OMV PETROM, applying integrative organizational change to lead company become more sustainable - Essay Example

1. Major Themes One main theme in the case is that, today, company’s needs to show responsibility over the environment, employees, and society in general. Another theme is on the method used to transform corporations into sustainable organizations based on organizational change. The integrative strategy (Plan-Do-Check-Act (PDCA) shows how the company can improve socially and environmentally while still maintaining its competitive advantage in business.2. Integrative ModelThe integrative model of organizational change is based on the Plan-Do-Check-Act.

In planning, it provides the recent condition, and it helps the company to set up its ultimate goals. The company will understand its requirement to change the values, norms and rules. The company will also understand the need to list individual goals. The listing of goals starts by collecting data and diagnosing the goals. After understanding the elements, a company will need to adjust its management to achieve set goals. The “Do” part is concerned with implementing the organizational change.

“Check” on the other hand, has its meaning. The corporation should check and evaluate the performance of the organizational change towards the objectives. The company needs to take corrective measure if it is underperforming. The other significant part is “Act”. After a corporation gathers, all of the data, it should give its reaction, and read the plan to know whether it meets the objectives. If it does not meet the objectives, it needs to change or come up with a new plan to achieve the objectives.3. Major Issue with OMV PetromThe major issue of OMV core competencies is a contradiction with sustainable development.

Sustainable development means “meeting current needs without compromising the ability of the future generations to meet their own need” (Bocean, and Sitnikov, 2012). This is an issue for oil and gas companies. This is because it is hard to reduce emission by leading OMV to produce long-term energy efficiency. The companies see difficulties in applying safety, security, environmental care and corporate social responsibility while at the same time needs to maintain healthy economic condition.4. Utilities and ImpactThe environment is impacted because a sustainable company reduces the harmful effect to society.

For example, in 2010, OMV Corporation produced 184 barrels per day less crude oil of 4.15 and still maintained high net turnover of 18616. This shows the oil company helps to reduce emission that will positively affect the environment. This makes the company receive positive perspectives, and make their employee confident. This will reduce employee turnover. Moreover, OMV influences other companies to do organizational change to lead companies to sustainability. OMV become the benchmark to others.5. Lesson from ChangeThere are three lessons for change.

First, they need high initial cost and enormous capital to invest in change “Activities development is supported by significant investments aimed at increasing production” (Bocean & Sitnikov, 2012). Second, for the leading stakeholders to change is not easy. There is a high possibility that the change does not work. For example, OMV has 20000 employees, and it would be hard for them to apply this change from bottom management. Third, as Bocean, and Stinikov notes “OMV development and improvement need commitment, they need an enormous commitment to change from all of the employees, and board members by devoting time, effort, and resource.

From my own perspectives, when forming companies, one should not only think about profit, but also how to operate without harming the environment. However, applying this is hard, thus companies need to have a strong vision, and mission for using integrative model to make company sustainable.