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Case Analysis: Norse Electronics (Portugal), S. A. Organizational Design and Management, Proof. S. McGuire Lune, 29th 2014 Problem statement: Nevertheless Norse Portugal is achieving high sales results, there seems to be disconnect between the type of changes that is enforced by Jiao Silva in the organizational climate and his conflicting management style. Jiao Saliva’s management style was shark which did not correspond to the entrepreneurial culture and the type of change that the organization had to make.
This has caused employee dissatisfaction that was evident from a climate survey delivered by external insulate and which showed relatively low employee overall satisfaction results (for 6 out of 10 categories). Analysis: Strategy: Analyzer strategy as per Miles and Snow Frameworks as company analyzes the customer processes/ equipment closely before making any changes to the technology and at the same time maintain a balanced portfolio of products with stable income generators. Distinctive Competence: Exceptional Customer Service delivered to textile industry.
As distinctive competence Norse Productivity Index – Valuable to customers; No analog on market; Difficult to imitate and fully supported y organization (Barney/Wright, 1998)2 Structure: Functional structure with a General Director on top (Lars Jorgensen), 4 divisions below him with relevant Department Directors: Customer Controller Department (N nun Berates), Sales Department (Ole Halverson), Service and Maintenance Teams (Henries Offense) and Administrating Department (Jiao Silva).
Organizational Culture: Entrepreneurial leadership enforced by Lars Jorgensen and covering the 12 dimensions of entrepreneurial organizational cultures as outlined in McGuire, S/ Hay Group, Increasing Organizational Entrepreneurship. This however was impacted by the changes made by Jiao Silva as tater tried to enforce a completely deferent approach. Jiao Silva was driving several organizational changes trough ought his work in Norse. At his first year Jiao Silva set some order company pay system by creating procedures and routines so can “legalize” the pay system.
On his second year in company major change was pushed by senior management and UP HER to change Saliva’s responsibilities from accounting to HER function. The diagnosis is an important part of the change process. Improper HER changes were done as Silva was appointed to drive some important without having much of previous experience. He enforced hangers within the organization without taking Into account the concerns from the other employees.
From the way the changes were implemented (forcing) I can conclude that Jiao Saliva’s conflict management approach was competing or “shark” – 1 OFF change that was needed was incremental as it was “an attempt to improve one part the organization without calling into question its mission, strategy, and organizational culture. ” It could also be considered anticipatory as it was “in anticipation of an opportunity that has not yet become a crisis”. 6 Based on this I would evaluate the type of change as tuning.
For tuning type of change the corresponding conflict management style is compromising as it is important to preserve harmony and peace in relationships. The customers of Norse Electronics (Portugal) were very loyal to the company due to the distinctive competence that the company had and which was in alignment with the entrepreneurial culture enforced by Lars Jorgensen (The managing director). For tuning type of change the corresponding conflict management style is compromising. Shark” conflict management style is applicable for re-creation and adaptation changes. The disconnect between the conflicting management style and the chase in the organization was seen also in his the execution of Job Evaluation project- directly adopting the Scandinavia approach without having the full understanding neither consulting with other subsidiaries who implemented the evaluation method. People with the competing (shark) conflict management style as Jiao drive changes based on their own point of view not considering any other factors.
This is inappropriate in the particular cases as neither the national culture was considered (which impacts “team effectiveness, creativity and innovation”. 8 (McGuire S. April 2009) Nor there was no need to have a “win-lose” situation. There was no communication with employees only with directors regarding job evaluation scores and process. Considering Portugal society power distance dimension (63) reflects hierarchical distance and it is very difficult for employees to provide management with negative information.
In this case Silva must be conscious of this difficulty and search for little signals on order to discover real problems and avoid becoming relevant. (Hefted)9 Dynamic HER management project: staffing and pay-for-performance. UP HER set direction to organization to plan for human capital in upcoming years. Saliva’s approach was to assess the Job descriptions and to target gaps in responsibilities and plan to mitigate those gaps. Silva hired several new roles based only on his own discretion and Job descriptions.
Pay-for-performance project was initiated and created by Silva based only on his own discretion and understanding of the business. Recommendation: Internal climate survey is representing the outcome of all changes implemented by Silva and the results could be considered as very poor. One of the reasons is Saliva’s lack of experience and collaboration during design and implementation and cultural pacifies in Portugal. According to Hefted cultural assessment in Portugal there is significant power distance 63 and uncertainty avoidance 104.
In order to improve the climate survey results Norse Portugal can take two approaches 1st to replace Jiao Silva and hire person with experience in HER management and 2nd option to perform reverse damage repair by analyze the final results of the survey, higher consultant to lead the change management project, senior management of Norse should buy-in and participate, prepare plan of action for each of the 10 graded areas from the employees. It is very important to involve all employees to have role in this change. Job Satisfaction: establish communication channels with employees to provide them with regular feedback.
Establish agreed goals and clear success levels and set reward structure Clarity of Mission and objectives: communicate clearly mission and objectives Structure and Management style: prepare management team by specialized trainings for their roles in order to support the structure effectively Synergy: training programs with other subsidiaries in order to exchange knowledge; on global level Norse should create knowledge management program so they can educate their own personnel and shorten the period of gaining experience.
Remuneration: assess industry specific enumeration and take decision on how to position the organization. Empowerment: involve employees in decision making and engage them with company’s improvement HER policies: update the existing Job descriptions; update the evaluation methodology; References: McGuire, S. J. Norse Electronics (Portugal), S. A. Barney/Wright. (1998). Sources of Sustainable Competitive Advantage. Hefted. (n. D. ). Http://egger-hefted. Com/Portugal. HTML. Retrieved June 23, 2012, from http:// egger-hefted. Mom/Portugal. HTML: http://egger-hefted. Mom/Portugal. HTML McGuire, S. J. (April 2009). NOTE ON CONFLICT MANAGEMENT PREFERENCES. McGuire, s. J. (April 2009). NOTE ON NC ASSESSMENT McGuire, S. J. (July 2008). NOTE ON JOB SATISFACTION AND ITS MEASURES McGuire, S. J. (July 2008). NOTE ON TEAM EFFECTIVENESS, CREATIVITY, AND INNOVATION McGuire, S (May 2009), Entrepreneurial Organizational Culture/ ; McGuire, S (April 2009), Note on Business Model Vs. Business Strategy. McGuire, S/ Hay Group, Increasing Organizational Entrepreneurship McGuire, S (2008) , Managing change in non-profit organizations