Major Problem areas involving Change Initiative at Figgie International
A case study of Figgie International reveals that Mr. Harry made several errors which resulted in various challenges ranging from managerial issues to bankruptcy. The areas are key issues of particular interest to organizational Development specialist in change management. Leader of the company at the time believed he could manage the company without the help of other leaders whom he worked closely with which is clearly shown from the instances of reference from the case of the companies that he previously managed creating similar problems as at Figgie International. Records show that before his tenure, these companies were performing very well but collapsed somewhere along the way after he took over. Some of the reasons were mismanagement of funds. It is important to note that company resources are not personal properties and thus should not be treated as personal assets (Burke, 2008a). Mr. Harry’s poor managerial decisions clearly show that the organization faced various problems as a result of poor governance (Hiatt, 2010). From the case study, the problems include:
Ways in which the change initiative would have abated these challenges
From studies and considerations of change initiative as an approach to management consulted for this the writing of this report, Hunt (2003) postulates that there must be proper interaction of various organizational elements so as to meet company’s goals and objectives (Hunt, 2003). It is a collective responsibility of all stakeholders to ensure that all organizational aspects are blended to work together towards these goals. Good Leaders interact with the management team to ensure that they steer the organization to greater heights (Jones, 2008).
In the article; The Social Psychology of Organizing by Weick (2000), he states that a number of privately owned organizations at times collapse due to poor management. As stated in Figgie International case study, the company’s management suffered from nepotism which took to the ground within no time. A number of family members headed various departments despite their poor managerial skills which are crucial for steering the company towards its goals and objectives. The collapse of Figgie International can be surmised to have been caused by poor management and lack of technical knowhow among its executive leaders and this was greatly caused solely by the company’s president, Mr. Harry. This could have been abated had the management under Harry’s leadership considered the core competence of change management that requires wide consultation in management of corporations. New leaders can learn from Mr. Harry’s mistakes for better management. It is important to note that success depends on the combination of an organization’s management and the way in which they are designed to perform the organization’s key roles. Leaders’ mode of conduct plays a major role in determining the final achievement. Whatever plans that are put in place, it is vital for the management to keep in touch with other stakeholders to ensure that mutual goals of the organization are met (Hunt, 2003).
There are a number of change management theories that can be used to describe the changes in management that happened at Figgie International. One of this is Soft System Methodology (SSM) which handles problems whose nature is psychological, cultural or of social origin. Mr. Harry showed presented himself as one who was plagued with multiple challenges that would have been properly understood by the use of SSM (Hunt, 2003). In the same way, hard systems methods which are usually called Structured Systems Analysis and Design Methodology (SSADM) focus on computer implementations that are used to provide insights for solutions of difficult corporate problems. In Figgie International some of the managerial problems that caused its collapse would have been addressed and salvaged by SSADM especially those regarding embezzlement and rampant abuse of office by the chairman.
Recommendations
Good businesses operate with good business models and strategies. Lack of these strategies is the key reason for the collapse of Figgie International. Business model has been defined by Hunt (2003) as the representation of criteria and strategies/approaches that a business uses to create, capture and deliver value dependent results of its objectives such as economic, financial and social milestones among others (Hunt, 2003). It is a profit oriented plan implemented by a firm to ge
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