Managing Change at Ajax Minerals and Perrier - Case Study Example

Ajax Minerals Exercise and Perrier Case Study Assignment 3: Ajax Minerals and Perrier Introduction Although resistance to organizational changes is normally brought about by a number of factors, employee resistance is currently regarded as the most ascendant failure that an organization can face. Perrier and Ajax Minerals are two organizations that have gone through severe failures, pg 19. The aim of this assignment is to underline the emergence of complexity during change initiative and how transformation affected Ajax Mineral and Perrier. The study particularly discusses and compares how managements of the two companies diagnosed change and the how the changes affected interested parties. The assignment also proposes adjustment strategies in order to effect a change in Ajax Mineral and Perrier. Causes of Resistance to Change in the Ajax Minerals The two main sources of resistance in Ajax minerals are fear and discomfort among employees, (pg 87). The two reasons of resistance were present even before the company started the process of implementing the changes. There was already a hostile relationship between management and staff. The grueling relationship between management and staff worsened during the change and turned to disaster later on (pg 89). The reason for this negative relationship was the communication breakdown. Ajax mineral junior management offered the most significant resistance. For example, junior managers frustrated the executive managers’ effort to curb the situation, (pg 90). On the other hand, supervisors and junior managers colluded with staff members to protest against the new changes. Most of the staff got away with unacceptable behaviors as supervisor abs corded duties. They were unacquainted the egregious situation which was quickly bringing the company down. The discord between worker and management made the company’s strategist to be cautious when introducing the changes. The workers always expected any new changes to be accompanied by suspicious and malicious stances such as job layoffs or salary cut, (p. 88). The organization is using a number of strategies to deal with each type of resistance. For example, to mitigate the effects of resistance to change, top managers of Ajax Company applied two strategies they established sessions where the participation was mandatory for both supervisors and managers. It is during these sessions that supervisors interacted. They were given stories about organizations who suffered due to similar problems. These communicative and collaborative meeting brought managements and supervisors together for deliberations, Singer (2005, p.197). The other tactic applied by the management is described be Singer (2005) as ‘’open book” tactics. In the tactic, the managers allowed employees to access data and information about the company’s financial performance. The approach eased anxiety and discomfort between management and workers. The tactic brought about a sense of ownership, cooperation and confidence, (p. 201). Sources of Resistance to Change in the Perrier Case Study There are a number of sources of employee resistance to change in the Perrier case study. For example, the relationship between workers and management of Perrier Company became hostile as a result of disunity and reformative communication caused by drastic measures put in place by management. Workers lacked conviction that a change was necessary; some believed that the change was untimely while other had a natural dislike of the change, (pg 824). Barrow, Barrow (2012) identifies the uncertainty and discomforts that occurs when there is a breakdown in communication as conspicuous sources of resistance. Organizational changes impacts directly and strongly on employee’s behavior and working conditions. The change, therefore, throws employees to a state of fear and skepticism. Another potential source of resistance to change is the fear of losing jobs among many employees of the company. This is particularly attributed to the company’s failure to adopt the change made the company face a severe competition, and total collapse was in the offing. The collapse of sales made workers fear losing their jobs. As a result, the company planned to affect a 15% pay cut on workers that solidified the fear, (pg 824). The pay cut and fear of losing the job brought chaos and made the workers resistance to change. The company further pushed for early retirement for workers. Aggrieved works joined a trade union which supported the workers in their endeavor. To counter the trade union, the management of Perrier Company threatened of disposing of the company. All these factors may have contributed to the current employee resistance to change in Perrier Company. Perrier Company has attempted a number of strategies to deal with each type of resistance described above. However, many of these changes have been ignored by the employees as a majority of them are beginning to feel that the changes are likely to increase their normal workload. As a result, despite the attempts by the company to address the problem of employee resistance to change, many employees continue to counteract the efforts of the company and this has further contributed to its dwindling financial performance. How management diagnosed and approached change at the two companies; effectiveness of the approach applied  The case study of Ajax minerals and Perrier are good examples of management practices in dealing with employees’ dissatisfaction. Ajax minerals established a deliberative and consultative process. They carried out meetings where supervisors and senior managers interacted. The company brought employees on board; they engaged them in the discussion before new initiatives were implemented, Barrow, Barrow (2012, pg 890). On the other hand, Perrier resolved to a hard-lined and firm-stand position that focused on eliminating the trade union. Workers’ sabotage made the company incur numerous losses as a result of liability losses and issues of inauspicious contamination. The huge losses made the company stay out of the market for six months, (pg 891). The company settled on massive layoffs and mandatory retirement. The initiative failed to work leading to take over by Nestle. Potential Adjustments to improve Ajax Mineral’s change As a consultant with Ajax management, the two main adjustments that I would propose to be undertaken to improve the company’s change strategy include education and communication on one hand and increasing the involvement and participation of the employees in the organization change process. This is particularly in view of the fact that the strategy for change used by Ajax minerals has always been both subservient and inventive. For example, although the approach delivered desirable results, it was a compromise on the management while workers received too much opportunities and power. Worker became overconfident which would have caused insubordination (Maugeri, 2008). Ajax minerals would also have applied the method of performance appraisal on supervisors coupled with manipulation and coercing of workers. Improving education and communication such as by conducting various informative meeting is an effective strategy that can significantly help Ajax Minerals Company to manage employee resistance to change. This is particularly because employee acceptance of change often require strategic and comprehensive preparedness and many of the cases of resistance in the company can be attributed to the lack of awareness of the change needed or misinformation on the potential impacts of the changes. In addition, education and communication will also enhance the interactions between the employees and the management thereby limiting the discord and suspicion between the workers and the management. On the other hand, increasing the involvement and participation of the employees in the organization change process is also an effective way of managing employee resistance and improving the organizations change process since it encourages greater understand and motivates the employees to be actively be engaged in the change process. Additionally, this strategy may also ease the anxiety and discomfort between management and workers during the change process as well as bring about a sense of ownership, cooperation and confidence on the part of employees. Potential Adjustments to improve Perrier initiative for change The two main adjustments that I would recommend for Perrier company to improve its change initiative include improving organization communication and support for the employees. Generally, the management neither attempted to educate the workers, nor did they engage the worker in any form. Instead of providing support and facilitation their employees, they resulted into threats and intimidation. They did not communicate with them to eliminate their fear and insecure feelings. Perrier took a harsh policy that only worsened worker-management relations. The suggested policy considers two adjustments: openness and consultation. Meetings with members of the trade union would have reduced the conflict between employees and management (Maugeri, 2008). The management could have also used interactive sessions to communicate the benefits that they would accrue in the implementation of the change initiative. The management could have allowed employees to access financial information concerning the company. The management would have effectively communicated with the employees in an attempt to give them assurance of job security. Conclusion In conclusion, employee resistance to organizational change is currently one of the major insuperable problems affecting many business organizations. As seen in the case study, resistance may results into hostility complaints, bad-tempered altercations and strikes. However, the approach employed by the management of a given organization in curbing resistance often determines how longer the organization is in existence. Managers should always facilitate a good relationship between themselves and workers. References Barrow, C., & Barrow, P. (2012). The business plan workbook (Seventh ed.). London: Kogan Page Maugeri, L. (2008). The age of oil: What they dont want you to know about the worlds most controversial resource. Guilford: Lyons Press. Palmer, I., Dunford, R., Alkin, G. (2009). In Managing Organizational Change. New York, NY.: McGraw-Hill Companies Inc. Singer, I. (2005). Three philosophical filmmakers: Hitchcock, Welles, Renoir. Cambridge, Mass.: MIT Press. Read More