Factors affecting change
Explain briefly what kind of change has taken place in both the organization, and discuss the reasons of this change, identify whether it is a result of internal environmental factors or external environmental factors in both organizations you selected.
Comparison of Chosen organizations
I have chosen two organizations names, Tandoori Restaurant and Tata Motors, so Tandoori Restaurant is a small and private owned business as compare with other business because Tata Motors is an international and large brand so it is well known everywhere but both businesses are based in India.
Overview of Tandoori Restaurant
I have been with Tandoori Restaurant since two years as a waiter or serving staff. I analyze the changes in management when a senior casher Mr. Sangit Singh got position of manager so he brought several changes in management and system. Specifically he brought internal changes in the efficiency and performance of employees.
Business Hours; he change the business hours and maintain the new roster for employees, they spend more potential hours on work especially breakfast means early morning and dinner times to late night.
Customer services focus; he put the certain ways and rules to employees for customer orientation like that deal politely and take order carefully etc.
He trained the waiters how they take correct order and they should know the recipes of all dishes because some time customer asked about the ingredients before recording order.
He has given the new bright vision to all employees about culture differences and diversities because some time customers belong to different cultures and religions.
He builds up proper communication between chef and waiters about the food, ingredients and customer orders and if customer changed his order so waiter conveniently replace the order.
Chef performance; leader improves the chef performance because he believes that chef should be active, professional and expert in all areas of cooking. In busy hours chef should be quick and cook several recepies at a time.
He strictly check the quantity of cooked food and he stop the wastage of cooked food, in this way daily they cooked estimated numbers of people food and they saved their raw food items.
Internal Reasons for Change
Tandoori Restaurant is a small and private business so in the end of fiscal year they found the bit loss and their business is not growing so than they brought Mr.Singht Singh as a restaurant manager. He modifies the management system and he took initiative for the business growth. He brought some internal and external changes like that;
Customer focus; he improve the quality of customer services and he gave the trial and training of dealing the several culture customers. they were in full competition so they need to provide best customer services and more working hours with the variety of food and may be time to time they need to do promotion offers as well. They have to improve the culture gap between employees of restaurant.
Chef performance; he improves the kitchen management and chef performance during busy working hours. Meanwhile he reduces the wastage of cooked food and save the raw food and money.
Overview of Tata Motors
Tata Motors was highly successfully, well diversified and globally ambitious automobile giant represents one of India’s most remarkable corporate successful.
Tata Motors has a 5 billion loss when suddenly his trucks demand collapsed so that’s why by the end of fiscal year of March 2001they had a biggest lost in the history of company.
Less Cyclical Product; they focus on less cyclical products like that light commercial vehicles, buses, spare parts and passenger cars and they put their resources and effort on these products.
Domestic Market Share; Today Tata Motors transformed in to world’s fifth-largest manufacturer of medium and heavy trucks .Now it has got 61 percent domestic market share in this sector.
It is in number-two position for sales of passenger vehicles in the Indian market.
Overseas Market; It has also built a significant global presence and establish the sales efforts in overseas markets because they want to improve and maintain their sales level. Tata is one of the large Company doing e-sourcing in India and it is one of the world wide leading automobile industry.
Joint Venture; Tata Motors has formed a joint venture with Marcopolo, the Brazilian bus manufacturer, these are the international brands. Tata Motors will flourish their business with them. Tata Motors has embarked on a wide-ranging global partnership with the Italian group-an arrangement that both sides expect to flourish.
External Reasons for change:
Less Demand; Tata Motors faced a problem of less demand for its core product, so their main product was trucks and they face the loss sale in the present market so they invested on other products like that spare parts, passengers cars etc.
Competition threat; they have a threat from overseas automobile companies because market is full with the competition of model, price and quality. There was a threat from overseas competitors
Government Encouragement; There was an opportunity from encouraging social and economic trends like new mobility of young Indians, the government’s large road-building program, and generally floating GDP growth.
Internal Reasons for Change
Loss in Profit; They had a loss of 5 billion rupees in annual fiscal year of March 2001. They had fewer sales so that’s why that loss was a significant for business.
Expansion of Business; they have desired to expand business in entire their own country and other countries as well. Desire of expand business.
Use your research and analytical ability and explain what was the role of the leaders in both organizations throughout the change. Also explain how various leaders applied their ideas and concepts in the process of change management.
Role of Tandoori Restaurant
He is a best leader because he brought the new way to do things right and flourish the business. He has several leadership qualities like that
Brain Storming; he was the leader who has good brain storming skills because he cheered a meeting and discussions with employees before giving them change plan.
Motivate; he motivated the employees to do hard work and learn new market skills for the improvement of existing business and he announce the bonus cash at the end of fiscal year for the most hardworking, regular and efficient employee.
Team work; he gave the spirit of team work in the environment of restaurant and he realized to employees that business will go with team work, emphasis on the co-operation of chef, waiters and manager with each other and all the employees should work for the business growth.
Customer Focus; he concentrate on customer services and dealing, basically this is the core area of business where they taught employees who they can focus on customers.
Role of Tata Motor Leader;
At the time of transformation, they had a problem of 40 % reduction in the commercial-vehicle market in India. They had loss of 5 billion rupee in March 2001 and it was happened first time in the company’s history. But Ravi Kant along with his team understood the situation and tried to know what had gone wrong and to create a best path for the future, so that they never face such situation in future again.
Cost Reduction; after big loss in business they planned to reduce the cost of product because they were facing the reduction in sales so all the Costs had to be reduced in a bigger way, and that was challenge for him as a company’s point of view.
Company Position; he maintain the standard of product and he retained the company’s position in business market of India.
He planned for expansion company’s operations internationally.
They being a unit Improved quality of a product.
Employees Focus; he arranged the meetings and discussions for employees to know customer problems, demands and suggestions.
Staff Training; He facilitated proper training programme for different staff and workers.
Unity and Encouragement; he set and specify the certain ways to create unity among all staff and workers. He encourages the workers about their performance and coming challenges.
Broad Vision; he has a broad business vision about national and international market. He knows the demand and opportunities of different products as well he knows the more potential international market.
Optimistic; he was fully confident and optimistic about future of his business and he convert the both skills to employees.
Compare and evaluate the application of leadership in change management in both the organizations and discuss the similarities and differences in implementation of leadership ideas in both organizations.
Tandori Restaurant has incremental change in management and Tata motors has transformational changes in their set up.
Tata Motors is a big international known brand and Tandoori Restaurant is a local Indian based business and it is a small business.
Both organizations are customer focused and profit oriented because their main focus to gain more customers and earn significant profit. As well they have focus to maintain the good repute of their companies in local market.
Both has a staff training programmes and counseling and staff problem solvers because their leaders believe if staff and employees are happy so they must show the best results in their performance. In this regard they listen their employees and consider their constructive suggestions.
Both companies focused on team work and create cooperative and constructive environment for the employees and they vanish the communication gap and cultural difference between staff and employees of companies.
Outcome of Changes in Tandoori Restaurant
He was an intelligent and broad vision leader because Manager Singet Singh knew that their internal demand, which is quite high, will help as an important instrument for reactivating the economy of restaurant.
Manager of restaurant knows the challenge and competition of restaurant in local market so that’s why he brought professional business changes.
Being a Manager Singet Singh took initiative in these incremental changes in restaurant management. However his recommendations are acceptable by the owner and employees of restaurant.
The leader of Restaurant played a key role in the management of company and he realized that the decision-making process was a reflection of how he used to manage the company.
Leader was fully committed with his given tasks and confident about his steps that what he is doing, is the right way to go. Leader has to be committed for what he is going to do. If he is trust on himself then people will follow him.
Tandoori Restaurant manager encouraged and appreciate the hard working and consistent staff, in this regard he announce the cash bounce in the end of fiscal year.
Restaurant manager acknowledge the value and objective of the company and he has taken steps in the interest of company.
Outcome of Tata Motors
Tata Motor’s leader is intellectual and broad exposure about business market so he took the initiative to manage and regain the financial stability of Tata Motors.
At the time of diversification, TATA Motors had a problem of 40 % shrunk in the commercial-vehicle market in India. There was a loss of 5 billion rupee in 2001 and it was happened first time in the company’s history. So leader was still optimistic and struggling to retain the position and revenue of the company.
But still they understood the situation, tried to know what had gone wrong and to create a path for the future. So they never face such situation in future.
TATA Motors had unity among their staff member that’s why Ravi Kant says that if they would have had tried to go only through the top, they might not have succeeded as well, and the transformation might have taken much longer.
TATA Motors facilitated breakfast meetings to boost staff, asking them for their frank views. Understanding they were suffocated and they wanted change. So they started picking out some them to face challenges and grow in company.
Leader has to be patient, persistent, and brave at the same time. Meanwhile leader Ravi Kant considered the intrinsic values of employees as well and he took some tough people decisions. With those who are very closed to you because the company comes first; and leader is here to do what is best for the company.
Leaders should be patience and confident as we see Ravi Kant being a chairman, he has enough patience and confidence throughout entire management. He was the leader who has persistent attitude towards company growth and maintenance.
Differences in both Companies
Tandoori Restaurant is a small and private owned business and leader is bit autocratic with employees.
Restaurant has the incremental internal changes because leader reorganizes the system of restaurant.
Tata Motors is a big business but leader of this company is democratic because he invites the employees to discuss the issues and suggestion of customers.
Tata Motors is a transformational internal and external change in his setup and management.