Organization Development & Change Management

Executive Summary

During the past, Sony had produced many products that highly accept and admire by public. Sony also is one of the leading manufacturers of electronic, video, communications, video game consoles, and information technology products for the consumer and professional markets. Nowadays, consumer electronic market share, product quality demand, the usage or benefit from the product, technology enhancement. That is the core areas for an organization to consideration. A growing organization, a new assignment and changing customer needs may all be encountered by today. Even Sony is the leader of consumer electronic, to be successful, it must be able to accommodate to change. Sony is one of the multinational companies around the globe. The company also made it on top and made a remarkable number of sales and total revenues. On the contrary, for the company also have to make change so that it will remain competitive and strong in the market. The project that had been proposed is the FeliCa memory stick in the mobile phone of Sony which is the Sony Ericson. In this manner, the process of saving and storing the data can be done with the aid of the mobile phone. The project has an initiative of making the life of the subscriber to be easier and efficient. Before entering this change, there are many factors to consider as the culture, the employees, the environment, and the organizational change.

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A. History about Sony Sony Corporation commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues Sony is one of the leading manufacturers of electronics products for the consumer and professional markets. Sony Corporation is the electronics business unit and the parent company of the Sony Group, which is engaged in business through its six operating segments Consumer Products & Services Group (consumer electronics, game & network services), Professional, Device & Solutions Group (B2B products & services), Pictures, Music, Financial Services and Sony Ericsson. These make Sony one of the most comprehensive entertainment companies in the world. Sony's principal business operations include Sony Corporation (Sony Electronics in the U.S.), Sony Pictures Entertainment, Sony Computer Entertainment, Sony Music Entertainment, Sony Ericsson, and Sony Financial. As a semiconductor maker, Sony is among the Worldwide Top 20 Semiconductor Sales Leaders. Its founders Akio Morita and Masaru Ibuka derived the name from sonus, the Latin word for sound, and also from the English slang word "sonny", since they considered themselves to be "sonny boys", a loan word into Japanese which in the early 1950s connoted smart and presentable young men.

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B. Understanding Organizational Development and Change Management

Organization development is an effort, planned, organization-wide, and managed from the top, to increase organization effectiveness and health through planned interventions in the organization's processes, using behavioral-science knowledge; it is a planned system of change. As the definition suggests, OD is planned, which means it is a long-range approach to improving organizational performance and efficiency. Improving performance includes improving competency among employees. It is also organization-wide; it focuses on not just few level of the organization but on the total system and is supported by the top management. OD's goal is to improve the organization, to make it more efficient and more competitive by aligning the organization's systems with its people; its uses a discipline that combines research and experience to understand people, business systems, and their interactions It is very important that organizational change takes place in a firm to be able to adapt to the changing environment and to adopt techniques or models in order to solve problems. The basic approach to OD is organizational diagnosis, which is used to address the problems in a company. Organizational diagnosis is the process of understanding a systems current functioning and provides the information necessary to design change interventions. It therefore involves identification of a model for understanding the organization. There are common steps in diagnosing an organization. First is to develop a sense of how organization should ideally function, requiring a common vision to guide the organization in change. Second is to choose an organizational model that reflects the organization. Aside from organizational model, there are also other techniques used by other successful companies that helped them in identifying and preventing problems. The third step is to compare the actual process of the organization to the model used. This can be done by collecting information about how the organization functions. With the collected information, the problem areas or functions can now be identified and the strategies for bringing about changes can be developed.

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C. Sony Management Change

i.

Vision and Prescription for Change for renewed organization

Sony is considered to be one of the multinational companies in the world. But, for every success stories in the field of the business, it is accompanied by the changes which are currently and future planned. Part of the changes vision in the organization are continues provision of services to the needs its customers that must be understand by the administration, it has also the mission of providing the advance and up to date technology as well as to influence the importance and the key elements of applying the multi media. It has also an aim of adapting to the environment where it was suited. Apart from, the proposed structure plan and the structure is highly environmental friendly and must have an ecological efficiency. In the proposed project of the company, its vision also is to use devices which can saves files for the use of the Sony products as the Sony Ericson. In this manner, the company will have to be known in the updated field of saving files and to build its own brand upon the introduction of the product to the public. The company is also aiming to be on top when in the phones with use of saving files. This can is also proposed and introduced in the public to all the locations of the company for the betterment of its services in its consumers. In this regard, the products of the company are added and buying the mobile phone with the memory stick gadget can be in the form of package deal. ii. Direction and Scope of Change

In the implementation of this kind of project, the company needs to build its own brand technology so that the new product and the new technology can be globally recognized as its launched. The implementation of the using the chip the memory stick of its products can also adds profits and revenues to the company. This can also made the mobile phones of the Sony Products be accessible and has many uses of not only using in texting and calling but trough saving files as well. The use of the Felica in the Phone saving files can also added in making the life easier to its clients and customers and for promotions of joining to the fast technology in the world. In this regard, the company can also surpassed
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its competitors for diversifying its products and services as well being the top manufacturing products of not only in the electronics but also in the storage devices. It has also the mission of being the only company who offers services for using one card in the in the public consuming, in access, works and others and finally for the storage devices. In the implementation of this project, the customers can have a more convenient and easier life living. In this change management or the proposed project, it covers all the change of the lifestyles of the customers trough subscribing in memory stick. This must also be implemented in the internally for all the locations and products of the company. iii. Speed of Change

The proper and precise research and development can be the first step for the implementation of the quality services. The change on the proposed project to the Sony can be useful and make it fast to implement trough hiring the expert in the field of information technology. This can also be done as soon as possible to come up and be up to date in the changing world. After the hiring, the development and the processes can then be followed trough making and testing the products before it was introduced to the market. The marketing can also be done in the certain country and then be followed to market internationally. The reengineering can also be done by following Lewins notion and its three (3) step model. Freezing or the surpassing of the inertia and habits in the certain organization which is applicable in the Sony trough overcoming its current services offers and added an extra features which can be use in their daily lives as the FeliCa memory stick in the mobile phone. Moving new system change as the projects aims conquers the world of mobile phone with the use of the memory stick and change in the way of mobile phone can experience aside form that there is also a change in the usual styles of using the card which is the file storage

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Refreezing the change can last which can experience by the company as introducing this product which can last for many years and can also be versatile which it is still open for innovation D. Proposed Actions

i. Leveraging Change The FeliCa is developed by Sony which is a contactless Integrated Circuit card that can allow the user to have an easy and convenient life. The card allows to send or even received data in a high speed security but also hard to imitate. It is also use in the ticket for the train, for the point card or as the membership card, can also use as an access pass, a wallet which is electronically recognized, for the ticketing and for the e-trading or in the e-commerce. It had been notably recognized that the card is flexible, has a multiapplication, has the security features, and it can be use in the contactless manner. Therefore, it is time for the developer to have an innovation to its products as the FeliCa will make additional features in its services which is the use of the product in the memory stick as the storage data or use for saving files. This can be presented in the public after the critical analyses, testing, and evaluation of the product. The product can be tested by the subscriber of the Sony products as the Sony Ericson so that necessary can be done. This will be a new to hear for the customers and support can be expected to them. This is as well important to the Sony to have an edge over its competitors and for them to leverage its services products. This product is also rational to give justice and solution to continue environmental and development change. ii. Renewing System and Structure Before taking into the account of changing the management of the organization, it is important to have a review on its organization culture. The organizational culture takes all of the experiences, the attitudes, the values, and beliefs of the organization. This is important in the organizational change because this is the bridge for the employees on how to act and the ideas which are suitable in the organizational members upon achieving
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the goals. In the case of the Sony and the introduction of the FeliCa memory stick use in the mobile phones, the employees must be aware of the organization and its culture and the implementation of the company must be in accordance to the plan and to the level of maturity of the company. The major function of the proposed plan is to have a diversification on the products of the company and to have been able to recognize its products internationally. It had been known that Sony is Multinational Company which operates in the whole world, therefore, it is the major source of the company to be also is recognize the new product in the market scene as influence by the quality of the products and the image it had been portrayed for the past years and supported by the consumers. In this manner, the change and the model had been selected in order for the company to have an innovation for its products and for the company to recognize also in the field of storage devices. iii. Tailoring Culture For the company to achieve a better result in the organizational change it has been driven, then, there should be a huge support on the administration of the organization. The team should be in the favor of the change of plan of the organization and it should also be in accordance to the plan of the majority. In the case of the Sony, it is not only to define or to have a huge change but only a few and short change must be done which is only the additional feature of the FeliCa device. To the get the culture of not only the organization but also the entire population of the customers is also important due to the fact that these people are the key indicators for the success of the company. This can also be done first by the company before it is implemented so that it can get the ideas and the behaviors of the consumers in the implementation of the new products. The products are also managed by the commitment of the top management due to the fact that they know the issue much and they are the indicators in the organization. The top management then must tell to its affiliates and to its subsidiaries of taking the risk on the management change for the long term betterment. This product will enable Sony to stay competitive and for the improvement of the products offers. Therefore, the managers must assess all of the areas involved before entering the area of the change management. The management must also

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aware in the culture changes happened in the internal and external of the organization and their response in the launching of the new product. iv. Overcoming Resistance

Change is indeed a risk taking. There is no assurance that the change to implement is supported by the customers and that the change is the key for the development of the product and the company. In the change of the organizational management of the Sony, it should set out all of the stark and the benefits of the project had been seen not only to the organization but also to the public and the cost and the expected value had been shown. The past organization as well had been recognized as the presidents and up to the simple staff which brought the company on top. In the continuing mission of the past managers, the company serves this as the legacy on the future development and innovation to the products of Sony. Believing in the change, to the idea and most important to oneself is enough reason to overcome resistance. The propose project is directly opened up and shared in the top management and to the public in order for the company has open communication and information so that it can maintain good faith. The management will also work for the betterment of everyone, this means that the change is not only all about cost but it has also benefits as the new project of Sony which is benefitted for the company and for the consumers. This will enable the consumers will realize the quality of the products, the company, the services and life in general. It is important to engage in the emotional and in the rational level of the people commitment. E. Leadership and Communicating Change For the changes of the organizational management, it is as well accompanied by the changes in the leadership and in the communicating. The proposed project is not going to change the entire leadership but some of the operators which as the exact knowledge to the company, to the filed of the storage file devices and to the maintaining of business. The change in the Sony is done to surpass the obstacles and achieved the breakthroughs in the company. Aside from that, it can add growth and solidify the gains and profits of the company added to the maintenance of the markets being achieved and for the

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assurance of the profits and gains. In this manner, the old leaders can also suggest to the development and to the improvement of the product so that there is an innovation for the certain product. The leaders of this project will assess all of the aspects including the cost, the materials to be used, and all of the issue regarding the change of the management In the current scenario, the company made to have a communication base on the top managers. This had done trough corporate meeting which will talk about all of the plans and the developments of the company. In this manner as well, the communicating process is only depends on the opinions of the top. On the other hand, the future communication scenario will also focus to the employees and to the customers as well so that there are more opinions to get from and there are also many people that can influence which can give more of ideas to the project that are useful and advantageous.

F. Conclusion The reputed brand name is one the Sonys strength, but on the other hand, many competitors start to see Sony as their target and main competitor, which will inflict various threats against Sony. Sony believes in changing the world by changing itself. The vision of Sony is to see the developed world and so it is trying its best. Aside from this, Sony also concentrates on improving itself. They collect Voice of Customer (VOC), which directly reflect the responses, expectations, or suggestions from end-users. It could be observed that Sony is positively dealing with its competitors, through learning from failure and looking for room to further improve. Such strategy helps minimize the probabilities that their customers would turn to other competitors. It aims at retaining its present customers and keeping their Number 1 market position.

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