Organizing The Change In An Organization Business Essay Example

activities, it simultaneously focuses on opportunities in its external environment that it can address through innovations. Google Inc. serves as a perfect example of utilizing this concept and embracing continuous innovation with a flexible organizational culture and structure.

Strategic Leadership - It is the capability to anticipate, envision, maintain flexibility, and empower others to make strategic changes as needed. Effective strategic leaders significantly influence the behavior, thoughts, and emotions of those they work with, whether through words, personal examples, or their ability to envision the future.

In the text below, I haveand unified the text, while keeping the and their contents:

Now, how do these factors lead to organizational alteration will be explained in further subdivisions.

How to Convey Alteration in Organization - Organization Change Management
Organization alteration management is an established methodology to manage the impact of new business processes, changes in organizational structure, design, and culture within an organization. There are two aspects of change management – Organization Change Management focuses more on the people side of the concept. A more effective approach to OCM is beneficial when implementing change requires the organization's people to learn new skills. OCM provides a way to bridge the gaps between employees and the company, instilling confidence in achieving set goals and targets efficiently and systematically.

• Some of the steps for managing organizational change include:
• Establishing a common platform to communicate a shared vision
• Providing proper training to employees on the impact of the change on their daily routine
• Communicating a clear strategy and objectives for the change process
• Defining measurable goals to assess the outcomes of the steps taken
• Incentivizing the change management process to motivate individuals involved

Upper management often views these projects as positive for

both the organization and its overall environment.

The infliction of such constructs of conveying alteration to persons is done on the footing that since it is in everyone's involvement and therefore the persons who will come under the horizon of the alteration will back the undertaking. Though it's a dual border blade as in some instances it might travel incorrect and proved to be critical to convey in crisis state of affairs inside organization in instance of inefficient deployment.

Four phases involved in execution of organisational alteration
Denial - Due to inhibition towards the alteration, the proposed alteration particularly which requires major lifestyle alteration inside the organisation faces resistance and hence phase of denial. Peoples use to deny any sort of such thoughts immediately, the major ground being they do n't desire to come out of their comfort zone.
Resistance - The denial phase is followed by Resistance. This fundamentally happens when the credence of thought has happened, but so people try to come up with tonss of cons which can be portrait in negative ways towards execution of thought.

There should be a convincing program in place with top management to effectively resist opposition to implementing change.

Exploration - Once doubts and uncertainties about the change concept are eliminated, the exploration phase begins. This phase involves exploring different ways to align the idea of change with the current situation to achieve the best possible results.

Renewal - Finally, once exploration is complete, the implementation stage begins. This stage involves replacing older processes with newer ones in a way that has no negative impact and allows people to welcome the change by actively involving themselves. Incentivizing the changes that are supposed to

be implemented can also be done. The diagram above illustrates the relationship between productivity and time during organizational change.

When implementing alteration activities in the current province, there may initially be a temporary decrease in productivity as the system, people, and environment adjust. However, an effective plan can gradually increase productivity to reach the desired state.

Why do people resist change?

• There are several possible reasons for resistance to organizational change:
• People may feel threatened by losing their identity, status, pay, etc.
• Fear of increased expectations from top management and higher competition among peers.
• Fear of leaving behind their comfortable known life for an unknown future.
• Anxiety can lead to a defensive strategy.
• Perception of unfairness arising from proposed changes.
• Resistance aims to scrutinize the proposed change for alternative options and potentially better solutions.

A study found that:

• 15% of the workforce is eager to accept the change.
• 15% of the workforce aggressively tries to avoid it.
• The remaining 70% remain neutral and adopt a wait-and-see approach.

Creating a Challenging Environment: Initially, 3M had various product divisions based on its organizational structure. As the divisions multiplied, innovation started to suffer due to lack of time dedicated to developing new products. To counter this sluggish growth, the organization adopted the "divide and conquer" concept.

The new concerns were spun off and different new squads were directed towards these units, resulting in easier adaptation as the established divisions focused on innovation, developing new products, and finding new markets. This process, known as 'Renewal', led to increased diversification at 3M.

Knowledge Sharing

In addition to creating an innovative environment, 3M also encouraged knowledge sharing among employees. Innovation flourished because management encouraged open communication without any barriers.

Honoring Employees: 3M showed its gratitude

towards employees by creating an inspiring work environment and encouraging the exchange of knowledge. The company also emphasized the significance of acknowledging employees, recognizing that proper recognition was essential for promoting innovation. To achieve this, 3M introduced a dual ladder career path, giving employees the choice to pursue either technical or managerial roles. This ensured that even technical experts could reach high-level positions, such as vice-president, without taking on managerial and administrative responsibilities.

Culture Overhaul: In response to a decline in growth rate during the late 1990s, 3M implemented changes within its organizational culture.

The decrease in 3M's stock value and price-earning ratio (P/E ratio) indicates a failure to adapt to market conditions. In order to tackle this issue, James McNerney was selected as the CEO of 3M, making him the first non-domestic candidate to hold this role. McNerney had a strong passion for developing effective leaders and had previously achieved impressive accomplishments at GE.

He mentioned the implementation of Six Sigma and expressed the view that Six Sigma was not just about improving processes, but also a means to rapidly develop leaders. In 3M's typically egalitarian culture, the emphasis was on developing everyone. Jim shifted the focus more formally and openly towards identifying and developing the most exceptional leaders. This led to the creation of a new set of leadership qualities.

These were simple and clear, consistent with all McNerney's messages to the organization. Almost instantly, the properties were held up as the nucleus demands of all leaders at 3M and reinforced invariably. Individual appraisal against the properties has become an ongoing procedure at 3M. This appraisal is used as a major input into the public presentation assessment

procedure and the properties have been farther integrated into all HR procedures and leading development plans.

Analysis We can see that the alterations that occurred at 3M were chiefly because of the undermentioned grounds:

• Need for invention - In order to be competitory in the market that 3M was in, it had to invariably introduce and come up with new merchandises. Therefore there was a demand to give a considerable sum of clip to new merchandise development. This led to the demand of organisational degree alterations taking topographic point which in bend necessitated the stairss that have been described above.
• Move towards a more organic construction - As described above, the bing construction had resulted in the focal point switching from invention. Therefore there was a move towards a more organic construction where the focal point was on supplying a ambitious environment, keeping proper communicating channels across the organisation and wagess commensurate to one's public presentation. This resulted in a construction which helped further a civilization of invention.

• Change at leading degree - Jim McNerney, an external CEO, brought in radical thoughts that led to organizational change.

His innovative theory on leadership training and development resulted in numerous changes that spread throughout the organization due to changes in policies and procedures.

The concept of strategic leadership explains how effective strategic leaders significantly impact the behavior, thoughts, and emotions of those they work with. This can be observed in the change process at 3M, led by Jim McNerney. He had a clear vision for the training and development of leaders, which he implemented within the organization. These changes mentioned earlier

occurred organization-wide as a result.

Consequence of Change:
The alterations made within 3M led to a sustained emphasis on innovation and product development. By following the four steps in the change process, 3M encountered resistance but effectively implemented methods for managing organizational change. These methods involved avoiding conflicting initiatives, providing adequate employee training, establishing clear goals, communicating the strategy throughout the organization, and incentivizing the change management process. As a result of these efforts, 3M achieved its desired objectives successfully and is now widely acknowledged as one of the most successful and innovative organizations worldwide. It continuously generates new products to meet consumer demands.

Apple Inc. - A Case Study on the Change Process "The primary goal of Apple is to create the finest computers in the world - not to be the largest or richest. They also have a secondary objective, which is to consistently generate profits - both for financial gain and to continue producing exceptional products."

Apple facts:

• 42 million iPods have been sold since their introduction in 2001.
• 32 million were sold in 2005, with 24 million sold in the last quarter.
• In the US, Apple holds an 82% market share for MP3 players and approximately 65% in Australia.
• Sales through iTunes online music store are approaching 1 billion worldwide.
• The share price reached US $80 during 2005, representing a staggering increase of 2700% since its low point at US $12 four years ago.
• The Apple logo is one of the most globally recognized brands.

Apple, a manufacturer of planetary computing machines, underwent significant changes in its organizational culture and structure due

to various events and environmental factors. The company faced rapid growth that overwhelmed their management and resulted in a loss of control over operations and finances. As a result, Apple had to reassess and revamp its organizational culture and structure in order to avoid bankruptcy.

The company's organizational culture is characterized by an emphasis on change, flexibility, and innovation with the primary goals of excelling and succeeding. At a crucial moment in the company's history, Apple went through a transformation in its organizational structure to enhance competitiveness. The restructuring aimed at regaining control over operations and finances while staying competitive in the global market.

The culture of Apple was based on the belief that self-motivated individuals work harder without a micromanaging boss. This structure allowed Apple to grow and adapt more quickly than its competitors. The factors that have shaped Apple's history can be seen in the context of the iPod. These factors include an internal culture of innovation, strong competitive pressures, and strategic partnerships to facilitate product development.

Referee: Ingredients for the success of the Apple iPod: Innovation

Top-Down and Bottom-Up Innovation Attempts

To understand innovation, it is important to examine how it occurs within a company, specifically through top-down and bottom-up approaches. These two types originate from opposite sides and have different management roles.

Bottom-up Invention

The leader must create a supportive environment that encourages local entrepreneurs to pursue their dreams and interact with knowledge holders worldwide. A key driver of bottom-up innovation is an organizational culture that allows information exchange, risk-taking, experimentation and learning from failures. Additionally, the bottom-up innovation leader establishes a process for filtering the best ideas, providing

funding, and coaching the teams that will develop and implement them.

Top-down Invention

In contrast, innovation leaders take the initiative, define the objective, and mobilize their employees for innovative projects. A key driver of top-down innovation is effective process management that starts with a vision and adapts to market realities.

The leading required for these types of projects is arguably more hands-on and direct than for bottom-up invention.

Jean-Philippe Deschamps

Apple faced challenges in managing spending and financial decision-making in regional countries. The "top-down" approach that contributed to Apple's growth also led to significant financial losses. With employees at various levels making decisions, it became difficult for the corporate office to track expenses and purchases. In a technology cycle, there are three stages:

• the era of agitation,
• the era of incremental change,
• the era of turbulence.

The first stage is known as "the era of agitation".

The dominant design persists until the following stage, known as "the epoch of incremental alteration," during which the invention shifts from product-based to process-based. Incumbents benefit from this clear dominant design as they can incorporate the capabilities into reliable organizational routines. However, during the prevailing "epoch of turbulency," both incumbents and new entrants are forced to redefine the dominant design of products and procedures. According to the figure above, many incumbents lose their competitive advantages to new entrants due to three main reasons: organizational inactiveness, structured routines, and a lack of absorptive capacity. Referee: Managing Discontinuous Innovation By Eddy Junarsin.

Apple fosters a culture that promotes entrepreneurship and innovation among its managers.

Directors require a model that promotes risk-taking and incentivizes the development of intellectual capital. They also need a model that allows them to

interact with entrepreneurs within or outside the company while avoiding excessive corporate bureaucracy. The evolving template should utilize the parent organization's intellectual property, distribution networks, and easily accessible capital. Additionally, it should facilitate strategic growth, new product creation, market expansion, and cultural change within the parent organization.

Furthermore, the attack promotes the same cost-oriented, value creating, entrepreneurial mindset and spirit of a small company.

• Referee: The strategic entrepreneurial growth model
• Referee: The 3 Keys to Empowerment: Let go of the Power Within People for Astonishing Results
• By Ken Blanchard, John P Carlos, Alan Randolph
• Apple Inc. adopts S3- participative leadership style and requires D4 Development level with High competency and commitment.

The implementation of personnel policies resulted in numerous benefits for the employees, company, and society as a whole. Specifically, employees have the opportunity to work from their own homes, which allows for dealing with other facilities as well as influencing individual's behavior at work. This flexibility enables people to be more productive. Another advantage of personnel policies is the improvement of communication.

IBM - Transforming the Organization: How Did It Happen?

The nature of a company, which is reflected in its products, services, and position in the market, is constantly changing and evolving. This evolution is evident in IBM's corporate culture, transformative strategies, and innovative offerings for customers.

IBM's history spans over 100 years in the information-management industry. All of the company's products, from its earliest tools to today's advanced computers and global networks, have been designed to record, process, communicate, store and retrieve information. Over the years, IBM has played a major role in advancing information technology and now

leads an industry that is transforming how businesses, organizations, and individuals operate and succeed. The speed and impact of change in this industry are continuously increasing. In the following sections, we will explore the evolution of IBM from its earliest beginnings to its latest innovations.

We will discuss the entire IBM history from the 19th century to the present day, focusing on the key events that have shaped the modern IBM.

1880s - 1937


Early Ambitions

The formation of the Computing-Tabulating-Recording Company (CTR) on June 16, 1911 brought together three companies: the Tabling Machine Company, the International Time Recording Company, and the Computing Scale Company of America. CTR later became IBM. Thomas J.

In 1914, Watson Sr. joined CTR and worked hard to establish IBM as a leader in innovation and technology. He particularly emphasized the importance of "THINK" as a motivational slogan, which quickly became synonymous with IBM. Watson implemented several effective business tactics, including a focus on customer satisfaction, training for sales representatives, and fostering loyalty among employees. As the company expanded internationally, it changed its name to International Business Machines Corporation (IBM) in 1924. IBM offered a wide range of products, from scales to cash registers.

The defining factors that characterized IBM from the very beginning were its futuristic culture and friendly management practices. These, along with a commitment to vision and values, guided the company through the challenging times of the Great Depression. Despite these difficulties, IBM fared well and was able to provide employment opportunities, even adding engineers and other personnel to its workforce. IBM was also among the pioneers in offering life insurance and paid vacations to its employees. Additionally, IBM played a crucial role

in facilitating the implementation of the U.S. Government's Social Security Act of 1935, which was considered "the largest accounting operation of all time." In 1914, the company's revenues reached approximately $9 million.

From 1938 to 1951,


IBM's influence grew

despite the negative impact of World War II. The company expanded its operations and established fabrication facilities in New York and Washington DC. In addition to its commercial growth, IBM also undertook important projects of social significance. It actively recruited women, disabled individuals, and people from minority groups, providing them with ample opportunities for advancement. By 1943, IBM had achieved $100 million in revenues and in 1946, it hired its first sales representative, a significant milestone that occurred 18 years before the Civil Rights Act of 1964.

From 1952 to 1963,


IBM focused on advancements in modern computing.

This period saw a change in leadership as Thomas J. took charge.

Watson Jr. succeeded his father as the leader of IBM, guiding the company's transformation from a manufacturer of tabulating equipment to a prominent player in computer manufacturing. Under his leadership, IBM became the pioneer in implementing full-time employee rotations.

Watson Jr. implemented the "open door policy" inspired by his father, which allowed employees to discuss issues with senior management. In 1962, he codified the unwritten rules of IBM into three categories: respect for others, customer focus, and pursuit of excellence. In his own words, "We aim to provide the world's best customer service...".

The implementation of the "Equal Opportunity Policy" in 1953 by Watson Jr. had a significant impact on the fate of the company. He emphasized

the need for every section of IBM to provide equal opportunities to individuals, regardless of their caste, color, or creed. By 1957, IBM's revenues had exceeded $1 billion, and its workforce had grown to 100,000 employees.

1964-1970


The 360 Revolution

Watson Jr. also transformed IBM's marketing strategy for its technology products. Previously, they sold hardware and software separately.

He "unbundled" these bundles and allowed individual units to be sold. This led to the emergence of the multi-billion dollar packaging and services industry we see today. In addition, driven by the threat of increasing competition, Watson took a risky gamble by replacing all of IBM's current computing machines with the System/360 family of computers. Previously, a plan written for one system would not work on another. However, the System/360 introduced a new concept in computing - compatibility - making it possible for plans to work across different systems. This was a forward-thinking vision that revolutionized the world of computing.

However, three key challenges - proficiency, coding, and constituency - were involved in this endeavor. It took two years and cost $5 billion, earning the nickname "IBM's $5 bn gamble" by Fortune. The results were so impressive that IBM's competitors became known as "The Seven Dwarves" after its success. This achievement marked the beginning of a new era, as explained by Watson Jr. IBM also played a vital role in assisting NASA's mission to land the first man on the Moon in 1969. By 1967, IBM had surpassed 200,000 employees and earned over $5 billion in revenue.

From 1971 to 1992


Personalized Calculating Emerges

Watson Jr.

In 1971, the Chief Executive Officer of IBM stepped down

and was replaced by Frank T. Cary in 1973. Under his leadership, the company further established itself in the IT industry and continued its streak of innovation. IBM introduced a magnetic storage technology called floppy discs, which revolutionized the easy and flexible transfer of data between different systems.

In 1990, IBM partnered with other organizations to improve environmental management practices. In addition, IBM launched a $25 million initiative to support the healthcare of employees' dependents, which was the largest of its kind at the time. IBM also introduced various portable and personal computers, including models such as 5100, 5150, IBM PCJR, and Thinkpad 700C. John Akers took on the role of CEO at IBM in 1985 and his main goal was to increase the company's efficiency by streamlining operations and reallocating resources.

During his term of office, five research workers at IBM received three Nobel Prizes in Physics. By 1977, IBM's workforce exceeded 300,000 employees and its gross revenue surpassed $50 billion.

1993 marked the beginning of the e-Business era, showcasing IBM's advancements.


During this time, IBM faced significant challenges due to the emergence of two revolutions. First, the personal computer became widely adopted in households and businesses. Second, the client/server revolution aimed to connect all personal computers to a central hub. IBM struggled because its business model focused on corporations rather than individuals, and its established presence in the industry did not provide a competitive advantage in this new landscape. As a result, IBM's performance declined, and losses reached a record $8 billion in 1993. Experts believed that a change in leadership was necessary, preferably from outside the company.

Louis Gerstner became CEO of IBM in April,

1993, and as a strategic leader, he made significant changes to strengthen the company. He overhauled IBM's product lineup and downsized the organization. Despite pressure to divide IBM into separate businesses, Gerstner chose to take a different path because he believed that IBM's core advantage was its ability to provide integrated solutions to its customers. As the Internet started gaining popularity in the late 1990s, the focus shifted towards integrated business solutions once again, which played to IBM's strengths. Having successfully battled against the client/server revolution, IBM recognized that web computing would drive future growth and acquired Lotus Development Corp and Tivoli Systems Inc.

In order to achieve international expansion, IBM created eight cross-functional task forces representing Asians, Hispanics, bisexuals, lesbians, gays, and people with disabilities. These task forces were intended to generate interests among all employees and to constantly utilize the best talents. As the decade came to a close, the e-business revolution was observed. IBM confidently transitioned into the new century without being discouraged by competitors, as it had already established itself as a leading IT innovator. IBM has since moved away from commoditizing businesses and now focuses on hard drives in 2020.