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Meaning:
Organizational change is a structured approach in an organization for ensuring
that changes are smoothly and successfully implemented, and that the lasting
benefits of change are achieved. In the modern business environment,
organizations face rapid change like never before. Globalization and the
constant innovation of technology result in a constantly evolving business
environment. Recent phenomenon like social media and mobile adaptability
have revolutionized business and the effect of this is an ever increasing need for
change, and therefore change management. The growth in technology also has a
secondary effect of increasing the availability and therefore accountability from
knowledge. Easily accessible information has resulted in unprecedented
scrutiny from stockholders and the media. prying eyes and listening ears raise
the stakes for failed business endeavors and increase the pressure on struggling
executives. With the business environment experiencing so much change,
organizations must then learn to become comfortable with change as well.
Therefore, the ability to manage and adapt to organizational change is an
essential ability required in the work place today.
Due to the growth of technology, modern organizational change is largely
motivated by exterior innovations rather than internal moves. And when these
developments occur, the organizations that adapt quickest create for themselves
a competitive advantage. Meanwhile the companies that refuse to change get
left behind and this can result in drastic profit and/or market share losses.
Organizational change directly affects all departments from the entry level
employee to the upper management. With recent developments like social
media marketing and smart phone applications, the entire company must learn
how to handle these new changes to the organization. Whether its the CMO
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This is the kind of change that is disruptive and often forces organizations to
reorient themselves without adequate notice and warning. It is better for
organizations to anticipate change rather than be forced into accepting change
that is rapid and sudden.
We have seen how managers at different levels resist change and how this
resistance manifests itself. Apart from the ideological and personality issues,
there is the very real possibility of change being resisted because the visibility
of what comes next is not clear. For instance, many managers tend to resist
change because the change initiators have not clearly spelt out the outcomes of
the changes and the possible impacts that such changes have on the
organization. This is the realm of the known unknowns and the unknown
unknowns which arise because of ambiguity, complexity and uncertainty.
Hence, the resistance to change can come about due to the lack of coherence in
the vision and mission and because the change is not clearly communicated as
well.
Finally, the rapidity with which change is introduced can upset the organization
structures that are usually rigid and bureaucratic with bean counters at all levels
resisting and actively thwarting change. Hence, it needs to be remembered that
change initiators take into account all these factors when introducing changes.
ways in which they can manifest their resistance to change ranges from citing
time pressures and constraints involved in implementing the change, citing
operational pressures in bureaucratic and mechanistic organizations where the
rigid structure does not lend itself to change and finally, by pointing out earlier
instances of change that have failed. The point to note is that it is human nature
to be comfortable with the status quo and hence barriers to organizational
change are psychological more than anything else.
In the case of senior managers, the barriers to change arise because they
would want to protect their turfs, resist change because it has been initiated
by a rival power group and finally, there is a tendency to resist change
because the senior managers do not see a role for them after the change is
implemented.
It needs to be remembered that while bad strategies result in failed change
initiatives, good strategies without proper execution and implementation lead to
the same result. Hence, it is not enough to have a good strategy in place if there
is no viable means of execution and implementation.
When we discuss about the barriers of change from senior managers, we need to
distinguish between the levels of managers. This is necessary as the barrier to
change is different at each level. For instance, the front line managers often
resist change because they fear for their positions post change. Since these
managers are vulnerable to the changes wrought by technology where their
positions become obsolete because of automation, the front line managers tend
to resist change because of this aspect. The front line managers might also be
disinterested in the change if it does not impact the day to day workings or the
operational issues. This is the case of the distance between the change
initiators and the operational managers that can result in the change being
remote and the front line managers being unconcerned with the change.
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The middle level managers who form the sandwich between the workforce
and senior management have a pivotal role to play in change management
initiatives as they are the ones who communicate the changes to the workforce
and in turn have to report on the success or otherwise of the initiatives to the
senior management. These middle tier managers often resist change because of
inertia and a status quo mentality which makes them impervious to new
realities. It is a fact that the middle tier managers in bureaucratic or machine
structure organizations have a lot from continuing with the status quo because
of the tangible and intangible benefits that accrue to them.
Finally, and most importantly, the managers in the upper echelons tend to resist
change because they have personal fiefdoms that they protect jealously. Further,
they have big personalities because of which the possibilities of ego clashes
among the top management are very real. In cases where the change is initiated
by one faction, the rival faction tends to oppose such change purely on
personality issues alone. It is also noteworthy that senior managers and
managers at all levels exhibit tendencies that are described in theory as value
enhancing or utility maximizing (the so-called agency problems) which
would make them behave in ways contrary to the interests of the shareholders.
These are some of the characterizations of the levels of managers and their
tendencies to resist change.
Why Some Organizations are Better at Driving Change ?
We live in a world where increasing complexity is the order of the day and the
business landscape is characterized by a rapid turnover of companies which find
themselves dethroned from their position because of outmoded thinking or
anachronistic strategies.
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For instance, Nokia and RIM (the maker of Blackberry) were at the top of the
leading mobile companies a couple of years ago. Now, their places have been
taken by Apple and Samsung because both Nokia and RIM got bogged down
due to a combination of internal problems as well as the failure to spot changing
trends. They could not foresee the trends which indicated that mobile phones
would be used for purposes very much different from making and receiving
calls and instead they would be used in ways that would revolutionize the
concept of mobiles as one-stop solutions for a wide variety of consumer needs.
In other words, these companies were victims of complexity.
To deal with complexity and uncertainty, companies need to shift the lens with
which they are viewing the business landscape and hence change according to
the situation rather than have long term strategies based on fixed notions or
projections that become obsolete within months. Change management in these
cases becomes critical and not just necessary or essential. And to adapt to
change, there needs to be a mindset and attitude change rather than plain
business strategies. The mindset change is something that needs the top
management to actively involve themselves in winning the hearts and minds
of the employees and the other stakeholders. Only when there is a buy-in
from the employees to the change initiatives being undertaken by the
management can they succeed.
The example of the legendary founder of Apple, the Late Steve Jobs is an
excellent case in point as to how charismatic CEOs can go about winning the
hearts and minds of employees. Jobs was not only instrumental in turning
around Apple Inc. from near bankruptcy to a leader in the industry, but also
ushered in a paradigm shift as to the way in which the computing and software
industry operated. Another example is the case of Google which has made the
organization of information its business and has ensured that the way in which
we function everyday has been transformed. In both cases, the CEOs could
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inspire and motivate their employees to believe in their vision and by dint of
hard work and diligent attention to detail, they succeeded in being change
agents.
These examples show how change can be initiated in response to ever changing
and complex scenarios that business leaders face. What are needed are a
compelling vision and a fresh way of looking at issues. Once the vision is
articulated, there needs to be a push to reframe the issues and look at problems
in a new light. Making sense of complexity becomes easier if the strategies are
rethought according to changing circumstances. In conclusion, we need not
succumb to complexity and instead use it to drive change that is lasting and
beneficial to the company.
Role of Catalysts in Organizational Change
The other articles in this series on Change Management have listed the business
imperatives for change as well as the various barriers to change that arise from
internal and external resisters. In this article, we examine the other side of
driving change and that is to do with the role of people who can act as catalysts
in driving change.
Every organization has high performers and those who are steady as well as
those who make up the bottom of the performance chart. Though it is not
necessarily the case that the top performers are the ones who should drive
change, more often than not, that is the case. However, there might be pearls
waiting to be discovered as well.
The broader point that we are making is that management and the HR
department must institute a program that would identify potential change
agents who can act as catalysts for the change initiatives which the
management might be planning.
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the key power centers in the organizations are on the same page as the
management.
Second, have execution clarity, which means that the top management knows
what it wants and how it should go about actualizing change. The message of
change must be lucid and coherent and the senior as well as the other layers of
management must think through the change process. Third, create a critical
mass of enabled leaders who would carry through the change and who know
what exactly the change entails and how to go about it.
Fourth, the senior management must realize that in unity lies strength and
hence, must build a cohesive organizational culture that does not fray at the
edges or is hollow in the middle. In other words, there needs to be a sense of
purpose about the change process and how it must be actualized by all levels of
management. Fifth and finally, the Project Management Office and the
Governance structures responsible for change must articulate, implement, seek
feedback, and close out the change process as well as plug any leakages. The
important point to note here is that the PMO must be vested with full powers to
implement the change and as happens with economies and politics, governance
mechanisms in organizations must not be clogged. In other words, the
organizational arteries must be clear and free from appendages. If these
elements of the change management process are taken into account, actualizing
the change would be relatively easy.
Finally, the whole point of the change program must be to engage with the
employees at all levels and ensure that the change management program
targets the core of the organizations competencies and vision and mission.
In conclusion, change management programs can only succeed when these
elements are conjoined together to create a coherent and understandable
narrative that the employees can relate to.
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For change to happen, it helps if the whole company really wants it. Develop a
sense of urgency around the need for change. This may help you spark the
initial motivation to get things moving.
This isn't simply a matter of showing people poor sales statistics or talking
about increased competition. Open an honest and convincing dialogue about
what's happening in the marketplace and with your competition. If many people
start talking about the change you propose, the urgency can build and feed on
itself.
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Hopefully, your staff wants to get busy and achieve the benefits that you've been
promoting.
But is anyone resisting the change? And are there processes or structures that
are getting in its way?
Put in place the structure for change, and continually check for barriers to it.
Removing obstacles can empower the people you need to execute your vision,
and it can help the change move forward.
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Launching one new product using a new system is great. But if you can launch
10 products, that means the new system is working. To reach that 10th success,
you need to keep looking for improvements.
Each success provides an opportunity to build on what went right and identify
what you can improve.
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History
Masaru Ibuka, the co-founder of Sony.
In 1945, after World War II, Masaru Ibuka started a radio repair shop in a
bombed-out building in Tokyo. The next year, he was joined by his colleague
Akio Morita and they founded a company called Tokyo Tsushin Kogyo K.K.,
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(1965)
which was representative of the Solid State Eleven. Its chic design and
unprecedented advanced sensitivity made the TFM-110 a top seller.
(1975)
1976
1995
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1997
ICF-B200 Emergency radio with built-in manual power generator. Just turn
the handle to charge the internal batteries.
2000
Japan. It employed 163,000 people as on March 31, 2007. The group recorded
revenues of JPY8,295,695 million (approximately $70,355.8 million) during the
fiscal year ended March 2007, an increase of 10.5% over 2006.
The increase was driven by strong sales within the electronics, game and
the pictures segment. The operating profit of the group was JPY71, 750 million
(approximately $608.5 million) during fiscal year 2007, a decrease of
68.3% compared with 2006.The net profit was JPY126, 328 million
(approximately $1,071.4 million) in fiscal year 2007, an increase of 2.2%
over 2006
Strength
One of Sonys greatest strengths is their ability to produce innovative, quality
products. Sonys web page states Sony innovations have become part of
mainstream culture, including: the first magnetic tape and tape recorder in 1950;
the transistor radio in 1955; the worlds first all-transistor TV set in 1960; the
worlds first color video cassette recorder in 1971; the Walkman personal stereo
in 1979; the Compact Disc (CD) in 1982; the first 8mm camcorder in 1985; the
Minidisk (MD) player in 1992; the PlayStation game system in 1995; Digital
Mavica camera in 1997; Digital Versatile Disc (DVD) player in 1998; and the
NetworkWalkman.digital.music.player.i.1999.(Sony.com/en/corporate).
PC World published The 20 Most Innovative Products for the Year 2006. Sonys
Reader was listed as number six and Sonys PlayStation was listed as number
sixteen. Sony Corporation has managed to be competitive and stay a powerful
organization by learning from past failures. Sony states the following: Sony
has learnt much from previous unsuccessful products. The Sony MSX home
computer, for example, did not attain a satisfactory level of success. But it did
teach Sony development engineers valuable know-how that would be applied in
later years. In effect, these engineers became living resources, representing
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latent power within Sony that did not exist in other AV companies (Sony.net).
Another strength of Sony is their ability to be successful in several different
markets. They have made an impact in the video game market, the PC market,
and especially the television market and there are still numerous others.
The greatest asset of Sony is of its human capital, especially its engineers which
make up the R&D department. Their constant innovation is crucial for a
consumer electronic firm which specializes in audio-visual equipment and the
higher profit margin, which comes from being the leader of the pact.
Subsidiaries are also well established, such as in the United States and Europe
which give Sony a distinct local hands-on knowledge of the local market. It also
makes Sony an international corporation, bringing together the talents and best
of strategies of both world to the organization. Besides the employees, the two
founders, Ibuka and Morita also legends in their fields which they create vision
and sense of direction for the organization. They also acts as bridges between
the employees and the management.
The self promoting system and job rotating systems creates satisfaction for
employees and give them greater exposure to all aspects of the business. Ideally,
this would produce better products as engineers gain knowledge on consumer
needs while marketing people engaged in the production and can give their
point of view.
The goodwill of the company among the consumers is one of the biggest asset
of Sony corporation. the general image of the company is it a big company
with huge experience in every field they are in ,provide high quality products,
very expensive and best product.
Distribution network of Sony and all its subsidies id world class.
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Showrooms made exclusively for the Sony products are very exclusively made.
Which makes a customer entering it get caught spirit of Sony and feels
completely dragged by it.
Weakness
Sonys biggest and most recent weakness is their lack of innovation with PS3.
Sony focused on digital technology when building the PS3 and it has the ability
to export video in high-definition. But this technology can only be viewed on a
high definition TV so a lot of people will not even be able to see the full
potential it has to offer. Another downfall to the PS3 is the price, which Sony
has recently lowered by $100. Yet the weakness of the PS3 is even deeper when
considering the range of video game selections. The majority of games available
are all first-person shooter games, which appeal to a particular market. There
are few games that appeal to a different section of video gamers. Sony
executives made it clear that they know they need to do more than lower prices
to
woo
consumers
back
to
its
flagging
video.game.brand.
Opportunities
Sony seeks a lot of opportunities that utilize their strengths of innovation. At
Sony Ericsson, design is about more than just a good looking product: it is
integrated into every step of the process intelligent features, user-friendly
applications, innovative materials and, of course, attractive visual appearance.
Design is the essential differentiator when comparing mobile communications
products.
Sony's Reader, a device the consumer-electronics giant hopes is an early draft of
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how the world will read books in the future, is another innovation that Sony is
using as an opportunity to enter a new market. The downloaded books generally
cost 20 to 30 percent less than their dead-tree counterparts,
One of the other CSL projects most likely to succeed was a nifty little piece of
graphics software for cell phones by Ivan Poupyrev. It might not sound like
much, but the ability to draw realistic icons and avatars directly on a standard
(non-touchscreen) phone is sure to add.Appeal.To.users.of.mobile.socialnetworking.sites.
.
Threats
A common threat facing any company in sales is competition. Sonys Vaio is its
newest innovation in notebook computers. The various models range in price
from $845 - $2300. However, Dell has a great reputation when it comes to
laptops similar to the Vaio and has a broader range of notebooks to choose from,
not to mention that Dell has also been a top seller when it comes to desktop
computers. Additionally, the cost of a Dell notebook computer seems to have a
lower
price
tag
than
many
of
Sonys
Vaio
models.
Sonys top competitors in the gaming industry are Nintendo and Microsoft.
In the LCD television market, Sony excels but still faces some strong
competition, including Samsung, Sharp, Panasonic and more. Many of these
same brands appear in the DVD player.market.that.Sony.has.to.compete.with.
Competition isn't the only threat Sony is facing. Sony most recently had to
make a public apology concerning the use of a backdrop in a violent video
game, "Resistance: Fall of Man." Sony used the Manchester Cathedral in
northwest England in this video game, which features a bloody gun battle scene
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between American soldiers and aliens. Sony made a formal, public apology on
July 6, 2007. However, when asked to withdraw the game or make donations to
community groups, they have refused.
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effective in finding the root cause of the problems, making the best decisions and solutions
and averting tragedy for Sonys survival and prosperity. Its theory also can enable Sony to
achieve a sustainable competitive advantage over rivals. Therefore, through the problems of
study for Sony, the present paper discusses how to think critically about business problems,
and devise and implement the remedies for overall
1D Form a Team Establish a Sony group with cross-functional. The group of people
selected should have key competence connected to the current Sonys problems and be from
different areas of knowledge and expertise.
2D Describe the Problem In is in this step important to redefinition and re-map the Sonys
problems. Describe these two problems in a measurable quantitative terms by the tools such
as the 5W1H (Who, What, When, Where, Why, How). The Sony group should review the
data to find overall reasons behind its failure and to why the problems occur, aims at resolve
them.
3D Implement and Verify Short-term Corrective Actions In order to prevent these two
problems becoming bigger or spreading, define and implement an intermediate actions until
the permanent corrective action have been taken.
4D Define and Verify the Root Cause In this step all potential root-causes to the problems
should be identified, explained and structured why the problems occurred by the support of
applicable methods or tools such as a brainstorming session, Ishikawa, Fishbone, etc. Finally,
identify alternative solutions to prevent root causes for further investigation in next phase.
5D Verify Corrective Actions Confirm and evaluate that the chosen solutions will resolve
the Sonys problems and without causing new problems in this phase. It can help the Sony
group through compare to verify some of solutions might not work or are causing the risks
about new problems.
6D Implement Permanent Corrective Actions In this step the major task is to implement the
actions that were chosen in the previous step against Sonys problems. The Sony group
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should establish a detailed implementation plan, so that it is clear everyone commits to the
work.
7D Prevent Recurrence Monitor the problems afterwards to explore any possible
recurrence of the problems and without causing new problems in order to make ensure that
the permanent corrective actions implemented to solving the root causes of the problems. 8D
Congratulate the Team Once these two problems are successfully resolved it is important to
recognize what the team has accomplished, share their knowledge and expertise and give
them praise for their collective efforts.
solution is that creating new businesses units and pursuing new market fields to accelerating
innovation (Kaz, 2012).
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1. INTRODUCTION OF COMPANY
Eastman Kodak Company, commonly known as Kodak, is an American
technology company focused on imaging solutions and services for businesses.
The company is headquartered in Rochester, New York, United States and
incorporated in New Jersey. It was founded by George Eastman in 1888. Kodak
provides packaging, functional printing, graphic communications and
professional services for businesses around the world. Its main business
segments are Digital Printing & Enterprise and Graphics, Entertainment &
Commercial Films.
SUCCESS YEAR OF KODAK
Kodak is best known for photographic film products. During most of the 20th
century Kodak held a dominant position in photographic film, and in 1976, had
a 90% market share of photographic film sales in the United States. The
company's ubiquity was such that its tagline "Kodak moment" entered the
common lexicon to describe a personal event that demanded to be recorded for
posterity.
Kodak began to struggle financially in the late 1990s as a result of the decline in
sales of photographic film and its slowness in transitioning to digital
photography, despite having invented the core technology used in current digital
cameras. 2007 was the most recent year in which the company made a profit.
However, Kodak ended its most recent fiscal quarter reporting a $19M profit.
As part of a turnaround strategy, Kodak focused on digital photography and
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film camera concepts that he later sold to Eastman. Houston, who started
receiving patents in 1881, was said to have chosen Nodak as a nickname of his
home state, North Dakota (NoDak). This is contested by other historians,
however, who note that Kodak was trademarked before Eastman bought
Houston's patents
EVOLUTION OF BRAND LOGO
Early 1900's. Kodak is the first company to integrate its name and look into
asymbol.
1930's. Focus moved to the Kodak name and the red and yellow "trade dress"
color.
1960's. The corner curl was introduced.
1970's. The mark retained the red and yellow colors and the Kodak name, but a
box and graphic "K" element were added.
1980's. A more contemporary type font streamlined the Kodak name within the
existing.logo
Today. The box is gone, simplifying the logo. The rounded type font and
distinctive "a" give the name a more contemporary look. Kodak is continuing
to use this logo with its sharpened focus on imaging for business.
PRODUCTS OF COMPANY:
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4. Eyeglass Lenses
These advanced technological lenses optimize your sight while maximizing
your look with all the latest styles in frames. Head to your local KODAK Lens
Vision Centre to have your lenses prescribed and fitted by an independent
expert.
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inkjet papers, document papers, specialty inkjet media and software to meet the
needs of families and professionals.
souvenir
photography
services
and
solutions.
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For weeks, rumors have swirled around Rochester, the company town that
Kodak still dominates, that unless the firm quickly sells its portfolio of
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If Kodak starts to compete on price, they run the risk of transforming the
category into a commodity.
Sell on brand equity and image promise consumers that although they cant
see perfection, it exists
Kodaks existing buyers are predominantly brand-loyal giving them a
lower-priced Kodak branded option could subsume higher-margin lines
Instead of Royal Gold, disambiguate the two Gold lines and rename Ektar
as Kodak Platinum and Kodak Gold Plus as simply Kodak Gold. By having
Gold and Platinum, the company clearly communicates quality differences to
the consumer
Widen channels - Distribute Kodak Platinum through all the channels, not
only through camera shops.
Launch an advertising campaign that emphasizes long-term quality over
short-term savings and educate the consumer.
The company should focus its efforts on innovation in all product lines,
thereby justifying and maintaining its premium market position. Innovation
is the only way Kodak can fight their product becoming a commodity.
Product launches may be supported by promotional activities and materials
that further educate the consumer about the superiority of Kodak products.
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CONCLUSION
Organisayional chnage is important to the survival and development of an
organization. The process involves its effective and proper implementation.
Organizational chnage are not easy for most organization, but there are many
theories, approaches, models, technologies and tools to support this process to
implement as result in better more effective solutions.
Effective organizational change is designed to requires careful identify, analysis,
diagnosis, evaluation and step-by-step action planning.
Therefore, organizational change in an effective way can be the key to a more
productivity in any organization.
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BIBLIOGRPAHY
BIBLIOGRAPHY:
http://wendell L.French Cecil H.Bell, jr
http://www.jstor.org/pss/256595
http://arjournals.annualreviews.org/doi/abs/10.1146/annurev.psych.50.1.361
http://www.scribd.com/doc/21556594/Change-Management-Lewins-3-Step-Model?
secret_password=&autodown=pdf
http:// management paradise.co.in
www.google.co.in
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