It may be terminal. This is all very sudden.
The Star model notes that strategy, structure, processes and lateral capability, reward systems, and people practices are the five necessary elements to ensure an organization can adapt and thrive during implementation of change. In the case of Boeing, they could have benefited by having a set strategy in place that specifically focused on process and people.
Strategy, according to the Star model, is the vision, direction and competitive advantage an organization has in their respective industry. Vision must be bought off on at the highest level and must be explained and pushed down throughout the organization. The direction of the organization during and after the change must be clearly defined as well.
In order to maintain success in the business environment, the organization must also maintain their competitive advantage, executing strategies to continue to grow and remain viable in their business.
The chain of command is the power and authority, granting the decision makers ability to determine what is best for the company and allows for the reporting relationships, or hierarchy, within the business to be defined. Clearly defined roles within an organization encourage accountability and establish a framework for teamwork and collaboration across departments.
The Star model explains processes and lateral capability as the internal and external networks, processes, teams, integrative roles and matrix structures. All of these elements directly contribute to the formal and informal activities within the organization, or the flow of information.
A horizontal flow of information directly impacts the workflow and relationships within an organization, while a vertical flow of information would be more inclined to affect budgeting or planning. In the Star model the reward system and people practices are very closely related.
People practices influence and define employee mindsets through training and development, rotation and promotions within the organization. These two aspects of the Star model contribute to the morale of the workforce and directly impact the productivity of the organization. By investing in their team of people, a company will ensure their success is shared and appreciated by the entire organization.
The five elements that make up the Star model, clearly define the steps to setting up a strategy to prepare for and embrace organizational change. Defining the roles of each element of the organization allow for communication throughout the organization and encourage employee buy-in, thus promoting the success of the organizations need for change.
Boeing definitely needed to undergo some changes to remain viable in their industry and had they had a strategy in place to counter the fears, their transition period could have been much simpler and easier to digest by the workforce.
Question 2 Numerous studies have been conducted on how implementation of organizational change impacts a business. One of these noted by Palmer et al. After reviewing the Boeing case, it appears the Star model may be best suited to help identify and rectify the issues that caused turmoil at Boeing approximately ten year ago.
The Star model is described as a framework that guides the evaluation, planning and execution of an organizational change to guarantee sustainable performance improvement. The Star model is made up of five elements that direct the assessment and planning for organizational changes.
The elements are strategy, structure, processes, reward systems, and people practices. Strategy is understood to be the new direction an organization is taking in response to environmental forces, which can include a set of strategic business goals and a high-level vision for achieving those goals.
For example, the main change at Boeing occurred in when the Airbus booked more orders than Boeing, which become a major competitor of Boeing. For example, the organizational chart needed to be changed. Boeing implemented a new system that allowed their suppliers to examine stock levels and restock supplies when they dipped below a predetermined level.
For Boeing, it was evident that the process of automating the production line was an obstacle, so Boeing had to seek out a new system that would help achieve the goal streamlining internal systems and centralizing their informational technology.
In response to the low employee morale, it was crucial that Boeing develop a reward system to motivate their employees and raise morale. Implementation of a reward system can aid an organization with improved employee satisfaction.
In the Boeing case, a new system was needed and all the applicable employees who were required to learn about the new system were provided with the necessary training and education, which increased the efficiency of the company while supporting the employees morale by assuring them they were needed assets for the success of the organization.
Overall, the Star model helps identify and counteract the main problems Boeing encountered and allows for a strategy to avoid the situation Boeing ended up in. Implementation of the Star model in this case would have ensured that change initiatives at Boeing were driven by a set of strategic business objectives and would have cultivated a strong employee buy-in and an increased success rate.
Perrier Question 1 Perrier has been a well-known brand for many years. However, despite their popularity in the s, they have experienced declining sales since a dangerous chemical was found in a bottle in the s. Nestle acquired the Perrier brand in and has struggled to implement developmental changes to the organizations since the acquisition.
The majority of people are somewhat resistant to change; however, the CGT Union, primarily responsible to the resistance in the changes in the Perrier-Nestle merger, is deeply committed to the resistance.
Discomfort with change and uncertainty is a natural response and with limited knowledge or understanding of the reasons for the change or undefined goals, the process of changing can be difficult.Case Study Analysis: Boeing and Perrier Boeing Question #1 Galbraith’s Star model, as described by Palmer et al (), identifies five key components of organizational change .
Boeing Case Study Introduction In this case Boeing faces a number of challenges in determiningthe viability of bringing forth the 7E7 aircraft series.
Critical Facts: Boeing is the world’s largest manufacturer of military and commercial aircraft, which was founded in by William Boeing and Navy Engineer Conrad Westervelt in the name of Pacific Aero Products Company in Seattle, which after active participation in World war-I was renamed to Boeing Airplane Company (Frederick, ).
The key elements of the resistance to change described in the Perrier case are: Lack of communication and the companies inability to inform the employees of what changes affected production at Perrier, the company made excessive changes, the company introduces a series of changes and the people felt the changes were unnecessary, and they were unsure if they would still have the required skills.
If you are applying for a postgraduate degree in the US you will usually be required to write a statement of purpose (SOP). The SOP is a fairly long essay ( words), in which you give an honest and carefully considered presentation of your goals.
Then, review the case study on Boeing (ATTACHED) (to understand a bit about how activity-based costing and activity-based management can impact managerial decisions within firms.
Once you have completed these two activities, respond to the following questions, in the space provided below.