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Strategic Change in an Organization

Content
  1. Introduction:
  2. Change Management Learning Center
  3. Task 1
  4. 2. 1 Examination the necessity for strategic change in an organization:
  1. 2. 1. 1 Theory:
  2. 2. 1. 2 Application:
  3. 2. 1. 2. 1 Position Model:
  4. 2. 1. 2. 2 Situation Planning:
  5. 2. 2 Assess the factors that are driving the need for strategic change:
  6. 2. 2. 1 Theory:
  7. 2. 2. 1. 1 Political-Legal factors:
  8. 2. 2. 1. 2 Economic Factors:
  9. 2. 2. 1. 3 Socio-cultural factors:
  10. 2. 2. 1. 4 Technological factors:
  11. 2. 2. 2 Request:
  12. 2. 2. 2. 1 Political:
  13. 2. 2. 2. 2 Inexpensive:
  14. 2. 2. 2. 3 Societal:
  15. 2. 2. 2. 4 Technological:
  16. 2. 3 Assess the resource implications of the company not giving an answer to strategic change:
  17. 2. 3. 1 Theory:
  18. Human resources
  19. 2. 3. 2 Program:
  20. 3. 1 Develop systems to require stakeholders in the look of change:
  21. 3. 1. 1 Theory:
  22. 3. 1. 1. 1 Identifying Stakeholders
  23. 3. 1. 1. 2 Stakeholder Mapping
  24. 3. 1. 2 Program:
  25. 3. 2 Develop a change management strategy with stakeholders:
  26. 3. 2. 1 Theory:
  27. 3. 2. 2 Application:
  28. 3. 3 Measure the systems used to require stakeholders in the look of change:
  29. 3. 3. 1 Theory:
  30. 3. 3. 1. 1 Organizational-Level:
  31. 3. 3. 1. 2 Group-level resistances to improve:
  32. 3. 3. 1. 3 Individual-level resistances to improve:
  33. 3. 3. 2 Program:
  34. 3. 4 Create a technique for managing amount of resistance to improve:
  35. 3. 4. 1 Theory:
  36. Strategies for handling resistance to change:
  37. Task 2
  38. 1. 1Discuss models of strategic change:
  39. 1. 1. 1 Theory:
  40. Hofer and Schendel 1978
  41. 1. 1. 2 Request:
  42. 1. 2 Measure the relevance of types of tactical change to organisations in today's economy:
  43. 1. 2. 1 Theory:
  44. Supply chain management Model:
  45. 1. 2. 2 Software:
  46. 1. 3 Measure the value of using strategic treatment techniques in organisations:
  47. 1. 3. 1 Theory:
  48. Organization Development Interventions:
  49. 1. 3. 1. 1 Individual OD Interventions:
  50. 1. 3. 1. 2 Team OD Interventions:
  51. 1. 3. 1. 3 Organizational-wide OD Interventions:
  52. 1. 3. 2 Application:
  53. 4. 1 Develop appropriate models for change:
  54. 4. 1. 1 Theory:
  55. 4. 1. 2 Software: The 5 P's Model of Nokia
  56. Principal and Process
  57. People
  58. Performance
  59. Purpose
  60. 4. 2 Plan to put into action a model for change:
  61. 4. 2. 1 Theory:
  62. Implementation of 5'p model:
  63. 4. 2. 2 Application:
  64. Implementation of 5'p Model of Nokia:
  65. 4. 3 Develop appropriate actions to monitor progress:
  66. 4. 3. 1 Theory:
  67. 4. 3. 2 Application:
More...

Introduction:

Change management is the process, tools and ways to deal with the people-side of business change to achieve the required business outcome and to recognize that business change effectively within the cultural infrastructure of the work place.

Change Management Learning Center

Strategic management is the skill and technology of formulating, applying and analyzing cross-functional decisions that will allow an organization to accomplish its goals. It requires the systematic identification of specifying the firm's targets, nurturing guidelines and ways of achieve these aims, and acquiring and making available these resources to put into practice the guidelines and ways of achieve the firm's aims. Strategic management, therefore, integrates the activities of the various functional sectors of any business, such as marketing, sales, creation etc. , to achieve organizational goals.

Task 1

2. 1 Examination the necessity for strategic change in an organization:

2. 1. 1 Theory:

The difficulty of politics, regulatory, and technological changes confronting most organizations has made radical organizational change and version a central research issue. This article pieces out a framework for understanding organizational changes from the point of view of neo-institutional theory. The main theoretical issue tackled in the article is the interaction of organizational framework and organizational action. The article examines the processes by which specific organizations retain, take up, and discard web templates for organizing, given the institutionalized character of organizational domains.

2. 1. 2 Application:

There are two possible organizational change models that the Nokia found in establishing their attempts that falls under the Strategic Planning model. There exists various kind of approach and two are picked-up for careful examination. Both models are Alignment Model and Situation Planning Model:

2. 1. 2. 1 Position Model:

This kind of model ensures the strong alignment among the list of organization's mission and its resources to effectively operate the organization. This model is useful for organizations that need to fine-tune strategies or find out why they aren't working. Nokia might also choose this model if it's experiencing a huge range of issues around internal efficiencies. Overall steps include:

The planning group outlines the organization's quest, programs, resources, and needed support.

Identify what's working well and what needs modification.

Identify how these alterations should be produced.

2. 1. 2. 2 Situation Planning:

This methodology might be used together with other models to ensure organizers truly undertake tactical thinking. The model may be useful, particularly in identifying strategic issues and goals.

1. Includes selecting several external makes and imagining the related changes which might influence the business.

2. For each change in a push, discuss three different future organizational scenarios which might arise with the organization because of this of each change. Reviewing the worst-case circumstance often provokes strong drive to change the business.

2. 1. 3 Comment: Nokia examined that; they have to strategic change for his or her organization as a result of organization's objective, programs, resources, and needed support and many external makes and imagining the related changes which can influence the business.

2. 2 Assess the factors that are driving the need for strategic change:

2. 2. 1 Theory:

2. 2. 1. 1 Political-Legal factors:

Political and legal systems range between countries and frequently have a primary impact on organizations by inserting limitations on what they can and cannot do. Government authorities tend to regulate companies such as power supply; telecommunications, postal services and transfer - and these polices change between countries. Merger activity is more and more at the mercy of the endorsement of competition regulators by political and legal factors.

2. 2. 1. 2 Economic Factors:

Economic factors such as wage levels, inflation and interest rates are critical in driving a car an organization's cost bottom part. Electronics companies have turned many production facilities to low income economies in Asia to spend less. The business circuit or general point out of the market is also a significant impact on organizational well-being and changes in another of the major economies have far-reaching effects.

2. 2. 1. 3 Socio-cultural factors:

Nokia have managed to be quite environmentally friendly and have not done whatever the consuming open public took huge offence to, they have been very careful regarding this which is one of the reason why they may be such a popular brand of mobile phones. A key power for some organizations is demographic change, since changes in the quantity and get older of the populace will directly impact the demand for particular products and services.

2. 2. 1. 4 Technological factors:

Technology is an important environmental influence and it is leading much management to reconsider fundamentally the way they operate. Advances in information technology in particular can affect all areas of an enterprise, from its overall tactical position to how it handles marketing, design, production and circulation.

2. 2. 2 Request:

PEST Analysis is performed to understand the macro-economic factors that may impact Nokia.

2. 2. 2. 1 Political:

Nokia has shifted its making systems to India. Nokia has to be cautious with the labor regulations and its political implications. For example, the manufacturing plant was shut for 2 weeks because of staff strike. In few of the countries, mobile market is still highly controlled and government treatment does happen.

2. 2. 2. 2 Inexpensive:

Economy plays an integral role in profitability of the smartphone industry. The demand for smartphone is elastic and hence any monetary downturn might hamper the sales of the smart mobile phones.

2. 2. 2. 3 Societal:

We do not understand a lot of societal influences to Smartphone industry as culture are very receptive to enhance technology. In addition the go up of the so-called information population has made telecommunications a lot more important to customer, both in conditions of work and leisure.

2. 2. 2. 4 Technological:

Smartphone industry is marked by drastic scientific changes. Advancement and new product launches at faster rate are fundamental attributes for success in this industry.

2. 2. 3 Remarks: Nokia Measure the factors that are generating the need for proper change by PEST evaluation because of Infestation Analysis is a useful tool for understanding the tactical change of the surroundings in which Nokia are operating, and the opportunities and dangers that lie within it. By understanding Organizational environment, Nokia can take advantage of the opportunities and lessen the dangers.

2. 3 Assess the resource implications of the company not giving an answer to strategic change:

2. 3. 1 Theory:

Resource implications: There are severe source of information implications with an organisation for not giving an answer to tactical change. The respond should be implemented at the right time.

Human resources

Physical resources

Financial resources

If the company does not react to changes, this will have an impact on its entire resources adversely

Human resources

To maintain a wholesome, successful and useful environment Nokia collaborates with its employees under the primary goal to produce an environment for all its employees where they can satisfy their potential. Inspiration, encouragement and keeping employee's satisfaction and well-being at the job are essential for Nokia to perform at its best. As being a goods maker Nokia collaborates using its employees within formal and casual networks to permit suggestions to be exchanged easily.

2. 3. 2 Program:

Nokia count of all the skilled or unskilled staff for the organization hires to benefit them. Nokia do hire highly skilled personnel because of its aspect of technology work and offer them with training to keep them upgrade and create opportunities for program coders who could work from your home to be competitive in a competition to get prices and even offer them careers. In this time around of recession and current economic climate down convert every Nokia is looking to cut cost by making their surplus staff redundant.

2. 3. 3 Feedback: Nokia assess the human source of information implications to their company for not responding to strategic change as a result of Nokia has very skilled staff due to their nature of technological work and provide them efficient training curriculum. So Nokia you don't need to assess the learning resource implication for their strategic change.

3. 1 Develop systems to require stakeholders in the look of change:

3. 1. 1 Theory:

Stakeholder examination is the process of identifying the individuals or categories that are likely to have an effect on or be affected by a suggested action, and sorting them relating to their effect on the action and the impact the action will have with them. Stakeholder evaluation is an integral part of stakeholder management. You will discover:

3. 1. 1. 1 Identifying Stakeholders

When Stakeholders determined as people or organizations that are concerned about, affected by, have a vested desire for, or are involved in some way with the problem at hand. Intermediary community groupings, identified during the capacity-building section, can help identify a broad pool of stakeholders. Though, it is important to discover the casual stakeholder groups and examine their importance.

3. 1. 1. 2 Stakeholder Mapping

Mapping stakeholders is a strategic business tool which identifies and assesses the result of your different person or group of stakeholders over a company. It examines the energy stakeholders can exert, the comparative probability of them using that power, and their degree of interest about the company's activities.

The stakeholders in this way are broadly divided into four organizations;

Low interest/low power

high interest/low power

low interest/high power

and high interest/high power

3. 1. 2 Program:

Nokia develop stakeholders planning to change by using two methods identify and mapping stakeholders. With stakeholder mapping, when Nokia found in combination with the politics mapping methodology, they don't really have to be as accurate in identifying the levels of interest and electric power in the first evaluation. With stakeholder mapping, Nokia can identify people who don't have much interest in, or electric power over, their issues and can thus be dismissed from further analysis.

3. 1. 3 Comment: Nokia should use the mapping stakeholder's method for producing their stakeholders likely to change because of Nokia can identify people, who don't possess much curiosity about, or ability over, their issues and can thus be ignored from further examination of stakeholder's change planning.

3. 2 Develop a change management strategy with stakeholders:

3. 2. 1 Theory:

Stakeholder Management is an important self-discipline that successful people use to earn support from others. It helps them ensure that their assignments be successful where others fail.

Stakeholder Examination is the strategy used to identify the key people who have to be triumphed in over.

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Identify stakeholders: The success of the task depends upon the satisfaction of the stakeholders. Therefore, it's important to recognize the stakeholders before you develop the product. Identifying stakeholders enables a software team to make better decisions and execution phases of the development process.

Document needs: Release the completed, prioritized Stakeholder Needs Documents to each stakeholder. Include a copy of the initial stakeholder meeting document. Require any corrections or changes to their needs within seven days.

Analysis stakeholder's interest: Shareholders and employees have a fascination with the success of the business. High gains which not only lead to high dividends but also job security. Suppliers have an interest in the expansion and prosperity of the firm.

Manage stakeholder's expectation: Three Handling Stakeholder's objectives that are given below:

Know your stakeholders

Know what you are suppose to deliver from the possible of the stakeholders

Hold your stakeholders responsible to the realities of the projects.

Take action: A Stakeholder should take this action in stakeholder's management evaluation, which is listed below:

Communicating with stakeholders and keeping them prepared of concerns that are likely to be of interest to them;

Obtaining information from stakeholders which will be highly relevant to the task;

Managing the targets of stakeholders;

Involving stakeholders in every key decisions about the job;

3. 2. 2 Application:

Nokia applied develop change management strategy by stakeholder's management process. As we discussed on above stakeholders management model, which is helps Nokia to ensure that their change management strategy tasks will be be successful.

3. 2. 3 Feedback: Nokia can use the stakeholder's management Model for their develop strategy change management because of this is the technique used to recognize the key people who have to be earned over. Moreover, by using this model Nokia can identify customer's needs and expectation and take action in future for their change management.

3. 3 Measure the systems used to require stakeholders in the look of change:

3. 3. 1 Theory:

Resistance to improve: Resistances to Change may appear at the organizational level, group level, or individual level.

3. 3. 1. 1 Organizational-Level:

Power and conflict: If change benefits one function at the trouble of another, issue Impedes the change process. Powerful divisions, such as IBM's mainframe division, can disrupt change.

If sales fall, R&D wants funding for product development while sales would like to hire more folks. Subunit orientations cause coordination problems and slow decision-making. A higher level of activity interdependence makes change difficult. It really is more difficult at top levels by affecting the entire organization.

3. 3. 1. 2 Group-level resistances to improve:

Group norms: When change results in different job and role romantic relationships, informal

norms may become invalid, making a fresh set of norms necessary. People may resist

this.

Group cohesiveness, fascination to the group, is effective, but if it's too high, the group may avoid change. The group may work to keep up its position even at the expense of other groups.

3. 3. 1. 3 Individual-level resistances to improve:

Uncertainty and insecurity: Level of resistance to the uncertainty and insecurity of change results in inertia. Selective notion and retention suggests that people perceive information consistent with their views. If change doesn't gain them, they do not endorse it.

Habit: People favor familiar responsibilities and have a tendency to go back to original conducts, making change.

3. 3. 2 Program:

Nokia assessed stakeholder's planning to change management by using resistances to change model, which is occurring at the organizational level, group level, or individual level for resistances change. Furthermore Nokia's stakeholder's Group level of resistance occurs when users ignore negative information to attain harmony.

3. 3. 3 Comment: Nokia does not have any organizational resistances to improve for their stakeholder's change management.

3. 4 Create a technique for managing amount of resistance to improve:

3. 4. 1 Theory:

Strategies for handling resistance to change:

Identify all get-togethers which have a stake in the outcome? Include a way to get all stakeholders mixed up in planning and execution.

Goal in the forefront no matter how maintains Your Concentrate. Keep carefully the long-term whelmed by the amount of resistance luring it is to get over.

Use opposition as opportunities to request really think about the proposed under the surface and notice what folks changes.

Respect your stakeholders

Value input

Validate concerns

That resistance will recede. Include ways to keep Do not ignore, avoid, or wish the planning and execution the doors of communication wide open throughout of the change.

3. 4. 2 Program: Stakeholders are applied these obligations for managing amount of resistance to improve of Nokia, which is listed below:

Identify the stakeholders whose commitment is required.

For each kind of stakeholder, express the needed change, perceived benefits and expected level of resistance.

Develop action blueprints including ones for the stakeholder organizations that aren't sufficiently devoted.

One critical group often overlooked is higher-level supervision; they need to be included one of the key groups.

3. 4. 3 Comment: Nokia can taking care of resistance to change by using stakeholder's strategy for example, stakeholders express their needs for change, perceived benefits and expected resistances.

Task 2

1. 1Discuss models of strategic change:

1. 1. 1 Theory:

Strategic change is thought as "changes in the content of your firm's strategy as described by its opportunity, reference deployments, competitive advantages, and synergy".

Hofer and Schendel 1978

Strategic change as a subject has for long become a question of importance, within the proper management field. The reason why to why proper change is important is "since it presents the means by which an organization keeps co positioning with moving competitive, technological and social environments". Tactical change can though harm existing resources and performance especially among organizations highly dependent on human resources; these organizational resources decrease the propensity to adjust tactical change, because of new tasks, responsibilities and circumstances.

1. 1. 2 Request:

Nokia developed their organizational tactical change by utilizing a range of mergers and acquisitions (M&As) of other businesses with an increase of or less related but different business activities. M&A as well as strategic alliances are a means to obtain the necessary functions and are designed to improve the overall performance of the firm. Nokia is now gradually moving from M&A to alliances to be able to fortify their core capacities, and divesting and refocusing its business activities instead of diversifying business activities.

1. 1. 3 Comments: Nokia can develop their organizational tactical change by by using a number of mergers and acquisitions (M&A) process because of M&A to obtain the necessary capabilities also to improve the overall performance of the business.

1. 2 Measure the relevance of types of tactical change to organisations in today's economy:

1. 2. 1 Theory:

Supply chain management Model:

Supply chain is operating as efficient as is feasible and generating the greatest level of customer satisfaction at the cheapest cost, companies have followed Supply Chain Management operations and associated technology.

Nokia is at an extremely competitive market that is very margin/cost hypersensitive and equipment companies are less and less able to make enough income on just the sales of boxes exclusively. The strategy they have adopted is to move to a service and solutions-orientated model, facilitated by the digitalization of the complete telecoms business. Nokia's goal has been to create revenue streams from operating the merchandise for the client or by giving service deals.

1. 2. 2 Software:

Nokia Networks did a great job by using all the best practice approaches to supply chain management model and has applied these to a new area of the supply chain - a location which is much more important in today's market economy.

Nokia utilizing their supply chain to produce differentiation on the market place. With this model they are going to be a innovator in the change of the industry - this company has taken a huge step forward. Nokia Networks manages in an extremely competitive global market where low-cost manufacturers and getting more profit.

1. 2. 3 Comment: Nokia can evaluate the strategic change for their organisations in today's economy by the use of supply string management model because of Nokia supply chain management to create differentiation on the market place, which highly works the competitive global market place. As which Nokia able to earn more income.

1. 3 Measure the value of using strategic treatment techniques in organisations:

1. 3. 1 Theory:

"Strategic Treatment is a way for assisting people to find empowering meanings for his or her life circumstances, discover why they do what they do and exactly how they meet their needs in positive and negative ways, the knowledge of which helps to promote ecological change".

Tony Robbins

Organization Development Interventions:

OD interventions are ideas or programs made up of specific activities designed to effect change in some facet of a business. Generally, organizations that wish to achieve a high amount of organizational change will employ a full selection of interventions, including those designed to transform individual and group action and attitudes.

1. 3. 1. 1 Individual OD Interventions:

Role negotiation

Management training

Job redesign

Career planning

1. 3. 1. 2 Team OD Interventions:

Team building

Process consultation

Inter-group team building

1. 3. 1. 3 Organizational-wide OD Interventions:

Survey feedback

Confrontation meeting

Structural redesign

Management by goals (MBO)

1. 3. 2 Application:

Nokia used organizational development strategic treatment techniques in their organisations. Once we discuss on above specific OD of Nokia implies several things like management training, job design. Additionally team OD means team development and process discussion. This is the strategic treatment of Nokia Ltd.

1. 3. 3 Comment: Nokia should apply specific organizational development proper intervention techniques in their organisations because of Individual level strategic intervention gives more advantages for the organization. Nokia redesign job and offer management training methods by applying this intervention strategy. That is why this is very important to Nokia.

4. 1 Develop appropriate models for change:

4. 1. 1 Theory:

Organizational change is the movements of an organization from one situation of dealings to another. Organizational change can take many forms. It could involve a big change in a company's framework, strategy, policies, types of procedures, technology, or culture. The change may be planned years in advance or may have no choice but upon an organization because of a shift in the environment. Organizational change can be radical and alter the way a business operates, or it might be incremental and slowly but surely change just how things are done. Nokia applied 5'p model for develop their organizational change.

4. 1. 2 Software: The 5 P's Model of Nokia

Principal and Process

People

Performance

Purpose

4. 1. 2. 1 Goal: This consists of the organization's objective, eyesight, goals, and aims, as well as approaches for achieving the eye-sight and mission. Leaders must establish the strategic way and goals of the organizations as well as the strategies and tactics for achieving them.

4. 1. 2. 2 Guidelines: Nokia is the integrity base, ethics, and center prices to which employees are expected to make a commitment when they are chosen. Market leaders of Nokia understand the key points after which their organizations were founded and upon which they currently operate.

4. 1. 2. 3 Processes: Processes will be the organizational buildings, systems, and strategies that are being used to make the products or perform the services that the Nokia provides, as well as the infrastructure and rules that support these systems and steps. Therefore, Nokia Techniques that are well documented and Ideas that are well communicated can drive patterns that is necessary to achieve Performance quality.

4. 1. 2. 4 People: People are the employees who perform work that is steady with the Concepts and Functions of Nokia to attain its Purpose. Nokia business leaders understand and can align Purpose, Ideas, Processes, and folks, they are more likely to achieve Performance brilliance.

4. 1. 2. 5 Performance: Performance encompasses all the metrics, measurements, and expected results that point out the position of Nokia and are being used as standards for decision making. It is essential that business leaders understand and build measurement and reviews systems because of their organizations long-term survive and success.

4. 1. 3 Comment: Nokia can form their organizational change model by using 5'ps model because of 5'ps model suggests the organization's goal, primary, process, people and performance where Nokia can achieve their goals and develop organization's structure, makers and performance way of measuring for tactical decision making. So 5'p model is vital for develop organizational change.

4. 2 Plan to put into action a model for change:

4. 2. 1 Theory:

Implementation of 5'p model:

Implementation is the realization of an application, or execution of an idea, idea, model, design, specs, standard, algorithm, or insurance policy.

The model that we used in our change management is similar to the 5-P Model carried out in this specific article, They are:

Purpose

Principles

Process

People

Performance

This model may be appropriate based on the nature of the change, the culture of the business, and the personalities and design of the change market leaders. The main thing is to use a model that assists as an anchor to the day-to-day vagaries of change. Whether we're using the 5-P Model, or any number of other change management models, we can be successful.

4. 2. 2 Application:

Implementation of 5'p Model of Nokia:

The main purpose of Nokia is the fact that, to achieve organizational mission, perspective and goals by giving their main like, good customer service, attributes of product supply, cost reduction and profit maximization. Moreover, Nokia's Processes will be the developing organizational set ups, systems, and methods that are used to make the attributes of products or perform the best services by providing their expert systems, Employees and market leaders. Performance is vital because the market market leaders of Nokia understand and establish measurement and opinions systems for his or her organizations long-term survive and profitability.

4. 2. 3 Comment: The execution of 5'p style of Nokia should apply in the business since it will show the overview of organization's current targets, structure and systems by which company may take further step of change model.

4. 3 Develop appropriate actions to monitor progress:

4. 3. 1 Theory:

Developing Monitoring improvement is about monitoring how the work with others is certainly going, making certain you are 'on activity' and 'on time'. Monitoring improvement in working with others involves you considering your progress in:

managing an organization activity to permit the group to attain its goals effectively and successfully;

establishing and preserving co-operative working connections, exchanging responses and agreeing ways to resolve difficulties; and

Monitoring and critically reflecting on your use of skills in dealing with others, and adapting your strategy as necessary.

4. 3. 2 Application:

Nokia develop in their organization's monitoring improvement by using appropriate measuring tools, which is listed below:

Identify Problems - Studies are can be very effective in identify problems areas before they become serious, especially the ones that are hidden from older management.

Training - Lack of proper training is a common cause of dissatisfaction among employees and can result in much more serious problems such as stress.

Communication - For Nokia to perform efficiently good inside and external marketing communications are essential, studies can provide a strategy to help organizations to keep an eye on and measure how well a business communicates.

Goals and Aims - Nokia can measure and screen the level that the staff are aligned with the older management's business goals and targets.

4. 3. 3 Comment: Nokia can form organization's monitor progress by calculating tools which is talked about on above. Nokia actions organization's current keep an eye on progress by Identify problems, benchmark, training and goals and objective and may take decision for develop likely to monitor improvement.

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