Running head: AFFECTING CHANGE 1

Affecting Change in S&F

Alexandra Dunda

LDR/531

November 5, 2010

Eric Heard
AFFECTING CHANGE 2

Affecting Change in S&F

Leadership in Action Simulation shows a Smith & Falmouth (S&F) a mid-size company

teleshopping and mail-order network operating in U.S. and Canada. Six months ago start a new

project, the e-tailing vision to increment sales using a fast- growth strategy conceived by the

online CEO Irene Seagraves. To implement the goal settings Irene put in place a web

development team, logistic team, and a marketing manager who will coordinate all marketing

and logistic in concordance with the parent company. Irene contracted me as Chief Operating

Officer (COO) to increase the online sales channel with a time-line of nine months to achieve

the target. This paper will describe methods of control and the current departmental and

organizational culture of S&F, A restructuring strategy to improve the culture and empower of

employees, the management best practice to apply in S&F, and finally how the new size and

structure could affect the future of the organization.

Methods of Control

“The control function of management involves measuring employee performance against

objectives and standards, rewarding people for a job well done, and taking corrective action if

necessary” (McHugh, 2004). The framework platform in which S&F operates is the networking

operation. S&F is using an internal roadmap in where market is the major driver. Trying to cope

with the different product lines and the new e-tailing vision S&F will measure performance with

a scorecard system to detect failures in process and be sure improvements are being sustained.

In order to implement methods of control, I must identify and effective influence the

spans of control that refers a how many individuals can a manager effectively direct (Robbins &

Judge, 2007). According to the structure (matrix structure) of S&F possess a small span of

control in where managers in each department control no more than six individuals, with which

manager can maintain close control over development. This small span of control requires tight
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supervision and discourages the autonomy of employees. The span cannot be so large because a

manager cannot deal with every little problem. In the case of S&F the goal of increasing the

online sales in a short period requires a wide span of control. When the span is small could

create inefficiencies according to the slow responses on time, the rigidity of the team, and

functional heads over change generating a poor customer services.

The teams are strongly alienated to their leaders and I exercise influence only on

Marketing Manager. My relation with the other functional heads is restricted to a formal

interaction. My effectiveness will depends on how I recognize the different subunits alliances,

the invisible cultures, and what functional head I ally in coalition to positive influence the

members in the online sale project.

In order to influence the teams, I need to establish my transformational leadership

amongst the teams to accomplish the strategic goals for the unit, which consist in increase the

orders of sale in 100% this quarter. I desire to choose an influential person (James Argyle,

Project Manager) and convince him with a polite request of my abilities to help me accomplish

the targets, and then, implement my plan action to win over the teams. The plan: Empower

teams (let the teams decide targets, expand job roles and responsibilities), Offer additional

resources (larger budgets for machine, training, and software to bridge the skill-gap), Create

leadership symbols to motivate (metric sheets and progress reports)

When the targets have been successful achieved, I will demonstrate to the teams and their

respective managers the expert power “unique knowledge about the best way to perform a task

or solve important problem” (Yukl, 2006) creating an open path to future influence them to do

what I want them to do in future projects.

Current Departmental and Organizational Culture

Departmentalization
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The S&F departments are grouped by function performed and by product lines in where

the individuals are placed according to skills and common orientation task units. They are

devoted to work in the implementation of the e-tailing vision with an internal strategic road-map

implemented by Irene Seagraves (CEO). This matrix structures also use the customer function

trying to fulfill the needs of the customers in e-commerce market.

An organization can group departments in a mix of function, product and customer

seeking to accomplish its tasks requirements. The S&F organization is working in cross-

functional teams with a manager for each team that works in an interdependent manner. The

matrix structure of S&F is characterized for two units of commands: the product and functional

managers. Reporting to more than one boss could create anxiety, stress, and increase role

ambiguity.

The best option for S&F according to its goal setting and the way operates in

concordance with its parental company is to create a restructuring strategy, which will open the

door to implement the new Boundaryless organization “An organization that seeks to eliminate

the chain of command, have limitless spans of control, and replace departments with empowered

teams” Robbins & judge, 2007)

Organizational Culture

The culture in S&F is a team-oriented culture where the activities are organized around

teams rather than individuals; the team-oriented culture has low aggressiveness; the degree of

stability has been removed from the status quo due my hiring as a COO. They perceive as an

intruder who came to interfere with their established culture. The coordination of work activities

such self-managed and cross-functional teams, in where is broken the departmental barriers is

using a low degree of formalization. The project manager (James William Argyle) is who

embrace the vision of valued teamwork. He is the kind of leader who leads by example, which
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inspires his team to achieve success. James possesses a relationship-building skills with which

have made several marketing alliances and cost-efficient outsourcing contract for the web-site.

Therefore, possess a charismatic leadership style, but doesn’t like when someone restrict his

power over his team. The problem is that James needs to focus on outcomes rather than

techniques encouraging the team to use innovation and creative approaches that involve risk

taking.

Restructuring Strategy

Seeking improve a customer centered strategy I think the teams and functional heads

must approach a Customer Relationship Management strategy (CRM) the term is associated with

technology. According to Wikipedia the free encyclopedia “is a widely-implemented strategy for

managing a company’s interactions with customers, clients and sales prospects. It involves using

technology to organize, automate, and synchronize business processes (principally sales

activities), but also those for marketing, customer service and technical support.” The CRM

seeks to understand its role enhancing customer value and shareholder value. Is divided in three

phases focus in customer-centered (acquire, enhance and retain). This strategy identifies “three

alternative perspectives of CRM. The company must emphasize the need for a cross-functional,

process-oriented approach. It is crucial to identify five key cross-functional CRM processes: a

strategy development process, a value creation process, a multichannel integration process, an

information management process, and a performance assessment process. They develop a new

conceptual framework based on these processes and explore the role and function of each

element in the framework” (Payne & Frow, 2005). This strategy needs employee engagement

and change management implementation. Thus this needs cross-functional empowered teams

able to take decisions.

Empowering Employees
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“Empowerment means giving employees the authority (the right to make a decision

without consulting the manager) and responsibility (the requirement to accept the consequences

of one’s actions) to respond quickly to customer requests” (McHugh, 2004) This empowerment

will be possible if the leaders enable the employees through training, mentoring, coaching,

feedback, and allocation of resources that members can use to take the best wise decisions.

Allowing employees to communicate and collaborate as a team. Empowering teams is more than

delegating them to take the decision; it is a tool to constantly improve all process that also

involves planning, take corrective actions, problem-solving, the implementation of reward and

recognition systems, and the sharing of information.

An effective Management Practice

In order to develop a best effective management practice the manager or leader must

poses a transformational leadership style or the ability to approach different styles to situational

events.

The best practice to work with network teams is the use of Experimental Knowledge and

Creativity Management, which focuses on continuous examination between knowledge and

creativity on team members. It is such as a proactive improvement process that adequately

measure the consequences derived on performance at the team level.

S&F works in teams-oriented culture that needs established model of research to execute

project-team tasks. At the same needs knowledge creation that focuses in critical gaps that block

the success of project. This practice of management is associated with team creativity that

requires supportive environments that involve the culture of organization, which will encourage

the teams to express open ideas; help to develop new ideas; will increase individual and team

efforts; risk-taking and innovation, and will provide them freedom to participate in the decision-

making process without fear of a punitive action.

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Size and Structure Affecting the Organization’s Future

The structure design depends upon the size and the type of strategic the organization

choose, which will determinate the future structure. As companies changes the strategic and the

structure should change in compass with the objective of the organization. “If a manger changes

its organizational strategy the structure needs to be modified to support this change” (Robbins &

Judge, 2007)

The team structure working in a boundaryless organization would benefit S&F in a

future because will interact functions, units, and new product lines. In the specific case of S&F

for being a midsize company and working in teams the increasing of the size won’t affect in a

big degree its structure. The only way a structure could change will be determined for a change

in strategic, which could be modified according to the environmental forces that affect directly

the organization. The uncertain in the environment is a complex issue because the market and its

volatility makes difficult determinate the stability of a certain future.

Some people like or prefer to do things as it always has been. Thus, the leader’s mission

must let them know he or she is there to support the change, which will create a better future.

Leaders need to explain the big picture with the complete understanding that will be pitfalls in

the process, but these risks are opportunities that will require an adequate solution. The team

must be ready how to react to constraints and make the change possible seeking to accomplish

something big, better, and important that will create the future of the organization.
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Conclusion

In this paper I could sum-up that exists a direct link between size, strategy, and structure.

All these variables determinate what influence tactic must be used to approach members to do

what I want them to do in behalf the organization objectives. It is the organizational culture who

frames the behavior and attitudes of its members. Therefore, is important create a sense of being

part of a specific organizational culture that could predict behavior. A strong organizational

culture eliminates the formalization of rules in organizations because there is a common

understanding of what an appropriate behavior is. The members of strong cultures know where

they stand for and joint together in the same direction.

References
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Customer Relationship Management. (2010, November 3). In Wikipedia, The Free

Encyclopedia. Retrieved 17:01, November 4, 2010, from

http://en.wikipedia.org/w/index.php?

title=Customer_relationship_management&oldid=394576615

Nickels McHugh (2004). Understanding Business (7th ed.) The McGraw−Hill Companies.

Robbins, S. P., & Judge, T. A. (2007). Organizational Behavior. Upper Saddle River: Pearson

Education.

Payne, A., & Frow, P. (2005). A Strategic Framework for Customer Relationship Management.

Journal of Marketing, 69(4), 167-176. doi:10.1509/jmkg.2005.69.4.167.

University of Phoenix. (2010). Leadership in action [Computer Software].

Retrieved from University of Phoenix, Simulation, LDR531—

Organizational Leadership course website.

Yukl, G. (2006). Ethical Leadership and Diversity (6Th. Ed.). Prentice-Hall, Inc. A Pearson

Education Company.