STC Case Study

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Yale University *

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MISC

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Management

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Nov 24, 2024

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docx

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6

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1 SCT Case Study Name Course Institution Date
2 Conditions precipitating the need for cultural transformation at STC A need for cultural transformation at the Saudi Telecom Company (STC) originated from a number of conditions. But first and foremost, lack of efficient leadership at STC with the CEO making most of the decisions. This affected the organization's potential for innovation and growth in that this is was a decision-making that was adversely centralized. Employee development needs a conducive culture which was lacking at the STC and this affected the company in meeting its set goals. Other factors that could have created the need for change in culture in the organization are resistance to change, lack of engagement of employees, processes that are considered outdated, and failure to follow the dynamics of the market. Customer needs, advancement in technology, and competition in the industry seem to evolve every now and then, and therefore organizations need to adapt to these changes. Therefore, failure to adapt to these changes may lead to the need for a transformation of an organizational culture ( Biyari & Al Nasser, 2019 ). Resistance to Cultural transformation at STC and strategies to overcome them Cultural transformation at STC faced resistance from a number of employees, those of whom were not aware of the full potential of the benefits and objectives of the proposed changes and policies. When employees sense the uncertainty and fear of the impact of a proposed change on their routines of work and the security of their jobs, it's only certain that they would resist such a change or a transformation. In order to overcome resistance that arises from a proposed change, various strategies can be employed by the organizations. First, top management needs to have clear communication about the proposed change since it is vital. This gives leaders the opportunity to talk to their subordinates and give them a reason as to why a change is needed, the benefits that the change would yield, and of course how the change is in line with the organization's mission.
3 When employees are involved in the making of these decisions as well as addressing their concerns, it is highly possible that it would decrease resistance levels. Top management also should consider providing support and training to help employees adapt to new changes. In addition, rewarding and recognizing those employees who adapt to the new changes, would create a positive atmosphere and challenge others to follow suit ( Biyari & Al Nasser, 2019 ). Effective leadership strategies and actions for transforming STC Leadership strategies that were effective at STC for transformation included providing training for leaders which was aimed at developing efficient leadership and decision making that is decentralized. Biyari’s leadership was exceptionally pivotal in driving the transformation of culture. He was an example to the others and set the company’s direction. Generally, leaders can bring about change by: i. Leading by example: When a leader demonstrates his commitment, others can easily follow in their footsteps. ii. Clear communication of the vision: Helping employees understand the vision of the company helps them also understand the need and purpose of the change. iii. Involve and empower employees: Emphasize to the employees to contribute in the decision- making processes and factors that are innovative, this would encourage ownership of change. iv. Providing resources and training: You want to show employees you care by equipping them with the knowledge and skills they need to adapt to the proposed changes is essential. v. Measuring progress: Give employees time to adapt then regularly assess the impact of change and make adjustments as needed so that the change affects the work environment positively. Organizations' health measurements and how they can transform company culture Organizational health measurements are performance key indicators that are used to assess an organization's overall effectiveness and well-being. These indicators include a variety of organizational
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4 aspects which to mention a few include engagement of employees, effectiveness of leadership, communication, and culture. They can be used to transform the culture of a company by: i. Assessing the company in order to identify areas for improvement ii. Setting benchmarks iii. Creation of accountability iv. Progress monitoring Al Nasser's leverage to move the company forward Al Nasser can leverage the following aspects in order to move the company forward. First, leadership training is to be continued in order to develop leaders who are efficient and who can improve making decisions and innovations, this is applicable to all organizations. Encourage teamwork to make decisions that would improve agility and responsiveness in a business environment that is rapidly changing, this would benefit a number of companies ( Biyari & Al Nasser, 2019 ). Ensuring a clear communication channel and engaging with employees enhance the work environment and improve productivity. An evaluation of employees needs to be consistent in order to gauge their development and company culture. This helps maintain company goals, all sectors are relevant here. Mergers, acquisitions, and digitalization Forward-looking initiatives like mergers and acquisitions (M&A) and digitalization help in the transformation of culture in organizations. M&A is able to bring new perspectives and practices, which needs a harmonic integration of culture. Digitalization would normally focus on a culture that is more technology-centric. To ensure a cultural transformation that is successful in these cases:
5 i. Communication of the vision: Clear state how M&A or digitalization is in line with the organization’s goals and culture. ii. Culture merge: combine the good features of both cultures while making sure the traditions and strengths of each are respected. iii. Training: Equipping employees with knowledge, skills, and tools is vital for a new digital environment. iv. Continued assessment: Get to know how the M&A or digitalization has impacted the culture and necessary adaptations. Maintaining momentum and institutionalizing a cultural transformation In order for a company to maintain momentum and institutionalize cultural transformation, they should first, have a leadership that is committed to the course of the company. It is important to have leadership that supports the employees while upholding the vision of the company and consistent communication is important. In addition, employees should feel a sense of being involved that is in participating and providing feedback that would help in culture change ( Biyari & Al Nasser, 2019 ). Companies need to continue training their leaders as well as employees so that they are well- equipped with skills and understanding of the new culture change. Regular assessment helps monitor the health of the culture and progress so that necessary changes are eased. Top management should recognize and reward those employees who adapt quickly to the changes so that it helps create a positive environment for others to follow suit. And lastly, the new culture should be included in all the operations of the company. It is worth noting that cultural change is a long-term perspective and continuous journey and therefore not a one-time event.
6 Reference Biyari, K., & Al Nasser, N. (2019). Transforming Culture in the Kingdom: How Saudi Telecom Focused on People to Compete in the Digital Age. Retrieved from https://itig-iraq.iq/wp-content/uploads/2019/10/Transforming-Culture-in-the-Kingdom-STC.pdf
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