Organization Change Organization Change ? Describe the present of situation of the company, and the main reasons that causes the problems. 3J Tech Company now is faced with high percentage of sales drop and huge amount of its customers complaining. The situation is overwhelming because the customers have been asking not to continue the contract with 3J Tech, and turn around to do business with its competition. Therefore, this results that the company is losing its market share and reputation in the market. All of these problems are occurred is because of its product with poor quality.
Moreover, the main reasons that causes “poor quality” of the product are its inefficiency and inefficient material, people, production of technology, and management style. ? Introduce the company’s history and the principle of business and its environment such as its competitors. 3J TECH Corporation was found in 1984, and the CEO is wenj Huang. The company’s main business that is involving in computer network products such as Fax Modem, PCMCIA Cards, Tel Talk etc. Actually the company was doing well in the beginning because of its sales and marketing ability. However, because of Huang’s management style, it has been destroyed the company’s performance.
Huang asked the employees must work hard to the company but he did not take care what the employees’ need; for example, the employees in sales department asking for sales commissions that was totally ignored by Huang. The same situation also happened to the engineering department asking for the need of experts to support the performance was not concerned by Huang. In addition, Huang slashed costs and funneled the cash to other enterprises in which he was involved. Needless to say, 3J Tech members despised him. When the time went by, the employees lost his or her enthusiasm to work for the company because of largely unresponsive to worker concerns.
Therefore, the quality of the product went down because the employees did not work hard as before. Then, it results the order went down. When the company received more complaining of poor quality from its customers, the only thing Huang did was to put a lot of pressure on the managers of each department. Alan Guo, who has so many working experience in sales and marketing, the manager of sales department has no moral in malpractice. Kiwi Huang, who was hired with high salary from Wenj, the manager of production department and he was the senior engineer form one of most famous TECH corporations. Basically, he obeyed to Wenj’s order, and he followed Wenj’s management style.
Peter Zhuang, who has professional knowledge in technique of research and development, the manager of engineering department. The managers then blamed all these problems on the workers; therefore, it caused high turnover rate in the company. In contrast, Huang did not feel bad because of employees’ often resignation because he believed he could always hire the employees who have more loyalty to the company. When the new employees come to the company, they won’t work hard to the company because of the company’s culture tell them that “you gain not thing from the company even though you work very hard for them; the only thing you will have is a lot of blaming.” Therefore, the employees won’t stay longer than two years on average in the company. Actually there are more than 100 organizations which are doing the same business like 3J Tech in the market.
Comparing with its competitors, the company is considered as young and developing company in this market. Therefore, in order to gain the market share, the company’s strategy was to offer cheaper price than its competitors to the customers. ? As a new CEO, give my assessment of the situation in global. Use fish bone to analyze the main reasons that causes poor quality of the products. Eventually Wenj Huang was forced out because his poor management style resulting the company’s poor performance, but Huang era left deep internal organizational wounds. Jing-Wen Hsieh, the new CEO, who came to the company after Huang left. Hsieh finds out that the company’s sales go down dramatically is all because poor quality of the products which resulted its customers replacement, and she realizes that if she wants the company’s business back, “quality” of the product is the key. However, in order to know how to improve the products’ quality, she must first analyze the main reasons that cause poor quality the products.
And they are poor management style, unhappy employees, unprofessional technology and inefficient and inefficiency material. What surprised her is that Huang’s management style left the organization with serious internal problems. There are no effectiveness communication channels that established in the company; there are no open communication and extensive information sharing in the organization. Therefore, it resulted the employees of each department worked on their own, and they do not have general knowledge and information what others department does. The organization’s system, which means its organization of processes, does not consider each process should not only complete in itself but also need to work together.
This came out obviously that there is lack of cooperation in the environment. In addition, there is lack of committed leadership through the organization. Needless to say, the managers or supervisors are less caring to the employees. Of course, this poor management style directly affects to the employees in the organization. Hsieh find out that the reasons why the employees are unhappy to work in his or her job is because they are lack of support and lack of training, when the problems occurs. Moreover, there is lack of trust in the organization. Most of employees are afraid to take responses and to make mistakes because there were only blames not rewards.
The employees do not see their future if they continue to work for 3J Tech Company. Therefore, the organization’s employee turnover rate is extremely high. According to the organization’s culture, when the new employees come to the company, they won’t work hard for the company because the environment clearly show that they gain not thing from the company even though they work very hard for 3J. Moreover, the more ideas they contribute the more responsibilities they have. If the things are not going well, the only thing they would have is a lot of blaming. Therefore, the employees wouldn’t work for the organization, and they treated 3J Tech company as a training institution or their springboard for next job.
As long as they attain they need, then they leave the company. Mostly the employees will not stay longer than two years on average in the company. At the same time, Hsieh figure out that the organization foes not build up the good relationship with its suppliers. There are two reasons result this bad relationship with its suppliers: the first one, the organization often delay the payment to it suppliers; therefore, it causes that the suppliers are not willing to do business with the company. Moreover, the second reason is that the company does not range the purchase timing, and it results the suppliers could not deliver the material on time.
Therefore, it then affectes the company’s production line which somewhat needed to stop producing the product until they received the materials. Moreover, because the company’s strategy was to offer cheaper price than its competitors to the customers in order to expand its market share, therefore, most of components of the product were offered cheap prices by the small and low technical suppliers. In addition, there are no long term partnership with its suppliers because the company often changed the suppliers, when they found out other suppliers which could offer them even cheaper prices of materials than their current suppliers. This changing around suppliers which caused high degree of chance to buy incorrect quality of the materials. Furthermore, Hsieh also realized that production department and engineering department were lack of the professional technology. This not only caused more chance of deviations that occurred in the process of production, but also prevented research and development of the product.
Moreover, there were poor equipment maintenance and old equipment existed in production department; needless to say, it easily caused that the products did not have good quality. At the same time, there was lack of experts in production department and engineering department to handle the work. Only few professional engineer work in these two department, but most of employees did not have professional skill or knowledge. And this often caused more mistakes, then end up spending more time to fix the products. ? Use SWOT analysis to know the company’s strengths, weakness, opportunities, and threats.
Gather the additional information which is needed in order to implementing change by survey or past experiences (similar situation) happened to other organizations. Although she had clarified main reasons that cause poor quality the products, she still needed to analysis what the company’s strengths, weakness, opportunity, and threats because this would help her to understand the company’s int …