Strategic Management Question

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Question 1
The change model that I chose is the Satir Change Model which was developed by
Virginia Satir a therapist who developed a model trying to map out the manner in which
individuals experience change.
The model has the following stages:
1. The Late Status Quo
2. The Foreign Element
3. Chaos
4. The Transforming Idea
5. Practice and Integration
6. The New Status Quo
Stage 1 *ƒ*…½V The Late Status Quo
The Late Status Quo stage is the familiar state of affairs where individuals are usually well
within their comfort zone. This stage is characterized by familiarity, comfort, established
patterns, relationships and routines. The stable environment gives individuals a sense of
belonging and identity. Individuals know what to expect, how to react, and how to behave.
The catalyst for change is the introduction of a foreign element.
Stage 2 *ƒ*…½V The Foreign Element
A foreign element can be any factor that significantly impacts the status quo. Once the
foreign element is encountered it invokes a response, since it threatens the stability of the
familiar, well established environment.
The most common reaction to the introduction of the foreign element is resistance. Most
individuals resist by denying its validity, avoiding the issue, or blaming others for the
introduction of the foreign element.
Stage 3 *ƒ*…½V Chaos
As the foreign element disturbs the equilibrium in the environment various manifestations
of chaos set us such as:
*…¾X Established relationships breaking down
*…¾X Expectations may no longer be valid;
*…¾X Reactions may cease to be effective; and
*…¾X Old behaviors may not be possible.
This results in a loss of belonging and questioning of identity which triggers anxiousness
and vulnerability.
Managers of groups experiencing chaos should anticipate a reduction in group
performance during this stage. Until the individuals accept the foreign element, members
form fickle relationships.
All members in this stage need help focusing on their feelings, acknowledging their fear,
and using their support systems. Management needs special help avoiding any attempt to
circumvent this stage with quick fixes since the chaos stage is vital to the transformation
process.
Stage 4: Integration
The members discover a transforming idea that illustrates to them how the foreign element
can benefit them. This results in the emergence of new relationships that offer the
opportunity for identity and belonging and as a result performance improves rapidly.
However individuals in this stage need a significant amount of support since frustration at
a lack of short term success could diminish their enthusiasm resulting in a breakdown of
the newly established relationships.
Staff thus requires reassurance and help finding new methods for coping with difficulties.
Stage 5: New Status Quo
If the change is well received and practically viable, the environment would be in better
shape with performance stabilizing at a higher level than in the Late Status Quo.
The group would feel a sense of accomplishment and be more receptive to changes in the
future. However individuals need to be continually encouraged in order to ensure that they
are satisfied that the environment is safe enough for them to continue to work.
In addition the imbalances between the group and their environment needs to be
continually explored and these imbalances addressed to ensure that there is less resistance
to change.
Question 2
I am currently working for a bank in the Middle East country called Qatar, where the
government has recently introduced a Qatarization policy 6 months ago whereby all
companies are forced to employ a certain percentage of local Qatari Arabs, similar in
nature to the Employee Equity programs we have back home in South Africa. I will utilize
the Satir change model and apply it to the changes that have occurred over here in the bank
due to the introduction of this Qatarization policy.
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Stage 1 *ƒ*…½V The Late Status Quo
Qatar is a small country that discovered oil 20 years ago, and is now beginning to see the
benefits of the oil revenue. It is very much a country made up of expatriates (foreigners).
The total population of the country is 850-000 with only 1/3rd of these being local Qatari
Arabs and the rest of the 2/3rds being foreigners.
The bank*ƒ*…½*ƒ‚¦s staff demographics reflected the countries demographics and up to 6
months ago were:
Asians (India/ Pakistan / Sri Lanka) 42%
European / American 18%
Other Arabic countries (Egypt, Palestine, Iran, Iraq, Jordan etc) 25%
Local Qatari Arabs 4%
The Rest 11%
Total as a percentage of 1541 employees 100%
As with any country that has such a large expatriate community staff from the Asian
subcontinent of India, Pakistan and Sri Lanka were in the majority due to the relative
strength of the Qatari Riyal to the India/Pakistani and Sri Lankan Rupee.
Arabs from other countries such as Egypt, Palestine, Iran and Iraq etc were also lured to
this market since their ability to speak Arabic placed them at a distinct advantage when the
more affluent Qataris were being dealt with.
The huge investment in the country due to the oil revenue generated by the market also
attracts a large number of Americans and Europeans who are attracted by the ability to
earn dollar based tax free salaries.
While local Qatari Arabs were employed, the number was significantly small. The
employment rate of local Qataris is relatively low across the country due to a number of
factors:
1. The government pays every local Qatari a significant amount of welfare every year.
Every Qatari citizen can reasonably expect an *ƒ*…½*ƒ‚§allowance*ƒ*…½*ƒ of US$
1500 per month (ZAR 9000-10500). In addition Qatari*ƒ*…½*ƒ‚¦s are not billed for
utilities (Water, Electricity etc)
2. Qatari citizenship is not granted to any individual other than those who has at least one
Qatari Arab parent. Thus despite many people having been born and living their whole
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