Report On Issues And Recommendations For Change Management In SweDigi Manufacturing Company

Issues faced by SweDigi

Change management is a strategic process of an organisation to achieve the objective. The change management is an attitude of a leader that can pursue by the people to adopt the changes in strategic process of organisation (Carnall, 2018). The step of change management helps in implementation of strategic process in the organisation with the high success. The leader face some challenges of people management such as failed in objective, fail in planning and many others. In the case of SweDigi, the CEO of the organisation faced the issue of people management which will be discussed in this report. In the beginning of the report, the issue faced by the CEO of the organisation will be discussed in the context of people management. After that, the techniques will be discussed from which the organisation can launch the new product. Then, the leadership style that the CEO should be adopt in the process of launching the new product back on track. At the end of the report, recommendation will be discussed to improve the situation better.

The organisation faced the issue of failing down in the objectives due to lack of communication. There are many reasons behind the poor quality of production and failing down in the meeting of objective. The lack of communication is one of the issue due to which the organisation fails to meet the objective (Banaeianjahromi, and Smolander, 2017). It is the responsibility of the managers to guide the employees for their responsibilities towards the organisation. If the manager of the organisation fails to guide the employees then it becomes a reason of failing in meeting the objective.

In the case of SweDigi, the company change the CEO to earn the high profits and revenues. As per the parent company, the company rate of profit is decreases due to poor management and the company need to change the product into the new product. That is why; they appoint a new CEO for the organisation to adopt the new changes. He introduces the new product to earn the high revenue but the employees produce the product with the existing plan which is not beneficial for the organisation. Due to lack of communication between the manager, Jan fails down in his objectives (Doppelt, 2017).

Due to lack of communication, the manager cannot maintain the relation with their employees. Mistrust is the reason of lack of communication. It is essential to have the trust between the employees and manger of the organisation for the success of a plan. The manager can build the trust by communicating with the employees and understanding the points of employees. The relation between the manager and employees helps to meet the objective more effectively (Simoes, and Esposito, 2014).  In this case, Jan faced the issue of mistrust due to which the whole project are stuck in the old habits. It is the issue which is faced by the manager due to lack of communication between the Jan and his employees.

Employee turnover is a big issue which is faced by the organisation due to low salary and in satisfaction of employees. Employee’s turnover is defined as the number of employees who leave the organisation. The company provide the training to the new employees who consume high cost and time that is not beneficial. The existing employees have the experience to do their work and understand their responsibility towards the organisation but the new employees have less knowledge related to their work. The reason behind the employee turnover is dissatisfaction of employees from the organisation in terms of facilities, respect and salary (Bufquin, DiPietro, Orlowski, and Partlow, 2017).

Communication

In the case of SweDigi, the employees have different opinion for the progress development and quality of assurance process due to diversity workforce. The marketing manager of the organisation quit his job and the production manager also resigns from their job. It has been seen that the organisation fails in their objective due to many reasons. Employee turnover is one of the reasons from which the organisation fails to meet the objective. The reason found behind the turnover is that Jan is not considering their opinions. It is essential to consider the point of view of every employee but due to different opinion of the employees just because of different background their thoughts are also different for the particular task; Jan is failed to listen the point of view of every employee.

Conflict is another issue which is face by the organisation due to many reasons. The different opinion of the employees for the particular task is one of the reasons of raising conflict between the employees. It is essential for the employees to understand the point of view each other but if not then it raise the conflicts. Increasing conflict between the employees reduce the productivity and quality of production which is a disadvantage for the organisation. Due to conflict in the organisation, the chance of attaining the objectives is failing down (Kuipers, et al., 2014).

As per the case study, the management team has different opinion towards the progress development and quality assurance process. The different opinion of the management raises the conflict between the team that is disadvantage for the organisation in terms of achieving success in the market. The organisation fails in the project due to different opinion of the employees towards the progress development. The employees stuck in the old habits due to which the organisation again faced the loss. The competitors of the company adopt the new techniques and project to grab the high market share in the market but the employees of the SweDigi stuck in the old habits. The competitors in the industry will be increased in the industry by adopting the new techniques and project.

There are eighths steps which the Jan has to follow for the development of new product and these are as follows:

(Source: Demand Matric, 2018)

The first step of developing the new product is idea generation. Jan has to analyse the product by generating in terms of unique features and qualities as compare to the others. The company has to conduct the market research to evaluate the product as compare to the competitors. The idea of product should be new to attract the consumers towards the product and services of the company (Demand Matric, 2018).

Committee of the company should be analysed the idea of new product. The committee has the responsibility to reject the bad ideas and support the good ideas. It also has to analyse the plant and machinery of the company for the production. It is essential to use the new machinery for the new product. The committee should analyse the good idea of new product of the company (Claessens, 2015).

Employee turnover

After analysing the idea of new product; Jan has to test the concept whether the consumer attracted towards the product or not. Consumers are the main drivers of the market; it is essential for the company to understand the demands of the consumers. The company has to produce the goods as per the demand of the consumers. Concept testing is done to find out the consumers reactions towards the product and services of the company. Jan has to evaluate to the product as per the terms of satisfaction of consumers (Rahim, 2017).

Business Analysis is the main step of developing the new product in the market. In this step, the company analyse the product is commercially profitable or not. To evaluate the profitability of the product; it is necessary to analyse the production cost of the product. The cost of production and selling prices helps to evaluate the profit of the new product. Jan has to analyse the competitors to set the selling price of the company (Ni businessinfo, 2018).

The company has to follow the all necessary steps related to product development. Each and every department has the responsibility to perform their own function for a development of product. The production department has to make the plans for the production of a product. Finance department of the company has to provide the financial information to the senior management and also provide the financial support to the others department to develop the product. The advertisement department make the plan to promote the new product of the company. Jan has to follow the plan to develop the new product in the market.

Jan has to test the product in the market by producing into a small quantity to analyse the demand of consumers. Test marketing means to introduce the new product on a very small scale to evaluate the demand of consumers. If the product fails in the market then the company stop producing the product. It protects the company from heavy loss and also give have the second chance to add the new features in the small quantity of product. Jan has to use this method as a safety device. This method is also beneficial to analyse the reasons behind the quality of demand (Demand Matric, 2018).

Jan has to promote the product in the market by investing more in advertisement. The company requires the large amount to invest in the advertisement and distribution process. Jan has to promote the product on a large scale across the world. It advertises the new product at the international level so that the large number of consumers aware about the product of the company and attracted towards the product. To advertise the new product, the company can use the media such as social media, radio, television and many others (Claessens, 2015).

Jan has to take the feedback from the customer through media. Consumers fed up with the one product and it is requires to develop the changes in the product so that the product will be more attractive for the consumers. The company can improve the product as per the suggestions of the consumers that is why it is require to take the feedback from the consumers. Jan can get the feedback through social media and by fill the form of feedback. For the effective performance of the company, it is require to continuously monitoring the product through the customer feedback.

Conflict

Jan has to forecast the past and current situation of the company related to the product. Jan has to analyse the strength and weakness of the company to make the strategies to improve the production of new product. Jan has to know about their weakness which affects the sale of the company. Forecasting helps the company in reducing the weakness and improving the strength (Kumar, Luthra, Govindan, Kumar, and Haleem, 2016).

The production equipment is also a short term concern of the company towards the product. Jan has to take care about the product equipment to improve the quality of product of the company. Quality of product helps in attracting the customer towards the product of the company (Goetsch, and Davis, 2014). The large number of consumer attracted towards the product helps in increasing sale of the company.

Jan has to analyse the reasons behind the weakness of the company which falls down the sale of product. It has been seen that the company has to analyse the reasons behind the weaknesses so that it can make the weaknesses into strength. The company also has to analyse the other issue to address the issues. The company faced the issue of people management from which the quality of product is reduces as well as the customer also reduces. Jan has to improve the quality of product to attract the customer towards the goods and services of the company. The issues of the company can be reduces by satisfying the needs of employee. Satisfying employee gives their best towards their responsibility of the company. The quality of product is improved and the large numbers of customers are attracted towards the goods and services of the company. Large number of customer means the high sale of the product (Gopalakrishnan, Libby, Samuels, and Swenson, 2015).

The company has to train the employees by maintaining the quality of product of the company. Training and development program helps the company in maintaining and improving the quality of product. To adopt the high technology in the company, it is essential to train the employees of the company. It has been seen that the company introduce the new product with high technology. Jan has to take the step to train the employees to achieve the objective of the company. Jan has to provide the training to the existing employees as well as the new employees to gain the success in the company. Efficiency power of the employees to do the work is improved which has positive impact on the quality of product. The quality of product will improve by providing the training to employees. Jan has to provide the training to employee which reduces the issue of people management in the company (Tourish, 2014).

The company has to promote the product by using the different sources of marketing such as television, radio, social sites and many others. Jan has to take the initiate to promote the product with the appropriate manner. It is the short term process but the company get the advantage in future and for long term.

Techniques for Launching New Product

It is the process of boosting the sale of product in the market which can be taken by Jan for short term.

Jan has to change the leadership style for the effective performance of the company. Jan has to adopt the democratic, transactional and strategic leadership style. These styles help the company in performing the performance in an appropriate manner. These leadership styles are as follows:

Democratic style of leadership states that a leader takes the decision with the concern of each member. Jan faced the issue of conflict due to different opinion of employees towards the particular. Democratic leadership encourage the employees to represent their point of view for a particular task (Fairhurst, and Connaughton, 2014). Employees start participating in the decision making process of the company. It is a responsibility of a leader to walk with the team while taking the decision for the company. By understanding the each member point of view, encourage the employee to perform well. Performance of employees will improve which is beneficial for the company in maintaining the quality of new product (Antonakis, and Day, 2017).  

Transactional leadership styles states that the leader gives rewards to the employee for their performances. It has been seen that the rewards and appreciation is the method of motivation which is used by the manager to motivate the employees (Gieter, and Hofmans, 2015). Jan has to adopt this leadership style so that the performance of employees will improve and the quality of product is also improved (Bolman, and Deal, 2017).  Leader has the responsibility to motivate the employees towards the work by appreciating them on their performance. In this leadership style, Jan can establish the incentive method rule to motivate the employee to perform well their responsibilities. Motivate employee’s gives their best towards the organisation which reduce the issue of employee turnover of the company. By adopting this leadership style, the rest of employees also encourage from those employees who get the rewards for their performance. Change in organisation affect the performance of employees but the transactional leadership helps to improve the performance of the company (Graham, Ziegert, and Capitano, 2015).

Strategic leadership styles states that the leader involves the employees in main operations and growth of opportunity of employee (Zhang, et al., 2015). This is a leadership style in many companies because every employee wants to participate in strategic decision. Strategic leadership is perfect leadership to motivate the employees to do their work. This leadership style influence organisational members to execute the organisational change (Holten, and Brenner, 2015). Strategic leader share the information to the employees related to the main vision of the company. Strategic leadership is adopted for the main objective and that is productivity. The strategic leadership style builds the positive environment where the employees forecast the organisation needs as per their job responsibility. Strategic leadership encourage the employee to take the responsibility and perform well in their jobs. Effective performance of employees helps the company in its growth. It is the responsibility of Jan to motivate the employees towards the work so that they can perform well in their Job. Strategic leadership helps the Jan in reducing the issues which is faced by him in the context of people management. Strategic leadership requires the potential to predict and understand the work environment (Tannenbaum, and Schmidt, 2017). It is essential to analyse the organisation structure to understand the work environment of the company. Jan should understand the work environment by analysing the performance of employees on the regular basis (Popli, and Rizvi, 2015).

Leadership Style for Launching New Product

Change management is a process which is use by the company to achieve the objective (Ceulemans, Lozano, and Alonso-Almeida, 2015). In this case study, Jan faced the many issues due to change in management in the context of people management. The company suffered the loss due to the issue of lack of quality of product. The senior management has the responsibility to take care about the organisation structure and handle the situation. It is recommended that the company has to follow the ADKAR model so that they can improve the situation of the organisation. ADKAR model is a goal oriented management model which helps in guiding the individual and organisational change. ADKAR model represent the five tangible that the senior management has to take care to achieve for lasting change and these are awareness, desire, knowledge, ability and reinforcement. The board level managers have to aware about the changes, know the desires of change, knowledge about the process that how change can take place, ability to demonstrate the skills and behaviours, and reinforcement to make the change stick. This model helps in good outcomes of successful change. It is an effective model for planning change management activities, and supporting the employees throughout the change. The senior management has to adopt this model while the process of change management to improve the situation (Prosci, 2018).  

It has been seen that there are many reasons that the employee also faced the issue due to change in management. The leader has to follow the change management model while the process to aware about the employees and their performance (Hayes, 2014). There are many models developed to improve the situations. The leader has to change the guidelines which is explains in eight steps and these are Increase Urgency, Build a guiding team, Get the vision right, communicate for Buy-in, Empower action, create short-term wins, Don’t let up and the last is make change stick (Kotter, 2007). The main aim of these steps to understand the organisation environment and helps to improve the situation.  Jan faced the issue of people management and by adopting this model it is essential to guiding the team which helps to improve the situation of the organisation (Brisson-Banks, 2009).

Conclusion

From the above analysis, it has been concluded that the change management process helps in achieving the objective. The organisation faced the issue while the process. In this case study, Jan is appointed as CEO with the expectation of improving the performance of the company. Jan tries to improve the performance but he faced the issues in the context of people management. It has been seen that the Jan has to adopt new style of leadership so that he can encourage the employees towards their work (Tec, 2018). He also has to improve the situation by adopting the changes at the broad level such as it has to follow the process of ADKAR Model and change management model (Toolshero, 2018). The main aim of Jan is to improve the productivity of the employee. Jan has to take the step to boost the sale by following the short and medium term process of developing of new product in the market. As per the recommendations, the company will achieve success in future by expanding the business at the international level with the minimum risk.

Recommendations for Improving Situation

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