Case Study of Newton Organization Free-Samples for Students

Question: Provide an Analysis of Case 29 We Must Learn to Innovate from Cases and Exercises in Organization. Answer: Introduction Newton is a company whose core business is manufacturing of consumer-packaged goods. The company operates in the consumer mass market and its products ranges from food chains, pharmacies and chain drug stores. In order to remain successful, Newton endeavors to manufacture high volume, yet low profit items, which is possible through a reliance operational efficiency, reduction of errors and downtown. While Newton Innovation Team has been tasked with transforming the company culture towards creativity and innovation, the current Newton-centric culture that emphasize on hierarchical personnel structure remains the biggest hindrance to the desired vision of change. In the spirit of change, Richard, Newtons CEO, announced that the company had made a bold decision to divest a larger section of the business to Benson Company, a decision that did not auger well with the team members since it was made without consultation. With this announcement, the whole process of change was in disarray as the members felt excluded and many of them, like David, started resisting the proposed changes. This paper presents a case study report on the plan of action that the Lars Rogens Consulting Team needs to follow in order to guide the Newton Company into a successful cultural transformation process. Structure of the Report This report is divided into nine sections. The first section introduces the case and arising priority issues that need resolution. The second section provides an approach to organization diagnosis and feedback prior to adoption of change. The third section explores strategies that organizations can use to build commitment and readiness to change. The fourth section examines the appropriate leadership styles necessary for ensuring effective change management. The fifth section explores the nature of evaluations necessary for measuring the effectiveness and success of change. The sixth section provides a systems approach to change strategies. The seventh section looks at the ways that the organization can retain its capabilities through the change process. Finally, the conclusion provides a summary of recommendations for successfully implementing organization change. In order to accomplish the purpose of this report, a focus will be on identifying, collecting and analyzing academic resources. The report will depend on change management theories, models and tools to provide a concise and academic analysis of the case study and provide recommendations grounded in theory and academic research. Case Analysis Diagnosis and Feedback Change remains the scariest thing that employees and management face in their organization. However, with proper diagnostic tools and effective feedback, organizations can begin the change journey on a solid and stable foundation. Organizations need to embrace change if they hope to survive in the ever changing and competitive business environment. Hence, change is not only inevitable, but a very necessary process for remaining effective, competitive and sustainable in the future. The planning and implementation of the change processes is therefore vital to the modern organizations. It is important to consider organization diagnosis as a very important aspect of the change management and implementation process. Diagnosis refers the process of gathering relevant information and engaging in analysis to determine the underlying cause of the problem or the underlying change that the organization needs to prioritize (van Wart, 1994). Diagnosis provides an opportunity to learn about the current functioning of the organization and necessary information required for designing change interventions (Cummings Worley, 2014). Most organizations undertake diagnosis as the first significant step towards implementing broader cultural change. The organization diagnosis used in Newton Company was part of the change management process that sought to restructure the organization culture to make the company more creative and innovative in addressing customer needs. A conceptual framework is important towards attaining effective organization diagnosis. The conceptual framework provides guidance on all the activities that need to be incorporated in the diagnosis proces The report adopted a 5-phase conceptual model comprising symptoms, fact finding, establishing causes, analyzing alternatives and adopting the optimum solution. From this conceptual framework, the diagnosis focus is on the inputs, process or management (technology, strategy, human resource systems, and structure and measurement systems), organization culture and output. It is important to begin the diagnosis by examining the organization environment and its inputs. The organization environment entails the general and task environment, industry structure, enacted environment, rate of change and related complexity. Secondly, the innovation team must consider the design components or processes, including strategy, technology, structure, human resource systems and measurement systems. Thirdly, the innovation team must look at the current organization culture, including vision, mission and shared organization values, the norms, assumptions and values held by the organization members, the symbols and images of the organization, the work environment and the relations between the employees. The final component is the output, which represents the desired organization effectiveness indicated by organization performance, productivity and stakeholder satisfaction. The innovation team needs to identify a series of issues that represented the root cause of Newtons problems. Identifying the root causes of the problem will enable the Newtons innovation team to determine the causes of the discrepancy between the current and desired state. Moreover, it will be easy to ascertain the changes required to attain the culture of creativity and innovation. After determining the underlying cause, the innovation team should engage in a fact finding mission to link the identified symptoms to actual data. This entails examining the organization system to determine the cause of the current challenges. It is important to inform the employees about the process and the need for the diagnosis exercise. In the case of Newton, both qualitative and quantitative methods of data collection will be effective. Three primary techniques will be ideal, including document analysis, survey instrument and structured interviews (Jung et al., 2009). Surveys are very important and effective tools for collecting quantitative and reliable data that can be used to conduct trend analysis of the organization practices and procedures (Cummings Worley, 2014). On the other hand, structured interviews will offer opportunities to unearth valuable subjective insights and experiential information that cannot be collected through the survey method (Cummings Worley, 2014). Lastly, document analysis will be important in gathering information about the recent history of the organization, such as mission, vision, goals, objectives, budgets, strategy and activity reports (Bowen, 2009). Feedback will be attained through weekly meetings with employees and management. in this way, it is possible to determine what is working or not working during the diagnostic phase. Meetings allow opportunities to raise issues and address them immediately. Building Commitment and Readiness Employee commitment, readiness and resistance or acceptance of change has been major areas of focus for studies focusing on organization culture changes. In an article on attitudes towards change, Bouckenooghe (2010) observes that over 90% of all the conceptual frameworks on organization change focus on readiness or resistance to change. Individual and employee readiness to change is a critical factor in the successful implementation of organization change (Suwaryo, Daryanto Maulana, 2015). Readiness for change refers to the beliefs, the intensions and attitudes concerning the extent to which changes are perceived necessary, needed and the capacity of the organization to implement the changes (Mierke Williamson, 2017). A number of believes have been fronted as key determinants of readiness to change, namely discrepancy and change self-efficacy (Armenakis, Harris Mossholder, 1993), appropriateness, principal support and valence (Armenakis, Harris Field, 2000) and change positive effect (Rafferty, Jimmieson Armenakis, 2013). In the case of Newton, there is a general feeling that the organization is not ready for change. While Larry appreciated the concept of innovativeness, he did not see the organization embracing and pulling off the idea of change. David, the head of marketing, and Lisa, the controller among others, held similar reservations. It is important to explore strategies for ensuring that there is commitment and readiness to change among the team members even before implementing the change process. Three strategies may be adopted to foster commitment and readiness for change at Newton Company, namely persuasive communication, active participation and managing external information (Armenakis Harris, 2002). Persuasive communication involves sharing information concerning prevailing discrepancy and efficacy. It communicates seriousness, commitment prioritization and the urgency of the proposed change efforts (Burke, Lake Paine, 2008). It makes sense for Newton CEO, Richard, and the lead consultant, Lars, to engage in oral and face-to-face communication with the team members to transmit information concerning the relevance and need of the proposed change. Oral and face-to-face meetings offer a personal focus, allow for multiple information cues and create room for immediate feedback (Lengel Daft, 1989). Hence, the meeting between the CEO and the senior management team, and the meetings between Lars and his team was critical in setting the scene and providing concise description of the need for change. Another strategy for fostering commitment and readiness to change is through managing of the external information. In the case of Newton Company, Richard made use of this by hiring an external team of consultants led by Lars, whose diagnostic report is important in adding credibility, confirmation and believability of the need for change (Burke, Lake Paine, 2008). Moreover, Richard can make use of press releases to the external media and circulating the relevant information about change to the employees and team members through distributing business books and articles with the intended change messages. Lastly, Newton Company can enhance commitment and readiness to change through fostering active participation. This strategy is important because individuals lay more trust and confidence in the information and opportunities that they discover themselves (Burke, Lake Paine, 2008). Instead of making strategic decisions alone, Richard could actively involve the team in strategic planning and sharing critical information so that they engage in discovering the discrepancy and need for change. Lars may also adopt enactive mastery to enable the employees to prepare for the huge cultural transformation through undertaking small successful steps. Resistance to change entails efforts by members to stick to the current state and block any effort to introduce new approaches. There are general attitudes of employees and organization members towards resistance to change, including cognitive, affective and behavioral resistance (Erwin Garman, 2010; Oreg, 2006). Resistance to change mainly arises due to self-interests, inadequate understanding, low tolerance to the change process, and different situational assessments (Lines, 2004). Other sources contributing to resistance to change include the fear of losing control, uncertainty, loosing face, surprise, additional work, concerns about the future competence, among others (Kanter, 2003). In Newton Company case, the main contributor to resistance was the high uncertainty about the future, the fear of losing control, the feeling that change is scary, unwanted and impossible, among others. A number of strategies are effective in managing and reducing resistance to change in Newton Company. First, it is important to foster active participation in the process of change. By sitting down all the team members in meetings and engaging active role-plays, Lars has better chances of instituting the desired transformation in the company culture (Fernandez Rainey, 2006). However, there is need to minimize surprises, provide a clear picture and regularly share information with the members, thus reducing the situation that Richard found himself in following withholding of key information from the members (Fernandez Rainey, 2006). Change Leadership In order to achieve successful change in organization culture, it is important to combine transformational and highly participatory leadership styles. Since Newton Company has been existing for over 133 years and has a solid and robust culture, it will be hard to achieve overnight change, thus requiring transformational leadership to drive the change process. Transformative leadership focuses on urgency while giving room for team members to be involved in crafting the desired future and sustainable changes. Transformational leaders display a range of behavioral characteristics, including inspirational motivation, idealized influence, individualized consideration and intellectual stimulation (Bass Avolio, 1993). Transformational leadership is necessary for building the required positive change attitudes in the Newton Company. This is mainly because of the nature of leadership, which allows room for sensing, sense-making, envisioning, visualizing, empowering, supporting and appreciating employees and team members. The transformational leadership style allows the integration of creative insight, energy, sensitivity and persistence enabling the leader to understand the needs and concerns of team members, building trust and purpose and enabling members to participate in resolving complex problems (Ashkanasy, Wilderom Peterson, 2000). Transformational leadership is effective in influencing the team members behaviors and attitudes through identification, commitment, self-efficacy and satisfaction with the envisioned change (Ashkanasy, Wilderom Peterson, 2000). Currently, Newton Company is highly saturated with negative attitudes and resistance towards the proposed cultural change. Research indicates that transformational leadership is the only effective style that has the potential to minimize the negative attitudes among employees towards change (Penava ehi?, 2014). Through motivation, idealized influence, intellectual stimulation and individual consideration of the needs of the members the transformational leader is able to guide the followers in challenging pre-existing notions, assumptions and negative attitudes towards change (Penava ehi?, 2014). Since Newton Company seeks to become more creative and innovative through a complete transformation in its culture, it is important to pursue transformational leadership as opposed to transactional, coercive, directive or autocratic leadership. Transformational leadership style builds on the assumption that people are purposeful and trustworthy and their unique contribution is critical to the attainment of the desired change. This style of leadership is critical to the success of Newton Company compared to the other styles because it emphasizes a sense of purpose and vision, facilitating, teaching and empowering others to take more responsibility and foster a culture of growth and creative change necessary for attaining the organizational objectives. Three contextual factors are important in determining the choice of leadership style and its effectiveness in attaining the desired change in Newton Company. First is the background and experience of the Lars, the lead consultant in the change process (Pawar Eastman, 1997). The success of the cultural change depends on the knowledge, ability, experience, ethics and values of Lars who is tasked with transforming the organization. Moreover, the personalities and background of Newton Company staff has a significant influence on the choice of the leadership style and the success of the change process (Pawar Eastman, 1997). Finally, Newtons organization culture comprising its deep rooted traditions, philosophies, values and concerns have a significant influence on leadership style just as the choice of leadership approach affects the culture (Pawar Eastman, 1997). In the case of Newton, culture has important role in areas such as retention and downsizing decisions. Interventions Cummings and Worley (2014) provided 3-stage criteria for determining effective interventions for organization change. These include the test of fitness to the organization needs, the causal relationship to the intended change objectives and the ability to transfer the capability and change management competence to the team members. To achieve a cultural change at the Newton Company, a number of interventions need to be undertaken. Three level of interventions should be undertaken, namely individual, group and organizational interventions. At the individual level, interventions should be undertaken to manage the human resources in the company. This entails managing employees through goal setting, performance appraisal, reward systems, training, coaching and mentoring, leadership and diversity interventions designed to support them to accept, embrace and go through the change process effectively. It is important to focus on individual level interventions to ensure that all employees are on board, to attain buy in and support and reduce employee resistance to the proposed cultural changes. At the group level, both human process and techno structural interventions are relevant. Human process interventions would be critical for ensuring success of Newton Company culture change through ensuring that employees engage in the consultation process, work together as a team, address emerging confrontations and establish strong in-group relations. This is critical because culture is a shared set of beliefs and values that can only be embraced and implemented through shared formulation and team effort. Lastly, the strategic interventions focus on the overall organization with the intend of ensuring smooth functioning of the organization in the entire environment. A change in culture is critical in transforming the strategic approach of the organization and positioning it for strategic and competitive advantage. Culture change entails redefining the purpose, mission and guiding principles to change the strategic direction of the organization and position it for creativity and innovativeness. Evaluations Evaluations are critical towards ascertaining the success or failure of any change initiative. Evaluations entail provision of feedback on the progress and impact of the implemented change interventions (Cummings Worley, 2014). Two types of evaluations will be conducted, namely during implementation and evaluations at the end of the implementation phase. Conducting evaluations during the implementation phase will be important in establishing periodic progress and addressing shortcomings whenever they arise. It will also be important to determine what is working and what is not working and institute the appropriate corrective measure whenever necessary. Periodic evaluations during implementation phase will be critical in understanding whether the small incremental changes are working and determining if the resulting culture is desirable. During evaluations, qualitative data can be collected through focus group discussions, which allows for in depth exploration of the issue of change through discussions. It is quick, efficient and can be useful in collecting important information of the change process. Nevertheless, it is difficult to analyze and compare responses. Evaluating the change process introduces the risk of exposure to organization failure. During the evaluation phase, the implementing team may come across issues that they had not considered, which may put the organization at a risk of failure. Nevertheless, evaluation creates opportunities to identify shortcomings and institute necessary changes. Moreover, it is easier to address challenges early own instead of going ahead and adopting a poor culture. Systems Approach Successful change of organization culture requires a system approach and understanding. The system approach asserts that the organization is a set of subsystems that interact to generate the desired change. the system approach argues that the organization exists in an environment and is made up of different systems and subsystems that are related and interconnected in such a way that changing one aspect has significant implications to the other system aspects. In addressing the culture change at Newton Company, it is important to consider and focus on the dynamics of the entire system, ranging from the environment and industry inputs to the design components, the current culture and the desired outcomes, instead of only focusing single factors such as the organization culture, human resource systems or structures. An analysis of the political, physical environment, economic, social, technological and legal systems within the broader environment is critical to gaining an understanding of influences to the organization and the proposed changes. The organization system approach will serve a critical role during the diagnostic phase because by focusing on every aspect of the subsystem and the different systems, and their relationships to each other, it will be easier to determine the range of issues and root problems underpinning the indentified symptoms. Moreover, the system approach will be critical in shaping and transforming the required interventions. a thorough understanding of the existing relationships between the subsystems will be critical in shaping and predicting the consequences and implications of any chosen intervention on the other subsystems and its impacts on the entire organization change. Consequently, the understanding and application of the systems theory will be critical in conducting an effective diagnostic analysis of Newton Company and implementing relevant change approaches and interventions that represents the entire organization. Organization Capabilities Newton Company enjoys strong focus on operational efficiency, elimination of errors and production downtime. These strong capabilities have enabled the organization to remain profitable. Even as a new culture of innovation and creativity is introduced, the organization should not compromise on its operational efficiencies. It is important to ensure cost effective analysis measures to ensure that the changes undertaken do not compromise on the operational efficiencies pioneered by the company. Another capability of the organization is the culture of family that is enshrined in treating people fairly and well. Even as the new culture changes are undertaken, it is important to retain the family culture that represents the heritage of the company. Consequently, it is important to support the employees to adopting to the change process without necessarily disturbing the culture of family. Layoffs and downsizing are factors that are likely to ruin the company family. Maintaining these capabilities requires adoption of an open process that is consultative and with goodwill to involve every member of the company. Conclusion In conclusion, this report has explored the theoretical background for implementing a culture change at Newton Company to attain a more creative and innovative approach. Bringing cultural change in the organization is complex process that requires careful consideration to ensure effective transformation to attain a competitive, creative and innovative organization. Problem diagnosis and feedback is important in ensuring that the organization addresses the root cause and involves all the stakeholders in reaching the decision to implement the desired change. There is a high resistance for culture change in Newton Company. There is need for the team to establish appropriate measures to attain commitment of the team and foster readiness for the change process. This can be attained through adopting transformational leadership to transform and influence existing attitudes, and implement relevant interventions and evaluations. Moreover, assuming a system approach will be critical in assumin g a holistic approach to the issue of culture change, hence ensuring adoption of an effective culture. References Armenakis, A. A., Harris, S. G., Mossholder, K. W. (1993). Creating readiness for organizational change.Human relations,46(6), 681-703. Armenakis, A. A., Harris, S. G., Feild, H. S. (2000). 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