Master of Business Administration Change Management Report

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This report provides a comprehensive analysis of change management and people management within organizations. The report begins with an introduction to change management principles, emphasizing the importance of adapting to market demands and competition. It then presents a case study of Mercedes Benz in Malaysia, examining the company's change initiatives, including SEA I and SEA II, implemented to address declining sales. The analysis utilizes Bolman and Deal's four frames (political, human resource, structural, and symbolic) to assess the change. The report highlights the factors contributing to both successful and unsuccessful change within Mercedes Benz, such as collaborative functioning, leadership structure, and communication. The report also draws on relevant literature, and concludes by summarizing key findings and implications for effective change management in organizations.
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Running head: CHANGE MANAGEMENT AND PEOPLE MANAGEMENT
CHANGE MANAGEMENT AND PEOPLE MANAGEMENT
Name of the student
Name of the university
Author note
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1CHANGE MANAGEMENT AND PEOPLE MANAGEMENT
Introduction
Change in the organizations is commenced with the view of ensuring the enhanced
profitability and sustenance of the same. The subtle modifications that are initiated by the
organizations are reliant on the competition that is encountered by the same in adherence to the
needs of the same. Homburg, Jozić and Kuehnl (2017) noted that the modifications that are
initiated by the organizations are reliant on the assessment of the company’s position in the
external markets. However, Kompalla, Kopia and Tigu (2016) opined that the development of
the organizational culture and the alignment of the culture with the changes that are initiated by
the businesses has affected the potentials of the venture in continuing with the effectiveness of
the operations. The modifications that are initiated by the organizations are reliant on the
uninterrupted functioning of the systems through collaboration with the members. In this
relation, the research’s purpose is to identify the different modifications that are commenced by
Mercedes Benz in Malaysia.
Change management
The change management initiatives that are initiated by the organizations are reliant on
the specific urgency that is encountered by the same. The delineation of the needs of the
organizations is reliant on the assessment of the market situation and the competition that is
encountered by the same. Spiliotis et al. (2016) opined that the change management principles
that guide the modifications in an organizational level is reliant on the support and collaborative
functioning of the workforce. On the contrary , Matos Marques Simoes and Esposito (2014)
opined that the different modifications that are commenced by the organizations are reliant on
the assessment of the market situation and the contingencies that are encountered by the same
while sustaining. The modifications that are initiated by the organizations are reliant on the
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2CHANGE MANAGEMENT AND PEOPLE MANAGEMENT
delineation of the urgency that is encountered by the same. On the contrary , the changes might
be challenged by the workforce, which might restrict the potentials of the organization in
continuing with the effectiveness of the operations in adherence to the demand of the customers.
Lines et al. (2015)stated that the management of change in the organizational operations
supportss the ventures in coordinating the operations of the workforce and the manner in which
the same operates in the different markets. Therefore, the assessment of the change needs and
the coordination with the workforce supports an organization in improving the resource and
potentials of the venture while initiating the modifications in the processes. Lozano, Nummert
and Ceulemans (2016) noted that the development of the organizational processes support an
organization in enhancing the effectiveness of the operations while adhering to the demand of the
same. Therefore, the different modifications that are commenced by the ventures supportsed the
same in gaining a competitive benefit while operating in diverse global markets.
The dynamic potentials of organizations are reliant on the assessment of the
sustainability- based needs of the same while improving the operations in adherence to the needs
of the venture. Imran et al. (2016) opined that the knowledge of the organizations and the
application of appropriate frameworks in the processes supportss an organization in improving
the dynamic potentials of the same. On the contrary , Abrell-Vogel and Rowold (2014) opined
that consultation with the stakeholders before talking a change- based decision supports an
organization in maximizing the potentials of the same in ensuring the sustainable growth of the
same. The different modifications that are initiated by the organizations are reliant on the
uninterrupted functioning of the processes. Therefore, the different modifications that are
planned by the organizations are reliant on the assessment of the relevant information that is
being gathered by the organizations from the different sources.
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3CHANGE MANAGEMENT AND PEOPLE MANAGEMENT
Change in the organization Mercedes Benz
The urgency that is faced by the concerned organization, Mercedes Benz in Malaysia, is
reliant on the significant drop of car sales in the year 2013 with rising sales of BMW (Mercedes-
benz.co.in 2019). It has affected the interests of the concerned organization in continuing with a
sustainable business position in the markets. Therefore, the concerned organization aimed at
implementing SEA I, which supportsed the venture in maximizing the rate of car sales between
the years 2014 and 2015 (Mercedes-benz.co.in 2019). The range of modifications that are
initiated by the concerned organization supportsed the same in enhancing the workflow through
the implementation of skilled resources. Kompalla, Kopia and Tigu (2016) stated that the
identification of the urgency that is encountered by the organization supportsed ventures in
improving the course of actions and process design with the aim of continuing with the
competitive edge of the same.
On the contrary , the concerned organization also developed the SEA II project with the
purpose of sticking on the modifications in the organizational operations through the enhanced
rate of collaboration among the employees of the different departments. The project was initiated
in the year 2016, which aimed at supporting the diverse range of activities that are initiated by
the venture (Lye 2019). The modifications in the organizational processes supportsed the
venture in improving the dynamic potentials of the venture while enhancing the quality of the
automobiles and gaining a competitive edge in the market. On the contrary , the modifications in
the sales figure of the concerned organization supportsed the venture in achieving a competitive
edge in the Malaysian markets.
The changes were initiated by the organization with the purpose of aligning the core
values of the organization with the operations of the same while operating in Singapore,
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4CHANGE MANAGEMENT AND PEOPLE MANAGEMENT
Malaysia and Indonesia (Lye 2019). The alignment of the core values supportsed the venture in
continuing with the effectiveness of the operations while optimizing the utilization of the
resources. However, the alignment of the values resulted to the changes in the structure and
leadership of the venture. The changes in the structure and leadership units of the organization
were based on the implementation of a blended approach of vertical coordination and lateral
coordination (Mercedes-benz.co.in 2019). The changes in the organizational structure and the
operations supportsed the venture in continuing with the effectiveness of the operation that are
initiated by the venture while adhering to the sustenance related needs of the same. Therefore,
the changes supportsed Mercedes Benz in maximizing the rate of sales volume while ensuring
the competitive edge of the venture.
Bolman and Deal’s four frames in the change
Political
The enhanced power distance gap
between the management and the
workforce affected the potentials of the
concerned organization in continuing
with the change in adherence to the
competitive edge related needs of the
venture
The development of the different
activities that are initiated by the
management of the organization is not
based on consultation with the
Human resource
The concerned organization employed
skilled employees and engineers for
ensuring the effectiveness of the
different processes that are initiated by
the same
The skilled managers and leaders of the
concerned organization supportsed the
venture in guiding the operations of the
same while adhering to the sustenance
related needs
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5CHANGE MANAGEMENT AND PEOPLE MANAGEMENT
employees, which has affected the
potentials of the concerned organization
in adhering to the needs of sustenance.
The concerned organization developed
specific training programs for
enhancing the skills of the existing
workforce while empowering the same.
The motivated employees of an
organization supportsed the venture in
improving the resources with
adherence to the competitive
establishment needs of the same
Structural
The concerned organization has taken
steps to utilize a blended approach of
vertical coordination and lateral
coordination for enhancing the decision
making process of the venture. The
enhanced decision making approach of
the organization supportsed the venture
in continuing with the effectiveness of
the operations through development of
different activities.
The collaborative functioning of the
employees from the different
departments has supported the venture
in continuing with the effectiveness of
Symbolic
The positive culture of the concerned
organization supportsed the same in
optimizing the operations of the
workforce while adhering to the
different demand of the customers. The
different aspects of change that are
initiated by the organizations are reliant
on the uninterrupted functioning of the
systems.
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6CHANGE MANAGEMENT AND PEOPLE MANAGEMENT
the operations in adherence to the
demand of the customers.
Reason for Successful change
The success factors of the change that are initiated by the concerned o9rganization,
Mercedes Benz, is reliant on the collaborative functioning of the employees on the enhancing the
performance. Whyte, Stasis and Lindkvist (2016) noted that the collaborative functioning of the
different processes supportss an organization in enhancing the operations from production and
marketing to the final distribution. In this relation, the concerned organization aimed at utilizing
a blended approach of vertical and lateral coordination, which supportsed the venture in
improving the decision making potentials.
The enhancement of the decision making potentials of the organization supportsed the
venture in improving the potentials of the same in continuing with the effectiveness of the
operations in adherence to the demand of the venture. Homburg, Jozić and Kuehnl (2017)
opined that the enhanced decision making potentials of the leaders in an organization supports a
venture in enhancing the change management processes of the same. Therefore, the enhanced
decision making potentials of the concerned venture is reliant on the creation of a new leadership
team. The new leadership team supportsed the venture in emphasizing more on the changed
values and core potentials for enhancing the resource structure and optimum utilization of the
same.
The training and development related programs that are designed by the organization
supportsed the same in continuing with the effectiveness of the operations while adhering the
corporate culture of continuous changes and enhancement of the processes. Lines et al. (2015)
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7CHANGE MANAGEMENT AND PEOPLE MANAGEMENT
opined that the effectiveness of an workforce is enhanced through the training that is provided by
the organizations. Therefore, the training and development program has supportsed the venture
in improving the potentials of the workforce in enhancing the quality of the product offerings.
The changes that are initiated by the organization supportsed the same in enhancing the sales
volume while competing with the rising sales volume of BMW. Therefore, the enumeration of
the collaborative and coordinative functioning of the workforce in the organizational context
supportsed in improving the competitive benefit of the same.
Reason for Unsuccessful change
The lack of clarity in the leadership structure and the decisions that are commenced by
Mercedes through the creation of a new team of leaders affected the interests of the employees.
The lack of suitable communication within the organizational framework has affected the
potentials of the concerned venture in retaining the skilled employees. Spiliotis et al. (2016)
stated that the demotivation among the employees affects the potentials of the organizations in
continuing with the effectiveness of the operations while adhering to the demand of the venture.
Therefore, the lack of suitable communication between the management and the employees
affected the effectiveness of the workforce in adhering to the synergy that is planned by the
management of Mercedes.
The decisions that are initiated by the new leadership team did not correlate to the
expectations of the employees resulting to utter demotivation among the same. Kompalla,
Kopia and Tigu (2016) opined that the demotivation among the employees and enhancement of
staff turnover minimizes the scope of organizations to implement the change processes
efficiently. In this relation, the concerned organization has taken steps to develop suitable
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8CHANGE MANAGEMENT AND PEOPLE MANAGEMENT
functioning of the systems through enumeration of a collaborative approach among the
employees. However, the lack of clarity in the decision making process and the lack of
inclusiveness of the venture affected the potentials of the same in encouraging the involvement
of the stakeholders in the processes. Therefore, immediate changes in the values, structure and
mission has affected the potentials of the employees to cope with the modifications. It resulted to
enhanced rate of staff turnovers in the concerned organization, which resulted to incapacitation
of the venture in adhering to the change needs.
Conclusion
Therefore, from the above analysis it might be stated that the collaborative functioning of
the workforce supports the different modifications that are initiated by the organizations. On the
contrary , the modifications are initiated by the organizations with the purpose of enhancing the
competitive benefit of the same in the different markets. Mercedes Benz has taken steps to
facilitate modifications in the existing processes through alignment of culture and operations
while improving a new structure. It supportsed the venture in improving the dynamic potentials
related to maximization of the sales volume. On the contrary , the lack of clear and concise
decision making systems due to the development of the new processes has resulted to
demotivation among the employees and staff turnovers.
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9CHANGE MANAGEMENT AND PEOPLE MANAGEMENT
References
Abrell-Vogel, C. and Rowold, J., 2014. Leaders’ commitment to change and their effectiveness
in change–a multilevel investigation. Journal of organizational change management, 27(6),
pp.900-921.
Daimler.com (2017). Annual Report 2017. [online] Daimler.com. Available at:
https://www.daimler.com/documents/investors/reports/annual-report/daimler/daimler-ir-annual-
report-2017.pdf [Accessed 17 May 2019].
Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
Science, 45(3), pp.377-401.
Imran, M.K., Rehman, C.A., Aslam, U. and Bilal, A.R., 2016. What’s organization knowledge
management strategy for successful change implementation?. Journal of Organizational Change
Management, 29(7), pp.1097-1117.
Kompalla, A., Kopia, J. and Tigu, G., 2016. Limitations of business strategies and management
systems within automotive industry. Inted 2016, pp.3817-3827.
Lines, B.C., Sullivan, K.T., Smithwick, J.B. and Mischung, J., 2015. Overcoming resistance to
change in engineering and construction: Change management factors for owner
organizations. International Journal of Project Management, 33(5), pp.1170-1179.
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10CHANGE MANAGEMENT AND PEOPLE MANAGEMENT
Lozano, R., Nummert, B. and Ceulemans, K., 2016. Elucidating the relationship between
sustainability reporting and organisational change management for sustainability. Journal of
cleaner production, 125, pp.168-188.
Lye, G. (2019). Mercedes-Benz SEA II Skills Competition 2018 - identifying the best in pursuit of
higher standards. [online] Paul Tan's Automotive News. Available at:
https://paultan.org/2018/09/06/mercedes-benz-sea-ii-skills-competition-2018/ [Accessed 17 May
2019].
Matos Marques Simoes, P. and Esposito, M., 2014. Improving change management: How
communication nature influences resistance to change. Journal of Management
Development, 33(4), pp.324-341.
Mercedes-benz.co.in (2019). Mercedes-Benz passenger cars. [online] Mercedes-benz.co.in.
Available at: https://www.mercedes-benz.co.in/?
gclid=EAIaIQobChMItuKFu5ai4gIVg5SPCh2o9wK7EAAYASAAEgLy7PD_BwE [Accessed
17 May 2019].
Spiliotis, K., Claeys, S., Gutierrez, A.R. and Driesen, J., 2016, June. Utilizing local energy
storage for congestion management and investment deferral in distribution networks. In 2016
13th International Conference on the European Energy Market (EEM) (pp. 1-5). IEEE.
Whyte, J., Stasis, A. and Lindkvist, C., 2016. Managing change in the delivery of complex
projects: Configuration management, asset information and ‘big data’. International Journal of
Project Management, 34(2), pp.339-351.
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