Introduction
The research paper is a critical examination of Research In Motion (RIM) Company. The central focus of the paper will be to outline the organization’s management plans including the following: strategy, planning and operations; organizational culture, values and ethics; human resource and performance management and management control.
Additionally issues relating to the type of leadership that the RIM would benefit from and how management should prepare the organization for change in a global business environment are succinctly covered.
Research in motion limited (RIM) (TSX: RIM, NASDAQ: RIMM) is company in Canada that deals with telecommunication and wireless devices and has been known for the outstanding developing of blackberry Smartphone.
The company is headquartered in Waterloo Ontario in Canada. According to Sweeny, 2009 the company was founded in 1984 by Mike Lazaridis who is currently the company co-CEO. He works alongside Jim Balsilie. The company has offices in Ottawa, Mississauga as well as in the United Kingdom.
It is indeed a market leader when it comes to wireless e-mail. Main customers for RIM products and services are mostly the corporate, roaming users as well as early adapters of technology. Before the company produced Blackberry, it was working with RAM Mobile Data and Ericsson in turning Mobitex wireless date into a two-way paging and wireless e-mail network (Hempel, 2009).
During their work with the Eriksson Company, they developed Inter@ctive pager 950 that started functioning in 1998. This device was a size of a bar soap and competed very well with Sky Tel two-way paging network that had developed by the Motorola Company.
In 2009, RIM Company announced their expansion strategy that would involve global operation. This was done through opening an office in North Sydney in Australia. This new office had training facilities, a strategic partner marketing centre, research and development centre as well as technical support service centre. This leads to increase in the workforce in the company to 12000 jobs that the company offers worldwide.
Its world known product, Blackberry Smartphone sends message very fast and also it was very efficient in sending e-mails Sweeny, 2009). This made it to be nicknamed ‘Crack berry’ as they called crack cocaine as some of the people believed that one could not live without it (Hempel, 2009).
Currently the company is boosting of having approximately 100 million users globally. In terms of revenue, it is estimated that RIM generates approximately $15 billion per year. In 2010, the company was named by Fortune 500 to be the fastest growing organization.
Strategy, planning and operations
According to Sweeny, 2009 RIM extensively carries out research this being one of their core strategies. This has ensured that the company does not exist in isolation and increase their performance, it engages in intensive research to vary their external environment. This is because these factors which are beyond the firm’s control.
It is true that, Research in Motion has an extensive market globally and it is further involving into newly industrialized nations. This has made it form partnerships, merged with other firms as well as engaging in acquisitions to help it capture the global market. An examination of the company’s short-terms and long-term assets as well as liabilities and equity shows that RIM heavily relies on equity for funding (Hempel, 2009).
Most of its assets are short-term. This means that RIM is interested in having in place a financial strategy that is short-term. RIM utilizes its own funds to finance assets. In terms o0f marketing strategy, the company offers its goods and services to customers online. The high prices of their products coupled with their excellent services have seen to it that the company is thriving despite stiff competition (Sweeny, 2009).
As suggested by Sweeny, 2009 the organization has a well planned time table on what should be done. For instance, it has been their norm that they plan to release a new device lets say after a six months and the same is achieved with no technical hitches. RIM uses lean production during its operation. This is backed with determination, dedication as well as attention.
This has seen to it that the company is effective and in time in production. The same is also applied in purchasing activities.
Three main positions are in place to over see purchasing, production and repairing equipments Lean production, purchasing and supply management coupled with adoption of technology has brought about a supply chain, manufacturing and purchasing that is economical, much leaner for smooth flow of the products.
Organizational culture, values and ethics
RIM has developed over the years in terms of organizational culture. The adopted culture is very open in that innovation are welcomed and supported financially, emotionally and even spiritually. Another thing about RIM culture is that teamwork is highly encouraged; this has seen to it that knowledge transfer and sharing is the order of the day playing a pivoted role in ensuring that succession is guaranteed.
On the same note, this in itself is a competitive advantage since all workers are knowledgeable hence meeting the needs, demands and aspiration of customers. RIM also exhibits the concept of treating customers in the best way Sweeny, 2009). This is coined to the belief that it is the customers and indeed other relevant stakeholders that keeps it on business. However the culture of bureaucracy opts to be abandoned.
This has seen to it that skilled workers are looking for jobs elsewhere. Additionally, the management should indeed foster training and education of its workforce.
There is need for the company to adopt a culture where their employees are treated well in terms of benefits, respects, recognition among others as this will boost their morale making them satisfied and stay long with RIM. Lastly, there is need to adopt a culture where individuals are promoted and recognized based on their performances.
Sweeny, 2009 noted that RIM is strongly committed to excellence as well as treating employees with high standard of respect. In the value statement of the company, it is stated that diversity is respected meaning that workers as well as partners from different cultural background opt to be treated equally. In terms of ethics, the company does not allow corruption and kickbacks.
Additionally, compliance to the relevant laws, policies and regulations should be complied with according to code of ethics. Similarly, transparency and accountability is highly encouraged.
Human resource and performance management
RIM clearly states that its workforce is the most precious resource it has that will help it propel and achieve its business goals and objectives. Members of RIM are always dynamic and forward thinkers. The department of HR strive at attracting and retaining skilled and knowledgeable workforce.
It is worth noting that at present, the company has within the HR department experts in the following fields; organizational development partners, global talent acquisition, global organizational development program and services, global learning and talent management solutions and global rewards (Sweeny, 2009).
This has helped RIM be an all round organization when it comes to managing its human resource. Issues given priority include staffing, employee relations, organizational development, and performance, managing career and compensation issues.
Despite the fact that all these sectors are well represented, there is need to periodically carryout an assessment to evaluate if indeed these sectors play their roles to what is expected of them.
On the other hand, RIM recognized that by improving the people who work in the company and by developing the capabilities of teams and individuals contributors is key to attaining organizational success. The concept of performance management is currently being used to stimulate the behaviours of workers in order to attain certain organizational goals and objectives of the company.
The concept of performance management has been used by the company to decide on salaries of employees. Here is need to use both formal and non formal programs to manage performance, this will result to employee’ satisfaction and increased commitment when it is done right; those who perform well are recognized and rewarded while those below par are recognized and supported to be better performers.
The approach will ensure that RIM realizes efficiency, effectiveness and competence when doing business.
Management control
Just like other organizations, RIM has a plan to ensure that the preset goals are attained within the specified time limit. Issues addressed by the company’s approach include setting standards, measuring performance as well as taking remedial measures where possible. In terms of finance and other sectors, the firm carries out both internal and external audits.
RIM has established a clear manner of financial reporting in which each department ones allocated money is supposed to report how the funds were utilized and the same is regularly audited. Monitoring performance is another way RIM carries out management control.
Performance is linked to preset goals and objectives Sweeny, (2009). In most cases RIM at the beginning of each financial year clearly establishes performance expectations and the respected output measured at the end of the day. Additionally RIM has mastered the since of physical control where it is only certain individuals who are allowed to access certain information.
There are also cases where there are rooms especially in the finance department where entry and access is restricted. All these have been attained by using strong passwords and locking doors as well as presence of security force in such premises.
RIM has a clear accounting control in which there are clear guidelines and procedures on how transactions are done. For instance cash receipts opt to be deposited after every two days and a copy is filed with the firms accounting clerk. The accounting clerk opts to detect and report any financial anomalies as soon as possible. Another area that RIM has management control is with regards to process control.
There are very clear guidelines on how contracts are awarded, issuing purchase orders need documentation from the following individuals requesting officer, purchasing officer and approved by supervisor (Sweeny, 2009). Similarly, any payment to contractors needs to be well documented. Additionally payment of over $100 million should be authorized by higher authorities.
With all these control management systems, it would be of more importance if the company adopts effective communication control. Effective communication will ensure that managers, frontline employees and supervisors are well informed about the mission, values, goals and objective of the company.
Both top-down and down-up communication is recommended since the managers will tell workers what he expects from his subordinates and at the same time the workers will have an avenue of letting their bosses know what they have attained and the challenges they met.
Preparation for change
It is indeed a fact that organizational change which refers to wide changes or alteration on company’s way of doing business is an inevitable concept. Change is very important in the current competitive world of business. RIM has worked hard in ensuring that it thrives and survives in the business world.
However, it is important to remember that there is need to have a well spelt out plan on how the company will prepare itself for future changes (Sweeny, 2009). Organizations that do not change will be forced out of business since they will loss competitive advantage to their rivals. The first step in preparing RIM for organizational change rests with the two most senior officers.
It would be rational if the two co-CEOs lead by example. This will make the rest of employees master and have in their mind that change is the ultimate way to survive in the future. Effective communication is another strategy that can be used to create awareness about change.
There is need to share information especially regarding change this is very important since it will prepare everyone regarding future changes (Hughes, 2007). At this stage, it is worth noting that all relevant stakeholders should be given an opportunity to air their views concerning change.
Fears should be addressed at this point for instance by ensuring the front line employees that they will not loss their jobs as a result of change. This kind of psychological preparation is key in adopting future changes (Hughes, 2007).
More importantly is the ability to build knowledge, skills as well as the abilities to manage future changes. This can be attained by educating and training workers about change through the various methodologies and programs.
It would be rational for the organization to factor in this when carrying out small changes as this will help prepare workers for bigger changes in the future (Zaffron & Steve, 2009). Employees will at the end of the day be well versed with the various stages of change and how to react to them in the most efficient manner.
Additionally, it is suggested that RIM should assess how the top management, middle level management, supervisors and front line employees perceive change. This is very important since it will help the company realize points of weaknesses and make corrective measures for instance change negative attitude and perception.
Similarly, the ability to reinforce as well rewarding change competencies is another way to prepare for change. On the same note, encouraging as well as offering support for those who did not show competency is important as it will make each and everyone within the organization to be at par.
The benefits of this are; those who are doing well will be encouraged to efficiently adopt and manage change while those who are in need of additional knowledge will be provided the same (Zaffron & Steve, 2009).
Organizational leadership needed
At present the leadership style of the company is vey unique. There are two co-CEOs who are the chairman of the board (James Balsillie) and the president Director (Michael Lazaridis). The two have different responsibilities. This kind of balanced leadership has provided growth to the company.
Over time the management style has changed from entrepreneurial to managerial. The company is characterized with centralized decision making which is associated with both advantages and disadvantages (Zaffron & Steve, 2009).
In my view, the company needs to adopt a different leadership style so that those in the realm can be able to influence thoughts, ideas and actions of others in achieving a set of preset goals, tasks, duties and responsibilities. Despite the fact that there is no one style of leadership that will guarantee organizational success.
It is worth noting that this visionary style of leadership stems from the belief of vision. The leader is empathetic and goes an extra mile to explain to workers that their efforts are of paramount significance for the attainment of the desired dream and the success will be theirs.
The strategy used is driving people towards shared goals by motivation. It has been shown that the style has unmatched contribution to success of a number of world known organization (Hughes, 2007). It is suitable when an organization is undergoing dramatic large scale changes. HP utilized this kind of leadership style when the leadership mantle was change from Fiorina Carly to Hurd Mark.
It is worth remembering that visionary leaders allow information sharing at all level, however the style can backfire in situations where one has highly experienced workforce or peers.
Among the benefits that would be derived from this type of style include; positive adoption of change, democratic environment where talent is nurtured, trust building since information is shared and response given as soon as possible, it will attract diverse individuals from different quotas bringing in skills and knowledge important in propelling the organization to success (Hempel, 2009).
Conclusion
It is worth noting that the paper has covered a number of present issues in Research In Motion Company. A brief introduction of the company has been provided.
Others issues addressed in the paper include human resource and performance management, management control, strategy, planning and operations, the kind of leadership needed for company prosperity, preparation for change and finally organizational culture, values and ethics.
I have made suggestion on how each of these sections can benefits from proposed changes for instance adopting a visionary style of leadership will give direction to the company as well as creating an attractive working environment where employees are free to air their views among other things.
References
Hempel, J. (2009). Smartphone wars – Blackberry’s plan to win. Retrieved from https://money.cnn.com/2009/08/12/technology/blackberry_research_in_motion.fortune/
Hughes, M. (2007). The tools and techniques of change management. Journal of Change Management, 7(1): 37-49.
Sweeny, A. (2009). BlackBerry planet: The story of Research in Motion and the little device that took the world by storm. Canada: John Wiley & Sons.
Zaffron, L. & Steve, D. (2009). Performance management: the three laws of performance: Rewriting the future of your organization and your life. London: Sage.