AUTOMAKERSCHANGERevolutionary change (type of change)Planned: New culture and management adaptation (transform entire organization)Emerge as a response to significant technological and environmental changes.Change a new business structure and change of cultureChange PlanPROCESSEXAMPLES

1) What is causing changeExternal Loss of market share, decline in profits and sales (import cars) Shift in market taste and preference (environment conscious) Internal Poor management style Low motivation and job satisfaction level (poor culture)

Automakers has been steadily losing market share to its rivals with decline in profits and sales in the recent years. The reviving of the company depends solely on the successful introduction of two new environmentally friendly cars in the next three years. The improvement of both productivity and quality level in the production are critical in order to revive back the company.

2) Who should be responsible for the changeThe managers as the problems comes from themAuthority is needed to enforce changes and this can only come from the managers themselves

3) What needs to be changeThe attitude of the authority: make workers scared, not solving problemsThe coordination between worker: competition among them cause quality issuesThe culture: people are not honest, scared to tell the truth, do not want to resolve problems

4) What type of intervention is neededOne ofUnfreeze: Stop the current way of management and cultureChange: Change the current way of management and cultureRefreeze: stick to the current way of management and culture

5) How will you implement the changeIntroduce a participative management program Designed a multi-level committee structure Level 1, level 2, level 3 each level had a more specific mandate Level 1 managers delegate authority down the line Level 2 managers expected to carry out a socio technical analysis of the production process to determine where problems arose and find way of fixing them Level 3 committee were expected to resolve multi functional problems where possible or pass to level 2 managers

6) How will you monitor result review change and feedbackMonitor result in term of how quality of products and operations coordination were effected from the changes being implementedReview the quality and working environment to what is expected to occur. Do things happen the way we want it to?Feedback from the employee and managers should be dealt with to ensure everyone is comfortable with the change and willing to implement it properly

6 Silent Killers1. Management style is either too top down or too laissez faire management is very autocratic employees are not allowed to speak out, give opinions or question anything employees were scared to admit faults, fix things as they will be blamed for itHOW IT IS ADDRESSED Participative management program employees were given more attention and their voices are heard more. Teach employee to be independent not scolding them2. Unclear strategy/conflicting priorities Priority quality or cutting down costs? Or own-shift performance? In order to cut down costs low quality of products; cheating, lying and stealing Compete between shifts sabotage others within the company itself (lower quality)HOW IT IS ADDRESSED Employees were let known of the ultimate objectives better working environment and high quality product No need to compete between shifts (coordinate workers appropriately)3. Ineffective senior management team macho-aggressive style of management too desperate to cut down costs while keeping their job - cheating, lying and stealingHOW IT IS ADDRESSED Managers were given more understanding of the new management style get them involved in the change Senior managers give good example in the change effort (enhance relationship)

4. Poor vertical communication intensive verbal abuse (yelling and screaming), dramatic confrontations and figuratively beating up on offenders hitting somebody over the head with a 2x4 block of wood employees not allowed to ask questions or give feedbackHOW IT IS ADDRESSED Managers become more typical managers less shouting, more democratic leadership style used5. Poor horizontal communication afraid of being laid off - cheat and steal, never assume responsibility accuse someone else for their own mistake different shift compete intensively with each other (want others to look bad)HOW IT IS ADDRESSED new roles, responsibilities and structure to get people work together6. Inadequate skills at lower levels Level 2 managers does not know how to handle data given to them Felt being left out by upper managers Culture doesnt train employee to be a good skilled workerHOW IT IS ADDRESSED Level 1 managers educate level 2 managers to be able to locate and solve problems themselves

CULTUREOrganisational culture A system of shared meaning within an organisation The way we do things around here The customary and traditional way of thinking and doing things which is shared to a greater or lesser degree by all members and which new members must learn in order to be accepted into the services of the firm (Jacques, 1952: 251)Identify cultureWAYS TO IDENTIFYEXAMPLES

Observable symbolsCompany logo

Physical layout

Communication patterns- Yelling and screaming- 2x4 managementMostly one way

StoriesThe myth about aggressive management behaviour of hitting and screaming to employees; Believed that to be promoted one had to be 2x4 managers

Practices and behavioursYelling and screaming macho managementIntensive competition between shift to the extent to lock up their tools so that other shift could not retrieve itRush in working pursue quantity rather quality

Values, assumptions, feelings and beliefs- Employees were scared of being exposed and humiliated- No trust throughout the plant- Cheating, lying and stealing are seen as necessary in order to cut down costsMore concern in covering self than quality or quantity

Integrationist theory Strong, uniform cultures Two aspects (external adaptation and internal integration): (a) a positive culture refers to the attractive content of manifestations such as norms or values(b) a cohesive culture refers to uniformity, that is, a high degree of organization-wide consensus among cultural membersEXAMPLES: external adaptation how organization operate, means to accomplish goal, repair strategies The macho aggressive management style Competition between shifts Lying, cheating and stealing in order to accomplish goals If anything happen let other people repair it Internal integration common language, friendship and relationship Using harsh foul language Competition between shift

Differentiationist theory Organisation is a cluster of sub-cultures related to particular challenge, task, responsibility of a unit or groupEXAMPLES Consultants versus the managers After the change plan is implemented we can see there is 2 culture in level 3 participants Some were participatory and others not. This inconsistency makes workers confuse Level 1 sees the plan as delegation, level 2 sees it is being abandoned

Critical theory Look culture from employee perspective Looks at how employees are affected Focuses on the way in which power is embedded in culture Especially interested in how strong culture is a way to control employeesEXAMPLES Employees are deemed to believe that it is actually necessary to cheat, steal and lie Employees do not dare to speak out or assume responsibility Sabotaging of the other shift is normal Employee think 2x4 management was just a mere show to pressure workers 2x4 and competition were regarded by employees as dysfunctional Workers need to always be ready for set of excuses to cover self problems never solved About the change plan Employees sees it as a new tool to achieve old ends New tool to push number of spy on people Still need to lie and cheat if cannot get work done in new format or suffer consequences

STRATEGY AND STRUCTUREStrategy The determination of the long term goal and objectives of an enterprise, and the adoption of courses of actions and allocations of resources necessary to carry them out.Porter Five Forces Competitive rivalry: high rivalry (from domestic and imports) Threat of new entrants: high entry barriers Threat of substitutes: many potential substitutes (many cars especially imports) Suppliers bargaining power: not known Buyers bargaining power: strong buyers (buyer have wide choice)Product Differentiation strategy (Porters Competitive Strategy) Positions the product/service as different to (better than) others Charge a premium price and have good marginsEXAMPLES A very competitive industry price taker, cannot be a price leader Its future rests on the successful introduction of two new environmentally friendly cars that will be launched over the following three years, and into which a significant amount of money has been invested Indicates a high R&D investment hence producing differentiated product

Defender (Miles and Snow Framework) Protects existing markets and aims to maintain a stable share of the market Low risk: defending what you know but requires a stable environmentEXAMPLES Defend via differentiation new product launching Stays in the same market, same product Trying to defend a stable share of market

Mintzberg Emergent Strategy While there is much to be said for being proactive, the best strategy for todays slow-growth, volatile environment may be one that is essentially reactive, a strategy in which CEOs, like some great athletes, allow the game in this case, events to come to them. This is emergent strategy, one that in a certain manner is formed on the fly, constantly reacting to events and fast-changing reality Source; http://www.iveybusinessjournal.com/topics/strategy/the-emergent-way-how-to-achieve-meaningful-growth-in-an-era-of-flat-growth#.UbMdkb9u0ZQEXAMPLES: theories emphasizing the emergent approach) Changing strategy by entering the new dimension of the industry, the environmentally friendly in order to cope with fast growing industry and fulfil consumer demand When it seems that current culture and work environment do not improve quality and workers are having low morale the company find consultant to give ideas When change seems not to work (not solving quality and morale issues) 2 managers came up with different approach to make the change plan to work out Functional structure (type of structure) The classic organizational structure where the employees are grouped hierarchically, managed through clear lines of authority, and report ultimately to one top person. Source; http://www.businessdictionary.com/definition/functional-organization.html#ixzz2VcsqUkbxEXAMPLES 6 managers with different functions7-s FrameworkAspects of organisation, needs to be aligned: - Super ordinate goals- Strategy- Style- Structure- Staff- Skills- Systems