For the case below, prepare a report indicating the entry process, explain how you would enter the organization as an Organizational Development Consultant, and identify the contact person within the selected organization.
OD Intervention Strategies: The Case of an Educational Institution
Assumption about the hypothetical organization:
The institution is facing dramatic challenges on profitability, market share, and employee morale.
Discussions:
A. Background of the hypothetical company
The higher educational institution covered in this report is a private non-sectarian company. It is owned by a religious organization. However, despite this form of ownership, it caters to all, regardless of economic status and religious affiliation. Tuition fees charged have been relatively low compared to competitors and have not significantly increased for the past decade despite the increase in prices of most of the basic commodities in the country.
The low tuition fee and other charges was not an excuse for the university to improve its services - it has to be at par with other players in the industry as far as academic and technological advancements. These advancements are necessary to maintain competitive position.
B. Company problems and possible contributing factors
1. Stiff competition. The company, a higher educational institution has been affected by the entry of many community colleges and universities that have been aggressive in their marketing strategies. This is aggravated by the support that the government has been providing to state universities. Through this support, state universities have been improving their physical plants and facilities. Branches of state universities have been strategically located, making them attractive to potential markets. These made competition very stiff. This resulted to low market share and consequently, a decrease in profitability of the institution covered by this report.
2. Higher operating costs. Inflation and other factors that have been adversely affecting the country's economic condition increased operational costs - from the cost of utilities to physical facilities acquisitions and maintenance.
3. Shift of interest of students from bachelors degrees (four-year courses) to vocational or short term courses. This made vocational/technical schools attractive to the potential enrollees. High unemployment rate of college graduates could have caused this change in their interest to short-term vocational courses.
4. The need to comply with accreditation and government recognition requirements. To remain in the industry, the programs offered by the schools should be accredited by a duly authorized accreditation agency. Requirements for accreditation have been both costly and taxing - aside from the very high accreditation fees, physical, human, and financial conditions should be improved to pass a certain accreditation level. Complexity of requirements increases as the program reaches a higher level of accreditation.
5. Government regulations have been very tough, particularly in the school's ability to produce passers in the government licensure examinations. Programs offered face mandates for closures if they do not produce passers within a specified period of time. In addition, wage and salary regulations have to be complied with.
6. Brain drain. A number of the highly competent and qualified faculty members have been attracted to teach in foreign schools. Low purchasing power of the local currency urged some teachers to try overseas employment that provides them the opportunity to earn in foreign currencies.
C. Recommended interventions
1. Stiff competition may be addressed through improvement of the school's course offerings. Curricular offerings should be reviewed and continuously improved to adapt to the changes of the times. Improved curricular offerings could have many consequences - production of graduates who are employable and better chance for the institution to comply with accreditation and government recognition requirements. In marketing, this would mean improving the product, one of the four Ps in marketing.
2. Provide additional course offerings, particularly sort-term but technology-related courses while enhancing its four-year course offerings. Through these additional offerings, the HEI could tap additional market segment - those whose interest is technical/skill-based but short-term courses. According to Kotler and Keller (2006), some companies are now switching from organizing by product units to organizing by customer segments. By studying market segments, the company is able to produce profit-generating products.
3. Review and further improve rewards and compensation system. This would address the problem on brain drain and to adapt to environmental changes. Robbins and Coulter (2006) noted that managers must develop a compensation system that reflects the changing nature of work and the workplace in order to keep people motivated.
REFERENCES:
Kotler, P. & Keller, K. L. (2006). Marketing Management. Pearson Education, Inc.
Robbins, S. P. and Coulter, M. (2002). Management. Pearson Education (Asia) Pte. Ltd.