Change Plan for Gulf States Metal Inc. Report

Introduction

Constant change in the competitive environment will require continuous modification of strategic objectives; consequently, design, too, will have to keep changing to ensure that the organization remains aligned with its strategy. This implies that managers engaged in change will always be aiming at moving targets. At the same time, however, the most effective structures will be flexible enough to accommodate change without requiring perpetual upheaval. Gulf States Metal Inc. (GSM) is one of the companies affected by lack of strategic vision and immobility respond to coming changes and foreshadows technological innovations. Many other companies, like GSM, are coming to realize that they cannot hope to compete successfully with organizations utilized new management approaches.

Problem identification and Desired Outcomes

The main problem of GSM is lack of strategic vision and a strategic approach to management, and human resource management in particular. One of the characteristic features of the human resource management is the pivotal role which has been given to line managers as a delivery point for a variety of employment policies that are intended to raise the performance of the workforce. Poor management by the former general manager led to weak market position and low prices, lost of labor forces and reduced productivity. It is possible to say that low culture and poor communication, inappropriate delegation of authority and responsibilities are a direct result of his poor management (Campbell 1997).

Thus, the second problem is ineffective leadership and management styles of the key managers (the general manager, plant manager, and director of operation). Autocratic leadership style and poor communication are the main weaknesses. Management, as a role for heads of organizations, involves control over others’ behaviors and actions. For most people a position of leadership centers around the management role, its tasks and techniques—its technology. It conjures up ideas like controlling interpersonal relations, making decisions, aligning individual member actions and perceptions with corporate goals, planning, budgeting and directing the effort of the several followers engaged in the work. The manager role involves insuring that group activity is timed, controlled and predictable (Hoyle and Wilmore 2002).

The third problem is inappropriate delegation of authority and performance of responsibilities. It is possible for some line managers to exercise func­tional authority over some process in another line department; a sales manager may exercise functional authority over aspects of manufacturing. Delegation is the process whereby an individual or group transfers to some other individual or group the duty of carrying out some particular action and, at the same time, taking some particular decision (Lothans 2006). It means, in effect, entrust­ing some part of the work of management to subordinates. Thus, the managers admit that “supervisors cannot be trusted to make decisions” (Case study). The work should be delegated and the superior should hold the subordinate accountable. The subordinate is responsible for doing the job; it is the superior’s responsibility to see the job is done (Lothans 2006).

The desired outcomes are to improve corporate culture and communication, introduce effective delegation of authority and ‘teach’ managers how to foresee and predict possible changes and threats caused by external and internal environment.

Alternative Approaches to Changing the Situation

Empowerment and improved leadership styles can be seen as a frame for the change. Workers will no longer accept this limited view of themselves and their level of contribution to the collective enterprise. Workers today are better educated and far more independent than they formerly were. Workers are more aware of what is possible for them, and therefore they want more. There are no indications of what the role of the supervisor should be under HRM.

While these features describe an ideal type, they may be much more difficult to achieve in practice. People want to make a difference, and the leader will gain followers if he or she allows or teaches them how to do this. It is possible to define empowerment in terms of motivation. Following Vonderembse & White (2003) it is enabling, rather than simple delegation. It is helping people feel significant. It is aiding them in learning, involving them in the group and making the work exciting for them. Empowered people respond to work and to crises at work with commitment; powerless people do not. Empowerment will help to change culture and improve communication. Empowering others is pulling them, not pushing them; it is translating intention into action and sustaining it. It is moving people from believing to doing to becoming. Being empowered enlarges the perception of employees and gets them to explore possibilities. It raises their ability to perform. It releases the power in others through collaboration. It endows employees with the power required to perform a given act, and it grants them the practical autonomy to step out and contribute directly—in their unique ways—to the job (Stickland 1998).

Determining effective methods is a part of planning process which involves systematic, analytical approach which reviews staff as a whole in relation to its environment with the object of: developing an integrated, coordinated and consistent view of the route the company wishes to follow; and facilitating the adoption of HR to environmental change. Performance deficiencies result from motivational problem which is closely connected with lack of skills (Senior 2001). To improve this situation, GSM should select training methods taking into account rapid environmental changes and unique personalities of every employee. The purpose of training is to improve knowledge and skills, and to change negative attitude towards training activities. This can lead to many potential benefits for both individuals and the organization. Following Sims (2001) Training can: increase the confidence, motivation and commitment of staff; provide recognition, enhanced responsibility” (p. 47). Restrict leadership ideas to emphasize high-quality and excellent managerial performance. Unlike leadership as management, this virtual environment does not focus solely on systems and control, operational style or productivity. Rather, leadership as excellent management involves prioritizing innovation, concern for customers, quality and simple structures. It is expected that empowerment of employees and changing leadership styles will help to introduce new culture and communication, restructure production and improve production methods.

Action Plan

The change process will be divided into four parts: individual change, team change, organizational and leading change (Genus 1998).

Table 1. Change Process for GSM

Table 2. Training Development Program for GSM

The main weaknesses and strengths of the Plan

The strength of the plan is that the organizational change process consists of incorporating new behaviors into organizational processes. This plan allows managers to link all operations and involves the design of formal structures and processes to link related operations that have been separated by strategic grouping. Once the key decisions have been made about strategic grouping, the next step is to provide the necessary mechanisms to coordinate work so that the company can work as an integrated enterprise (Beeson & Davis, 2000). Different degrees of task interdependence among groups call for different kinds of formal linking mechanisms; the objective is to design mechanisms that allow each group to receive from other groups the information it needs to perform its work and achieve its objectives. Linkages that are incapable of providing the necessary flow of information inevitably result in poor coordination; those that are more extensive and elaborate than necessary prove costly and hinder the flow of information. The key is to figure out which mechanisms are essential, without going overboard (Boehnke & Bontis 2003).

The main weakness of the plan is lack of administrative changes. Thus, it is impossible to predict these changes without data analysis and personal observations of the consultant. This change would be possible in a year if the key managers are unable to meet changing conditions and strategic tasks. The main organic characteristics of business that is able to meet the challenges of the new economy are; flexibility, empowered employees, and the absence of stiff work rules (Lothans 2006). A free-flowing organization is characteristically associated with change and is considered the excellent organization adapting to an unruly business environment. During technology and administrative change, the main organic characteristic of the organization will significantly be affected. Administrative change could result downsizing which will eventually result in to the demoralization of the workforce. Furthermore, technological changes such as the adaptation of computerize automation system will contribute to main restructuring of all departments and probably mass layoffs. Such circumstances will eventually affect the employee’s commitment to work as well as their work ethics and values (Lothans 2006).

The ‘ideal’ type of change in this situation can be based on the dual core approach to organizational change contrast administrative and technical changes. The organization is viewed as divided into an administrative core & a technical core (Sims 2001). Administrative change or strategy & structure change comes from top to bottom. It is promoted by a mechanistic structure. It affects the organization’s structure and key strategy. It often promotes downsizing. On the other hand, technology change comes from the bottom to upper organization. It is promoted by an organic structure. Technology change involves the production process, techniques, workflow, and product. Compared to technology change, administrative change is less regular; it originates from different sources and corresponds to different internal processes. In dual-core approach, many organizations-such as non-profit and government organizations-must adopt frequent administrative changes and need to be structured distinctively from organizations that rely on frequent technical and product changes for competitive, advantage (Senior 2001).

Conclusion

Change must be continually managed in order to have sustained results. Measurement provides a way to track progress. An effective measurement system must be specific, simple to understand, creative and involve both managers and employees. The results should be visually displayed so that employees can track their progress. Organizational change, if approached from a truly thoughtful perspective about the organization’s long-term growth and success, is just as complex, in some ways, even more so. It is important to note that for GSM change is more than a series of unrelated attempts to restructure departments and modify reporting relationships: it is the collection of formal structures and informal relationships that give GSM a particular feel and functionality. Change is a process for configuring social and technical components in ways that fit the architectural framework and focus the organization’s capabilities.

Bibliography

Boehnke, K., Bontis, N. 2003, Transformational leadership: An examination of cross-national differences and similarities. Leadership & Organization Development Journal. vol. 24, iss. 1/2, 5.

Beeson, I., Davis, Ch. 2000, “Emergence and accomplishment in organizational change”, Journal of Organizational Change Management. Vol. 13, iss. (2, 178-189).

Campbell, D.J. 1997, Organizations and the Business Environment. Oxford: Butterworth-Heinemann.

Genus, A. 1998, The management of change: perspective and practice. London: International Thompson.

Hoyle, J.R., Wilmore, E.L. 2002, Principal Leadership: Applying the New Educational Leadership Constituent Council (Elcc) Standards. Corwin Press.

Lothans, F. 2006, Organizational Behavior. McGraw Hill Higher Education.

Sims, R.R. 2002, Managing Organizational Behavior. Quorum Books.

Senior, B. 2001, Organizational Change, Capstone Publishing.

Stickland, F. 1998, The Dynamics of Change. London: Routledge.

Vonderembse, M. A., White G. P. 2003, Core concepts of operations management. Wiley.