Employees’ knowledge, their skill set, efficiency and their ability with production should be taken into account when using the Leavitt’s diamond framework besides noting their current job description. When a change comes up in an organization it is often seen that many tasks and job descriptions are replaced with new requirements. The qualitative aspect of the new tasks and goals should be properly evaluated. The structure of an organization includes not only the system of hierarchy but also the communication patterns, relationships, and coordination between the different levels of the organization. The technology component of Leavitt’s Diamond means the application of the new ways, new software and other new technological inputs when facing with organizational change.
Introduction: Organizational Change Change is consistent in nature. During a course of its operation, a business, goes through many changes. The change may be due to political, economic or other reasons. To survive and flourish in operations, the business should adapt itself to meet the change successfully. The organization can adapt to change by making changes in technology, process, people or structure.
After that, the company change to use order system mode of production and marketing. At the same time, the Value Chain of the company has been totally changed. The revolution of business idea and traditional value chain is the key for FAW-VW to transition. Production and Distribution have been optimized which means value chain primary activities innovation. Improving process is the key to implement order system mode of production and marketing.
And the company needs to take funds, labour and time to rebuild the reputation. The managers may think of changing the suppliers and make effective strategies to drum for more customers. The auditors are easy to neglect these points and give exact audit comments. This kind of risk is the audit risk that the auditor represents an inappropriate audit opinion on a financial statement that contains significant errors. It consists of inherent risk, control risk and detection risk.
Unit 3: Learning outcome: Understand the background to organizational strategic change AC: 1.1 Discuss models of strategic change Every day, companies face changes, such introduce a new product, or restructuring the organization. Strategic change management allows companies to carefully and responsibly make need changes. Change is necessary for organization to continue to thrive and meet and exceed the competition of industry competitors. There are many models for managing a change process. Now we have understanding strategic change management are: Mckinsey’s 7s change model and kurt Lewin’s change model.
The flexibility of agile methods The flexibility of agile methods facilitates the management of unforeseen events. Ultimately, an agile method will bring flexibility for project management, higher quality deliverables as they are tested continuously, and better control of the overall budget. Automated rules and controls for better control Many rules govern the market banks, which apply to the heart of IT projects. Many controls and validations are implemented at different levels, because any breach of a rule can be very expensive later on the company. Waterfall
The post office was experiencing serious economic turmoil and overall poor performance and as a result, the change generators ventured into a process of change management. Change management according to Lewin's Change Management Model states “Change Management is a broad discipline that involves ensuring change is implemented smoothly and with lasting benefits, by considering its wider impact on the organization and people within it. Each change initiative you manage, or encounter will have its own unique set of objectives and activities, all of which must be coordinated.” This model is divided into three (03) phases unfreezing, changing, and freezing. In the case these phases were adapted as Generating change, Implementation and Adoption.
The time realizing cash is on credit sales it depends on upon the firm’s credit strategy reflected in the average collection tenure. It can be easily distinguished that the cash receipts from the sales will be exaggerated by changes in the sales book and the firm’s credit policy. To mature a realistic cash budget, these variations should be accounted for. If the ultimatum for the firm’s products loosens, sales will fall and the average collection period is likely to be lengthier which increases the chances of bad debts. In preparing a cash budget, justification should be taken off sales discounts, returns and allowances and bad debts as they reduce the number of cash collections from debtors.
By contrast, the internal forces inside an organisation can lead to a change (Griffin, 2003). Organisation need to clearly clarify the factors, which have triggered the changes. After that, a change management approach should be undertaken, which comprises of change management process, approaches adopted to minimise the resistance to change and an overall performance evaluation program of the change. companies usually change their strategy in response to a change in its industry notably a disruptive change that forces the company to rethink the way in which they are delivering value to the customer (Markides,2006). The typical external drivers of such innovation include globalisation, deregulation, the advancement in information and communication technology and even socially-oriented companies that service the bottom of the pyramids segment.
His research highlighted key lessons which he converted into practical eight- step model. Step 1: Establishing a sense of urgency: Examine the company’s competitive realities, marketing trends, financial performance Step 2: Creating the guiding coalition: Form powerful coalition in terms of titles, information and expertise, reputation and relationship Step 3: Developing a vision and strategy: Create vision to help the change effect and strategy to achieve that vision Step 4: Creating and communicating a vision for change: Make use of companies existing communication methods and also try advance or modern methods for communication Step 5: Empowering broad based action: Remove all obstacles