What is the rationale presented for the change?

The first article shows that the Nokia Company had to stop almost 10,000 of their staff to decrease the cost by the end of 2013. To support the transition period, Nokia plans to increase its operating model to reduce expenses significantly devices and services, which reduce the number of employees and the factory area if the company want to stay competitive in the market for the long term. This situation shows the rationale for the change. The Nokia Chief Executive is taking the director image which is based on an image of management as control and of change outcomes as being achievable. The chief executive holds that if the company wants to remain competitive, they need to close the facility in Ulm, Germany; Burnaby, Canada and manufacturing plants in Salo, Finland, with their research and development (R & D) in Salo will continue. For the second article, the rationale for the change present when the Naim Indah Corp Bhd (Nicorp) has entered into an unincorporated joint-venture agreement with Keloil Sdn Bhd for the purpose of carrying out business in the oil and gas industry.

Which of the external and internal pressures are referred to? Are there additional pressures not specifically considered in this chapter? The Nokia article is related with external pressure, which is the market decline pressure. The declining markets for products and services place organizations under pressure to remain relevant. These situations occur because the Nokia Company resource base is decrease as a result of reduced demand for products and sales. The Nicorp article is targeting the organizational pressures for change, which is related with integration and collaboration pressures. Nicorp need to intergrate with other organization which is Keloil Sdn Bhd to diversify its income stream in the long run. There is no additional pressure not specifically considered from the chapter related with the articles.

Now, compare and contrast the rationales in each article. Are there commonalities that emerge? Are some presented as more legitimate than others? In your opinion, why might this be the case? Both articles had different rationales in the organization and there are no commonalities occur in both articles and they are presented equally legitimate. From my point of view, both organizations had their own target to achieve. For example, the Nokia Company decided to stop 10,000 of their staff to stabilize their company for the long-term. While as, Nicorp is on joint venture with Keloil Sdn Bhd to carrying out business in the oil and gas industry.

To what extend are single versus multiple rationales utilized? What conclusions do you draw from this? From my opinion, there should be a single rationale rather than multiple rationales that should be used in the organization. It is because, to avoid confusion in an organization, managers need to use a single rationale in their organization as it will be clearer about the pressures that they will face when they intend to change their organizations with a well-developed rationale for what they are attempting to achieve and the likely effect of their actions.