Table of Contents
Background to the Company.
Current Organizational condition.
Identification of the organizational change.
Reasons for change.
Impact of the Change.
a) On Organizational Culture.
b) Forms of Resistance.
e) Team Roles.
Recommendations for the implementation and management of the change.
a) Involved Strategies.
b) Leadership theories.
c) Organizational Structure.
This report is going to shed light on the DHL express company located in Germany. It highlights the current organizational conditions of the company and analyzes the organizational chart as well. This report reflects on the nature of the logistics business and the exact number of persons being employed by DHL. As DHL has been operating successfully in German for the last several years, the organizational management thinks that they should implement a change into the organization so that the business can become more effective. After proposing the suitable organizational change, this report is also going to reflect the impact of the proposed change on the organizational culture, motivation, stakeholders, team members, and the process of recruitment. Based on the analysis and change management, certain recommendations will be provided for the business to implement change management.
DHL Express is a German parcel and courier mail service organization, which is considered as a segment of German logistics organization Deutsche Post DHL. The company was founded by Dalsey, Lynn, and Hilton. This organization is remarked as the world's largest logistics association, which is operating in more than 230 nations and union territories (Al-Salami et al. 2019). DHL mainly delivers parcels through airmail and sea.
Figure 1: Background of the Company
(Source: Al-Salami et al. 2019)
As per the statistics, more than 1.35 billion parcels have been delivered by DHL every year. The organization was founded in 1969 in the United States, and thus, expanded its operations and services throughout the globe by late 1972. In the year 1980, under the brand of DHL Air Cargo, DHL Express entered the islands of Hawaii with four DC-6 and two DC-3 aircraft. As of 2019, more than 400,000 employees are working at the organization. In the year 1970, DHL was recognized as an international logistics company similar to Purolator and Loomis. The only competitor of the organization was FedEx (Prange, Bruyaka and Marmenout 2018). However, Federal Express did not open its first initial service until the year 1981, entering to Cana, Ontario, and Toronto. The domestic market was greatly profitable, and the DHL Express was the third-largest logistic company behind UPS and FedEx.
The current organizational condition of DHL has been analyzed through SWOT analysis. The strengths, weakness, opportunities, and threats will be analyzed to discuss the current working condition of the company.
Nowadays, DHL has embarked on the transformation of information technology that aims to provide its best services to the world. The arrangement differentiates the supply side from the demand side of the organization and puts management of IT under the control of the business. The management is aiming at the alignment of the spending on IT with the strategy of the business (Tran et al. 2019).
The DHL has a weakness in its supply chain process. The current delivery system of the company is lagging continually. Even the customers are worried about the delivery system. They cannot get their parcels in due times. As a result, DHL is constantly losing its customers.
EBIT is staffed by the employees of IT who are focused on the aspects of demand-management of information technology. Thus, under this new organizational model, DHL will be able to reap the cost savings of its computing centres. Every centre of the DHL is adopting this model. While some of the global teams are willing to implement the EBIT functions within their branches. With the main product, DHL gives services with an accurate delivery time. The company also gives industrial services to complement the product.
The Medical Express transport solution is tailored to the consumers in the Healthcare and Life Science sectors (MacGillavry and Sinyan 2016). The leadership of the European market at 57 percent in 2019 encourages DHL to keep expanding the branch in the locality. In the consecutive year, the organization is going to take new hubs into operations at the previous sites in Brussels and London and opened the largest express distribution branch in Germany in terms of area. The company is also looking forward to enlarging its hub at the East Midland in the UK, hence consequently to increase throughput capacity.
The threats of losing of effective customers and clients are common to DHL organization. If the company collapses due to worse supply chain management, then some of the low-ages laborers will lose their job. Besides, some of the workers will also need to work extra time for the company. They will not be able to take sufficient rest due to long working hours. As a result, return and collect will not be utilized by the clients in the logistics industry. The technical products are not getting accumulated from the users, taken in for further repairs, and then ultimately not returned to the customers.
To work adequately in the worldwide world, DHL needs to keep up its traceability and improve the procedure of correspondence among representatives and partners.They should improve the distribution network and monitor the cash flows. The company should need to transform its processes of the supply chain. They should track their inventory and products with the help of automated information technology.DHL should set implicit rules and keep up authoritative morals.
Figure 2: Organizational change
(Source: Rahman 2018)
The implicit rules ought to be trailed by each working staff part (Rahman 2018). Additionally, because of feeble human resource management, the organization cannot have the option to select, train, and draw in successful workers in the creation and building office.Thus, the Company is looking forward to embracing the usage of information technology into their supply chain process and providing hassle-free delivery.
The main demand for the change of the process of supply chains is that many customers are not getting their parcels and couriers within the deadline. The estimated time of delivery happens after 5-6 days. As a result, most of essential files and documents are not getting delivered in due dates. Hence, the IT-equipped process of supply chain incorporates faster delivery because the organizational workers and delivery agents will work for more hours. The customers can be updated with a message or email about the location of the products when it gets shipped.
When suitable change will be implemented into the organizational management, the customers will easily be able to track their products by simply logging into the website. The customers can also change their delivery dates if they have any issue on the given dates. The expense of supply chains is additionally increasing at a quick rate. Thus, DHL should need to unravel its manageability issues as right on time as could reasonably be expected. As a significant piece of how the organization works, DHL ought to continually assess its way to deal with change management and corporate administration in its manageability drive.
With the establishments set up for DHL to turn into the main mechanical and modern force framework fabricating organization on the planet, DHL is constantly resolved to offer a more secure, cleaner, and the serious item (Barbosa, Castañeda-Ayarza and Ferreira 2020). The organization pushes out of its agreeable condition and grasps inviting change and advancement. The organization plans to stay dexterous from both the vital and natural point of view.
The main reason for this organizational change is that the current working process is getting obsolete. Most of the time, customers were unable to get their products within the deadline. The issue of the supply chain is a bigger problem for the company. Due to the issues of the supply chain, DHL is facing constant problems to provide hassle-free delivery to its customers (Herold and Lee 2017).
The other problems which DHL is facing are the weak management of the human resource group, lack of traceability, failure to track and manage inventory in warehouses as well as stores, complex inbound flow, and inadequate communication between staff and shareholders. Due to these issues, the working procedures of the company are not so effective. Every day, customers were reporting complaints against the service (Havarangsi 2018). As a result, the CEO has decided to implement a change management process and embrace the transformation of information technology to its business process.
By doing so, DHL will be able to control the assets stored in warehouses and ultimately deliver the products to its suitable location in real-time. The company is also opting for an agile strategy. Furthermore, leveraging the strength of global operations of DHL is another benefit that can be rolled out to the customers in the locality (Simba 2018). Through major segments such as Global Forwarding and Express, the supply chain of DHL can accumulate products from vendors all over the globe, clear the procedures of customs, and deliver to the doorstep of customers. This enables them to access an international network of major suppliers and control of their supply chains.
With the change in the structure of organizational management, the organizational culture becomes heavily affected. The majority of the employees have opposed the change because they were not informed about the organizational change earlier. The organizational culture has begun to break down as the unity among the staff is collapsing eventually. Environmental resources, complexity, and change are the general components of external surroundings (Stouten, Rousseau and De Cremer 2018). The change in management can have a wider impact on the company.
The scarcity of organization and unique culture in the environment can directly affect the business. If the rate of cultural change is greater, organizational managers can become less confident in predicting, understanding, and reacting to these environmental changes. Changes in innovative technologies can be a threat to business. The latest trends in socio-culture like the characteristics of changing demographics always impact the DHL organizations that run their business. In the same way, the sociocultural changes in the beliefs, attitudes, and behaviour always impact the demand for the services and products of a business.
Resistance is created because of several attitudes and blind spots in which the employees have an outcome of their preoccupation with the theoretical as well as technological principles of new concepts. The management of DHL organization can take concrete ways to deal with the attitudes of the staff. Most of the staff are not willing to accept the change. The step consists of emphasizing novel standards of performance for the employees and motivating them to think in various ways (Cummings, Bridgman and Brown 2016).
The other steps include making use of the idea that the symbols of resistance can serve as a practical warning gesture in timing and direction technological changes. The organizational executives can also make their efforts more significantly at meetings of employees and team members where change is being proposed. They may do this by changing their focus from the schedules, work assignments, and other details, to what the explanation of these things indicates to develop receptiveness and resistance to change.
Change management also impacts the stakeholders of the organization. For a successful business, levels of communication with different stakeholders of the business as well as the choice of tools through which the communication process is conducted along with communication manners are considered an important factor (Van Rossum et al. 2016).
Figure 3: Supply Chain Statistics
(Source: Van Rossum et al., 2016)
Nowadays information technology is widely used in the field of various types of business for different purposes. Among all purposes, there must include a proper effective level of communication which is maintained along with sending different types of marketing communication messages to their potential customers. Besides, there is another effect which is mainly measuring purposes of the satisfaction level of customers, making more sales, along with increasing the level of employee morale.
At the level of organization, the nature of work-life is completely changed nowadays because of the influence of information technology such as computer and video conferencing, word processing, electronic message, telescoping and electronic retrieval. All these technologies have presently existed as the early diffusion stage; however, their effective impact is considerable. Moreover, the study analyzed the effect of motivation and change management on the employees (Solem and Liyanage 2019). The research seeks to build a good relationship among the information and change management and the organizational employed by looking at the accessibility, availability, and ability of a user of the logistical resources in the DHL industry.
Change management can affect various parts of the team uniquely because various team members interact with the external factor of the environment (Todnem, Kuipers and Procter 2018). The technological surroundings can affect the team members of the research and development department of the company. These forces of change management can have a direct effect on business. Any change in the monitory and fiscal policy of the DHL Company can impact the members of the department of finance directly, but it can impact the members of the marketing and production department indirectly (Walton, Mays and Haselkorn2016).
This is because their programs can be requested in the way of a new situation, however, it is not compulsory. The company can be treated in functioning inequality presenting these kinds of threats. Any single principle is not enough to discuss the direct relationship between the team members and the company. Hence the company can be considered both an input and output system. It takes different inputs from suppliers like capital, human, and technology. These inputs are converted to outputs, profits, and delivery services that are given back to the customers.
The current business environment is continuously changing, and it can affect every sort of recruitment process in the business. Organizations can monitor the needs of the HR department by identifying their problems. However, due to rapid managerial changes, the needs of the human resource department and their demands cannot be understandable by various businesses. The businesses and employees are dependent on one another, and sometimes, these dependencies lead to organizational threats (Jamwal, Panchal and Kumar 2017). Various regulatory parties affect organizations by making rules and then applying them. In the absence of responsible action, changes in the recruitment surrounding the DHL company can cause a sector to lose its vital client segment and a cost-benefit in its process of operation. If it is left unattended for a long time, the survival of the DHL organization can be threatened.
Organizational change is essential for DHL companies that want to remain competitive and evolve in the global market. However, change management can be disruptive without some effective strategies to guide the initiatives of transformation. The most significant strategies of change management are those that target the element of human behaviour. Thus, the DHL company is recommended to propose incentive systems for the employees and redefine the values of organizational culture. They are also recommended to adopt the strategies of exercising its authority, shifting the load of change, and recruiting the most effective employees of the change.
The DHL company is also recommended to practice the participative and situational leadership theory. By implementing these theories, they can manage the employees and their opposition to change. The leadership influence methods are generally suitable because the greatest number of things influence every other member. For instance, various managerial decisions can be interacting among team members and other departments and making an effect on the company quite suitable (Riquero et al. 2018). Furthermore, the impact of these leadership theories on the company can be always deterministic because of the no interaction of various outside forces. The structure of the company will be predicted based on the attitude of the employee and the philosophy of management.
The DHL Company is recommended to follow the hierarchical organizational structure. Using a hierarchical structure can establish a clear authority for departments and works. The leaders and managers can have authority according to the level of management. They can have the strength to allocate the resource for delivery, reward the employees, and even punish them. The leaders and managers can order their subordinates to monitor the supply chain processes (Simanová and Stasiak-Betlejewska 2018).
Thus, the structure of the company becomes the source for calculating the attitudes of staff. Hence, there will be a simple and direct relationship, rather than much complexity. Besides, the company can be taken as the main point for realizing the contribution of various groups, both outside and within the company. When these groups contribute to the benefit of the company, they should have a legitimate share in the output of the organization. These groups can be considered as suppliers, consumers, employees, society, and stakeholders. Hence, the organizational operations will be influenced by these groups.
This report successfully highlighted the current business operation of the DHL Express company and identified a specific change to the management. The proposed change management is the transformation of information technology that aims to provide its best services to the world. DHL has set implicit rules and kept up authoritative morals. The expense of supply chains is additionally increasing at a quick rate. Thus, DHL is going to unravel its manageability issues on time as could reasonably be expected. As a significant portion of how the company works, DHL is continually assessing its way to deal with change management and corporate administration in its manageability drive.
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