Strategic International Business Management: SweDigi Case Study Report

This report provides a comprehensive analysis of the "SweDigi Case Study," examining the people management issues faced by the new CEO, Jan. The paper delves into the challenges of employee resistance to change, lack of trust, and ineffective communication within the organization. It outlines both short-term and medium-term strategies Jan can implement, including practical training, motivational techniques, and improved communication methods. The report also explores the leadership style Jan should adopt and the decision-making or support required from the board level to facilitate significant improvements. The analysis incorporates relevant theories such as Lewin's theory and the Bridge Transition Model to provide a structured approach to understanding and resolving the challenges. The report offers actionable insights for Jan to enhance employee engagement, build trust, and successfully launch the new digital music product, ultimately aiming for improved organizational performance.

Strategic international business management

Table of Contents
Introduction......................................................................................................................................1
People Management Issues..............................................................................................................1
Steps Jan should take for short and Medium Term.........................................................................4
Short-Term Steps.........................................................................................................................4
Medium-Term Steps....................................................................................................................7
Leadership Style Jan should adopt..................................................................................................9
Decision or support required at board level to perform improvement..........................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................13
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Introduction
This paper is based on the given case named as "SweDigi Case Study." It is a case where its new
CEO encounters a wide range of problems in the production of the new product and manage
appropriate relation with existing employees. The main purpose of this paper is to highlight why
Jan encounter the people management difficulties and how he can resolve it to proceed further.
Hence, the paper is divided into four different sections. The first section discusses the people
management issues that underpin the difficulties faced by Jan. On the other hand, the second
section discusses steps that should take by Jan to plan short and medium-term progress of
SweDigi. The third and fourth section talks about a leadership style that Jan may adopt to avoid
target difficulties and decision or support that may offer by board level to perform significant
improvement. Therefore, the whole paper is surrounded towards given case study and provide
better knowledge about change management scenario to target audience.
People Management Issues
Generally, it can be said that the people management is first and foremost task of an
organization. The people management is necessary to maintain the existing productivity of an
organization on track and satisfy the employees to get their effective participation in day to day
activities. While management of people, the organizations faced a large number of issues that
may become the reason of their failure as well as declined productivity in comparison to
potential competitors. People management issues are very critical to the organizational success.
In an organization, people management plays a vital role in growth and success of the
organization. If the organization is able to manage its people in an effective and efficient manner,
then it will enable the organization to perform well in any situation. It is evident from the case
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study that Jan is facing problem-related to managing its employees in an effective manner. In the
case study, it is found that employees are not in position accept the change in the organizational
system. Employees are resistant to change and are feeling that whatever they are doing is right
they are not supporting the New CEO of the organization Jan. Employees are stuck on their old
behavior and habits. They want to be in their comfort zone (Al-Haddad, 2015). It is also evident
from the case study employees are still following their own old methods and manner of
performing the task. Employees are not responding to the changes neither they are considering
the New CEO opinion in an effective manner. Employees are feeling resistance to change as
there is lack of proper communication and motivation training and support in an organization.
Many professionals are leaving the organization due to decline in profit as well as due to changes
in the overall production system of an organization. In the case study, it is also found that people
or employee are not trusting on the whole project which is hampering the overall work
performance of the organization at large.
In this case study, Jan is facing problem in managing the people in an organization in an
effective and efficient. If Jan wants to maintain the smooth progress of company, it becomes
necessary for him to take active initiatives in reference to people management issues. The
problem which Jan the New CEO of the organization is facing is as follows-
Jan is facing problem in making the employees accept the change.
Jan is facing the problem of building the trust among the employees. It is evident from the case
study that employee is not trusting on their new CEO.
Employees are not in position and are not willing to accept the change in the system in an
effective and efficient manner. It is evident in the case study that an organization is not running
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in sound position and is unable to generate profits (Bystydzienski, 2017). For this New CEO of
the Organization is trying to build a new product to generate more profit and to compete in the
stiff competitive market. But the employees of an organization do not want changes in the
production system. Employees are resistant to change. Resistance to change is due to mistrust
and poor communication system in an organization.
Resistance to change
Another people management issue faced by Jan in organization is resistance to change. Most of
the employees did not in favor of his decision and resist from potential changes. Lewin theory
state that employees often feel insecure when changes are implemented. Lewin mentioned that
employees feel resistance to change as they don’t want to come out from their comfort zone. The
employee feels insecure when changes are implemented it also decreases their productivity and
motivational level.
In order to make the employee in a position to accept the change in an effective manner proper
communication and motivational training should be provided. Lewin stated that proper
communication would make the employee feel motivated and secure. Management should ensure
that employees will not be fired due to changes (Benn, 2014). In order to make the employee
come out of their comfort zone management need to provide them intensive training and
assurance that changes will bring a positive impact.
Outline survival and learning anxieties (Schein) and/or psychological transition theories
(Bridges Transition Model) or the change curve.
Bridge transition Model
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This model state that people try to accept the change quickly if they feel comfortable. If people
feel fear and discomfort, then they will not accept change in an effective manner.
Three Stages
Ending, Losing and letting go- This stage is marked by resistance to change. Here people
experience fear, sadness, and disorientation. As per the case study employee of an organization is
not feeling orientated which is arising a problem of people management issues.
The Neutral zone- Here people need moral support and proper training to accept the change in
an effective manner. In this case study, no proper training and motivational incentives are given
to make the employee accept the change in an effective manner (Cameron, 2015).
The New Beginning- This is the last stage of the Transition process. Here people experience
high energy and commitment. But in this case study, the energy and commitment are decreased
due to lack of proper communication and motivation. Lacking trust is one of the major cause
which is raising the issues of people management.
An employee of an organization is not trusting on their new CEO as a result which is
diminishing their work performance. In order to redress this situation, Jan should try to build
trust among the employees.
Steps Jan should take for short and Medium Term
In order to plan the success of SweDigi within the existing market, it is essential for Jan to plan
short term and medium term initiatives effectively. Both the short term and medium term
initiatives will serve as a guideline for the whole organization and will teach how they can track
their current performance and proceed accordingly. Hence, it can be said that short and medium
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term initiatives determination is necessary for Jan to get the launch of new digital music product
back on track (Deci, 2014). The below-mentioned are some short and medium term initiatives for
Jan to plan the effective launch of its new product within the existing market:
Short-Term Steps
The short-term initiatives are those steps that can take by Jan to resolve the identified people
management issues in the SweDigi working scenario. These initiatives are recommended to Jan
on the basis of analysis of the current situation of SweDigi. Moreover, the recommended steps
are short-term initiatives in nature that can adapt by Jan to tackle with the SweDigi current
situation only. The following are short-term initiatives that need to follow by Jan to get the
effective involvement of its employees in recent organizational changes:
Provide training to employees through the use of practical examples
Doppelt (2017) said that training through practical examples is an important source of avoiding
change resistance within the organization. In a similar context, Jan should provide practical
training to SweDigi employees. The practical training may conduct to provide the significant
knowledge to employees about Jan expectations about the company and its outcomes. On the
other hand, the practical training may also offer through disclosing the case of successful
companies. Hence, it can be said that the practical training will serve as foremost equipment for
Jan to resolve employee's resistance and win their confidence. Moreover, Dickmann (2016) said
that training presents a prime opportunity to expand the current knowledge base of each
employee. Therefore, the practical training will consider as an opportunity for employees which
will bring ultimate benefits for the current situation of SweDigi. So, it is recommended to the Jan
to focus more on practical training to employees. It is because if they have the knowledge about
his goal and expectations, they can serve very well in favor of organization as well as Jan.
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Follow Motivation Theories to motivate employees
Motivation plays an important role in changing the current working scenario of an organization.
Jan is facing a large number of people management problems while operating in SweDigi. In that
situation, it becomes essential for Jan to gain the trust of employees and increase their
participation level within organization functions (Hayes, 2014). The motivation is one of the
foremost equipment and solution that can perform by Jan to administer significant changes. In
order to motivate its employees, Jan should utilize Maslow’s Hierarchy of Needs and provide
significant satisfaction to existing employees. According to the Maslow’s Hierarchy, people are
motivated to achieve some needs and that certain requirements take precedence over others. In
that situation, it was the responsibility of Jan to evaluate the motivational needs and requirements
of each employee so that he can win their confidence and improve their productivity as well
(Nuttin, 2014). Hence, it can be said that the appropriate follow-up of motivational approaches is
another option in front of Jan to get employee participation and launch a new product in the
existing market successfully.
Formation of Appropriate communication
Another important short-term initiative that can follow by Jan is to promote communication
within the employees. The communication serves as a foremost tool in the development of
collaboration and raising overall productivity of an organization. Due to the lack of
communication between Jan and his team members, he becomes failure to win their cooperation.
If appropriate communication and the healthy relationship were there, the people management
problems never came in front of organization (Hayes, 2014). So, it can be said that Jan should
adopt appropriate communication theories to promote healthy relationship and cooperation
between different team members. The improved communication will become the source of high-
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level cooperation and healthy relationship which automatically proves beneficial for SweDigi. In
order to promote communication at the workplace, Jan can go with "The Process School" Theory
of communication. According to this theory, Jan needs to consider the communication as a
process followed by the organization. This can perform through promoting work of art, culture,
and music themes as well. This theory gives an opportunity to the sender to transform his or her
message as per feelings and emotions or convey to receiver effectively (Cameron, 2015).
Therefore, it can be said that the formation of appropriate communication will prove a significant
growth opportunity for Jan to avoid people management problems and plan significant sales
growth of the company.
Promote Employee Engagement
Jan faced a lot of people management problems during working as a CEO in SweDigi. The
foremost issues he faced is lack of employee cooperation with his initiatives. In that situation, the
promotion of employee engagement will prove as a good short-term initiative for Jan to promote
employee participation and company productivity as well. In order to promote employee
engagement, it becomes necessary for Jan to create satisfied employees first and then expect
something in return out of them (Hornstein, 2015). With the help of engaged employees, he can
avoid change resistance and get back the performance of the company on track.
All these short-term initiatives will prove a good option for Jan to improve the current
performance of SweDigi and make it competitive within the existing industry. If Jan does not do
so, it becomes very difficult for him to manage the employee turnover, as well as sales, decline
situation of the company.
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Medium-Term Steps
Jan also needs to formulate some steps that will help him in the medium term as well. In that
situation, the medium-term plans should have enough capability to stand with the whole
organization and change its current as well as the future scenario. The medium-term steps will
facilitate Jan in not only current problem resolution but also the future as well. The following are
medium-term steps for Jan to proceed with:
Appropriate Follow-up of Change Leadership theories
The first and foremost step that Jan can take to change the current situation of the company is an
effective follow-up of change leadership theories like situational leadership, and agreement or
certainty matrix. According to the situational leadership theory, Jan needs to focus on two main
behaviors. The first one is directive which requires to clearly inform employees about necessary
changes and reasons associated with it (Huchim-Lara, 2016). On the other hand, another
behavior is necessary to listen to the viewpoint of employees, and provide encouragement and
required support. On the other hand, agreement and certainty matrix theory asked for Jan to
promote a high level of interaction with those who involved in implementing change and those
affected high. With the help of both theories, he can effectively improve the existing situation of
SweDigi. The below-mentioned figure represents the agreement and certainty matrix approach:
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(Huber, 2015)
Permanent adoption of change management models within the working scenario
Another medium-term step that Jan can take is the permanent adoption of change management
models like Kotter, Liwins, Burke, and various others in the existing working scenario. The use
of these change management models will promote change management initiatives within the
organization. With the help of these change management initiatives, Jan could avoid employee
resistance and create a healthy and satisfying working environment (Hohenstein, 2014).
Leadership Style Jan should adopt
Leadership style plays an effective role in the success of a leader as well as organization. The
selection of appropriate leadership is necessary for a leader. It is because the chosen leadership
style will influence the nature of working environment in an effective manner. In order to turn
the company in a profitable situation within 12 months, it becomes necessary for the Jan to get
the confidence of employees and prepare them to support his initiatives in favor of the company.
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Jan can effectively do this through the adoption of effective leadership styles. The effective
leadership style is necessary for the Jan to win the confidence of employees and prevent their
change resistance (Komives, 2016). Choosing the right leadership style will help Jan in the
implementation of leadership theories change management successfully in the organization for
medium-term. On the other hand, effective leadership style promotes the best change
management process that further creates an improved vision and communication plan in favor of
an organization. The first and foremost leadership style that will prove effective for Jan is
Goleman leadership styles. The Goleman leadership styles are set of six different leadership
styles that should consist in the behavior of Jan. According to Goleman leadership styles, it is
necessary for a leader to become commanding, visionary, affiliate, democratic, pacesetting, and
coaching. The combination of all these leadership styles becomes a source of good leadership
behavior. Therefore, Jan should adopt the Goleman leadership style to lead the employees in a
right direction. The commanding leadership style is necessary for Jan because it will help him to
implement the demands and requirements on an immediate basis (Klenke, 2016). On the other
hand, visionary leadership style will help Jan to stay focused. Apart from this, coaching style
behavior will help Jan to create satisfied employees and get their effective participation in
organizational functions. Moreover, the democratic leadership style in Jan behavior will help him
to motivate employees by promoting their involvement in decision-making processes. That's why
it can be said that Goleman leadership style will prove a right option for Jan to create satisfied
employees and improve existing position of the company. Moreover, it is also observed that
Goleman Leadership style is integration of best leadership styles that fulfills all basic
requirement of a leader. Generally, a leader need to behave as a guide and manager as well. The
Goleman leadership style helps the leader in integration the characteristics of both a leader as
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