Strategic Change in an Organization

Strategic Change in an OrganizationIntroductionChange circumspection is the process, tools and techniques to manage the people-side of business mixture to achieve the required business flesh and to realize that business agitate effectively within the social infrastructure of the workplace.Change charge Learning CenterStrategic management is the art and skill of formulating, implementing and evaluating cross- in operation(p) decisions that will enable an constitution to achieve its objectives. It expects the systematic identification of specifying the firms objectives, nurturing policies and strategies to achieve these objectives, and acquiring and qualification available these resources to implement the policies and strategies to achieve the firms objectives. Strategic management, therefore, integrates the activities of the various functional sectors of a business, such as marketing, sales, action etc., to achieve organisational goals.Task 12.1 Examination the need for strategical switch in an organization2.1.1 surmiseThe complexity of political, regulatory, and technical miscellanys confronting most organizations has made radical organizational mixed bag and adaptation a central research issue. This article sets out a simulation for agnizeing organizational switch overs from the perspective of neo-institutional theory. The principal theoretical issue addressed in the article is the interaction of organizational context and organizational action. The article examines the processes by which individual organizations retain, adopt, and discard templates for organizing, given the institutionalized character of organizational fields.2.1.2 actThere argon two possible organizational change shapelings that the Nokia utilise in establishing their efforts that falls under the Strategic Planning model. There is various kind of approach and two are picked-up for careful examination. The two models are Alignment type and Scenario Planning Model2.1 .2.1 Alignment ModelThis kind of model ensures the strong alignment among the organizations mission and its resources to effectively operate the organization. This model is riding habitful for organizations that need to meliorate strategies or find out why they are non working. Nokia qualification also choose this model if it is experiencing a large number of issues around midland efficiencies. Overall step rods includeThe proviso class outlines the organizations mission, programs, resources, and needed support. name whats working well and what needs adjustment.Identify how these adjustments should be made.2.1.2.2 Scenario PlanningThis approach might be used in conjunction with other models to ensure planners truly undertake strategic thinking. The model may be useful, particularly in identifying strategic issues and goals.1. Comes with the selection of some(prenominal) external forces and imagining the related changes which might influence the organization.2. For each cha nge in a force, discuss three different future organizational scenarios which might arise with the organization as a result of each change. Reviewing the worst-case scenario often provokes strong motivation to change the organization.2.1.3 chitchat Nokia examined that they need to strategic change for their organization because of the organizations mission, programs, resources, and needed support and several external forces and imagining the related changes which might influence the organization.2.2 Assess the factors that are driving the need for strategic change2.2.1 conjecture2.2.1.1 Political-Legal factorsPolitical and legal systems vary between countries and often gravel a direct impact on organizations by placing boundaries on what they give the gate and back endnot do. Governments tend to stupefy industries such as great fountain supply telecommunications, postal supporters and transport and these regulations differ between countries. Merger activity is increasingly defeat to the approval of rivalry authorities by political and legal factors.2.2.1.2 Economic FactorsEconomic factors such as wage levels, inflation and saki rates are critical in driving an organizations cost base. Electronics companies have switched many production facilities to impoverished wage economies in Asia to cut costs. The business cycle or general state of the rescue is also a major influence on organizational well-being and changes in matchless of the major economies have far-reaching effects.2.2.1.3 Socio-cultural factorsNokia have managed to be quite environmentally friendly and have not done anything that the consuming public have taken huge offence to, they have been very careful about this and this is one of the reasons they are such a popular brand of mobile phones. A key force for most organizations is demographic change, since changes in the number and age of the macrocosm will directly affect the demand for particular products and services.2.2.1.4 Tech nological factorsTechnology is an important environmental influence and is leading much management to reconsider essentially the focal point they operate. Advances in information technology in particular can affect all aspects of a business, from its overall strategic position through to how it manages marketing, design, production and distribution.2.2.2 ApplicationPEST Analysis is done to understand the macro-economic factors that might affect Nokia.2.2.2.1 PoliticalNokia has shifted its manufacturing units to India. Nokia has to be wary of the labor laws and its political implications. For instance, the factory was shut for 2 weeks because of employee strike. In few of the countries, mobile market is still highly regulated and government intervention does take place.2.2.2.2 EconomicalEconomy plays a key post in profitability of the smart phone industry. The demand for smart phone is elastic and hence any economic downturn might hamper the sales of the smart phones.2.2.2.3 Socie talWe do not perceive much of societal impacts to Smartphone industry as society are quite receptive to advance technology. however the rise of the so-called information society has made telecommunications increasingly more important to customer, both in terms of work and leisure.2.2.2.4 TechnologicalSmartphone industry is mark by drastic technological changes. Innovation and new product launches at faster rate are key attributes for success in this industry.2.2.3 Comments Nokia Assess the factors that are driving the need for strategic change by PEST analysis because of PEST Analysis is a useful tool for understanding the strategic change of the environment in which Nokia are operating, and the opportunities and threats that lie within it. By understanding organizational environment, Nokia can take advantage of the opportunities and minimize the threats.2.3 Assess the resource implications of the presidential term not responding to strategic change2.3.1 possible actionResource implications There are severe resource implications to an organisation for not responding to strategic change. The respond should be utilise at the right time.Human resourcesPhysical resourcesFinancial resourcesIf the organisation does not respond to changes, this will affect its entire resources adverselyHuman resourcesTo importanttain a healthy, successful and efficient environment Nokia collaborates with its employees under the main goal to create an environment for all its employees where they can fulfill their potential. Motivation, encouragement and maintaining employees satisfaction and well-being at work are vital for Nokia to perform at its best. As a goods manufacturer Nokia collaborates with its employees within formal and informal networks to allow ideas to be exchanged easily.2.3.2 ApplicationNokia count of all the skilled or unskilled staff for the organization hires to work for them. Nokia do hire highly skilled staff due to its nature of technology work and provid e them with training to keep them update and create opportunities for program baffleers who can work from home to compete in a contender to win prices and even offer them jobs. In this time of recession and economy down turn every Nokia is looking to cut cost by making their surplus staff redundant.2.3.3 Comments Nokia mensurate the human resource implications to their organisation for not responding to strategic change because of the Nokia has highly skilled staff due to their nature of technological work and provide them efficient training program. So Nokia no need to assess the resource implication for their strategic change.3.1 Develop systems to involve stakeholders in the cookery of change3.1.1 TheoryStakeholder analysis is the process of identifying the individuals or groups that are in all likelihood to affect or be affected by a proposed action, and sorting them fit in to their impact on the action and the impact the action will have on them. Stakeholder analysis is a key part of stakeholder management. There are3.1.1.1 Identifying StakeholdersWhen Stakeholders identify as people or organizations that are concerned about, affected by, have a vested interest in, or are involved in some way with the issue at hand. Intermediary community groups, identified during the capacity-building segment, can help identify a broad pool of stakeholders. Though, it is important to discover the informal stakeholder groups and assess their importance.3.1.1.2 Stakeholder MappingMapping stakeholders is a strategic business tool which identifies and assesses the effect of a different individual or group of stakeholders on a company. It examines the power stakeholders can exert, the relative likelihood of them apply that power, and their level of interest regarding the companys activities.The stakeholders in this way are broadly divided into four groupsLow interest/low powerhigh interest/low powerlow interest/high powerand high interest/high power3.1.2 ApplicationNok ia bankrupt stakeholders planning to change by exploitation two methods identify and mapping stakeholders. With stakeholder mapping, when Nokia used in combination with the political mapping methodology, they dont have to be as accurate in determining the levels of interest and power in the first analysis. With stakeholder mapping, Nokia can identify people who dont have much interest in, or power over, their issues and can thus be ignored from further analysis.3.1.3 Comment Nokia should use the mapping stakeholders method for takeing their stakeholders planning to change because of Nokia can identify people, who dont have much interest in, or power over, their issues and can thus be ignored from further analysis of stakeholders change planning.3.2 Develop a change management strategy with stakeholders3.2.1 TheoryStakeholder Management is an important discipline that successful people use to win support from others. It helps them ensure that their projects succeed where others fa il.Stakeholder Analysis is the technique used to identify the key people who have to be win over.CUsersJewelDesktopstakeholder-management-proc.gifIdentify stakeholders The success of the project depends upon the satisfaction of the stakeholders. Therefore, it is necessary to identify the stakeholders before you break out the product. Identifying stakeholders enables a software team to become better decisions and implementation phases of the development process. Document needs Publish the completed, prioritized Stakeholder Needs Documents to each stakeholder. Include a reproduction of the original stakeholder meeting document. Ask for any corrections or changes to their needs within one week.Analysis stakeholders interest Shareholders and employees have a common interest in the success of the organization. High profits which not only lead to high dividends but also job security. Suppliers have an interest in the harvest-time and prosperity of the firm.Manage stakeholders expecta tion Three Managing Stakeholders expectations that are given beneathKnow your stakeholdersKnow what you are suppose to deliver from the prospective of the stakeholdersHold your stakeholders accountable to the realities of the projects.Take action A Stakeholder should take this action in stakeholders management analysis, which is given belowCommunicating with stakeholders and keeping them informed of matters that are likely to be of interest to themObtaining information from stakeholders that will be relevant to the projectManaging the expectations of stakeholdersInvolving stakeholders in all key decisions about the project3.2.2 ApplicationNokia applied develop change management strategy by stakeholders management process. As we discussed on above stakeholders management model, which is helps Nokia to ensure that their change management strategy projects will be succeed.3.2.3 Comments Nokia can use the stakeholders management Model for their develop strategy change management becaus e of this is the technique used to identify the key people who have to be won over. Moreover, by using this model Nokia can identify customers needs and expectation and take action in future for their change management.3.3 Evaluate the systems used to involve stakeholders in the planning of change3.3.1 Theory impedance to change Resistances to Change can occur at the organizational level, group level, or individual level.3.3.1.1 Organizational-Level strength and conflict If change benefits one function at the expense of another, conflict Impedes the change process. Powerful di imaginations, such as IBMs mainframe division, can disrupt change.If sales fall, RD wants funding for product development while sales wants to hire more people. Subunit orientations cause coordination problems and slow decision-making. A high level of task mutuality makes change difficult. It is more complicated at top levels by affecting the entire organization.3.3.1.2 Group-level resistances to changeGroup norms When change results in different task and business office relationships, informalnorms may become invalid, making a new set of norms necessary. People may resistthis.Group cohesiveness, attraction to the group, is helpful, but if it is too high, the group may resist change. The group may work to maintain its position even at the expense of other groups.3.3.1.3 Individual-level resistances to changeUncertainty and insecurity Resistance to the uncertainty and insecurity of change results in inertia. Selective perception and retention suggests that people perceive information consistent with their views. If change doesnt benefit them, they do not endorse it.Habit People prefer familiar tasks and tend to return to original behaviors, making change.3.3.2 ApplicationNokia evaluated stakeholders 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. Moreover Nokias s takeholders Group resistance occurs when members ignore negative information to achieve harmony.3.3.3 Comment Nokia does not have any organizational resistances to change for their stakeholders change management.3.4 Create a strategy for managing resistance to change3.4.1 TheoryStrategies for managing resistance to changeIdentify all parties that have a stake in the outcome? Include a way to get all stakeholders involved in the planning and implementation.remnant in the forefront no matter how maintains Your Focus. Keep the long-term whelmed by the resistance tempting it is to get over.Use opposition as opportunities to invite actually think about the proposed beneath the surface and hear what people changes.Respect your stakeholdersValue inputValidate concernsThat resistance will go away. Include ways to keep Do not ignore, avoid, or hope the planning and implementation the doors of communication open throughout of the change.3.4.2 Application Stakeholders are applied these respo nsibilities for managing resistance to change of Nokia, which is given belowIdentify the stakeholders whose commitment is required.For each type of stakeholder, describe the needed change, perceived benefits and expected resistance.Develop action plans including ones for the stakeholder groups that are not sufficiently committed.One critical group often ignored is higher-level administration they must be included one of the key groups.3.4.3 Comment Nokia can managing resistance to change by using stakeholders strategy for example, stakeholders describe their needs for change, perceived benefits and expected resistances.Task 21.1Discuss models of strategic change1.1.1 TheoryStrategic change is be as changes in the content of a firms strategy as defined by its scope, resource deployments, competitive advantages, and synergy.Hofer and Schendel 1978Strategic change as a subject has for long become a question of importance, within the strategic management field. The reason to why strate gic change is important is because it represents the means through which an organization maintains co alignment with shifting competitive, technological and social environments. Strategic change can though damage existing resources and performance especially among organizations highly subject on human resources these organizational resources decrease the propensity to adapt strategic change, because of new roles, tasks and circumstances.Kraatz Zajac, 20011.1.2 ApplicationNokia developed their organizational strategic change by using a number of mergers and acquisitions (MAs) of other firms with more or less related but different business activities. MA as well as strategic alliances are a means to obtain the necessary capabilities and are meant to improve the overall performance of the firm. Nokia is now gradually shifting from MA to alliances in consecrate to strengthen their core capabilities, and divesting and refocusing its business activities instead of diversifying business activities.1.1.3 Comments Nokia can develop their organizational strategic change by using a number of mergers and acquisitions (MA) process because of MA to obtain the necessary capabilities and to improve the overall performance of the organization.1.2 Evaluate the relevance of models of strategic change to organisations in the current economy1.2.1 TheorySupply chain management ModelSupply chain is operating as efficient as possible and generating the highest level of customer satisfaction at the lowest cost, companies have adopted Supply Chain Management processes and associated technology.Nokia is in a highly competitive market that is very margin/cost fine and equipment companies are less and less able to make enough profit on just the sale of boxes alone. The strategy it has adopted is to move to a service and solutions-orientated model, facilitated by the digitalization of the whole telecoms business. Nokias aim has been to create revenue streams from operating the product for the customer or by providing service contracts.1.2.2 ApplicationNokia Networks has done a great job by using all the best practice approaches to supply chain management model and has applied them to a new country of the supply chain an area which is much more important in the current market economy.Nokia using their supply chain to create differentiation in the market place. With this model they are going to be a leader in the transformation of the industry this company has taken a giant step forward. Nokia Networks operates in a highly competitive global market place where low-cost manufacturers and getting more profit.1.2.3 Comment Nokia can evaluate the strategic change for their organisations in the current economy by the application of supply chain management model because of Nokia supply chain management to create differentiation in the market place, which highly operates the competitive global market place. As which Nokia able to earn more profit.1.3 Assess the value o f using strategic intervention techniques in organisations1.3.1 TheoryStrategic Intervention is a method for assisting people to find empowering meanings for their life circumstances, discover why they do what they do and how they meet their needs in positive and negative ways, the understanding of which helps to promote sustainable change.Tony RobbinsOrganization Development InterventionsOD interventions are plans or programs comprised of specific activities designed to effect change in some facet of an organization. In general, organizations that wish to achieve a high degree of organizational change will employ a full go astray of interventions, including those designed to transform individual and group behavior and attitudes.1.3.1.1 Individual OD InterventionsRole negotiationManagement trainingJob redesignCareer planning1.3.1.2 Team OD InterventionsTeam buildingProcess consultationInter-group team building1.3.1.3 Organizational-wide OD InterventionsSurvey feedbackConfrontation meetingStructural redesignManagement by objectives (MBO)1.3.2 ApplicationNokia used organizational development strategic intervention techniques in their organisations. As we discuss on above individual OD of Nokia implies several things like management training, job design. Moreover team OD implies team building and process consultation. This is the strategic intervention of Nokia Ltd.1.3.3 Comment Nokia should apply individual organizational development strategic intervention techniques in their organisations because of Individual level strategic intervention gives more advantages for the organization. Nokia redesign job and provide management training methods by applying this intervention technique. Thats why this is important for Nokia.4.1 Develop appropriate models for change4.1.1 TheoryOrganizational change is the movement of an organization from one situation of dealings to another. Organizational change can take many forms. It may involve a change in a companys structure, st rategy, policies, procedures, technology, or culture. The change may be mean years in advance or may be forced upon an organization because of a shift in the environment. Organizational change can be radical and alter the way an organization operates, or it may be incremental and slowly change the way things are done. Nokia applied 5p model for develop their organizational change.4.1.2 Application The 5 Ps Model of NokiaPrincipal and ProcessPeople movementPurpose4.1.2.1 Purpose This includes the organizations mission, vision, goals, and objectives, as well as strategies for achieving the vision and mission. Leaders must establish the strategic direction and goals of their organizations as well as the strategies and tactics for achieving them.4.1.2.2 Principles Nokia is the honesty base, ethics, and core values to which employees are expected to make a commitment when they are hired. Leaders of Nokia understand the principles upon which their organizations were founded and upon whic h they currently operate.4.1.2.3 Processes Processes are the organizational structures, systems, and procedures that are 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 procedures. Therefore, Nokia Processes that are well documented and Principles that are well communicated can drive behavior that is necessary to achieve Performance excellence.4.1.2.4 People People are the employees who perform work that is consistent with the Principles and Processes of Nokia to achieve its Purpose. Nokia business leaders understand and can align Purpose, Principles, Processes, and People, they are more likely to achieve Performance excellence.4.1.2.5 Performance Performance encompasses all the metrics, measurements, and expected results that indicate the status of Nokia and are used as criteria for decision making. It is essential that business leaders understand and establish measurement and feedback systems for their organizations long-term survive and profitability.4.1.3 Comment Nokia can develop their organizational change model by using 5ps model because of 5ps model implies the organizations purpose, principal, process, people and performance by which Nokia can achieve their goals and develop organizations structure, producers and performance measurement for strategic decision making. So 5p model is very important for develop organizational change.4.2 Plan to implement a model for change4.2.1 TheoryImplementation of 5p modelImplementation is the realization of an application, or execution of a plan, idea, model, design, specification, standard, algorithm, or policy.The model that we used in our change management is similar to the 5-P Model implemented in this article, These arePurposePrinciplesProcessPeoplePerformanceThis model may be appropriate based on the nature of the change, the culture of the organization, and the personalities and style of the change leaders. The i mportant thing is to use a model that serves as an anchor to the day-to-day vagaries of change. Whether were using the 5-P Model, or any number of other change management models, we can be successful.4.2.2 ApplicationImplementation of 5p Model of NokiaThe main purpose of Nokia is that, to achieve organizational mission, vision and goals by providing their principal like, good customer service, qualities of product supply, cost reduction and profit maximization. Moreover, Nokias Processes are the developing organizational structures, systems, and procedures that are used to make the qualities of products or perform the best services by providing their expert technologies, Employees and market leaders. Performance is essential because the market leaders of Nokia understand and establish measurement and feedback systems for their organizations long-term survive and profitability.4.2.3 Comment The implementation of 5p model of Nokia should apply in the organization because it will show the overview of organizations current objectives, structure and technologies by which company can take further step of change model.4.3 Develop appropriate measures to monitor progress4.3.1 TheoryDeveloping Monitoring progress is about keeping track of how the work with others is going, making sure you are on task and on time. Monitoring progress in working with others involves you considering your progress inmanaging a group activity to enable the group to achieve its goals effectively and efficientlyestablishing and maintaining co-operative working relationships, exchanging feedback and agreeing ways to solve difficulties andMonitoring and critically reflecting on your use of skills in working with others, and adapting your strategy as necessary.4.3.2 ApplicationNokia develop in their organizations monitoring progress by using appropriate measuring tools, which is given belowIdentify Problems Surveys are can be very effective in identify problems areas before they become serious , especially those that are hidden from senior management. reading Lack of proper training is a common cause of dissatisfaction among employees and can lead to more serious problems such as stress.Communication For Nokia to run efficiently good internal and external communications are essential, surveys can provide a method to help organizations to monitor and measure how well an organization communicates.Goals and Objectives Nokia can measure and monitor the extent that the personnel are aligned with the senior managements business goals and objectives.4.3.3 Comment Nokia can develop organizations monitor progress by measuring tools which is discussed on above. Nokia measures organizations current monitor progress by Identify problems, benchmark, training and goals and objective and can take decision for develop planning to monitor progress.