Applying Organizational Concepts on Transformation in HCL Technologies
Applying Organizational Concepts on Transformation of HCL Technologies
The provision of Information Technology services globally is incomplete without the inclusion of the global IT services provider, HCL Technologies. The success of the IT service provider is a factor that proved intricate for the organization in the recent past. Regardless of the fact that the company was operating at an annual growth rate of 30 percent, the downturn was based on the firm’s decreasing share in the market. Consequently, the organization’s decreasing market share allowed the firm’s competitors to grow at an annual rate between 40 and 50 percent. In addition, the IT Service industry was rapidly changing. Moreover, the clientele were reluctant on cooperating with an undiversified services provider that provided detached services. These reasons solely prompted HCL Technologies to change by introducing a new business model that would integrate a distinctive management culture defined as Employees First, Customers Second (EFCS). However, it is important to include several different organizational models that would provide a platform for explaining HCL Technologies’ transformation to a successful IT service provider.
Description of Issue
The organizational transformation of HCL Technologies is a feat that deserves recognition in the business field. Concerning HCL Technologies, the organization had a significant role in defining the employees’ attitudes and actions towards several incumbent practices in the organization. For instance, employees were unable to gain access to financial data regarding their projects and thus were unable to compare their performances to those of their colleagues. Consequently, employees did not have a suitable platform that would enable them to voice their complaints or suggestions. Moreover, employees did not possess adequate knowledge on conducting performance reviews on their superiors irrespective of the firm employing a 360-degree review system. As such, these issues faced by employees in HCL Technologies contributed considerably to the firm’s dismal performance in the recent past. For instance, customers became unwilling to conduct business with the organization, value was hard to add for employees and competition increased exponentially forcing the firm to lose its market share irrespective of a constant growth rate. However, application of several strategies on management and work force enabled HCL Technologies to transform successfully.
Analysis of Issue
The analysis of the issue involving HCL Technologies’ successful transformation involves the use of various organizational concepts that will provide answers based on the organization’s success. Foremost, it is vital to assess the three levels in the Organizational Behavior (OB) Model. The three levels in the OB model are categorized into three components; the Individual, the Group and the Organization. However, analysis of the issue requires organizational assessment. One of the main areas of organizational analysis that can be used is organizational structure. HCL’s organizational structure, before the transmission was a horizontal structure that saw employees being accountable to a hierarchy of managers. This reduced the value of the employees’ tasks. Thus, using the structure as the basis for transformation, HCL Technologies was able to incorporate a 360-degree framework in performance review that would allow managers as well to be accountable to employees.
Another concept that would be used in analysis is the Systems Thinking. Systems Thinking provides one with knowledge on the interactions between systems and their influence on each other as a sole unit. In organizational context, these systems comprise individuals, structure and procedures that function together in order to ensure that an organization succeeds. The successful transformation of HCL Technologies is attributed to the cohesive interaction of different systems that operated together. This is depicted by the cohesion of the employees, management, processes and the organization that ensured successful transformation for the firm. Foremost, the organization allowed financial data to be shared broadly among employees in order to allow them to view the organization’s performance. Additionally, the management worked together with employees to ensure that an extensive 360-degree performance review was performed. Consequently, technical processes that involved the implementation of an online process and an online system contributed to the firm’s successful transformation.
The Complexity Theory views the firm as an existing being nd thus enables for an understanding of the manner in which firms adapt to their surroundings and how they manage circumstances involving uncertainty. The Butterfly Effect is a concept that asserts the occurrence of a considerable effect from a small reason. In HCL Technologies, the butterfly effect resulted from the ‘small-scale catalysts’ that were employed such as financial data sharing, creation of a Smart Service desk and a comprehensive 30 degree performance review framework that transformed the firm on a considerable scale. Another concept within the Complexity Theory is the Boundary. Boundaries imply certain distinctions between constituents of the system. In HCL Technologies, the boundary established between the employees and the managers resulting from hierarchy made it impossible for them to add value to their work, thus decreasing the firm’s performance. Another concept within the Complexity Theory is Transforming Feedback. Feedback between boundaries creates room for transformation or destruction of an organization based on the information. In HCL Technologies, the organization was able to dissolve the management-subordinate boundary restricting employees from viewing the firm’s performance. By doing this, employees were able to compare their firm’s performance as well as their respective performances and thus transform the firm positively.
Organizational culture depicts the values, attitudes and mannerisms that constitute the distinctive social and psychosomatic surrounding within an organization. Additionally, organizational culture is viewed as a collection of behaviors of people who are part of the firm and the nuances they attach to their actions. Thus, from such delineations, it is factual that organizational culture plays a fundamental role in ensuring the success or failure of a firm. One model that can be sued to apply organizational culture in HCL’s successful transformation is Cameron and Quinn’s Model. This model employs internal focus, which is based on employees and processes, and external focus of an organization, which is based on customers or competitors. The model also employs Freedom to Act and Stability & Control. The organization culture in HCL Technologies during transformation encouraged a Hierarchy and Family culture. This is because the culture was considerably internally focused on the effect of hierarchy on the work of employees.
The Change Model involves the management of organizational change through different models. One of the most effective change models that can be used to assess the transformation process in HCL Technologies is the Lewin’s Change Model. The model incorporates three processes that include Unfreezing, Changing and Refreezing. Unfreezing involves generating the incentive to change (Kinicki, 317). In HCL’s case, the firm was forced to change based on the customers’ need for a provider that offers indiscreet services. Changing involves improvement of a specific process or procedure to management. In HCL, the management was changed through the introduction of a 360-degree framework that allowed employees to review managers. Refreezing involves integrating the changes into the normal routine performed by employees. The changes carried out in the organization concentrating on the employees such as implementation of an online process and financial data sharing were inculcated into the employees’ normal lifestyle in order for establishment.
Organizational learning creates learning organizations in the context of adoptive and generative organizations. Adoptive learning enables organizations to adapt effectively to environments. Generative learning involves creating novel strategies to ensure competitive advantage. HCL Technologies is a generative learning organization. This is because the firm focused on creating new strategies that would enable it to perform successfully and thus maintain a competitive edge over their rivals. Learning organizations utilize new knowledge in order to transform their behaviors and strategies in their respective environments. One of the main characteristics of learning organizations is based on the firms’ aim in lessening barriers that restrict information sharing. Thus, HCL Technologies is a learning organization since it enabled sharing of financial information to employees by making it available through various groups.
Application of the organizational concepts enabled me to comprehend the various behaviors exhibited during the successful transformation of HCL Technologies. The concept of organizational culture allowed me to understand the main areas that the firm concentrated on in order to induce transformation. Additionally, the concepts in the Complexity Theory enabled me to understand the considerable transformation arising out of small actions, dissolution of hierarchical boundaries and the importance of feedback in transforming vital processes in the firm. Consequently, the Change Model allowed me to understand the importance of managing change in the organization inn order to ensure successful transition. The learning organization theory enabled me to understand the different types of learning organizations use in order to gain an edge over other rivals and the characteristics incumbent in learning organizations that enable them to facilitate their objectives. Additionally, the Systems Thinking enabled me to comprehend the different interactions within the organization while the OB Model of Analysis provided me with the chance to assess HCL Technologies on an organizational level in order to determine its reasons for successful transformation.
Various recommendations can be used by HCL Technologies in ensuring further success. For instance, HCL Technologies can deduce a business strategy that will delve on the provision of more services that are inherently required by customers. For instance, HCL Technologies can provide firms with penetration testing services. These penetration-testing services will be provided by HCL Technologies for the mitigation of security attacks. This recommendation involves utilizing the Organizational Culture Model, through the Cameron and Quinn’s Model. However, at this point, the Cameron and Quinn’s Model will allow the organization to focus on the external elements, such as the customers, who play an important role in ensuring the firm’s success. Another recommendation that will ensure that the firm transforms successfully is the implementation of a variable pay structure that allows employees who are willing to work overtime or on holidays to receive compensation based on the amount of hours they inculcate. This recommendation will incorporate the Lewin’s Change Model in order to ensure that employees realize the need for increased pays, change the current pay structure and establish the system in the pay scheme.
Ackoff, R. (2008). Learning Together: Exploring on Systems Thinking. Retrieved from http://www.youtube.com/watch?v=IJxWoZJAD8k
Kinicki, A. (2011). Organizational Behavior: Key Concepts, Skills and Best Practices (5th International Edition). Boston: McGraw-Hill.
Senge, P. M. (1990). The Leader’s New Work: Building Learning Organizations. Sloan Management Review, pp. 7-23.
Nayar, V. (1990). Why was HCL Technologies’ Transformation so Successful? Sloan Management Review, pp. 418-419.