economic climate. As we have seen in above comparison, customer service is the main factor all organizations work for and they are ready to go through all the changes to achieve its goal. System change, culture change, people change are the main changes which are occur very often.Task 4Introduction In task 4 we will see diverse change dumbfounds available for organization and comparison between stuffy sales and internet sales. There are total six change management models available for its businesses. And busi nesses can use it to adopt the changes.Objectives In task 4 main objectives will be Study various change models, Comparison between conventional sales and internet sales, presentation.From Marketing ConsultantTo Board of DirectorsDate-Subject Change management ModelsChange management Models set 1 4-D, Desire, Dream, Discovery, Deliver model 2 Lewiss theory of change, now a day there is hardly any organization which has not alter with change yet, as he argued that there are 3 different stages of change which can change the whole structure of any organization. dethawChangeRefreezeMODEL 3 John Katters Change Model,establish a senseCreateDevelop a of urgency coalition clear visionEmpowerShare the people to vision clear obstacles found theConsolidate and 8. Secure short- change keep moving term winsMODEL 5 Better future for all Analyze Understand needs, processes structures and picture resistance Cyclical Process Framework (CFAN) Change at aggroup Change at Individual Levels System Level Nurture yield a framework that sustains Monitor the change Communicate Make the change Goals visible to all Exploring and creating meaning Coach and Mentor Help individuals to ascertain change Review Design new structures, processes Facilities etc.MODEL 6 Mckinleys 7-S Model that includesShared value, Strategy, Structure, Systems,Style, Staff, SkillsInternet sale and unoriginal Sale In current market conventional sale has been taken over by internet sale. Most of the organizations have started their online sale activities through their websites. Internet has offered an exceptional(a) platform for marketers to promote their products and services. The multiple benefits have made internet sale more productive tool as compare to conventional sale and sales methods. Because of the change in sale environment lots of organizations have gone through many changes, changes like system, employee behavior, hierarchy etc. galore(postnominal) well established organizations are spendi ng millions of pounds for their internet activities. Compare to traditional sale and sales techniques, online or internet sale has many benefits. It has turn up to be an effective platform from which almost every company is benefiting and it is back up them to strengthen their relationship with their globally dispersed consumers.Benefits and ChallengesInternet sale has so many advantages it is quick, easy, and cheaper and its even beneficial for smaller organizations. Though there are many benefits still there are some challenges with internet sale, Challenges likeVery fast advancement means people have to really spend a lot of time researching and keeping up to date with the latest trends and methods.Sometimes the data can be misleading.While Conventional Sale costly technique compare to internet sale, Conventional market is not quick. There are many stages through which sales have been made. Its a customer facing role where employees are elected to do sales activities. Plus tra nsportation is the main disadvantage in conventional sales. Because in conventional sale goods need to be transported from ware house to different stores while in online sales goods can be directly reached to its customers.Pound-land and IKEA IKEA has gone through many changes in recent time, mainly in their sales activities. They have many different stores across the world, still they do online sales. They provide all the product information online which allows their customers to check the product online and if customers want to buy it they can buy it online as well. It allows IKEA to save the time, cost and transportation expenses. While Pound-land still doing conventional sales, their products are very cheap and wide range of products still they havent started any major online activities. They have developed their websites but they are not in to online marketing and sales process. When implementing changes now a days internet plays an important role, it also creates job opportuni ties.ConclusionIn a conclusion it is clear that in every organization there is need of a change and it is very beneficial for any organization to have a change in the company or organization as it is above mentioned that there are more models of change , but again its depends on the situation that how we can get this change being in mind the current position of the company, as there are lots of change overtaking in IKEA and best change model for them is the Mckinleys 7-s Model cause it covers most of the stock holders and customer values. For Pound land as it has not started its online activities, 4 D model is suitable for them as they have to dream and desire about reaching more customers through various ways.Task 5Change Management Change management entails thoughtful planning and sensitive implementation, and above all consultation with, and amour of, the people affected by the changes. The only person who likes Change is a wet baby A wet baby is aware of the imperfections of i ts current situation and will cry and scream until a Change is brought about. This comparison is a simple one, but it does contain a core of truth. If your commit audience is dissatisfied with their Status Quo, they will be willing to Change to something-else.Resistance isnt an indication that something is wrong with what you are trying to change. It is an indication that something is happening. It is a good sign. Another aspect is culture. Culture changes will e a bigger project than the original change. There are three options change the change, change the culture or prepare to fail.What is their Vision of the Future?Where would they like to be in 1 year, 5 years? Can they qualify what they would like their future Status Quo to look like? The better they can define it, the more detail they can describe, the more tangible it becomes.What can they do to achieve it?How can they become positd in their vision? What can they do to move towards it? Surprisingly enough, they have answ ers to these questions. And those answers can become a plan of action if we let them.What commitment will they invest?Change is never easy What will they contribute to get to the future theyve described? If the answer to the question Whats in it for me? is satisfactory to them theyll be willing to contribute more than we expect.What do they need from you?Staff needs management support. This is what is meant by the phrase Top down Support and it is crucial to prosperous Change. IF top management does NOT believe in the Change, then it becomes very difficult to achieve not impossible, just needlessly difficult. Before going to the troops with a Change, make sure the political battles in the stop number ranks have been resolved.When will their Transition Plan be ready? conform a date for the completion of the Change. Nothing happens without a deadline. Deadlines, especially deadlines offered voluntarily, with eyeball open, become a commitment.What will NOT Change?Very important Peop le need to know what parts of the old Status Quo will remain. Even if it is only small things which will remain constant, dont underestimate their value.At pound land system implementation is easy compare to bureaucratic organization like IKEA. Cause in bureaucratic organization, employees have less trust in the organization. Trust plays an important role in change management. Secondly strong top management involvement required while doing changes or going through changes. Motivation factor plays an important role in processes every one needs to be motivated while implementing changes.Task 6 When going through different processes of change management it is must to involve all stakeholders because they are the back bone of organization. When implementing new system in to any organization it is really important to involve all stakeholders of the organizations. Stake holders include various people an