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Homework answers / question archive / MGT 435 Week 1 - Discussion Forum 1 Examples of Organizational Change Prior to beginning this discussion forum, view the following video, Top 5 Organizational Management Strategies – How to Manage Transformational Change (Links to an external site
MGT 435 Week 1 - Discussion Forum 1
Examples of Organizational Change
Prior to beginning this discussion forum, view the following video, Top 5 Organizational Management Strategies – How to Manage Transformational Change (Links to an external site.).
We have all watched organizations around us change in response to technology, legislation, consumer demand, pandemic, and other factors.
Provide an example of an organization that has changed for the better and define how this transition benefited its customers, employees, and investors. Utilize the concepts provided within the video and the text when analyzing the change outcomes.
Your initial post should be at least 200 words in length. Support your analysis with a minimum of one resource in addition to the video and the textbook. Properly reference and cite your resources.
A company that made a significant organizational change was Siemens, a major multinational company based in Germany. Spread around the world, Siemens had become accustomed to using bribes to facilitate and grow their business as this was permitted, and even tax-deductible in Germany up until 1999 (Dess et al., 2012). This represented what Kimberling (2021) referred to as an external factor that forced changes within the company. Unfortunately, key players in the company, including the CEO, did not react well to the required changes, and a bribing scandal forced out prominent leaders – including the company CEO (Dess et al., 2012).
Outsider Peter Löscher was brought in to turn things around and change the status quo in the company. As Weiss (2016) suggests, Löscher analyzed the company and determined that there was a severe lack of customer orientation in the company. However, since he was new, he lacked the traditional formal power base that most CEOs have in a company (Dess et al., 2012). As a leader, he did what Kimberling (2021) suggested and determined where he wanted his organization to be in the future. Based on that assessment, he determined that customer orientation was vital, and analyzed Outlook calendars for his division CEOs and board members to determine how much time they had spent with customers, then ranked them (Dess et al., 2012). Using this information, he determined that he had spent over 50% of his time with customers – far more than those running the business divisions. He used this as “peer pressure” as no one wanted to be embarrassed, which improved customer orientation in the company.
References
Dess, G. G., Lumpkin, G. T., Eisner, A. B., & McNamara, G. (2012). Strategic management: Text & cases (7th ed.). McGraw Hill Education.
Weiss, J. W. (2016). Organizational change (2nd ed.). Retrieved from https://content.uagc.edu/