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Leadership and Strategic Change - Organisation architecture

Let’s look in to organisation architecture the software and hardware in order to do our diagnosis for current situation.

 

Skills: The water division which is mainly on production part require different skills then to solution division employees, even the level of knowledge is different for example solution division has biologists, chemists, scientific technicians and chemical engineers. Solution division need high engagement in department as it is research work.  Get professional assignment writing help

Culture: The culture of the organisation is can be describe as the set of values, beliefs, customs and unique systems. We can identify that stone finch has strong culture, employee are loyal to company and been long time with company, they are hardworking and has pride for their job. Company has provided development opportunity for solution division.

Critical Task: The main task of the solution division is to do research and find new products to introduce in market, solution division employee has instable platform to perform their jobs as they work in small group and had to work longer hours however and hardly see other division employees. Water division has stable platform as their duties and role are specific and they have been working in the organisation for long period. Water division is mainly production work which requires lower level of skills where as in solution division it is mainly research work which requires high skills and knowledge in order to perform their duties. Both divisions has different mission. 

Org. Structure: Company has complex structure, water division has vertical structure and solution division has horizontal structure. Water division has stable working environment where as in solution division has instable working environment. The rewards systems is different water division promote on basis of seniority and performance, slow growth of employee however the solution division promote on the basis of performance and successful development of product, has high rate of rapid growth in department.

Strategic Logic: Looking into the strategic logic to analysis the situation. The innovation strategy was created to introduce new products and capture market by innovation. The innovation strategy has help organisation gain different market from traditional products. Jim Billing strategy is to create subsidiaries for product development and if it develop successful product then merge it back to organisation. To support the subsidiaries Billing has used the water division as cash cow, however using water division as cash cow has affected the water division. I would  like to explain this problem by use of BCG Matrix model, that how the water division has move from star to question mark position in 2008. From 1975-2004 water division was consider as star of the market as they were able to gain customer trust and high market share with privileged profitability however this didn’t remain same when Jim started using water products as cash cow to support subsidiaries later on this has created problem in organisation which lead the water division to become question mark in the market. The use of water division as cash cow raised the concern in employees about their productivity, performance and stability in market, employees are lose the pride on their work and unable to communicate with customer as they are not sure that what is happening with water division.

 

Leadership: The organisation has different leader such as Jim Billing, Eli Saunders and Beth Suarez, each leader has different leadership style which has affected the organisation.

Jim Billing as Transformation leader: Transformation leadership can be define as“broaden and elevate the interests of their employees, when they generate awareness and acceptance of the purposes and the mission of the group and when they stir their employee to look beyond their own self-interest for the good of the group”  (Bass& Riggio, 2006). We can say that Billing has transformation leadership style as he significantly increases the organisational performance, has introduced the innovation strategy, has raised the profitability and provided new balance platform for employees and organisation. Jim is risk taker and has future vision and good communicator. He has raised the trust of employees and has motivated employees to think innovative to produce better product.

Eli Saunders as Democratic Leader: I consider democratic leader because he is concern about the employees, the structure of the water division has remain same so it seems that employees are satisfied with job. Saunders has also provide the support to Billing in past which can describe as kind of team work for organization.

BethSuarez as situational leader: She can could be consider s situational leader as she was able to manage team of 100, she has produce better performance in small group, however the when situation change with expansion of division she is unable to manage and filed to produce better performance.

These leaders have played different role to create conflicts in organisation. For example Jim major concentration is only on solution division, Saunders hasn’t create any opportunity to for development of water division, the water division remain same since it created, Beth is unable to aligned different subsidiaries and their supportive tasks 

                     Looking into current situation and number of issues I like consider this situation as Mess as this is large scale, have serious and worrying implication for all concerned and have many people of different persuasions involved in the problems (Senior& Swailes, 2010)

Problem Analysis:

After doing the diagnosis of the situation I have come to conclusion that there are few major problems which has cause the conflict between two divisions and in organisation which is as following:

  1. Misalignment of Organisation architecture

  2. Lack of leadership in organisation
  3. Execution of Innovation strategy

Now I would like to describe this cause in detail that how each problem has contribute to create conflict in current situation

Misalignment of Organisation architecture: There is problem with Hardware and Software both are not align and that has created the problem, for example the organisation structure of two divisions, water division has vertical structure where as in solution division it is horizontal structure. Both divisions operate for different objective water division objective is to produce water product and solution division is to develop new innovation products. The rewards systems is even different, water division promote employee on the basis of knowledge and seniority, there are few opportunity for development of employee and lower level of growth rate compare to solution division, on other hand solution division promote employees on basis of successful product development, has higher rate of growth and has more opportunity for employee development as its structure allow employee to take decision and its pay high return for the hard work. The incentives to develop highly successful products are high for example Suarez was paid $2Million when the subsidiary was merged back to stone finch, where as in water division is lacking in this kind of incentives and this is one of the major issue which has created problem as solution division employees got wealthier in short duration, other side water division didn’t have this kind of opportunity. All this problems are linked to tension between two divisions and are responsible for low morale, dissatisfaction and high turnover of A-level skill employees. Also both divisions have not standards and policies for communication and there is no connection between both divisions which even create gap between divisions.

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