Riordan Manufacturing currently uses a bureaucratic hierarchy ladder as an organizational structure. The company founded by Dr. Riordan in 1991, grew substantially dividing into regions that include California, Michigan, Georgia, and China. The company is looking to apply a formal system for managing their customer information. Team “E” has been selected to develop this strategic change in management plan. A complete change management plan identifying current practices, organizational structures, employee behavior, and a highly effective organizational structure will allow Riordan Manufacturing a successful change. Secondly, a communication plan proposed to execute the new changes within the organization …show more content…
while limiting the potential barriers.
Riordan Manufacturing currently operates with a formal legitimate power structure and a formal reward power by allocating budgeted funds to managers for conducting annual reviews. An informal expert power is necessary in many of the job requirements. In all Riordan Manufacturing locations, there are different software applications system used for operations. Multiple applications make exchange in information very challenging. Conversion to one form of application is in the best interest of the company to minimize error in the storing of customer information. The conversion will require the company to adapt the most efficient system and utilize the location as a training center for converting to the universal system. By keeping the most effective application system, cost of training and outside resources will be minimal.
The organization is composed of the median age group of individuals between the ages of 30-39.
The top executives are in a higher age group of 40-59, their expert power and political structures allows the communication process to be successful. Executing a managerial change to technologically advance the position of the company and continue to embrace innovation to succeed the organization as one entity. Top corporate executives can succeed this plan by implementing a referent and legitimate power structure to communicate the changes within the organization as a positive direction in innovative advancement.
Riordan Manufacturing operates in a matrix structure. Change is essential from Jane McCall, senior vice president of research and development Kenneth Collins, and Chief operating officer Huge McCauley. The conversion will affect every director, vice president, and sales representative. Employees believe their behavior determines their employment with the organization. Failing to obey, results in confrontations with multiple supervisors. Stress bestowed upon management’s tactical approaches will either command better performance or not. Resistance will occur when sale representatives listed in section1.1 do not receive a clear understanding as of why change is vital. The same applies to sales assistants listed below in section 1.1. Sales representatives may perceive the change as detrimental because of learning a new operating system (Robbins & Judge, …show more content…
2011).
Riordan Manufacturing majority of employees are Caucasian. The second largest culture is African American. Presenting a large amount of individuality that consists of a shorter power distance. Review section 1.2 below for percentage of actual diversity within the organization. In Riordan Manufacturing Game Plan, under PROGRAMS, culture of the organization strives to reflect on their quality. The current year scorecard demonstrates employees operating as a high function team while having fun together. Team work and security are influences within employees in the organization (Robbins & Judge, 2011).
(Riordan Manufacturing "Employee Site", 2012)
Section 1.2
(Riordan Manufacturing "Employee Site", 2012) Change is essential, but is rarely welcome in a company that has been operating on the same structure as long as Riordan group. Resistances can be seen in a change from the employees who have been a part of the company and using the same means of doing business for over ten years. Members may see change as difficult, or even threatening. Employees who have negative beliefs towards change tend to latch onto old habits, increase use of sick days, or quit. These negative beliefs arise from old habits, a feeling of security in their current state of business, fear of change from their current job tasks, or simply fear of the unknown. Several tactics can be used to overcome such barriers. Strategies planned to be used for managing the resistance is educating employees through communication. Proper communication will help eliminate misinformation by poor communication and helps "sell" the need for this change. Another strategy used is participation, using some of our current employees who seem to be more acceptable to change will participate. Participation makes it hard to resist to the change, when one is involved in the process. The final strategy which will be used if needed is coercion. Team “E” decided to use coercion as a last resort towards team members that continually resist change, force on these individuals. Force means the possibility of negative performance evaluations, poor letter of recommendation, or pay cuts. The resistance of change will be greatly reduced in our workforce with the use of these three strategies. Over the next twelve months, the strategy for change can be best explained by Kotter 's Eight-Step Plan. The transition into a new operating system will first give the workers a compelling reason for why a change is needed. After a sense of unity is established, the next step would be to form a group powerful enough to lead the change. The members will be the employees most accepting or in favor of a change. Once a team is in place, a new vision will be developed along with strategies for achieving said vision. After the change has been established, communications of the vision throughout Riordan properly, to ensure misinformation is limited. Empowerment will be given to employees outside of the main group given a Empowerment is done by having open communication amongst employees to encourage risk taking and problem solving ideas. After members have been empowered, we set up short-term goals in which the company can move forward in order to meet our long-term goals. Steps being taken to meet long-term goals need to assess progress and make necessary adjustments in the short-term goals. The last step is to reinforce changes by showing how new behaviors of the new operating system and organizational success go hand in hand (Robbins & Judge, 2011, pp. 597-598). Team “E” plans to be very proactive in evaluating our success or failure during this change. Often difficult to assess if everything is going according to plan, when focusing on daily functions. One way to evaluate these successes and failures is team building. Interactive group activities increase trust and openness amongst members can help expand and evaluate team performance. Group activities may not show exactly how the planned change is taking place, and for that there are tools like surveys. Surveys provide feedback that everyone in the organization can participate. Surveys give each employee a chance to show their attitudes towards decision-making, communication, overall satisfaction, and relationship with job, co-workers, and supervisors. Constant viewing of our short-term and long-term goals to ensure focus and proper time management is imperative. (Robbins & Judge, 2011) In order to proper stay on schedule there needs to be an appropriate communication plan put in place.
Formal channels of communication are the best forms of communication to use because of the accountability and high standards it demands. Memos, letters, bulletins, emails, and newsletters will all be used to communicate most effectively between all levels of the company. When an employee signature is required to acknowledge the receipt of an important procedural or policy change the form must be signed and dated by all applicable employees and returned to the human resources department 5 days prior to the change taking effect. The downside to this form of written communication is the delay in processing and the amount of resources spent to accomplish the communication (i.e. postal cost). The largest disadvantage to the use of written communication is the lack of employee feedback. The surveys given to employees are to be completed using electronic communication of online discussion groupware. The most significant barrier Riordan Manufacturing would be an overload of information to the employees. Information overload will result in a lack of proper retention of information given. Bi weekly status updates and review of recent material learned will be delver to employees as an e-newsletter. An example of a formal communication is
below:
To: All Site Managers From: COO Sent with high importance! Effective immediately each site manager will have a meeting at the start of shift with their departmental managers and/or team lead to cover the daily expectations of material to be covered for the conversion.
John Doe COO
References Robbins, Stephen. P., & Judge, Timothy. A. (2011). Organizational Behavior (4th ed.). Upper Saddle River, NJ: Pearson Education.
Employee Site. (2012). Retrieved from https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/HR/Employees.asp
Riordan Mfg. Employee Files. (2012). Retrieved from https://ecampus.phoenix.edu/secure/aapd/CIST/VOP/Business/Riordan/HR/EmployeeFiles.asp?sanjose