Research Paper on Tiger Adapts to Economic Changes: Overcoming 1997 Crisis

Introduction

The dynamic economy was of the primary causes of external pressure for change at Tiger, forcing the organization to adapt. Tiger initially experienced constant growth and development, before changes in the economy significantly impacted the business. The 1997 economic crisis, for instance, hurt Asia and caused a financial meltdown within the region. The financial crisis harmed Tiger, forcing it to make several alterations to restore growth and development after that period (Snell, 2002). Tiger, therefore, formulated a new strategy that involved new product and service development, enhanced customer service, improved cost evaluation as well as cautious market expansion.

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Market Saturation

The market base for essential products became saturated, hence displaying the need for change to beat the competition for products and customers. As the economy grew after the crisis, several competitors emerged from across the globe, including multinational companies. Tiger's market gradually became saturated, as the competition for core products intensified (Snell, 2002). The company, therefore, needed to change particular aspects and formulate new and innovative strategies in response to the enhanced competition.

Sources of Internal Pressure for Change

Inadequate Skills and Knowledge Base

Tiger's employees lacked adequate knowledge and skills to drive the company through new challenges, hence the need for skill development. The organization's staff believed that Tiger possessed the potential to overcome the emerging challenges, but first needed to enhance the skills and knowledge of its employees (Snell & Hui, 2000). Several workers encouraged self-improvement and constant upgrading to not only survive but also grow in the new business environment (Snell, 2002). Operations in the new environment were turning out to be very challenging, with employees such as Mr U admitting that his knowledge was inadequate in such a situation.

Deficiencies in the Existing System

Mr X believed that the bureaucratic system of management was ineffective in the new business environment and therefore required change. Tiger possessed several managers with old mindsets that were only beneficial before changes in the external environment impacted the company. The bureaucratic managers did not see any need for change, stating the good results from the system (Snell, 2002). However, in the present economy, Tiger required a change of policy to accommodate emerging needs.

Images of Change

Interpreter Image

The interpreter image allocates the change manager the responsibility of assisting employees in making sense of occurrences and developments that represent a changed company. Managers hold the role of creating meaning for other individuals within the organization (Palmer et al., 2006). Workers will change their mindsets only after they understand and agree with the point of change but must possess the required knowledge and skills. Employees need to see their managers and leaders actively modelling the new system that constitutes of rewards and recognition methods aligned with the new behavior (Palmer et al., 2006). The interpreter image is visible in Mr X's action to let everyone know that he was a passionate supporter of Total Quality Management. TQM was one of the change programs in Tiger, and Mr X acknowledged and utilized this image's principle of role modeling (Snell, 2002). He recognized the need to get involved and become a part of the program. The employees, in turn, appreciated Mr X's level of involvement.

Mr X's action to create a Quality Day and recognize the best team illustrates the interpreter image in practice. Around six quality improvement teams presented their projects in front of Mr X at a particular Quality Day (Snell & Hui, 2000). The presentations represented how non-managerial staff had contributed to the organization's improvement and crucial aspects such as cost savings and earnings (Snell, 2002). Mr X, assisted by other top-level managers, decided on the best project team and offered the best presentation team the opportunity to compete globally against other companies.

Coach Image

Similar to a sports coach, the manager depends on formulating the proper values, skills and drills within the organization and amongst employees to attain desired outcomes. The manager alters and adjusts the capabilities of the workforce to ensure success in a competitive scenario (Palmer et al., 2006). Mr X's actions promote organization development, an approach that the coach image recognizes. Coach image focuses on the essential nature of humanistic values such as honesty and integrity, as well as democratic values such as freedom of choice and involvement. During the implementation of Total Quality Management program, Mr X demonstrated the democratic value by offering around 300 non-managerial employees the chance to vote and decide on the best presentation team during a Quality Day (Snell, 2002). Tiger's managing director also provides all employees with the opportunity to share their concerns and freely express their feelings and suggestions.

Additionally, Mr X demonstrates the coach image by encouraging discussion groups and presentations to formulate the proper changes. Mr X allowed employees to form around six groups, with each team required to present their discussions to the rest of the employees (Snell, 2002). The managing director only issued the general direction as every idea originated from the department managers. Mr X stepped aside to allow full employee involvement and assisted in screening and evaluating the proposed approaches.

Caretaker Image

A manager takes care of the organization and protects it from the internal and external forces that may impact performance. The change manager supports his actions using the life-cycle, population-ecology and institutional theories (Palmer et al., 2006). The life-cycle theory believes the existence of different phases in an organization's life - birth, growth, maturity and decline. The theory assumes that managers hold little control over this development, and should, therefore, take proper care of the company through the different phases. The population-ecology theory also believes that managers have less control over change since the external environment significantly affects the firm. The institutional theory assumes that external pressures on the organization prompt similar decisions across the entire organization (Palmer et al., 2006).

The caretaker image is evident in Mr X's reactive communication strategy to inform employees of the need for change. Concerning the purpose of change, a caretaker manager focuses on telling the staff the reason to change. Mr X identifies the issue concerning job loss perception and advises the employees how to survive the subject best (Snell & Hui, 2000). He acknowledges the problem and assures the staff of their jobs if they actively participate in the change process.

Depth of the Desired and Actual Changes

The desired changes within Tiger involved making it a learning organization. Mr X was keen to communicate some of the positive effects that the organization would expect after becoming a learning institution. Tiger would be able to develop employees, facilitate the learning process and promote new approaches to challenges within the workplace (Snell, 2002). The company would also be able to formulate more learning opportunities and transform vital ideas into essential knowledge (Snell & Hui, 2000). Mr X structured the change programs to ensure that they intended to offer equal chances to all workers and invest in their development through training programs.

The change programs impacted the organizational culture at Tiger as well as the output quality. The Total Quality Management program, specifically, intended to promote a culture of change within the organization. The program focused on employee education to enhance awareness of the need for quality (Snell, 2002). As a result, workers within the company became more aware of quality concepts and tools and developed a sense of responsibility for quality. The change program also created a workplace where each individual is free to share an opinion or express a feeling.

Changes at Tiger also impacted the business processes significantly. The BPR program's objective was to create more efficient and leaner procedures that contain well-defined duties and responsibilities (Snell, 2002). The organization intended to install information technology into the various processes, an action that called for restructuring from scratch and eliminating the functional department.

Resistance to Change

Resistance is a common challenge that managers face when implementing change in the organization. Although resistance to change appears damaging, it can sometimes be constructive to the organization (Palmer et al., 2006). Employees often fail to welcome change due to unawareness of the potential benefits such as higher remuneration, improved working environment and operational efficiencies. Managers may use resistance to clarify the purpose of amendment, encourage dialogue among employees, listen to their concerns, and consider new possibilities.

During the initial phases of Business Process Reengineering at Tiger, many grassroots workers were resistant to change, expressing the fear of losing their jobs. A significant number of employees initially viewed the BPR program as a lousy idea containing adverse effects (Snell, 2002). The perceived out, such as the prospect of enforced layoffs, prompted negative feedback from many non-managerial employees.

Tiger's management level expressed the shocking nature of the perceived effects. The negative feedback during the initial phases of launching the change programs called for a management plan. The contingency approach to managing resistance argues that there each situation calls for a specific policy (Palmer et al., 2006). In Tiger's case, the proper action involved enhancing education and keeping the people informed. The management demonstrated to employees and increased their awareness of the reason, as well as the possible benefits (Snell, 2002). Tiger assured all workers of their job safety if they willingly learn and adopt the proposed new approach and policies.

Tiger's method of managing resistance was active as the fears declined after implementation and execution. Employees changed their perception after acknowledging that the organization required change. Communication between the management and employees improved, causing a better understanding of the messages and quicker agreements. Additionally, the management enhanced its understanding of employees' feelings and sentiments and realized the need to implement the change programs gradually.

Effectiveness of the Change Programs

The BPR, TQM and Employee Redeployment programs in Tiger transformed the traditional organizational culture to a more dynamic one. A majority of employees acknowledged the progress made since Mr X took over as the company's managing director. Tiger enhanced its focus on the competitive aspect of the business, shifting from the organization's status as a traditional utility company (Snell, 2002). As a result, employees improved the habit of sharing ideas and vital information freely. Before implementation of the change programs, Tiger's workplace experienced a low level of information sharing, with many employees stating the need for permission from the management before sharing an idea.

The change programs in Tiger helped the management to shift its focus to more crucial aspects that promote productivity, efficiency, growth and development. Before Mr X launched the change programs, Tiger put a lot of emphasis on employee loyalty,...