Evaluating Pressures of Changes

Answer

Evaluating Pressures of Changes

Introduction

Organizations operate in an environment, hence the need to remain flexible to changes to attain success. Environment comes with challenges/pressures, opportunities, and threats that management should be privy to for adoption of suitable remedies. This paper deliberates on the environment and organizational pressures driving organizational change at US Cellular.

Overview of US Cellular

US cellular operates in the telecommunication industry providing a range of telecommunication products and services to its clients. This industry plays a critical role in the growth of the economy as millions of people use their services and products on daily basis.US cellular is one of the telecommunication companies in the US providing an array of services to its clients. The company which currently, stands in the fifth place in terms of provision of wireless carrier in US provides national network coverage as well as innovative designs to meet the customer experiences (US Cellular, 2017). The company was founded in 1983 (US Cellular, 2017).  US Cellular headquarter is at Chicago, IL where administration functions are undertaken (US Cellular, 2017). It serves approximately five million customers and has got 6200 associates (US Cellular, 2017). In 2016, the company managed to raise revenue of $3.93 billion (US Cellular, 2017).  It has also set up various customer care canters in various locations including Cedar Rapids, IA, Knoxville, TN, Tulsa, OK, and Waukesha, WI, to enhance service delivery (US Cellular, 2017). The company provides high quality networks ranging from fourth generation long term evolution network, as well as code multiple accesses (CDMA) speeds cutting across cities and rural areas. In 2014, the company was named third in four year row as J.D Power and Associates customer Champion demonstrating its value addition to the lives of millions (US Cellular, 2017).

Business model of US cellular operates on premise of dynamic organization focusing on leadership experience that creates passionate with the associates (US Cellular, 2017). Associates are expected to deliver best customer services through customer advocacy that translates to superior business results. The leadership ensures associates are well trained and equipped to make freely informed decisions on customer behalf. Core values acts as a guide and include, respect for associates, customer focus, empowerment, ethics, pride, diversity and winning.

Environment and organizational pressures

Changes in organizations are inevitable because of the ever-changing environment of doing business (Oftelie, 2014). Changes in the political, technological, socio-cultural and legal environment ignite pressures to entities to make changes for them to remain relevant and competitive. Businesses, main goal is to make profits, but at the same time they have to meet certain terms and conditions when strategizing on achieving profits and remaining competitive (Oftelie, 2014). Some of the issues they must consider are the corporate social responsibility such as safeguarding the environment and preserving the cultural norms and conducts of people. They as well must operate within the established legal systems set.  All these factors are driving change in US cellular as it must ensure that it meets every concern to become successful. For instance, one of the pressures the organization has experienced is to sell itself.  This pressure emanated from one of the major investor, also billionaire Mario Gabelli who believed the company was struggling (Bosnjak, 2017).  The company shares have stagnated at $38 for some time and, Mario believes that this option will help the company to earn twice its struggling stock. The company management lead by Carlson Family who holds 10 percent of the shares of the company have, however remained adamant concerning the idea (Bosnjak, 2017).

The company is also under pressure from other similar companies providing the same products and services to its customers. The competition has intensified over the years making the company to invest more on its customer care services (Yang, 2017).  This pressure comes from companies such as Verizon, T-Mobile, AT&T, and Sprint (Yang, 2017).  These companies are giants and have solidified their customer base and continue to eat into US Cellular market.

The company as well faces pressure from some of its employees who feel that it has poor human capital management strategies (Bosnjak, 2017). Some of employees have expressed discomfort and discontent with which the company treats its personnel. The terms of services are poor compared to other companies dealing in similar lines. Some have complained about low pay, lack of recognition, and failure to hire staffs even after working with them for quite some time. These pressures are affecting the viability of the organization, especially the key leadership.  Reducing share prices and increasing demands for sale of the company is causing tension among its investors. The company is therefore, likely to reduces or slow stream of returns as there is suspicion on the next move the company might take.

Types of organization changes

These pressures would definitely push the US cellular company to make some changes that would ensure its smooth operations. First order changes also incremental change involves adjustments in the processes, systems and structures, but does not involve fundamental changes in the corporate identity, core values and strategy (Tibergien, 2017). These are changes aimed at supporting organization continuity and order. Because of the poor performance, the first order change that may be expected in US cellular is changes in the key leadership and management. The organization may consider changing some of the key managers in hope to ensure that fresh ideas are welcome to place the company back on its profitability track.

Similarly, second order changes are expected. These are changes often known as discontinuous, also transformational as they may alter the entity at its core. These changes aim at transforming the nature of the organisation, but not developing it. On this premise, the organization may agree to sell or amalgamate with the other companies performing exemplary to boost their business and strategies. Such an act will help the company benefit from the already existing goodwill of other companies that it might decide to partner with. It as well might decide to sell it and begin a new company that will be well refurbished. Similarly, the company may institute changes in its recruitment and training programs to ensure that it retains its competent employees.

Conclusion

It is prudent for organizations to appreciate environmental changes for their success. Flexibility becomes very critical core value in this current world of doing business. US Cellular has to embrace the pressures and use them as an opportunity to transform itself and make itself marketable to the customers.  Adopting appropriate strategies, policies, working with every focused minded plays and remaining flexible to new ideas is critical for achieving maxim success.