In order to do an analysis of organizational change that Bebbington Industries will face in the years to follow, action research strategy should be employed by Tony Bebbington. The action research strategy will aid in identifying an action plan that will take the organization from a present state to a desired state in the future (Jones, 2010). The five-step action plan would consist of the following factors:
1. Diagnosing the Organization
The perceived gap between performance and a desired state (expanding operations/ growth) at Bebbington Industries is identified as being the lack of integration between functions and the fact that the current location and resources are being exploited at full capacity. The decentralized structure at Bebbington Industries will most likely not facilitate a growth/expansion strategy, therefore prompting a redesign of the structure and job designs. Bebbington Industries has secured lucrative contracts with major distributors such as Sobey’s & Superstore in Atlantic Canada, but will not be able to satisfy any other similar contracts under the current design of the structure and facility.
In order to effectively move forward with an expansion, Tony will need to conduct research at all levels of the organization. The research can come in the form of surveys, questionnaires or simple conference calls with suppliers, employees, distributors and any shareholders involved.
2. Desired Future State
Tony has shared interest of expanding the business and potentially even diversifying the product mix, but understands that his time with the business that he started from scratch is limited. Tony is on the verge of turning 70 years old and has expressed that he is physically unable to devote the time and effort in the organization that he once could. Tony, being an ambitious individual, is eager to “finish what he started”, and has stated that his goal when starting the business was to be a national distributor of cleaning solutions. In order to expand out of the local market (Atlantic Canada), Tony will need to either move to a larger location and hire more employees, to satisfy the growing demand, or open a second location and hire more employees. The constant between the two options to expand, is that he needs to hire more employees, and since the effectiveness of his current staff can be attributed to a decentralized structure with a combination of standardized and mutually adjusted functions, a redesign will be essential to the success of the growth of Bebbington Industries (see Appendix 3).
Tony is the sole founder of Bebbington Industries. Tony owns 65% of Bebbington Industries with the remaining 35 % unevenly distributed among 12 other business associates, yet Tony has 100% if the decision making ability (see Appendix 4). Tony can look to consult with the other shareholders in order to determine whether the other shareholders, also considering their input on desired future state, will financially support expansion. Succession planning is another aspect Tony will need to consider; so in order to make an effective action plan Tony will need to decide how he plans to exit his role of managing owner while the organization is on the course to his desired state – national distribution
3. Implementing Action
In order to implement action, it is evident that Tony will need to rely on some form of external agents with a combination of internal agents. Since there currently are not many levels to the structure of the organization, or a defined management team besides Tony himself, he will require outside consultancy in order to aid in the expansion. Tony can look to the other shareholders to form a Board of Directors that can facilitate the change from a one-shop location, to multiple locations/ one large location, as the conversion process is currently all done in-house. The internal agents would consist of some of the senior employees such as Matt, a chemist that has been with the company for near seven years and Beth who has been in charge of administrative duties for twelve years. These key employees would understand the culture of the small business and would be assets in managerial positions, overseeing and training new employees. This bottom-up approach could ensure that the culture of the organization is not disrupted negatively, while aiding in bringing the organization to the desired future state.
Since Tony is on the verge of retirement, time constraint plays a factor. Instead of implementing revolutionary change, it may be more flexible for Tony to implement evolutionary changes in order for him and the board to be able to evaluate each step of the process of getting to the desired state. Tony also has the option of selling the organization, which he has considered, but this is not the desired state he wishes the organization to be in, but with evolutionary change, his decision for the future of the company will have more flexibility. For example, Tony may not want to rush finding a larger location and then realize that he can’t afford/cannot acquire to obtain the intellectual capital he needs for the change to be beneficial. Introducing new employees to his current organization and training them will facilitate the expansion smoother as he will have the key resources (staff) he needs to expand.
4. Evaluating the Action
Once actions have been taken towards the desired state, it is key to evaluate them. Just like the decision making process, once specific actions have been implemented it is important to evaluate the effect it has on the organization as a whole. The first step might be to decide whether to find a larger location and hire on staff, increasing the vertical structure of the organization. Once the structure has been redesigned it should be more evident as to how many managerial positions will be required to facilitate day-to-day operations. Tony will also need to delegate some of the tasks that he assumes to other key employees as he has a limited time left in an active roll with the organization. Introducing cross-functional job designs into the employee mix and then evaluating them will also provide a good sense of the effectiveness of these rolls as the company continues to expand.
5. Institutionalizing Action Research
In order to institutionalize the action research, Tony needs to establish a set mission and vision statement for the organization. As outside investing and loans will more than likely be required to precede the organization to the desired state, Tony will need to provide potential investors and stakeholders with the vision of the organization and mission it will employ to achieve the vision. This will also provide the employees with an idea of the organizations purpose and strategic objectives, aiding in the conformity required to achieve the desired change of the organization.
1. Diagnosing the Organization
The perceived gap between performance and a desired state (expanding operations/ growth) at Bebbington Industries is identified as being the lack of integration between functions and the fact that the current location and resources are being exploited at full capacity. The decentralized structure at Bebbington Industries will most likely not facilitate a growth/expansion strategy, therefore prompting a redesign of the structure and job designs. Bebbington Industries has secured lucrative contracts with major distributors such as Sobey’s & Superstore in Atlantic Canada, but will not be able to satisfy any other similar contracts under the current design of the structure and facility.
In order to effectively move forward with an expansion, Tony will need to conduct research at all levels of the organization. The research can come in the form of surveys, questionnaires or simple conference calls with suppliers, employees, distributors and any shareholders involved.
2. Desired Future State
Tony has shared interest of expanding the business and potentially even diversifying the product mix, but understands that his time with the business that he started from scratch is limited. Tony is on the verge of turning 70 years old and has expressed that he is physically unable to devote the time and effort in the organization that he once could. Tony, being an ambitious individual, is eager to “finish what he started”, and has stated that his goal when starting the business was to be a national distributor of cleaning solutions. In order to expand out of the local market (Atlantic Canada), Tony will need to either move to a larger location and hire more employees, to satisfy the growing demand, or open a second location and hire more employees. The constant between the two options to expand, is that he needs to hire more employees, and since the effectiveness of his current staff can be attributed to a decentralized structure with a combination of standardized and mutually adjusted functions, a redesign will be essential to the success of the growth of Bebbington Industries (see Appendix 3).
Tony is the sole founder of Bebbington Industries. Tony owns 65% of Bebbington Industries with the remaining 35 % unevenly distributed among 12 other business associates, yet Tony has 100% if the decision making ability (see Appendix 4). Tony can look to consult with the other shareholders in order to determine whether the other shareholders, also considering their input on desired future state, will financially support expansion. Succession planning is another aspect Tony will need to consider; so in order to make an effective action plan Tony will need to decide how he plans to exit his role of managing owner while the organization is on the course to his desired state – national distribution
3. Implementing Action
In order to implement action, it is evident that Tony will need to rely on some form of external agents with a combination of internal agents. Since there currently are not many levels to the structure of the organization, or a defined management team besides Tony himself, he will require outside consultancy in order to aid in the expansion. Tony can look to the other shareholders to form a Board of Directors that can facilitate the change from a one-shop location, to multiple locations/ one large location, as the conversion process is currently all done in-house. The internal agents would consist of some of the senior employees such as Matt, a chemist that has been with the company for near seven years and Beth who has been in charge of administrative duties for twelve years. These key employees would understand the culture of the small business and would be assets in managerial positions, overseeing and training new employees. This bottom-up approach could ensure that the culture of the organization is not disrupted negatively, while aiding in bringing the organization to the desired future state.
Since Tony is on the verge of retirement, time constraint plays a factor. Instead of implementing revolutionary change, it may be more flexible for Tony to implement evolutionary changes in order for him and the board to be able to evaluate each step of the process of getting to the desired state. Tony also has the option of selling the organization, which he has considered, but this is not the desired state he wishes the organization to be in, but with evolutionary change, his decision for the future of the company will have more flexibility. For example, Tony may not want to rush finding a larger location and then realize that he can’t afford/cannot acquire to obtain the intellectual capital he needs for the change to be beneficial. Introducing new employees to his current organization and training them will facilitate the expansion smoother as he will have the key resources (staff) he needs to expand.
4. Evaluating the Action
Once actions have been taken towards the desired state, it is key to evaluate them. Just like the decision making process, once specific actions have been implemented it is important to evaluate the effect it has on the organization as a whole. The first step might be to decide whether to find a larger location and hire on staff, increasing the vertical structure of the organization. Once the structure has been redesigned it should be more evident as to how many managerial positions will be required to facilitate day-to-day operations. Tony will also need to delegate some of the tasks that he assumes to other key employees as he has a limited time left in an active roll with the organization. Introducing cross-functional job designs into the employee mix and then evaluating them will also provide a good sense of the effectiveness of these rolls as the company continues to expand.
5. Institutionalizing Action Research
In order to institutionalize the action research, Tony needs to establish a set mission and vision statement for the organization. As outside investing and loans will more than likely be required to precede the organization to the desired state, Tony will need to provide potential investors and stakeholders with the vision of the organization and mission it will employ to achieve the vision. This will also provide the employees with an idea of the organizations purpose and strategic objectives, aiding in the conformity required to achieve the desired change of the organization.