This paper discusses how the concepts and theories learned in this class apply to Maha Chemicals Asia (Mahachem). Mahachem was established in 1975. The brand is committed to sustainable services and solutions in equipment and chemical market specialities in Asia (Southeast Asia, South Korea, and China). Mahachem began as a distributor of raw paint materials but has grown to become a solutions and chemicals provider with at least 188 specialists and experts in eighteen offices across 11 Asian countries. The company has headquarters in Singapore and strives to satisfy customers through digitalisation and innovation.
Topic 1: Business Structure that Aligns with Environment and Strategy
Organisations must align their structures with the environment to make better and sustainable strategies. Lecture 7 identifies cost leadership and differentiation as the main generic strategies that organisations can use to ensure their structures and strategies respond to environmental changes (Wong, 2021). Differentiation implies that an organisation develops innovative products/services unique to the target market. On the other hand, cost leadership emphasises internal efficiency. The information shared in Lecture 7 shows that organisational structures should foster internal freedom and flexibility to make organisations more adaptive. For instance, functional structure is valuable when an organisation operates in a predictable and defined setting (Wong, 2021). The central message from Lecture 7 is that companies should ensure a fit between structure, strategy, and environment.
From a structure, strategy, and environment perspective, Mahachem aligns its strategies after examining the external environment. The fundamental logic from Lecture 7 is that the business environment should bind a firm’s strategic options. In this case, Mahachem has a robust sustainability policy that aligns with market demands for sustainable products and services (Maha, 2023). Mahachem recognises the relevance of sustainability globally and leverages innovation and technology to develop sustainable solutions. The company strives to attain sustainability in 80 per cent of the solutions it provides by 2025 (“80 by 25” goal) (Maha, 2023). For example, Mahachem understands chemicals are threats to the environment despite being essential to humanity. As such, it developed Ecoori, a green chemistry concept to guarantee environmental sustainability.
Mahachem aligns its structure, environment, and structure to respond to unfavourable conditions. Kim and Mauborgne (2009) hold that organisations should embrace a reconstructionist method and adopt a strategy that reshapes industry boundaries. Despite facing the technological disruption threat, Mahachem invested in digital transformation to expand its brand and engage customers. The digitalisation strategy focused on developing mobile applications for quoting, tracking purchase history, and inspecting inventory (Kan, 2019). The company acknowledges that the industry is vulnerable to technological disruptions that can affect its business model. As a result, the company always finds new skills, solutions, and technologies, positioning itself as a trusted brand. Besides, it creates value for clients through e-commerce, e-services, and Chabot. In 2015, Maha embraced the Business Excellence (BE) model, which helps it identify gaps, implement lasting solutions, and assess if the gap has been reduced (Kan, 2019). Maha expertly demonstrates how companies should use their resources to achieve strategic alignment.
Topic 2: Managing Planned Change
Kurt Lewin’s change model is a valuable tool that organisations can use to manage or navigate change. Cummings et al. (2016) argue that Lewin’s unfreezing-stabilising-refreezing change concept is still highly relevant today. Lecture 7 outlines how organisations can navigate change using Lewin’s model. The framework has three steps: unfreezing, changing, and refreezing (Wong, 2021). Unfreezing involves communicating why change is needed. Completing this phase entails building good relationships with the stakeholders involved, helping others understand why present behaviours are ineffective, and reducing change resistance. The second phase, changing, gets managers and workers to change their work practices and behaviours (Wong, 2021). Here, change leaders implement more effective and novel behaviours. Finally, refreezing institutionalises or embeds the new changes to organisational culture. Change managers achieve this by providing support, using positive reinforcements, and promoting acceptance of new behaviours.
Change is a shared strand which all organisations experience regardless of their industry, age, and size. Mahachem has implemented several changes successfully over the years. For instance, it initiated its digital transformational journey, adopted the BE framework, and launched new initiatives to attain its goals (Kan, 2019). In 2021, the company started classifying its chemicals as “less toxic,” “made from recycled or bio-based materials,” or “conventional” to achieve its “80 by 25” goal (Leow, 2023, para 11). As the company prepares for more changes, it can employ Lewin’s model to ensure they are successful.
Mahachem must continuously unfreeze its systems to ensure the staff provide innovative solutions to achieve its sustainability agenda. The company can do this by reducing restraining forces that can lower the motivation to provide sustainable solutions and enhancing the motivating powers that encourage the staff to challenge the status quo (Deborah, 2018). Maha must ensure the staff dynamically participates in identifying problems and recommending solutions to ensure they are receptive to change. For instance, Maha can use Lewin’s model to address the gaps identified using the BE framework. After preparing the people for change, the organisation should implement the intended change. During the change or transition phase, people resolve underlying ambiguities and adopt better solutions (Deborah, 2018). Here, the organisation should build a workforce that believes in new paths by moving away from undesirable practices. Once the change is implemented, the organisation must ensure the new equilibrium is sustainable through refreezing. This can be accomplished by using rewards to reinforce and institutionalise new outlies.
Topic 3: Attracting an Effective Workforce
Companies must attract and retain a highly talented workforce to consolidate their competitive advantage. Research has shown that competing in the global market requires strategic investment in attracting highly qualified individuals (Minghua, 2022). Undoubtedly, a firm’s workforce is an important determinant of success. Lecture 8 identifies the activities involved in attracting an effective workforce: HR planning, recruiting, and selecting (Wong, 2021). These activities are related and help attract candidates who can become valued, satisfied, and productive employees. Attracting an effective workforce begins with HR planning. HR planning predicts the number of new employees needed to fill existing or expected vacancies (Wong, 2021). Recruiting combines different activities tailored to attract qualified job applicants, while selecting entails choosing the best candidates to join the existing workforce. Training contributes to skill development through activities such as on-the-job training, self-directed learning, coaching, mentoring, and classroom training.
Maha has always focused on attracting talent to accomplish its goals. The company recognises that attracting reliable human capital is the backbone of fostering close relationships with its customers and suppliers (Kan, 2019). Maha can attract an effective workforce through HR planning, designing recruiting activities, and establishing selection procedures to hire highly qualified personnel. HR planning is crucial in meeting the organisation’s current or future talent demands as it grows its business (Ellinger & Svendsen, 2021). Thereby, Maha must develop a framework for forecasting HR needs and matching applicants with expected positions. In order to ensure successful HR planning, Maha should know how emerging technologies affect work systems. Again, it should evaluate its turnover rate to identify the best ways to avoid it. These are essential components of HR planning.
Recruiting involves practices or activities that communicate applicants’ characteristics to attract the right people. Today, recruiting depicts talent acquisition, reflecting the relevance of human capital in organisational success (Daft & Marcic, 2009). Policies like promote-from-within or internal recruiting can help Maha create an effective workforce. External recruiting can be improved through online recruiting, advertising, and using the services of private employment companies. Successful recruitment exercises should include approaches like assessment of organisational needs, job previews, legal considerations, and other modern recruitment methods (Daft & Marcic, 2009). After designing recruitment activities, Maha should select applicants whose values align with its strategic goals. During selection, it is necessary to assess applicants’ attributes to ensure they fit with job demands. Selection methods include application forms, employment tests, and interviews. Maha must ensure its HR planning, recruitment, and selecting policies are up-to-date as it expands.
Topic 4: Developing an Effective Workforce
As the backbone of modern organisations, employee accomplishments dictate organisational performance or success. Therefore, organisational leaders must provide employee training and development opportunities to enhance their capabilities, skills, and knowledge. Notably, workforce capabilities are the foundation of a company’s competitive advantage in contemporary markets (Rodriguez & Walters, 2017). Topic 4 in Lecture 8 outlines approaches companies can use to develop an effective workforce, including employee orientation, training, and performance appraisal (Wong, 2021). Orientation helps employees familiarise themselves with their colleagues, jobs, and other organisational aspects like policies, procedures, and values. Organisations can also use computer-based training to develop an effective workforce. Performance appraisal observes and evaluates employee performance, records the assessment, and provides constructive feedback (Wong, 2021). Approaches used to appraise performance include performance review ranking systems, behaviourally anchored scales, and 360-degree feedback. It is essential to avoid halo effects and stereotyping when providing feedback.
As an organisation that aspires to achieve success through innovative and sustainable solutions, Mahachem is dedicated to developing an effective workforce through training programs. Rodriguez and Walters (2017) contend that training and development initiatives allow employees to influence organisational outcomes positively. In line with the organisational mission of enriching lives, Maha has a Go On Learning Forever (GOLF) program that encourages lifelong learning among its workers (Maha, 2023). The program helps employees unlock their potential by gaining life and work skills to achieve their professional and personal goals. Lifelong learning contributes to professional growth, success, and adaptability. With this in mind, Maha offers a Graduate Talent Development program designed to assist those seeking opportunities to develop leadership potential and commercial skills. Thus, workforce development is a part of Maha’s culture.
As Maha continues to develop its workforce, it must design a comprehensive orientation policy to promote individual-organisation fit. Employee orientation helps new hires familiarise themselves with the organisational aspects needed to excel in their new positions. Hina (2014) argues that orientation should be the first step in developing an effective workforce. It cultivates a welcoming attitude promoting loyalty. It also introduces new hires to the organisation’s structure, standards, and culture (Hina, 2014). Thus, Maha should include suitable orientation activities to retain and motivate employees, lower turnover, improve morale, and increase productivity.
References
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