Actions as a CEX
The relocation of business from one country to another is a task inter-twined with a continuum of tasks. It is incorporated by a business with the objective to ensure that the different drivers of performances are identified and the operations are improved (Horstmeyer 2019). It is contingent from the case study that David Galbenski, considering the sluggish growth of the business considered different alternatives and decided to outsource the operations to India in search of the low-priced labour and the effective services. Considering the ineffectiveness of the off-shoring plan and its pitiable outcomes, as a CEO, the results could have enhanced. As A CEO, it is integral that the motivation is maintained and the whole team is integrated at the time of adversity, however, Galbenski did not adopt any motivational behaviour and neither adopts strategies to maintain the optimum levels of encouragement among the staff members (INC 2006).
A robust centralization in the decision-making process is evident from the scenario; however, there is a need to make sure that decentralization is maintained in the firm so that the decision-making process is done by consulting different team members and proper brainstorming (Vargas Bustamante 2016). For the business, there was a need to make sure that the different alternatives are effectively looked at and hence, the decision regarding the off-shoring is taken by considering the demerits as well (Horstmeyer 2019). However, it was not done and this is the reason that only 5 per cent of the overall work was outsourced to India. As a CEO, it must have been made sure that the decision-making process was guided by proper planning and change management strategy (INC 2006). It must have been made sure that the robust training of the lawyers in the US and the other staff was provided with robust training curriculums so that they are able to take the challenging as well as more tasks to maintain the profitability of the business.
Organizational change by adhering to the hybrid structure
Change in the organizational design can be helpful for the organization in ensuring that any anticipated changes in the future are implemented in an effective custom. The workflow, systems, procedures and structures need to be aligned in the organization in accordance with the business realities so that the new changes can be implemented efficaciously (Correia and Denis 2016). The redesigning of the structure involves amalgamating the people, structure and processes for supporting the implementation of a particular strategy and ensuring that recruitment and performance management is henceforth, reconsidered. Galbenski decided to address the organisations' overhead costs and hence, decided to outsource the operations. However, operations outsourced accompanied negative results or the results which were not up to the appreciable mark. The outsourcing was to ensure that both potential clients as well as resource providers are procured, however, post offshoring process, most of the operations of the company still remained the same and only 5 per cent of the work was handled in India (INC 2006). It can be suggested that the organization follows a hybrid structure so that more than two reporting structures are formed and flexibility is incorporated in terms of allocation of the tasks. This is so because this structure contributes to the efficiency and ensures that a proper record of the tasks is done
The redesign must make sure that the merger and acquisition process is first of all implemented at the smaller level and then integrated into the business structure. There are factors that the company must consider in its organizational structure and design before conducting its offshoring and outsourcing operations. The preliminary factor is to consider the price as it is a primary motivation of outsourcing. It is a major factor to decide whether the overseas operations must be considered as a part of business or not. It can also lead to reverse auto functioning, henceforth, the key players of the company must be allowed to participate in deciding the pricing structure (Correia and Denis 2016). The second aspect is service level agreement which is the most indispensable document in the outsourcing process. It must have everything laid out clearly so that there is no room for confusion. In the quality levels required from the outsourcing process, there needs to be a management team who must administer outsourcing process or if required must go to the overseas country and ensure the proper training process is conducted. Flexibility must be required so as to facilitate the negotiation of the contract to ensure that the vendor is flexible enough for understanding the clients and hence, acting accordingly.
Incorporating changes by adhering to departmentalization
It is contingent from the provided scenario that the business incurred a lot of risks after its outsourcing operations as many clients were not reliant upon the Indian lawyers for their operations. Therefore, there are certain changes which need to be implemented in the HRM especially regarding the outsourcing process; these changes are meant to ensure that the business risks are reduced. Outsourcing gives access to a pool of talent; however, there are certain risks associated which the company cannot sustain (Foiji et al. 2019). The HRM in the organization must ensure that a business process outsourcing agreement is clearly laid out so that the role of the third-party service provider, employee contracts and the payroll is effectively written.
Business process outsourcing arrangement and its benefits along with administration and specialized function for benefits such as processing, auditing, reporting for the third party must also be clearly listed before outsourcing process so as to make it more efficient. It also needs to be made sure that when referring to the reconsolidation is done with a different enterprise is done; the highly skilled internal group must be in charge. Shared services can be provided to the third parties and henceforth, shared services can also form a central operation of the business by opening shared service centres (Foiji et al. 2019). The HRM process can be directed into three main folds which involve procurement, payroll and accounts payable, travel expenses, receivable, health benefits enrolment and administration of the pension.
The HRM processes can be reframed by referring to the departmentalization structure. It can be ensured that the HR professionals arrange themselves into diverse departments and make sure that the activities are grouped as per diverse departments (Ahmed 2017). The HR professionals must look for different outsourcing procedures for reducing the time as well as resources spent on administration as well as transaction. Operations need to be altered and need to be more focused on concentrating on strategic activities for bringing in more revenue considering the dropping revenue of the organization. It is evident from the scenario that convincing the US-based clients was an intricate task and the pilot programs with four clients were lined up by Galbenski for mitigating with the case (INC 2006). At this state, is integral that HR professionals provide the company with specialized expertise in Human resource management and also provide company assistance in terms of regulatory compliance and speed of the response time. Also, it is critical that HR sufficiently staffs and manages outsourcing relationships and handles outsourcing.
Facilitating organizational change through Generic change model
For facilitating change in the organization, a generic change model can be implemented in the organization (Butenschone et al. 2016). The commencing step is to make sure that the diagnosis of the present issues in the organization is done in an efficient manner. The case study clearly brings forward a picture of the mismanaged outsourcing operations in the company. It is evident that considering the pitiable organizational performance, Galbenski rushed into the decision of outsourcing the operations to India and did not consult with all the team members regarding the same (INC 2006). It resulted in poor outcomes showing poor progress and also the organization sustained loss as a result of the offshoring process. There is a requirement of creating a strategic vision in the firm regarding the organizational processes especially in concern with the decision-making.
There is a need to bring the organizational change within the organization so that the similar consequences are avoided. For effective organizational change management, the organization can ensure that the change can be clearly defined and in line with the business goals. It is a key preliminary fact that the organization needs to articulate in accordance with the organizational goal considering the different business risks (Tidd and Bessant 2018). The third step of the change model is to plan the change strategy by recognizing the risks which the organization failed to acknowledge. For securing commitment, there is an urgent need to develop a communication strategy so that all the employees can take part in the decision made in the organization so that every viewpoint is highlighted in the decision being taken. It can be suggested for the organization to provide effective training to all its employees so that required skills are cultivated and the employees comprehend the organizational culture in a more effectual manner and contribute to the decision-making processes.
Ahmed, M.A. 2017. The importance of the organizational structuring and departmentalization in workplace. The Journal of Middle East and North Africa Sciences, 10,4086 pp.1-9.
Butenschon, M., Clark, J.R., Aldridge, J.N., Allen, J.I., Artioli, Y., Blackford, J.C., Bruggeman, J., Cazenave, P., Ciavatta, S., Kay, S. and Lessin, G. 2016. ERSEM 15.06: a generic model for marine biogeochemistry and the ecosystem dynamics of the lower trophic levels. Geoscientific Model Development, 9,4 pp.1293-1339.
Correia, T. and Denis, J.L. 2016. Hybrid management, organizational configuration, and medical professionalism: evidence from the establishment of a clinical directorate in Portugal. BMC health services research, 16,2 p.161.
Foiji, M.H., Hoque, M.A. and Khan, M.B.H. 2019. Strategic Potential of e-HRM in Outsourcing HR Functions. International Journal of Business and Social Research, 9,2 pp.01-10.
Horstmeyer, D. 2019. Beyond independence: CEO influence and the internal operations of the board. Quarterly Journal of Finance, 9,2 p.1950006.
INC. 2006. Case Study: Was Outsourcing to India the Right Move? Available at: https://www.inc.com/magazine/20060101/handson-casestudy.html
Tidd, J. and Bessant, J.R. 2018. Managing innovation: integrating technological, market and organizational change. Hoboken: John Wiley & Sons.
Vargas Bustamante, A. 2016. U-Form vs. M-Form: How to Understand Decision Autonomy Under Healthcare Decentralization?; Comment on'Decentralisation of Health Services in Fiji: A Decision Space Analysis'. Int J Health Policy Manag, 5,9 pp.561-563.
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