Introduction
Organizational culture forms the basic structure and ethos of every organization. It is the shared understanding of how people within an organization interact with each other. Schneider Electric India’s culture is a blend of traditional and contemporary values. Before onboarding Samir Mishra, the culture was dominantly hierarchical, where seniors were the decision makers and employees had little say in how activities were run in the company (Panda et al., 2017).
The employees were expected to complete their tasks without any input or guidance from management. As a result, productivity was low, and there was a sense of demotivation among the employees (Panda et al., 2017). However, the organizational culture improved when Mishra joined the company. The company’s culture was transformed from a hierarchical structure to a more collaborative one.
Mishra stressed the importance of involving employees at every decision-making level and encouraged them to provide suggestions for cutting costs and improving efficiency (Panda et al., 2017). He created a sense of purpose and direction in the employees through team-building exercises. This allowed him to identify areas of improvement and implement changes to improve the company’s production quality.
Problem
The organization faced a mindset change riddled with resistance by managers who saw the change as a threat. Managers who used to work in a certain way found it challenging to adapt to the new management style and were reluctant to embrace the change in corporate culture. Additionally, the lack of communication and coordination among the various departments led to confusion regarding implementing critical decisions and, as a result, poor-quality products and unmet targets.
Implications of Problems
Having a complacent management team that is resistant to change and poor communication and coordination among the various departments have detrimental implications for Schneider Electric. First, accountability is hindered as there may be bottlenecks in the flow of products from one department to another, resulting in decreased productivity. A receptive mentality on the part of the employees is necessary to enhance production and efficiency levels within the company. (Mair, 2021).
Secondly, poor coordination between different departments can lead to mistakes in production which can negatively impact the company’s bottom line. Furthermore, a lack of communication between the management and the employees can result in a toxic work environment which can negatively affect the employees’ morale and ultimately affect productivity and profitability. (Mumby & Kuhn, 2019) Lastly, product quality may be compromised because employees may have different perceptions of what constitutes a quality product and may implement their standards.
Solutions
Initiatives to foster communication and improve coordination among departments within Schneider Electric would aid in improving the organization’s performance and allow it to achieve its strategic objectives. By holding regular employee meetings, receiving feedback, and shuffling workers in production lines, the company can ensure a seamless flow of work, thus ensuring optimum efficiency. (Saha & Sharma, 2020).
Moreover, offering training programs to enhance employee skills and create a more harmonious working environment will help to create a more productive workforce (Zhong et al., 2021) This will, in turn, lead to increased efficiency and better customer service satisfaction. Implementing such a program will be instrumental in boosting the company’s growth and performance in the long run.
To achieve operational efficiency, Schneider Electric needs to carry out radical changes in the management and communication of its workforce. The organization’s structure and communication strategies must be redesigned for a more streamlined, coordinated effort. This would enable workers to develop a sense of ownership and commitment to the organization’s objectives, something they’re inept about and thus has been unmotivated to perform optimally. (Mumby & Kuhn, 2019)
It would also help them to understand their roles in the organization and become more motivated and productive. To effectively accomplish this, employees should be encouraged to participate in all decision-making processes concerning the business. Management should be readily accessible to them for any questions or concerns. In this regard, Mishra spearheaded the development of a new culture of openness and employee empowerment at the Rudrapur plant (Panda et al., 2017).
Conclusion
In summary, managers must be receptive to change, adhere to an open-door policy, be available for questions and display empathy to the needs of their staff (Mumby & Kuhn, 2019). Hence, managers who are complacent and are against any proposed changes should be dismissed immediately from their positions because they pose a threat to the organization’s future success.
Furthermore, managers should embrace constant communication between themselves and employees, something they lack, and opt for authoritarian leadership. This is necessary to keep them up-to-date with company developments and plans to help them better understand their roles and responsibilities. This also ensures concerns from employees are addressed in a timely and efficient manner, which is essential to maintaining a cohesive working environment and enhancing staff morale. Hence, these changes would foster greater accountability and productivity among employees and drive the overall performance of Schneider Electric.
References
Mair, J., & Seelos, C. (2021). Organizations, social problems, and system change: Invigorating the third mandate of organizational research. Organization Theory, 2(4). Web.
Mumby, D. K., & Kuhn, T. R. (2019). Organizational communication: A critical introduction (2nd ed.). Sage Publications.
Panda, A., Jain, A., & Mishra, S. (2017). Schneider Electric India: Leadership challenges. Ivey Publishing.
Saha, S., & Sharma, R. R. K. (2020). The impact of leaders’ cognitive style and creativity on organizational problem-solving. Benchmarking: An International Journal, 27(8), 2261-2281. Web.
Zhong, B., Makhija, M. V., & Morris, S. (2021). Abstract versus concrete: How managers’ construal influences organizational control systems and problem solving. Organization Science. Web.