HOW WERE THE STAKEHOLDERS AFFECTED?
Quesadra Dynell Goodrum
Individual Project 3
Colorado Technical University
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Table of Contents
What is offshoring?. 4
How were the stakeholders affected?. 4
What initiated the change?. 4
How well has it been received or accepted, and why?. 4
Drivers causing this transformational change. 4
Why this is considered a transformational change?. 4
Why can the firm not just keep doing what it has been doing?. 5
Management’s role in the transformational change. 5
Are there easier alternatives to accomplish the goal of remaining competitive?. 5
Theories of Change Management 6
Lewin –. 6
Action research. 7
Best Practices for ensuring the implementation of an organizational change. 7
During the course of this paper I will be discussing my transformational change management plan. We will be covering the topic of offshoring, how the stakeholders are affected, and what caused the change. We will also be discussing drivers and what are drivers are and how they initiated the cause for change and why it is needed. We will cover possible alternatives to offshoring and their ability to keep the organization competitive. During the course of this paper we will touch base on theories of change management the pros and cons of each as well as how to properly implement them. We will cover a communication plan and in conclusion an implementation plan.
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Goodrum Electronics to as GE you see their products everywhere. You can find one of their products in every home. Weather it is a light bulb, stove, refrigerator, microwave, dishwasher, washer, dryer, light fixture, and more. Yes, it is a fact there products are highly regarded and well known. Even though they are a famous and well known they are still considered to be a midsized company. This well-known midsized company has begun to off shore most of it production and human resource support. Yet during this transformational change G&E revenue has spiked by a whopping 41%.
What is offshoring?
There are some similarities between out sourcing and offshoring however they remain to be two different things. We are more focused on offshoring and what it means verses what all it entails for the company going through it and the transformational changes seen by its cause. Offshoring is what happens when a company relocates its entire business of a part of its business from one country to the next. Typically it is consider offshoring when the company moves its operational process such as production and manufacturing and or support process such as human resources and or accounting outside it country of origin and or home country. This is done by means of internal or external outsourcing delivery models.
Due to the decrease in the amount that is being spent on a human resource support sector and production revenue has increased. Due the increase in revenue do to offshoring the Human resource support center that return on investment seen by the shareholders have increased. So they have indeed benefited from the decision to offshore. The economic logic is to reduce costs, sometimes called labor arbitrage, to improve corporate profitability.
In order to maintain its competitive advantage in the industry the change must be made. Current methods are impeding the organizations ability to succeed. What’s ideal for business is no always the case when dealing with real world situations. By implementing the necessary changes now it will allow the company to focus on growing the business which will increase revenue. This will allow the company to further develop the human capital inside the company. Rather that expending all its time and energy into the ever growing complexities brought on by human resource management and compliance. High United States cost in productions costs the company to not only offshore their Human resource support services but their production as well.
Currently GE is booming in its offshoring process. Revenue has increased by 41% in the last year. While is labor pool in the United States I shrinking slowly but surely. The labor pools in its offshore locations are rising steadily. For GE it has been a relatively smooth and glitch free process. This is due to the fact that GE has made sure that the laid off labor pool has been efficiently compensated and has assisted in relocating them into other position inside the United States labor work force (Offshore staff, 2014). Those that were willing to relocate to an offshore location keep their jobs and relocated.
Due to the heavy burden of Human resource compliance and the high costs of production the company has decided to go with offshoring as a way to implement relief. It is considered a transformational change because the company must sacrifice its current labor force and way of doing things to regain its competitive advantage in the industry. Thus the driver that is ushering in this transformational change is the ever growing complexities of the United States regulations on Human Resource management and compliance. Keeping up with this ever changing field in business can become quit costly and in results impede a company’s ability to be both productive and successful. The sheer cost is the deal breaker it is cheaper to offshore human Resource support than it is to outsource it. This is also the case when it comes to production.
The organization cannot continue to practice business as usual and expect to remain competitive. Human resource compliance and the burden in which it causes will only grow more difficult in time. They need to in essence relieve the pressure being caused by human resource compliance. Navigating through this ever changing environment has proven too be expensive and complex on various degrees and levels (Editorial Board Anastasia C.B., 2014). Production and labor costs are increasing as well making it harder to maintain its competitive advantage making it even more necessary to offshore and increase business revenue and production. In making and implementing the necessary changes it will give the company a competitive advantage.
Management’s role in this transformational change is to develop and communicate the desired vision concerning their most pressing business concerns. The secondary concern’s during the change is to keep the desired key competitive strategies and confidence levels in regards to its labor force in human resources and production as well (PRN Newswire, 2011).
The given chosen strategies have been crucial in maintaining a given the company a competitive edge by lowering the cost in dealing with human resource compliance strategies as well as lowering the cost of production. The organization has found that these chosen practices have yielded the best results in helping them remain competitive in the market (PRN Newswire, 2011).
John Kotter is the developer of an 8 step model for leading change. He was a leading pioneer in models for organizational change. The model in theory that he developed was linear in nature. The top strength of this model is that it provides clear steps for ushering in change. The greatest weakness of this model is its linearity nature. The 8 steps in this model in order are: Establish urgency, Build the lead team, Make a Clear vision, Effectively communicate the vision, Empowering Action, Make change stick, Don’t let up, and secure short term wins. Kotter’s model is good to use for any top down change that needs to be implemented.
Kurt Lewin was another pioneer in the field when it came to looking at how individuals perform in a group. His theory’s focal point was on the dynamics of the (Lewin, Field theory in social science; selected theoretical papers, 1951). He also looked at the qualities in the make of the system in which the individuals would perform in front of. This would help in the establishment of parameters in regards into the way in which groups and force teams would be studied. During the course of his research he found that all groups were interdependent among the members of the group.
This application existed regardless to the size of the group, structure, and goals. Groups come about because members are fated simply put all in the same boat sink or swim. Interdependence in groups is inevitable (Lewin, Resolving social conflict; selected papers on group dynamics, 1948). This is due to the fact that it is necessary to cooperate with others in order to get something done. The advantage of the model is that it outlines group dynamics and cohesion. The disadvantage of the model is fulfilling the individual needs of its members at the same time.
Action research is centered on a problem or a client and is action oriented as well. It involves the client in an active learning diagnostic setting. It is used as a problem finding and solving process. The data is not just simply collected ad returned in a written format of a report. Instead sessions are had in which the change agent and client dually collaborate and decide upon which problems to target and how the problems are ranked (Kondalkar, 2010). Together they decide upon devise methods to utilize in identification of the root issue and thus developing realistic plans for coping with them.
The pro of action research is that it can be used as an educational study to figure out the major problems the cause and effects of the problem and what is the best way of coping. The con to action research is that it is the change agent and the client who are weighing between problems, causes, and actions deeming which are most and least important (Kondalkar, 2010).
You have to know ultimately what model is the best fit for your company as well as your employees. You want to choose a model that well ushering in a smooth flow to the required transformational change. In considering GE change the best model of the three given I would have to choose John Kotter 8 steps. He decision to outsource was a top down decision so I believe it is the best was to process the transformational change. Using the step provided in John Kotter’s model.
- Week 4: Communication Plan (100–150 words)
Include the following context in the communication plan:
- What stakeholders require communication?
- What will be communicated to them?
- Who will send the communication?
- What communication medium will be used?
- Week 5: Implementation Plan (200-300 words)
Include the following context in the implementation plan:
- Major implementation steps
- Key criteria for success
- Summary paper
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Editorial Board Anastasia C.B. (2014). Organizational Behavior 12th ed. Words of Wisdom LLC.
Kondalkar, V. (2010). Organization Effectiveness and Change Management. New Delhi: PHI Learning Pvt. Ltd.
Lewin, K. (1948). Resolving social conflict; selected papers on group dynamics. New York: Harper Row.
Lewin, K. (1951). Field theory in social science; selected theoretical papers. New York: Harper Row.
PRN Newswire. (2011). ADP Study Regulations. New Jersey: PR Newswire US.