The organizational modifications relate to new business processes and organizational structure changes within a business. These regulatory innovations fall into two broad categories; revolutionary and the evolutionary changes (Jones, 2007). The sweeping changes include reengineering, restructuring and renovation while the evolutionary changes include the development of flexible workers and work teams and total quality management (Jones, 2007). The following is an analysis of change techniques that Nike could have used to improve effectiveness in the organization.
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This method focuses on the analysis and the design of the workflows and the business processes within an organization (Schiuma, 2010). It helps the organizations rethink on what to do to improve the customer service and how to cut the costs of operations (Fitts & Aziza, 2010). Nike did not put into account the changes that were there in the sport-shoe environment and the changes in the customer tastes and preferences from black shoes to dark blue shoes which lead to the decline of the company’s profit. In re-engineering the organization works on the best way to improve customers with the goods and services that they require and the best way to provide these services.
Total Quality Management
It refers to an ongoing process by the organization to improve the quality of goods and services offered. It causes a radical change in the organization of activities (Jones, 2007). Through Total Quality Management, the company identifies the factors that dissatisfy clients taking into account the customers’ complaints and requests. At Nike, the managers and designers became convinced that they “knew best” what customers wanted, and that the clients would enthusiastically receive their decisions about how to change and improve Nike’s future shoes. The organization did not look for ways to improve the quality of the shoes produced. Failure to develop the products led to the decline in the productivity. Nike should have made a continuous improvement on the shoes created to increase the company’s productivity.
Stage in the Organizational Life Cycle
Organization life cycle refers a sequence of growth and development stages through which an organization may pass through. Primarily, there are four steps in the organization life cycle; birth, growth, decline, and death (Jones, 2007). This section provides an analysis of the life cycle of Nike Inc.
Nike is experiencing the growth phase in the life cycle which incorporates the development of the value creation skills that allow the organizations to acquire additional resources. This stage allows the company to increase the division of labor and specialization of labor to obtain the competitive advantage. It is evident through product specialization in which each team would focus on developing unique products and match needs of the customers in the assigned market segment.
Before the growth, all organization passes through the birth phase which is the development of a business plan. This stage includes; product opportunity, target market, SWOT analysis to identify the strengths and weaknesses, decisions of whether the possibility is feasible and a detailed plan of the business mission, goals, and the objective financial statement (Neeley, 2005).
After birth and growth, the decline phase comes in. At the moment, Nike’s company is facing the decline phase. Here the organization fails to anticipate, avoid or adapt to the external and internal pressure which threaten the long-term existence of the business (Fitts & Aziza, 2010). Sometimes this stage occurs because the organization has grown too much or too fast past the point that maximizes their effectiveness leading to a crisis in the organization. For a company the crisis stage is very critical, and if no action is taken, it leads to death. In the crisis, stage change becomes severe because the stakeholder begins to dissolve their relationships with the business which leads to death phase in the organization.