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Homework answers / question archive / You are a group of top managers of one of the Big Three car makers in Pakistan
You are a group of top managers of one of the Big Three car makers in Pakistan. Your company has been experiencing increased competition from other car makers like Toyota and Honda whose innovations in car design and manufacturing methods have allowed them to produce cars that are higher in quality and lower in cost than yours. You have been charged with preparing a plan to change the company’s structure to allow you to compete better, and you have decided on two main changes. First, you plan to reengineer the company and move from a multidivisional structure (in which each division produces its own range of cars) to one in which cross-functional product teams become responsible for developing new car models that will be sold by all the divisions. Second, you have decided to implement a total quality management program to raise quality and decentralize decision making authority to the teams and make them responsible for achieving higher quality and lower costs. Thus, the changes will disrupt role relationships at both the divisional and functional levels.
(a). Discuss the nature of the obstacles at the divisional, functional, and individual level that you will encounter in implementing this new structure. Which do you think will be the most important obstacles to overcome? (100-200 words)
(b). How would you implement the change in structure? Write down step by step in a sequential manner of your plan. (100-200 words)
a) The obstacles in the functional structure is that inter departmental communication is lacking and dicussions of the issues of the organization generally take place at the managerial level between different departments.The divisional structure provides autonomy between groups in the organization.Each division operates as its own company and the obstacle is that since it focuses on divisions ,employees who work in the same function but in different divisions are not able to communicate with people in other divisions . Issues with accounting practices arises in this structure and there may be tax implications as well.In the individual level people feel unsettled and may resist such changes. The obstacle of not being able to communicate with employees who work in the same function but in different divisions is the most important obstacle to overcome.
b)To implement change in structure ,firstly it is necessasry to draft a communication about the changes to be implemented to the employees .This will help in reducing the stress among the employees of not being aware of how their jobs are affected and at the same time feeling that they are also important to the organization.With change the important concern is loss of employees for the fear of the unknown.Secondly it is imperative to choose a good project management team and team leader, who has experience in project management and is respected by all the employees .Thirdly designing a proper and detailed plan of action is essential .It is essential to determine the exact changes like selling of business units,early offers for retirement etc.Lastly it is essential to follow up each change that is being implemented for the outcome.
