The Need for Continuous Improvement
Discuss about the Model of Knowledge Development Process.
The organizational development implies the development of the organizations in which the individuals belong. The organization can be any organization. It can be a school, a college, a company or even the reading groups. Development in the organization is needed in order to develop the structure of the organization. The development of the organization is required as it would make the experience with the organization a better one. In the contemporary world the management should bring about the effective changes that are required in order to make progress in the competitive world and to sustain in the competitive world. The change and improvement in the operations of the company should be made wherever required. Without the development plan of the organization which is a major part of the change management would have a difficult time to develop the effective change management programs. This can be termed as an effective tool that has been used as a corporate growth. The plan for organizational development includes the growth of both the organization and the consumers of the organization. This further includes the progress of the work, the innovation of the products. The theory that is included in the organizational development is the classical, neoclassical and the modern theories, this include the research organization as a social system (Adjibolosoo, 2018). The further aspects that can be included in this is the concept of power in the organization, the need of proper communication in the organization and lastly the process and the models of making the decisions should be improved. The change is required in the above mentioned aspects. The organizational development heads with the objective of increasing the level of inter-personal trust among the employees, to increase the level of the satisfaction of the employees as well as the customers. Organizational development can be bought only by confronting the problems instead of neglecting them. It includes the effective management of the conflicts that can arise in the organization. The other aspect of organizational development is adopting the strategies that can increase the cooperation and collaboration among the employees. It includes the strategy of solving the problems of the organization. The organizational development is necessary in order to make every individuals of the organization aware of the visions of the organization. It encourages the employees to solve their problems and to face them. It makes the individuals aware of the environment of the organization which includes the legal authorities and the policies that exist in an organization. It enables the employees to accept the change that might occur in the organization. The change in the organization is brought for the good of the organization. In order to make a development the change of the existing system is required. The opportunity to bring a change enables the managers with a vehicle for introducing the change in a systematic manner. This leads to the greater personal group and the effectiveness of the organization. The organization that has been taken into account in this particular assignment to understand the concept of organizational change is Red Rooster, a company who has huge supply of fast food in Australia (“Red Rooster”, 2018).
Increased Communication
Organizational development is itself the practice of the change that is made in a planned as well as in a systematic way. The planning of change is done with the purpose of bringing growth in the company. The change enhances the performance of the organization.
continuous improvement- It has been seen that the companies that engages itself to the continuous change is able to make improvement. The same system cannot bring innovation in a company. The change in the operation process is necessary. The strategies of change are usually planned, improved and they are continuously monitored. The organizational development is a proactive approach that embraces the internal as well as the external change. Red Rooster initially started with a small infrastructure. It expanded the business and changed their marketing strategy. In the contemporary world it has been able to create a huge brand for itself and now it is one of the leading chain of fast food suppliers in Australia (Anderson, 2016).
Increased communication – the communication in an organization should be increased in an organization. Red Rooster increases their communication by applying the process of feedback and interaction within the organization. The aim of improving the communication is to align all the employees to the shared goal and values of the company. The communication that is candid also leads to the increased understanding of the need for the change within the organization. Red Rooster have a proper structure of communication within the organization. It is opened in all levels of the organization. The feedback that is taken from the employees is useful for the improvement of the organization.
Development of the employee- the organization development is aimed at the increased form of communication. It is used to influence the employees and to bring the change that is desired. Red Rooster focused on team work. However it was noticed that the employees were not happy at the later level. They gave the review that they were not satisfied as they had to work under lot of pressure and they were denied from their wages. They complained that the management was bad and they had to work under immense pressure. However the work environment was good and the team members were good. As a part of employee development the company tried to sit with the employees and gave them other benefits like, the company offered them free breakfast so that the workers had no health issues and they could get the energy to work. These were part of employee development programs that would enable the employees to work with more dedication and would motivate them to achieve the organizational goals. The company had some pitfalls in the developmental approach of the employees (Barzelay, Okumoto & Watanabe, 2017).
Employee Development
product and service enhancement- the major benefit of organizational development is innovation, that leads to the enhancement of service and product. This includes the motivation plan of the employees and the reward system that helps the employees to achieve their goals and targets. It increases the engagement of the employees. The organizational development increases the innovation of the products. This can be done by making a competitive analysis. For example, the biggest competitor of Red Rooster is KFC. Red Rooster should make an analysis of KFC (Bolman & Deal, 2017).
The internal as well as the external factors both are interrelated to each other. They form a major part of the organization. The internal as well as the external factors helps in the development of the organization. The factors that influence the organizational development of Red Rooster are:
In a bad economy a well-run business may not be able to survive. The economy cannot be controlled. There was a time when the interest rates of the credit cards increased. In such a situation the customers stooped spending. The business suffered from loss during that period. Therefore, the economic condition cannot be predicted from before and this is the reason it affects the external factor of the business (Daft, 2015).
The biggest competitor of Red Rooster is KFC. They share the same concept. The only way to make the company unique is to introduce innovative and attractive offers and the quality of the products should be the best. While a company is started it has to keep in mind about the other companies that belongs to the same industry. After a new company is established a newer firm needs to be faced that would try to slice away the customers. KFC has huge chain of customers. They have variety of products and they offer discounts and attractive offers to their customers. In order to compete with the existing brand they need to form innovative strategies (Gabriel, 2015).
The changes in the government policy have a huge effect on the business. There was an instance when there was lack of chickens as the chickens were suffering from epidemic disease which was getting spread all over the world. Government did put a band on the manufacture of chicken across the world. This made the company suffer from huge loss for few days and month. It stopped the potential customers to come to the shop. The revenue of the company suffered from huge loss (Gilley et al., 2015).
Product and Service Enhancement
The customers and the suppliers form an important part of the external structure of the organization. Red Rooster have huge suppliers that have a huge impact on the cost of the company. The clout of any supplier depends on scarcity. If the customer is unable to buy anywhere else, the room of negotiation remains limited. The power of the customers depends on how fierce the competition is. It depends on the quality of the products and whether the company has a strong advertising strategy. Red Rooster have a strong advertisement strategy. Maximum amount of customers of the company are attracted through the advertisement of Red Rooster. The company provides advertisement in the hoardings, posters, in television in Australia (Kelly et al., 2016).
The staffs and the employees are the internal factors of the company. Red Rooster has huge amount of staffs in all the branches. It has many outlets and it has huge number of staffs in all the branches. The organization will lead towards a good direction if the managers maintain a good level of communication with the employees of the lower-level (Lussier & Achua, 2015).
Even when there is a crisis in the great economy, the lack of money can determine whether the company can survive or whether it can die. The limited cash resources limits the number of employees that the company hires. More cash makes the organization flexible and it enables the organization to expand the business with more options (Reynolds, 2017).
The internal culture of an organization depends on the values, on the priorities that the employees live by. The teamwork is an essential part of the development of the organization. There are situations where the company have a culture of competition between the employees. The culture of the company flows from top to down. The culture of Red Roost is a mixed culture (Rutherford, 2015).
The strategies that the companies adopt in order to make future development is to introduce the concept of digital marketing in the organization. Red Rooster have developed as it has the option of digital marketing present in the organization. The company however lacks in expanding the business in other parts of the world. The strategy of competitor analysis should be done in order to make a development. The competitors of the company like, McDonald’s, Subway and KFC which are based in USA are expanding the business. The expansion strategy should be sharper. Apart from this the companies should take a feedback session of the customers. The company can take the feedback from the customers on a digital form regarding their services and their quality. The most important strategy is the marketing strategy that the company should have. Red Rooster fails in this. The marketing strategy is different in India and in Australia. The lack of experience made this happen, however the company can overcome this by forming a proper marketing strategy. The feedback session should be taken of the employees of the company as well. The company should conduct an induction process for their employees. The employees are the pillars of the organization. This is the reason their needs and difficulties should be kept in mind and the internal conditions of the organization should be made better. These are the basic strategies that the organization should employ in order to make a development in the organization (Ryan & Deci, 2017).
External Factors Influencing Organizational Development
It is extremely important to have a design and structure in an organization. Poor organizational design and structure results in a bewildering morass of the contradictions like there will be a confusion within the roles, there will be lack of co-ordination and the ideas will not be shared. There will be conflicts in the organization. Often the person who are on the top of the organization are oblivious to these problems or worse. They pass them off as the challenges in order to overcome the opportunities to develop. There should be proper layers of designations and the job roles should be distinct. Red Rooster have a proper structure of designation like, it has an area manager, it has business development department, it has a separate finance department, it has proper human resource department, it has an operations department and a separate marketing department. The company has a proper structure and a proper design (Shafritz, Ott & Jang, 2015).
The foremost strength of Red Rooster is the unique recipe that it has. It improves on the continuous innovation. The company is constantly trying to cater to the needs of the customers. It is an established brand in the worldwide market (Vahlne & Johanson, 2017).
The company lacks in expanding the business. It can face a paucity of experience in expanding into newer markets as it has not yet expanded in many countries.
The major threat for Red Rooster entering into India comes from its own lack of experience of expanding into new countries or having operations outside Australia. Due to this lack of experience it might end up losing money but apart from that it might not be able to make a very good first impression amongst its predictions (Waldman & Jensen, 2016).
References
“Red Rooster”. 2018. Red Rooster. https://www.redrooster.com.au/.
Adjibolosoo, S. (2018). A Human Factor Approach to Human Resource Management and Organizational Development. In The Human Factor Approach to Managerial and Organizational Efficiency and Effectiveness (pp. 75-96). Palgrave Macmillan, Cham.
https://link.springer.com/chapter/10.1007/978-3-319-61307-9_4
Anderson, D. L. (2016). Organization development: The process of leading organizational change. Sage Publications. https://books.google.co.in/books?hl=en&lr=&id=Q_dNDQAAQBAJ&oi=fnd&pg=PP1&dq=Anderson,+D.+L.+(2016).+Organization+development:+The+process+of+leading+organizational+change.+Sage+Publications.&ots=cuSg0d2K6g&sig=kZ3b7a9YMuQqMTpXWfcIiens5TU#v=onepage&q&f=false
Barzelay, M., Okumoto, M., & Watanabe, H. (2017). Managing International Cooperation for Organizational Capacity Development: Setting a Conceptual Foundation for Case Study Research and its Utilization (No. 152). https://www.jica.go.jp/jica-ri/ja/publication/workingpaper/l75nbg000006x9lg-att/JICA-RI_WP_No.152.pdf
Bolman, L. G., & Deal, T. E. (2017). Reframing organizations: Artistry, choice, and leadership. John Wiley & Sons. https://s3.amazonaws.com/academia.edu.documents/36951459/Bolman-Deal-Reframing-Organizations.pdf?AWSAccessKeyId=AKIAIWOWYYGZ2Y53UL3A&Expires=1525261972&Signature=wo1yV50J%2BC4Nl4jaBInepQusPFk%3D&response-content-disposition=inline%3B%20filename%3DReframing_Organizations_Fourth_Edition_L.pdf
Daft, R. L. (2015). Organization theory and design. Cengage learning. https://amberton.mylifeblue.com/media/Syllabi/Winter%202015/Graduate/MGT5172_E1.pdf
Gabriel, K. U. K. (2015). Organizational Development, Organizational Culture and Organizational Change. https://www.researchgate.net/profile/Gabriel_Puron-Cid/publication/300419781_Conceptualizing_smartness_in_government_An_integrative_and_multi-dimensional_view/links/5a287a5c4585155dd42778cf/Conceptualizing-smartness-in-government-An-integrative-and-multi-dimensional-view.pdf
Gilley, J. W., Gilley, A. M., Jackson, S. A., & Lawrence, H. (2015). Managerial practices and organizational conditions that encourage employee growth and development. Performance Improvement Quarterly, 28(3), 71-93. https://onlinelibrary.wiley.com/doi/full/10.1002/piq.21197
Kelly, B., Freeman, B., King, L., Chapman, K., Baur, L. A., & Gill, T. (2016). The normative power of food promotions: Australian children’s attachments to unhealthy food brands. Public health nutrition, 19(16), 2940-2948. https://www.cambridge.org/core/journals/public-health-nutrition/article/normative-power-of-food-promotions-australian-childrens-attachments-to-unhealthy-food-brands/EAA2AC97AEF40E8121F4CDEE440B73FB
Lussier, R. N., & Achua, C. F. (2015). Leadership: Theory, application, & skill development. Nelson Education. www.amazon.com/Leadership-Theory-Application-Skill-Development/dp/1111827079
Reynolds, M. (2017). Organizing reflection. Routledge. https://www.researchgate.net/profile/Russ_Vince/publication/241383012_Organizing_Reflection_An_Introduction/links/00b7d52e13782cb989000000.pdf
Rutherford, A. (2015). Managing for Success: Organizational Development. https://www.aza.org/managing-for-success-organizational-development
Ryan, R. M., & Deci, E. L. (2017). Self-determination theory: Basic psychological needs in motivation, development, and wellness. Guilford Publications. https://www.guilford.com/books/Self-Determination-Theory/Ryan-Deci/9781462528769
Shafritz, J. M., Ott, J. S., & Jang, Y. S. (2015). Classics of organization theory. Cengage Learning. https://books.google.co.in/books?hl=en&lr=&id=lOTrBQAAQBAJ&oi=fnd&pg=PR5&dq=Shafritz,+J.+M.,+Ott,+J.+S.,+%26+Jang,+Y.+S.+(2015).+Classics+of+organization+theory.+Cengage+Learning.&ots=wRHGlk_HM-&sig=YldFzOZRhJa3O4qf9EjKLL3QshM#v=onepage&q&f=false
Vahlne, J. E., & Johanson, J. (2017). The internationalization process of the firm—a model of knowledge development and increasing foreign market commitments. In International Business (pp. 145-154). Routledge. https://link.springer.com/article/10.1057/s41267-017-0119-3
Waldman, D., & Jensen, E. (2016). Industrial organization: theory and practice. Routledge. https://books.google.co.in/books?hl=en&lr=&id=xIuTDAAAQBAJ&oi=fnd&pg=PP1&dq=Waldman,+D.,+%26+Jensen,+E.+(2016).+Industrial+organization:+theory+and+practice.+Routledge.&ots=RuWNQCEo4B&sig=KC5cTedpxvBnGRFQodhvQL4tMa4#v=onepage&q&f=false
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