Managing Change at Western Union Case Analysis

Managing Change at Western Union Case Analysis

Summary

Upon reviewing of the current issues management change facing Western Union it is indicative that the organizational change been undertaken by Christina Gold is likely to yield positive results. This is due to the numerous changes she is overseeing within the company which has to an overall change in the approach of doing business. This involves the major structural change of the Western Union from a product line organized company to an organization that is geographically aligned. Hence, putting in place all the required mechanisms for the company growth including employees attitudes and infrastructure in combination with Gold’s masterful reading the readiness of the organization are undoubtedly the driving forces for the management change. Hence, Gold’s leadership towards initiation of the organizational change design is highly creditable for the recorded progress of the company.

Underlying issues

In the process of undertaking structural design change at Western Union several specific issues came up such as the addressing of the challenges in the growth of the company while at the same time aligning the organizational structure of the company to its six core strategic focuses. Thus, Gold together with her six executives have opted for a structural change which is geographically aligned thereby being sensitive to other people and their cultures is of critical importance. Hence, flexibility in dealing with this diversity becomes inevitable in order to deal with every person effectively. Therefore, the adoption of a loose structure that is decentralized  according to the innovative organic theory becomes of vital significance in ensuring smooth and productive operation of the company. In addition, global prowess of the company is actually observed in the way it operates through its extensive agents network who helps in facilitating the company’s core business which is money transfers.

Recommendations;

I  recommend that the company does the following changes in its structural change strategies:

1). I recommend that the new products should first be managed by product managers who will oversee its growth up to a sizeable share of the market after which it should be handed over to the regional leaders to continue with the product promotion at regional level.

2).  However, my recommendation of the profit and loss responsibility is that, it should not be held upon and company leaders may it be the corridor leaders or regional leaders. This is mainly because the regional performance or corridor traffic are heavily dependent on external factors that are beyond the reach of Western Union. Hence, this responsibility should be narrowed to the flow of transactions between countries.

3). Moreover, the company should embark on an aggressive decentralization strategy at the regional levels by opening small offices in almost all the countries in which the company has agents. However, thorough awareness campaign should be done to assure the agents that the offices are not branches but meant to support them. This move will be feasible despite its infrastructure cost since it will help in leveraging opportunities for the company around the globe.

4). Hiring into new positions should however be keenly conducted in order to ensure  that the employed people have a global mindset and capable of acknowledging diversity.

5). A change in leadership culture will also be inevitable since it  will positively influence the entire working force. Hence, a training program for all the top managers will undoubtedly be crucial in ensuring efficiency and effectiveness of the work force.

References

Mitchell, J. (2005). Christina Gold leading change at western union. Western Ontario: Ivy Management Services, p. 1-15.

 

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