Implementing Burke-Litwin Change Model In Samsung: A Diagnostic Analysis

Company’s Overview

Change management is a structured approach ensuring a smooth implementation of changes that help in achieving organizational goal.   These are range of process that helps in incorporating an effective change.  This helps i n gaining potential market advantage and helps an organization in realizing its goal.  The theories regarding organizational change management are important enough to incorporate change.  Change does not take place in isolation. It therefore affects the whole organization system. For managing change, it is important to implement an effective business planning and managing process.  The purpose is to gain an effective business related insight to manage the changes in an effective way (Armenakis & Harris, 2009). Change management focus on people to ensure process of change. In order to understand specific changes, it is evident to define the objectives in order to manage organizational effectiveness.  Changes in the business environment are important for meeting the individual needs as per the growing business needs.  Every individual company has to manage the changes that are taking place in the business environment. The possibility regarding the market change can be gained by implementing an effective change.  Managing a change in a proactive way is important for benefitting the organization (Arnold, 2015). This can only be gained by framing the business strategies according to appropriate market needs. Adopting organizational change is stressful for the organization in order to manage changes appropriately. Fundamentally an organizational change helps in introducing an appropriate change.  This change helps in introducing effective change management theories in order to gain effectiveness (Bargal & Schmid, 2012). There are various change management theories that help in ensuring effectiveness.  This is important enough for realising individual confidence and capability to gain market capacity.  With this mindset, it is possible for an individual to gain competitive advantage. There are various change management models that will be appropriate enough to manage the changes in an effective way.

Samsung Group is a South Korean Conglomerate located in the Samsung Town, Seoul. The company was founded by Lee Byung-chul in year 1938 as a trading company. The company diversified into different areas like food processing, insurance, securities and retail.  Samsung entered the electronic market in late 1960s.  Samsung has a strong influence on the South Korean economic development. The company produce around one-fifth of the South Korean Total exports. Samsung achieved growth through exports. Slowly and gradually the company realize the importance of growing internationally. Through its effective market strategy, Samsung was able to engage more consumers while integrating its global marketing and promotional strategies.  The strategic plan of Samsung is to meet customers want and increase technological innovation. Current market is very competitive creating ample of market opportunities. Samsung has a brand vision that is totally different and unique from its other competitors. They are leading the world by digital convergence revolution. This is based on managing the demands of the consumer in an effective way (Benn, Dunphy & Griffiths, 2014).

The report is based on Samsung’s change activities and actions that have been taken recently in order to gain competencies. Further diagnostic tool is used to understand the change management process in the organization. It is important for a company to manage the changes in an effective way so as to gain the benefit in order to gain market competencies. Changes are inevitable in nature and it is important to derive effectiveness through using an effective change model analysis (Cameron & Green, 2015). Samsung has incorporated many changes in the organizational culture due to growing necessity. Being an international organization, it is important to incorporate changes in order to gain competencies. The implementation of the diagnostic model is important to understand the relationship in between the external changes that has been taken place in the company. It is moreover important for an organization to gain competencies in order to manage the overall aim.  This is important for gaining the futuristic growth in the organization while managing the changes at the same time.  This is important for an organization in dealing with consequent issues taking place in the organization.  This is relevant because of the increasing role and capacity of the organizational growth and development. In a Multinational organization it has become important to implement the change management concept in an effective way. This will however help in gaining the market competencies (Boonstra, 2008).

Change Model Theory

The Burke-Lit win change model is based on establishing a cause-and-effect relationship between 12 organizational dimensions.  These factors are important for understanding organizational change. For managing changes in the organization, it is important to understand the whole process to make steady changes. 

The Burke-Lit win change model focus on changing the performance of a team or organization by developing link in between performance and the internal and external factors. All this affects the performance. Burke-Litwin change model is based on evaluating the organizational as well as environmental factors. These factors are important to ensure a booming change. The Burke-Litwin change model helps in managing the framework, comprising the moving factors that can be manipulated to guarantee a smoother transition. The overall purpose is to change the process to another establishing links amid the twelve dimensions.

There are 12 dimensions that are forming basic philosophy in order to form a change model. The external environment is responsible for introducing changes that makes an organization to change its mission, culture, leadership and its operating strategies These factors act as an important parameter to meet the target

Below mentioned are the relevant points that help in analyzing the 12 dimensions identified by the Burke-Litwin change model. These factors are used practically in order to implement the changes in an effective way. Change management focus on people to ensure process of change. In order to understand specific changes, it is evident to define the objectives in order to manage organizational effectiveness.  

1. External Environment: For an organization the external environment is important for managing impact on the organization in order to identify their direct and indirect contact on the organization goals. These are important for managing the organizational
2. Mission and Strategy: For an organization it is important to manage the vision, mission and the strategy of the organization. All these are provided by the top management to the middle and the lower management in order to examine employees’ point-of-view about them.
3. Leadership: The purpose of the organization is to identify the leadership structure of the organization. It needs to identify the chief role models in the organization. The organizational leadership is important in identifying the important aspects related to company (Hayes, 2014).
4. Organizational Culture:  The organizational culture is important for information on the unambiguous as implied rules, regulations, customs, principles and values. This is important for managing the organizational culture in order to improve the organizational performance (Cummings & Worley, 2014).
5. Structure: In order to manage the structure that confined to hierarchical structure. These are important to structure focusing on the responsibility, authority, communication, decision making. In order to gain organizational competencies, the structure is important between the people (Chao, Lee & Ling, 2012).
6. Systems: These are important Systems that include all types of policies and procedures regarding people and the operations of the organization. An organization requires procedures to manage the goal (Huczynski & Buchanan, 2010).
7. Management Practices: These are the basic practices that are been followed in an organization. This practice is important for the mangers to conform the organization’s strategy in dealing to employees and the resources (Goetsch & Davis, 2014).
8. Work Unit Climate:  This is important to manage the collective study in order to manage the organizational climate. This kind of relationships helps in managing the organization with their team members and members in order to organize the organizational goals (Jones, 2010).
9. Tasks and Skills: It is important activity that involves understanding specific job position demands and skills and knowledge. This is important for managing the task responsibilities of related job position. This is important to manage the jobs and employees expectation (Organisational development & design explained .2017).
10. Individual Values and Needs: The dimension is important for seeking employee’s opinion about their work. This activity is important for identifying the excellence factors that result in job enhancement and better job satisfaction (Palmer Dunford & Akin, 2009).
11. Motivation Level: The purpose is to improve the motivation level of the employees. This is important to determine willingness in putting efforts in order to achieve organizational goals. It is important for an organization in gaining competency.
12. Individual and Overall Performance: It is one of the important factors that take into account in order to gain a level of performance, on entity and organizational levels, while gaining productivity, superiority, competence, and budget and customer satisfaction (Rothwell et al 2009).

Burke-Litwin model is important in shaping the organization in order to gain an effective strategy in managing change. It’s good for Samsung to manage the organization in all the twelve dimensions identified by the model. The purpose of the change model is to deal with the critical aspect in order to manage the staff and collaborate to attain the new strategies and goals to manage the changes in an effective way.

For Samsung, the most challenging part is to implement the changing organizational culture. Globalization has created both opportunities and threats for the multinational organizations. For that organization who is working globally, it has become evident to implement effective organizational policies. These policies are important for managing the changes in an effective way. Samsung has to grasp the international culture in order to remain competitive. This is relevant from the point of view of growth and development that is been taking place in the organization since a long time (Storey, 2007). Samsung is facing challenging in terms of implementing international culture in its working.  It has become important to implement the changes a company sees at an international level. These changes are important to be incorporated in the organizational structure while managing it. Samsung has a large market and it is gradually expanding. In order to manage changes it is important to implement the changes in a better way. This will help in gaining competencies in order to ensure effectiveness. Samsung has to implement effective cultural by incorporating the Burke-Litwin change model. This model will help in analyzing the changes in the most effective way. This is how Samsung can ultimately meet its target to gain market competencies (Turner et al 2008).

Assessing Key Factors

Samsung Electronics has announced on June 27 that it would reform its human resources management system. The company has decided to shift the role-centered system in order to improve its global competitiveness. The overall motive is to develop a creative and horizontal organizational culture. These changes will be helping company in simplification of job ranks and adoption of nonhierarchical titles. This has helped in managing the organizational goals in order to develop competitiveness across world. With a rising competition, it has become important for the company to use effective organizational policies to overcome the hurdle (Jin-sik, 2016).

The purpose was to develop changes In order to incorporate changes in order to gain market competencies. These changes are helpful in bringing needful changes. These changes are managing the human resource practice.  It is moreover known for its strength in overcoming crises and quantitative growth. However the company is seen weak in innovation based on the autonomy and creativity due to its rigid culture.  Due to this reason, the company is planning to introduce liberal organizational culture. This will help the company in managing the organizational goals. It is moreover important for managing the organizational task in order to develop competitiveness (Jang, et al 2002).

Recently the Vice Chairman Lee of Samsung Group had hosted a debate on the topic of “Innovations for a Global HR Policy” on Mosaic, the company’s online community forum last July in order to introduce changes in the organizational culture. Over 26,000 employees took part in the debate. They gave around 1,200 ideas and suggestions. Ideas were collected to officially declare “Start-up: Samsung Culture Innovations” in March. A team was created to look after the innovation and development in the Human Resource Department (Daft, 2007).

The new policy was developed to simplify  the job ranks in Samsung from seven-stage system of direct, assistant director, manager, assistant manager, and employee 1~3 to a four-stage system (CL1~CL4) of career development depending on the development of job competency.

 The focus was to develop a friendly organizational culture in order to boost growth. The employees at each rank has to call the other employee with his/her name followed by the suffix “-nim,” The company has now introduced a policy to freely decide on a horizontal and respectable title as per the nature of their task. Though, they have to call the head of teams, groups, parts, and executive directors with their titles. The purpose was to create a friendly organizational culture but with certain restrictions in order to foster growth (Škerlavaj et al 2010).

Another interesting feature introduced by Samsung is change in its meeting culture and reporting culture. The purpose was to introduce meeting culture where only those that are actually essential are there, liberally articulate their thoughts. This will provide employees with liberty to take decision to reach a conclusion. The purpose of the plan was to recommend meetings end within an hour.

Another feature was to introduce a culture that helps in balancing work and life. Currently the employees are facing an issue due to unnecessary overtime. There is a culture where the employees are asked to stay late at the office just because a supervisor or boss has not left. There are also plans to allow employees to take leave any time of the year. Moreover the employees will be allowed to wear shorts in order to work comfortably (Joe & Lim, 2009). The final purpose here is to manage human resources management system in order to gain quick decision making. This is done in order to implement decisions and encourage communication in order to seek innovation. This system launched from March 2017.

Strengths

• It has a significant market share with a wide product categories
• The brand stands at second position in the market share in mobiles.
• The brand is efficient enough in terms of design features and technology.
• The brand is known for developing innovative technology in the Asian market by setting manufacturing plant in India and reducing logistics and supply chain costs.
• In the past 3 years the brand value has increased by 80 percent (Lockwood, 2004).

Weakness

• The launch of Samsung Smart phones has caused cannibalization
• The demand for LCD is expected to decrease in coming future.
• Chinese products focus on economies of scale and hold a large market share.
• Samsung is a hardware leader but the company is dependent on others for its software needs (Stone, 2015).
• The Online stores and an increasing competition from the Chinese brands are affecting the brand value. The online stores are giving better deals due to no distribution channel.

Opportunity 

• A wider opportunity in terms of creating market position while entering into unrelated diversification
• The open organizational culture will help in creating better opportunities for the brand.
• The wider growing international market will be creating better opportunism in order to manage growth. This is important to manage the organizational growth and develop effectiveness.
• The purpose is to manage the organizational growth and develop purpose in gaining market competency (Burke, 2017).

Threats 

• Samsung is facing threat due to the other product lines and failure of product line that has an impact on the brand dilution
• The company is unable to focus at one place due to diversification of products.
• There are foreign players that have already started gaining market share in Asian market.
• There is a constant Threat from Chinese products.
• The consumer electronics and home appliance in low cost strategy causing competition in market (Stone, et al 2016).

Putting the Burke-Litwin Change Model to Effective Use

There can be resistance in implementation of changes due to difference of opinion. The employees will be finding difficulty in managing changes. Employees might resist in the initial stage that can create problem. For gaining competency, it is important to implement changes and to generate competencies. Changes are inevitable in nature and it is important to derive effectiveness through using an effective change model analysis. For incorporating changing across world, it is difficult in managing changes across all the companies in the world.  The human resource department will find difficulty in managing changes. For multinational organization, it is difficult for the HRM department to incorporate changes The purpose was to introduce meeting culture where only those that are actually essential are there, liberally articulate their thoughts. This will provide employees with liberty to take decision to reach a conclusion (Martins & Coetzee, 2009) 

Recommendations and Conclusion 

It is recommended to manage the changes in an effective way by developing a better relationship in employees. The change management theory will help in understanding the changes that are taking place in order to develop a friendly organizational culture. Adopting organizational change is stressful for the organization in order to manage changes appropriately. Fundamentally an organizational change helps in introducing an appropriate change.  As per the Burke and Litwin model, the changes will be introduced in 12 key ways, as identified.  This will bring about a series of changes in the structure, practices and the system of the organization. The changes will be helping in managing the changes in an appropriate way. This is important for incorporating changes in a well-defined way. Slowly and gradually the company realize the importance of growing internationally.

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