VRD Industry Change Management: An External Consultant View

Introduction to VRD Industry and Change Context

VRD Industry, located in Singapore, offers manufacturing services for components used in the automotive industry, supplying General Motors (GM) in the United States, Europe, and other American automakers. In the recent past, the industry expanded by exporting its products to GM in China, illustrating significant marketing growth. VRD Industry operates as a three-product divisional strategic business, located within the same business complex, encompassing three divisions: electrical and energy, automotive parts, and infotainment (Burnes, 2000, p. 15).

As an external change consultant for VRD Industry, several assumptions based on the problems experienced by the company serve as a framework for boosting its growth. These assumptions emerge from the group level, individual level, and organizational level of VRD Industry, indicating a need to develop ideas that improve performance and enhance competitiveness (Griffiths, 2003, p. 45).

Organizational Learning and Competence Gaps

The first assumption based on the problems experienced by VRD Industry is a lack of organizational learning and competence. This is observed at the organizational level, group level, and individual level. Organizational learning concerns primarily involve attempts to change or improve the capability and behavior of individuals or groups so they can adapt to a dynamic environment (Benn, 2003, p. 78). Firms such as VRD Industry lack organizational learning due to an inability to create, acquire, and transfer knowledge in ways that reflect new insights. The industry encounters conflict from the top level down to the lowest level.

This lack of organizational learning affects the competence of the firm, inhibiting its ability to share created visions and allow people to challenge existing rational models (Burnes, 2000, p. 15). At VRD Industry, this deficit led to the emergence of conflicts: Lee wanted a more responsive company, a more efficient production process, and a cooperative team, but faced opposition from the divisional managers. Organizational learning, as a barrier to firm achievement, helps people in a particular organization discover and view problems within a coherent framework. This requires questioning of the current system and evaluation of anticipated challenges (Genus, 1998, p. 67).

Organizational learning as a process within VRD Industry will help equip leaders and managers with the knowledge needed to administer their duties, thereby allowing for greater transparency and a well-coordinated workforce. This in turn boosts worker morale and ensures stronger growth in the manufacturing of automotive parts worldwide. Individuals equipped with the necessary skills can transfer acquired knowledge to groups or specific colleagues, improving efficiency in service delivery.

Leadership and Management Competence

Another problem affecting VRD Industry is poor or incompetent leadership. Leaders who are assigned tasks but fail to perform to the required standards — as observed across VRD's organizational, group, and individual levels — ultimately produce internal conflict and a decline in productivity (Cummings TG, 2011, p. 23). Competent leaders and workers, by contrast, possess the skills needed to deliver quality service to customers, which leads the firm to acquire prestige and higher standing globally.

Within VRD Industry, competence falls under several bodies dealing with different areas of the manufacturing process. These include operational competence, organizational competence, and technological competence. The top management of VRD Industry comprises eight senior managers drawn from the main head office, followed by a middle management layer of approximately twelve managers stationed at each factory, and finally six functional managers at the lowest managerial level. All of these managers must be competent in their respective roles to ensure sufficient and effective service delivery (Cummings, 2007, p. 45).

VRD Industry has historically struggled with managerial incompetence. For over thirty years, a manager named Frank maintained a steady and loyal team. After Frank's retirement, less capable managers took over. May Wong, for example, was assigned to assist manufacturing and divisional managers in implementing a change agenda. Within a few weeks, the company experienced a slowdown in production caused by conflicts between teams and divisional managers.

Under a competent management model, a manager possesses the ability to apply interpersonal skills and communicate intentions to workers in a clearly understood manner. The ability to motivate and influence workers toward shared goals helps the entire workforce understand the direction of the industry. Managers should organize work so that employees understand their specific roles, thereby improving skills and work design. Managerial competence also fosters a positive working environment regardless of employees' racial or ethnic backgrounds (Daft, 2001, p. 132).

Conclusion and Recommendations

As an external consultant, there is a need to put several measures in place in order to enhance the growth of the company on a broader scale. This helps the company produce quality products, making it more attractive to external markets and investors. With these practices in place, the company's achievement can reach its maximum production level, which corresponds to higher profit attainment.