Siemens Organizational Structure: The Hard Task of Restructuring

Published: 2021-06-29 06:57:45
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Siemens Organizational Structure: The Hard Task of Restructuring Nour AlHoda Al-Rifai201405839Organizational Behavior December 6th, 2016Qatar UniversitySiemens Organizational Structure: The Hard Task of RestructuringOrganizations are always thriving to prosper and they do whatever it takes to be profitable, even if it took them to change the whole organization. Organizational change is a process where organizations change their strategies, cultures, structures, technologies and how they operate. Obviously, change is not easy and it takes a lot of time and it is not guaranteed to be successful. In order for a change to be successful, the internal and external environment need to be carefully studied. Taking Siemens as an example of organizational change, the ups and downs that the organization faced will be discussed. Why did Kleinfeld fail but somehow Löscher managed to succeed? When Kleinfeld was assigned CEO of Siemens, he took this as an advantage to make changes throughout the company where he aimed for changing the structure of the organization and for decisions to be easily made. Kleinfeld wanted to transform the Siemens’ structure to more of an organic one. His efforts at restructuring the organization indicated that the employees at Siemens were uncomfortable and afraid of change difficulties of restructuring organizations causes some people to be uncomfortable with change. The massive change by Kleinfeld has left people in shock and many of them were not willing to adapt to these changes; which was why, as stated in the reading, groups of employees gathered to protest against this change. There are many factors that could have been the reason for this resistance to change. For example, perception and the fear of the unknown, some people cannot accept the reasons of change or see the positivity of it. Another factor could be threats to power and influence, meaning that some felt that this change will affect their powerful positions. Moreover, employees may have low trust in the company or the CEO and believe that they cannot manage the change. We can conclude that these employees did not care about the company improving as much as they cared about themselves and how this drastic change would affect them. Kleinfeld’s failed because he went in and quickly transformed the organization without studying his plan well. Moreover, he should have taken careful and slow steps when making the change.

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