Organisational Change is vital for the success of any firm. Organisational change involves the repositioning of processes and systems of an organisation (Business definition for Organizational change 2009).
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Change at Boeing
This case revolves around Boeing which is an airlines company. The company is going through a crisis because of the improper behaviour of its officials. As a result, the company is forced to introduce certain changes to tackle this crisis effectively.
In 2003 Boeing was caught in a scam regarding the Pentagon deal and it was about the improper behaviour of the company’s officials. Phil Condit who served as the head of the organisation quitted the company. Many employees were delighted at his resignation. But problems again started cropping up. This prompted the company to implement certain changes which were inevitable for the success of the company.
The Beginning of Change At Boeing
In 1997 the demand for the products of Boeing enhanced and to cater to this increased demand the company increased its production. A manufacturing crisis occurred and the company was forced to stop production for some days.
So an all-out effort was made by the company to increase the company’s efficiency. The main objective of this policy was to concentrate more on production and costs. The strategy adopted by the company for cost reduction was to make their technology systems up to date and to restore supplier relationships. However, Boeing merged with McDonnell Douglas to enhance defence contracts. This merger again opened up problems for Boeing. McDonnell’s culture was different from Boeing’s and this was the main reason for the problem.
When Technology Became an Issue
Boeing tried to improve their reputation by improving its production. Boeing introduced the process of automation. Boeing also focussed more to improve the flow of communication between the employees of Boeing and the suppliers of Boeing. Boeing introduced a web-based procurement system that provided suppliers to closely watch levels of stock and to refill supplies when supplies fall (Chapter 5: diagnosis for change n.d.). Steps to manage organisational change:
First of all, the company should have a clear understanding of what it should achieve.
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Secondly, the company should analyse the present situation. The analysis should be precise and honest.
Thirdly the company should make out an assessment and the goals of the objectives for which the company is working. Where does the company want to see itself in the future? Fourthly the company should know what needs to be done to achieve these objectives. Finally, the company should be clear about the process that will be used to achieve these objectives. (Tobak 2009).
- Business definition for: Organizational change 2009, BNET Business Dictionary.
- Chapter 5: diagnosis for change: case study Boeing41: the beginning of change at Boeing n.d., (Provided by Customer)
- Tobak, S 2009, How to manage organizational change, BNET, Web.