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Organizational change in the face of profitability drop in McDonalds Corporation - Essay Example

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The discussion will assess organizational change in the face of profitability drop in McDonald’s Corporation. The researcher of this discussion will attempt to evaluate and present change model, change theories and practical interventions…
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Organizational change in the face of profitability drop in McDonalds Corporation
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Organizational change in the face of profitability drop in McDonalds Corporation

Download file to see previous pages... It is evidently clear from the discussion that it is undisputable fact that change is inevitable and one of the most fundamental processes of any organization. Presently, than ever before, organizations face rapid change. Globalization and increased expectations of customers and employees, competition, technological advancements, and need to boost profitability is what have made change to be inevitable in organizations. Besides, more concern by stakeholders of organizations has prompted the management to adopt change strategies in order to convince the stakeholders that they are capable of achieving the organizational objectives. However, various studies have shown that despite the fact that change is inevitable and most companies management are planning and implementing change, the process of managing change is proving a great challenge. According to Isern and Pung, leaders rarely achieve their objectives when they have embarked on a major effort of change in their respective organizations. They note that there are factors that distinguish successful and unsuccessful efforts to change. They argue that a true transformation within an organization is characterized by integration of different change types (commercial, operational, and organizational), sustained effort that last for longer periods, and high ambitions. Isern and Pung further note that numerous surveys have shown that have difficulty achieving intended results. According to a 2006 online survey by McKinsey Quarterly only 38 percent of the executives across the globe who responded reported to have had a complete success on the transformations they instituted in their organizations. A tenth of those who responded acknowledged that their organizational transformation efforts were completely unsuccessful (Isern and Pung, 2007, p.1). It is in the light of this that this discussion will critically evaluate using appropriate models, theories and practical interventions how a manager can successfully manage a ‘radical change’ within a complex organization. The evaluation will focus on radical change in regard to aspects such as a sharp drop or slide in profitability. The discussion will assess organizational change in the face of profitability drop in McDonald’s Corporation. Change Model Managing radical change within an organization may not be an easy task as various surveys have shown. Radical change may be prompted by various circumstances such as enticing new customers, fighting competition, and sharp drop in profitability. Since managing change needs to be done appropriately in order to be successful, it is important that certain model or models be adopted. In this case, and in particular reference to managing change in the face of drop of McDonald’s profitability, Kotter’s 8- Step Change Model will be used. Kotter (1996, p. 26) states the first step in managing change is through creation of urgency. Change will be of help to the company if the company really wants it; therefore, there is need for development of sense of urgency. Burnes (2009, p.103) agrees with Kotter’s proposition of creation of urgency around a need by arguing that it is essential in motivating employees in the organization to get things moving. According to Kotter, creation of urgency entails the following; examining opportunities that can and should be exploited, identifying potential threats and developing scenarios of possible future happenings, giving of convincing and dynamic reasons so that people can talk and think about them, and requesting support of stakeholders, industry players, and customers so as to strengthen the argument about change. McDonald’ ...Download file to see next pagesRead More
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