Management Leadership Program
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Pro SAAMYA Inc. is a startup technological company that is based in NJ. The company focuses in developing new products for the Agricultural, Transportation and Financial industry. The company has been in this business for more than 7 years, with the main organizational focus being purely on the domain expertise. In addition, the company has a very strong financial capability that makes it easy for the company to attractexpertise in order to adapt to the new fields of specialization especially during the financial and recession times.
It is during the 2008 recession period, that the company started considering various options of diversifying the product space and portfolio. Therefore, the company hired a consultant and consequently identified agricultural and transportation industries to align its business with. The identified company was S-Corporation, a corporation that is fully self-funded. In 2010, the company successfully launched multiple agricultural products. The company also acquired an animal health enterprise worth 20 billion. This acquisition enabled the company to support and integrate their vertical supply chain across their business units in the areas of commercial beef, aquaculture and equine sector. The company strategy aimed at providing a strong communicative tool to the end users of the product in order to improve productivity, market access and also to enhance compliance with the agricultural, transportation and financial field.
The inconsistences that has been evident in the company goal, structure and organizational culture has actually caused extraordinary economic circumstances that have affected the performance of the company. The company is currently attempting to transform the organization structure in order to realign the formal and informal culture of the organization with the company’s strategies. This is being done in order to ensure that Pro SAAMYA Company becomes a more sustainable and innovative firm as compared to its competitor.
The company is currently soliciting for more funds through exploration of options such as Merger & Acquisition, Equity Partner and Venture capital. But in reality, the company has extremely limited options for solving its financial issues in order to meet the financial requirement for is operation. These limited options include merging with other technological company, seeking venture capital from investors, taking a loan through provisional of security collaterals or reduction of the expenditure through sending some employees to consulting firms.
In this case, cultural realignment is the key to achieving a more sustainable organization improvement in order to achieve greater profitability. If the company fails to develop an organization culture that is fundamentally aligned to the company’s strategic objectives and improvement initiatives, the company development strategies will likely to fail in delivering of sustainable corporate benefits. Nevertheless, according to J. Kotter, this organizational commitment may essentially leads to the loss of the motivation, which would ultimately leads to reversal of all hard-won gains from the entire transformation efforts. A hypothesis by the Kotter indicates that a substantive commitment like that exhibited by Lincoln Electric Management increases the employees’ acceptance and dedication to the organization change since it cultivates a sense of job security.
A large section of employees have been with the company for a long period of time. These employees have been driven by the product innovation passion within the company. Therefore, discontinuation of the company’s operations could actually be perceived by the employees and customers as a lack of organizational managerial commitment to the business. This would result to a negative impact to the company due to the widespread customer and employees’ disillusionment.
True organizational transformation of the Pro SAAMYA Company depends entirely upon the organization culture change. The main decision for the continuation has actually proven to provide the motivation for both formal and informal realignment of the company. Therefore, the company managers need to havefuturistic dream for the company by enhancing the cultural change within the company’s organizational structure thus making Pro SAAMYA to be become more profitable firm. This is because organizational culture change will fundamentally redefine the company’s vision, values and goals. However, any attempt to suppress the change efforts or to reducing the pace will actually result to customer and employees disillusionment. Nevertheless, the progress of the company from this point, will essentially require the company to send some employees to consulting in order to reduce the cost as well as ensuring employees upholds high moral standards. This will also foster cross-organizational learning, cohesion unity a setting of a common goal among employees.
The company has strived to treat employees as an integral part of the organization through the provision of initiatives such as extensive training, cross product technical knowledge exchange programs and flexible working hours. Employees wage is also usually guaranteed, which is an incentive that motivate employees to provide a continuous and best services to the customers, which in turn improves the company performance in terms of monetary values. During current periods of slow sales, the employees are usually trained in other field in order to gain technical skills; hence they are usually sent to consulting assignment so that they can get compensation especially during tough economic times.
The managers of the company have been very instrumental in developing a robust rapport with both the corporate clients and the state official through their exemplary interpersonal skills. The company also ensures thatit’s well informed of all common situations in the city that may essentially affect the corporate operations. This is usually achieved through the opening of an open communication channel with city officials as well as the corporate clients.
The next corporate steps in the company will fundamentally involve developing a clear communication in the entire company in order to communicate the goals for undertaking the transformation program, linking the program to the company values and current strategy and defining of the timelines of the program. According to the kotter, the volume, suitability and communication are usually critical to the success of such a program. Therefore, the company must ensure that a strong communication team is in place in order to design and execute a tailored message for different audiences within the organization. In addition, the company management needs to acknowledge short term success in order to maintain the program momentum. The company also need to that the reward system is linked to the new cultural attributes, attributes that anchors desired behavior in the organization culture.
It is evident that justifying these corporate approaches to any investor or the external parties will not be easy. However, the company managers need to articulate the benefits to the stakeholders form a corporate financial perspective. The company also needs to put in to consideration the potential risk of investing on the new cultural program, along with the evaluated risk of changing the direction or doing absolutely nothing. The initial strategy of the company was to increase market access, productivity and compliance by implementing prudent long term growth strategies. Therefore, the company needs to stick to its initial strategy if the company is to become innovative, leader in the market and to achieve strong returns to its investment. This is because any company that delivers on its vision usually reverberate its financial capability.
It is normally financially feasible for the company to proceed with a cultural initiative that has a relative immaterial cost (0.25 per cent), and the one that has resulted to successful corporate operation improvement. The saving realized as a result of sending some to the company’s employees into the consultants and management roles could actually be used to moderate the cost incurred while introducing the new organizational culture.
The potential advantage for the stakeholder is the development of financial model for different scenarios to communicate. Through this, company’s manger will be able to illustrate the financial trade-offs that are associated with abandonment of a significant organizational program after it has successfully begun. Furthermore, the managers need to explicitly specify that during a down economy, it is usually the best time to reinvest in the organizational cultural change that is required to improve corporate productivity as well as execution of the growth strategy in the company. This is because expenses related to organizational culture transformational are usually low at this period. Furthermore, those key individuals in the company that champions the corporate success are normally unlikely to leave the organization. In addition, the entire organization usually understands the urgency of the transformation process.
The recommended organization change action usually poses a substantial risk to the organization. This is because the organizational culture change necessary in this situation is usually not a quick solution. Therefore, the groups mandated to these operations may easily regress especially when the management is not committed to changing. The management of the company needs to deliver its promises, foster open communication, celebrate progress, reward achievement and remain open to revising their long term organizational plans when deemed necessary.
Some of the risk associated with organizational transformational process include power imbalance or further fracturing and alienation of the groups from the main organizational culture change efforts. In order to evade this drawback, the company management needs to engage the employees into constant training, coaching, explicit definition of the overall company’s expectation as well as encouragement to the employees to build rapport with those outside the original transformational team. Furthermore, there is a need for an effective supervisory unit to the drive change. Therefore, this underscores the importance of providing similar leadership training to the company managers and supervisors. It is also imperative for the manager to coordinate sharing of supervisory responsibility in order to build a supportive team culture that enhances organization culture change and the eventual change in its financial performance.
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