Process Of Change And Specific Change Strategies In The Coca-Cola company - Essay Example

? Critical review and application Value "the Coca-Cola" company Table of Contents Introduction 3 Critical review of process of change and specific change strategies used in the organization 4 Weisbord's Six-Box Model 4 Nadler-Tushman Congruence Model 7 Alternative change strategy suitable for specific change situation in the organization 10 Conclusion 13 Reference 15 Bibliography 15 Introduction Change intervention is the way in which members and practitioners in organizations jointly plan and implement organizational development interventions. The designing of intervention are particularly done for the purpose of attaining vision and goals of the organization. However, there are several different criteria for creating the design and making action plans for implementing the same. This includes the readiness of the organization to accept the change, its present change capabilities, the organizational culture and power distributions, and finally the skills and abilities of the change agent. There are different kinds of organizational diagnosis which are based on their individual outcomes, such as human process interventions at the individual, group and total systems level. Besides the above, there are planned change interventions for modifying the organizational structure and technology; human resource interventions are aimed at improving the performance and wellness of members, strategic interventions aimed at managing the relationships within the organization with the external environment and the internal processes and structures which are required for supporting the strategies. The final stage of the change interventions is evaluating the effects of the same and managing institutionalization of the change so that persists and continues to be sustainable in the long run in the organization. The project makes an analysis and critical review of the change strategies undertaken in the Coca Cola Company and arguments are presented with the regards to the extent to which the change strategies have been successful in the organization. The diagnosis of the change strategies are done in the light of two models, namely Weisbord's Six-Box Model and Nadler-Tushman Congruence Model. The project makes recommendations for an alternative change strategy that can be applied in Coca Cola Company in specific change situations. Critical review of process of change and specific change strategies used in the organization The critical analysis and evaluation of the change process in Coca Cola can be conducted with the help of two models, namely Weisbord's Six-Box Model and Nadler-Tushman Congruence Model. Weisbord's Six-Box Model Following is the diagrammatic representation of this model. Figure 1: Weisbord's Six-Box Model (Source: Aspire, n.d., p.1-3) In this model, the two most crucial factors for the purpose box are goal clarity and the degree to which the organizations are clear about their mission and purpose, the agreements of goals and the extent to which people support’s the organization’s purpose. With regards to structure, the model seeks to find the fit between the structure and purpose of the organization. It is seen that the planned change implementation has been effective with regards to the fitness of the organizational structure of Coca Cola with the purpose of the change. Organizational leaders have particular researched extensively for the designing and development of organizational hierarchy and effective teams which can contribute maximum to the change processes. The different design options with regards to the restructuring of the company’s headquarters were particularly effective in achieving high level of balance between the global and the local governance of groups and geography. Moreover the process of designing groups and teams was particularly effective and a learning experience (Hatch, 2005, p.14). With regards to relationships, the model contends the importance of three main types of relationships, i.e. relationships between individuals, relationships between departments and units performing different tasks, and finally between the people and characteristics and nature of their jobs in the organization. It states that the OD consultant must first make a diagnosis for the problem and then assess the quality of the relations which is followed by the methods of conflict management. In order to assess the sudden shocks and blips for the reward box, the model considers the diagnosis of the similarities and differences between the formal rewards structures of the organization and the members’ perceived punishments and rewards. The model also makes the leadership box the most important aspect of the change intervention strategies. This is because it considers that one of the prime responsibilities of a leader is to watch and recognise the hurdles and blips of the other boxes in the model and try to maintain balance between them too. It is the role of the consultant to recognise the extent to which organizational leaders are able to define purposes, embody the programs and purposes, defend the integrity of the organization, and maintain order and balance with regards to internal conflicts in the organization. Finally, the model considers helpful mechanisms as the main binding factor between the different components of the organization, i.e. binding the different people having separate and individual needs and requirements. Thus, it is important that organizations must cater to the helpful mechanisms for planning, budgeting, controlling and other information systems helping members accomplishing their goals and objectives. The OD consultant plays the crucial role of determining the ideal mechanisms which help members accomplish the organizational purposes and which of them hinder their purpose (Aspire, n.d., p.1-3). The extent of success arising out of the changes in Coca Cola Company reflects through the generation of development path of a variety of details with regards to organizational design, job definition, level of clarity of decisions, performance objectives of employees and management routines. These developments have also been responsible for the creation and generation of greater responsibility for the realization of changes through the implementation of better sets of policies and structures. Also, the changes have been made responsible for accounting for the outcomes of the decisions and policies (Aspire, n.d., p.1-3). Nadler-Tushman Congruence Model Nadler Tushman’s congruence model can be used for diagnosing the process of change intervention in Coca Cola Company. The model is provided in the following figure. The model is based on the principle that the performance of an organization is driven by four key elements, namely, people, tasks, structure and culture. The more congruency and compatibility between these elements, more is the chances of greater performance. Authors have described the model as the degree or extent to which demands, needs, objectives, goals and structures of a particular component are consistent with the goals, objectives, demands and needs of some other component. In other words, it is the extent to which the pairs of components fit with each other or are compatible with each other. For example, if there is a task requiring a particular skill set and expertise, and simultaneously there is existence of individuals having varying levels of skills and knowledge, greater success will be achieved and more effective performance can be delivered if the skills and knowledge match and align with the individuals and the tasks (HR Intelligence Report, 2008, p.13-14). This model is particularly termed as the congruence model because of its fitness within the six components, i.e., tasks, informal organizations, formal organizational arrangements and individuals. Based on the above four components, six paired combinations comparisons can be made possible. Nadler and Tushman (1980) have particularly raised issues regarding the consideration of each of the paired comparisons. This is provided in the following table. Figure 2: Congruence Model (Source: HR Intelligence Report, 2008, p.13-14) Through the analysis of the congruency between the different components of the model, diagnosis for the entire organization can be derived. This is depicted as high or low system congruence. It is also crucial to consider the paired fits and the system outputs for diagnosing the effectiveness of the programs. The planned change initiatives taken in Coca Cola Company have been undertaken considering the alignment and fitness of business strategies with the goals and objectives of the organization. The business units are greatly dependant on the matrixes ownership across the variety of cultures, geographies, functions and market conditions. In this regards, the business managers of the company has been tested to be leading with the most effective design initiative, and the most efficient staffing practice in the organization. The organizational leaders are also tested for leading the transition process and creating and building the level of process and infrastructure which is required for the desired level of success of the company. There is also significant improvement in the results and outcomes of the company (Nadler, Tushman & Hatvany, n.d., p.30-35). The change interventions implemented in the company is also seen to be taking is significantly towards improvements in the customer base and also improving its share of the market. With the inclusion of these organizational changes, the public opinion and public standing about the company has been seen to improve significantly. There has been favourable standing of the public towards the company’s brand and establishments. The satisfaction level of consumers of the company in different parts of the globe is seen to improve significantly. Also the levels of integration with the global enterprise have been improved through the changes in terms of sponsorship of management and sports teams across the global. There has been an improvement of the competitive advantage of the company. Additionally the changes have been particularly effective in satisfying the environmental needs of the present and future generations too (Nadler, Tushman & Hatvany, n.d., p.30-35). Alternative change strategy suitable for specific change situation in the organization An alternative change intervention has been recommended for the specific change situations in the Coca Cola Company. The Tichy’s model is recommended for diagnosing change intervention in the company. This model includes inputs, throughputs and outputs which is consistent with the perspective of the open system. The main key variables are identified in the model, which are crucial for the change management process. The broad history and environment are regarded as the two major categories on inputs in the organization, while resources are regarded as a third party of input. The change levers identified in the model, or the throughout variables includes mission, strategies, tasks, people, organizational processes, prescribed networks, and emergent networks. In the Coca Cola company task variables can be regarded as the organization’s strategies and approaches towards accomplishing its mission, purpose and criteria for effectiveness. The technology used in the company can be considered as the task a variable which helps to accomplish the organization’s purpose. The formal organization must be aligned with the social structure which includes the organization’s departments and communication authority networks too. The people variables are the characteristics of the members of the organization, their backgrounds, managerial styles and motivation. The mechanisms and processes which enable and facilitate the organization to conduct and carry out its works are termed as the organizational processes. These include decision making, organizational communication, and managing conflicts, control and rewards system. Finally the throughout variables includes the emergent networks. This refers to the structures and processes which formally emerges within the organization. According to this model, the focal point of the model must be the organizational effectiveness of Coca Cola Company (Hughes, 1990). The output of the company must be dependent on the input and the throughput variables. All of the variables are interrelated in the model. It is possible that certain variables have major impact on some others, while other variables can have weaker relationship and reciprocal effect from other variables. While considering the variables, the overlay plays a vital role in this theory. The overlay involves the political, technical and cultural dynamics within the variables of the model. It raises four main questions which answers or addresses the technical, cultural and political dynamics of the organization. The questions include the extent to which the different parts of the organization are aligned with one another in solving the technical problems of the organization. Similarly the other questions include the degree of alignment of units of the organization for solving the political and cultural problems of the organization (Hughes, 1990). Additionally, it also tries to determine the extent to which the sub systems of the organization are aligned with each other, i.e. the technical, cultural and political systems. The technical dynamics are regarded as those particular aspects of the organization which are known, such as the available resources in the organization or the production processes. Political dynamics includes views of the dominant groups in the organization. The shared values and symbols making up for the organizational culture are regarded as the cultural dynamics of the organization. The three aspects of the model, i.e., technical, cultural and political dynamics must be managed together and consistently in the Coca Cola Company, or realigned with each other for effective implementation of the change intervention process. The organizational dynamics, according to the model is extremely complex and not a single process. Firstly, it is recommended that the organizational development (OD) consultant collects the required data relevant to the four questions for each of the different variables represented in the model (Burke, 2010, p.207). There are a number of ways in which this data can be collected. This can be done by conducting interviews, document analysis, or using the method of questionnaire. This data collected by be put to analysis and represented in a summarised format and structure. The summary data can then be included in a matrix and put to analysis in order to determine where alignment is required between the different units of the organization. Based on the analysis and determination of the alignment of processes and structures with the organizational objectives and goals, the action planning must be generated and developed (Hughes, 1990). Conclusion The project reveals that planned change interventions can contribute majorly towards improving organizational effectiveness and performance. It plays a crucial role in improving systems, structures and processes and takes the organization towards its desired performance and productivity level. It is seen that certain organizations thrive in certain corporate structures and cultures while many of them keeps struggling to achieve the same. The reason for the difference is the identification of causes or drivers of organizational performance and the relationships existing between them. Using the Weisbord's Six-Box Model and the Congruence model developed by Nadler and Tushman, the project determines the extent of success of the change interventions in the Coca Cola Company. It is seen that extensive alignment of the organization's purposes, structures, processes, leadership, rewards and helpful mechanisms account for the success of the planned change intervention in the organization. The challenges faced by the company were overcome by the change programs and initiatives. These have made significant impact on the business results and output. Significant improvement in the customer base was attained and market shares of the company were also seen to improve. The public opinion and standing in the company and reputation and goodwill of the brand was seen to improve through the change process. Tichy’s model has been recommended as an alternative strategy for the change intervention in Coca Cola. In this model, it is crucial to determine the address the questions of cultural, technical and political dynamics of the change process. The alignments of different units and subunits of the organizations in answering the technical, cultural and political aspects of the organization are regarded as the determinant of the success of the organization. Reference Aspire. (No Date). Weisbord Six-Box Model. Retrieved on May 29, 2012 from http://www.aspire-hbsd.co.uk/index.php?option=com_docman&task=doc_download&gid=22&Itemid=21. Burke, W. W. (2010). Organization Change: Theory and Practice. SAGE. Hatch, K. D. (2005). An Evaluation of a Supplemental Procedure Geared toward Prolonging Challenge Course Benefits. Retrieved on May 29, 2012 from http://repositories.lib.utexas.edu/bitstream/handle/2152/1934/hatchk88493.pdf. HR Intelligence Report. (2008). Organizational Diagnostic Models. Retrieved on May 29, 2012 from http://leadersphere.com/img/OrgmodelsR2009.pdf. Hughes, J. R. (1990). Applying Change and Organizational Theories in a Library Reorganization. Retrieved on May 29, 2012 from http://net.educause.edu/ir/library/text/CEM9043.txt. Nadler, D. A., Tushman, M. L. & Hatvany, N. G. (No Date). Managing Organizations. Retrieved on May 29, 2012 from http://www.cumc.columbia.edu/dept/pi/ppf/Congruence-Model.pdf. Bibliography Arredondo, P. M. (1996). Successful Diversity Management Initiatives: A Blueprint for Planning and Implementation. SAGE. Kearney, R. C. & Berman, E. M. (1999). Public Sector Performance: Management, Motivation, And Measurement. Westview Press. Klarsfeld, A. (2010). International Handbook on Diversity Management at Work: Country Perspectives on Diversity and Equal Treatment. Edward Elgar Publishing. Vroom, V. H. (1990). Manage People, Not Personnel: Motivation and Performance Appraisal. Harvard Business Press. Read More