Management of change in New Dynamic Institute (NDI)

1.0 Introduction 1

1.1 Authorization 1

1.2 Purpose: 1

1.3 Source: 1

1.4 Scope: 1

1.5 Limitations: 1

2.0 Profile of New Dynamic Institute (New Dynamic Institute 2009) 2

2.1: History: 2

2.1 Its philosophy: 2

2.2 Staff: 2

2.3 Characteristics of NDI 2

2.3.1 Training focuses 2

2.3.2 Selling Points 3

2.3.3 Target clients 3

3.0 The Six-Box Organizational Model on diagnosis of NDI 3

3.1The Weisbord Model (Palmer, Dunford & Akin 2009 p.123-P.124) 3

3.1.1 Purpose: 4

3.1.2 Structure: 4

3.1.3 Rewards: 5

3.1.4 Help mechanisms: 5

3.1.5 Relationships: 5

3.1.6 Leaderships: 5

3.2 Diagnosis on NDI’s performance 5

3.2.1 Characteristics of NDI 5

3.2.2 Purpose: 6

3.2.3 Structure: 6

3.2.4 Rewards: 7

3.2.5 Helpful mechanisms: 7

3.2.6 Relationships: 8

3.2.7 Leadership: 8

3.2.8 Diagnosis conclusion 8

4.0 Downsizing for NDI 9

4.1 The need for downsizing 9

4.1.1 Definition of downsizing 9

4.1.2 Reasons for downsizing 9

4.2 Risk on downsizing 11

4.2.1 Damaging the morale of working staff: 11

4.2.2 Affecting the reputation: 12

4.2.3 Troubles on re-employment: 12

4.2.4 Wasting time 12

4.3 Methods on countering risk 12

4.3.1 Be Honest (Khera Communications 2009): 12

4.3.2 Negotiation and agreement (Palmer, Dunford & Akin 2009): 13

4.3.3 Avoid troubles on legal issues (Khera Communications 2009): 13

4.3.4 Facilitation and support (Daft 2008): 13

4.3.5 Education, training and empowerment (Palmer, Dunford & Akin 2009): 13

5.0 Tactics of downsizing and other alternatives 14

5.1 Tactics 14

5.1.1 Layoff (Cummings & Worley 2005): 14

5.1.2 Outplacement (Daft 2008): 14

5.1.3 Early retirement (Cummings & Worley 2005): 15

5.1.4 Reducing working hours (Maurer 2009): 15

5.1.5 Lowering wages (Wolfe 2009): 15

5.1.6 Merge units (Cummings & Worley 2005): 15

5.2 Disadvantages and other alternatives 16

5.2.1 Disadvantages 16

5.2.2 Other alternatives 16

6.0 Political issues and solutions related to downsizing 17

6.1 Political issues 17

6.1.1 Bad-mouth (Palmer, Dunford & Akin 2009) : 17

6.1.2 Job hopping following some top managers: 18

6.1.3 A series of misbehaviors to survive (Buchanan & Badham1999): 18

6.1.4 Disclosure of sensitive information: 18

6.2 Solutions 19

6.2.1 Cooperation: 19

6.2.2 Early notice and proper compensation for lay off (Daft 2008): 19

6.2.3 Third party interventions: 19

6.2.4 Empowerment: 19

6.2.5 Proper compromises: 20

7.0 Conclusion 20

List of reference………………………………………………………………………21

Appendix………………………………………………………………………….22-23

  1. Introduction

1.1 Authorization

Dr. Dennis Lee, the CEO of New Dynamic Institute (NDI), authorizes xx xx as the external consultant to help NDI to manage the programme of change.

1.2 Purpose:

This report is to find the existing problems of New Dynamic Institute via diagnosing its present performance. And then it recommends proper solutions to these problems in order to help NDI reduce cost, increase revenue and maintain its good reputation.

1.3 Source:

All collected information on NDI is from the internal workers, management, clients and the official web site of NDI. To make these data more accurate, I use questionnaires (refer to the appendix), face- to- face interviews and observations to facilitate my research.

1.4 Scope:

This report mostly focuses on the interventions for NDI to reduce cost and maintain its performance at some good aspects. It includes the problems diagnosis, recommendation of solutions which includes the negative as well as positive issues and other alternatives to solve the problems.

1.5 Limitations:

The limitations of the report are that it only offers limited resolutions to the problems and mostly short-run suitable means. It’s due to the urgent need and fluctuant situation during transitional period. These solutions in this report are much more suitable for the transitional period.

  1. Profile of New Dynamic Institute (New Dynamic Institute 2009)

2.1: History:

New dynamic Institute is an outstanding Chinese owned education group of “New Dynamic Science & Technology Co., Ltd.”. NDI is the abbreviation of its name. Combining the 20 years’ successful English teaching experience in 70 countries, it creates seven-star efficient English teaching and learning methods. To expand its services with online English learning solutions to the Chinese students, New dynamic Institute has successfully established over 29 training centers in Shanghai, Wuhan, Chengdu, Hefei, Suzhou, Xi’an and other places.

2.1 Its philosophy:

The first NDI was opened in 2004 and then more than 29 centers were opened in the mainland China. Focusing on the efficiency of English learning and the learning habits of Chinese students, it creates an effective and useful solution towards English learning and speaking for Chinese.

Its mission: To help each non-native speakers learn English with great confidence and fantastic results.

Its vision: to become the first class English language training center in China.

2.2 Staff:

Over 29 training centers in China with over 1500 working staff in 7 main departments

2.3 Characteristics of NDI

2.3.1 Training focuses

Career English, Business English, Studying aboard English, Interview English,

Travel English, Telephoning English Business, Meeting English Negotiation English.

English is increasingly the language of communication in today’s financial world and the specific vocabulary needed to operate in this world is covered comprehensively in NDI’S Banking English – in an interesting and active way. Through a variety of stimulating activities and exercises students will learn financial terms and expressions which are used in the world of finance and international banking.

2.3.2 Selling Points

Professional and highly qualified faculty

Comfortable and harmonious environment,

Convenient location

2.3.3 Target clients

Individuals who want to improve English on listening, speaking, reading and writing

Companies who want to improve its employees’ English level.

3.0 The Six-Box Organizational Model on diagnosis of NDI

As an external consultant, I did some investigations on the situation of NDI. Based on my former consulting experience, I recommend using six-box organizational model to diagnose NDI’s performance and find out the solution to the problem. In the following I will firstly explain the model and then use this model to diagnose the problem on NDI.

3.1The Weisbord Model (Palmer, Dunford & Akin 2009 p.123-P.124)

The Six-Box Organizational Model in figure1. (Weisbord 1976 cited in Palmer, Dunford & Akin 2009 p.124)which is often used to help organization analyze its problems and function well. Especially the six boxes (purpose, structure, rewards, helpful mechanisms, relationships, and leadership) that include lots of concerns should be taken care of when dealing with these issues of NDI.

figure 1.0

 

Figure1. Six-Box Organizational Model

Source: Adapted from Organizational Diagnosis: Managing organizational change Palmer, Dunford & Akin 2009 p.124

The followings are some elements to help understand about each box (Provenmodels 2009):

3.1.1 Purpose:

The important elements for this model are the aim explanation and aim agreement. It requires the organization to clearly clarify its goal to the staff in order to win their support.

3.1.2 Structure:

It gives the outline on layouts of different departments and job distribution. And of course it should be reasonable enough in facilitating work and the fulfillment of the purpose.

3.1.3 Rewards:

Whether all tasks have incentives and whether these incentives are proper.

3.1.4 Help mechanisms:

It means whether the mechanism such as policies, plans, meetings, budget, information systems and so forth, function well enough to facilitate the staff to meet the goals of the organization.

3.1.5 Relationships:

Whether the conflict management in dealing with relationships in the organization functions well? The relationships are the following three: between individuals, between work units and between people and the technologies they adopts.

3.1.6 Leaderships:

Whether the managers keep the boxes in balance?

3.2 Diagnosis on NDI’s performance

3.2.1 Characteristics of NDI

At first I’d like to put NDI’s unique characteristics on the agenda. Firstly, NDI is an English training center based on flexible teaching models. Secondly, there are many departments in NDI such as marketing, consultative department, technical division, HR department and so on. And it also includes another two important training departments which are corporate division and individual division. Thirdly, corporate division mainly focuses on corporate training while individual division concentrates on individual training. There is a big gap between the two departments. The two departments almost function by themselves and lack comprehensive communication. At last, there are more part-time instructors than full-time ones in both corporate division and individual division. So from these unique characteristics of NDI, next I will analyze the problems of NDI from the six boxes.

3.2.2 Purpose:

There is a great sum of data on the purpose aspect when observing NDI’s performance. And the following two aspects are the ones that should be mainly focused on.

3.2.2.1 What business is NDI in?

The internal and external data shows NDI is in English train business and it also plans to open more training centers in other areas of China.

3.2.2.2 What is the business goal of NDI?

To gain more profits, the main business goal of NDI is to open more training centers to attract more students studying English in NDI.

3.2.3 Structure:

3.2.3.1 How does NDI distribute tasks?

The data of HR department shows task distribution in NDI lack collaboration. Just take corporate department and individual department for example that the manager of each department decides every things respectively and seldom discusses plans with other departments, which sometimes causes too much misunderstanding. From the gathering data it also shows some strange phenomenon. In teachers’ recruitment plan of corporate department and individual department, the two departments even turn hostile to each other to fight over teachers.

3.2.3.2 How does NDI’s structure align with its purpose?

The structure of NDI is a little bit strange. Seeing from the surface, we can see the training department includes two branches that are corporate department and individual department. But the two departments work totally separately. And there are two special teams work for the two departments on the HR issues in HR department. The fierce internal conflict makes it hard for staff to cooperate fully to facilitate NDI to fulfill its aim.

3.2.3.3 How does its structure affect the whole operation of NDI?

The NDI’s structure is not appropriate for its future development. At this point, there are two main aspects. The first one is the separation of departments such as corporate division and individual division. The second one is that there are too many part-time teachers.

3.2.4 Rewards:

3.2.4.1

What specified incentives exist in assisting staff accomplish organizational aims? NDI focuses too much on the marketing part which means it concentrates too much on signing new students. To gain more profit, it gives the sales consultant vey nice reward for their successful contracts signing. But for the teachers’ part, there is no reward on their good expression which decreases teachers’ working morale seriously.

3.2.5 Helpful mechanisms:

3.2.5.1 What’s the budget towards expansion and input in other aspects such as training and career development processes for the staff? The budget on business expansion is really very appreciable. From the top management’s data, we got that NDI has invested a big sum of money in opening new centers in other areas of China. While on staff’s training and career development processes part, it only offers very poor input. These full-time instructors who work in NDI only received simple trainings during the one month internship. And these part- time teachers never receive trainings.

3.2.5.2 What kinds of communication methods exist? Staff meetings are held to discuss negative issues timely, while too bloated structure leads to ineffective and delayed communication. For example, corporate department and individual department often hold meeting with marketing department and HR department separately. The internal fights between them even make whole NDI lack of comprehensive communication.

3.2.5.3 What career development and training programs offered to help staff fulfill goals? Few training and career development programs are offered by NDI. Because there are too many part-time teachers which make the training programs very difficult to develop.

3.2.6 Relationships:

The relationships between workers are not very harmonious. The hyper internal competition between corporate department and individual department makes the relationship very bad. Meanwhile, too many part-time teachers also make the relationships worse between full-time working staff and part-time ones. There is almost no face-to-face communication between them.

3.2.7 Leadership:

Do the leaders have a clear vision of future development of the company? Just as many workers of NDI said and the gathered data shows the leaders in NDI’s main departments such as corporate department and individual department only want to perform well separately. They don’t work together and focus the whole profit of NDI. What they do is to concentrate the achievements in their department only.

3.2.8 Diagnosis conclusion

From the six-box diagnosis, we can get that there are some problems in NDI which are that although the number of new students is increased, the renew rates are very low and at the same time there is also a reduction in profit. The causes are in the following:

Firstly, some propositions can’t line up with the purpose. From the internal data, NDI plans to open more training centers even under the circumstance of economy crisis. The noncooperation between the two main departments, corporate department and individual department, too much pre-investment on HR parts which hinder its speed of development and make it difficult to make ends meet.

Secondly, some structure is not appropriate enough, especially the personnel structure. There are two special HR teams, two academic teams, two groups of sales consultants and two groups of curriculum designers who work separately for corporate and individual departments. And there are also two groups of instructors who teach separately for corporate and individual departments. It’s a waste that during the off-season, some of the teachers even don’t have work to do. The number of part-time instructors is too much, even they are experienced but their salaries are too high compared with full time teachers. All of these make NDI have to spend a big sum of money of the salaries for its staff.

Thirdly, reward system is not appropriate towards every working staff. This imbalance is due to the imbalance structure and over concentration on the fields of profit.

Fourthly, bad communication system is the result in big body of part-time instructors and too separate departments such as corporate department and individual department.

All in all, from the above diagnosis, we can make an explanation to the problem that the number of new students is increased, but the renew rates are very low in NDI and the profit is reducing. That is mainly because of too big personnel structure and too separate departments. To handle this problem in NDI, I recommend downsizing which can lighten the big personnel structure and help NDI reduce cost.

4.0 Downsizing for NDI

From the above analysis, there is a need to downsize for NDI. While everything has two sizes, including downsizing, so in the next I’ll explain the need for downsizing, the risks and the counter- risk methods towards downsizing.

4.1 The need for downsizing

4.1.1 Definition of downsizing

Downsizing means ‘the process of reducing staff numbers’, the size or scope of a business in an organization and ‘it has been a widespread change practice’ nowadays. (Palmer, Dunford & Akin 2009, p.99).

4.1.2 Reasons for downsizing

4.1.2.1 Economy field:

The bad economy situation, economy crisis, isn’t fit for any business to expand. One of the reasons for the low renewed rates for NDI is the bankruptcy of some companies and the poor budget on employees’ training program of some companies due to bad economy situation. From the data gathered in corporate department, it shows 50% of the clients don’t renew the contracts mostly due to the financial problems. So it’s not wise for NDI to open new training centers and hire more workers which will cost a lot.

4.1.2.2 Cooperation and professional fields:

The non-cooperative attitude in corporate department and individual department impedes DNI’s development. Since both of them are focusing on training program, why doesn’t NDI consider merging the two? When these people are in the same department and especially in the charge of the same leader, there will be no more conflicts and of course there will be more cooperation. And then the two groups of HR teams, academic teams, instructors, sales consultants and curriculum designers can also be merged as one group. Making these groups more concentrated and professional will reduce a lot of energy and cost for NDI. The most effective means to achieve this result is to conduct lay off.

4.1.2.3 Imbalance number between part-time and full-time instructors

The part-time teachers’ concentrated recruitment isn’t welcomed and appropriate. Most of part-time teachers come from public schools and have good teaching experience. According to the data of accounting department, they are very expensive whose salaries are 80 per hour compared with the fully time teachers. And the huge number of part-time teachers also increases the difficulty of controlling. Since there are no contracts between NDI and the part-time instructors, these teachers can leave at any time without any advanced notices. These sudden leave will give the clients a bad impression and affect NDI’s reputation. If NDI wants to become a first class training center, it must own a fixed teaching group. So using the money saved from cutting part-time teachers, NDI can give these fixed teachers more training. Seeing in the long term, it is more cost-efficient.

4.1.2.4 Imbalanced reward system:

Just as mentioned above, NDI can consider cutting the number of part-time teachers, which will save a big sum of money. Because from the data of NDI’s accounting department, the per hour salary for part-time teachers is80 while for full-time ones is only40. NDI can use part of this saved cost to reward these teachers who have good teaching expression. This can increase their morale and working passion.

4.1.2.5 Bad communication mechanism

The main reasons for bad communication in NDI are the imbalanced reward system, too much part-time workers and inappropriate structure. So to increase the speed of communication and decision making as well as getting closer to clients, there is a need to reduce the number of part-time workers, the layers between different departments and so on.

So from all the above analysis, it is necessary to downsize for NDI. Because it can reduce cost, human resources, time and also avoid some mistakes on some expansion strategies.

4.2 Risk on downsizing

Although downsizing is efficient at cost saving, it will bring some unexpected side effects to NDI.

4.2.1 Damaging the morale of working staff:

It will damage the morale of working staff for a short while. And so no matter how small layoff scale, it will make the survivors feel insecure and resentful. Some times the laid off workers maybe the friends of these who remain. (Mishra, A., Mishra, K., & Spreitzer 2009). This often makes the survivors feel a kind of loss and resistance which will let them have absent mind on works, increase fear, anger, and political behaviors. For example, the left part-time teachers may feel they would be the next ones who will be fired. This will affect their mood and leads the bad teaching performance. Of course, it will affect NDI’s reputation in clients

4.2.2 Affecting the reputation:

It will affect the reputation of NDI as a nice employer and arouse distrust toward NDI among these job candidates.

4.2.3 Troubles on re-employment:

When the economy recovers it will increase the cost of hiring and low flexibility of opportunity catching. (Palmer, Dunford & Akin 2009)

4.2.4 Wasting time

Downsizing will need NDI to rethink the policy and plan on employment and expansion issues, which is time consuming.

Generally speaking, the downsizing strategy of NDI will have complicated effects on its performance. While under the present situation of NDI, there are no other alternatives to solve these problems. So the following I have some proper recommendations to make this transition more effective as well as smoother.

4.3 Methods on countering risk

In order to make downsizing more effective and gain more disadvantages, I suggest NDI use the following methods to smoothen the difficult time during this transition.

4.3.1 Be Honest (Khera Communications 2009):

Don’t use other means to avoid clarifying layoff to the staff. It’s not helpful but makes situation worse. Try to be honest and clarify the issues of downsizing clearly so as to keep relationship and build confidence.

4.3.2 Negotiation and agreement (Palmer, Dunford & Akin 2009):

It’s important to inform all the staff and shareholders of the downsizing plan in advance, no matter when NDI would carry out this plan. In fact, downsizing in business world is a normal issue, so all the members and shareholders of NDI should be given the information beforehand to prepare themselves both mentally and physically. I suggest holding meetings to clarify clearly that downsizing is the last means to save NDI compared with other methods. NDI should make all the members and shareholders understand they are in the same boat so be united and have firm belief on NDI should be the only attitude of all the staff as well as the shareholders. NDI may try to welcome the advice from both the staff and shareholders on some issues of downsizing. Good negotiation sometimes can win support from them at large scale.

4.3.3 Avoid troubles on legal issues (Khera Communications 2009):

NDI should be careful when designing layoffs which refer to many legal problems. So at this time it is necessary for NDI to hire a lawyer who can offer proper suggestions to avoid the layoffs touching the legal fields. This mean is very crucial.

4.3.4 Facilitation and support (Daft 2008):

The downsizing is a bad mood catalyst among employees. So NDI had better offer proper facilitation and support to the survivors. NDI can sign some experienced consultants to give employees tips to relieve their unease. And NDI should also treat the staff with respect and dignity which can also reduce resistance from the members of the organization.

4.3.5 Education, training and empowerment (Palmer, Dunford & Akin 2009):

Due to the fluctuation of the environment, NDI should also make itself more flexible. One way to mollify the survivors of the downsizing is to make them more competent toward hyper competition. This can enhance their confidence and work more actively after the transition. On this point I recommend NDI to use a part of the reduced cost to conduct cross-training program, which means to train the individuals to perform in variety of tasks and make the management staff more versatile at the issues of HR, marketing, financial and so on. For instance, NDI can train the instructors to act as teachers as well as sales consultants. Because they understand the teaching process much better than some consultants, they can give the students more proper and nice suggestions, which is more persuasive to attract new customers. NDI can also appoint some of the members to act as crucial roles. All of the means can make all the staff of NDI more confident and competent to assist future organizational development. And of course it can reduce the resistance rate towards downsizing.

All the above proposals are very useful and helpful to handle these problems and risk during the downsizing process. And NDI should take them serious and use them properly.

5.0 Tactics of downsizing and other alternatives

This part I will recommend some tactics of downsizing and other alternatives. These can help NDI to conduct downsizing smoothly and reduce some side effects as well.

5.1 Tactics

Downsizing is the fast way to cut cost and maintain revenue. For the present situation of NDI, I recommend the following group of interventions conduct downsizing.

Downsizing as Cummings and Worley (2008) mentioned in their book includes three tactics which are workforce reduction, organization redesign and systemic redesign. Workforce reduction means reducing the number of working staff. Organization redesign refers to the changes in the fields of tasks. Systematic redesign focuses more on the change of organizational culture aspect. All of these three tactics have proper detailed approach. And the following ones are the appropriate approaches for downsizing project in NDI.

5.1.1 Layoff (Cummings & Worley 2005):

In workforce reduction area, lay off is my first recommendation. NDI can sack some people who are not effective enough in the departments such as sales consultancy, HR, academic areas and so forth which can reduce cost fast and effectively.

5.1.2 Outplacement (Daft 2008):

To maintain the image of a good employer, it’s not proper for NDI to only adopt lay-off as the downsizing method. Lay-off will arouse complains and resistance of the survivals. And outplacement can mollify the embarrassing situation. That requires NDI offers some counseling services on the re-employment for the layoff workers. This means can console these layoff workers and reduce too radical resistance of the survivals.

5.1.3 Early retirement (Cummings & Worley 2005):

The early retirement is also a soft means which can facilitate the downsizing pace. Instead of having a too high rate of layoff, NDI can also conduct early retirement to reduce the working years of employees to cut the cost on salary part. But it’s a long term plan and time consuming.

5.1.4 Reducing working hours (Maurer 2009):

In organization redesign field, I recommend reducing working hours. Reduction of working hours means NDI can shorten the working time to cut the cost on staff’s salary. From HR department, the normal working hours for the member is 8 hours. NDI can shorten it depending on the different working style. For example, NDI can permit instructors get off work when they finish their classes. It is a relatively soft way to reduce cost compared to layoff.

5.1.5 Lowering wages (Wolfe 2009):

Downsizing is never popular among employees. Nobody wants to be fired. So they may accept lowering their wages instead of fired. So NDI can use this way to reduce cost and avoid radical resistance action of employees. And it’s also a nice excuse for NDI to reduce the salary of part-time teachers instead of firing them.

5.1.6 Merge units (Cummings & Worley 2005):

Merging units is workable in this situation. The corporate departments and individual department should be merged as one part. So there is no need to have two managers, two groups of sales consultants, instructors and course designers. This will reduce cost and make the corporate and individual training issues go on more smoothly.

5.2 Disadvantages and other alternatives

5.2.1 Disadvantages

Although the above tactics of downsizing are good choices for NDI, they have some disadvantages. Layoff is a too radical approach, which may make the survivals lose confidence and passion. This may affect their performance and even affect their service towards customers. And early retirement, reducing working hours and lowering wages are the approaches which will decrease the morale of employees and are only fit for transition period. If NDI wants to have a bright future and make good profit, it should also adopt other tactics which are good for the long term development. Meanwhile, the economy situation, government policies and marketing demand fluctuate from time to time. And these terrible natural disasters often attack the world suddenly. So there is a need to give NDI other alternatives to meet the unpredictable challenge. The following issues are these alternatives for NDI to choose in case of contingency.

5.2.2 Other alternatives

5.2.2.1 Cross training (Reh 2009)

The so called cross training is to make the working staff more competent in variety of jobs. Just as I have mentioned above, NDI can train the instructors to act as teachers as well as sales consultants. So there is no more need to hire more consultants at high expense. And the instructor and sales consultant can also give students more detailed suggestions on English study part, which can attract more students. This can reduce cost as well as increase profit. When all the members are skillful at more fields, it’s better for NDI to keep employment relationship with them than to sack them. Cross training is also a kind of career development program for the staff of NDI which can be designed to match the future needs.

5.2.2.2 Voluntary resignation(Daft 2008)

The coercive layoff policy is too radical which will destroy the reputation of NDI as a good employer and make working staff in panic. When NDI meets such circumstance, it can resort to the way of voluntary resignation. It means letting those who want to go go. This is also a relatively soft tactic to handle the problems during transition period but is not fit for long run.

5.2.2.3 Unpaid holidays (Nuddleman 2007)

NDI can offer holidays for some workers and of course the holidays are unpaid. Employees can choose these holidays to relax themselves and NDI can also reduce cost on the salaries from the unpaid holiday. And this method is almost a win-win way. It helps NDI save money and also build a good relationship between the employees and employers.

6.0 Political issues and solutions related to downsizing

Just as Buchanan and Badham (1999) mention in their book that political issues act a more important role in the change process, where competition sits together with cooperation. So in the downsizing process of NDI, it will be definitely complicated with some political behaviors. Political behaviors are more negative for the development of organization. Mayes and Allen (1995 cited in Buchanan & Badham1999) tell us that ‘political behaviors are often viewed as serving personal goals rather than the organization as a whole‘. In order to achieve the personal goals, members of NDI may conduct various political behaviors which may make the transition period more difficult to handle.

6.1 Political issues

The followings are the political issues that may happen in NDI during downsizing.

6.1.1 Bad-mouth (Palmer, Dunford & Akin 2009) :

In the downsizing programme for NDI, we can see some people will be sacked. Although I have recommended some methods to mollify these fired people, it’s not easy to handle everything. Different people have different characters and belief. Some may accept the reality of being fired while some may not. They may think it is NDI’s false to sack them. These complicated emotions may let these lay-off workers speak ill of NDI. For example, these people may cheat the survivals that it’s the inside information that they will be fired soon. And these people may also spread adverse news in NDI’s website and some other popular websites. At the information age, we have to admit the power of rumors which may destroy the good reputation of NDI to both employees and clients.

6.1.2 Job hopping following some top managers:

If NDI does merge corporate department and individual department, there will be a question that which leaders of the former two parts will be the new leaders. For instance, if the leader of individual department becomes the new leader, what kind of position the former leader of corporate department should have? Since the two parts have a long history of conflict, the former leader of corporate department isn’t willing to work under the charge of individual leader. To keep face and find a brighter future, the leader of corporate department may quit the job. And to these subordinates of corporate department, they may choose to go with their leader to avoid the future unfair treatment of the former leader of individual department. This kind of action is obviously a big loss to NDI.

6.1.3 A series of misbehaviors to survive (Buchanan & Badham1999):

When all the members of NDI get the news of downsizing, they may start the preparation. In order to survive, some of them may conduct a variety of means to achieve their goals. For example, the sales consultant will try the best to sign more contracts to prove the competence of him or her. He or she may exaggerate the effects of English learning in NDI and give the fake data to clients in order to sign more. Yes, this means may attract more clients at a short time. Because of the excellent work, the sales consultant will survive. But after a while, when the clients know the facts and have small progress in English study, there will be a fierce dispute, which will almost destroy the reputation of NDI towards customers.

6.1.4 Disclosure of sensitive information:

To revenge NDI, some lay-off workers may choose to disclose sensitive information to the rivals such as METRO or EF. Just as the above proposal says, NDI can sack some sales consultants as a means of cost reduction. But there is a crucial issue on sales consultants’ part. It is that they have the first hand information of clients. If they give the clients’ information to the rival companies, such as the quotation, curriculum designs of the training courses. And the rival companies can use the lower quotation to get clients from NDI, which is definitely a deathblow to NDI.

The above political issues are never welcomed to every company who conducts downsizing, while they are also likely to happen. So the following, I will still give some proposals which can help NDI maximize the effectiveness of downsizing programme.

6.2 Solutions

6.2.1 Cooperation:

I’d like the HR department to help me hold a consulting project. This project is aimed to mollify the lay-off workers, which will offer the guidelines to re-employment. This tactic can reduce the resistance and reduce the rate of misbehaviors.

6.2.2 Early notice and proper compensation for lay off (Daft 2008):

HR department should also give the lay-off workers more time to find new jobs. NDI should inform these being fired 30 days before. To mollify them, NDI can inform them 45 days before, which can give them a relatively enough time to find another job. And to these whose contracts haven’t expires yet, NDI should also give them proper compensation. This can also avoid some misbehavior.

6.2.3 Third party interventions:

As Cummings and Worley (2008) suggest when there are some disputes in the members of middle-level management, the top management can deal with it. Just as it mentioned above, there may be some dispute between the former corporate department manager and individual department manager. At this time, it needs NDI’s top management to calm down the two parties and make they sit down to interact with each other directly and solve their problems.

6.2.4 Empowerment:

As Palmer, Dunford and Akin (2009) advise in their book that NDI can also appoint some of the members as important roles to avoid them doing some dirty things for gaining more power.

6.2.5 Proper compromises:

As McMurry (1973cited in Buchanan&Badham1999) remind the proper compromises are very useful. After the merging of units, the leaders should be willing to do some compromises on small issues. That is to give the new subordinates the impression that the new manager doesn’t mean to revenge them. This can make them relaxed and work hard.

7.0 Conclusion

This report use Six-Box Organizational Model to diagnose NDI from the aspects of purpose, structure, rewards, helpful mechanisms, relationships, and leadership.

And it finds the problems of NDI in the following aspects. The first one is the inappropriate future plans. The second one is the improper structure such as the corporate department and individual department. The third one is the imbalanced number of working staff between part-time ones and full-time ones. The fourth one is the imbalanced reward system.

Based on these problems and the present situation of NDI, downsizing is the best choice for NDI to solve these problems and make profit in the near future. And then, it offers some tactics to help NDI smoothen the process. These interventions include layoffs, outplacement, early retirement, reducing working hours, lowering wages and merge units. And it also offers other alternatives such as cross training, voluntary resignation and unpaid holidays. These approaches are comprehensive to help NDI handle some complicated issues during transition period.

At last, this report also tackles with the political issues associated with downsizing. It gives some good advice on handling these issues.

All in all, this report is aimed to help NDI solve the present problems via downsizing. And these recommendations will be of great use in to help NDI to achieve its goals.

Corporate Training Teacher Questionnaire

Thank you for taking the time to complete this questionnaire. It will help us to ensure that you feel you are given enough opportunities for communication regarding your class(es) and voicing possible concerns.

Give each of the following statements a mark from 1 to 5

1

2

3

4

5

Strongly Disagree

Disagree

Sometimes

Agree

Strongly

Agree

Trainees 1 2 3 4 5
1. The students are vocal and participate actively in the course.
2. The students attend the course regularly and on time.
3. Their confidence in English has improved.
4. The students give active feedback and raise concerns to you.
5. The students understand your explainations easily.
6. You are given sufficient help from the students or the class monitor.
7. You have a good rapport with the students.
Your Training
8. You give clear and easy-to-understand instructions.
9. You are well prepared for class.
10. You provide training in an interesting and intelligent way.
11. You keep to the point of the topic for the duration of the class.
12. You correct the students mistakes frequently and thoroughly.
13. You provide plenty of opportunity for students oral communication.
14. You review the previous class with the students.
15. You provide a warm-up and wrap-up for every class.
The Course Materials
16. The materials are appropriate for the students language level.
17. The materials provide enough activities to keep the class active.
18. The materials are well designed and easy to teach..
19. The materials are provided with sufficient preparation time.
The Corporate Office
20. The Corporate Office staff has provided sufficient support when needed.
21. You have had your suggestions listened to and seen improvements made.
22. The staff keep you up to date about any changes in the course.
Additional Comments:

Instructor: Date:

 

Reference
1. Buchanan & Badham1999, Power, politics, and organizational change, SAGE Publications, London.

2. Cummings & Worley 2005, Organization development & change, 8th edn, Thomson south-western, USA

3. Daft 2008, The leadership experience, 4th edn, ed. Calhoun, Acuna & Sabatino, Thomson South-Western, USA.

4. Khera Communications 2009, 5 Tips for Downsizing and Layoffs, more business.com, viewed 20 December 2009,
<http://www.morebusiness.com/company-downsizing>

5. Maurer 2009, Exploring Alternatives to Downsizing, Maurer & Associates viewed11 December 2009,
<http://www.beyondresistance.com/htm/2article/downsize.html>

6. Mishra, A., Mishra, K., & Spreitzer 2009, Downsizing the company without downsizing Morale, MIT Sloan Management Review, viewed 20 December 2009,
<http://sloanreview.mit.edu/the-magazine/articles/2009/spring/50310/downsizing-the-company-without-downsizing-morale/>

7. New Dynamic Institute2009,
<http://www.ndi.com.cn/>

8. Nuddleman 2007, Paid vs. unpaid holidays, Phillip J, Griego &Associates, viewed 22 December 2009,
<http://calemploymentlaw.wordpress.com/2007/06/21/paid-v-unpaid-holidays/>

9. Palmer, I., Dunford, R. & Akin, G. 2009 Managing organizational change, 2nd edn, Mc Graw Hill Higher Education, New York, p.99,p.123-P.124.

10. Provenmodels 2009, six boxes, viewed 22 December 2009,
<http://www.provenmodels.com/23>

11. Reh 2009, Cross Training Employees, About.com, viewed 22 December 2009,
< http://womeninbusiness.about.com/od/layoffsandjobcuts/a/fair-layoffs.htm>

12. Wolfe 2009, Should you only layoff lower wage workers, About.com, viewed 22 December 2009,
< http://womeninbusiness.about.com/od/layoffsandjobcuts/a/fair-layoffs.htm>

 

 

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