Construction Case Study Essay

Resistance to organisational change is a natural reaction to those who want to protect their self-interests in the organisation. However, it is clear from the case study that the employees of XYZ Construction showed teeny-weeny resistance to the change utilise by the incoming managing director.The primary reason that change was welcomed was delinquent to the former Managing theatre directors perplexity style which was non widely accepted in the organisation. Employees feared him and it was not acceptable to speak openly and honestly. Employees were aware that this demeanour was often counterproductive, and created a negative impression with the former Managing Director. As the invigoratedly appointed Managing Director had previously worked at the organisation, he was aware of certain of the issues and concerns of the employees. The vex gained from working at other companies, and the reputation he build from his career prior to returning to XYZ Construction ensured that the employees had faith in his leadership ability.The new Managing Directors first step in developing kinds with managers and employees was to check key employees into Senior Management Team activities. His actions made it clear that he was willing to retain the current workforce and promote from within the organisation. This created a commanding environment which encouraged employees to work harder and produce results Employees and managers did not fear loss of employment with the new Managing Director, but rather felt include in the stopping point making process.The new Managing Directors attitude and actions were clear and concise which addressed the problems within the organisation. His actions were collectively moving in the same direction, to achieve a clear goal of improving internal and out-of-door relations and improving the organisations performance. He correctly identified problem areas such(prenominal) as relationships, communication and the organize of the organisati on. An incorrect diagnosis of the problems within an organisation may result in incorrect changes beingness implemented, which can lead the organisation into complete disarray.The new Managing Director identified two crucial activities to be performed in conjunction with each other to enable the transformation of theorganisation. The two activities identified wereTo introduce new practices and techniques to repair service to customers and thus mend the organisations performance.To change the attitudes and behaviour of employeesBy identifying the two activities above, the new Managing Director identified crucial steps to meliorate its performance. Only through improving services to customers can the overall organisations performance improve. A satisfied customer is likely to return and press the organisation to others. This is directly linked to the growth of the organisation. The new Managing Director is aware that to provide better service to customers, the employees will have to develop and learn new practices and techniques to ensure superior service quality is provided to customers.The effectuation of the second activity is critical to the success of the overall goal of improved customer relationships. The employees and managers attitudes and behaviours are to be transformed to ensure the best results are achieved. Employees and managers who were unhappy under the former Managing Director are more willing to adhere to the recommended changes. The willingness to adhere also stems from the approaches presented being feasible and there is no fear for loss of employment. The changes bring new opportunities for employees and managers to develop in their current roles and possibly grow into new roles. The potential corroboratory outcomes as a result of these changes are a contributing factor in the lack of resistance experienced by the Managing Director.The court effectiveness of the changes implemented also contributed to the lack of resistance from emp loyees. The new Managing Director introduced asmall-scale Kaizen programme. The programme was introduced with the four goals namely (Burnes, 2009, p. 162) Improvements could be achieved on a quick pathetic cost/no cost basisPromote teamworkBuild managers confidence such that they can delegate workEmpower moduleThe goals above are all positive resulting in the support of employees and minimises resistance to change.An additional contributing factor was the Managing Directors communication regarding his commitment to this possibility. This eradicates any confusion regarding the implementation of this change, and strengthens the buy-in of employees and manager.3 Introducing a new management styleThis section will discuss the following tilt and to what extent I take for or disagree with the statement the new Managing Director has not changed the culture of XYZ Construction but has merely introduced a new management style.3.1 Organisational CultureTo understand the statement clearl y, the term organisational culture needs to be defined and understood. Organisational culture is defined as thecollection of basic assumptions, values, norms and artefacts that are shared by and influence the behaviour of an organisations members (Burnes, 2009, p. 600). Organisation culture is also commonly defined as how organisations do things (Watkins, 2013). 3.2 Management StyleThe management style of XYZ Construction changed from an commanding management style to a participative style when the new Managing Director was appointed. The former Managing Director was feared by his colleagues, where open and honest relationships did not exist. Autocratic leadership is an uttermost(a) form of transactional leadership, characterised by a manager who makes findings on his own without input from colleagues. This type of management style has the advantage that decisions can be made rapidly and expeditiously, however this approach is not suitable in all organisations and is limited in its application. The disadvantage of this approach is that it leads to high employee turnover, demotivated employees and poor performance (Unknown, 2013).The autocratic management style of the former Managing Director was not suitable for XYZ Construction and was identified by the parent company. The parent companys view was that the company was underperforming due to the poor management and lack of cooperation within the organisation. Once the former Managing Director retired he was replaced by a new Managing Director with the primary objective to improve the overall managerial competency and improve the performance of the organisation. The new Managing Director displayed a Participative management style, which was required for the necessary operation, culture and structure changes in the organisation. A Participative management style is characterised by managers that use various decision procedures that allow other people some influence over the leaders decision (Yukl, 2013, p. 11 5). This is clearly displayed in the New Managing Directors action of inclusion of key employees who were not directors to participate in Senior Management Team. This action has a pregnant touch on on relationship building within the organisation and an impact on the structure. The organisation under former management was hierarchical conscious which hinders the developmentof relationship and the sharing of information and ideas. The new approach in management style results in a culture change in the organisation.3.3 DiscussionI agree with the statement, with the effect that a culture change has interpreted place in XYZ Construction under the new Managing Director, however this was achieved by the change in the managerial style rather by changing the culture.The new Managing Directors participative managing style, has allowed for a culture change. Employees and managers are able to speak openly and honestly changing the norms within the organisation. The transformation is a long- term change with initiatives rolled-out in intervals. This allows for employees and managers to acquire and develop the necessary skills and characteristics at each level before moving to the bordering step of the transformation. The new Managing Directors management style requires that the attitude and behaviours to be changed of both employees and managers to meet the demands of the initiatives aimed at increasing the organisations performance. My reason with the statement is not significant, as the new Managing Director has brought upon a new management style however the initiatives that he proposed require a change in culture. A culture change of the employees and managers supports that new Managing Directors management style.4 South African contextSouth Africa as a realm has been transforming during the post-apartheid regime. The most significant transformation that is currently taking place in organisations is the implementation of various BBBEE initiatives, one of which is to increase in females in the workplace. The BBBEE initiative focusses on reconciling indiscretions of the past and allowing for the workplace to be balanced based on race, gender and disabilities. There are many examples of organisations in South Africa where this transformation has interpreted place. An example of this transformation is in PPC Ltd. whichappointed Ketso Gordhan as the new CEO effective 1 January 2013 (Allix, 2012). Ketso Gordhans extensive experience in multiple industries such as his role as director-general in the Ministry of transport, serving in the Presidency and head of private equity in FirstRand makes him extremely capable and suitable for the position. His experience in the multiple he roles he has fulfilled has provided him with knowledge as to how to bring change to an organisation. The cement industry had faced a major illumine in sales during the financial recession coupled with competitive forces. These factors had started to be addressed by the for mer CEO with the goal of growing the commerce and earning a significant portion of profits through operations in Africa (Allix, 2012).It was at this point that Ketso Gordhan was appointed with the crucial task of growing operations into Africa. The approach that was interpreted by Ketso Gordhan to achieve this goal is based on two key strategies of expanding business into Africa and to keep current operations in South Africa to operate efficiently (keep the home fires burning) (Allix, 2013). Ketso Gordhan made the goals and the direction taken very clear to ensure a collective drive from employees. His actions are the same actions taken by the newly appointed Managing Director of XYZ Construction.Ketso Gordhan made hes commitment to PPC Ltd. clear through his actions as well as through the encyclopedism of PPC Ltd. shares summing a total of R30 million (Shevel, 2014). This action indicated internally and externally hes commitment and faith in the organisation to achieve a signific ant improvement in the organisations performance (Hasenfuss, 2013). Ketso Gordhans management style has brought a culture change in the organisation. The culture change has included a more hands-on approach from the CEO with constantinteraction with employees and managers. This once again reinforces his ideas and motivation in the workplace.Earlier in 2014, Ketso Gordhan reduced his payment by R1m in an effort tosupport the reduction of salary gap between the highest and the lowest give employee in the organisation. He took grievances from the lowest paid employees and acted to judge the items. He approached the top 60 managers, asking whether they would volunteer their increases to be distributed to the lowest paid employees. This approach enabled the organisation to increase 1 200 of the lowest paid employees salary by R10 000 per year and an interest related increase later in the year (Shevel, 2014).This initiative received great response from employees, which was primarily at tributed to the tactile property that grievances were heard and action was taken. The initiative allowed the CEO salary to reduce from 120 times the lowest paid employee to 48 times with the clear goal to tense 40 times in future. This was achieved through the decrease in the highest paid salary and the increase in the lowest paid salaries (Shevel, 2014). The initiative has an impact external to the organisation. In South Africa which currently is facing numerous problems, one clear problem in the large economic gaps that exists. The actions of Ketso Gordhan are an encouragement to fellow JSE-listed organisations CEO to follow suit and attempt to reduce the large salary gaps that exist in many organisations. Collective actions will enable the realm to reach goals of social development at a faster rate. Ketso Gordhan is a participative leader which is clear through his engagement with the organisations employees and through the initiative he has developed. He has initiated the I C are, PPC Cares programme coupled with the Kambuku philosophy in the organisation (PPC Ltd, 2014). This philosophy and initiative is aimed at addressing the following (PPC Ltd, 2014)Disparity between the cost of living and salaries of lower-level employeesSubstandard housing and access to housing for some employeesEffectiveness of first-line managers and team membersIndividual development plans and organisational climate initiativesImproving the perception of employees in equipment casualty of job satisfactionThe philosophy is aimed at not only improving the internal environment but also the external environment of the organisation, such as the assistance in providing housing for employees. The approach is very fitting in the South African context.ReferencesAllix, M., 2012. Ketso Gordhan to replace Paul Stuiver at PPC. Online operable at http//www.bdlive.co.za/business/industrials/2012/10/11/ketso-gordhan-toreplace-paul-stuiver-at-ppc Accessed 3 May 2014.Allix, M., 2013. Safika dea l to help PPC keep the home fires burning. Online uncommitted at http//www.bdlive.co.za/business/industrials/2013/08/08/safika-deal-to-helpppc-keep-the-home-fires-burning Accessed 3 May 2014.Burnes, B., 2009. Managing Change. fifth ed. Essex Pearson Education Limited. Hasenfuss, M., 2013. PPC chief Ketso Gordhan splashes out on cement firms stock. Online Available at http//www.bdlive.co.za/business/industrials/2013/09/12/ppc-chief-ketsogordhan-splashes-out-on-cement-firms-stock Accessed 3 May 2014.Investopedia, 2014. Definition of Kaizen. OnlineAvailable at http//www.investopedia.com/terms/k/kaizen.asp Accessed 16 April 2014.PPC Ltd, 2014. Our People. OnlineAvailable at http//www.ppc.co.za/about-us/our-people.aspxAccessed 3 May 2013.Shevel, A., 2014. Ketso Gordhan Laying the foundations for a fairer workplace. Online Available at http//www.bdlive.co.za/business/management/2014/03/23/ketso-gordhanlaying-the-foundations-for-a-fairer-workplace Accessed 3 May 2013.Stroh, U., 2005. Chap ter 3 Approaches to Change Management, Pretoria University of Pretoria etd.Unknown, 2013. Leadership Styles. OnlineAvailable at http//ofd.ncsu.edu/wp-content/uploads/2013/01/Leadership-Styles-1_11_13.pdf Accessed 30 April 2014.Watkins, M., 2013. What Is Organizational Culture? And Why Should We Care?. Online Available at http//blogs.hbr.org/2013/05/what-is-organizational-culture/ Accessed 30 April 2014.Yukl, G., 2013. Leadership on Organizations. 8th ed. Essex Pearson Education Limited.