Case Study: Parlexceltron Ltd
Managing and Leading Change
B 27/ 12-13
Parlexceltron Ltd. is a medium-sized, family owned company with 106 employees. The concern is lead by Jack Stevens, his wife Kate and their twin sons Simon and Martin. They are manufacturer of design and production of microchip boards for usage in white goods consumer sector. Over the years the company expanded rapidly. There were internal problems between the managers (1) that lastly could be resolved. 10 months ago Simon (2) had negotiations with a firm who wanted Parlexceltron Ltd. to supply them with microchip modules. The idea was accepted by management and at first the diversification went well. First only a few employees should be trained for the module production and afterwards the rest should be fully integrated but as more and more problems between the departments were detected, they chose that there should be a more definite feeling, they divided the employees in “the board operators” and the “module operators”. As sales were rising, they decided to move the module operators into a new separate unit. The move was an exciting venture for the company, because it would show that they are successful. The new plans were met with disbelief by areas like “microchip production”; employees working on the board production felt like management is unthankful and did not appreciate their work. They complained about the different pays and that only the elite had the opportunity to work in module production. The majority thought they were losing their jobs because they were untrained; this is the reason many were already looking for other jobs. Martin and Jones knew they had to intervene and take care of their employees but how with the aggressive sale push force Simon implemented? The managers felt if they did not act immediately further damage would be caused.
The management of change is considered to be one of the most important issues facing managers. Change is a dominant theme and is crucial for organisational success. In every company continuous changes are taking place and it is the task of the managers to recognize them and to adapt as fast as possible. Change provides a destabilized environment and produces expectations, resistance and stress. Such as in the case of Parlexceltron Ltd. Due to the aggressive expansion and sale force of Simon Stevens, they didn’t recognize that their employees weren’t feeling well in their work environment. Change management is changing certain areas in a company for the perfect adaption, i.e. changing behaviours or practices for a specific result. A manager has achieved a change successfully if the behavioural consequences of employees are positive. As mentioned above this did not happen in the case of Parlexceltron Ltd. The company has undergone every phase of the life cycle pattern and has now reached the elaboration stage, where strategic change is needed. They first started in the entrepreunial stage, where the main aim was to provide a product and the key strategy was to survive in the new market. Jack and Kate Stevens designed the organisational culture, soon they had success and began to expand to further locations and recruit more staff. In the next stage they employed their son Simon to help them grow even more. Managers tend to recruit strong leaders with the same strategic views as the founders. With Simon’s abilities (3) the company’s sales increased in 50 % in only one year. Furthermore he secured new markets through diversification of their product base. Jack felt that his less competent (4) son Martin should be responsible for the production and operation area, as his forces are handling machines and equipment. To manage extensive growth successfully a division of labour is necessary such as the need of management and control, it is important that the managers recruited are competent enough to carry out the tasks they are confronted with. In the stage of formalization systems of communication...
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