Analysis of Management Challenges: SAR Health Services Report

This report analyzes the strategic international business management challenges faced by SAR Health Services (SARHS), a multinational enterprise undergoing significant organizational changes. The report identifies critical factors to consider before implementing changes, including power dynamics, employee control, and comfort levels. It delves into people management issues such as communication, cross-cultural conflicts, job insecurity, and lack of motivation, explaining their impact on the company's plans. Furthermore, the report explores the importance of effective leadership, including transformational and situational approaches, to foster employee engagement and address potential challenges. Finally, it recommends strategies to facilitate the project's success, emphasizing horizontal communication, regular feedback, and employee support to achieve both short-term and long-term objectives. This report provides a comprehensive overview of the management challenges and offers practical recommendations for SARHS to navigate its organizational transformation effectively.

Running head: MANAGEMENT
Strategic international business management
Name of the Student:
Name of the University:
Author’s Note:

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Factors that the management team might wish to consider before going ahead with their
plan
The managers have to make sure that they are implementing their plans after considering
the different factors. SAR Health Services (SARHS) is a company that is about to implement
many new changes in their organization. However they will have to make sure that entire they
are implementing the changes they are taking into consideration the following factors.
The concentration of power on an individual level
There is the fear that the concentration of power can be taken away from the hands of
certain employees and also vested into the hands of others. However at the same time, it must be
ensured that after the implementation of change the concentration of power must not be snatched
away from the hands of the managers to the hands of the other employees. As the company is
about to close site A and consolidate all the work in site B the employees might try to take the
whole control rather than taking help from the managers. Employees might feel that their
managers are implementing huge pressure on them and thus they will try to take the whole
control rather than abiding by the rules set by managers.
Losing control of employees
Managers must always try to ensure that they are being able to maintain a proper control
over the different employees. This is because of the fact that employees might get angered or
they might feel that they cannot abide by the different changes strategies that are being
implemented by the managers.

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The threat of comfort
This is also one of the essential actors that might be considered by the managers. This is
because of the reason that as the company is about to develop some special training sessions for
the staffs. This must be ensured that the employees are feeling unwilling to come out of their
comfort zone. This is because they must be able to make their employees convinced about the
fact that it is essential to get the training and also be able to take up new challenges. However
often employees feel that they are comfortable in doing the old works with their old expertise.
However employees must be able to learn new expertise and be able to work in the newly set up
platforms so that they are able to make sure that they are taking up new works and are also being
able to do those works properly.
As they have shifted from functional to matrix organizational structure, the employees
have already started to feel that there are several new responsibilities and also confusions arising
in different parts of the organizations. It is because of this reason that the managers must try to
make sure that they are taking the opinion from all their employees before they are able to
develop the new training and development sessions.
2. Identify and discuss the people management issues that the management team are likely
to face in implementing the plan, explaining the reasons for this.
Effective communication with employees
Effective communication is one of the major people management issues that can be faced
by the company. This is because of the fact that the company is often busy with initiating and
also implementing the change strategy. It is because of this reason that the managers must always

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try to take up the different ways in which they can develop a horizontal communication
approach. As they have recently shifted to the matrix structure they suffer from the confusions
and a high administrative cost. As a result of this there can be several confusions and people will
not be able to understand the decisions being taken by the company and neither they will be able
to give in their opinion.
Cross cultural conflicts
The company will be facing from cross cultural conflicts because in order to be
successful in this modern day scenario, the company will have to make sure that they are
working with local and also global employees. However managers will not be able to work in an
efficient manner if they are not able to embrace the different cultural difference among the
employees (Johnson 2016). It is the duty or the responsibility of managers to ensure that they are
conducting the cross cultural training and development sessions so that they are able to train their
employees and also there will be less number of confusions and conflicts arising in the
organization.
Job insecurity
Job insecurity or the fear of job loss is one of the major fears that will be growing among
the employees. This is because of the fact that as new training and development sessions are
developed and also there is the plan of opening up new factory outlets and closing down the
older ones the employees may feel that they will no longer be able to carry on with the same set
of skills that they had earlier. This will naturally create a fear of job loss among the employees.
They will be suffering from the fear that as SAR Health Services (SARHS) is about to take many
new initiates like that of reducing the carbon footprint by the year 2022. In order to attain this,

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they will have to undertake many new strategies. The old and the existing employee might far
that bringing on these changes will be making their positions in the organization at stake. This is
mainly because the already existing employees feel that they will lose the due to excessive
pressure and also due to the inclusion of the new technology (Khan et al., 2016).
Lack of motivation
One of the major issues that the managers can suffer while implementing any change is
that the employees might suffer from lack of motivation. They will be suffering from lack of
motivation as they are often overburdened with work and also they feel threatened due to the
involvement of the new technologies and the new set of skills. In order to be able to cope up with
the new work pressure they will have to ensure that a thorough skill development and training
sessions is developed. The HRM managers have to ensure that they are acting as a bridge
between the employees and the senior management of the organization (Lacey 2019). They will
have to be sure that the employees are being involved in all the different business decisions. In
order to make sure that they are able to survive the tough competition the employees have to
motivate. In the modern day scenario the mangers have to appear very free and friendly with thee
employees.
Participative leadership approach has to be developed so that the managers are able to
make the employees take part in all the business decisions. It is their duty and their responsibility
ensure that the employees are being able to keep track with all the changes that are taking place
in the organization and also they are able to give in their votes and their opinions in the business
decisions.

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Douglas’s theory of motivation must be followed in the modern day management system.
This is because in the earlier time the managers often had this idea that the employees are not
motivated and that they suffer from the different obstructions like lack of training and
development session, lack of financial rewards and other such motivations (Aithal and Kumar
2016). This was theory X. It is because of this reason that the managers in the modern day must
try to get rid of theory X and adopt theory Y. This is because of the fact that they have to keep
faith within their employees and feel that the employees are capable enough to reach to the goals
and also be able to work properly in the long run. In order to be sure that they can trust their
employees, they have to follow theory Y.
This will ensure that the managers believe their employs and also have a proper faith in
their abilities that they will be able to attain the overall goals and objectives of the organization.
Following this theory will help in motivating the employees so that they are able to understand
that they have the right will power and also they will have the right confidence to accept the
challenges and also be able to move forward in order to overcome all the challenges. As the
company has recently shifted from the functional to matrix structure and also they are about to
take many new and innovative strategies in the upcoming days, they will be suffering from many
fears and doubts. However at the same time, if he managers have this firm belief that their
employees will be able to face all the challenges and attain the overall goals and the objectives in
the long run.
The employees often suffer from huge tensions and also fear whole some new changes
are being brought in the organization. In order to make sure that these changes are being well
accepted by the employees, the managers will have to ensure that they are following the right

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leadership theories so that they are able to take proper care of their employees and also give them
the moral support.
Transformational theory
Transformational or relational theories must be developed so that the leaders are able to
develop some good relations or connections with their employees. This will enable them to focus
or emphasize over relationship building and they will be able to give the moral support to all
their employees. The managers of the SAR Health Services (SARHS) must be following this
strategy as they are about to impalement many new strategies and organizational changes. They
will have to stay in a proper connection with their employees so that they are able to get the
valuable opinions and the feedbacks of their employees while taking any important business
decisions and also in making the employees know that they have the right potential and the right
kind of energy.
Situational leadership theory
Situational theory must be used by the organization so that they are able to understand the
situation of their employees. In addition to this, they will also be able to get the information
about the employees of the organization including the different problems and the doubts that they
are facing (Tepper et al. 2018). As the company has actually undergone many different changes
the employees might suffer from exhaustion and also from lack of motivation (Hawkins 2017).
In order to make sure that the employees are able to adjust in any kinds of situations and also
reach out to the right people at the right point of time. Managers will be able to adjust their own
personality based on the different situations that are arising in front of them. This will enable
them to make sure that the employees are not going out of control or from becoming indiscipline.

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For an instance there can be situation where the employee will suffer from lack of motivation
and they might not like to accept any further changes. However at this point of time the
managers might adopt the participative approach and also help them
3. Develop and justify recommendations as to how to proceed with this project.
The project can be preceded properly by following the recommendations being enlisted below
 Horizontal communication system is one of the most important aspects that must be
developed. As the company is undergoing several changes, they have to give sufficient
time and support to all their employees so that they are able to cope up with the change
and are also able to give in all their potential for attaining the short and the long term
objectives of the organization. They will have to make sure that they are taking regular
feedback from all the employees (Obeidat and Tarhini 2016). This will help them to get
the opinions and the views of all the employees regarding the change and also the
managers will come to know if the employees are suffering from any fears or doubts.
This will be helping the managers to reach to the root cause of the issues and then be able
to understand about the different strategies that they can undertake to solve the problems
 Motivating the employees via different rewards is also an essential aspect that must be
followed by the organization. This is because of the fact that the employees will have to
be encouraged so that they able to take up the challenge and also they are able to
contribute towards attaining the overall goals and objectives (Hoch et al. 2018).

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 Transactional leadership must be developed so that the overall work of the organization
can take place properly and also the company is able to make sure that the strategies or
the organizational change being implanted is followed by all the employees in a proper
way. In order to make sure that they are able to keep a proper control over the employees
the managers have to us the transactional leadership system. This will enable them to
reward and also punish the employees as and when needed. In order to make sure that the
employees are following all the given instructions the managers will have to appreciate
the overall efforts of the employees. This appreciation can be done by recognizing the
efforts of the employees by arranging for different rewards.
 The rewards can be monetary rewards like some additional money for their extra efforts.
Apart from this there can also be some other kinds of efforts like flexible time shifts so
that the employee are able to strike a proper balance between their personal and also their
professional lives. It is said in the given case study that the company or the organization
will be soon introducing the flexible shifts and also work from home facilities for the
employees. This will enable the employees to make sure that they are able to work by
striking a proper balance between their personal and also their professional lives. This is
very essential as this will give some extra encouragement and also motivation to the
employees so that they are able to give in all their energy and their potential in
overcoming their challenges and in being able to work with all their potential for
overcoming the different challenges that are arising in the work field or after the
implementation of the different changes. On the other hand, if the employees are
becoming unruly then efforts have to be made by the managers to develop a kind of
autocratic leadership approach. This will enable them to ensure that they are developing a

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proper rule over the employees. This will enable them to ensure that they are being able
to maintain a strict control over their employees and also be able to take the timely
feedback from them. This will enable them to make sure that they are maintaining a right
mage and are also being able to ensure that they are able to reach out to their employees
at the right point of time and also to ensure that the employees are being able to
understand the discipline of the organization and they are also being able to abide by
rules and the regulations that are being set by the management of the organization (Noe
and Kodwani 2018).
4. Identify the factors that the organisation may need to consider in order to build its
change capability.
Skill of the employees
This is one of the most essential aspects that must be taken into consideration by the
managers. This is because of the fact that the managers have to make sure that if their employees
are not having the needed skills, then there must be a thorough training and development system
developed so that the employees are able to carry on working properly even after the arrival of
the new technology or the change. For an instance as SARHS is trying to focus on many new
changes or initiatives like that of developing some green initiatives in order to reduce their
carbon footprint. This will require new set of skills. Employees will be able to work as per the
new skills once they have are undergoing many different training and development sessions.

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Need for additional amount of funds
In order to make the change management successful, the company must be having a good
amount of money. Funds must be accumulated so that they are able to make sure that all the
facilities will be available in the near future. This is because of the fact that as the company has
now shifted to the matrix structure, they will have to get additional amount of money so that they
can arrange for the different training and development session like that of effective
communication. In order to arrange for the training and the development session, the company
has to make sure that there are certain additional funds or money that is being accumulated right
from the beginning. This will ensure that even during any unforeseen expenses in future, the
company will be able to meet with the risk and also be able to solve the same.
New Technology
Management must always try to make sure that all the modern and the new advanced
technology must be brought into use. This will enable the company in meeting with all the
different needs and requirements being put forward by the organization. At the same time, it
must be ensured that he work is being done by keeping in mind all the different modifications
and the up gradations that are being developed. For an instance as the company is trying to
develop new green technologies or eco friendly technologies they will have to ensure that the
new and the advanced technologies are being brought in the organization and also all the
employees are being trained properly so that they are able to meet with all the new challenges
and be able to attain the overall goals and the objectives of the organization. Managers must
ensure that they are taking regular feedbacks in order to know the different issues that are being
faced by the employees and also find out ways for solving them at the right point of time.

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