Leadership and Bureaucratic Organizational Structure †Free Samples

Question: Discuss about the Leadership and Bureaucratic Organizational Structure. Answer: Introduction The aim of this report is to investigate, describe and analyse change management at Enviro- a part of the Ruba-SEZ Group. Ruba SEZ is an investment management group that commenced its operations in 1971 (Ruba SEZ Group 2017). The mission of this organization is to contribute to the economic and social growth of Pakistan through its business activities. The group involves multiple divisions such as investment, electronics, automotive, consumer division such as furniture, foam and others that diligently product and distribute high quality products and services. The organization is headquartered at Mega Town Lahore, Pakistan thereby employing between 500-1000 employees who contribute to its success (Ruba SEZ Group 2017). The organization aims to develop its future and currently operates in six countries. The organization is Pakistans first privately owned Special Economic Zone that enables the investors to benefit from the infrastructure and reducing cost to improve competence (Ruba SEZ Group 2017). Enviro is a part of the Ruba SEZ Group that designs and manufactures an extensive range of innovative lifestyle solutions. Enviro has a broad range of products and services that makes them a trusted leader with high reputation and quality. The organization has a strategic and customer focused approach for developing and selling high quality products at an affordable price that raises the standard of living (Business Recorder 2015). The organization is committed to spread across Pakistan so that they can enjoy a better lifestyle through a wide range of appliances, power solutions and consumer electronics at affordable prices (Business Recorder 2015). This report shall analyse and provide recommendations regarding change management. Firstly, the purpose of reason behind the change required is analysed. Further, the change process implemented at Enviro is stated. A critical analysis of the change process is conducted that helped in identifying challenges. Certain recommendations or solu tions are suggested that could help manage the change management process (Ruba SEZ Group 2017). As the organizational vision is to have two spirits, entrepreneurship and innovation, which are the genes for Enviros unchangeable culture. The organization continually tries to improve ourselves. Enviro uses outdated in-house enterprise resource planning systems. It led to issues such as loss of control and causing the system to crack down. The previous system had obsolete accounting procedures and policies. There is a need to change the IT system so that the sales, stock liquidation and other financials can be refined in a manner that avoids loss of control. As the old systems are not very comprehensive in daily business transactions, the efficiency gap increased. Therefore, there is a need of change for the new system (Albu and Dumitru 2015). Analysis of Change Process Change occurs in the organizations for different reasons. The change was decided in a meeting on 24th February 2016 in the head office at Lahore. The meeting held put forward about the idea of new system- Oracle EBS. The reasons for which new IT system was necessary was stated. The meeting also comprised of demonstrations and benefits that could be gained with the change in software system. The two proposals were SAP and Oracle e-business suite. The main actors of this meeting were IT head, Chief Financial Officers and superusers (Laudon and Laudon 2016). Stating Objective- In the first step, the objective of change management was stated. The new ERP aims to make rapid transactions in the regular business affairs. It shall also enable to give control over the business rather that the business unit has been losing (Hayes 2014). Current review and future success- In the second step, the current state and future state was reviewed. The current bugs in the software were recognized as it took greater transaction time. The type of bugs that appeared in the software was analyzed. The loss cases were analysed that lead to declination in profits at Enviro. The old system was compared to the new system by stating the advantages that can be gained through the implementation of ERP. The ERP can result in future success as it can improve productivity, decrease costs and streamline processes (Taipaleenmki and Ikheimo 2013). Planning- In the next step, the deliverables that shall result from the change management can be provided. The degree of change required for change implementation is also measured. The resources required to materialize change was noted in terms of finance, human resources and technology. The cost of change and time available to implement the change without causing loss to the organization was analyzed (Cresswell and Sheikh 2013). Implementation- The change was implemented by organizing finance, physical and human resources. The in-house team engaged with the vendors or external stakeholders so that they could adapt to change. Milestones were set to ensure that the action plan was implemented properly. Meeting was conducted that was used to discuss the implementation and guide for the usage of ERP system. The ERP system was also tested if it helped in making rapid transactions and fix the bugs that appeared previously. After the testing was successful, the processes were integrated so that the change could be implemented (Cameron and Green 2015). Training- The next step involved training the employees in the organization. Training sessions were arranged so that the employees could gain knowledge about the operations of ERP system. Further, the training sessions were organized by the trainers so that on-the-job training could be provided and help the employees adapt to the new system. The superuser was allocated that gave different privileges to the system administration. Meeting was conducted again to assess if the employees faced difficulty in adapting with the new ERP system (Hornstein 2015). Evaluation- The last step involved evaluation of users. The employees shall be asked to provide feedback and reviews if they faced benefits after adapting to the new ERP systems. Any additional resources required as human resource, physical infrastructure or finance shall be analyzed (Van der Voet 2014). Challenges Faced during Change Management Multiple challenges were faced in the process was that there was time-line restriction. Change had to be implemented in a limited period of time that made its success questionable. There were challenges faced as the stakeholders were not willing to accept change. As the employees have been used to the old systems for financial and accounting purpose, it was difficult for them to adapt to change. Further, there was discrepancy in communication lines. The executives were not as involved as they should be while implementing change. There was a rise in departmental issues as they were linked to one another (Worley and Mohrman 2014). As there was communication gap between the departments, adapting to the change was difficult. There was cost incurred as the entire IT system had to undergo a change. The vendor schedule was disrupted as the change required investment of time and resources. If the activities and transactions were put to hold, the vendor schedule incurred losses. There was conflict between the IT and finance department. The IT department suggested the need for change, but the finance department was not very supportive of it as the change in infrastructure required investment. When the testing was conducted for SAP and Oracle, it was noted that there was testing failure. The potential reasons due to which it failed was that there was an under-estimation of resources required. A better set of trainers and more number of knowledgeable professionals could help in implementation. It was also challenging to implement the ERP system as not all the employees were comfortable with the training. The test cycles were often cut as the schedule was tight that left certain defects undiscovered (Talburt, Williams, Redman, and Becker 2014). It is analyzed that there are multiple challenges faced by Enviro such as time line restriction, departmental issues, testing failures, super users, communication, stakeholders, implementation failures and others. These issues need to be addressed in the following ways- Meetings- There is a need to conduct effective meetings for managing change. The meetings need to be planned by selecting appropriate participants. The meetings must be started on time after the agenda has been developed. The desired outcome depends upon the activities that are required to be carried. The objective of the meeting must be made clear. No other issue shall be discussed in the meeting apart from the change management involved in IT system. Evaluation of the meeting must be done by making satisfaction checks in every 10 minutes. For follow up, the people must be mailed with the memo within 24 hours of the meeting. Casual Events- For making the employees more acquainted with the change management process, casual events may be conducted. The casual events shall be based on the IT theme that can help educate the people in the organization. They shall also be able to witness the acceptance of latest ERP and other technologies in the firms that has provided them with competitive advantage. The IT professionals must engage with the remaining employees and departments in the organization so that they can initiate change in any department required. These events can change the overall mindset of the employees in the organization (Altamony, Tarhini, Al-Salti, Gharaibeh and Elyas 2016). Giving rights power to super user- In computing, the superuser is a special user account used for system administration. By giving rights or permissions of power to super user, the ordinary user shall be able to do many things that the ordinary user cannot. The accounts privilege shall be given to the ordinary user that can make the testing and implementation of the change management process smoother (Wu, Fang, Wang, Yu and Kao 2014). Cost Cutting Measures- In the midst of change management, the replacement of IT systems shall require heavy cost as the new software and IT systems need to be updated. It causes increase in cost that needs to be cut down. It is necessary to reduce cost for creating a healthy business. The processes in the entire organization and supply chain shall be standardized. The actions that can create end to end value stream maps also include processes outside the department. Standard issues and problems that are causing increase in cost such as faulty practices and others needs to be cut (Seamans and Zhu 2017). Late payables to vendor due to vary schedule- Vendor payment plays an important role in engaging and creating a strong image. However, the vendor schedule may be hampered as the new IT system shall be updated. During change initiation and implementation, the systems might not be at work. Therefore, the vendors must be convinced for late payments. The schedule for their payment might be delayed till the time when IT system is successfully implemented. Late payables shall allow Enviro to meet its immediate cost. Also, it shall give the employees to have sufficient time to adapt to the IT process (Romano 2015). Conflict Management between IT and finance- The conflict management between the finance and IT departments needs to be managed. As the IT department argues to bring a change management and modify the IT systems, the finance department argues that the cost of such change management shall disrupt the budget. Therefore, the IT department needs to call for a meeting and discuss with the finance department about the change management needed (Goetsch and Davis 2014). Development with late sittings to deal with testing failures- The testing failures needs to be managed by developing late sittings. There is a requirement for greater time devotion by the IT team so that testing can be done thoroughly. It must be noted that the ERP needs to be checked thoroughly for errors and tested so that the previous bugs can be fixed. It is suggested that the resources such as finance, human and physical resources must be sufficient to meet the testing needs. On the job training needs to be provided for sufficient testing which can be scheduled after the normal office hours. Implementation rescheduling, demands and needs analysis- The implementation of the ERP system can be enhanced by rescheduling demands and needs analysis. The demand and needs for the change management needs to be identified. The vision of the organization must be communicated in the meeting. The employees must understand the urgency to adapt to the change required. Effects after Change Management After implementation of change management, the following effects may be observed- User resisted but adapted- The users or administrator shall be limited but they shall be able to adapt with the latest technology. Fast transactions- The modern ERP can help Enviro in making quicker transactions. The decisions should be made based on the most up to-date real time information. Accurate and timely insights can help managers proactively make adjustments at any time. The business landscape today necessitates fast action and systems to support effective decision making (Langley, Smallman, Tsoukas and Van de Ven 2013). Oracle Standards usage (World standards) - Oracle applications help in developing the application fully. It shall provide industrial strength support for on-lone backup and recovery to disk failure. It has the capability to support even large databases that can help Enviro in managing its multiple business ventures. The high integrity of data storage using Oracle shall be competitive in comparison to the other bigger multinationals (Kuipers et al. 2014). Proper usage of setup- The integrated software systems can help in proper usage of setup. It allows Enviro to move orders, product, invoice, and process faster. The new IT setup shall be beneficial as it shall serve the needs of the organization properly. Setting up the right processes for automating decisions should be an easy process and with a flexible platform these processes can be adjusted and fine-tuned as the business changes and grows. Some network issues- The networking issue that exist at Enviro can be resolved. The old software may cause delay in processes and result in network issues. The modern ERP may result in improved network systems across the organization. Manual lock result in more control- The business activities can be controlled by ERP in a better manner. As manual lock shall be provided by restricting access, an ordinary user shall not be able to use the administrator settings in the software. Further, the business activities such as sales and customer management can be resolved as ERP controls these activities (Mitra 2016). Conclusion Conclusively, the above report involves change management at Enviro, a part of the Ruba-SEZ Group. Enviro has a broad range of products and services that makes them a trusted leader with high reputation and quality. The previous system had obsolete accounting procedures and policies. As the old systems are not very comprehensive in daily business transactions, the efficiency gap increased. The two proposals were SAP and Oracle e-business suite. The current bugs in the software were recognized as it took greater transaction time. The degree of change required for change implementation is also measured. Meeting was conducted that was used to discuss the implementation and guide for the usage of ERP system. Further, the training sessions were organized by the trainers so that on-the-job training could be provided and help the employees adapt to the new system. There were challenges faced as the stakeholders were not willing to accept change. 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