Improving Organisational Communication at 2CheapCars: A Report

Desklib provides past papers and solved assignments. This report analyzes communication issues and organizational development at 2CheapCars.

DEVELOPING EFFECTIVE ORGANISATIONS ASSESSMENT 2 – REPORT
A Case Study of 2cheapcars
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Table of Contents
Introduction......................................................................................................................................3
Organizational Development Issue in 2CheapCars.........................................................................4
Problematise- Communication Gap.................................................................................................5
Values Added by Solutions.............................................................................................................7
Selection of Problem-solving Theory by 2CheapCars....................................................................9
Change Management Model..........................................................................................................11
Meet Situation, Strengths, and Weaknesses..................................................................................13
System Theory...............................................................................................................................15
Recommendations for 2CheapCars...............................................................................................17
Conclusion.....................................................................................................................................18
References......................................................................................................................................19
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Introduction
2CheapCars is the largest company of New Zealand engaged in the retailing of used cars. The
founders of the company are named as Yusuke Sena and Eugene Williams in June 2011. The
company initiated its operations at Auckland afterward it has been providing its services to more
than 14 locations all over the nation currently. The company is working with more than 100
employees in New Zealand and about 8 employees in Japan. The key branches of the company
are situated at Christchurch, Hamilton, and Dunedin, Botany Downs and Wellington and others.
The main business of the company implies the direct import of used cars from Japan that is
quality-passed. Apart from this, the company is also considered as the world’s largest company
engaged in the retailing of Japanese cars. The report will involve a brief description of the
organization development issues pertaining to 2CheapCars. Further, the issue will be
problematized for which the solutions will be developed. Kotter’s model and system theory will
also be applied to the issue of 2CheapCars. Moreover, certain recommendations will be provided
for the enhancement of the company’s organizational development.
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Organizational Development Issue in 2CheapCars
Organizational Development refers to the practice of study about the change as well as the
performance of an organization successfully. OD provides an approach that is innovative and
creative for the purpose of enhancing organizational effectiveness as well as planning
appropriately the vital changes within an organization. In 2CheapCars, it has been realized that it
has sold more than 14,000 cars on an annual basis across all the outlets situated at 14 locations
within the nation. Communication has always been critical for companies working with different
locations and nations. In 2CheapCars, it has been seen that the communication issue has emerged
between the head office and its different branches as well as the offices of New Zealand and
Japan. The implementation of OD can be done through two different ways, named a change
process of communication and through the assistance of software applications. Communication
is widely helpful in the successful attainment of OD within an organization. In the process of
implementing OD, the communication process will largely assist 2CheapCars in many ways
(Namada, 2018). The relationships between the people of the organization provide a foundation
for organization development. The common factor among these people implies as the purpose of
enhancing and maintaining the relationship of organization with its employees, customers, and
other stakeholders as well. The communication in OD focuses mainly on managing and
improving the human aspects of the organization.
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Problematise- Communication Gap
The concept of problematizing in OD involves the practice of considering an issue as a problem
that severely requires a solution. Considering the scenario of 2CheapCars, the problems
associated with communication can be considered significant for the company that requires an
immediate solution for reducing the consequences in the future. Communication gap can be
identified in the company from different perspectives. The key organizational aspects of
2CheapCars that are affected by the communication issue are comprised of decision-making,
sales, revenue, and ultimately the reputation of the company.
Sales and Communication
The key to successful sales in 2CheapCars can be stated as the ability for the collection of
significant information and providing it to the prospects in a way that can be transformed them
into the customers or partners for the company. It is vital to have good communication skills for
sales representatives and professionals as well for attaining desired and effective outcomes
(Dinu, Marei, & Pavel, 2017). Without communication, it becomes impossible to accomplish a
sales deal that ultimately affects the sales level of the company.
Revenue and Communication
Reduction in the sales level will ultimately lead to a decrease in revenue and profitability of
2CheapCars. With an inability to convey the correct message to the target audience, the company
faces certain consequences such as poor customer service, costly delays, and mistakes. In the
company, communication helps in developing collaboration and sound relations of revenue
department with other departments such as sales, marketing, and expenditure and so on.
Decision-Making and Communication
Effective decision-making takes place in 2CheapCars when every member actively participates
in the process. The absence of communication hampers the company in attaining the acceptance
of every member. In 2CheapCars, it becomes impossible to make effective and informed
decisions for the sake of the company without conducting proper communication (Schroeder, &
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Pennington-Gray, 2015). However, active participation in the decision-making requires the
respect of the views, opinions, and feedback of the participants.
Reputation and Communication
Without communication, conflicts are the key consequences in the company. These conflicts not
only affect the internal environment but also the external environment that leads directly to the
adverse impact on a company’s reputation. Improper communication or conveyance of the
message to the target audience largely attracts the negative publicity of the company. This
simply implies that proper communication helps in establishing a positive and good reputation.
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Values Added by Solutions
(Figure: Values Added for 2CheapCars by the Solutions)
(Source: By Author, 2019)
The main issue of 2CheapCars can be seen as the communication gap. This has not only
impacted the different branches of the company within the nation but also outside the nation with
Japan. Value added refers to the incremental aspect being provided for the products or services
before placing them to the customers. In the context of the current scenario, the value added is
the practice of providing something extra to the solutions before applying them within the
company. 2CheapCars has been dealing with the communication gap within the different
branches located at different locations within and outside the nation. The solutions that would be
provided for eliminating the impact of this issue would be fruitful for the company only when it
would provide additional benefits to the company. Following are the values that would enhance
the effectiveness of solutions in 2CheapCars:
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VAL
UES
Work
Efficienc
y
Improve
ment
Conflict
Resoluti
on
Decisio
n-
Making
Teamw
ork
Encoura
gement
Revenu
e

 Improvement in work efficiency: Current issue has been affecting adversely the work
efficiency of the employees and ultimately of the company. The solution should be
enabled enough for not only improving the work efficiency by changing the
communication process but also increasing organizational productivity.
 Conflict resolution: Improper communication has led to the development of numerous
conflicts within the management of 2CheapCars (Lumineau, Eckerd, & Handley, 2015).
Such communication leads to the promotion of confusion and misunderstandings that
creates a negative working environment within the company. The solution should have
the ability to resolve the management conflicts for enhancing positive work culture and
enhancing productivity.
 Decision-Making: Lack of communication impacts mainly the decision-making process
of the company. Therefore, active solutions require enhancing the decision-making
process by deriving to informed and effective decisions.
 Teamwork: Working in a team requires collaboration that can be attained with proper
communication only. Promoting teamwork within 2CheapCars is vital in order to
productivity improvement and getting desired outcomes. The solution should have the
capability to encourage the employees for teamwork that will also assist in maintaining a
positive work environment.
 Encourage: Development of a negative environment due to communication gap within
the company 2CheapCars has resulted in the downfall in employee morale. The solution
should motivate and encourage the employees for working positively with the team spirit.
It should provide encouragement to the employees for working beyond their capability
and skills (Demerouti, et. al., 2015) .This would also assist the employees in learning new
skills and tactics for the sake of the company.
 Revenue: It has been evident that the communication gap pertaining to the different
branches of the company has affected the revenue portion to a large extent. Revenue is a
necessary element for any company, irrespective of the size and nature, and so is for
2CheapCars. Revenue helps in different ways to the company such as profitability,
purchasing, and employees and so on.
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Selection of Problem-solving Theory by 2CheapCars
Considering the current scenario, 2CheapCars requires the implementation of a theory that can
provide an effective solution for dealing with the pertaining problem. The company selects its
theory for problem-solving by considering different aspects that are crucial for the company.
Following are the considerations vital for 2CheapCars in the theory selection for solving the
current problem:
 Variety of used cars: The key products of the company are used cars having quality and
varieties. The company deals in quality used cars by importing them from the car dealers
of Japan and selling them to the people of New Zealand and outside with insurance and
certain improvements. Theory selection requires considering the variety of used cars
within the company for reaching to the best solution.
 Employees: Employees are considered as one of the most significant and precious assets
for any company. For 2CheapCars, the employees or human resources are regarded as
key success factor (Shen, & Benson, 2016). The company employs different types of
employees engaging in various operations. The theory should involve the active
participation of all the employees of the company that would help in encouraging
employee motivation as well. This would also lead to the elimination of resistance to
change.
 Financial Cost: Financial cost is a crucial consideration as it directly affects the
profitability of the company. The theory should involve a low financial cost to reduce the
cost burden of organizational development and making it more efficient. It is necessary
for 2CheapCars to reduce the cost level in order to increment the company profits.
 Customers Always Changing: The business environment at the global level is highly
flexible where new changes emerge on a regular basis. The business environment is
largely constituted by the customers. The customers are highly changeable as their
preferences and choices are changed regularly due to the availability of various numbers
of similar products and companies. Many times, the switching cost of customers is very
low that affects the sales level of 2CheapCars.
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 Belong to Open System: 2CheapCars is engaged in the retailing of used cars in New
Zealand through direct importing from Japan. The company should necessarily follow the
organizational structure that is considered as an open system where the employees,
management and other stakeholders should be given opportunities for expressing their
views, opinions, and feedback (Schnackenberg, & Tomlinson, 2016). The theory should
be selected keeping in mind the open system that should not be affected.
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Change Management Model
For implementing change in an organization, it is necessary for every company to apply Kotter’s
model of change management. This model consists of 8 steps which would be applicable in the
organizational development of 2CheapCars. Following is the process of Kotter’s model of
change management within 2CheapCars:
Develop a sense of urgency: The initial step is undertaken by identifying the opportunities and
threats of the potential change in order to explain others the need for change implementation.
Establish a guide coalition: This step involves the team development of effective leaders for
providing assistance to the change implementation process within the company.
Forming a vision and strategy for change: The vision and strategy for a change in an
organization are developed in this step for identifying the difference between the past situations
and future situation of the company by the change.
Communicate the buy-in: Communication of vision and strategy to the stakeholders is vital for
managing and handling the issues and concerns regarding the potential change with their active
participation as well as honesty.
Empowering Action: This step involves the alignment of organizational structure and processes
with the organizational vision. The obstacles and people are identified that are the barriers in the
change implementation against which the actions are taken.
Develop Short-term Wins: Developing short-term wins in the initial stage of the change
implementation leads to an increase in employee motivation (Small, et. al., 2016). The short-term
wins are created for achieving a long-term goal. These wins are necessary to be attainable, cost-
effective and will possess lesser chances of failure than the long-term goal.
Do Not Let Up: This step is crucial for the identification of what was gone right and what needs
improvement. This step promotes largely the concept of continuous improvement wherein
identification and improvement should be made on a regular basis of the areas that went wrong
or that can be improved. This step requires the sustainability of change within the organization.
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Make Change Stick: This step ensures the incorporation of change within the organizational
culture and structure. The change requires becoming a central part of the organizational culture
along with getting visibility in every organizational aspect. The change should be implementing
continuously until it replaces the old habits for effective and desired outcomes.
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