Question Tag: Organizational Change

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  • 4 Marks

MA – Nov 2021 – L2 – Q2b – Models of evaluation Quality

Identify challenges in developing Business Process Re-engineering (BPR).

b) Technology is what moves the wheel of competition. For example, banks have moved away from the cumbersome processes of cash deposits and withdrawals over the years. In fact, with some banks, customers can transact business in the comfort of their homes through internet banking. This is an aspect of Business Process Re-engineering (BPR).

Required:
State FOUR (4) challenges to be faced when developing BPR. (4 marks)

Challenges to be faced in developing BPR:

  1. Radical Change May Be Too Expensive: Implementing BPR often involves significant financial investment, which can be prohibitive for many organizations.
  2. Radical Change May Be Too Risky: The uncertainty associated with BPR can pose a risk to the stability of the organization, potentially leading to failure.
  3. Overemphasis on Technology: Focusing too heavily on technology can lead to neglecting other important aspects, such as human resources and organizational culture.
  4. Focus on Cost Reduction: BPR may prioritize cost reduction over other critical factors, such as quality and customer satisfaction, which can negatively impact the overall success of the process.
    (4 marks)
  • 10 Marks

CSEG – May 2016 – L2 – Q4a – Strategy evaluation and control

Discuss the importance of effective communication and strategic leadership in successful strategy implementation, focusing on their roles in organizational change.

During strategy implementation, important management issues need to be reviewed for their appropriateness for the new strategy. Many organisations fail to achieve their strategic objectives not because they do not develop the right strategies but because many issues are not resolved during the implementation. They may not have the right organizational structure, a fitting culture, an efficient leadership while communication may be poor.

Required: Discuss the importance of each of the following in successful strategy implementation:
i) Effective communication (5 marks)
ii) Strategic leadership (5 marks)

Effective communication

The role of communication during strategy implementation is very critical to the implementation of strategy. Effective communication is needed for successful strategy implementation.

Communication is effective when it is directed to appropriate people who need to make certain decisions or use it to perform their routine tasks. Furthermore, it must be accurate, complete and timely and must convey meaning in a cost-effective manner. (1 mark)

(i) Strategy has to be communicated to all stakeholders. It is important that proposed strategy is known and understood by all especially managers and employees. Understanding the strategy will enable them to accept their roles and become committed to its implementation. Inadequate information on adaptive changes, insufficient instructions and poor feedback on performance can reduce the success of strategy.

(ii) Communication is required for planning, coordination and control.

  • Management decision-making requires data for planning. Managers are at the center of a communications system, providing or receiving data planning and implementation.
  • Interdepartmental coordination depends on information flows. All the interdependent systems for purchasing, production, marketing and administration can be synchronized to perform the right actions at the right times to cooperate in accomplishing the organisation’s aims.
  • Through effective communication, employees receive instructions, rules and procedures in order to help them perform their tasks. Knowing what to do and why motivates and challenges them to their tasks and makes them more effective.
  • Distributors and customers must be aware of changes in product characteristics and new products being introduced into the market. The organization must communicate the appropriate information on these issues to them in order to encourage the storage and use of the modified or new product.
  • Shareholders must be informed of the introduction of a new strategy particularly as this may affect their dividends. The acceptance of the strategy by shareholders means that management has the authority to use their money in a desired manner and account for it.

Strategic and effective leadership

Leadership involves influencing others to behave in a desired manner. Strategic leaders are needed to drive the organization towards the achievement of its strategies. Among others, strategic leaders must possess social skills, entrepreneurial skills and must be visionary. (1 mark)

Their importance in strategic management evolves in the following functions: i) They clarify the strategic intent of the organization by helping stakeholders to embrace change. They do this by setting forth a clear vision for the organization. ii) Leaders shape and refine the organizational structure and make it function effectively to accomplish strategic intent. iii) Leaders also shape organizational culture. They promote values and beliefs that are useful to the current strategy. iv) They inspire confidence and energize their followers to enthusiastically achieve the organisation’s mission. v) They assign responsibilities, allocate resources and supervise the performance of employees in a manner that helps the organization to achieve its strategic objectives.

  • 6 Marks

BMIS – Nov 2016 – L1 – Q2a – Operations strategy

Identify reasons for employee resistance to the implementation of Total Quality Management (TQM).

Your company has implemented a Total Quality Management approach (TQM), but this has been resisted by most of the employees. State THREE reasons that might have accounted for such resistance. (6 marks)

  • Lack of consistency of purpose: There may be a lack of consistency of purpose for the implementation of the total quality management concept.
  • Overemphasis on short-term benefits: If there is too much emphasis on short-term benefits for implementing TQM, it may lead to resistance.
  • Inadequate preparation and training: If management fails to prepare the employees through training before the implementation takes place, this can lead to resistance.

(Any 3 x 2 marks = 6 marks)

  • 12 Marks

BMIS – Nov 2020 – L1 – Q3a – Organisation culture in business

Describes the six key elements of the cultural web that influence corporate culture.

Mr. Mensah, the newly appointed Managing Director of Akonu Ltd, is not happy with the current corporate culture because, in his view, it does not support the strategic choices being pursued by the company. Mr. Mensah is determined to change the corporate culture, and he intends to achieve this through investigating the cultural web of the company. He has approached you for advice in this direction.

Required:

State and explain to Mr. Mensah the SIX (6) key elements to be investigated to achieve this purpose.

Key Elements of the Cultural Web:

  1. Routines and Rituals:
    Routines are “the ways things are done around here.” Individuals get used to established ways of doing things and behave towards each other and towards ‘outsiders’ in a particular way. Rituals are special events in the ‘life’ of the organization, which are an expression of what is considered important.
  2. Stories and Myths:
    Stories and myths are used to describe the history of an organization and suggest the importance of certain individuals or events. They are passed by word of mouth and help to create an impression of how the organization got to where it is. It can be difficult to challenge established myths and consider a need for a change of direction in the future.
  3. Symbols:
    Symbols can become a representation of the nature of the organization. Examples of symbols might include a company car or helicopter, an office or building, a logo, or a style of language and the common words and phrases (‘jargon’) that employees use.
  4. Power Structure:
    The individuals who are in a position of power influence the organization. In many business organizations, power is obtained from management positions. However, power can also come from personal influence or experience and expertise. The most powerful group within an organization is most closely associated with the core beliefs and assumptions in its culture.
  5. Organization Structure:
    The culture of an organization is affected by its organization and management structure. Organization structure indicates the important relationships and so emphasizes who and what are the most important parts of it. Hierarchical and bureaucratic organizations might find it particularly difficult to adapt to change.
  6. Control Systems:
    Performance measurement and reward systems within an organization establish the views about what is important and what is not so important. Individuals will focus on performance that earns rewards.

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