Business change and transformation is inevitable in the current highly competitive market. An example is the case of the American companies in which at least 84% of them underwent at least one major business transformation (Romano, 1995). Careful management of change as well as planning and implementation is important in consideration of the high rates of failure of management of change (Spector & Beer, 1994). Computer assembly is a field dominated by innovation. Therefore, moving into this field requires high innovation as the key survival to production of new products in the market. In particular, the computer market assembly be dominated by large corporations, which have already demand in the market, and therefore any entrant into this industry must demonstrate high ability of innovation so as to offer products special and peculiar. There are many recommended classes or types of changes but Flood (1995) has classified them in four dimensions, namely, politics, design, culture, and process changes.
The change from computer repair to computer assembly may not be as easy as the terms imply. Inside the strategy is the need to align the staff and physical resources to meet the present needs and demands. The physical limitations to this change exist, for example financial limitations, but also the human resources would need to have change in regard to size of staff, the existing culture, professionalism, and experience. On the realization of a challenge and a means to overcome synthesized, change in the organization to accommodate the new perspective is important. Change has to do with the external and the internal environment of the company. Organization strategies of bringing about change are very important because they determine the success of implementing these changes. This is because the management may face resistance to changes within the organization from the staff because of the already existing organizational culture. In this paper, the challenges to the changes within Sherman company and how they can be overcome.
Sherman Computer Repair Organizational Design
The current organizational design deals with the repair of computers and emphasizes on that field. Computers from customers are repaired or restored either by replacement of parts or repair or any other problem shooting mechanism. The workforce at the company therefore comprise of technician who are well versed with computers and computer parts. The company deals with other suppliers in which they arrive at their spare parts needs for repair. The expertise must therefore be well versed with different types of components available in the market, because there is no specialization of the firm to a particular brand. It means that on changing the business line, they will still employ these technicians in the processes used to repair computers.
Sherman Computer Repair External Environment
External environment affecting a company are difficult to control and sometimes avoid because they relate to the issues outside the jurisdiction of the organization. Therefore, it is imperative for an organization to identify the external environment it is facing in relation to its present and future position in the market. This identification is important because it leads to the organization designing strategies that can assist it to cope or survive the challenges presented by the external business environment. External business environment relate to factors as inflation, imports and exports, exchange rates, demand, supply, money, and interest rates. These influence the market of the commodities to be supplied or be bought. The importance of the social, political, legal and technological aspects of the influences also can be perceived (Mitton, 2006).
The computer market is dominated by several competitors amidst growing demand for the equipment. In particular, the rise demand of the computer usage in areas in which it had not received massive welcome, as in the developing nations has had an impact in the demand of the equipment. This includes computer for corporate as well as individual usage. The company has a weakness relating to the new product line in that it will have to establish new market for the new commodity line. This is amidst the challenge posed by the already existing competitors who are well known. However, some strength in relation to the new product line venture is that the company already has competent technicians who will also be employed in the new business line. The demand for computers has taken also different shift in history, with the increase in demand for laptop products as compared to desktop facility (Nystedt, 2006). Supply of these items has also increased overtime with the establishment of many companies in this field. This has brought about competition in the market. Competition poses a threat to new entrants into the computer assembly business, such as Sherman Computer repair Company. Therefore, in preparing to enter the computer assembly business, Sherman Company should be aware of the current environment as relates to competition due to large supply of computer goods. In this respect, the market analysis should help the company to launch its products in markets in which there is lesser and lesser competition. In addition, because of the complicated nature of technology, a systematic consideration of the supply market in terms of the available and demanded technology is very important. The company should aim at providing the commodities, which are demanded, and careful analysis can help them determine the resources (including human resources) necessary for production of these commodities. The idea of supply and competition cuts across the nation boundaries in the current globalization trend in which the market has been opened up to allow companies operate anywhere where they could. Globalization represents the elimination of trade tariffs, market barriers, and establishment of market treaties and regulations that favor companies to access more market in other countries. This has led to high competition even in the local environment especially for small and medium-sized companies. The trend of globalization has pitied large-sized firms that operate globally because they have competitive advantages such as offering cheaper commodities in the market. Analysis of the market in which to launch the operations or sell commodities is important because of the effects of competition and demand. A wide rate of confusion, contradictory theory and approaches and recipe characterize Management of Change methodology today, and this calls for improvement of the latter (Burnes, 1996).
Sherman Computer Repair Talent Recognition
Sherman Company currently has a talent that has gone along way in helping the company to establish market in the computer world. In particular, computer repair has presented the workforce such as technicians, with wide and fast experience that may be applied well in the new business agenda. Because computer knowledge is important in assembly, these technicians will be helpful in cutting the production costs as the company will not need to overhaul the whole of the labor force. Because the new business specialization will still be in computer hardware, the organizational structure is what would require major changes, but the organization. However because of the high competitive nature of technology, the company will need to seek professionals who are well acquainted with the current or most recent technology in the market or the trend in the computer technology. This will help it to offer competitive products in the market. In addition to the sourcing of the professionals is knowledge on how these professionals can produce at their best to help the company.
Many companies have encountered challenge in the area of organizing for innovation. More important is the issue of wiring the system to ensure that change is effective and complete. Managers need to develop a wired system that incorporates four components; shared mindsets, have a cumulative approach, develop a sustained and visible management commitment through constant actions-big and small, and making sure that healthy hierarchy concepts are aligned with business strategy. The challenge remains to ensure that the innovation is built and embedded into the organization (Davila, Marc & Robert, 2006). A firm can be considered to have fully adopted change, if that change is embedded and working well within the structure. Right people and right organization is the key to scaling any innovation. It is possible to flourish in focus to innovation by ensuring that the management builds an innovation market characteristic of supply and demand in which ideas can be recognized, evaluated, and even financed if viable. This will ensure that viable innovations finally find their way into the market. The management should establish a balance between creativity and value capture. In essence, the management should strive to see that strong internal market forces are what drive innovation because they can overcome many organizational barriers (Davila, Marc & Robert, 2006). Therefore, Sherman should ensure that, it fosters components that empower the employees to become creative, in addition to searching for talent. These particular components include research, intuition, experimentation, seizing of opportunities, thinking outside the box, finding, and doing it right among others. It is important to know that innovation is facilitated by the ability of the employees and professions in the fields involved, but the importance of equipment and provision of facilities and the conditions necessary for innovation is also important in considering organizational change. Because repairing is different from assembly, the company has a task in making sure that its employees, technicians and engineers are encouraged to come up with innovative product designs. To empower value creation, the company management must bring in changes that encourage precision, buying/selling of ideas, avoid major risks, established well-calculated trade-offs and get the products into the market place, among others (Davila, Marc & Robert, 2006). Change in the current 21st century business climate is inevitable, and organizations are supposed to either change or die (Beer & Nohria, 2000) Timely management of change is important. The management should learn the timing of innovations as well as value addition to the innovation. In particular, they should understand and establish channels that will allow growth of innovations from initial stages in which concern for value addition (say faster processes, cheaper delivery of services, for example) is not given high or keen attention as compared to the growth stages (Davila, Marc & Robert, 2006). As relates to Sherman, the structural and organizational change must allow these processes to take place. Once new products have been brought up, the company must aim at developing these computer product designs to be cheaper, for example through use of different materials to build them and material combinations. In the growth stages, the company also would put effort to make sure that the processes of production of new designs are faster. The issue of providing a chance to all people to participate in the innovation processes is important, but that the management must understand that all people cannot participate equally to innovation processes. To organize the innovation internally within an organization, it is important to consider the different theoretical organization models as well as the innovation platforms that support the units of the business.
In an effort to encourage promoting radical innovation without hindering incremental innovations, the organization can make good use of Corporate Venture Capital (CVC). Organizations such as Sherman need to come up with a system that will allow evaluation of potential innovations as would external venture capital firm. An organization can provide a system that encourages handling of different types of innovation and operations projects by different multiple groups who is essential for promotion of different cultures and processes for innovation needs. This is done through the implementation of Ambidextrous Organization model of organization (Davila, Marc & Robert, 2006). Management of Change (MOC) can be viewed as a weak in managing interactions, critical reflection on decision-making process, and the use of multiple methods, and these weaknesses can be addressing by use of critical systems perspectives. However, the latter too flops off in the addressing of specific dimensions of organizational change. The solution of bringing the two together to result in a stronger systematic framework for management of change has been proposed (Cao, 2001).
Sherman Computer Repair Barriers to Change
It is not easy for a company to make even some of the changes that may at times be perceived as minimal. Specifically, changes relating to the commodity on offer present new challenges in terms of the organization workforce, market, supply, among other things. Market changes will not be easy because a sudden change would mean disruption of company flow of income. Changes in the product also present technological adoption that may not have been present, and this comes with the challenges to innovate, which goes hand – in – hand with challenges of selling the new commodity at the market.
Management of change within an organization is of particular interest in the theory of change within organization. This management may be the work f one individual or more. Change of a business strategy may not affect business operations, but in which there is a change of business specialization such as entry into computer assembly from repair, may require change of goals and objectives in the new line of performance of business. In addition, major changes may lead to overhauling of the processes, procedures, and structures. An effective change must be managed and well executed. New goals and strategies would be forged by the vision of the organization. Sherman needs to outline the vision of the organization toward achieving markets for the new commodities, projected sales and how to become a global organization in line with the new market portion. Management and acquire of knowledge and skills to aid the business represent a big challenge to an organization. In particular, the company should understand what it wants, and how to acquire what it wants. The professional workforce should be competitive in terms of innovation and knowledge as well as specialization in the field considered.
Change of the workforce in terms of the culture may be difficult if careful measures are not taken into consideration. More specifically because culture and other changes within an organization may be achieved within time, the leaders need be conversant with the theory relating to organizational change. The following are human and organizational factors that could influence change within Sherman Computer Repair Company in its endeavor to change from computer repair to computer assembly.
Alignment of organizational practices and business goals is a necessary component and managers need to ask and answer on issues relating the organization’s business goals and practices to discover the logic of this alignment. These questions relate to what the goals the organization seeks to achieve in the future. The organization management must see the vision, aspiration, mission, and strategic intent of the organization. In particular, a company as Sherman need to see clearly the technology they require in the new business venture to gain a competitive edge, the products that shall be delivered, the markets to be explored as well as the financial objectives. The challenges to changing the goals can be conceived in the fact that the organization has been operating already and may need to change the goals and still make sure that the attitudes of the employees are aligned to accept the new goals developed. Otherwise, there should be a substantial change because there is already a product, workforce, and market among other changes. The second consideration relates to the capabilities the organization must have in meeting the goals already established. The firm will need to harness the best resources, whether physical, human resources, financial or professional advice to succeed. Skilled financial analysts, auditors, system designers, engineers and competent technicians are important in this process. Another challenge lays in the adoption of the new staff into the work structure of the company, and reorganization of the work staff. The challenge brought about by the need to choose the right technology, information system and other facilities cannot be overemphasized in the face of much competition, and many choices. The need to look for an efficient workforce that is competitive, each with speed, predictability, dependability, responsiveness and ability to learn, brings yet another challenge because they must be sought from a diverse labor force. The management needs to come up with changes in the organizational initiatives that will build capabilities of staff and the facilities required. One of the problems that Sherman Computer Repair Company may have to come into terms with is the fact that the computer market is characteristic of consumers changing from one technological innovation to the other. This is in response to the highly competitive computer technological innovations coming up even before maturing of the previous one. The company must acquaint itself with the technological innovation management and understand the cycles of technological innovations so as to know which route to take as relates to the adoption of emerging technologies.
In conclusion, Sherman Computer repair new direction to change from computer repairs to computer assembly will be followed by organizational restructuring to focus on new goals, new organizational structure, alongside development, or strengthening of the existing workforce. In particular, the company may need to realign to new goals and objectives that will meet the new market coverage, demand, product line, strengthened workforce, among others. Product change will mean change of market, too although some of the strengths that the company has includes publicity in the area of computer specialization. Other strengths of the company include the availability (already) of the existing qualified technicians, and other employees, and these will be useful in the computer assembly business. The company will be faced with among other challenges, high competition in the market, for example competition from the globally-present organizations that have already vast market coverage, powerful workforce, efficient management, and already with other competitive advantages such as the ability to offer computer products at cheaper prices (Guangming, Steve, & Brian, 2003). The opportunities to exploit include already existing high demand in computer products, but that the company will need to analyze and launch operations in which there is relatively high demand and lesser competition. The weakness the organization has is that among others, it does not have enough competence and market in the product line it want to venture in.
The company will also be faced with other challenges such as reorganization and restructuring of its workforce to meet new product demands. Establishment of all these changes may meet resistance within the organization staff, who may be already addicted to the current organizational culture. The management must be able to manage changes such as the required innovation in the new product line. The computer technology is a highly innovative field and the company must organize itself toward that. In particular, the company must source competitive staff, in addition to providing the proper climate for the development and nurturing of innovations to make sure it remains competitive. The management needs to ensure that the company sustains competitive innovations as well as nature the introduction of new ones.
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