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Nintendo Co., Ltd.

Management
Report
[Leading Organization]

Wai Phyo Kyaw [MM16002]


[IPE Master of Business Administration]
Assignment Record Form

Student Name : WAI PHYO KYAW

IC / Passport Number : 12/DAGAMA(N) 013898

Nationality : MYANMAR

IPE Index Number : MM16002

Teamie Index Number : RSIM-0102416

Learning Centre : RIVER SIMON INSTITUTE OF MANAGEMENT

Course : MBA

Term : 2016T4-NOVEMBER2016-FALL-M1-IPE-MBA-C5-LO

Module Title : LEADING ORGANIZATION

Centre Facilitator Name : Dr. Sui Reng Liana @ William

Assignment Submission Due Date : 07 JAUNARY 2017

Status : ACTIVE

WORD COUNT : 3806

I declare that this is an original piece of work undertaken by me.

I confirm that I have read and understood the IPE regulations with regard to referencing and
plagiarism.

YES NO

Note: Please read the Instruction to Upload the Assignment on TeamieLearning Portal before uploading your assignment.

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Contents
1. Executive Summary................................................................................................... 4
2. Introduction............................................................................................................. 5
3. Background Of Change............................................................................................... 5
4. The Change Model..................................................................................................... 7
5. Leadership Style........................................................................................................ 9
5.1 Laissez-Faire Leadership............................................................................................ 9
5.2 Autocratic Leadership............................................................................................... 9
5.3 Participative Leadership............................................................................................. 9
6. Overcoming the resistance of Change........................................................................... 11
7. Creating the Culture for Change..................................................................................11
7.1 Idea Champions and Innovation Program.................................................................12
7.2 Creating a Learning Organization.........................................................................12
8. Conflict and Conflict Management............................................................................... 13
8.1 Common Way of Dealing Conflict.............................................................................. 15
8.2 Interest-Based Relation (IBR) Approach.......................................................................16
9. Negotiations........................................................................................................... 17
10. Building trust across cultural (Sorell, 2014)....................................................................18
11. Recommendation & Conclusion..................................................................................18
12. Citations and Reference............................................................................................. 20

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1. Executive Summary
The globalization of the current world trend leads to the dynamic impacts on business world. The
climate and human desire are changing every moment. As a profit base organization, need to
improve the process or technology to inline with customer and environmental demand. The
change is needs to be done continuously throughout the organization start from the staff level to
board of director.

The leadership is vital part of puzzle to organizational sustainable success. The right leadership
management strategy is required to lead the organization to its optimum GOAL or Vision.

It is not just about the making strategy only, the implementation of the change management
process is important too. The smooth change process leads to company success with balancing
between the people, environment, and culture impact on task.

Nintendo attempt to change the current executive management process to Executive Officer
System (Nintendo, 2016) in 2016 General Meeting, we need to carefully balance the strategy,
leadership style and change management process. In this report, I will discuss more about

1) The different style of leadership to implement in organization

2) The model of Change ( Lewin Three Stage Change Process)

3) How to manage the change process effectively

4) Creating the culture for Learning Organization without collaborative effect.

All presented strategies will useful for creating the innovative and happy working organization
and will lead to company optimum Vision of change process.

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2. Introduction
Nintendo Co., Ltd is global home entertainment product manufacture and sales of gaming
software to its user. As a pioneer company of video gaming industry, Nintendo was dominated
the video game market for more than four decade.

The company mission is to put smiles on peoples face around the world through products and
services. The basic strategy is offering the product that can be enjoyed by everyone regardless of
age, gender or gaming experience. (Nintendo, 2016) As an entertainment company, Nintendo
need to follow up with the global trend and people desire, produced a lot of hardware and
software devices from NES (Nintendo Entertainment System) to Nintendo 3DS for maintaining
the company revenue.

The global changing process are not predictable now a day with technology advancement.
Nintendo always look for the improvement to catch up with rapid change of global business
enviroment. The company has adopted the Executive Officer System for purpose of clarifying
the responsisbility for the execution of operation and establishing a more flexible management
structure. (Nintendo, 2016) By introducing the EOS , Nintendo are looking for more
improvement in decision making, supervisory function and delegation of authority to execute
operations.

Executive Officer System will perform by the group of executive officer from the various
division of company. As a regional director, I will involve in EOS system and need to lead fellow
executive officer to get the most out of the system to achieve the purpose of change in east asia
region.

While Nintendo embraces this change, the leadership style will require to inline with change
process which require more strategy to implement within organization and culture to adapt well.

3. Background Of Change
As a living person in globalization process, we could not ignore the impact of technology
improvement and climate change. The people desire to try new things in every minutes and
willing to adapt the change. Nintendo was known for home and handheld entertainment

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hardware and software provider for daily life of people. Nintendo need to respond the rapid
change of people desire and new technology for maintaining the company success for long time.

The rapid respond come from rapid decision making in time with the change. American
companies are famous for decision making in time with business process. Nintendo need to adapt
the fast decision making system to catch up with the world demand. Executive Officer System
(EOS) (Seki, 2005) was introduced by Sony in 1997 to improve the governance process in Japan
which was produce the better result in managing the organization.

Base on last financial statement 2016, company sales revenue was decrease by 8.2 % on a year
basic which is more decreasing than previous years 2015 (Nintendo Co., Ltd, 2016) .The loss of
sales revenue was mainly contributed by shifting of consumer preferences to other form of
entertainment. The global consumer interest on smart devices is increasing day by day and need
to adapt well to this change to gain back the sales revenue.

The nature of Nintendo products and services, it face the difficulty to develop, sell or launch the
product as original plan due to rapid change impact of technology improvement. There is the gap
that need to make flexible plan to change the process to match with future enviroment. The EOS
will bring the improvement on decision making process for rapid respond to the change.

Please see some example for force of change and resistance to change for better understanding of
change process in Nintendo company.

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(IPE Paris MBA Class , 2016)

4. The Change Model


With the current introducing of Executive Officer System to Nintendo, Nintendo will need to
implement the strategic change model to organization for better performance with more
competitiveness.

When we talk about the change in organization, we need to know the current saturation and
people behavior in organization. The change will never happen without committed human factor
in organization. The change initiate approach is play the big factor for whole process and need to
handle with care to get everyone involve.

I would like to approach the new change to Nintendo with the Lewins Three-Step Model for
faster respond from the people in organization.

Lewin's Three Step Model

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(Stephen P.Robbins, 2016)

Stage 1:

The communication is vital part to start the change process which will deliver the message to all
people in the organization. The announcement of the introducing of Executive Officer System to
company operation process will create the senses of change to every employee in the
organization. That might create the good and bad reaction in the organization and will face the
resistance from people who are comfortable with current system. We will try to educate them to
global mindset and explain the saturation of company for better understanding of change.

Stage 2:

After they aware of the system change, we need to ensure all employee to use the advantage of
the system to make a better respond decision from the management to align with environment
movement. I will implement the centralized communication system to share their knowledge and
awareness of global impact to company product via online portal. The encouragement to be done
for those actively contributes on the portal for better decision making about product or service by
Nintendo.

Stage 3:

Once the implementation of Executive Officer System is being accepted by organization, the last
step is to freeze the new culture in the organization. This is the crucial stage for the leadership
style to maintain the momentum of organization to sustain the success by providing the

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continuous support and training to progress with the change process. Do not forget to celebrate
with employees who are involves in change process to further motivation.

I will discuss more about the leadership style which will apply on this change process in next
section.

5. Leadership Style
There is many type of leadership style in the business and political world which was successfully
implemented. The leadership is Situational appropriate action that directs or guides your group
to set and achieve goals.

There are three leadership styles that are considered to be among the "classic" styles used by
business leaders throughout the country. Each has its strengths and drawbacks - here are more
details on each of them: (Small Business Pro, 2016)

5.1 Laissez-Faire Leadership


This type is the largely hands-off with minimal direction and face time from the manager to the
staff. The key to using this method is having well trained and efficient directors who can work as
intermediaries between you and your employees.

5.2 Autocratic Leadership


This is a leadership style that has become something of a relic in today's business environment.
The reason is that most employees work better without the overbearing presence of their boss
around at all times. However, there are some who would argue that the Autocratic methods are
still as effective as they were in Feudal Europe - but only if properly balanced with feedback and
face time.

5.3 Participative Leadership


The third style is to find a happy medium between the above two methods. These managers
back-off more to allow people to tap their creatively and think independently, while still
maintaining enough control to guide the overall vision of teams without imposing their own
vision on their decisions. In short, you're giving them a much greater lead and will need to be
more trusting of decisions made by your directors.

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These three leadership types form the foundation of most styles used by corporate leaders today.
However, they do not necessarily encompass every philosophy on the nature of a business and
how leadership should be handled.
But there is more leadership style like Situational Leadership, Transactional Leadership,
Transformational Leadership, Strategic Leadership in the cooperate world.

So there is no perfect leadership style to fit all saturation in organization. I would like to bring in
the Participative leadership style for Nintendo Company for this change. As I explained in
previous section about the participative leadership, Nintendo need people who can create the
future product or service to enjoy for consumer. I would like to build a team with the people who
like to take risk, initiative, open minded and detail person to bring the best opportunity from our
environment. We can only expect the good result when we have a motivated people around in
our organization. The clear communication channel will play a vital part in my team to get higher
performance in long term. I will make sure all my organization staffs are aware of my intention
to change and style of mine for better cooperation. I will tell them that I am not only care about
the outcome and tangible results but also their interest and emotion to sustain the change
direction and achieving of long term success. As Mike Green and Co said the leader need to
balance three key dimensions as below figure:

Organizational

Context Personal
Leadersh
ip

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6. Overcoming the resistance of Change
Every change movement has to overcome the resistance of change in some way. The resistance
comes from people ego and behavior that set by current culture of organization. The resistance
may come from all level of staff that has negative feeling of change. Resistance can be come as
many form like overt, implicit, immediate or deferred. The easiest to overcome the resistance
from overt and immediate such as complaints, work slowdown or a strike treat. The implicit or
deferred produced the most challenging resistance for management. Because of it can cause loss
of loyalty, motivation, error prone work and absenteeism.

The following eight tactics (Stephen P.Robbins, 2016) will help us to overcome the resistance to
change:

1. Effective & Clear Communication

2. Participation

3. Building Support and Commitment

4. Develop Positive Relationships

5. Implementing Changes Fairly

6. Manipulation and Cooptation

7. Selecting People Who Accept Change

8. Coercion

7. Creating the Culture for Change


Nintendo always look for new and creative technology to serve its consumer. We need people
that accept the change quickly to create better performance. Nintendo can learn from W.L.Gore
Company which turns around the best known for maker of Gore-Tex fabric to manufacturer of
guitar strings, vacuum cleaner filters, industrial sealants and fuel cell components. The
innovation idea is a key to diversify the company product and developing the new market like we
did before

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7.1 Idea Champions and Innovation Program
I will implement the Idea Champions and Innovation program (Stephen P.Robbins, 2016) to
organization to extract out the talent people for future product or service development for
sustainable success. This program will set the organization to new culture which always ready
for change process. Idea champions will actively and enthusiastically promote the new idea, built
the support, overcome resistance and ensure their idea is implemented. The champions will
inspire and energize other in organization to convince their vision of an innovations potential.
Creating the passion of change among the staffs is greatest when their work roles and social
environment encourage them to put their creative identities forward. On the other side, works
roles that push creative individuals to do routine management and administration task will
diminish both the passion for and implementation of change. Idea champions are good at gaining
the commitment of others, and their jobs should provide considerable decision making
discretion. This autonomy helps them introduce and implement innovation when the context is
supportive. (Stephen P.Robbins, 2016)

If there is a competition, there will have bias or conflict about chosen idea or product. We need to
carefully manage the conflict between team members to get better team performance. I will
discuss details about how to handle the conflict among team in section 8.

7.2 Creating a Learning Organization


Learning is the important process of improvement for any individual or organization. The
learning organization has developed the continuous capacity to adapt change. I will present the
five basic characteristics of learning organization as follow:

1) There exists a shared vision that everyone agree on.

2) People discard their old ways of thinking and the standard routines they use for solving
problem or doing their job.

3) Member thinks of all organizational processes, activities, functions and interactions with
the environment as part of a system of interrelationships.

4) People openly communicate with each other (across vertical and horizontal boundaries)
without fear of criticism or punishment.

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5) People sublimate their personal self interest and fragmented departmental interests to
work together to achieve the organization share vision.

We could not stop here with just creating the learning organization. We need to manage their
learning process well to get what we aim to success for organization. We can manage their
learning paths as below:

1) Establish a Strategy

Management need to make sure its commitment to change, innovation and continuous
improvement.

2) Redesign the organization structure if necessary

The formal structure of Nintendo can be serious impediment to learning. Decentralize to minimal
cooperate structure by eliminate or combine department and increasing the use of cross-
functional teams reinforces interdependence and reduces boundaries.

3) Reshape the organization culture to inline with learning environment.

To create a learning organization, the leader must demonstrate by their action by taking the risk
and admitting the failure are desirable. The management needs to encourage the functional
conflict and rewarding people who take chance and make failure.

8. Conflict and Conflict Management


The conflicts are not avoidable in the change process implementation stage when people felt
insecure or threatening their position or well being. The conflict can be seen as disadvantage or
advantage for work process base on specific saturation. Conflicts are normal experiences in the
workplace. These are also, to a large extent, predictable and expected situations that arise
naturally as we manage complex and stressful projects in which we are heavily invested. Thus, if
we develop procedures to identify conflicts that may arise, and systems to manage conflicts
constructively, we will be able to discover new opportunities to turn conflicts into productive
learning experiences.

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The regular staff meeting should be used as a tool to effectively solve problems in a range of
situations, including anticipated conflicts. If such channels are perceived by the staff as closed,
unsafe and unproductive, they will be replaced by gossip, "stops" and bites.
As organizations strive to achieve their goals, they often face challenges that they must overcome
as a team. Challenges give way to conflict between members, other organizations, communities
and other parties involved in the mission of the organization. While "conflict" often has a
negative connotation, the effects of conflicts within an organization may be positive and
negative.
The basic of conflict come from following facts:
1) Definition of responsibility unclear
2) Conflict of interest
3) Not enough Resources
4) Interpersonal Relationships
5) Differing values between two parties
6) Opposing Interests
7) Personality conflicts
8) Poor Communication
9) Personal Problem
Once the conflict comes to our paths, we cannot leave it behind to resolve itself. Managing the
conflict is the junction of two way paths for organization. If the conflict is not managed
effectively, the results can be damaging. Contradictory goals can quickly turn into personal
aversion or Teamwork breaks down. Talent is wasted when people disengage themselves from
their work. And it is easy to end up in a perverse spiral down from negativity and recrimination.
The good news is that by solving conflicts successfully, we can solve many problems that it has
brought to the surface, as well as to get benefits that you might not at first expect:
It helps to understand two of the theories underlying effective conflict resolution techniques:
1) Common Way of Dealing Conflict (Kilmann, 1970)
2) Interest-Based Relational (IBR) Approach

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8.1 Common Way of Dealing Conflict
In the real world, people try to resolve their conflict with their knowledge and experience in the
past. But In the 1970s Kenneth Thomas and Ralph Kilmann identified five main styles of dealing
with conflict that vary in their degrees of cooperativeness and assertiveness.

Competitive

Two parties are concentrated on their own interests regardless of the impact on other in the
conflict. This is competing each other for getting something which is limited.

Collaborative

The collaborative conflict will use when either parties seeks to cooperate and search for mutually
beneficial outcome. The Win-Win solutions usually come out from collaborating.

Compromising

When the either parties are willingness to ration the object of conflict and accept a solution with
incomplete satisfaction, the compromising process is the best way to solve the conflict.

Accommodating

Accommodation is appropriate when the issues matter more to the other party, when peace is
more valuable than winning, or when you want to be in a position to collect on this favor you
gave. However people may not return favors, and overall this approach is unlikely to give the
best outcomes.

Avoiding

Avoiding can be done when one of the parties was identify the conflict existence and want to
withdraw from or suppress.

Once you understand the different styles, you can use them to think about the most appropriate
approach (or mixture of approaches) to the situation you are in. You can also think about your
own instinctive approach, and learn how you need to change this if necessary.

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Ideally, you can take an approach that responds to the situation, solves the problem, respects the
legitimate interests of people and repairs damaged working relationships. Please see dimension
of conflict-handling intention chart below for more understanding.

(Shankar, 2016)

8.2 Interest-Based Relation (IBR) Approach


The theory is Attention. This approach is mainly focus on individual differences while helping
people avoid becoming too anchored in a fixed position. The sample rules to follow as below:
The first priority is to maintain good relationship
See separately between people and problem
Pay attention to their presented interests
Listen first and talk later

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Bold out the fact
Open for other option
The conflict management process is very fundamental factor in every organization for change
process especially for multinational company like Nintendo. The miss-management of conflict in
change process will lead the company to downward. Every conflict need to resolve by good
negotiation process.

9. Negotiations
In a successful negotiation, everyone wins. The objective should be agreement, not victory."
The key to successful negotiation is to shift the situation to a "win-win" even if it looks like a
"win-lose" situation. Almost all negotiations have at least some elements of win-win. Successful
negotiations often depend on finding the win-win aspects in any situation. Only shift to a win-
lose mode if all else fails. (Wertheim, 2016)

Negotiations are a vehicle of communication and stakeholder management. As such, they can
play a vital role in assisting policy-maker to obtain a better grasp of the complex issues, factor
and human dynamics behind important policy issues. (Alfredson, 2008) Zartman defines
negotiation as "a process of combining conflicting positions into a common position under a
decision rule of unanimity, a phenomenon in which the outcome is determined by the process."

The negotiation process can be done as following process chart

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10. Building trust across cultural (Sorell, 2014)
There is no task successful completion in organization environment without the trust.
Coordination across several divisions can be difficult, especially the multination company like
Nintendo. So, I will put my major effort into understanding different work style, behaviors and
building trust to ensure effective cooperation across organization.
The high trust can lead to positive result of organization performance and the low trust will drive
us to opposite direction.

The Economics of Trust 1

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The Economics of Trust 2
(IPE Paris, 2016)

11. Recommendation & Conclusion


In the saturation of current global economy, the change process in organization un-avoidable to
improvement & growth of business for long term. Nintendo is facing the competition from the
other industries which is driven by technologies like smart devices. In order to sustain the
company success, we need to adapt our organizational vision, structure and process in line with
the environmental change process.

Strategic leadership need to develop within organization for continuously change environment.
The change can be mark as success when we can gain market share, customer dependency or
self-driving working culture in organization.

Nintendos objective is to put smile on everyone face around the world we touch. The
organization with integrate by global minded person will only achieve our company objective.
The innovated employee will create the innovated product and service for future.

I am sure that you will be concern about how do I support in the company current change process
to Executive Office System (EOS) (Nintendo, 2016) with my report. I am strongly believed that
my presentation of change management theories and model will support EOS system to quickly
implement into current organization and will see the effectiveness of implementation process in
short term or long term business growth.

Thank You!

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Youre faithfully,

Wai Phyo Kyaw

Regional Director of East Asia

Nintendo Co., Ltd

12. Citations and Reference


1) (Nintendo Co., Ltd, 2016) Annual Report 2016

2) IPE Paris MBA Class, 2016, Leading Organization

3) Nintendo, 2016 (Online), www.nintendo.co.jp

4) Small Business Pro, 2016 (Online), www.smallbusinesspro.co.uk

5) Alfredson, T., 2008. Negotiation Theory and Practice, Baltimore, Maryland, John
Hopkins University

6) Kilmann, K. T. a. R., 1970. Overview section of Leading Organization, IPE Paris

7) Seki, T., 2005. Legal Reform and shareholder Activism by institutional investors in
Japan.

8) Shankar, S., 2016 Managementguru (Online) , www.managementguru.net

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9) Sorell,M., 2014. Developing Global Mindset, International institute of Management
Development.

10) Stephen P . Robbins, T.A.J 2016. Organizational Bahavior. Seventeeth Edition.

11) Wertheim,P, E., 2016 . College Of Business Administration.

12) IPE Paris (2016), IPE Management School. www.ipeparis.theteamie.com

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