Change Management: Motorola
Table of Contents
Executive Summary
Introduction
Motorola: Background of the Company
The Drivers of Change
External Change Drivers
Technology
Globalization and Competition
Changing Demands and Needs of the Customers
Natural Environment
Internal Change Drivers
Current State
7-S Framework
Shared Value
Staff
Skills
Style
Strategy
Structure
System
Sources of Resistance
Endings
Neutral Zone
New Beginnings
Styles of Leadership/Management
Scenario Planning
Conclusion
References:
Appendices
Appendix A: The Drivers of Change Model
Appendix B: 7-S Framework
Executive Summary
There are different changes that are going on in the world that can directly and indirectly affect the entire business field. Motorola is considered as one of the well-known companies in the world, due to its relationship with its employees as well as its innovation process, but due to global competition and other factors, there is a great need for continuous changes in different aspects of the said company. It is important to consider the different demographics, economics and social scenarios that can be faced by the company that can affect its strategies such as the ever-changing demands and preferences of the customers, the global financial crisis and the future demands for skilled and knowledgeable employees.
Introduction
As of now, business environment makes changes in the different processes of work place more abruptly and often than the past. This is due to the different reasons and factors that can affect the speed as well as quality of the performance of different companies and organizations, such as acquisitions, merging, applications of different advance technologies, restructuring and downsizing, that can add to the growing climate of uncertainty (FEAP n.d., p. 1).
Organizational culture can offer competitive advantage for any business; on the other hand, it can also create obstacles in the process of innovation as well as change that are necessary for the success of the company (Tushman & O’Reilly, 1997, p. 36).
Change is consider as one of the most important move or decision of the top level management of companies but it is also one of the most take for granted processes. One of the most important issues that affect the development of the change process is the lack of involvement.
As of now, the world of business is facing different changes in terms of technology, regulation and competition, that is why the organizational changes is necessary in order to follow the fast flow of changes in terms of internal and external areas of the business. Furthermore, it will include different simultaneous transformation shifts in terms of the structure and system of the firm, together with the culture and competencies (Tushman & O’Reilly, 1997, p. 36).
Any change in any organizational culture and management is considered as normal and healthy, this is according to Peter Drucker (cited in Dulebohn, 2006, p. 37).
It shows that change in any organization will help the company to adjust to the current situation f the current global market thus adjust the culture and other internal aspects in terms o the increasing demand for innovation, due to the fact that innovation is one of the most important strategy of any company.
Motorola: Background of the Company
Motorola is very popular due to its role as a pioneer, innovator as well as visionary in the field of the mobile communication. The organization was originally founded as the Galvin Manufacturing Corporation in 1928, and it has come a long ways since its first introduction of its battery eliminator, its first product. For more than 75 years, the organization has already proven it a global leader in terms of wireless, broadband and automotive communications technologies as well as embedded electronic products. Furthermore, become a company that is being recognized for its dedication to the different ethical business practices and holds a pioneering role in the significant innovations (History of Branding 2007).
The Drivers of Change
It is important to take note that organization change doesn’t happen out of the blue. It is catalyzed by a number of forces that trigger first awareness then action. The said signals are originate in the environment of the organization or even the marketplace. It can include bold moves by the competitors, new technology or even the shifts in the regulations of the government. Furthermore, the failure in the performance of a leader’s own organization can also signal the needs for a change. The Drivers of Change Model show the different aspect that can influence organizational change, particularly the transformational change (see Appendix A) (Anderson 2001, p. 16).
Over the decades, Motorola’s steady evolution has allowed it to meet the different challenges of revolutionary changes in the business. Change has become part of the legacy of the company (Miraglia 1994, p. 1).
External Change Drivers
Technology
The different external change drivers focus on the leaders such as the environment, marketplace, business and organization (Anderson 2001, p. 16). One of the most important aspects that can affect the overall change of the organization is the technology. This is due to the fact that the organization is offering different gadgets that are being affected by the development of different technologies as well as the ever-changing demands of the customers. As technology, changes, the organization must make sure that they will be going to take advantage of it, in order to make sure that the company is following the current trends, that will maintain the interests of the customers to the organization’s products and services that will help to maintain their competitive advantage in the market.
Furthermore, application of new technology can cause a great change for a given organization. This is due to the fact that it can affect different aspects or parts of the organization such as the human resource and production.
Globalization and Competition
Globalization plays an important role in each and every aspect of business. Organization in a global economy is characterized by greater and more intense competition and at the same time, greater economic interdependence and collaboration. More products and services are being consumed outside of their country of origin than ever before as globalization brings about greater convergence in the terms of the tastes and preferences of the customers. Yet at the same time, in the midst of greater convergence, there is the opposite force of divergence at work where companies have to adapt corporate and business strategies, marketing plans and production efforts to the local domestic markets (Business Reference 2007).
Competition, on the other hand, is considered as one of the most important aspect that can influence change in the organization due to the fact that competition is considered as one of the most influential aspect in the overall market. Competition is one of the primary reasons for management and technological change due to the need of the organization to maintain their competitive advantage and their position in the market.
Changing Demands and Needs of the Customers
Another important driver of change is the changing demands and needs of the market. As of now, more and more technologies and innovations are being introduced in the market, and being different is one of the primary aspect that must be considered in order to gain competitive advantage. Another important aspect to consider is how the production process of the organization such as the quality and the price of the product or service can affect the buying behavior of the customers, thus the overall customer relationship of the organization.
Natural Environment
As of now, different policies and processes of the organization are being affected by the current consciousness of the world regarding the environment. This can affect the overall processes and policy of the organization regarding the entire manufacturing process as well as the value chain system.
Internal Change Drivers
The internal change drivers focus on the behavior and culture (Anderson 2001, p. 16). There are different internal factors that can influence or drive change in the overall organization. Culture and behavior are two of the most important aspects.
Globalization has a great impact on the behavior and culture of the organization. This is due to the fact that Motorola is also having its operation in foreign or partner countries, this can affect the overall human resource and manufacturing processes due to the differences in perspective, culture, believes and tradition. The dimension that refers to the what of the change like the strategies, organizational culture, rationalization, re-engineering, reward systems, management control and even the new production systems. More often than not, many aspects of change are related to each other and it may be difficult to target one area of change as distinct from another (Alevesson & Sweningsson 2008, p. 17).
The culture of the employees or the units of the human resource of Motorola is important due to the fact that the employees are the one that are creating the product of the organization that is being offered in the target market. That is why it is important to consider the motivation of each and every employee in order to bring out the best in them.
It is also important to consider the different changes in the government policies regarding the relationship of the organization to their employees. It is important to consider that it can drive change. Furthermore the changing demands of the employees is also important to consider that is connected to their financial and other needs that are related to their works and responsibilities inside the organization.
This is important because loyalty of the employees towards the organization is very essential and vital in continuing the vision, mission and goals of the organization.
Current State
7-S Framework
The 7-S Framework of McKinsey is a model of management that describes the 7 different factors that are needed in organizing a company in a holistic and effective way (12Manage 2008) (see Appendix B).
Shared Value
The shared values or the Superordinate Goals is what the organization stands for; it focuses on the long term vision of the organization, the different charitable ideals or its guiding principles (Spencer 2007). The key beliefs of Motorola focus on the strong culture of corporate ethics as well as citizenship: uncompromising integrity and constant respect for people (Motorola Worldwide 2008).
In addition to that, Motorola also focuses on their respect for the environment that focuses on the longstanding and ongoing commitment to the health as well as safety of the organization’s employees, customers, supplies, partners as well as community neighbors (Motorola Worldwide 2008).
Above all, the organization is also focusing on the different community investments by supporting the education, economic, environmental as well as social needs of the communities in different parts of the globe (Motorola Worldwide 2008).
Staff
The staff refers on the number as well as type of the people that are employed by the organization (Spencer 2007). As of now there are about 66,000 employees that are connected to the company coming from different parts of the globe. Due to the fact that the organization focuses on the field of technology, by offering advance and innovative gadgets, majority of the staffs belong to the technical groups such as Information Technology or IT: programming, networking etc.; engineering: electrical, field application, IC design, mechanical etc. On the other hand, there are also some non-technical positions such as administration support, business development, finance, human resources and manufacturing (Motorola Worldwide 2008).
Skills
The skills and abilities pertain on the talents and abilities of the staffs that are employed by the organization (Spencer 2007). Due to the fact that Motorola is considered as large organization, and one of the most famous companies in the world, the process of selection and hiring of the organization is being done in meticulous manner.
Primarily the skills of the staffs focus on the different important aspects of the organization such as the innovation, management and marketing. The innovation aspect focuses on the different technical skills that have been mentioned in the staff aspect. On the other hand, the management focuses on the different skills that are connected on the process of supervision and administration of different resources.
Style
Style is the way things are being done within the organization, or consider as the work culture (Spencer 2007). Motorola focuses on the constant respect for people as well as the strategic initiative in order to create an empowered workforce of highly skilled and cross-trained employees. Furthermore, the company also requires critical talent at different positions and seeks in order to optimize the knowledge, skills as well as the abilities of its workforce (123oye.com 2008).
Strategy
The strategy is the plans of the organization regarding the allocation of different resources in order to achieve a given goal (Spencer 2007). Due to the fact that Motorola belongs to the technology field of business, there is a great need for innovation, and this can be improve and develop by maintaining and acquiring talents in different fields of technologies. The company is seeking different talented people from different part of the world, in order to make sure that they will be going to introduce new products in the future (123oye.com 2008).
Structure
The structure is the way that the business’s unit of the organization is connected to each other (Spencer 2007). The structure of Motorola is functional organizational structure. It is organized into four business groups that focuses on the personal devices, networks, government, enterprise and connected home. On the other hand, the Information Technology of the company is centralized.
System
The systems are the different practices as well as procedures that are uses and applied by the organization in order to get things done (Spencer 2007). In terms of the human resource, the company focuses on hiring people that have the 4Es + 1E or Envision Energies Execute Edge + Ethics (123oye.com 2008). Furthermore, the Motorola Code of Business Conduct sets the different standards for the company’s commitment in order to uncompromise the integrity. The said code provided the company’s employees a guidance for the different business activities as well as placing a priority in order establish trust with its stakeholders (Motorola Worldwide 2008).
Sources of Resistance
Endings
During this stage, denial regarding the existence of the initiative and other related change events. During this time, fear and uncertainty regarding the future can affect the employees that will result in diminishing the level of the activity and readiness in order to deal with the different accelerating pace of different change as the process starts to impact on the organization. This is due to the fact that the staffs feel the loss of their familiarity and security that they have felt before.
Neutral Zone
The Neutral zone or also called as exploration stage is the time in between the current and the desired state. During this time, the staffs are already orienting themselves to the new requirements and behaviors. As a result, some of the staffs are confused regarding the future as well as overloaded with the different competing demands. During this stage, the company had been able to exert effort in encouraging the staffs
.
New Beginnings
During this stage, the employees or staffs have been already familiar and comfortable with the change of the organization due to the different effort of the organization. This is the stage where in the employees are ready to function as a significant contributor.
Styles of Leadership/Management
The participative leadership or management style is the one that is use and implemented by the company. This type of management involves the process of sharing different information and data with the employees and then involving them in the process of decision-making (Encyclopedia of Management 2007).
Scenario Planning
The major issues that will be facing by Motorola are the increasing competition in the global market, in terms of innovation and technology. Furthermore it is also important to consider the fast development of the technology that can affect their productivity. The different drivers or aspects that can affect the company, if they will not go through a series of change are the: ever-changing demands and needs of customers from different part of the globe that can great affect the overall buying behavior of the customers. This is important due to the fact that more and more customers are demanding for high quality products, particularly in terms of the computer-related technologies.
There are different scenarios that must be considered for the future. First is the change in the lifestyle of the people around the world. As of now, more and more people are into the usage of mobile, not only for their personal matter, but also for their business matter. That is why it is important to consider the different aspects regarding development of high-end technologies regarding the mobile technologies.
On the other hand, it will also be important to consider the continuous global financial crisis that is happening, that is why it will be important to offer different products that will meet the budget of the possible customers. It is also important to consider the growing number of fake products that are circulating in the market, particularly in Asia, that offers almost the same features but in cheaper price.
It is also important to consider the human resource in terms of the skilled employees that are needed by the organization. It is important to know, whether the company will be able to look for employees that will meet the expectations and innovation needs of the organization due to the educational issues around the globe.
Conclusion
Motorola is considered as one of the organizations that are undergoing series of different changes from time to time. This is due to the fact that it is affected by different changes that are going on in the entire external and internal environment of the organization coming from different entities such as the government, employees, customers and other important stakeholders. It is important due to the fact that relationship with the stakeholders considered as one of the most vital aspects of the organization.
Human resource is the most important aspect of the organization due to the fact that continuous innovation is the primary strategy of the organization in order to give their customers, something new from time to time that will help the company to maintain the loyalty of their customers that will give them the competitive advantage.
References:
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Anderson, D 2001, Beyond Change Management: Advance Strategies for Today’s Transformational Leaders, Wiley_Default
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Spencer, T 2007, Analysis Framework: McKinsey;s 7-S Framework, Tom Spencer Consulting Blog, viewed October 13, 2008, < http://www.tomspencer.com.au/2008/09/13/management-consulting-analysis-framework-mckinseys-seven-7-s-framework/>
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Tushman, M & O’Reilly, C 1997, Winning Through Innovation: A practical Guide to Leading Organizational Change and Renewal, Harvard Business School Press.
Appendices
Appendix A: The Drivers of Change Model
Adapted from: (Anderson 2001, p. 17)
Appendix B: 7-S Framework
Adapted from (12Manage, 2008)
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