Introduction

Perhaps, every organisation wants to initiate a management system and strategy

that could maintain the organization's capability, strength and competitiveness. It is
important that the management team and the organisation per se should always open
their mind for changes that they might encounter in order to cope and adapt to the latest
development that are happening within and outside their environment. Thus, this paper
will discuss and evaluate a large-planned organizational change that would help
Lakeland Wonders to achieve its mission and to survive with the stiff competition.
Specifically, this paper will study the organizational change that would be imposed in
Lakeland Wonders. As stated, this paper had selected Lakeland Wonders based in
Minnesota. This company had recently adopted a particular change
management brought by their new CEO, Cheryl Hailstorm. This new CEO has come
aboard with full of fire and enthusiasm to change things quickly with the objective of
making dramatic improvements in the ways work is done. However, issues like pace of
change, method of implementation, resistance to change, organizational culture,
accepted norms and practices, acceptance of new leadership, human dignity and other
problems at work were perhaps not carefully considered and tactfully handled.

The company Lakeland Wonders produces high-quality wooden toys. It has three
plants in Minnesota with almost 5,000 employees. The company has applied a
certain change management focused on offshore manufacturing. Before planning for
this particular project, the company had made an extensive evaluation of its facilities,
manufacturing capabilities and Labour management.

Analysis

The CEO, Cheryl Hailstorm

It cannot be denied that the only constant in this world is change, many people
especially those in the business arena find themselves normally adapting. In this
manner, the Lakeland Wonders is never an exception. This is because change can
bring about so much improvement in certain aspects. In many ways, change can make
work easier, pave the way for future innovations or generally improve people’s lives.
Similarly, change has been adopted by various work organisations for varied reasons.
Known as change management, companies and businesses are integrating change into
their work systems so as to be competitive and more efficient.

Due to the problems and the target growth that have been distinguished by this
company, the CEO, Cheryl Hailstorm has decided to create a plan in relation to change
of management. As mentioned earlier, Cheryl Hailstorm wanted to employ change
management for facilities, maintenance unit, manufacturing process and human
resource management. Primarily, her major objective is to utilize change
management process in order to enhance their target market by venturing
to offshore manufacturing and to satisfy their clients.

However, Cheryl Hailstorm as new CEO should be aware of the culture of the
company. She should have respect to the Lakeland Wonders history. Actually, she uses
too autocratic, threatening, coercive leadership since she wanted her people to follow
her way without getting people involved. She certainly needs to get the cooperation of
the people involved in order to have successful changes in management.

With regards to ethical issues, Cheryl Hailstorm should be able to take

considerations of what would be the reaction of their employees to the changes that
would be imposed. Furthermore, she should have seen to it that her employees have
undergone critical explanations about the reasons why the change of management
system and strategy is needed for a certain aspects within the company. Cheryl
Hailstorm should also give the employees enough time to master the skills and
proficiency of their employees from maintenance, communication services and human
resource management in utilising the changes made by the organisation. This is done
by providing them enough trainings and orientation to explain the changes made.

Actually, the leadership skills of Cheryl Hailstorm are important for the company.
The title of being chief executive officer can be utilized by any individual however
possessing the title does not automatically makes a person a leader in a true sense.
According to Haddock and Manning (1995) being a true leader must be obtained
through inspiring and motivating people to give their best and a successful leader
commits herself to her organisation or group and nurtures the same kind of commitment
to its members. In addition, according to Haddock and Manning, a successful leader
has the following traits:
 • Knows her job and her field thoroughly.

• Stays on top of current development, trends, and theories.

• Knows her people, including their strengths, weaknesses, hopes, and goals.

• Shares a vision of service, excellence, ethics, and achievement with others.

• Demonstrates by her words and actions strengths of character and integrity.

From these traits presented by Haddock and Manning (1995), Cheryl Hailstorm
should carefully evaluate herself and made the possible changes to become a
successful CEO in Lakeland Wonders.

Reactions to Changes

“Workers are assets” has become the dominant symbol of late twentieth-century
management. In some ways, it represents a worthy elevation of employees to the status
they deserve. People are, after all, the chief engine of prosperity for most organizations.
What other factor of production contributes so much to strategic success? In other
ways, however, the asset symbol falls short of fully expressing the value that people
bring to the workplace and the control they exercise over its investment.

Ands: Outsourcing could mean lost of jobs

Company’s image suffers if outsourced. She did not provide a solution

Delivery concern; Company going offshore to establish a base with no

certain

terms– don’t do thing so fast.

She needs to articulate strategy, vision, mission, short term & long term
objectives & goals

Distrust

Poor communication

Unpleasant surprises

Lack of openness
 Fear of unknowns

Management Approach

In setting up an offshore manufacturing plant, different aspects of management

must be considered and given importance to be able for the company to come up with
good plans for implementation. Because Lakeland Wonders needs to be as productive
as possible to utilize their precious resources, to meet their customer needs, and to stay
competitive with similar organizations, they must adopt and implement a good deal of
management. Management is the principal factor determining the productivity of labor,
thus, the compulsion for higher productivity in business organizations demands high-
level manpower resources. Therefore, through operations management concepts,
organizations will be able to effectively implement management strategies that would be
relevant to their plans of putting up a call center.

Primarily, operating plans involve planning, with a given emphasis on allotting a

specific period or time for a specific task. In setting up an offshore business, thorough
and careful planning must be made to identify the different several risks that must be
given consideration for a more effective operation. Theoretically, operational planning
deals in aggregated or average values of variables in the system, such as product
demands, equipment capacity, standard costs, and inventory levels (Thereof 1987).
Secondly, organizing is another important aspect to take note of, and involves the
approach of total quality management or TQM. With TQM, the whole organization can
manage change and set their own agendas with the plethora of new external pressures.
This is another relevant approach for setting up a call center, for it aims to create a
quality culture, which has a goal of delighting their customers (Sallies 2002).

A third aspect to point out is the importance of resource allocation, which

dictates or restrains the choice of goals and strategy (Ko et. al. 2006). Resource
allocation and budget is an important aspect to take note because in putting up a call
center, management of resources would determine the extent of technology and
workforce that the call center may have, thus, money and budget determines the
capability of the company to provide extensive services and features to its consumers.
Next aspect that must be given importance is monitoring and evaluating, which includes
knowledge of how to improve performance given institutional considerations and
constraints (Field, Holden and Lawler 2000). Monitoring and evaluating must be
developed prior to setting up a call center, to ensure the smooth and flawless operations
of the outsourced department. Lastly, controlling must also be considered, for this
involves the adjusting of plans to predetermined objectives as they are executed, and
involves distinct activities to measure actual performance, compare performance with
standards, and take action to correct deviations when required (Howard and McKinney
1998). With the effective process of controlling, the supposed call center would have an
effective operations that would enable the company attain its desired implications.
Therefore, the role and use of such management issues and aspects would enable the
whole organization, to efficiently and effectively plan its actions in setting up a call
center.

Thus, before Cheryl Hailstorm pursues her plans, she need first to won over the
senior management support. She must be frank and talk to the senior management
individually and make them understand survival or else acquired by others. Cheryl
Hailstorm must also show concern to the union and respect their culture. She should
get people involve of what she does. By appointing a team and empower them to take
decision would possibly earn respect and good working habits from employees and later
on start talking of the vision. As previously discussed, the leadership style of Cheryl
Hailstorm should be changed to the type in which it is appropriate to the company.

In addition to this, the unforeseen problems that Lakeland Wonders might

encounter are the cultural differences of its possible employees if offshore
manufacturing was initiated. When assessing the interaction between culture and
empowerment, the company must be able to identify and understand those subcultures
that might engender a work environment more or less empowering than the larger
organizational system (Wilkins & Dyer, 1988). The management should be able to
develop a thriving organizational culture and a stronger organization, providing their
needs and the things that they deserve in order for them to be motivated for their sake
and for the organization’s sake as well. In addition, elements such as work processes,
organization design, career path, performance management and a compensation
program are part of human capital management strategy and a plan to ensure
continuing success. The change management process imposed by the company must
have been seen that there may also encounter problem with some of their stakeholders
like employees, customers and others.
 Also, in managing people, the human capital management should also
incorporate a governance process to ensure equality among employees. Hence, even
though managing people in organization is the most difficult responsibility to be taken, it
is also the most challenging part that if given enough attention, focus and consideration,
this would enhance the employees loyalty and hard work that may not only benefit them
but as well as the organization may it be a non-profit or a profit oriented organization. In
general, people can give more than what is expected if the management were able to
provide them extra hand and minds and if the management give them extra time, extra
information and extra people in order to do their job properly.

This study was conducted in order to evaluate the efficacy of change

management in an actual working organisation as well as to identify the various effects
of change to individuals. The Lakeland Wonders might possibly implement an offshore
manufacturing business. Specifically, these general objectives were integrated in the
company operations through the addition of technological facilities, creation of
communication centres and designation of a human resource staff.

Actually, change of management is not bad as long as the changes made can
really enhance the competitiveness and strength of an organisation. It is effective, if
and only if, a thorough investigation and evaluation of the company’s performance has
made. And if the study suggests that there is a need for change, then that is the only
time, the organisation should imposed required changes to be done. Because, change
of management system is very critical, one wrong move, the company, might faced its
biggest downturn instead of strengthen its business portfolio and survive to the stiff
competition in the business arena. It is recommended that any organisation, who will
undergo some changes on their management system must see to it that the changes
are well planned and implemented carefully, because this will the basis for the success
and/or failure of any organisation.

Remedial Steps

Ands: Ask board to reduce target, cite people concern & culture.

Go forward, talk to people, and get them excited.

 Use reward & recognition

Team effect

Include people from the union

From the discussion, it can be understood that the personality of leaders and their
implementation of leadership styles are determined their culture. The leadership style of
the leader depends on his or her culture and personality, and thus, depends on the
norms of the society and the culture of his or her subordinates. In addition, the Five-
Factor model of personality does not determine the type of leadership that a certain
leader implements in his or her organization. It simply shows that it serves as an
informative tool that emphasizes the important role culture and personality play in
leadership implementation. As a recommendation, it would be essential if one will be
able to effectively and efficiently assess the type of leadership that must be
implemented. There is no general type of leadership style that is applicable to every
organization in any culture or country. Because of this, a leader must be able to
evaluate the nature, the needs, abilities, and the performance of its employees or
colleagues to effectively adopt and implement a suitable type of leadership, depending
on their culture, societal norms, and the individual personality and characteristics of the
leader.

Conclusion

Change management is a process wherein all sectors in the society undergo. It

is a significant process because it allows the organisation to create decisions that will be
beneficial to the employees and the company. Moreover, organisations that are accept
changes are usually more successful compare to companies that resist it. In a globalize
market, new technologies and procedure are emerging rapidly, in order to keep up with
this progress a company must be willing to adapt to management changes. Lakeland
Wonders needs change management particularly with its marketing, inventory, and
performance of the employees in order to keep up with the competition that rapidly
becomes a huge threat in the organisation. Addressing changes particularly in the
human resource will directly benefit the company because the performance of the
employees will either aid in the improvement or failure on the performance of the
company. Investing in the human resource is important because they are the front liners
of the organisation. Efficient front liners ensure the success in winning the battle of
competition within the industry.

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