For This Scholarly Activity Develop A Supporting Human Resou
For This Scholarly Activity Develop A Supporting Human Resource Hr
For this scholarly activity, develop a supporting human resource (HR) plan for an organizational strategy. Research a company that has undergone (or attempted to undergo) a shift in organization or culture within the past five years. This shift must have been a result of innovation. Some examples of companies that have gone through this change are Apple, General Motors, Marvel, Delta Airlines, Starbucks, Old Spice, J. Crew, CBS, Pabst Blue Ribbon, Nintendo, Converse, Lego, and Lacoste.
In a paper of a minimum of three pages (maximum of four pages) of text, describe the organization or culture before and after the shift. Has the shift been successful (e.g., made the company more profitable or influenced the employees to be more productive), or did the shift fail? Explain your reasoning. You are required to use at least one outside source to support your explanation. Your scholarly activity submission should be formatted in accordance with APA style.
Paper For Above instruction
Introduction
In the dynamic landscape of modern business, organizations continuously adapt and innovate to maintain competitiveness and relevance. Such transformations often involve shifts in organizational culture or structure, driven by the pursuit of strategic advantages or technological advancements. Understanding these shifts from a human resource perspective is essential for evaluating their success and sustainability. This paper examines the cultural shift undertaken by Lego, a company renowned for its innovative approach to toys and entertainment, to analyze how its HR strategies facilitated or hindered the transition and what lessons can be derived for future organizational change initiatives.
Organizational Background and Pre-Shift Culture
Before its strategic overhaul, Lego faced significant challenges in the early 2000s, including financial distress, declining sales, and diminishing market share due to increased competition and a lack of product innovation. The company's culture was predominantly hierarchical and product-focused, emphasizing manufacturing efficiency over creativity and employee engagement. Employees were primarily tasked with operational roles, with little emphasis on innovation or cross-functional collaboration. This internal environment cultivated a risk-averse culture that hindered the company's ability to adapt quickly to market changes.
The Shift and Its Implementation
Beginning around 2004, Lego embarked on an ambitious transformation aimed at reinvigorating its innovative capacity and aligning its culture with modern market demands. The transition involved a focus on open innovation, employee empowerment, and customer-centric product development. Legos' leadership introduced initiatives such as cross-departmental teams, innovation labs, and participative decision-making processes. These initiatives aimed to foster a collaborative culture rooted in creativity, agility, and employee ownership of projects.
HR strategies played a pivotal role in facilitating this cultural shift. The company revamped its recruitment processes to attract creative talents with diverse backgrounds. It implemented training programs emphasizing innovation skills, teamwork, and risk-taking. Additionally, Lego adopted performance management systems that rewarded creativity and initiative rather than solely operational efficiency. Leadership development programs were also introduced to promote a culture of continuous improvement and strategic agility.
Successes and Outcomes of the Shift
The cultural transformation at Lego yielded remarkable results, marking a significant turnaround in its financial health and brand perception. From 2004 onwards, Lego experienced a resurgence, achieving record revenues and expanding into new markets and digital realms like video games and movies. Employee engagement and innovation output significantly increased, with more collaborative product ideas and proactive problem-solving. The company’s ability to innovate, demonstrate agility, and adapt to changing consumer preferences underscored a successful cultural shift.
Supporting outside sources corroborate this success story. A Harvard Business Review article highlighted Lego’s strategic reinvention, emphasizing how HR initiatives in fostering creativity and collaboration were instrumental (HBR, 2018). Similarly, a Forbes analysis credited the company's shift to an employee-centric culture that encouraged innovation as a key driver of its renewed market dominance (Forbes, 2019).
Lessons Learned and Conclusion
The Lego case encapsulates how targeted HR strategies are vital to managing organizational culture shifts effectively. Key lessons include the importance of aligning HR practices with strategic goals, fostering open communication, and incentivizing innovation and collaboration. Additionally, leadership commitment to cultural change must be persistent and genuine to effect meaningful transformation.
In conclusion, Lego’s cultural shift demonstrates that a well-designed HR plan focused on empowerment, training, and performance management can successfully support organizational change. The company's experience underscores the critical role HR plays in nurturing innovative cultures conducive to sustainable growth, serving as a model for other organizations seeking similar transformations.
References
- Harvard Business Review. (2018). Lego’s Path to Relevance. Harvard Business Review. https://hbr.org/2018/11/legos-path-to-relevance
- Forbes. (2019). How Lego Rebuilt Its Business With Corporate Culture. Forbes. https://www.forbes.com/sites/forbesbusinesscouncil/2019/11/12/how-lego-rebuilt-its-business-with-corporate-culture/
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