Organisational Change Management - Essay Example

An act that has seen it do quite well in maintaining competitive position in the face of growing competition. However the impact imposed on the company by the recent economic intrigues has made the management to rethink on the strategic planning to keep the company afloat by reducing cost as quickly as possible to enable its survival. It is with this in mind that the management has resolved to stop producing some components in its line of production and concentrate on the production of other components on fewer more promising sites.

A decision that the subordinates are yet to know as it is only discussed by a few senior managers of the firm. The new plan as decided by the senior staff will involve the expansion of the company’s main firm at Blois, France. This is because the plant at Blois has the most advanced technological advancements in terms of manufacturing and the factory is not yet working to capacity thus, increase in production at Blois is projected to produce a reduction is cost. The UK based factory is set for closure because it is considered as having relatively more outdated manufacturing technologies as compared to the other sites.

Consequent to these new strategies, the employees and stakeholders in the UK manufacturing facility are bound to be baffled by the news since, according to them; they expected a major boost and development in their plant. Besides, the closure will lead to redundancies and lack of or minimal opportunities for redeployment and access to alternative jobs since only one group of the technicians is encouraged to move to Blois. Other impacts such as the loss of the an international and vital market at Didcot, failure of the development engineers to relocate and a fear of job insecurity among the employees in the other factories based in Spain and France are inevitable once this new strategy has been announced.

Definition In the D2 case it is important to note that organizational change is required. This is as seen by the dwindling income from the plants put in place by the firm at various sites. The economic trends and the problems it has brought have been dealt with through application of proper change in the operations and productions. The economic recession that has led to the reduction in the profits and returns that the company was making prior is considered as an environmental pressure that forces the management and leadership to come up with a change plan in a bid to allow the company to survive.

As a result of this environmental pressure, which is the major problem facing the firm, it is forced to find a way of reducing the amount spent servicing one branch(UK branch) that does not seem to promise good returns hence high costs yet low returns. Therefore, one great challenge for the firm is to find a way to curb the problem of high cost which is an environmental pressure (Barnes, 2004). The management on its part has decided on closing the UK-based factory due to its inability to produce the required threshold.

Another issue notable in the D2 case is the leadership and management. This is a very important aspect of a company that requires proper and careful consideration in the organizational change. The leaders and mangers in the organization are like the drivers of the vehicle and determine where it goes depending on how they choose to deal with the situations that arise and require an action of change within the company