In the modern world, every organization faces a number of challenges on a daily basis, and it is the regular course of events for business (Gibbons, 2015). In the analyzed case, the last 18 months were difficult for the organization, because the company had many difficulties. Thus, some organizational development process skills are necessary for executives to do business successfully. Firstly, it is essential for a business to understand the importance of having a reliable and efficient team that can solve everyday problems. During the creation of a strong team, the solution to the successful reorganization of the group means that all employees and managers work together and communicate. In this regard, when a company faces a financial crisis, software obsolescence, a stressful situation for the team, and other problems, the executives of this business have to implement reorganization.
Reorganization of a company is not an easy process, and it has many steps. In case organizations suffer from such problems as outdated software, financial crisis and high staff turnover, the company should develop a detailed and long-term reorganization plan. The effective reorganizations do not just shuffle blocks and lines on the organizational structure (Gibbons, 2015). The most optimal process of organizational development implemented by the leader is a few steps. First of all, managers must identify the problem.
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One of the serious problems of companies is the high turnover rate (Jun Hao & Yazdanifard, 2015). It means that employees are usually dismissed after a short period of employment in the company. Problems of this type can be caused by such factors as the personal circumstances of the employees, as well as internal or external factors. Internal elements of an employee may include changes of their civil status, health and family, which require dismissal from work. Internal problems are those factors that are related to aspects of work in a particular company. For example, the work has become less exciting or more complex; work assignments do not match the skills of the employee; and others related to the work performed by the employee. External factors include wages, incentives, vacation systems, and others. In the analyzed case, the problem seems to be internal, since the company’s problems are observed for 18 months.
Apparently, the development strategy or reorganization of any company includes the presence of strong leadership. Executives are leaders, who lead company employees to success (Gibbons, 2015). According to Peter Drucker, an effective decision-making process must go through several necessary steps (Drucker, 2016). These steps do not necessarily imply success, but if they are ignored, the solution is unlikely to be useful or correct (Drucker, 2016). He recommends six steps that include the classification of the problem; problem definition; the specifications that the solution of the problem must satisfy (so-called “boundary conditions”); right steps to solve the problem; start of a solving a problem; and feedback that checks the validity of the decision regarding the actual course of events (Drucker, 2016).
After deciding on reorganization, a strong leader should concentrate on developing individual and corporate skills of company employees. The formation and development of skills occur on several levels. The capabilities of individual employees are improved, and as a result, their productivity increases. Moreover, the group skills are also grown, and then the whole workforce occurs more effectively. Besides, skills can be developed within individual units (for example, within particular department), which begin to apply improved workflows, auxiliary systems and other means of improving work. Individual skills must be developed at least for the reason that the staff is the main driving force of any transformation. Corporate skills also play an essential role, since successful work of an organization implies well-coordinated work of systems and processes through which individual skills can be applied. Indeed, the long-term efficiency gains achieved regardless of the length of time for individual employees in the organization. The latter is a solution to the problem of the negative impact of rapid turnover of personnel on company.
The next essential organizational skill used for executive should be an adaptation of workers to specific situations (Jun Hao & Yazdanifard, 2015). The measures for development of the necessary skills must be adapted to the particular conditions, which the organization experience in the current moment. Each company embarks on a skills development program in a unique starting position. The analyzed company has a number of long-term problems that are the starting point for the beginning of the implementation of change strategies. In order to succeed, the development of a reorganizational program must be conducted by the company’s conditions by analyzing the existing shortcomings and problems. Adaptation should also take into account the differences that exist between departments of the company.
The next skill for a successful leader is the implementation and organizational consolidation with the help of processes, tools and personnel (Jun Hao & Yazdanifard, 2015). The third-party experts can manage the implementation of the program at an early stage. However, in order to build sustainable skills across the organization, along with the application of tools and supporting processes, the executives must prepare internal corporate managers who could lead the transformation process.
Skills development programs are often implemented in several waves, each of which complements the previous one and contributes to the further spread of new skills and approaches within the organization. During the first waves, corporate managers, capable of leading the transformation process, are trained. They have to act as experts on new tools and procedures and be a personal example to other workers. At the same time, in order to consolidate and support the development of new skills, management and technical systems are being restructured. Changes in management systems may include, among other things, a revision of the initial parameters and targets, the redistribution of functions and readjustment of management mechanisms. Technical changes may depend on the specifics of individual functional areas, but usually, they are associated with the introduction of new systems, platforms and software applications that allow executives to plan and implement a skills development program more effectively. To ensure renewal and long-term consolidation of skills, corporate academies and distance learning platforms should be included in the structure of the organization.
Part of the fourth step of Peter Drucker is the planning development strategies. Change management is a careful process, so any mistake can affect the entire change management process in an organization (Mišanková & Kočišová, 2014). Accordingly, company management must plan and implement appropriate change management strategies (Jun Hao & Yazdanifard, 2015). There are short-term and long-term change strategies. Short-term change strategies are used to reorganize the company's operations quickly. The essence of these strategies is to identify key risk factors and means to eliminate these risks will also be useful for the successful implementation of changes. Such strategies save the organization’s time because the work on removing errors focuses on a specific problem area. However, the short-term approach alone cannot solve serious and long-lasting problems such as the financial crisis, which lasts 18 months.
Long-term change strategies imply a vision for the company's development. The choice of such a strategy involves the establishment of a long-term goal. In the case of a company, which is in crisis for 18 months, the goal can be: “Our goal is to increase the company's profitability by 100% while minimizing employee turnover by 60% due to staff reduction and employee training”. Such a goal means a way out of the financial crisis, as well as increasing employee loyalty to the company through an individual approach to each member of the organization. The availability of certain resources, such as the labor and financial ones, is also essential for the successful development of the company.
Consequently, the protracted crisis lasting for 18 months in the company requires immediate actions from the executives. First of all, the administration of the company must use the Drucker's six steps to make the right decisions, and then these decisions can bring benefits to the organization. The executives should focus on training staff, especially managers of the departments. Moreover, the organization’s long-term goal is to minimize costs, increase profits, and also reduce staffing.
References
Drucker, P. (2016). The Peter F. Drucker Reader: Selected Articles from the Father of Modern Management Thinking . Harvard Business Review.
Gibbons, P. (2015). The science of successful organizational change . Upper Saddle River: Financial Times/Prentice Hall.
Jun Hao, M., & Yazdanifard, R. (2015). How Effective Leadership can Facilitate Change in Organizations through Improvement and Innovation. Global Journal of Management and Business Research: an Administration and Management , 15 (9). Retrieved from https://globaljournals.org/GJMBR_Volume15/1-How-Effective-Leadership.pdf
Mišanková, M., & Kočišová, K. (2014). Strategic Implementation as a Part of Strategic Management. Procedia - Social and Behavioral Sciences , 110 , 861-870. doi: 10.1016/j.sbspro.2013.12.931
