Organizational Change in Corporations
This paper seeks to explore the subject of organizational change in corporations. In so doing the paper will analyze in depth the fundamental questions of why, who, when, where, what, and how. Organizational change is a widespread aspect in any corporation may it be small sized, medium sized or large sized. A corporation undergoes change because it wants to deliver excellent services and products to its customers. In addition to better products and services, the company will undergo organizational change so that employees can have excellent performance. Organizational change can happen in three aspects: on the products or services, the employees, and the upper management. Organizational change refers to the notion in which the corporation revolutionizes its systems on a larger scale as opposed to small-scale changes in the organization like hiring a new employee or changing a program. Transformations in the corporations are because of external forces of the company. In most cases, the corporation will undergo organizational transformations in an attempt to evolve to a better degree of entrepreneurial activity.
Procter and Gamble Company
One of the many corporations that have undergone significant organizational change in the recent years is Procter and Gamble. For this company to be one of the most recognized product producers it had to undergo a substantial organizational change, which undoubtedly worked for the corporation. This paper will explore the implementation of organizational transformation that is in relation to the strategic development of Procter and Gamble. Procter and Gamble is a primary producer of household goods in the whole world its most accepted products being the disposable diaper. The initial idea of the disposable diaper was from Procter and Gamble, and so was the first creation of the diaper. The year 1837 saw the establishment of Procter and Gamble Company whose headquarters was in Cincinnati. Over the years since its creation, the company has evolved in to a well-known manufacturer of consumer commodities producing more than 300 brands worldwide. Procter and Gamble manufacturers a wide range of household products ranging from beauty products, laundry detergents, to dental care products. Initially the company was in two separate businesses- William Procter who manufactured candle and James Gamble a soap maker business. In the 1859, the two businesses merged to form Procter and Gamble Company (Dyer, Dalzell & Olegario, 2004, p. 66).
In analyzing the organizational changes that have taken place in the above corporation, the paper will be expounding on the reasons as to why these changes took place, who initiated the changes, how the transformations took place, and time when these changes took place. As for Procter and Gamble, organizational transformation has been in different contexts, but they have all contributed to its present formidable reputation. Initially the company started with its headquarters in Cincinnati, but, in the recent years, it has expanded all over the globe. It has acquired another headquarter in Ohio where it carries out its operations. The reasons for this acquisition of a new headquarter are to be able to manage the international operations of the company, as it was growing in to an international corporation. By having a separate headquarter, the company was protecting itself from being bound by the legal bindings of one state. In the event, of poor legal and political conditions of one country the company may be forced to close down its affiliate factories or retrench its employees. Therefore, its transformation in the location settings was paramount in ensuring that the company meets its international supplier of products objective.
The Role of Technology in Manufacturing Companies
Technology plays a crucial role in most manufacturing companies, and it is the ones who adapt to the best technology that manage to hold the market. One of these companies is Procter and Gamble Company, which has undergone extensive transformations in terms of technology. The growth in the information technology sector of a corporation is significant in creating a transformation in the company. Pertinent technological development in the Procter and Gamble Company include telecommunications, on-line training, internet, and product and process innovations. This is evident in Procter and Gamble Corporation as it has become a multinational company venturing into new markets worldwide. The company has also been on the forefront in the inventions of new products that fit the particular needs of all sorts of consumers. This is because of technological advances in the company, which enables them to provide for all their customers’ wants needs and demands (Harvey & Brown, 2001, p. 78).
The transformation in the technology sector of the company has been gradual with the company adopting new and better technological ideas. The reason for this adoption was to catch up with the ever-changing market and the growing competition from other manufacturers. Times have changed, and with change, people tend to change in different ways. For instance, the company will have to adapt to the changing customer needs because the needs vary from time to time. Bringing in new experts on technology, new machines, new ideas on technology, and advancing on the current technologies has seen Procter and Gamble Company be a household name when it comes to manufacturing industry. In most cases the top management who identify the need to have advanced technology for better services and goods implements these technological transformations. When an organizational change occurs, it is usually for the best, and it results in to employees improving their services, which in turn improves the corporation’s efficiency.
In an attempt, to capture, the global market for its products Procter and Gamble has undergone organizational changes in the top management area, which involves the managers and directors. This is by hiring and acquiring many top management staffs from the west or countries it intends to set up its offices in like in the Asian countries. The top management is people responsible for making crucial decisions of the company, which will determine the company’s future performance. Bringing on board new and diverse talent has seen a rise in the ratings of Procter and Gamble Company as the new employees offer varied ideas and skills. Having international market Procter and Gamble requires competent top management staff, who have the ability to reach informed decisions about the company and ensure that its implementations takes place. The notable change in the top management of Procter and Gamble is by having a decentralized form of management where by decisions of the company originate from various people and areas. Various representatives from diverse locations of the corporation come together in teams with a goal of developing proposals, which allow the company to minimize on production costs and increase sales. This has enabled the company to overcome the tough times of depression.
The corporation manages to implement these various changes through several methods, which include market segmentation, differentiation strategy, and cot leadership strategy. These methods have enabled Procter and Gamble to undergo remarkable transitions and manage to remain in the business for over a century. The success story of Procter and Gamble Company is based on the company’s frequent and constant transformations. This has enabled the company to meet the needs of different consumers. The company saw the need for having a decentralized top management and using diverse strategies to identify competitors and new markets. The services and products Procter and Gamble Company offers its customers are because of its development programs and meritorious research of the business it deals with, and these will enable the company to stay in the market for an exceedingly long time.
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