HR management essay on: Types of changes in organization

IntroductionTypes of changes faced within organization

Due to high level of competition all across the world, one of the leading enterprise i.e. The Stanley Works operating in Australia has undergone various types’ changes. The changes which have been taken into account majorly takes into consideration People, Process, Structure as well as the technology.

The changes have affected the employees of the organization on a very large scale. The merger between the two main subsidiaries of the parent company i.e. Stanley Works have led to drastic cultural changes in the organization. The merger of the two subsidiaries i.e. Stanley Australia & Stanley Bo stitch has helped the employees of the company in order to carry the decision making process in a well defined manner (Cameron & Green, 2009). The employees of the organization have been given the liberty in order to take up the relevant decisions as well as be a part of the decision making. The insufficient communication amongst the US headquarters has led to a decreased involvement over the various changes which have been made during the change process (Hiatt, 2007).

Stanley Works situated in Australia refers to one of the leading manufacturers of hand tools. This organization consists of two major subsidiaries such as Stanley Australia & Stanley Bo stitch. The Stanley Australia majorly takes into consideration the manufacturing of the hand tools whereas the other subsidiary i.e. Stanley Bo stitch takes into consideration manufacturing of the fastening tools (Hiatt, 2007). The current employee strength of Stanley Australia is approximately 400 whereas Stanley Bo stitch has employed 150 employees. With the rise in the level of competition & parent company i.e. The Stanley works, Australia has thought to import their tools from Asia. This would help in order to reduce the cost & at the same time lead to an increase in the revenue generated (Cameron & Green, 2009).

1. Body

3.1 Type of change:There are various types of changes which have been inculcated in the organization. All the changes majorly take into consideration the four main aspects of the organization i.e. People, Process, Technology & Structure. Any minute change in any of the four aspects have affected the parent i.e. The Stanley Works & the subsidiaries i.e. Stanley Australia & Stanley Bo stitch (Hiatt, 2007).

The first type of change which was inculcated in the organization was in relation to the process which has been used by the parent company i.e. The Stanley Works Australia.

Changes in the Process:

One of the major effects which have affected The Stanley Works Australia has led to a change in the manufacturing process of the organization. The first change which would affect the organization would be to cease the manufacturing operations & club the two subsidiaries i.e. Stanley Australia & Stanley Bo Stitch. The cease of the manufacturing plant would take into consideration the closure of the four plants as well as sale of the fifth plant as well. One of the major effects of the organization, which would occur due to change in the process, would be in the product line of Stanley (Cameron & Green, 2009). The change in the process would also save approximately 90 jobs in the manufacturing process. The changes in the overall process would lead to huge levels of transformation in the parent company.The elimination of the manufacturing process would have drastic impact over the company. If the manufacturing process would be at halt, then the overall process for the parent company i.e. The Stanley Works Australia would be rewritten. The major focus of Stanley works would be to mainly purchase the material from overseas rather than buying of producing it on their own. This would help in order to increase the lead time as well as reduction in the overall response of the Australian hand tool market. Whereas, if we see the impact of the change in the process on an individual level, it could be seen that more career opportunities would come up in the field of marketing, warehousing, logistics & sales (Cameron & Green, 2009).

All the above mentioned were not practiced at Stanley & the adoption of the new processes led to loss of the jobs. Such type of changes has led to a change in the entire organizational level. With an increased level of stock, the organization had a major issue relating to the space available. This also led to a problem in relations to the health as well as safety system of the organization. In the year 1998, a fork lift ran over one of the employees. This led to high levels of injury, thereby leading to major foot problem for the employee (Hiatt, 2007).

The processes so adopted were quite technological advanced. Excessive use of the information technology would help the organization i.e. The Stanley Works Australia in order to reduce the lead time, to act more responsive towards the overall market. In order to use the technology, highly skilled people would be required to be recruited which would help the organization in order to use the IT (Cameron & Green, 2009) system in the most effective as well as efficient manner. With the help of this system, the organization would be able to act more professional (Filej, 2009), skilled as well as act more diverse in nature. The process so adopted would help The Stanley Works Australia in order to increase the productivity as well as enhance the workers efficiency & capability as well.

The second type of change which was inculcated in the organization was in relation to the people which have been used by the parent company i.e. The Stanley Works Australia.

Changes in People:

One of the major changes which under went in case of Stanley Works Australia was in regards to the change in people. When there was a change in the manufacturing process, its drastic effect could be seen with the elimination of the number of jobs. The changes which were quite prevalent in theis organization were not only in regards to the lower level of the management. It could be seen that, the CEO of the organization was also replaced (Cameron & Green, 2009).

The CEO, John Francis was replaced by Mark Parow from Dulux Organization. The major reason to replace the CEO of the organization was to build in a most dynamic as well as a self oriented atmosphere. High levels of sales & marketing was the main reason in order to benefit the organization. Hence, overall restructuring of the entire employee was to be practiced. This would help in order to eliminate all those employees who would not be able to match up with the new requirements (Filej, 2009).One of the major practices which were done by the organization was in regrads to adopt openess as well as honesty. Before all the changes were to be incorporated in the organziation, the vice president & the CEO of the organization, communicated the following chnages to its workeres even before disclosing it to the media. This shows the level of commitment which the top level of the organization had in their minds while dealing with the workers (Cameron & Green, 2009). The top level of the organziation communicated all the chnages to the workers in such a manner that, the workers weer well versed with what the changes were & how to deal with them. In order to overcome all the constraints, the parent company situated in US has practiced variety of maesures which would help the organization in order to overcome any type of misunderstanding between the employees. The employess who was over 50 years of age was given various types of consideration (Filej, 2009). Grief counselling networks were headed by a team of DSS & CES was implemented in the organization.

In order to reduce resistance, a three year agreement was being fixed by the organziation. The managemnt of the organization negotiated with its workers in order to retain tehm in the organization. This would help in order to motivate the employee to be at work. This would also increase the productivity of the employees at work thereby leading to an enhanced efficiency as well as effectiveness. Another way through which the company negotitade with their employees was to discourage them in order encash their medical or sick leaves (Hiatt, 2007).

In order to see whether all the measures undertaken were adopted properly or not, a hypothetical cost o a budget was formulated. This budget was then approved by the senior level management. Various factors such as absenteeism, disruption in the industry, dismissal of the cases were taken into consideration while formulating the budget. It was seen that the entire cost target were being met by the organization (Filej, 2009).

The third type of change which was inculcated in the organization was in relation to the structure which has been used by the parent company i.e. The Stanley Works Australia.

Change in the Structure:

Entire structural changes in the manufacturing organziation i.e. Stanley Works led to a change in the overall organziation. The entire manufacturing plant was divested. It was sold off completely. More emphasis was on the forecasting, planning as well as purchasing sector of the organization (Hiatt, 2007). Moreoevr, the marketing manager of the organization was divided amongst two varied directions such as a manger keeping hold of the entire mechanics section & the second manager keeping a hold over the builder’s tools & equipments. As mentioned in the beginning of the report that, the organization majorly wanted to enhance the overall sales as well as marketing section in the organization (Filej, 2009).

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