business managment Essay

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Pages: 7

BUS 744 Organizational Change

Assessment 1 Individual Case study : VTI Limited

The need for change in VTI Ltd.
Change is everywhere. In fact change is one of the constant thing there is to ex,kist. For some cases change will be inevitable yet human beings are not always in the same part of a coin. We are different from each other, even twins have their own unique skills and characteristics. We have our own individual differences. Therefore, our outlook towards change varies from one person to another. How people embrace change plays a vital role in the outcome or future of this company. The need for change is crucial following these reasons stated: financial instability due to decreasing sales and not making any profit for the last two years, lack of knowledge and skills regarding online sales, abrupt change with short notice, frustration and resentment of staff, lack of motivation (no salary increase for 3rd year staff), and closed-minded old board members. These problems stockpiled on top of each other and in order for the situation to be turned around, change is/will be required. As the saying goes “You can’t teach old dogs, new tricks.” Well, that’d may be true for dogs but not for humans.
Causes of change (internal and external)
Internal causes of change also known as specific or micro business environment which have controllable factors that might have impact /direct influences on an organisation’s daily operation. The management and employees which belongs inside the organisation named VTI Ltd. are some of controllable factors. Why? The time when they restructured the management team and when they used coercive power against the employees that aren’t prepared to accept the new terms and conditions will be likely made redundant.
External causes of change also known as general or macro business environment on the other hand are uncontrollable factors that might have indirect influence or impact on the organisation. We can use the PESTLE Analysis in identifying these causes. Political factor would be seen with the removal of the “old” senior management. They were given substantial incentive or a generous amount of pay to encourage them to leave. Economical factor would be the cost of leasing their shops for long term duration in order to reduce costs but sales continues to plummet down and for a fact that there’s an existing debt of 7 million and an estimated loss of 4 million pounds. The move to extract the organisation from the lease commitment is another issue that would fall under Legal factors, a penalty of 3 years would be required for this to happen. The age of the “old” senior management and the target market of people who likes the latest music between ages 10 and 20 years of age would fall under socio-cultural factors. There will be no question to what is the technological factor for it will always be an advancement in technology and in this case, even though the former management team had keen interest in music they underestimated the impact of online sales.
Difference between planned change and emergent change
Planned change is something that you invest time planning. Collecting and analysing the pros and cons of this change will be of uttermost importance. It is something you wouldn’t just have implemented over a day or two. Considerations about the factors and underlying cause of problems should be determined first before executing an organized, systematic way of change in the organisation. This might be in a form of conducting surveys and gathering secondary data to be compared to your primary data amongst the people involved may it be from inside or outside the company. For instance implementing an organisational change that is planned takes careful analysis of data gathered and using this to turn an organisation’s weakness into its strengths and possible threats…