A Case Study: An Analysis of Organizational Changes of Henan Machinery and Electric Import and Export Corporation

Abstract

This paper describes change events as a case study in a company called Henan Machinery and Electronic Import and Export Corporation, and analyzes the change events utilizing constructs of organizational environments, structure, leadership and culture, in order to get a better understanding of the change in an organization. In this study, the author tries to first describe and then analyze several organizational changes in the development of a local company by the name of Henan Machinery and Electric Import and Export Corporation. After investigating the target companys developing history, some significant points are found. These points are displayed in this paper as three issues of a) change of personnel in 2006; b) change of governments policies in recent years and c) the financial crisis in 2008. The literature reviewing gives the author a clear vision of how the organizational changes are formed and then implemented. The paper then falls into two parts: the analysis of the causes of organizational changes, in which Seniors theories (1) and Burke-Litwins casual model (2) are mainly adopted, and the process of the changes, in which Lewins three-step model (3) and Kotters eight-step change process (4) are adopted. The conclusions will be made; the implications and the limitations will be discussed after fully analyzing the HMEIEC case. Brief Introduction of the Change Event Henan Machinery and Electric Import and Export Corporation, LTD, which is a subsidiary of China National Machinery & Equipment Import & Export Corporation (CMEC), were founded in 1997. The company mainly does business of exporting parts of mechanical equipment with the USA companies. Henan Machinery and Electric Import and Export Corporation, LTD is a half-privatization half-nationalization company. It was a new business model when the company was founded, because almost all the import and export companies were state share-holding. The head of the company are General Manager, who is responsible for the Finance Department and the Deputy General Manager, and the Vice Secretary of the Party Committee, who is also the Chief of Office, in charge of the Party affairs, logistics and administration. The Deputy General Manager is in charge of two Business Departments, in which salesmen are devoted to finding more clients, seeking more business opportunities,exploiting market,and retaining stable sources of customers. In the next ten years, the company had a group of stable clients to ensure further development, and gained considerable profits every year. Fame and good reputation came naturally. During the later development of the MEIEC Company, three notable issues emerged, which will be elaborated in the following paragraphs.