CASE EXAMPLE

SOUTH AFRICAN FABRICATION (SAF)

CASE SUMMARY
In 1996 Peter Connor, a South African management consultant organized a series of strategy workshops for South African Fabrication (SAF). South African Fabrication (SAF) was an engineering company with services and

products as diverse as heavy engineering and steel fabrication to the manufacture of

armament and had prospered in South Africa from government contracts during apartheid. SAF has faced little competition as a result of trade embargoes which prevented

free trade on an international basis. By the late 1990s, the company was facing
competition on the international level and was acquired by an international holding company leading to an issue of corporate-level expectation that is to be dealt with.

CONT OF SUMMARY
Alan Tait (the CEO) and his Board recognized that they needed to rethink company strategy and how the strategic change might be manage. The workshop

explored competitive strategy and organizational culture as a basis of for

considering strategy change. It was discovered that the underlying problem was that most of the company activities were production oriented rather than customer focused.

The style of management was also more attune to a protected market that the
situation it now faced. It tended to be autocratic, highly directive and at time impulsive.

CONT OF SUMMARY
The workshop however concluded that the was a need to focus much more on who customers were, what their need were and how SAFs various businesses could meet those needs Peter asked Gerry {whom, he has discussed the plans and issued concerning the workshop) to note down his thought following these discussion below Clarity of Corporate Strategy, Communication Strategy, What Trigger For Change? Human Resource System Need to Support the Strategy, The Role of Top Management, The Wider Cultural, etc. It should noted that, these principles go hand in hand and they are independent. SAF cannot expect change it culture without getting the strategy sorted out and both relate to the structure, the system employed, the style of management etc.

APPLICATION OF THEORY
The theory that explains this case is managing strategic change. One of the major problems facing senior executives is that of effecting significant strategic change in their organizations. This case develops a number of explanatory frameworks which address the links between the development of strategy in organizations, dimensions of corporate culture and managerial action. In considering such linkages, and by illustrating them with examples from work undertaken in SAF, the case also seeks to advance our

understanding of the problems and means of managing strategic change.

APPLICATION CONT.
It is important for organization to understand, assess and gauge the dynamics in its external environment in order to envisage and establish an appropriate relationship with various actors like government, customers and society. Therefore managers by knowing the subject of change management can better be prepared to understand whatever is going on in the environment

ANSWERS TO QUESTION
1. If I were Peter Connor I would concentrate on analyzing the policies of the company checking the performance levels of the employees pointing out deficient areas of the company Improving corporate culture of the company analyzing the interaction level of the employees and how mutual

problems of the employees are solved.

ANSWER TO QUESTION CONT.

Would this differ from what you would concentrate on if you were the new
CEO of SAF? The answer is yes because as a consultant I would be concerned with the strategy, structure, management and operations of an organization and identify options for the organization and suggest recommendations for change, as well as helping with additional resources to implement solutions, but as a CEO, I would be responsible for leading the development and execution of the Companys long

term strategy with a view to creating shareholder value.

ANSWER TO QUESTION 2
I think human resource system and the role of top management issues are more important is the management of change If you allocate resources in an inefficient way, you still have the option to provide additional resources in order to achieve your objective. If you once failed to make your employees participate in the change process, you will hardly be able to motivate them again. It is a well-known insight that top management support is one of the critical success factors for any change effort. If top management does not buy in why should anybody else?

ANSWER TO QUESTION 2 WHY?

Effective change management that makes all employees participate is essential in our world of turbulence and of shorter cycles of innovation In every organization, management knows about the external environment and the vision of the organization. This knowledge is the basis for developing appropriate strategies. Although challenging, this is the easier part. Nevertheless, management will only be able to successfully implement a new strategic direction, if they manage to gain the commitment of everyone within the organization. The point is to develop processes that enable all employees to learn about change and that to develop a culture of dialogue between management and workforce. Change management means to make change happen to flexibly adapt the organization to ongoing external changes. The implementation of any change process has effects on the employees in an organization. Hence, there is a feedback from the change process to the people involved. Their experiences with a particular change project will have impact on further actions and their acceptance of further changes.

ANSWER TO QUESTION 3
Changes move the whole organization as well as every single employee out of their comfort zone. Therefore, there will always be some people who try to stop or ignore the process. Lack of ability to accept criticism: Those who create new ideas may set up new barriers when they ignore justifiable criticism. The ability to accept criticism is a major precondition for establishing trust and for gaining support. Managers who always know the answer: Some managers are successful because they have good ideas and are able to implement them. But only those, who listen to their employees, will be able to use their creativity as well.. This can create a feeling of togetherness and mutual support as well as of egoism and competition

OTHER POINTS ADDED

The use of language and terminology that is appropriate for the receivers of the message can support creativity and motivation. Sticking to strategies: There are many strategies for problem solving

and for managing change. However, they are often applied wrongly too
rigid or not rigid enough. Lack of complete and correct information: This is a major problem that cannot really be solved. The probably best solution is a balanced mix

of information and creative ideas

QUESTION 4
To understand the cultural system of an organization is to understand the
reactions, interpretations, and actions of organizational members, and how those actions, thoughts, and feelings are shaped by the collectivity. This question makes the case that, such understanding is impossible without careful attention to organizational symbols. Symbols are integral to organizational life. They are not simply by-products of organization, but rather elements that structure members active construction of sense, knowledge, and behavior . Symbol is important even

for organizational members who may not be considered to be insiders.

An important part of understanding organizational culture is the careful reading and analysis of organizational symbols. Such an analysis needs to examine the emotions, thoughts, and actions that symbols may engender, and the integrated

systems of meaning that they convey. Symbols reflect underlying aspects of culture,
generating emotional responses from organizational members and representing organizational values and assumptions and they integrate the entire organization in one system of signification. Organizational members, from customers to competitors to employees to managers, continuously read and respond to the organizational landscape.