Sherman_Computer_Repair_New_Direction

Sherman Computer Repair New Direction MMPBL/550 July 11, 2011 Niraj Kohli Sherman Computer Repair New Direction Change is necessary for any organization that wants to remain a competitive force in the industry. In fact, today’s organizations are faced with rapid change that is unprecedented. Globalization has increased the markets and opportunities for more growth and revenue. Companies such as Sherman Computer Repair must revolutionize their organizational structure and design to keep up with other companies. For example, Sherman Computer Repair is a small company in which they desire to become a larger company that not only repairs computers. Synergistic Solution, Inc.’s decision to develop into a network assembly rather than a computer assembly is prompting Sherman Computer Repair’s decision to become a computer assembly company. However, in order for Sherman Computer Repair to transition they must look at creativity and innovation within their company. According to Jones, “innovation is the process by which organizations use their resources and competences to develop new or improved goods and services or to develop new production and operating systems so that they can better respond to the needs of their customers” (2004, p. 403). Therefore, innovation is crucial for Sherman Computer Repair to change or transition to a computer assembly company. This may require the company to restructure their current business and also include new equipment, new technology, and new processes. Not to mention, following an innovative path will aid Sherman Computer Repair’s effort to develop effective strategies regarding their new vision. More important, the company will need to analyze its strengths and weaknesses to determine which changes need to be made in terms of restructuring their organization. Hence, research will be conducted regarding Sherman Computer Repair’s organizational design, external environment, talent recognition, and the company’s barriers to change. Sherman Computer Repair Organizational Design Sherman Computer Repair’s organizational design in an important factor in terms of revamping the business. The company currently has three different locations in which customers can bring in their computers for repairs. In each of these three locations the company has a receptionist, a manager, and three computer technicians. Sherman Computer’s also performs home service calls, which they use an additional 12 technicians that are employed by the company. Our text mentions various organizational designs and Sherman Computer’s currently operates with a functional design. A functional design is a subunit or it sometimes referred to as a group working together. Jones defines functional structure “as a design that groups people on the basis of their common skills and expertise or because they use the same resources” (2004, p. 160). For example, at Sherman Computers employees have different jobs, but their skills are the same. These skills include knowledge, tools, and techniques used to perform their job. Furthermore, a functional design is hierarch-based structure in which barriers such as communication and coordination have an effect. For instance, research shows that organizations with a functional structure struggle with communication between the subunits or functional groups and as a result it prevents initiating new technologies (Jones, 2004, p. 163). Therefore, these barriers can prevent Sherman Computer from reaching their goals and not to mention prolong their development of innovative technologies. Fortunately, to avoid communication problems that can surface organizations try to find new or better ways to integrate the functions of an organization. Sherman Computer Repair could also struggle when it comes to balancing centralization and decentralization. Currently the company operates using centralization of authority. However, if the organization is able to expand the company’s authority will become balanced because managers will acquire a heavier workload. As a result, employees will have more input on decisions made within the organization. Even though employees are likely to become involved with the decision-making process, there is a risk employees may resist making some decisions. Sherman Computer Repair can prevent this from happening by making employees and managers accountable for their actions. Differentiation is another possible barrier for Sherman Computer Repair. “Differentiation is the process by which an organization allocates people and resources to organizational tasks and establishes the task and authority relationships that allow the organization to achieve its goals” (Jones, 2004, p. 95). Since Sherman Computer Repair is a small organization, the division of labor is simple, but the company can experience difficulties in this area with its new direction. For example, the company’s new direction consists of company growth, which will cause the division of labor to become more complex. Thus, if Sherman Computer Repair is going to experience success managers must be able to balance vertical and horizontal differentiation. Sherman Computer Repair External Environment Another critical factor for Sherman Computer Repair’s success is analyzing their external environment. All outside factors that may affect an organization make up the external environment. An organization’s external environment has three components such as the remote environment, the industry environment, and the operating environment. The remote environment for Sherman Computer Repair is the social, technological, economic, ecological, and political factors in the United States market. Sherman Computer Repair’s operating environment includes customers, labor, competitors, and suppliers; whereas, the industry environment consists of entry barriers, buyer power, supplier power, substitute availability, and competitive rivalry (Pearce & Robinson, 2005, p. 150). Furthermore, the external environment of an organization has significant impact on an organization’s growth and survival. Even though an organization has little or no control over its external environment, an organization must constantly monitor and adapt to external changes. In fact, a proactive or reactive response will lead to a significantly different outcome. External environment is very important when it includes external boundaries. “External boundaries are barriers between firms and the outside world – principally suppliers and customers but also government agencies, special interest groups, and communities” (Ashkenas, Ulrich, Jick, & Kerr, 2002, p. 11). According to Ashkenas, Ulrich, Jick, and Kerr when there are several customers or suppliers, one may be played off against another (2002, p. 11). Therefore, boundaries are important for Sherman Computer Repair to consider because they have various customers and suppliers. “Geographic, or global boundaries exist when firms operate in different markets or countries (Ashkenas, et al., 2002, p. 11). Thus, geographic boundaries are also important for the company to consider because this will aid Sherman Computer Repair’s new goal of moving into new markets such as computer assembly. Not to mention, Synergistic Solutions, Incorporated and Sherman Computer Repair share the same industry, and therefore, need to develop a relationship when it comes to geographic boundaries. In fact, it is essential for the company to determine how it is going to adapt to this change and realize that change is a critical part of their new vision. Hence, these changes will allow Sherman Computer Repair to remain a competitive force within the market. Sherman Computer Repair Talent Recognition Recognizing talent within the organization will be another key factor in determining Sherman Computer Repair’s success. For instance, Synergistic Inc. is composed of immense talent when it comes to innovation, which is something that Sherman Computer Repair needs to focus on so they can become successful. Fortunately, Sherman Computer Repair has good talent that will allow them to expand. Not to mention, once they expand the company will add more talent to their pool of employees. More important, recognizing talent will have a huge impact because it will increase motivation throughout the organization. Furthermore, management will need to consider talent recognition within the organization because it will ensure a smooth transition. However, there is currently no incentive or rewards program at Sherman Computer Repair. Some of the most important tools that are available to a company in terms of performance management are those that include rewards and incentives. Therefore, Sherman Computer Repair needs to concentrate on goals that can be met by employees. In fact, these incentives and rewards can be divided into groups or given on an individual basis. On a more important note, rewards and incentives will work toward motivating employees. For example, Purina One Pet Foods offers a quarterly bonus, which is recognized as a PIP bonus. This is a companywide bonus to ensure all employees are included and is based upon the hours worked by the employee during that quarter. Sherman Computer Repair can do something similar because it will motivate employees. Plus, it will help employees focus on their duties and performance. In addition, an incentive program similar to Purina’s will help Sherman Computer Repair move one step closer to success because employees will become more committed to performing their best for the company’s sake. Furthermore, Sherman Computer Repair’s expansion can benefit the surrounding community in terms of offering more jobs. Other benefits of the company’s expansion include gaining more market territory and also being the number one company in their industry. However, the company will encounter challenges in determining how to manage current employees, especially with all of the changes facing the company. If this is done effectively and management creates incentives and rewards Sherman Computer Repair will increase motivation. Hence, the organization will more likely achieve success with the new innovation. Sherman Computer Repair Barriers to Change Although Sherman Computer Repair is looking forward to change within its organization, management must be prepared to deal with barriers to change. In fact, several barriers that Sherman Computer Repair can face are that management will not be equipped to manage new ideas. According to Davila, Epstein, and Shelton, “organizing for innovation continues to be challenging for many companies” (2006, p. 87). These authors also mention that in small organizations, innovation usually happens as a natural occurrence through the insight, talent, and interaction of a small group of people (2006, p. 119). They further contend that “many large firms have struggled and, by their own description, failed in attempt to integrate innovation into their organization” (Davila, Epstein, & Shelton, 2006, p. 87). Therefore, Sherman Computer Repair will need to develop strategies that will help them become innovative as they experience company growth. Experiencing innovation on a daily basis will become another barrier for Sherman Computer Repair, which means managers may not have the right mindset to support innovation on a day-to-day basis. Taking this risk means that they have to work with everyone and treat employees as though they are part of the innovation and creativity process. According to Davila, Epstein, and Shelton, “rejuvenating the innovation process requires a significant change in mindset, requires support from top management, and a reallocation of resources” (2006, p. 62). One way Sherman Computer Repair can prepare for various types of innovation is to create platforms. These platforms should contain several elements such as the people hired to work within their organization. Furthermore, those hired must possess creativity and must share similar goals. In essence, this would help Sherman Computer Repair reach their goal to expand the company. Sherman Computer Repair’s team approach is another barrier to change. For instance, the team approach requires a tremendous amount of time and proper resources. Not to mention, the team approach may require Sherman Computer Repair to host more meetings, thus taking away from production. Decentralization is also associated with Sherman Computer Repair’s team approach in which teams may take away from the goal and commit to that will benefit their teams, but harm the organization as a whole (Jones, 2004, p. 215). Therefore, Sherman Computer Repair can minimize these infractions by hiring skilled managers. Conclusion In today’s society change is necessary no matter what type of business industry the organization is a part of. Transformation is an ongoing process for organizations that desire to maintain their competitive edge. Not to mention, having the proper strategy to maintain how business functions work and how they can become advanced is key to company growth. Sherman Computer Repair is faced with several changes, which will impact their organizational design, external environment, and rewards and incentives program. Even though most of these changes are positive, there will be resistance from employees. However, Sherman Computer Repair must make these changes so that they can be successful. The benefits from such changes include more incentives and rewards and more jobs available to the community. An important factor for Sherman Computer Repair to consider is that they need more people to help with the creativity and innovation. By doing so, this will aid the organization transition to a different market. Therefore, Sherman Computer Repair employees and top management need to be supportive of the decision to expand. Not to mention employees and top management need to provide input regarding future decisions that the company is looking at making. In turn, this will increase motivation among employees because they will feel a part of the organization’s decision-making process. Furthermore, these changes will impact the transformation process and; thus, management needs to be prepared to help employees accept these changes. Hence, Sherman Computer Repair’s management team’s ability to work with employees will make the transformation process a smooth one. References Ashkenas, Ulrich, Jick and Kerr (2002). The Boundaryless Organization: Breaking the Chains of Organizational Structure, 2ed. Retrieved July 9, 2011 from the University of Phoenix rEsource MMPBL 550 – Creativity, Innovation, and Organizational Design Course Website. Davila, T., Epstein, M., and Shelton, R. (2006). Making Innovation Work: How to Manage It, Measure It, and Profit from It. New Jersey: Pearson, Education, Inc. Retrieved July 10, 2011 from University of Phoenix rEsource MMPBL/550 – Creativity, Innovation, and Organizational Design Course Website. Jones, G. (2004). Organizational Theory, Design, and Change. New Jersey: Pearson-Prentice Hall. Retrieved June 9, 2011 from the University of Phoenix rEsource MMPBL/550 – Creativity, Innovation, and Organizational Design Course Website. Pearce, J. and Robinson, R. (2005). Strategic Management: Formulation, Implementation, and Control. 9th ed. New York: The McGraw-Hill Companies. University of Phoenix. (2010). Human Relations and Organizational Behavior: Organization Structure, Synergistic Solutions Scenario. Retrieved July 8, 2011 from the University of Phoenix rEsource MMPBL/550 – Creativity, Innovation, and Organizational Design Course Website.