Strategic Management

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 ÐŽV 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 ÐŽV 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 ÐŽV Chaos

As the foreign element disturbs the equilibrium in the environment various manifestations of chaos set us such as:

„X Established relationships breaking down

„X Expectations may no longer be valid;

„X Reactions may cease to be effective; and

„X 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.

Stage 1 ÐŽV 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 bankÐŽ¦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