Executive Summary
Organizational change is the best approach for Wengart to take if it is to eliminate customers’ complaints and create a motivated workplace environment. In spite of the fact that its leaders seem to disapprove the ability of TQM model to create desired changes, it is imperative that all managers understand that one of the essential qualities of leaders is the ability to transform theoretical knowledge into practice through critical thinking. Kotter’s eight stage change model, in this case, improves the ability of every stakeholder to act accordingly since the model provides clear guidelines on how Wengart could develop an effective organization. The report, therefore, provides a solution on the measures Wengart could consider to effectively implement the TQM model.
Introduction
Wengart has real issues that majority of the managers are not willing to embrace since they believe that they are currently on the right track. However, the recent financial and quality problems at the firm are not to be ignored since they have contributed to product recalls by its most important clients as well as publications in the Wall Street Journal and Business week regarding the negative trends in the organization. With leadership wrangles, incidences of disgruntled employees and customers complaints, there is no doubt that Wengart needs to change its organizational environment to accommodate how various stakeholders react to the organization’s operations. The top managers have to realize the fact that Wengart is second in market dominance in the industry meaning that its success could be boosted to make the firm the dominant aircraft manufacturer. Quality issues are major problems at the firm and have largely been contributed by ineffective leadership, limited employee motivation and lack of little interest in understanding how customers and external stakeholders would react to negative experiences at the firm. Total Quality Management is the right approach with the need to incorporate Kotter’s theory of change management since it provides guidelines to be followed in creating a sustainable organization. The top management, therefore, needs to realize that customer service, engineering, production and additional support functions can best be achieved when measures are taken to implement Total Quality Management. With effective TQM approach in place, Wengart could be assured of giving customers what they want by adopting effective leadership, better working conditions, providing a learning environment and working hard to create a culture of teamwork.
Interventions to resolve quality issues at Wengart
The fact that the organization is doing little in developing an effective organization creates the need for a culture change that is key to making Wengart operations sustainable in future. TQM is the way to go since the approach includes all the essential aspects the firm will require to improve its financial and quality competitiveness. With effective TQM in place, the major focus is on improving productivity and minimizing customers’ complaints in spite of the assumptions by the leaders that product recalls are common problems in the aircraft manufacturing industry. TQM gives room for the organization to focus on its customers, implement continuous improvement as well as learning and enhance contribution and collaboration by all personnel. The best way for Wengart in implementing TQM is to consider Kotter’s theory that identifies eight stages necessary for a successful change management program. The stages as defined by Kotter include: Having a sense of urgency in improving on quality, relying on a guiding coalition with stakeholders, putting in place mission and strategies for the way forward, making employees aware of the changes. Other aspects in the eight-stage model include; enabling everyone to act, motivating employees and creating a favourable environment for stakeholders to develop attitudes and behaviours that conform to the changes. A proactive culture where leaders, employees, suppliers and customers work together in developing an effective organization is what Wengart needs. The current situation where there is command and control kind of leadership needs to be eliminated since it is among the factors that contribute to workforce disgruntlement. Leaders at Wengart have to be educated and trained on the advantages of having closer working relationships with employees. The assembly line staff have to be engaged since they are the ones who make sure that the aircraft manufactured meet the quality standards desired by clients hence leading to few incidences of product recalls.
Creating favourable working place is, therefore, a key step to improving the quality of the product manufactured since according to Kotter, such actions involve employees in identifying key motivational factors that help it influence everyone to act accordingly. Kotter’s theory is important as it makes everyone aware of the level of urgency in accepting team work and understanding how people react to the organizational environment. Kotter’s theory reminds organizations of the need for every stakeholder to express the willingness to act by adopting behaviour and attitudes that make them realise the benefits from developing an effective organization.
Action plan: Schedules and Activities to undertake in implementing desirable changes
Ethical, social and sustainability issues in implementing TQM at Wengart
Kotter’s model argues that departure from a hierarchical culture that denies employees the freedom to participate in organization’s decision is important. Such measures could be achieved by training managers on how to engage with a larger proportion of employees if they are to foster a mutual commitment to the TQM principles. The production vice presidents at Wengart need to be educated on the role HR department plays in pushing the organization forward. Currently, the trend is that the human resource office has been neglected in most of the decisions undertaken by the organization since the major concern for Wengart is to manufacture more aircraft with little consideration to people and how stakeholders react to the organizational environment. Leaders from the top level to the line managers have to realize that their decisions and the way in which they make them create the impression among employees on their ethicality.
While the leaders seem to have command and control form of leadership, it is up to them to realize that such actions contribute to limited interpersonal relationships with subordinates. Ethics standards are implemented when the HR department is allowed to carry its mandate without interference by top managers. The management, therefore, needs to support Maria as the heed of human resource and give her the resources she needs in creating an environment where ethical values including respect, integrity, mutual dependence and honesty remain core values to be adhered to. Kotter is his model emphasized on the need for behaviour and attitudes that are in line with the mission and strategies outlined in the change process. Wengart needs to assure its customers that it intends to improve the quality of products and services offered while at the same time making investors confident on the ability of the organization to maximize their earnings. The major concern posing a danger to the sustainability of Wengart is its deteriorating ability to give customers what they want. Nevertheless, the fact that Wengart is the second most dominant firm in the industry implies that it has the capacity to maintain its stability and long-term growth if only it managed to understand that everyone is a consumer and a producer and would want the best products. While the company may be focused on manufacturing aircraft for sale, it has to create the culture among employees that make them see themselves as consumers hence produce products that reflect the great feeling they would want to see in customers. Such sustainability efforts can only be achieved through team work that improves interdependence between employees and the management while involving other stakeholders such as suppliers and customers in making suggestions on the key areas for improvement.
Engaging key stakeholders
Key stakeholders include employees’ representatives, the management, employees, customers as well as the community where Wengart operates. The major beneficiary is the organization itself since with effective engagement, it is assured of building a business environment based on trust that reduces the cost of doing business. With TQM, the organization will have encouraged mutual participation in problem solving and issues management with stakeholders keen on generating information that it key to mitigating risks of financial and quality problems. Employees will also benefit as Kotter emphasizes in his model since there will be improved workplace motivation and the leadership structure will no longer be one based on commanding and controlling employees but rather one that gives room for consultation with staff. Restoring trust and confidence of consumers’ means that Wengart will re-establish itself as a market leader and improve its earnings.
Customers, on the other hand, will benefit from reduced inconveniences and costs of legal process when seeking compensation from Wengart. Customers will also be assured of longevity in using the aircraft hence avoid costs of repairing, maintenance and early replacements. However, Wengart faces possible resistance to change from employees and stakeholders such as suppliers who may be unwilling to adopt the TQM model. Issues of resistance are already visible with Allan Yoshida, the manager of Pico Durango Plant expressing reluctance on implementing the concept. Allan believes that the TQM model is just theoretical and that the firm is on the right track. The rest of the managers have similar reluctant thoughts as those of Allan thereby proving the extent to which education and training will be required. Employees too are complaining possibly because they do not understand the TQM concept and have the fear that it could be destructive to their job security. Such reactions call for the need to involve human resource managers to engage change champions and trained users who then conduct consultative meetings with employees’ representatives, the management, investors, suppliers and key customers in letting them understand the milestones that will be achieved by implementing TQM. With team work as a corner stone of the TQM model, it is likely that jobs will be impacted upon since employees and managers will be required to help each other in improving effectiveness and efficiencies. The new work place environment will be based on the learning process that equips employees and managers with skills necessary to help them identify areas that require improvement.
Conclusion
Wengart is currently in a position that if actions are not taken to improve the quality of aircraft manufactured, then there is looming danger of collapse. However, the fact that the company still maintains a competitive position in the industry implies that it only requires changes in its business environment which in this case is implementing TQM model to assist in improving the structures, processes, resources, time frames as well as performance measures. The top managers have to realize that critical thinking requires relying on theoretical knowledge and transforming it into practical concepts necessary to create desired changes. Such critical thinking includes translating Kotter’s eight stages of organizational change into practice. Incorporating all the elements in Kotter’s model right from identifying areas of urgency such as the need to reduce customers’ complaints and motivating employees to influencing everyone to have the attitudes and behaviour required to develop an effective organization.
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