AUTOMAKERS

CHANGE
Revolutionary change (type of change)
Planned: New culture and management adaptation (transform entire
organization)
Emerge as a response to significant technological and environmental changes.
Change a new business structure and change of culture
Change Plan
PROCESS
1) What is
causing change

2) Who should be
responsible for
the change

EXAMPLES
External

Loss of market share, decline in profits and sales

(import cars)

Shift in market taste and preference (environment

conscious)
Internal

Poor management style

Low motivation and job satisfaction level (poor

culture)
Automakers has been steadily losing market share to its
rivals with decline in profits and sales in the recent years.
The reviving of the company depends solely on the
successful introduction of two new environmentally friendly
cars in the next three years. The improvement of both
productivity and quality level in the production are critical in
order to revive back the company.
The managers as the problems comes from them
Authority is needed to enforce changes and this can only
come from the managers themselves

3) What needs to
be change

The attitude of the authority: make workers scared, not

solving problems
The coordination between worker: competition among them
cause quality issues
The culture: people are not honest, scared to tell the truth,
do not want to resolve problems

4) What type of
intervention is
needed

One of
Unfreeze: Stop the current way of management and culture
Change: Change the current way of management and culture
Refreeze: stick to the current way of management and
culture

5) How will you

Introduce a participative management program

implement the
change

6) How will you

monitor result
review change
and feedback

Designed a multi-level committee structure

Level 1, level 2, level 3 each level had a more
specific mandate
Level 1 managers delegate authority down the line
Level 2 managers expected to carry out a socio
technical analysis of the production process to
determine where problems arose and find way of
fixing them
Level 3 committee were expected to resolve multi
functional problems where possible or pass to level 2
managers
Monitor result in term of how quality of products and
operations coordination were effected from the
changes being implemented
Review the quality and working environment to what
is expected to occur. Do things happen the way we
want it to?
Feedback from the employee and managers should be
dealt with to ensure everyone is comfortable with the
change and willing to implement it properly

6 Silent Killers
1. Management style is either too top down or too laissez faire
-

management is very autocratic

employees are not allowed to speak out, give opinions or question
anything
employees were scared to admit faults, fix things as they will be blamed
for it
HOW IT IS ADDRESSED
Participative management program employees were given more
attention and their voices are heard more. Teach employee to be
independent not scolding them

2. Unclear strategy/conflicting priorities

-

Priority quality or cutting down costs? Or own-shift performance?

In order to cut down costs low quality of products; cheating, lying and
stealing
Compete between shifts sabotage others within the company itself
(lower quality)
HOW IT IS ADDRESSED
Employees were let known of the ultimate objectives better working
environment and high quality product
No need to compete between shifts (coordinate workers appropriately)

3. Ineffective senior management team

-

macho-aggressive style of management

too desperate to cut down costs while keeping their job - cheating, lying
and stealing
HOW IT IS ADDRESSED
Managers were given more understanding of the new management style
get them involved in the change
Senior managers give good example in the change effort (enhance
relationship)

4. Poor vertical communication

-

intensive verbal abuse (yelling and screaming), dramatic confrontations

and figuratively beating up on offenders
hitting somebody over the head with a 2x4 block of wood
employees not allowed to ask questions or give feedback
HOW IT IS ADDRESSED
Managers become more typical managers less shouting, more
democratic leadership style used

5. Poor horizontal communication

-

afraid of being laid off - cheat and steal, never assume responsibility
accuse someone else for their own mistake
different shift compete intensively with each other (want others to look
bad)
HOW IT IS ADDRESSED
new roles, responsibilities and structure to get people work together

6. Inadequate skills at lower levels

-

Level 2 managers does not know how to handle data given to them
Felt being left out by upper managers
Culture doesnt train employee to be a good skilled worker
HOW IT IS ADDRESSED
Level 1 managers educate level 2 managers to be able to locate and solve
problems themselves

CULTURE
Organisational culture A system of shared meaning within an organisation

The way we do things around here

The customary and traditional way of thinking and doing things which is
shared to a greater or lesser degree by all members and which new
members must learn in order to be accepted into the services of the
firm (Jacques, 1952: 251)

Identify culture

WAYS TO IDENTIFY
Observable symbols
Physical layout
Communication patterns

Stories

Practices and behaviours

Values, assumptions, feelings

and beliefs

EXAMPLES
Company logo
- Yelling and screaming
- 2x4 management
Mostly one way
The myth about aggressive management
behaviour of hitting and screaming to
employees;
Believed that to be promoted one had to be 2x4
managers
Yelling and screaming macho management
Intensive competition between shift to the
extent to lock up their tools so that other shift
could not retrieve it
Rush in working pursue quantity rather quality
- Employees were scared of being exposed and
humiliated
- No trust throughout the plant
- Cheating, lying and stealing are seen as
necessary in order to cut down costs
More concern in covering self than quality or
quantity

Integrationist theory
- Strong, uniform cultures
- Two aspects (external adaptation and internal integration):
(a) a positive culture refers to the attractive content of manifestations such
as norms or values
(b) a cohesive culture refers to uniformity, that is, a high degree of
organization-wide consensus among cultural members
EXAMPLES: external adaptation how organization operate, means to accomplish
goal, repair strategies

The macho aggressive management style

Competition between shifts
Lying, cheating and stealing in order to accomplish goals
If anything happen let other people repair it
Internal integration common language, friendship and relationship
o Using harsh foul language
o Competition between shift

Differentiationist theory
-

Organisation is a cluster of sub-cultures related to particular challenge,

task, responsibility of a unit or group

EXAMPLES

Consultants versus the managers

After the change plan is implemented we can see there is 2 culture in level
3 participants
o Some were participatory and others not. This inconsistency makes
workers confuse
Level 1 sees the plan as delegation, level 2 sees it is being abandoned

Critical theory
-

Look culture from employee perspective

Looks at how employees are affected
Focuses on the way in which power is embedded in culture
Especially interested in how strong culture is a way to control employees

EXAMPLES

Employees are deemed to believe that it is actually necessary to cheat,

steal and lie
Employees do not dare to speak out or assume responsibility
Sabotaging of the other shift is normal
Employee think 2x4 management was just a mere show to pressure
workers
2x4 and competition were regarded by employees as dysfunctional
Workers need to always be ready for set of excuses to cover self
problems never solved
About the change plan
o Employees sees it as a new tool to achieve old ends
New tool to push number of spy on people
Still need to lie and cheat if cannot get work done in new
format or suffer consequences

STRATEGY AND STRUCTURE

Strategy The determination of the long term goal and objectives of an
enterprise, and the adoption of courses of actions and allocations of resources
necessary to carry them out.
Porter Five Forces

Competitive rivalry: high rivalry (from domestic and imports)

Threat of new entrants: high entry barriers
Threat of substitutes: many potential substitutes (many cars especially
imports)
Suppliers bargaining power: not known

Buyers bargaining power: strong buyers (buyer have wide choice)

Product Differentiation strategy (Porters Competitive Strategy)

-

Positions the product/service as different to (better than) others

Charge a premium price and have good margins

EXAMPLES

A very competitive industry price taker, cannot be a price leader

Its future rests on the successful introduction of two new environmentally
friendly cars that will be launched over the following three years, and into
which a significant amount of money has been invested
Indicates a high R&D investment hence producing differentiated product

Defender (Miles and Snow Framework)

-

Protects existing markets and aims to maintain a stable share of the

market
Low risk: defending what you know but requires a stable environment

EXAMPLES

Defend via differentiation new product launching

Stays in the same market, same product
Trying to defend a stable share of market

Mintzberg Emergent Strategy

-

While there is much to be said for being proactive, the best strategy for
todays slow-growth, volatile environment may be one that is essentially
reactive, a strategy in which CEOs, like some great athletes, allow the
game in this case, events to come to them. This is emergent
strategy, one that in a certain manner is formed on the fly, constantly
reacting to events and fast-changing reality
Source; http://www.iveybusinessjournal.com/topics/strategy/the-emergentway-how-to-achieve-meaningful-growth-in-an-era-of-flatgrowth#.UbMdkb9u0ZQ

EXAMPLES: theories emphasizing the emergent approach)

Changing strategy by entering the new dimension of the industry, the

environmentally friendly in order to cope with fast growing industry and
fulfil consumer demand
When it seems that current culture and work environment do not improve
quality and workers are having low morale the company find consultant to
give ideas

When change seems not to work (not solving quality and morale issues) 2
managers came up with different approach to make the change plan to
work out

Functional structure (type of structure)

-

The classic organizational structure where the employees are grouped

hierarchically, managed through clear lines of authority, and report
ultimately to one top person.
Source; http://www.businessdictionary.com/definition/functionalorganization.html#ixzz2VcsqUkbx

EXAMPLES

6 managers with different functions

7-s Framework
Aspects of organisation, needs to be aligned:
-

Super ordinate goals

Strategy
Style
Structure
Staff
Skills
Systems