This is a consulting report to identify the possibility of the company SAR Health Services (SARHS) to distribute their diagnostic medical equipment in the medical sector in Europe, which they produce in Switzerland, and additionally get a foothold in the Asian market. Their possibility will be analyzed using a consulting cycle. Furthermore, the operating costs are to be reduced and production facilities are to be merged with office infrastructure, which includes a mass dismissal of 5 to 8% of the 3000 employees.
In addition, a sustainable approach is introduced in order to save further costs. The research mainly concentrates on the strategy and the change management and how this affects aspects like motivation, loyalty and performance of the work force and of management of the organization.
Table of Contents
1. Introduction
2. Identification of the important factors & perspectives
2.1 Vision, mission and risk
2.2 Financial perspective
2.3 Customer perspective
2.4 Internal perspective
2.5 Learning and Innovation perspective
3. Management approach
4. Strategy development
4.1 Risk - Rumors
4.2 Risk - EG & CSR not balanced:
4.3 Risk - relocation:
4.4 Risk - mass dismissal:
4.5 Risk - decrees CO footprint:
4.6 Risk - matrix organization:
5. Change management & learnings
Objectives and Core Topics
This report aims to analyze the strategic and organizational challenges of SAR Health Services (SARHS) as they seek to optimize operations and expand into the Asian market. The central research objective is to develop a change management framework that mitigates the negative impacts of cost-reduction measures and structural changes on employee motivation, loyalty, and overall organizational performance.
- Strategic consulting cycle application
- Internal communication and stakeholder management
- Risk assessment and mitigation strategies
- Balanced Scorecard (BSC) and performance monitoring
Excerpt from the Book
4.1 Risk - Rumors
Outcome: work force is not open for future change. Focus on: transparency and internal communication / Develop IS System. Strategy development: As described by Ruck and Welch (2012, p.294) “Communication within organizations is linked to higher levels of performance and service” after the leak of information that occurred, the management needs to make sure that internal communication and transparency, as shown in the strategy Map in Figure 6 is structured and has a concept integrated to an IS System (Olson 2007). Employees often complain that their know-how is not respected, and they don’t feel that their efforts are valued by the management (Ruck & Welch 2012, p.295). In the study of Ruck and Welch (2012) “42 per cent of employees” feel that they are not being well-informed about happenings within their organization.
All involved parties in an organization need to be informed through defined channels like: intranet, video message, social media, print media, through their responsible WG and team leaders, as well as “face to face” at a company event (Ruck & Welch 2012, p.298; Ruta 2005; Littlejohn & Foss 2008; Sorensen et al 2018). Timing is essential for all departments (Europe / Asia), they need to release information in a close time span. With an interactive IT platform tools can be generated that can measure the interactions and engagement of the stakeholders (Ruck & Welch 2008, p.300) and staff can ask questions and give feedbacks that are taken seriously (Ruck & Welch 2012, p.297).
Summary of Chapters
1. Introduction: Outlines the consulting report's purpose regarding SARHS, focusing on operational cost reduction, workforce changes, and the research methodology.
2. Identification of the important factors & perspectives: Examines five critical business perspectives—vision, financial, customer, internal, and innovation—that must be evaluated to ensure project success.
2.1 Vision, mission and risk: Discusses the necessity of a clear V&M to serve as the baseline for the Balanced Scorecard and key performance indicators.
2.2 Financial perspective: Explains the importance of defining financial factors while ensuring they are aligned with other organizational perspectives for comprehensive performance evaluation.
2.3 Customer perspective: Highlights how customer needs drive user requirements and the potential for cost-saving production shifts to Asia.
2.4 Internal perspective: Details the need for a systematic approach to organizational configuration, focusing on structures, processes, and relationships.
2.5 Learning and Innovation perspective: Analyzes the roles of ethical guidelines, workforce motivation, and social networks in maintaining organizational health.
3. Management approach: Contrasts top-down versus participatory management scenarios to determine the best implementation path for the company's master plan.
4. Strategy development: Provides detailed mitigation strategies for specific organizational risks, ranging from rumor management to mass dismissal.
4.1 Risk - Rumors: Focuses on improving transparency and internal communication channels to ensure employees are informed and feel valued.
4.2 Risk - EG & CSR not balanced: Addresses the need for balanced guidelines to increase organizational attractiveness and identification during transitions.
4.3 Risk - relocation: Emphasizes the importance of communicating objectives clearly to maintain staff loyalty during site closures.
4.4 Risk - mass dismissal: Outlines legal and social requirements, including clear communication and outplacement support, to handle staff reductions ethically.
4.5 Risk - decrees CO footprint: Suggests linking carbon reduction goals to transparent communication and reward structures.
4.6 Risk - matrix organization: Recommends evaluating and potentially adapting the current organizational structure to ensure clearly defined responsibilities.
5. Change management & learnings: Synthesizes the report's findings, advocating for the use of the CIMA Strategic Scorecard to align individual activities with corporate goals.
Keywords
Change Management, HR Management, SAR Health Services, Strategic Consulting, Balanced Scorecard, Workforce Motivation, Corporate Social Responsibility, Internal Communication, Risk Management, Organizational Structure, Employee Engagement, Lean Management, Strategic Planning, Performance Indicators, Stakeholder Mapping
Frequently Asked Questions
What is the primary focus of this research report?
The report examines how change management strategies affect workforce motivation and organizational performance within SAR Health Services (SARHS) during a period of cost-cutting and structural reorganization.
Which key perspectives are analyzed in the report?
The report utilizes a framework covering five key areas: Vision and Mission, Financial, Customer, Internal Processes, and Learning and Innovation.
What is the main objective of the proposed master plan?
The primary objective is to reduce operational costs by up to 8% and merge facilities, while simultaneously maintaining employee loyalty and organizational attractiveness.
What scientific methodology is utilized in the study?
The research follows a professional consulting cycle, incorporating qualitative brainstorming, stakeholder mapping, and the implementation of a Balanced Scorecard to align strategy with daily operations.
What does the main body of the report cover?
It provides an in-depth risk assessment regarding internal changes and offers specific strategic development plans for mitigating these risks, such as handling rumors and mass dismissals.
What keywords characterize the study?
Key terms include Change Management, Workforce Motivation, Balanced Scorecard, Stakeholder Mapping, and Internal Communication.
How does the report suggest handling the risk of rumors?
The report suggests using defined internal communication channels, such as intranets and face-to-face events, to ensure transparency and show employees that their efforts are valued.
What approach is recommended for the company's matrix organization?
The report suggests evaluating the current structure and potentially shifting to a 'transnational structure' to better define responsibilities and respect differing cultural needs in Europe and Asia.
Why is the 'GEMBA visit' emphasized in the management approach?
GEMBA visits are recommended because they allow senior management to personally observe individual processes, thereby improving their understanding of the workforce's operational challenges.
- Arbeit zitieren
- Patrick Wiget (Autor:in), 2020, Change Management in a HR context. An example of SAR Health Services, München, GRIN Verlag, https://www.grin.com/document/989664
