Synergetic_Solutions

Synergetic Solutions: Organization Change and Communication COM/530 Synergetic Solutions: Organizational Change and Communication Synergetic Solutions Inc. is a $6 million company in the business of system integration. It has 300 employees working in five locations across the East Coast. Primarily driven by the stagnant systems integration market, Chief Executive Officer, Harold Redd, ventured into the network solutions business of designing and implementing complex computing networks two years ago. Recent accomplishments include an order worth $1.2 million for designing a network and $5 million worth of orders in the works (University of Phoenix, 2002). As a result, Harold Redd has decided to raise the revenues of the network solutions business to 80% of total sales, which equals to $12 million at the end of the next nine months. Growth targets for revenue and measures of employee involvement concerning productivity and absenteeism are set for every quarter (University of Phoenix, 2002). The purpose of this internal report is to identify and analyze the forces of change, potential change models, and resistance leaders of Synergetic Solutions Inc. should expect when working toward the company’s growth objectives. Forces of Change In today’s business environment, change is a necessary requirement to sustain existence. No company can remain particularly stable and expect to succeed. Synergetic Solutions is no exception. Forces act as stimulants to initiate change within an organization (Robbins & Judge, 2011, Chapter 18). They can be internal or external. Internal forces arise from within the company, such as the nature of the workforce. External forces arise from outside the company, but affect internal function. Examples include economic shocks and competition. Exhibit 1 describes three internal and external forces of change for Synergetic Solutions. Exhibit 1 Forces of Change Force | Description | Nature of the Workforce(Internal) | “An interesting situation has developed – a project worth nearly $2 million, which was in the pipeline, has finally come in. Harold says the project is crucial to Synergetic’s success in the network design business. However, you do not have enough skilled employees to handle the project” | Technology(External) | “A crucial technology provider has set up a design unit. Consequently, it has stopped providing technical inputs and has pulled out its on-site technical advisors.” | Competition(External) | “Network architects and solution designers, who were trained at a high cost, are now attractive targets for competitors. Some of these employees have already asked for a raise and promotions” | (University of Phoenix, 2002) Almost every organization must adjust to changes in the workforce. In Synergetic’s situation, the company needs to hire additional individuals with relevant experience, invite training consultants, or offer incentives for improving performance to deal with this force (University of Phoenix, 2002). Technology is continually changing. As a result of one of Synergetic’s technology providers discontinuing services, the company must invest in research, improve employee competencies, or innovate in processes and procedures (University of Phoenix, 2002). Every company is not without competition. Successful companies will adapt to the changing environment. This will require a very flexible workforce. Synergetic must choose to hire individuals with relevant experience, involve employees in the change process, or outsource non-critical tasks and business process (University of Phoenix, 2002). Change Models Organizational development is “a collection of change methods that try to improve organizational effectiveness and employee well-being” (Robbins & Judge, 2011, Chapter 18). The focus is on the subjective ways employees choose to see their work environment. Change is implemented through collaboration and participation. According to Robbins and Judge (2011), there are five values in most organizational development efforts (Chapter 18): 1. Respect for people 2. Trust and support 3. Power equalization 4. Confrontation 5. Participation Leaders in Synergetic need to consider these primary factors to implement a change strategy successfully. The leader must also consider other factors, such as leadership style, motivation, and power. Leadership is defined as “the ability to influence a group toward the achievement of a vision or set of goals” (Robbins & Judge, 2011, Chapter 12). Motivation is “the process that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal” (Robbins & Judge, 2011, Chapter 7). There are many theories of leadership styles and motivation; however, not all are effective for different organizations. Leaders use different power sources as a means of achieving organizational goals. Power is described as the “capacity that A has to influence the behavior of B so B acts in accordance with A’s wishes” (Robbins & Judge, 2011, Chapter 13). Leadership style, motivation, and power are closely intertwined as all are necessary for effective leadership to implement change. Effective communication is necessary to implement any change models. Robbins and Judge (2011) state that “Communications serves four major functions within a group or organization: control, motivation, emotional expression, and information” (Chapter 7). Synergetic must establish formal channels to transmit messages for the models described below. Two organizational development change models the leaders at Synergetic may employ include: Survey Feedback The survey feedback approach is used to assess attitudes held by employees, identify discrepancies among employee perception, and solving differences of change implemented within the company. Everyone can participate in the feedback; however, it is more important the organizational “family” is involved (Robbins & Judge, 2011, Chapter 18). The organizational “family” is the manager directly involved in the implementation of changes and the employee who report to him or her. Data from the survey is calculated and distributed to the employees involved. Data should encourage discussion of the effectiveness of the change. Leaders should be aware of attacks on individuals (Robbins & Judge, 2011, Chapter 18). Process Consultation Process consultation entails an external consultant to assist a company in identifying where a department’s performance can be improved. Consultants perceive and understand work flow, informal relationships among unit members, and formal communication channels so manager may act upon them accordingly (Robbins & Judge, 2011, Chapter 18). They provide insight rather than solutions. For example, the consultant may advise that two departments work closely with one another on daily tasks. It is the responsibility of the manager to improve workflow efficiencies through changing departmental layout. Because the manager develops his or her own diagnosis, the manager better understands the remedy and is capable of communicating the reason for change to the company’s employees (Robbins & Judge, 2011, Chapter 18). Resistance to Change Resistance to change has positive and negative effects on an organization. Resistance may lead to open discussion and debate about changes or an increased use of sick time, higher employment turnover, or the depletion of energy within the organization when it is needed the most (Robbins & Judge, 2011, Chapter 18). There are individual and organizational sources of resistance. Exhibit 2 identifies and explains common sources. Exhibit 2 Resistance to Change Individual Sources | | Habit | Habits are programmed responses individuals rely on during difficult situations. When confronted with change, responding in an accustomed ways is considered a source of resistance. | Security | Individuals with high security needs tend to resist change when safety is threatened. | Fear of the Unknown | Change is often shrouded in ambiguity and uncertainty. Fear is often a result of such feelings. | Organizational Sources | | Structural Inertia | Organizations have built-in selection process and formalized regulations to create stability. An organization’s structural inertia will act as offset against change. | Threat to Expertise | Specialized groups may feel threatened when organizational change affects the need for their expertise. | Threat to Established Power Relationships | Long-established power relationships within an organization may be threatened as a result of a redistribution of decision-making authority. | (Robbins and Judge, 2011, Chapter 18) Leaders at Synergetic should expect to see threats to expertise and established power relationships resistances to change. When attempting to establish a new work processes, employees may seem apprehensive about the team-based structure. These employees are contemplating quitting because they feel the new structure does not reflect their contribution to the company (University of Phoenix, 2002). In another situation, morale is dropping because of a different lack of recognition. Team leaders are upset that they no longer are given acknowledgment of their projects that they manage off-site instead of on-site (University of Phoenix, 2002). A strategy leaders might employ to overcome these areas of resistance is participation. It is difficult for employees to resist change in which they have participated in the solution. The employees who are complaining obviously have the right expertise to make informed suggestions. Implementing the suggestions into the change process will reduce resistance, obtain commitment, and increase the quality of the decision (Robbins & Judge, 2011, Chapter 18). Another strategy to manage these areas of resistance is to build support and commitment. When employees have fear and high anxiety to due changes, offering counseling, therapy, new-skills training, or shorter paid leave of absences may help them better cope with adjustments. Low emotional commitment usually equates to high resistance. Boosting morale important for employees to commit emotionally to the change rather than embracing the status quo (Robbins & Judge, 2011, Chapter 18). Conclusion Synergetic Solutions Inc. should expect to experience at least three internal and external forces of change. Forces include nature of the workforce, technology, and competition. Change models that leaders might employ to account for the forces of change are survey feedback and process consultation. These models should consider the primary factors to implement a change strategy successfully along with leadership style, motivation, and power. Leaders should also expect some forms of resistance to change. Resistances likely seen are threats to expertise and established power relationships resistances to change. It is recommended to use participation and building support and commitment strategies to overcome these areas of resistance. The identification and analysis of the implemented changes at Synergetic Solutions Inc. should help supplement desired growth objectives. References Beebe, S. A., & Masterson, J. T. (2009). Communicating in Small Groups (9th ed.). Retrieved from The University of Phoenix eBook Collection database. Robbins, S. P., & Judge, T. A. (2011). Organizational Behavior (14th ed.). Retrieved from The University of Phoenix eBook Collection database. University of Phoenix. (2002). Organization Structure [Multimedia]. Retrieved from University of Phoenix, COM540 - Communication for Accountants website.