HRM 587 Final Exam Set 2 Questions & Answers. Guarantee All Exams 100% Pass One Time!

1. (TCO All) For the next set of questions, you will first select ONE of the TCOs of the course. Then, you will be asked to write an essay about the project you worked on this term over your two companies’ change program based on the TCO you selected above. Select the TCO your essay question will cover: TCO A - Given that progressive and successful companies require their employees to embrace change, examine how changing work conditions impact the employees. TCO B - Given the inherent reality that all organizations must experience change in order to improve, demonstrate how “models” are used in Change Management, for diagnosing an organization’s need for change. TCO C - Given external, internal and/or multi-levels of organization factors that drive change, assess and create a leadership model which supports and promotes each type of change within the organization. TCO D - Given that an organization’s mission and vision will determine its strategy towards change, ensure that an organization’s change initiative is aligned with and capitalizes on its culture and mission in preparation for change. TCO E - Given a selected Change Management implementation “model”, determine the causes of change and develop a plan of action to implement the change. TCO F - Given that both organizations and their employees commonly resist change, understand how to recognize and overcome barriers to change and develop a strategy to manage resistance to change that will ensure successful implementation of change. TCO G - Given that developing a “vision for change” and communicating that “vision” is a critical part of the change process, analyze the key elements of the “vision for change” and develop a strategy to communicate the change to the stakeholder. TCO H - Given the organization’s goal of creating and implementing a sustainable change while moving toward becoming a “learning” organization, develop a plan to implement change in a sustainable manner that can be applied to any change. Using the TCO you selected from the list above, which you felt was most relevant to your project this term, write an essay answer explaining how the change management you saw in one of your companies from your project this term followed or failed to follow the theory of success ingrained in the TCO you have selected. State the #1 thing you think that company’s change agent did which most contributed to the success or failure of the change and why that relates to the TCO you selected. • Include in the answer the name of the company you are discussing. • Explain/analyze why you think this way. (Points : 35) Ans I have selected the TCO B which states that “Given the inherent reality that all organizations must experience change in order to improve, demonstrate how “models” are used in Change Management, for diagnosing an organization’s need for change.” The Burke-Litwin Model highlights the main elements or source of major transformational change and also the changes that are incremental in nature. The four transformational factors are external environment, mission and strategy, leadership, and organizational culture. The main cause that makes a company to make changes is the external environment. It can force any organization to make changes to its mission, culture, leadership, and operating strategies. Changes in the 12 drivers in The Burke-Litwin Model bring a series of change to the overall structure. Various internal and external organizational factors that influence the changes in the organization are: Four transformational factors External environment Mission and Strategy Leadership Organizational Culture Internal organizational factors Structure Systems (Policies and Procedures) Management Practices Work Unit Climate Tasks and skills Individual Values and Needs Motivation Level Individual and Overall Performance Sources: (Palmer et. al., 2009). For my research project, both airlines "Delta" and "United Airlines" have environmental factors that have affected their performance. Jet Fuel prices have driven up the operational cost of both companies. Internal factor such as unions and employee issues have impacted the both the airliner’s performance and have also impacted the top line and bottom line of these two merged companies. Both airlines have had to make some tough decisions in terms of downsizing employees and dealing with unions. Leadership for both airlines has played a chief role in changing the company's course of direction. The airline mergers and bankruptcies have also influenced external factors for airline industry. There are guidelines that have been put into practice by Federal bankruptcy courts on the future of the merged airlines to avoid or deal with the bankruptcy issues. Both the airlines have been making significant integration and restructuring efforts as part of their mission and strategy. Both carriers had a lot of expectations from these mega-mergers in the airline industry that made them the two largest airlines in the world. Delta executed well in blending technology from Northwest and in keeping employee morale high whereas the United has been struggling post the merger and have had some of the toughest year in integrating the merger with Continental. Leadership team in both these airlines companies has played a crucial role in the post merger and integration activities. Delta got its pilot unions to agree to a common contract. This has helped Delta to have a crucial labor group on board from the start. Delta’s pilot union has accepted equity ownership arrangement in the new company. Financially, the merger provided a big boost to Delta’s bottom line. (Mouawad, 2012). In case of United Continental Airlines, Jeff Smisek, executive and integration teams within the company have tried to integrate various systems within the company and have made some tough decisions related to operational issues like cleaning of airplanes, employees, perks to offer in the frequent-flier program. That culture of cooperation existing in Delta contrasts with the poor relations that Northwest had with many of its own labor groups. One of the things Delta has always had with their workforce is flexibility, and that drives their culture. Delta is being rated as the airline providing the best customer service. In Delta, employees strive for excellent customer service standards and understand it as one of the important factor for Delta’s success as a company. United Continental airline has struggled to deal with labor issues and seems to have offended its most important customers, business travelers. All these major transformational factors have had a major impact on the Structure, Systems such as Policies and Procedures, Management Practices, work Unit Climate, Tasks and skills, Individual Values and Needs, motivation Level and Individual and Overall Performance for both these airlines. The Burke-Litwin Model shows all these changes and also proves a point that any of the factors of this model impacts the overall organization’s functioning. Delta has made great strides and has been able to manage the high fuel prices and a macroeconomic downturn. United Continental Airlines have not been doing well financially and have posted lower earnings and they have also reduced their employee headcount. There are things which are out of control for the company and the leadership team is trying to put the system in place. In case of both these airlines, The Burke-Litwin Model clearly shows that both these companies need to improve on the internal organizational factors and work to address the external challenges faced such as high fuel prices, increasing competition, economic recession, low air travel or demand and tough governmental regulation. References: Mouawad, J. (2012). For United, Big Problems at Biggest Airline. Retrieved Dated 16th January, 2014 from Palmer, I, Dunford, R. Akin, G. (2009). Managing Organizational Change: A multiple perspectives approach. 2nd Edition. The McGraw-Hill Companies. 2. (TCOs A,E) Your project this term asked you to compare and contrast two companies’ change projects or programs for change. This question will review what you learned about the change projects in a continuation of your project. It will ask you to apply course information to your project companies. For your answer, be sure to reference the names of the companies you studied in your project this term to help your instructor determine the score of your response. Recall that external and internal pressures often impact implementation of change in companies. For this question, please write an essay answering these questions: 1. Define specific (at least 2 each) external and internal pressures that will (or did) affect the implementation of the changes in your two companies. (10 points) Ans: Two external and internal pressures that affected the implementation of the changes in these two companies are: - The airline industry crisis has been accentuated by the September 11th event, high prices of gasoline, Hurricane Katrina and finally the economic recessions. The effect of these events has led to too many problems and issues for the airline industries and companies. - Consolidation in airlines and markets, labor troubles and increasing gas prices are some of the most obvious issues impacting the industry. There have been major restructuring, bankruptcy, liquidations, or consolidations of major network carriers. Both airlines had environmental factors that have affected their performance. 2. Name two strategies of handling these pressures that you would (have) suggested to the company leaders as being the most effective in managing those pressures during the implementation phase. (10 points) Ans: Two strategies of handling these pressures are: 1. The structure of both airlines has its hierarchical place. But, the communication, authority, and decision making also needs a formal structure at the lower levels of the airline companies. When all four airlines merged into two airlines, both brought their own way of working, management systems, structure and work unit climate. Both had their own separate ways of approaching rewards programs, reservation systems, and cargo loading procedures. These had to meld into one working model that both airlines could relate and understand. Management must be on board with new ideas, visions, and procedures. 2. Both the airlines should try to avoid union conflict by reaching a labor deal. Delta and its management persuaded its pilot unions to agree to a common contract which helped avoid resistance from the union post the merger. This has helped Delta to have a crucial labor group on board from the start. Unlike the situation at Delta, United has struggled to combine reservation systems, flight operations and work groups. Also, they have been facing various union issues such as United pilots picketing over a new contract. Delta’s pilot union has accepted equity ownership arrangement in the new company. The merger definitely places Delta in a better position to ward off growing competition from European and US airlines. United Continental has struggled to efficiently deal with labor issues, such as the re-signing of contracts. C. Defend your positions with details about why you feel your strategies would assist with handling these pressures. (15 points) (Points : 35) Ans: Achieving the overall goals of Delta and United would only be possible with the close co- operation of the employees and working with the management team. The work climate should be such that it should involve the individual employee to be part of the company’s mission and success. Both airlines should have training programs and bring in skilled people to fill jobs. Delta’s commitment and decision to offer employees profit sharing and its emphasis on customer service has worked in favor of the company. 3. (TCOs E,H) Your project this term asked you to compare and contrast two companies’ change projects or programs for change. This question will review what you learned about the change projects in a continuation of your project. It will ask you to apply course information to your project companies. For your answer, be sure to reference the names of the companies you studied in your project this term to help your instructor determine the score of your response. You will assess the “sustainability” of the changes which occurred in the companies you studied. Select ONE of the company change programs for your answer to this question and state it here. Assess the change project. Was it successful or unsuccessful in your opinion? What will it take (what are some steps the company can, should, or DID take) to make it SUSTAINABLE? What theories did you consider in coming to this conclusion? Do you think this change will still be in place in one, five, or ten years? Why or why not?(Points : 35) Ans: Post the merger, Delta has really tried hard to change the perception of its reputation in customer service. It has also tried to increase the employee satisfaction level. To do this, it has taken a series of concrete steps e.g. its decision to offer employees profit sharing and its emphasis on customer service. The company is also dedicated to providing the best compensation to its employees. (Trubey, 2008). Delta agreed upon a deal with pilot post merger wherein it gave raises and equity stake in the combined company to both sets of pilots. Delta employees attempted to unionize three times in eight years. Additionally, although the carrier lost billions of dollars in 2007 and 2008, it offered raises in both years. (Mutzabaugh, 2010). Delta has argued that unions could disrupt its corporate culture, which relies on direct talks with workers. That culture of cooperation contrasts with the poor relations that Northwest had with many of its own labor groups. Improving Delta’s reputation in customer service is also something that Delta has been trying hard. To sustain these changes, Delta management has been educating its employees and making them understand that it would be necessary to provide excellent customer service for the firm to continue to stay in business and grow and their actions to improving customer service standards will have an impact on the bottom line. Delta’s employees are being made aware that they are personally accountable for the success of Delta and the company’s reputation. Delta employs nearly 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. Delta is investing more than $3 billion in airport facilities and global products, services and technology to enhance the customer experience in the air and on the ground. The company completed a significant portion of merger integration, including combining frequent flyer programs; consolidating and rebranding all airport facilities; and achieving a single operating certificate from the Federal Aviation Administration (FAA), in FY2009. (Delta Air Lines Inc, 2012). Text suggests that there are number of actions that organization can take to sustain Change and they are: - Redesign Roles – Delta Company has offered different roles to employees who were affected as part of the integration process and also encouraged its employees to take up different roles. - Redesign Reward System - After the merger the Delta Airlines agreed to provide 15% of pre-tax profits and 15% of its stock to employees. - Link Selection Decisions to Change Objectives - Act Consistently with Advocated Actions - Post the merger of Northwest, Delta has executed well in blending technology from Northwest. - Encourage “Voluntary Acts of Initiative” - Expand – The company has expanded its network as a result of the merger and thus offering more choices to its customers. - Measure Progress All these moves and strategies have helped Delta to sustain these changes and capitalize on those changes. I feel that these changes are major structural changes and this will surely be in place for Delta in the next 5-10 years. References: Trubey, S. (2008). Delta CEO says culture to survive. Minneapolis/St. Paul Business Journal. Retrieved from: Mutzabaugh, B. (2010). Union vote could reshape Delta’s culture. Retrieved from Delta Air Lines, Inc. SWOT Analysis. (2012). Delta Air Lines, Inc. SWOT Analysis, 1-10. 4. (TCO All) This question does not address your course project. This change scenario is envisioned instead, for this question. First, the scenario, and then the question. Scenario: You have been asked to handle a project where the company is going to close the plant in your company and offer all of the workers an option of taking a buy-out severance package which is quite generous OR relocate to another state, where the business climate is much better (but the cost of living is higher and the style of living is lower). The current location of the company is in an area where people live well, the culture is great, and because it is in a college town, there are many fun things to do on weekends, plays to attend, sporting events, etc. The atmosphere is quite upbeat. The city where the company is moving to has very little in the way of entertainment, the housing costs are higher although not as nice, and property taxes are higher as well. The company is offering moving costs for relocation costs, but not house sale assistance. It is likely most of your employees are going to take the buy- out, but most of them are in their late 30s or early 40s and are not going to be happy about it. The question: This term, we studied organizational development theory versus the more systematic nStep method of conducting a change process. What would be the pros/cons of using OD theory for this change project? What would be the pros/cons of using nStep? Which nStep would you recommend for this if you use one? Of the two methods (nStep or OD), which would you recommend we use for this particular change program? Why? (Points : 35) Ans: OD approach emphasizes that change should benefit not just organizations but the people who staff them. A company with an OD approach focuses on change that is beneficial to an organization’s staff, as well as the company as a whole. The OD approach is based on humanistic, democratic, and developmental values that all support employee development rather than organizational growth and financial success that companies traditionally value (Palmer, Dunford, and Akin, 2009). The OD theory aims to change attitudes and behaviors of employees in order to improve the effectiveness of the systems and processes of a company. I believe that this approach can be effective in the long run as along with the benefits to the companies, the workers development is achieved. nStep model starts with creating a sense of urgency for change and collective understanding of why the change must occur. By establishing the need for urgency and the change, the employers can impress upon their employees the need for the change and then motivate them towards the acceptance of the changes. There are several ways this need or urgency for the change can be created. The need for change could come from market, a competitor, technology changes, and process change within organization or upcoming events. If the need for the change is induced within the members of the organization then the change becomes easy for the leaders to manage within the organization. According to Dr John Kotter, the 8 step can help organizations avoid failure and adept to change. Kotter's eight step change model can be summarized as: 1. Increase urgency - inspire people to move, make objectives real and relevant. 2. Build the guiding team - get the right people in place with the right emotional commitment, and the right mix of skills and levels. 3. Get the vision right - get the team to establish a simple vision and strategy, focus on emotional and creative aspects necessary to drive service and efficiency. 4. Communicate for buy-in - Involve as many people as possible, communicate the essentials, simply, and to appeal and respond to people's needs. 5. Empower action - Remove obstacles, enable constructive feedback and lots of support from leaders - reward and recognize progress and achievements. 6. Create short-term wins - Set aims that are easy to achieve - in bite-size chunks. Manageable numbers of initiatives. 7. Don't let up - Foster and encourage determination and persistence - ongoing change - encourage ongoing progress reporting - highlight achieved and future milestones. 8. Make change stick - Reinforce the value of successful change via recruitment, promotion, and new change leaders. The advantage of nStep model is that it helps creating a sense of urgency and the guiding coalition. Generally, Management and leadership team move forward with the changes in their organization without having properly convinced people first that there is a genuine need for change. They think that they can drive change by the force of their own personality, rather than genuinely engaging a broader group of people who also understand the need for change. On the other side, nStep model has some principal drawbacks too. It is essentially a top down model. If there is a setting where people expect a more participative or bottom up approach to change, something like appreciative enquiry is likely to be more useful. It is also a bit mechanistic. Organizations are not just machines, they are also communities of people. Finally, although Kotter’s model is very strong on initiating change which may not be good for the organizations sometimes. I think that the communication of the change is highly important to the success of this relocation or move of the company to another city. As a manager, I would be working to identify the 'actions' that have to be done as well as the assumptions that employees might reach based on proposed changes. Any one of the major changes could create have an unintended outcome. I think that one important point here, from the employees' perspective, is the need for more information. The employees' will certainly make some assumptions about the reason for this change, and without accurate inform