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Cultural Influences and Managing Organizational Change and Development

How Did the Organization Handle Change

Change is a way of life and is intrinsic for existence and growth of human society. It is also essential for corporate performance in order that companies align themselves to face competition in a fast changing world. Globalization and more effective deployment of e-commerce, including internet, has introduced sea changes in the conduct of business enterprises, and individuals often sub serve their personal and professional goals in order to meet corporate objectives.

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It is seen that organizational restructuring is a major aspect in modern business and is used primarily to make products, services and utilities more competitive in the market place, enter into new markets and bring out innovativeness and attractive features in products in order to capture larger market share as compared to rival firms. In today’s world companies cannot remain stagnant.

“Organizations are not static, but continually change in response to a variety of influences coming from both inside and outside.” (Vecchio 2006, P. 366).

This Company also entered into restructuring phase in which it became necessary to eliminate superfluous products and loss incurring procedures and develop new productive lines of businesses. As a result of this restructuring plan, the entire marketing department underwent a metamorphosis with the Head of Marketing Operations taking charge of overseas dept in Headquarters at London and the deputy manager, taking additional responsibilities of sales in this region.

Through this change process, Executive S was given the full charge of Marketing in Asia, Pacific region by which he was made the recipient of beneficial change in the organization. He was also assigned with a team of twelve (12) middle level executives who had different market portfolios in the area and who reported to him. The middle level executives were given independent charge of their respective product lines and only reported results to the Manager. As a result of this restructuring, a lot of middle-level staffing was scrapped and strategic MBO (Management by Objectives) was achieved.

“It aims to increase the performance of the organization by matching organizational goals with the objectives of subordinates throughout the organization. Ideally, employees receive strong input to identify their objectives, time lines for completion, etc.” (Management by Objectives: Smart (Drucker). 2008).

It also affected large cost savings in terms of operational costs and unproductive expenses. The accent was now on results and productive conduct and the company’s results presented a lean, productive and disciplined outlook.

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What They Did Well

The organizational restructuring was conducted by a group of outside, professional consultants, accredited and experienced in this form of internal restructuring. In the first Stage, they studied the present marketing scenario in terms of client servicing, Market Share of the company, benefits and deficiencies of using present product lines, Aspects of customers servicing, complaint records, including the types and magnitude of Customer complaints at the second Stage, They also interacted with all the marketing staff, executives and Managers of the company, including other functional heads like Finance and Admin, Personnel and HRD, Research and Development, whose functions dovetailed with that of the marketing department.

At the final stage, they also handled the Board of Directors of the Company and explained their proposed schemes to them. After minor alterations and modifications by the BOD, the scheme was approved and set forth for implementation.

In the final execution stage the consultants also provided technical know-how and expertise to functionalize the scheme and ensure its early implementation throughout the marketing department, and in effect, the entire company.

Thus it is seen that the Organization handled the restructuring activities excellently and provided all co-operation and assistance to the expert team. For executing the changes smoothly, without organizational problems or staff resistance, or other types of disapprovals from the employees.

The part that was done well was in terms of providing the members of the staff with a complete view of the need for corporate restructuring and the benefits and objectives that went into its administration for the common good of the organization.

As all organizations are well aware, wealth generation in primarily a marketing functioning , albeit a challenging one and the management had done an excellent job of ensuring that everything worked like a well oiled machine.

What Should Have Veen Done Differently

It is necessary that a corporate restructuring program of this kind should be seen on a long term basis rather than for the accrual of short term benefits that would evaporate after some time. Therefore it would have been necessary to also enlighten stakeholders and outside creditors regarding the proposed scheme and also take their approval. Moreover, it is also necessary that the financial departments consider the financial and accounting aspects of this capital project and submit their report based on projected facts and figures for a period of say, five years post, the restructuring process.

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The ethical aspects regarding provision of adequate financial cover for the people who have been displaced during this procedure also needs to be considered.

Finally the cost benefits analysis of the project needs to be done in order to view the situation in its correct perceptive.

While changes are necessary and usually beneficial in most cases, it is also necessary to ensure that changes need not be instituted that, in the long run, could prove more detrimental to the interests of the company than provide benefits to it. “Some experts refer to organizational transformation. Often this term designates a fundamental and radical reorientation in the way the organization operates.” (McNamara 2008).

These aspects need to be considered at the initial stages itself, and if necessary, different measures could be adopted to counter such threats and challenge, so that the long time organizational strategies are not compromised.


Vecchio, R. P. 2006. Organizational Behavior: Core Concepts (6th edition): Chapter 15: Managing Organizational Change and Development: Part 3: Organizational Structure and Dynamics, P. 366. (Book source).

Management by Objectives: Smart (Drucker). (2008). 12 Manage. Web.

McNAMARA, Carter. (2008). Basic Context for Organizational Change: What’s “Organizational Change?”. Free Management Library. Web.

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