Organisation Development at different level
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1.0 Executive Summary
This report provided analysis of the discussion and identification of the case study and using diagnostic tools to identify the primary and secondary problem to solve the issue and recommendations in supporting by relevant theories. The report comprised of four sections. The first section was about summarizes of the case study, the second section provided problems and analyzed based on case study. This was followed by the suggested diagnostic tools and recommendations to resolve the problems as the third and fourth section. 2.0 Overview of Case Study
Indian Ocean Developments (IOD) was known as a greatly conventional company with a reputation for its stability. Among the investors in the business industry, the company could be relied on for projects, which could be completed punctually. The Chief Financial Officer, Ced Pearce, had come out with an idea to invest in the aged care industry. With his persuasive personality and enthusiasm, the board members’ fears were dismissed. Ced’s sales ground was based on three things; the immense number of ageing baby boomers, wealthy baby boomers who wanted to live in better surroundings, and aged care being shifted to the private sector.
When Ced was given free restriction to establish the first facility, he soon dissociated himself from staffing and regulatory mechanisms of aged care. He was quick to always delegate and rushed to search for funds to expand the business rapidly. Soon, the company faced complications when the global financial crisis struck in 2008. When they entered the aged care industry, it coincided with the resources boom in Western Australia. Banks were unwilling to lend and the government reduced tax concessions. Due to these unavoidable issues, the company had inadequate cash flow to cover the imminent higher fundamentals and interest reimbursements. Hence, Autumn Leaves Aged Care Inc. was in jeopardy of collapsing and Ced was called to account. 3.0 A comprehensive model for organization-level diagnose
The organization in a company can be diagnosed at three levels respectively are organization level, group level and individual level. The sequence of each level is inputs, transformation and outputs. (Worley,2009) The outputs are clear in the case, so the focus of the diagnosis is on inputs and transformation process.
The inputs of organization level includes general environment and industry structure. General environment refers to the external factors which can affect company strategies such as politics, economic, technology and social environment. How well the planning practitioners know the general environment will affect the strategy orientation and final result. 3.2.2Industry structure
This part consists of the effect of suppliers and buyers, threat of new entry, substitutes and competitors. These five factors are important for a company before entering a new market. A powerful supplier can provide long-term supply with stable price, lower the cost for company; and choose the right target customer will open a broad market for company. The clear cognition of the threat and rivalry is essential for the first line supervisor 3.2.3Strategic orientation(goal clarity)
Strategic orientation is an indication of the direction in which a business wants to or should go in the future, and how well it is set up to do so. A completed strategy must have clear goals, mission and intent. The goals must conform to the change of external forces. 3.2.4Personal characteristics
Personal characteristics play a key role in an organizational project because the way that people think and act can affect many side in workplace. The effects made by a top leader are more remarkable because his way to think and the decision will directly affect the result of whole plan. 3.2.5 Brief summary
Depending on various issues, the effects of each level are different and the high organization level can affect lower levels. In case study, the anticipation of the output for in each level is to increase the productivity and earn more profit on investment but actually the company is in danger. The following paragraphs will discuss the mistakes might Ced and board have made when setting up the aged care company. 4.0 Model for organization-level diagnose relate to Autumn Leaves Aged Care Inc
The most serious mistake is the leader did not realize the change of the economic and political environment. Before setting up Autumn Leaves Aged Care Inc., Ced was very confident that the strategy will not fail because his sale pitch is based on three premises. The premises is persuasive, it shows the number of baby boomer will provide a profitable market and the tax concessions policy will reduce the cost. But Ced did not notice the informations are changing, the information maybe totally different after he anticipated the market and made project. In 2007, the aged care company began to operating and at the same time the cost of labor and building were skyrocket. In 2008, due to the global financial crisis, government reduced the tax concession and banks reluctant to lend. Thus Ced might use the outdated information to execute a plan, he do not follow the change of time to update information and make new forecast with times. On the other hand, Ced did not make a meticulous research on industry structure. The supplier power, buyer power and rivalry among the same industry were not considered, the emergency strategy was not planed. These negligences directly lead to the vulnerability of the company in an emergency situation .
4.2 Group level
The impact of the boards of directors in a company is important and meaningful. The function of a board consists of strategic guidance, policy development, financial function and so on. In short, the duties is to build the overall direction, policy and goal for company; protect shareholders’ capital and ensure the maintenance of the company and so on. The board as a decisive group in Indian Ocean Developments (IOD) always look for the investments that aligned with IOD’s high reputation and good corporate image. Unfortunately, the board failed to find the problems during the investment of aged care this time, the member of the board neglect to inspect the risk of project. After recognized the company was in danger, board called Ced to account. To sum up, the board was dereliction of duty not functioning before choose investment project, they just obey the plan made by Ced. 4.3 Individual level
This level focus on individual effectiveness, Ced’s characteristics made a great impact on the whole investment. Ced was given full autonomy during the whole project, so his individual effectiveness was crucial and his personal skill and value could influence the final result. When setting up the company, Ced as a young financial officer showed his forceful personality, lack of communication with others and overconfidence. He used his contagious speech persuaded all the members in the board, then quickly make the plan into practice without paying close attention to details and failed to choose the right staff with qualified skill and knowledge to execute a plan. As mentioned in case study, Ced wanted to expand business as rapidly as possible, his actions pursued to the efficiency but ignore the quality. In other words, his personality fitted with his approach and it result in the mistake. 5.0JOHARI’S WINDOW
Organizational decision making process can affects an organization well-being. Issues such as new product or new ideas launched it can either benefit the company or causing a huge damage to it. The aim of this report is to discuss the how organizational change can affect organization and how it can be solve though thought diagnostic tool the open system and Johari’s window and what recommendation can be used to solve the issue. Johari’s window is a tool used to understand ourselves and to build a better relationship with others. It helps better understand each other’s interpersonal communication and relationship. It can be used in group dynamics, team development and intergroup relationships as well as building self awareness through bother disclosure and feedback. The Johari’s window consists of four quarters the first section is the open area which the transparent glass. A person strengths and weaknesses come out into this open area by keeping the strengths and reducing the weaknesses.
The behavior is both known by us and others. Second section is a hidden area which is known by us and unknown by others mainly related to trust issue. Third section is the blind spot which is unknown by us and known to others which they are unwilling to share and the fourth section is the unknown area which is unknown to ourselves and others. Large degree of strengths and weaknesses are cape in the dark. There is no solution to solve the unknown area. However, we can make use of the strengths that are available in the hidden and blind spot and bringing more to the open areas. One way to broaden the open area from the blind spot is through feedbacks. Feedback can be specific and focused on behavior that can change. 5.2Johari’s Window relate to Autumn Leaves Aged Care Inc
As relate to the case study, the open area is that Indian Ocean Development was highly conservative with the reputation of stability. It has been in business for years and it is known to anyone that they could rely on Indian Ocean Development to complete project. The hidden area which is known by us and unknown by others was that Ced is forceful personality and enthusiasm was contagious and he was quick to dismiss the concerns some board members had about entering the market which they are unfamiliar with. The blind spot which they are unwilling to share that Ced was spending too little time on the staffing and regulatory with components of aged care causing him to lost a lot customers. The unknown area is that they did not expect the global crisis to strike and bank was reluctant to lend. Thus, it led the company towards collapsing. 6.0 Recommendation
An organization development interventions is a sequence of activities, actions, and events intended to help an organization improve its performance and effectiveness. (Thomas G.Cummings, Christopher G.Worley.2009) 6.1.1 Strategic Interventions
Strategic interventions can help the company find their problems, let the company become more competitive and efficient. Alliances intervention IOD is a successful company, it is not necessary to change their company strategy integrated. Alliances intervention can help IOD figure out the problems they faced now. Alliances intervention is a collaborative intervention helps two company continue to complete the goals by sharing of resources, including human resources, capital, and technology. According to the case, in 2007, because of the resources boom in Western Australia, all the building cost which include material cost, energy cost, and the cost of human resources are increase.
In 2008, global financial crisis influence the world economic system. Banks were reluctant to lend, in the end, only one aged care facility was completed. IOD has entered into a bad position when the bank stop lending money. The data shows not only IOD but a lot of companies were affected by the global financial crisis. For saving the aged care facilities, IOD can find cooperators from the company which also entered in the aged care facilities business. Combine the capital together, sharing the informations, technology, and working experiences. Based on aged care business, setting up a new goal for both company, and complete the project together. (Charles O’Reilly 2008) 6.1.2 Techno-structural interventions
Techno-structural interventions can help company become more flexible. Structural design
There are few contingencies can influencing structural design. Environment, organization size, technology, worldwide operations, and organization goals. According to the case, the organization goal of IOD is enter in aged care business and for IOD, aged care market is an unfamiliar market.(Thomas G.Cummings, Christopher G.Worley.2009). It is also means IOD did not have enough experience, technology, and information support for entering an unfamiliar market. Downsizing
Downsizing intervention reduce cost by decreasing the size of organization or redesign the organization. According to the case, the major issue of IOD is do not have enough capital to finish the task( aged care facilities). Second issue is Ced did not spend too much time on the details.(case paragraph 2). IOD can downsize the number of aged care facilities and employees to saving the cost. Focusing on the quality of the aged care facilities rather than focusing on the quantity.(Rui J. P. de Figueiredo J. 2009.) Reengineering
Reengineering the organization or organization group can provide new information and technology to support the company finish the project. According to the case, IOD had enter into an unfamiliar market, aged care market, which means IOD do not have enough information and technology to support aged care business. On the other hand, it is also means Ced did not have enough abilities to leading the working group. IOD can research the information first, then get feed back from working group. Give training to Ced or choose the new leader from working group and complete the project after reengineering intervention. 6.1.3 Human process interventions
Human process interventions are focusing on employees within the company. It can help company finding out the issue and solve the problem. Third-party intervention
According to the case. First, IOD do not have enough information about aged care business. Second, IOD may not find the main issue of their business project because their had miscommunication between board and Ced. Third-party intervention can help IOD find the main issue because third-party can helps the company communicate with Ced properly,find out the issue, and solve the problems.(Arnoud Franken, Chris Edwards, Rob Lambert 2009.) 7.Conclusion
By using the organization level diagnosis model and Johari’s window, it broadens the thinking of individual and also build a better relationship with people. Recommendation such as strategic intervention can give a more understanding and create a better communication between organizations. Techno structural intervention would allow the organization to manage the organization structure more effectively and human process intervention by giving rewards system to encourage workers to improve their productivity.