Organizational change Essay Example for Free

Organizational change Essay Organizational change is everywhere, and its pace is increasing. Its objectives or why it is important is because after certain years of existence and evaluations there are areas and aspects in the organization that needs to be improved. Taking for example its quality of work life, at a certain point it needs to be elevated from where it was before. It can happen that during hiring time people are designated to wrong positions. Organizational change will enable the company to put the right people in the right place, to make them better people as their efficiency and utility will be to the maximum. In this way the company can adjust salary scale on the basis of the performance or output of employees. In the same way also in terms of personnel management, it can be an occasion for studying more specific positions for possible promotion or for trimming down extra baggage. Competition is so tight and for a company to meet the demands of the market an organizational change is important to have a higher quality of productivity and to improve certain strategies as to be in tune with the times. Technology comes and after sometimes new innovations are on the line again, to remain in ones business beliefs and practices the company will be left behind. Organizational change is important as it seeks to enhance its beliefs, values, attitudes, also its structures so that the organization can better adapt to competitive actions, technological advances, and the past pace of other changes in the business world. Another necessity for organizational change is brought about by some failures in the past in the training and orientation of the employees. The attempt to bring them to work without being able to let them carry or support the vision and failure to let the employees see that they are the central element of the organization brings poor result. Organizational change therefore is crucial to allow interplay of structure, technology and people working in it, to result to a higher quality of work life, adaptivity, effectiveness, better marketing strategies, and excellent productivity.

Herzbergs Theory of Motivation and Maslows Hierarchy of Needs :: Papers Maslow Herzberg Essays Business

Herzberg's Theory of Motivation and Maslow's Hierarchy of Needs Mentioned Tables Not Included Among various behavioral theories long generally believed and embraced by American business are those of Frederick Herzberg and Abraham Maslow. Herzberg, a psychologist, proposed a theory about job factors that motivate employees. Maslow, a behavioral scientist and contemporary of Herzberg's, developed a theory about the rank and satisfaction of various human needs and how people pursue these needs. These theories are widely cited in the business literature. In the education profession, however, researchers in the '80s raised questions about the applicability of Maslow's and Herzberg's theories to elementary and secondary school teachers: Do educators, in fact, fit the profiles of the average business employee? That is, do teachers (1) respond to the same motivators that Herzberg associated with employees in profit-making businesses and (2) have the same needs patterns as those uncovered by Maslow in his studies of business employees? HERZBERG'S THEORY OF MOTIVATORS AND HYGIENE FACTORS Herzberg (1959) constructed a two-dimensional paradigm of factors affecting people's attitudes about work. He concluded that such factors as company policy, supervision, interpersonal relations, working conditions, and salary are hygiene factors rather than motivators. According to the theory, the absence of hygiene factors can create job dissatisfaction, but their presence does not motivate or create satisfaction. In contrast, he determined from the data that the motivators were elements that enriched a person's job; he found five factors in particular that were strong determiners of job satisfaction: achievement, recognition, the work itself, responsibility, and advancement. These motivators (satisfiers) were associated with long-term positive effects in job performance while the hygiene factors (dissatisfiers) consistently produced only short-term changes in job attitudes and performance, which quickly fell back to its previous level. In summary, satisfiers describe a person's relationship with what she or he does, many related to the tasks being performed. Dissatisfiers, on the other hand, have to do with a person' relationship to the context or environment in which she or he performs the job.

Sampoerna Guiding Coalition and Anchoring Culture Through Acquisition

IN3N – ORGANIZATION DEVELOPMENT AND CHANGE MANAGEMENT TEAM PAPER SAMPOERNA Guiding Coalition and Anchoring Culture Through Acquisition Disusun Oleh: Adrien Lasserre(Bordeaux) Adhitya Anggripinanto(2009 02 2986) Kokoh Ronald(2009 02 3000) Shauma Nugroho(2009 02 3005) I. INTRODUCTION This paper consists of three parts; organization background, analysis of key success factor, and recommendation. We capture briefly the situation when acquisition happened. Judging from fact that acquisition was succeeded – reaching it goals – we identified that was two key success factors. Guiding by Kotter’s Model we focused on building guiding coalition and anchoring new culture. As our objectives, we recommend some action to Sampoerna’s new CEO which can improve change management in the organization after acquisition. II. ORGANIZATION BACKGROUND PT. Hanjaya Mandala Sampoerna (Sampoerna) is the biggest cigarette manufacture in Indonesia. In 2008, it can sell almost 73. 3 billion unit cigarette, valued up to 33. 9 trillion rupiahs. These stats are the highest among other competitors in the cigarette industry. With terrific product brand like Dji Sam Soe, A Mild, Sampoerna Hijau Kretek, etc, this company became an icon of cigarette industry in Indonesia. Sampoerna’s story of success is inseparable from the history of its founding family. Sampoerna traces its origin to Liem Seeng Tee, a Chinese immigrant who founded the Company in 1913. At his home in Surabaya, Indonesia, he began producing and selling hand-rolled kretek cigarettes, named after the crackling sound they make as they burn. His small company was among the first to manufacture and market kretek as well as non-clove cigarettes on a commercial basis. Kretek cigarettes quickly grew in popularity. By the early 1930’s, Liem Seeng Tee had changed his family name and the name of his company to Sampoerna (Indonesian term for ‘perfect’). However, by 1959, three years after the passing of Seeng Tee, and in the aftermath of Indonesia’s struggle for independence, Sampoerna was once more on the verge of closure. In that year, Aga Sampoerna (Seeng Tee’s second son) was appointed to lead the company, and succeeded in reestablishing and rebuilding the company. Aga’s second son, Putera took over the helm of PT. HM Sampoerna in 1978. During Putera Sampoerna’s tenure, the company established itself as a public company with a modern corporate structure, and embarked on a period of investment and expansions. During the process, Sampoerna consolidated its position as one of Indonesia’s top-tier companies[1]. Sampoerna’s vision is embodied in the â€Å"Three Hands philosophy†. The philosophy embodies the business environment and Sampoerna’s role in this context. The Hands, which represent adult smokers, employees and business partners, and society at large, are the three key stakeholders the Company must embrace to reach its goal of becoming the most respected company in Indonesia. They address each group through: (1) delivering high quality cigarettes with fair value to adult smokers, (2) providing good compensation and working conditions to employees and building a good relationship with business partners, and (3) giving back to the society at large. There are 225 large (28%) and 585 medium (72%) tobacco related industries in 2004 (Central Board of Statistic, 2004). From those companies, only three players leading the market with 68% market share [Exhibit 1]. In 2004, Sampoerna took second position with 19. 91% market share compared to Gudang Garam 30. 25% and Djarum in third position with 18,26% (GAPPRI in Agnes, 009). These three players are competing directly to become a market leader in industry. Sampoerna is well known as an innovative company with creative marketing strategy. We can see it from it phenomenal product called A Mild, the first low nicotine cigarette in Indonesia. May 18, 2005, Philip Morris International (PMI) acquired Sampoerna by buying 98% stake of the company at a price of Rp. 10. 600 per share or in total value of 18. 58 trillion rupiah[2]. This was not only surprising for the company's internal community but throughout Indonesia. This acquisition is one of the largest foreign investments in Indonesian history (Taco, 2007). Even until today, the company's internal do not know accurately the underlying reason Putera Sampoerna sold this company. Probably, Putera Sampoerna had seen an opportunity to sell his company in high price. Refer to Richter (2001: 341), so we can call in this case, pressure comes from vision of its owner. But, possibly there were several things considered by Putera Sampoerna in making this bold decision. We analyze them comprehensively to identify the pressures faced by the company. Putera Sampoerna realized that heavy pressures were not only occurred in his company but also in Indonesia’s cigarette industry in general. Those pressures were: a) Government Mandate Pressure (Palmer et al, 2009: 54). The industry has been experiencing great pressure as public awareness of cigarettes negative impacts and demand to regulate them are increasing. One of the laws which regulate tobacco control is legislation Prov. DKI No 2 / 2005 on the control of air (Tempo, June 22, 2009). b) Geopolitical Pressure (ibid, 55) Cigarette industry also faced pressures from many non-government organizations such as â€Å"Warga Indonesia Tanpa Tembakau† (WITT) and â€Å"Yayasan Lembaga Konsumen Indonesia† (YLKI). This issue has become global. It is proven by the UN Conventions – 2 Framework Conventions on Tobacco Control/FCTC. Indonesia has not ratified it yet. c) Hyper-competition Pressure (ibid, 57) The high competition market was also a strong factor that convinced Sampoerna to let go off the businesses. Although famous for its innovation, the company was not able to overtake the domination of Gudang Garam in the industry of clove cigarettes. Putera Sampoerna concluded that cigarette industry will not stay profitable in the future. One striking fact convinced him was the slow growth of the industry. According to Adrian Rusmana, BNI Securities’ Head of Research, in the last three years, the revenue growth of tobacco companies in Jakarta Stock Exchange (JSE) was under the level of 10%; -0. 3% in 2006 rate and 1. 9% in 2007 (Kurniawan, 2009). In the company's official statement, this acquisition provides an opportunity for it to take advantage from PMI's knowledge and experience from various countries over decades. In addition, the acquisition also brings resources, as well as new methods and procedures in the company's management (HM Sampoerna's Annual Report, 2005). For PMI, their acquisition could increase market power, avoiding the cost of new product development, increase the speed of penetrating the market, and avoid the barriers to entry (Agnes, 2009). After acquisition, company achieved its success. Within 1. 5 years, they reached first place in the national tobacco industry with 28. 3% market share in the year 2007 (see Figure 2, more detail in Exhibit 1). In the same year in November 2007, The Indonesian credit rating agency PT. Pefindo upgraded the Company's credit ratings from id AA+ to id AAA with a stable outlook. This is the first time the Company achieve an id AAA rating. Revenue also showed a growing trend, accompanied by increased net sales and income of the company (PT. HM Sampoerna Annual Report, 2007). The acquisition also speed the company's business acceleration. In 2008, Sampoerna added more than eight Cigarette Production Partners, 15. 000 new employees, build a new factory in Jakarta, then â€Å"pelintingan† through partners increased by 8. 000 (PT. HM Sampoerna Annual Report, 2008). From those facts we know that the management did the right action to achieve success. Their action proved to be effective based on result they achieved. In early stages of acquisition, Martin Gray King takes the helm of Sampoerna. With his charismatic leadership style, like Putera Sampoerna did the organization growth rapidly in stable situation. Since May 27, 2009, John Gledhill took leadership role in Sampoerna (www. vivanews. com). Now we can recommend him what else he can do to maintain and improve Sampoerna performance. Before that, we have to analyze what make this acquisition works well. III. KEY SUCCESS FACTORS IN ACQUISITION OF SAMPOERNA The acquisition decision brings fears to Sampoerna’s employee. For most employees, the figure of Putera Sampoerna is not only perceived as a corporate leader, but also as a parent that is worthy enough to be considered as role. The acquisition feared would damage the harmonious atmosphere that had been created. Most of Sampoerna’s management was concerned in the decreasing of employee’s motivation. They were worried that there will be a reduction of employees (Yos Adiguna in SWA, 2007). Worker can produce 350 cigarettes/hour, while the machine is able to produce 8000 cigarettes/min. Thus, one machine is approximately equal to 1,500 people. Fears of uncertainty and cultural shock are major challenge to management that needs a planned change management action. Based on eight step model by Kotter, there are two main key success factors in this acquisition. First, they succeed in creating guiding coalition. Second, they make cultural change come last not first. On this part, we discuss about what management did align with some concepts developed by Kotter. 1. Creating Guiding Coalitions The change idea in organization usually comes from groups of people who realize the importance of a change to be done by the organization in order to work better in the future. But the idea is not always accepted immediately by some elements of the organization, such as the employee, the owner, or the CEO. This happens although they already sense the urgency to change. Even the CEO would not be able to make some change if he just fends for themselves without any support from the employees. In Kotter's Eight Step Process of Creating Major Change, Building Guiding Coalition is one of the early stages of important thing to make a change, because in essence a change who wants to do will not run properly if the plan change will not get support from elements of organization. If the plan to change is supported by an influential group of the company, the next process will be carried out more easily, especially in expanding the vision, mission, strategy and communication of the change process (Kotter, 1996:51). All top executives considered this thing when decision gets final. Putera Sampoerna summoned all the leaders and gathered them in one big room to announce the acquisition decision. Putera Sampoerna directly builds coalitions to notify changes. All the people obey the Sampoerna family ansd no one questioned the reasons behind the decision. Putera Sampoerna directly coordinate all these leaders, calling them as ‘change agents’ to transmit the spirit as change agents to all Sampoerna’s internal parties, and ordered them to spread the information to the lowest level within the organization (SWA, 2007). Realized this step should be arranged quickly, he make it quickly executed. Monday, 13 March 2005, the draft notification is made for the acquisition news sent to all employees of Sampoerna promptly at 9 am. Velocity in the notification is critical to prevent the rumors come from outside. After the information communicated to all employees, then they understand. At the operational level there was nothing really changed, except for expansion. What will they feel may be more adherences to the rules and improved overlooked. That does not mean that once Sampoerna not obey the rules, but the assertion that the rule is an area that could follow it becomes thick, because it is the value of Philip Morris. What makes Sampoerna’s change agent succeed in guiding coalition? Kotter said a strong guiding coalition needed – one with the right composition, level of trust, and shared objectives. In term of making right composition, first important thing is Putera Sampoerna and PMI’s leader at that time (Martin King) involved, engaged, and committed to the change. If Putera Sampoerna just let go without making a good coalition, maybe realities come contrary. Martin King continued his predecessor becoming the change leader in the organization so Sampoerna will ensure they have leader’s support for change. Putera Sampoerna also selected peoples who have strong position power, broad expertise and diversity, and high credibility within their circle of influence. When the information has spread, there was resistance from some parties, although a small number, including several directors. Some of them even chose to resign. Most workers accept the decision because management promised no changes in operations; all will still be working as usual. The resistance does not occur because of all the elements felt the certainty of their fate. Kotter (2009: 163) stated that resistance can occur because of fears of status uncertainty. Besides, the lack of resistance is also due to the factors of good communication and high level of trust in employee. After they had sufficient powerful persons and mutual trust, now it’s time to deal with what new shared visions. In Kotter, we need to create shared vision in coalition when all the members of the group want to achieve the same objective and real teamwork become feasible. Vision in this term is related with Martin King’s vision about Sampoerna in the future. Martin King demanded Sampoerna to improve acceleration, starting from the quantity and quality of products, as well as human resources, considering the very dynamic business changes. This is a key strategy of the future development of Sampoerna. Continuous improvement being implemented by the Sampoerna with employee development systems, management and control report, reward & punishment, as well as information technology systems / IT (PT. HM Sampoerna Annual Report, 2005). Vision and mission are translated into the main target. One of the targets that best describes the spirit of change in Sampoerna is to become a market leader in the national tobacco industry in the next five years. After building a vision and make measurable targets, then for all elements have to work harder than before achieving it goals. 2. Culture Came Last Not First One of change challenge faced from acquisition is cultural adjustment (Palmer, 2009: 105). In Sampoerna acquisition, the challenge is the cultural adjustment because both of two companies came from different countries, different area, different operating systems and procedures that can often lead to conflicts. The way in which this is managed can be a major determinant of the success or failure of merger. There will be a culture shock if it wasn’t treating properly. The cultural is refers to norms of behavior and shared values among a group of people (Kotter, 1996). Norms of behavior are common or pervasive ways of acting that are found in the group and that persist because group members tend to behave in ways that teach these practice to new members, rewarding those who fit in and sanctioning those who do not. Shared value are important concern and goals shared by most of people in a group that tend to shape group and that persist over time even when group membership changes. In the big company such as PMI and Sampoerna, one typically finds that some of these corporate cultures affect everyone and that others are specific to subunits. The culture that exists in the organization is the most powerful forced in change management, because: (1) Individuals are selected and indoctrinated so well (2) The culture exerts itself through the actions of hundreds or thousands of people, and (3) It happens without much conscious intent and thus is difficult to challenge. Because culture so powerful, when the new practices made in a transformation effort are not compatible with the relevant cultures, they will always be subject to regression. Management realized that the culture problem is one of the critical factors in the acquisition of the company. This will hamper the achievement of goals if the accumulation of it not at the right proportion. Therefore, he will not intervene in the existing culture and prefers to focus on the company's strategic plan forward. Sampoerna’s cultural remains will be preserved as such because prior to the acquisition, Martin considered that the culture in Sampoerna is already very good and strong – a local company with international workings (SWA, 2007). This is also the reason why he only brought 14 of his staff and entrust some of the top management to the the previous leaders of Sampoerna. PMI, basically from USA, has its American Culture. The style of American in being outspoken at giving opinion is very different to Javanese culture that tends do the contradictory. In American style, criticism is usually thrown straightforward and sometimes spicy but still in the context of work, not personal. On the other hand, Sampoerna’s staff is very polite, lack of courage in conveying thoughts in mind, and not straightforward. They are not talking about right or wrong, but rather to complement each other. Other Javanese culture will be maintained by PMI. One is in terms of product launch time, raising the selling price, and a meeting with the Javanese calendar system. Other culture, such as it’s a tradition that Sampoerna always budget cost for the â€Å"pawang hujan† at the launch of its products. PMI which is a foreign company, although did not understand, still follows these tradition. This made the PMI headquarters confused when auditing the financial statements because of the ‘unique' cost. Martin, as PMI representative in Indonesia must explain that this is common in Indonesia. PMI‘s culture was also signed to strengthen the existing Sampoerna culture. The use of English is increasingly common not only in top management but also in the middle management; both oral and written. In lingual matters, Martin did not have problem because he can speak Indonesian and Sampoerna himself always recommend English to be used by every employee (Hidayat, 2007). Culture acculturation can be seen in [Exhibit 2]. From those, referring Kotter, we can conclude that change in culture come to last not first. But, in this case we see in different point of view that culture problem prevent early. They know it will caused problem, so they prevent it with choosing company (Sampoerna) which has similarity in culture. The fundamental similarity is that both companies have a passion to become the market leader. Also, both have a behavior and a willingness to improve them to perfection. When judging Sampoerna, PMI found that culture in Sampoerna is good and strong, so they don’t need dramatic change, just little adjustment. Referring to Lewin’s theory of cultural formation (Kurt Lewin in Schein, 2004: 319-329), acquisition of Sampoerna has four phases. Four phases are the explorations phase, unfreezing phase, merge phase, and freezing phase. The first phase, exploration, should already be identified where the cultural similarities and differences between the parties, and goodwill to achieve the best should remain preserved. The second phase is to dilute the old culture to the parties in the merger. The third phase is merging cultures, or the forming of cultural synergy, usually by defining a new culture, through education or training, coaching, mentoring, and so on. The fourth phase or freezing is realized by various artifacts such as logos, colors, physical appearances of the building, and so forth, as well as organization’s system such as regulation, the definition of a new culture, reward & punishment, and furthermore, the stabilization is continue done by gathering activities, and so on. The first and second phase faced wisely by PMI so Sampoerna is now in the third stage, and was relatively easy to be done, because the critical point is in the second phase. PMI as the new owners did not implement their culture to be dominant. Similarly Sampoerna with the Javanese culture, that has a desire to become more globally. IV. RECOMMENDATIONS The next year, the story of Sampoerna has dramatically taken a new direction; the firm has suddenly moved from an Indonesian family-owned company to an American global company. As results, Sampoerna had to adapt itself and challenged major issues. The change process has been really successful and Putera Sampoerna passed the relay to Martin Kings and now to John Gledhill, avoiding too much troubles. Nevertheless, we can wonder what can be the reactions of the labor force if the company faced other issues in the future. For sure, even if John Gledhill is very skillful, he doesn’t have the aura of two former CEO. Then, the markets move more and more fast and conduct the company to adapt quickly. So, can the change process be implemented in the same conditions in the future? In other words, how the new CEO of Sampoerna can keep implementing successful change process in the future? Here are our recommendations. †¢ Building the Guiding Coalition The Sampoerna family has a really special place in Indonesian mind; the successful story of the company and the charisma of its leaders had led to create individual governance under the control of monarch-like CEO. Indeed, despite of the increasing size of the company and fast-moving industry, what Putera Sampoerna said, people did. Now, the situation is definitely different in many aspects. First, John Gledhill can’t have the same influence on the employees company as his predecessor. He is a foreigner, coming from a major global company and could be suspected not to focus on Indonesian interests, unlike Putera Sampoerna. Second, the tobacco industry is obviously an unstable sector. Law pressures, growing health considerations, strong competitions make the market more and more complex. Today’s business environment clearly demands an efficient decision making. Considering these two factors, it appears that leading the new company with the same leadership style could at least be very difficult and most probably impossible. So, to tackle that issue and build a relevant change governance structure, we can suggest John Gledhill to create a strong guiding coalition that can make change happen. As Kotter said, there are three steps in building strong guiding coalition. We recommend what CEO should do based on these. The first step of this process is to find the right people; that means people with strong position power, broad expertise, high credibility, and overall leadership and management skills. Being sure of leadership skills of the change team members is a key to achieve the goals and special efforts to assure of it must be done. Considering the structure of Sampoerna [Exhibit 3], we think that John Gledhill must involve each part of the organization to build the next guiding coalition. The first reason is that to be enough efficient, the guiding coalition has to be aware of all the aspects of the company. Indeed, in such a complex and fast-moving market, developing a vision and taking strategic decisions quickly and efficiently become more and more difficult. To succeed in the future, the CEO must lean on the specific knowledge of each department’s top managers. In fact, with such a coalition, the information would circulate faster and in better conditions. The other reason that supports this choice is the fact that if each division of the different departments are represented in the guiding coalition, then the trust inside the company would be reinforce. We consider that this kind of coalition is able to increase the feeling of sharing the same goals and doing things in the same direction. If people think that the quality of their job is decreased because other departments don’t go in the same way, they would low their efforts as results. So, concretely, we recommend John Gledhill to build the guiding coalition not only the director of each department but also the head of each subdivision. Considering the organization structure of Sampoerna, the coalition will consist of 25 persons. One obstacle is to assure that the directors and managers have sufficient leadership skills to join the guiding coalition. We suggest John Gledhill measuring their ability to do the job properly and take the decisions required if not. That means don’t hesitate in firing the weakest people and hiring good leaders to increase the efficiency of the coalition. The next step of building a guiding coalition leans on creating trust among the team. Team building today usually has to move faster and Sampoerna’s CEO must conduct the process efficiently by using carefully planned off-site events with lots of talk and activities. The last step deals with the necessity to develop common goal inside the team work. Typical goal that can be chosen for Sampoerna is a commitment to excellence, a real desire to make their organization performs to the very highest level possible. Indeed, the common goal must be both sensible to the head and appealing to the heart. The combination of these elements leads to a powerful coalition with the capacity to make future change happen despite all the forces of inertia. †¢ Developing and Communicating A New Vision The success of the change process in Sampoerna must not hide the fact that some employees can feel uncomfortable with the growing uncertainty in the company. An acquisition is a major change in the mind of people, even if processes in operational level don’t change in the first time. Martin Kings had to be aware of this issue and deal with decreasing the potential fears or skepticism inside the company. Now Sampoerna lead by John Gledhill and he has to aware those concern too. Developing and communicating a new vision is the solution to give to people the answer to their question. In fact, in order to implement future change in the company, vision is definitely essential. If new vision is not built, the feeling of risk and, so on, resistance to change could be an unsolvable problem when implementing a new change. Moreover, it allows simplifying many detailed decisions, it motivates people to take action in the right direction, and helps coordinate the actions of different people. We can recommend Sampoerna’s CEO assuring that the vision is imaginable, desirable, feasible, focused, flexible, and communicable to be understood and shared by the whole company. For instance, next vision could be becoming a strong global brand able to develop itself on international markets. Then, to communicate the vision, John Gledhill and his guiding coalition have to respect key elements in the effective communication. Metaphor, analogy and example must be preferred to incomprehensible jargon and must be communicated many times under multiple forums (big and small meetings, memos, newspapers, etc). Furthermore, behavior from important people must be appropriate to reinforce the message: they have to act as examples, try to explain seeming inconsistencies, and listen to people interrogations. To sum up, the new vision or strategy of the company is an essential step to anticipate future change process. People must understand and share the company vision to involve fully in the necessary change. †¢ Anchoring New Approaches in the Culture When Martin Kings took the head of Sampoerna, he underlined the fact that PMI believed in the former corporate culture. He said that the Javanese company was really adapted to the Indonesian market and that the new orientation of Sampoerna would still lean on the values built by the founders. Philip Morris, as a global company, is experienced in such an acquisition and executives are obviously aware of how anchoring new approach in the culture of a company is difficult. So they decided to take time before dealing with that sensible issue. Therefore, even if Sampoerna’s corporate culture seems to be efficient, PMI has to integrate little by little its own values. Indeed, being part of a global company means share a common main culture (particularities can obviously survive). We can recommend John Gledhill first to be patient: the acquisition has just happened and people must be really sensitive regarding that kind of change. In fact, culture can be considered as the last step in change management process. Moreover dealing with culture issue is very difficult because of its own nature. Some aspects are almost not visible and some others not at all. Saying that doesn’t mean doing nothing; we suggest John Gledhill to implement few changes in the approach of each step of the change process. That means he has to give to Sampoerna a â€Å"Philip Morris Touch†, especially considering efficiency and results. We think that managers and mid-level managers are able to disseminate the values if they are involved enough. To conclude, anchoring new approaches in the culture would be very difficult, John Gledhill must do it very patiently with a great humility if he wants to success. V. Conclusion Overall, the steps taken by management in conducting a post acquisition changes are very good, especially in a guiding coalition and cultural adjustment. In building a guiding coalition, management can create a coalition based on the right composition based on the strong position power, broad expertise and diversity, and high credibility within their circle of influence. In addition, management has succeeded in creating a level of trust between the members, and has a good ability in shared objectives. Management also can overcome the cultural problems faced after the acquisition, the many cultural similarities that owned by PM and Sampoerna cause the process of cultural assimilation is not working too complicated. Although in essence PM have a different culture with Sampoerna, Management still retain the the old culture to avoid cultural shock within the organization. Bibliography Books Kotter, J. P. 1996. Leading Change. Boston: Harvard Business School Press Palmer, Ian. , Richard Dunford, and Gib Akin. 2009. Managing Organizational Change. New York: McGraw-Hill Schein, Edgar R. 2004. Organizational Culture and Leadership. USA: John Wiley & Sons. Newspaper and Magazine SWA Magazine. HM Sampoerna: Padukan Budaya Lokal dan Multinasional. Kamis, 01 Februari 2007. ____________. Ketika Timur dan Barat Menyatu. Rabu, 06 Februari 2008. Tempo Magazine. Indonesia Pasar yang Menggiurkan Bagi Industri Rokok Asing. Senin, 22 Juni 2009. Electronic Reference Sampoerna’s website. http://www. sampoerna. com. Accessed at October 27, 2009. 16. 40 PM http://berita. liputan6. com/ekbis/200503/97974/class='vidico'. Accessed at October 27, 2009. 15:30 PM http://bisnis. vivanews. com/news/read/61146-john_gledhill__dirut_baru_hm_sampoerna. Accessed at November 5, 2009. 13:30 PM Kurniawan, Agnes. 2009. Why Putera sold his Sampoerna. Accessed at October 27, 2009. 15:30 PM. ______________. 2009. Analisis Industri Rokok Nasional 2007-2008. Accessed at October 27, 2009. 16:38 PM. ______________. 2009. Kenapa Philip Meminang Sampoerna dengan Mas Kawin Sedemikian  Besar. Accessed at October 27, 2009. 16:30 PM. ______________. 2009. Perubahan Sampoerna di Tangan Philip Morris. Accessed at October 27, 2009. 16:22 PM. Taco, Tuinstra. 2007. A New Chapter. Accessed at November 2, 2009. 15:12 PM. Institution Central Board of Statistics, Indicator of large and medium enterprise, various years (the latest publication was in 2004) PT. HM Sampoerna Tbk. Annual Report 2005. Jakarta. 2006. __________________. Annual Report 2007. Jakarta. 2008. __________________. Annual Report 2008. Jakarta. 2009. Exhibit 1 NATIONAL CIGARETTE INDUSTRY MARKET SHARE 2003-2008 (in percent) |COMPANY |2008 |2007 |2006 |2004 |2003 | |Djarum |18. 0 |20. 4 |17. 2 |18. 26 |18. 71 | |BAT Indonesia |2. 4 |2. 3 |2. 2 |2. 54 |2. 86 | |Others |22. | |Batik uniform, black dress. |Batik uniform, black dress. | |Meeting date: 9, 17, 29. |Meeting date: 9, 17, 29. | |â€Å"Pawang hujan† when launching products. |â€Å"Pawang hujan† when launching products. | |Employee rather reluctant to talk with the boss ( Javanese |Employee more outspoken sharing their opinion ( Straight to| |preferred manners. |the point, provoked more sales-oriented, more creative, and| | |more initiatives with a global outlook. | |At managerial level, everyday conversations in English | | |People are encouraged to become more high-achiever, with | | |opportunity in career development, to branches of PMI in | | |another country. | Sourc e: SWA Magazine, February 6, 2008. Exhibit 3 SAMPOERNA ORGANIZATION STRUCTURE [pic] ———————– [1] Cited from company’s website; http://www. sampoerna. com; accessed at October 27, 2009; 16. 40 PM [2] Cited from http://berita. liputan6. com/ekbis/200503/97974/class='vidico'; accessed at October 27, 2009; 15:30 PM ———————– [pic] Source: Annual Report, 2005-2008 Figure 1. Sampoerna’s Net Income and Sales 2004-2009 We provide general recommendation to CEO of Sampoerna about building guiding coalition and anchoring new culture post acquisition of Philip Morris. Acquisition gets its objectives and makes significant results to organization. What makes it succeed? What should they do next in term based on their key success factors? DOSEN Dr. Ningky Sasanti Munir, MBA Ir. Setiadi Johar, DBA Soekono Soebekti, PhD Tjahjono Surjodibroto, MBA WIJAWIYATA MANAJEMEN ANGKATAN LXI STM PPM MANAJEMEN JALAN MENTENG RAYA NO. 9. JAKARTA [pic] Source: Annual Report, 2005-2008 Figure 2. Sampoerna’s Market Shares 2004-2009 ———————– 2

The Impact of Globalization on Food, Fashion, Film, and...

â€Å"The World Bank defines globalization as the growing integration of economies and societies around the world† (America.gov, 2006) For me the impact of globalization when it comes to food fashion, film music and dance is when like minded groups come together from all different political dynamics that create virtual communities across the world. Globalization and food can be looked at in various angles. Globalization with how we purchase food to how food safety and consumption is important. Americans care where they source their foods for not only safety practices but also concern about health problems related to farming methods. Over the years environmental concerns have grown with the quality of soil that yields food, pollution, air†¦show more content†¦Globalization and film can often be associated with the weaknesses and strengths of a film. Without film, different cultural would not be able to showcase their cultural through the movies produced. Film impacts me not only with action films, and romance but through cultural and globalization of different cultural and global beliefs and rituals. Film is an art that I greatly appreciate. Globalization in music is quite different as gender, trans-nationalism and sexuality change in each type of cultural music. Western music may inquire repertories from contemporary process through travel, migration, and imperialism. Sexuality and gender is often a large part of Western music (Dwinell, 2011). Cultural is expressed in different types of music. Listening to different types of music brings cultural to a person’s daily activities as well as even impact a person’s beliefs. Music impacts me greatly, because I am a well rounded individual who like pretty much all types of music minus Christian and Country. Globally individuals come together to support their music group. Music is an art; listening and appreciating culture through music is amazing. People are able to express themselves in music but also in dance. Dance through classical ethnic or cultural movements that can be fusion, classical, romance and love is expressed with some artist. Through globalization dance movements and drama is addressed with artist identity. (California,Show MoreRelatedSpending by university students has been known as a significant component of entire consumer900 Words   |  4 Pagesconsumer spending in the South Africa. According to() it is estimated that university students, i.e., full-time students registered in third year institutions, who signify about one-third of all students, spend more money on important items such as rent, food, clothes, cell phones, tuition, and books. Others spend their money on extras (Ring 1997). Spending by university students may be very vital to local societies because numerous residential institutions are big relative to the size of their mass communityRead MoreGlobalization And The Speed Of Globalization1726 Words   |  7 PagesThere has been acceleration in the speed of globalization in current years. Its scope has too widened past the realm of economies to involve the domains of cultural, political and social practices and norms. This powerful shove has been connected with far-reaching cost for economic well-being, political processes and social structures in countries across the world. The diverse parts of the entire world have actually become so co-dependent in so many respects that it is not possible any longer toRead MoreThe Globalization of Culture: Cultural Homogenization1707 Words   |  7 Pagesor way-of-life. With the dawn of globalization, however, cultural variety and distinguishing characteristics are vanishing; giving rise to a monoculture common to all . While this may be a harbinger of unity and relatedness among all people of the world, it also damages the unique cultural identities they once took pride in. This paper discusses the effects of globalization on culture, along with its positive and negative effects. Since the effects of globalization on culture are non-exhaustive, itRead MoreThe Influence of the Western Culture on the4363 Words   |  18 Pagesto see how do we recognize these system of symbols? The answer to this question is provided by Williams who says that culture can be judged or embedded in music, literature,lifestyle, painting and sculputure,theater and film and similar things (Williams, 1976). These dimensions are common to all cultures. In the foreface of the rapid globalization and the interaction in the past, these dimensions of various cultures are often influenced by each other. The following Paper discusses the influence ofRead MoreDoes Globalization Diminish Cultural Differences3759 Words   |  16 PagesGiorgia Frizzi, 23rd July 2010 Globalization, Localization, Glocalization Research Paper. Does globalization weaken cultural diversity or does it foster it? Effects of Globalization in Cultural differentiation 1. Introduction. As some of us may know, the term â€Å"globalize† started being used in the modern times. However globalization as an idea has been brought up since even before the 1500’s when people started forming connections between communities, and therefore creating forms of communicationRead MoreThe Social Construction Of Contemporary Youth Cultures2156 Words   |  9 Pages(i.e. information technology, communication, fashion). As we know, globalization is considered to be the process of ideas, goods and communication flowing cross-border with unprecedented speed, range and volume. It is regarded as the presence of the same lifestyles, products, consumption patterns, and cultural experiences across the globe, across many economically AF fluent or economically poor countries of the world. (Firat A F, 1997) This globalization and reproduction from markets and their productionsRead MoreCan Globalization Be Made For The Poor?3039 Words   |  13 PagesCan globalization be made to work better for the poor? Discuss with reference to at least one country in the developing world. Introduction Globalization is not a new concept. It is just advancing faster now a days, faster than ever before but it has been around hundreds or some may argue thousands of years ago. It has never had any single meaning nor had it has any definition without disagreement. It has always have different meaning to different people. Globalization is such an issue which isRead MoreAmerican Popular Culture and Its Impact in a Globalized World8501 Words   |  35 PagesAmericans, after all, did not invent fast food, amusement parks, or the movies. Before the Big Mac, there were British fish and chips. Before Disneyland, there was Copenhagens Tivoli Gardens (which Walt Disney used as a prototype for his first theme park, in Anaheim, a model later re-exported to Tokyo and Paris). Ââ€" Richard Pells 1. Introduction No matter what corner of the world, it is more than unlikely to walk up to an adoles-cent, mention the names Jennifer Lopez, MadonnaRead MoreGlobalization of Korean Popular Culture in Asia4150 Words   |  17 PagesGlobalization of Korean Popular Culture in Asia 1. Introduction Since 1990s, Korean Popular Culture has had a strong influence in Asian countries, including China, Hong Kong, Taiwan, Japan and Singapore. This new popular cultural phenomenon in Asia is called the â€Å"Korean Wave†, also known as hallyu in Korean pronunciation, which refers to the surge of popularity of Korean popular culture abroad, particularly in Asia(Kin 284). The â€Å"Korean Wave† is first coined in mid-1999 by journalists in BeijingRead MoreTo What Extent Has Globalisation Influenced One or More Aspects of the Culture in Your Country? Illustrate Your Answer with Examples1945 Words   |  8 Pagesincludes the expansion of Hollywood film, fast food and hip-hop music in many countries. The influence of globalisation on music is significant in China, especially for youth music. For instance, English words are used commonly in Chinese pop songs and Chinese rock and roll bands are developing; the music styles of hip-hop and RB have been adopted into Chinese pop son gs and have achieved success. In the first part of this essay, I will define the concept of globalization and then go on to discuss it in