Implementing Change in the Organization: Case of Babcock - Research Paper Example

Table of contents Executive summary 2 0 Introduction 3 1Definition of change 3 2 Background to the organization: Babcock 3 1.3Presenting problems as you see them 4 1.4 Scope of the report 4 2.0 Literature review 4 2.1 Resistance to change 4 2.2 Leadership 5 2.3 Organizational culture 5 3. Method- Change model 5 4. Results/ findings 5 5. Discussion/ analysis and evaluation 7 6. Conclusion 8 7. Recommendations 9 References 10 Executive summary The report analyses the case of Babcock, a UK based engineering company. The company of late has experienced viability problems emanating from issues related to the culture of the organization. The report reviews different sources of literature in order get to the crux of the problem bedevilling the organization especially with regards to its global operations. The findings of the study indicate that culture is an indispensable component in the operations of any organization. It shapes the way employees in that particular organization behaves. In order for the management to cater for the needs and interests of all the employees in the organization, it is imperative for them to adopt measures that are inclusive and accommodative to the cultural values of people from diverse backgrounds. In the case of Babcock, it has been recommended that the management should adopt changes that are geared towards incorporating the needs and interests of different people especially when they are negotiating for business contract. 1. Introduction Change in an organization is inevitable but one of the most challenging roles of a leader is to guide the organisation through a major change. There are various factors that cause change in the organization and it is imperative for the change agents, particularly leaders to take note of these aspects in order to keep pace with the changes that can take place in the environment. As going to be illustrated in the case of Babcock, change cannot be avoided but there are certain measures that should be taken when implementing change in the firm. 1.1 Definition of change Change can be loosely described as a transition or movement from a current situation or the status quo to the desired future state (Amos et al., 2008). Change is usually caused by both internal and external forces. It is therefore important for the business people to conceptualise change as the gap between the current reality and the desired situation so as to improve the overall performance of the organization. This will help it to achieve its desired goals. 1.2 Background to the organisation: Babcock Backbock has a strong background in supporting the military and it is currently the UK’s leading engineering support services organization. Babcock employs a staff team of around 26 000 people who design, build, manage, operate and maintain assets vital to the delivery of the key public services both across the UK and abroad. It thrives on its policy: “Trusted to Deliver.” 1.3 Presenting problems as you see them The emergence of cultural differences in global markets where the company operates is a cause for concern. The other issues are that structure and communication are top down to enhance coercion in achievement of the desired goals. A joint venture with the Locomocao proves to be challenging since there is a wide difference between the cultures of the British and the Brazilians. Risk tolerance is also low as projects must be delivered to Babcock and industry professionally of which that is not the case. 1.4 Scope of the report The scope of the report is specifically meant to cover the measures that can be implemented in order to bridge the gap that exists in cultural differences between Babcok and the Locomocao in order to create a successful joint venture. This entails that there is need to change the status quo in terms of organizational culture in order to enable the company to accommodate the views of the other people from diverse backgrounds. 2. A LITERATURE REVIEW 2.1 Resistance to change Schultz 92003) states that implementing change in the organization is often met with resistance as a result of different factors. For instance, people do not easily want to change their usual way of doing things in the organization. In some cases, lack of knowledge about the envisaged change often leads people to resist it. In this case, it can be noted that the overseas contracts are just committed to tired and tested working practices which do not always align with Babcock standards. However, changing the status quo is likely to be met with stiff resistance by the workers. 2.2 Leadership Robins (1993) posits to the effect that the success of an organization mainly depends with the leadership style used by the leaders. As such, it can be seen that Babcock has relied on the values of ethical processes emanating from management to teams as part of their core psychological contract. This has resulted in a means rather than ends focus. The style of leadership used in the organization is centralised and it is oriented towards the attainment of the desired organizational goals. However, this has an impact on the performance of the employees since they may not be motivated to put optimum effort in their performance. 2.3 Organizational culture According to Ivancervich, Konopaske & Matteson (2011), society is composed of people with their own culture and these people share the same beliefs, norms, values, religion, language education as well as legal systems. Culture is learned and it shapes the behaviour of all the people in a particular organization. Organizational culture mainly obtains from the national culture of the people involved. Various studies as going to be discussed below have shown that culture plays a pivotal role in the operations of different organizations since it shapes the behaviour of the employees. 3. Method Change model Implementing change in an organization is quite complex. Marzano, McNulty and Waters (2005) have developed a change model that can be adopted by leaders in the organization. The basic principle underlying the model is the aspect of “order” which defines the nature of change. There are two categories namely the first order change and the second order change in this change model. The first order change is change that is usually related to prevailing values and norms. In case of Babcock, there should be changes with regards to the usual way of doing things in the organization. The second order change is essential in this case where there would be a complete departure from the usual way of doing things in the organization. For instance, aspects such as culture, staffing as well as management are British oriented and they ought to be changed in order to be accommodative to the values of people from diverse backgrounds. This kind of change requires a new body of knowledge where the members are supposed to learn something new. Conflicts are likely to be experienced in the organization when implementing this particular type of change. 4. RESULTS / FINDINGS The behaviour of people is shaped by their culture. Even in organizations, culture which often derives from national culture significantly shapes the behaviour of the people involved (Jackson, 2011). Cross border cultures vary markedly and these have a significant bearing on the way people in an organization behave. This view is also supported by Lin (2003, p. 1) who “argues that negotiation approach is conditioned primarily by relational contextual variables, e.g. relationship commitment and relative power, that national culture exerts direct influence on the preferences for negotiation approaches, and that national..” It is therefore important for the negotiators to be wary of the other people’s national cultures in order for them to engage in meaningful and fruitful negotiation. 5. Discussion/ analysis and evaluation Hurn (2007,p. 354) states that “Negotiating across borders differs markedly from negotiating within the domestic market. A number of new factors have to be considered, including different languages, cultural sensitivities, legal systems, tax regimes, labour laws and different business practices.” Qualities such as good listening skills, cultural sensitivities, orientation towards people as well as willingness towards team assistance are all essential. However, the case of Babcock indicates that there are some cultural differences that have impacted the negotiations of the business venture. For instance, the British are straight to the point of business while negotiating while the Brazilians are used to a more relaxed and social environment when negotiating. Language barrier is another impediment that has been observed that can hinder negotiating across borders as illustrated in the above case. “In negotiating across cultures, there is often a need to use translators and interpreters,” (Hurn, 2007, p. 355). This can help both parties to mutually agree on whatever they would discuss. It is also imperative to carry out a cultural review before engaging in a negotiation with other people who come from a different cultural background from yours. Research has also found that communication is vital when doing business across borders. Fujio (2004, p. 331) states that “the role of communication is crucial in the case of global companies where serious miscommunication could be caused by cultural elements as well as linguistic ability: little shared knowledge in cultural behaviors, business customs, the way of discussion or communication styles.” As illustrated in the case of Babcok, negotiation for a business venture with the Locomocao Company of Brazil has been hampered by issues related to miscommunication. The Brazilians are used to a jovial communication environment while the British are particularly concerned about discussing business issues. It is essential for the officials at Babcok to change their approach to negotiation and try to be accommodative to other people’s cultural values in order for them to reach a mutual agreement. Lin (2003) also found that national culture primarily influences the negotiating style of different people involved in a particular business. According to Korac-Kakabadse et al (2001), better understanding of communication styles used by different countries can be used to address the difficulties that arise in cross-cultural face-to-face encounters. Gopolan & Stahl (2001) also state that individuals must take their time to learn other people’s cultures before engaging in business with them. Therefore, the managers must take their time to learn the communication styles that are used by the people in the host country so that they can be in a position to create mutual understanding with them. In this case, the British must learn the Brazilian way of communicating since they are the ones intending to establish business in that country. 6. Conclusion Over and above, it can be observed that negotiating across borders is often influenced especially by factors such as language as well as cultural sensitivities as illustrated in the case of Babcok and Locomocao in their bid to negotiate for a joint venture. Research has shown that each organization has beliefs that are shared by people belonging to it and these beliefs are shaped by the values of these people. According to Dbhaibo & Harb (2010), the values are used to shape the behaviour of people in organizations and institutions and they also shape the attitude and behaviour of people. Therefore, whenever doing business in global environments, it is imperative for the management to review the cultures of other people from other countries so as to be in a position to engage in meaningful negotiation. As illustrated in the case above, there is need for change in the culture of Babcock. Its approach to managing diversity is not compatible with other cultures. This emanates from the notion that the leader’s character is culture bound (Judge, 2001). The culture of an individual has a bearing on the way he or she behaves hence the managers in organizations should take cognisant of this fact. 7. Recommendations It is recommended that organizations should use translators and interpreters when negotiating across borders. It is also recommended that the management at Bobcat should be accommodative to the cultural values of the other people when negotiating. It is also recommended that the management should standardise the culture of the organization. Korac-Kakabadse et al (2001) state that mutual understanding among the people from different cultural backgrounds is likely to be improved if the culture is standardised to reflect the values of all people. It is also recommended that further research should be carried in order to establish the measures that can be implemented in order to bridge the cross cultural gap that exists between people from different nations. References Amos TL et al 2008, Human Resources Management. 3rd Edition, JUTA: CT. Dbaibo, D & Harb, C 2010, ‘Values and Justice as Predictors of Perceived Stress in Lebanese Organisational Settings’ Applied Psychology: An International Review. Gopolan, S & Stahl, A 2001, ‘Application of management theories and practices to Indian­ business environment: understanding the impact of national culture,’ American Business review. Fujio, M 2004, “Silence during intercultural communication: a case study,” An International Journal Vol. 9 No. 4, pp. 331-339. Hurn, BJ, 2007 “The influence of culture on international business negotiations,” Industrial And Commercial Training, VOL. 39 NO. 7, pp. 354-360 Ivancervich, JM, Konopaske, R & Matteson MT 2011, Organizational behaviour and management, 9th Edition, McGraw-Hill, New York:NY. Jackson, T 2011,"From cultural values to cross-cultural interfaces: Hofstede goes to Africa", Journal of Organizational Change Management, Vol. 24 Iss: 4 pp. 532 – 558. Jackson, SE & Schuler, R 2000, Managing Human Resources: A Partnership Perspective, South Western College Publishing: NY. Judge, WQ 2001, ‘Is a Leaders Character Culture-Bound or Culture-Free? An Empirical Comparison of the Character Traits of American and Taiwanese CEOs.’ Journal of Leadership & Organizational Studies, Vol 8: 63. Korac-Kakabadse et al (2001), ‘Low- and High-Context Communication Patterns: Towards Mapping Cross-Cultural Encounters’ Volume 8 Number 2 2001. Lin, X 2003, “Negotiation approaches: direct and indirect effect of national culture,” International Marketing Review, Vol. 20 No. 3, 2003pp. 286-303 Marzano, R, McNulty, B, and Waters, T 2005, School leadership that works. Alexandria VA: Association for supervision and curriculum development. Schultz, S et al 2003, Organisational behaviour, Van Schaik Publishers: CT. Werner, A Et al 2007, Organisational behaviour: A contemporary SA perspective.2nd Edition. Van Schaik Publishers: CT. Bibliography Hofstede, G 1993, ‘Cultural constraints in management theories.’ Academy of Management Executive, Vol. 7, No. 1. Lin, X & Miller, SP 2003, ‘Negotiation approaches: direct and indirect effect of national culture’ International Marketing Review, Vol. 20 No. 3, pp. 286-303. Robbins, SP 1993, Organisational behaviour: Concepts, controversies and Applications,6th Edition, Prentice Hall: NJ. Susan, EJ, & Randal, S 2000, Managing Human Resources: A Partnership Perspective, South Western College Publishing. Appendix 1- Email to management of Babcock To whom it may concern I write this email to present the problems currently bedevilling the company as I see them. I believe that a specific course of action should be taken in order to solve these problems since they may pose a major challenge to the operations of the company. First and foremost, I have realised that the emergence of cultural differences in global markets where the company operates is a cause for concern. The company’s cultural values are not compatible with the values of the people in host countries in the global environment. A good example can be drawn from the case of Brazil. The other issues are that structure and communication are top down to enhance coercion in achievement of the desired goals. This is likely to strain the relationships between the management and the employees in the long run. This scenario is likely to pose challenges to the viability of the organization. A joint venture with the Locomocao proves to be challenging since there is a wide difference between the cultures of the British and the Brazilians. Risk tolerance is also low as projects must be delivered to Babcock and industry professionally of which that is not the case. I am strongly convinced that these issues need to be treated as a matter of urgency. Failure to do so can be suicidal to the company. I hope you will take note of the points I have raised for the betterment of the organization in its performance. Yours sincerely (signed) Read More