Change management case study Essay Example | Topics and Well Written Essays - 2500 words

Change management case study - Essay Example Semler has a unique strategy, that of empowerment. The importance of ethical values in relationship with workers is a critical part of this success story. He sincerely believed that each of his employees had the biggest stake in his business and they needed assurance of the safety of their jobs. He used this leverage to ensure their loyalty. This move secured the future of both the employees as well as the company. Maslow (1954) argued that workers achieve their best only when they are recognised for their accomplishments by peers as well as their superiors. Pay does matter but self actualisation is the ultimate motivation. This was the value that Semmler understood well and made the basis of the change he brought about. He used empowerment as the tool for motivating the employees and made them share the responsibility of managing the company by delegating power to them. Empowerment is a tool that is to be employed with the concept of participation with responsibility for consequences. It was introduced and implemented throughout the organisation in a phased manner. Hierarchy was broken down as this is a great barrier towards emancipation and self actualisation. A change plan was crafted to bring every worker into the management loop recognising his ability to contribute towards improvement in operations and the bottom line. It is essential to change according to the environment and evolve strategies to survive intense competition. Porter (1980) had suggested that competitive advantage is what keeps a firm; alive and later argued that when a firm becomes different by offering value, quality and some attributes through which it offers some uniqueness then it will become an above average performer in its industry (Porter 1985). But to arrive at this stage the firm must make difficult choices. Porter (1996) then redefined strategy to be a combination of differently performed

Strategic management final exam bachelor degree Term Paper

Strategic management final exam bachelor degree - Term Paper Example This relationship identifies validity of the statement from the perspective that organizations can focus on their microenvironment and manage the factors to overcome any possible effects of the macro environment. This is because microenvironment such as organizational behavior and employee efficiencies are easily manageable as they are under organizations’ powers. A consideration of a business’ long-term scope and effects of the macro environment however invalidates the statement because micro environmental factors influence many organizational activities. The economic environment that includes economic conditions and economic policies is the first significant factor to organizations. Factors such as inflation rates, unemployment rates, trade regulations, and interest rates have significant effects on productivity of and profitability of an organization and therefore affect sustainability. Political environment is another significant macro environment factor and plays a significant role in influencing success of business organization. Political stability establishes investors’ confidence and therefore facilitates commercial activities, especially at global level and political ideologies and relations with other countries facilitate ties for favorable business environments. Socio cultural environment that include people’s preferences, â€Å"family systems, caste systems, education, marriage,† among other social and cultural factors determines markets and revenue levels to businesses (Mukesh and Trehan n.d, p. 12). Technological environment with its characteristic advantage of facilitating operational efficiency and demographic factors that determine volume and trend of demand for products is also very important to business’ organizations’ lives. The significance of macro environment that dictates sustainability and efficiency of organizations’ internal factors therefore identifies relevance of the environment to businesses. This means