The Rationales And Strategies For Change Management Essay

The Rationales And Strategies For Change Management Essay In this highly competitive global market organizations are pron to any change in global economic environment. The rise of highly efficient global and domestic competitors, the rapid technological development and global economic downturn like that of 2007, are some of external and internal pressures that have forced organizations to change the way they manage their business processes. In order to increase their efficiency, minimize their operation cost and increase their competitiveness, organizations are going through changes such as Downsizing, implementing new technology or merger. Considering the current economic downturn many organizations took drastic measure to insure their survival in the global market by downsizing their operation to the level where they can stay competitive. The purpose of this paper is to provide an overview on the rationale behind organizations going through change and the strategy implemented by organization. Accordingly, the paper examined the rationale and strategies used by changing organizations: GM Holden, Ford and Fletcher building supply, due the current economic crisis. Organizational change-Downsizing For decades because of instability in the global business environment organizations often finds themselves facing the need to change their way of operations. The current economic crisis which started in 2007 was a good scenario where many organizations had to take Transformative change to counter slowing global economy (Brown and Harvey 2001). The demand for product and services worldwide slammed to the lowest level which forced organizations to downsize their operations and employee number in order to minimize their operational costs. In 2009 car manufacturing company GM-Holden downsized its vehicle production to 310 a day. Holden closed its afternoon shift and operate only one shift per day. Even though Holden downsized its vehicle production it managed to keep its 3000 workforce at Elizabeth plant. The production line operates in two teams, each working one week on and one week off (The Age 2009). Similarly Ford car manufacturing company cut a round 350 employees in 2008 and close d it Geelong engine manufacturing plant in 2010 (The Age 2008). The other organization to downsize in 2009 was Fletcher Building Supply Company where a bout 2500 staff members was slashed across all operations inline with falling demand for building material around the world (The Australian 2009). From the above example we can clearly see that downsizing was the strategy implemented in countering the challenges these organizations were facing in the global market. Downsizing is a set of activities designed to improve organizations performance and by scaling down business processes, workforce and operational costs (Farrell and Mavondo 2005). In case of Holden the company prefer to keep its employee while it reduces the output while Ford and Fletcher prefer to downsize their employee and close down some of their operations. The rational for the change including external and internal pressures? According Chief executive Jonathan Ling of Fletcher (2009), due to slowing down in construction of residential houses around the world the company have taken a range of initiative to scale down manufacturing capacity of the company by retrenching workers and closing down braches to keep the profit margin. This was echoed by Ford spokeswoman Sinead McAlary (2008) who claims that the demand in six-cylinder vehicle and further deterioration in global economy forced Ford to shade some employee and closed down its engine manufacturing plant in Geelong. According to Holdenà ¢Ã¢â€š ¬Ã¢â€ž ¢s Spokesman Scott Whiffing (2009), Holden downsized its volume of production due to the falling demand of its V6 vehicles and the scraping of its G8 US lucrative export deal by its Parent company General Motors (GM). In addition, the increasing demand for smaller and fuel efficient cars in global market forced Holden to shift from manufacturing bigger fuel consuming cars to small cars that are economical for consumers. From the above reasons given by these organizations, global financial crisis was the external factor causing companies to take drastic transformative changes in order to survive in this highly competitive global market. The internal reason is the need to satisfy their shareholders by cutting costs to keep the profit margin. In addition, these organizations fail to have vision in to the demand of the market place. Car manufacturing companies like Holden and Ford failed to notice the shift in demand before the financial crisis hit the global market. This allows companies like to Toyota to easily out pace Holden and Ford and become dominant in the market place. Change Strategy used by Organization There are different strategies to implement planned organizational changes. It could be either incremental or transformative change strategy. In the case of Holden the company has implemented Participative change which is incremental transformation. During downsizing employees were participating in the planning of the change and they show willingness to work one week on and off to help the company challenge the current economic slowdown. Holden managed to keep it work force which will enables the company to cope with production of new small cars in 2010 (The Age 2009). In the case of Ford it uses Dictorial transformation strategy to implement its transformative change from being only a large car maker to add small car to its line-up by 2011. Similarly Fletcher is undergoing Dictorial transformation by downsizing its employee and closing down its manufacturing to insure its balance sheet is up float. According to Fletcher, it would also impose a freeze on remaining staff salaries and directors fees for 2010. 2.0 Comparing the Rationales and Strategies Are there commonalities that emerge? Despite of different strategies companies could implement during in need of change to secure their survival, there is a trend emerging where downsizing seem the only solution exercised by many CEO during time of crisis. Most organizations cut back their work processes or their worker during economic down turn, however researches shows down sizing is becoming a common practice regardless of the status of the economic environment(Jeffrey and Pfeffer 2010). Only one in six organizations interviewed in 1995 responded not to have downsized between 1993 and 1995(Bordia, Hobman, Paulsen, and Tourish, 2004). For example Fletcher decision to downsize their production and manpower, seems that the company was following what other organization was doing in the global market. The organization was reacting to the temporary problem arisen during the financial crisis. The shrinking market for large vehicles around the world forced car manufacturing company like Ford to lay off their worker and close down their worker. The downsizing was in response to drop in demand and due to shift of product market. Similarly Holden reacted to the crisis by cutting down product size. In all cases above, downsizing was the solution use by these organizations to cut their operational cost. It seems that they all have the same reason why they implement downsizing as strategy to face the financial but they have different way implementing it. Are some rationales and strategies presented as more legitimate than the others? In your option why might be the case? Some of the rationale and strategy presented are more legitimate than the others. If we take in the case of Holden the organization seem to understand the rationale well when they implemented downsizing as their strategy. It is important they cut down their production volume however since the problem is temporary the solution is also temporary. Holden use the situation as their advantage to structure their business processes and prepare for the future competition in the global market. The reason behind not to let go of their worker was firstly the organization valued the skilled workers who would necessary when the company introduce new small car model in 2010. For that reason the company avoided not only the cost involving laying of workers but also rehiring (Jeffrey, and Pfeffer, 2010). Secondly Holden understood the extent to which downsizing could impact the moral of the workers that are staying behind. According annual investigative industry report subsequent reductions in manpo wer have negative impact on performance (Farrell, and Mavondo, 2005). In addition Holden took involuntary downsizing with the participation and consultations of its employee. This helped Holden to minimize employee distrust on the organization. In contrary Fletcher Pty seems to care about fixing their balance sheet. The company seems to miss that the current slump in residential housing was not as result of over supply instead was due to financial crisis. The demand for residential construction is still high but it slowed down due to affordability. When the demand is high again Fletcher will be in bad position compare to its competitors. Where as Ford didnà ¢Ã¢â€š ¬Ã¢â€ž ¢t have choice it needed to cut down staff and downsize its production at Geelong plant was due to aging model of its four-wheel model and its small car was imported as the result it was necessary in long-term to downsize it business processes. There fore Ford took downsizing associated with long-term business processes restructuring (Farrell, and Mavondo, 2005). There fore its legitimate to implement downsizing in the time of crisis however it should not only focused on the current issue but the long-term strategy to gain competitive advantage in the global market. To what extent are single or multiple rationale and strategy utilised? What conclusion can you draw from these? There are circumstances in which layoffs are necessary for a firm to survive. Some time changes due to technological implementation makes downsizing feel like only solution. In the current economic crisis downsizing was a major strategy to be implemented by many organization. The external and internal pressure that generated from this crisis was the reason behind these changes. In many cases organization are mainly interested in finding an immediate solution to the crisis rather than long-term solution. This is because organizations are mainly concerned with the shareholder interest rather than the local economy or interest of employee (Burdos, 2002). In case of Holden, Ford and Fletcher downsizing was the only strategy implemented to cut cost of operation and restructuring purpose. This shows that in time crisis cost cutting is the prime target of an organization to stay competitive in the global market.

Gene Therapy Research :: Science Genetics Health Essays

Gene Therapy Research The National Institute of Health and the Food and Drug Administration are the government bodies responsible for the regulation of gene therapy experimentation. The NIH oversees gene therapy clinical trials through the NIH Guidelines for Research Involving Recombinant DNA Molecules and the Recombinant DNA Advisory Committee (RAC). The Food and Drug Administration (FDA) also oversees the trials through such regulatory measures as scientific review, testing, and inspection.10 Following the death of Jesse Gelsinger, the Advisory Committee to the Working Group on NIH Oversight of Clinical Gene Therapy Research was established to examine the purpose and role of the NIH in gene therapy regulation. It made several recommendations, many of which were adopted by the NIH as amendments to its research guidelines.12 In March of 2000, two initiatives by the FDA and the NIH were announced by the Department of Health and Human Services to increase protection for individuals involved in gene therapy experiments. The first initiative, the Gene Therapy Clinical Trial Monitoring Plan, requires that the sponsors of gene therapy studies regularly submit their monitoring plans to the FDA for review. The FDA will also inspect clinical trials to insure that the plans are being followed, and any problems are managed. In addition, scientists experienced in gene therapy will be gathered to discuss monitoring practices at conferences of the inspectors. The second initiative, the Gene Transfer Safety Symposia, includes a series of symposia that take place four times a year to discuss gene therapy data, inviting some of the most experienced authorities in their respective fields. The NIH and FDA are also providing support for other organizations interested in holding safety conferences on the topic of g ene therapy.12 Proposed Review Process3 The guidelines of the NIH for gene therapy research have also changed since 2000. In one amendment to the guidelines governing gene transfer research, the NIH altered the way research subjects are enrolled for gene therapy experiments. Under the amendment, clinical trial protocols must be submitted to the NIH Office of Biotechnological Activities (OBA) for RAC review, and the RAC must finish its review before the local Institutional Biosafety Committee (IBC) gives its approval to the trial. Subjects for research can only be accepted once the IBC and the International Review Board, IRB, approve the trial.

Tesco’s Ways of Cutting Cost

Based on your observations from the visit to Tesco, identify how Tesco controls its operating costs Making a profit is usually the primary aim of running any business, and although this is normally achieved by increasing sales, it can also be enhanced through the careful control of costs. A business that keeps costs under control will be able to release more resources for growth and be better placed to survive in a downturn or recession. A structured and ongoing approach to cost control is an essential part of any well-managed business. Finding ways to reduce operating costs is typically a priority for Tesco. On our visit to Tesco we observed that Tesco can control its operating costs by reducing the number of staff especially the cleaners who tend to be idle at times. Few cleaners will increase efficiency and reduce the labour costs. The reduction of specific fixed and variable expenses can improve the profit picture of Tesco for example in the electric gadgets side there any more than three televisions on sale of the same type switched on, it will be best to switch of the other two televisions since there are of the same type to cut cost on electricity since electricity is charged based on consumption. Tesco can reduce costs without cutting specific expenses. for example electricity costs, by switching off some of the lights in the shop, this can increase the average income per sale, per customer, per cost centre. Tesco has plenty ways to cut costs without drastically affecting the success of the business. This includes producing Tesco branded products for example Tesco cooking oil, mineral water, Tesco value toilet rolls. Making its own products has proven to be cheaper than buying from other producers. Tesco reduces operating costs by offering special discount for goods and products which are about to expire, the special discounts are there to promote sales and to get read of the products that are about to expire at the same time getting something out of the products which were about to be valueless. Tesco has also managed to reduce its costs by using cheap material on its shelves. Some its shelves are made of wood and light material which is a good thing to reduce costs. The shelves are also have wheels for flexibility, they can be moved to create space especially those shelves which are empty. Its air conditioners were also made of cheap material to reduce cost. Tesco practises bulk selling for instance cooling oil was being sold in bulk. This creates space and also reduces unnecessary stocking of goods thereby increasing stock holding costs. Bulk selling helps to reduce packaging costs. They also have their own bakery which means they do not depend on delivery from suppliers or ordering from other suppliers. This is a good thing in that they only bake according to demand at that period, hence it reduces wastage. This reduces wastage of resources because resources are being fully utilised. The use of cameras as their security system is a good thing because it reduces the number of workers to be recruited as security hence saving cost. Tesco is using energy efficient bulbs to achieve low operating costs, incorporating energy-efficient lighting and cleaner ways to operate into the business and it has no empty refrigerators, this is to reduces space and the electricity costs. Tesco will probably see a reduction in total energy consumption and be supporting a greener planet. Tesco maintains proper stocking levels of the items that they actually sell, this way they can reduce overhead in the form of excess inventory, or inappropriate inventory, whether it's out of season or simply overstocked for the season. This is a no-brainer and will reduce the bottom line operating costs in the business, making everything else they do more profitable. Keeping inventory lean and efficient allows Tesco to be flexible. They can use that extra cash flow to invest in new and innovative products, or the latest styles, positioning there store as a trend leader, rather than a commodities broker. A careful eye on inventory levels allows Tesco to understand the ebb and flow of their business as it relates to overhead, sales trends, and other expenses . This mastery will help it to control cash flows and make them more effective , increasing profits and efficiency. Reducing operating costs should never simply be about keeping a business alive. It should be about making a company profitable. Reducing operating costs should never simply be about keeping a business alive. It should be about making a company profitable once again.

Persuasive Essay On Fast Food - 986 Words

It is all too easy to blame a person’s eating habits for their health problems such as obesity and diabetes, but if one were to take a step back and look at the big picture of that person’s life they would quickly understand it is not entirely that person’s fault. In a society that highly values speed and efficiency, fast food has quickly become a popular choice thanks to its ability to provide quick meals at low prices. This popularity has made it possible for fast food restaurants to dominate the streets, resulting in fewer healthy food options. Fast food is wreaking havoc across the nation due to it being readily available, fast food companies not providing enough information on their foods, and it has contributed to our nations growing†¦show more content†¦For many people, fast food is often their only choice of food thanks to it being cost friendly and readily available, due to this fast food companies should provide their customers with more nutrit ional information about their products. By being provided information about their food consumers can determine the nutritional value of the food they are putting in their bodies and use that information to make more informed purchases. According to the FDA â€Å"Americans eat and drink about one-third of their calories away from home. Making calorie information available on chain restaurant menus will help consumers make informed choices for themselves and their families† (â€Å"Labeling Nutrition - Overview of FDA Labeling Requirements for Restaurants, Similar Retail Food Establishments and Vending Machines†). This means that fast food chains should provide nutritional information such as calories and amount of sugar and fat in the food for all of their products and have it available both online and in the store in order for customers to make wiser decisions not just for themselves, but for their families as well. Companies should also provide a list of healthy or lo w calorie meal options and inform customers of these options on the menu, in advertisements, and even at the cash register. If customers are aware and knowledgeable of what is in their foodShow MoreRelatedPersuasive Essay On Fast Food961 Words   |  4 PagesWould you like to cut years off your life for just a dollar more? 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