Manage Organisational Change - Case Study Example

MANAGE ORGANISATIONAL CHANGE By Manage Organizational Change The Assessment 1 The Fast Track Courier PTY Ltd is a delivery company running small packages across metropolitan Sydney. The company wants to initiate some changes within its operations that will enable it take advantage of new and emerging opportunities of business. For instance, the company has an opportunity of building and consolidating its market share within Sydney by increasing its market share by 7.5%. This in turn will increase its revenue and capital returns from undertaking its duties and business activities. However, in order to achieve this, the company has to increase, as well as, improve its operational efficiencies, reduce the period taken for delivery services, and expand its track fleet to enable it meet the demands of the newly expanded market sphere. This also requires that the company develop an improved distribution system that will enable it meet both market demands, as well as, the company goals as enshrined in the strategic plan of the company. Consequently, the company has specific requirements for change, and the appropriate implementation of these changes is what will determine the success of the company, especially in relation to its market performance and expansion plans. For one, it has to increase the number of its track fleet by introducing eight more tracks in addition to its current fleet. This means that is has to have new drivers that will operate the new tracks. However, the company does not plan to hire any new drivers for the new job openings, but to reduce the number of drivers per track from two to one. this will be possible after the company introduces a lift on the back of each track that will facilitate lifting of heavy packages, thereby eliminating the necessity of having two drivers per track in a given delivery, another change that the organization has to consider how the employees, especially the drivers already used to working in pairs will take. The organization already has a history of the drivers’ aggressive resistance to change, majorly considering that they are the main link that will facilitate the operationalization of these new plans to increase the company’s market share. The effective implementation of these changes meets the strategic goal plans of the organization, whereby it targets to increase and expand its business to the larger Sydney metropolitan area, as well as, increase its medium size package deliveries market by 7.5%. The strategic goals of the company also intend to develop an integrated approach to distribution management by making use of the new and advanced technology such as the PDA and the GPS services. This will enable the company to have a cohesive and well-maintained workforce, which enhances its productivity. The current state of the organization provides a lean organizational structure with one CEO, one CFO, an accountant, twenty drivers, and some office staff. In total, the company has about 30 members of staff. The executive communicates with the office staff through their email, whilst it does the same to the field operatives through a printed monthly newsletter, especially for the drivers who spend most of the time in the field. The company also has an operational manual that goes with every track detailing the rules and procedures of delivery. Currently, these are the strategies employed by the company in order to deliver on its strategic goals. However, the performance of the organization according to its people pulls down its productivity considerably. Only the office staff shows eagerness and enthusiasm in handling their duties and responsibilities while at the company. On the other hand, the drivers who are the core of the company are a disgruntled lot as evidenced through their poor scores in employee engagement, low turnover, heavy unionization, as well as, industrial disputes regarding pay. Furthermore, these employees rudely refuse to involve themselves or participate in any learning or development activities, especially internal affairs relating to the organization. The processes within the organization also promote the achievement of the company’s strategic goals. The company introduced a tracking device, which controls the delivery and transport of packages across the city. This means that the company can track of the routes taken by drivers in delivering packages at various destinations, as well as, time their work performance. This reduces the rate of time wastage especially because the drivers know that the office is monitoring their movements, and as such, will not waste any time in delivering the packages, or taking the wrong routes as designated by the company. The PDA and GPS technology used by the company to undertake its delivery services increases its efficiency, especially in terms of timeliness and speed. On the other hand, the structure of the company also promotes the effective execution of its mandate, especially considering that it is lean and well organized. Externally, the new wave of technology and development is fast sweeping the market. This is true in accordance to the new developments in technology, and the availability of market expansion opportunities that will guarantee the growth and development of each company. For instance, the company has to embrace new and advanced technology, especially the one employed in lifting heavy packages to the tracks, instead of having two workers at the track, and the tracking technology to ensure timeliness and efficiency in delivery of order to their customers across Sydney. Secondly, the company has to introduce change within its working operations, which is another difficult task especially if the employees do not accept and support the change, but on the contrary fight and oppose the change. The Fast Track Company has a history of notorious employees resisting change by even going as far as involving the unions in order to stop the organization or the management from implementing the planned change. However, the organization has to adapt and implement this change in order to progress with its strategic plans. The organization has to adopt these changes or will continually run behind in efficiencies and convenience when undertaking their delivery services. for instance, the lack of adoption of new technology, especially that in relation to lifting heavy packages will require the company to maintain its current working structure of two drivers per track so that they can assist each other in carrying or lifting heavy packages to the back of the track. However, adoption of new technologies enables the organization introduce new efficiencies in handling its clients’ packages. As such, the company can make use of the extra work force in getting more tracks. For instance, the drivers freed after the implementation of this new plan will go a long way in assisting the organization run its expansion strategy by acquiring eight new tracks to expand its operations across the metropolis of Sydney. In addition, the organization also has to undertake various major operational change requirements in order to seal the various loopholes experienced in a number of its operations. These are operational change requirements that are necessary in the development and facilitation of change, such as performance gaps, business opportunities, threats and management decisions. For instance, the changes required for the company to undertake in relation to performance gaps are, introducing a lifting technology at the back of each delivery track, which will enable drivers to lift heavy packages on their own. This will in turn free the extra driver to rides along every delivery o assist in lifting and packing heavy packages. As such, the company can use these freed drivers as the necessary personnel required to operate its new fleet of eight tracks used in an expansion program by the company. on the other hand, the company will also be free from work place suits concerning injuries that employees get while undertaking their duties at the corporations, such as while lifting heavy packages for delivery at their customer’s destinations. The company also has to make changes owing to the changing dynamics in the business environment. These changes enable the organization to take advantage of emerging marketing opportunities, such as the new opportunity to increase its market share across Sydney by 7.5 percent. Consequently, the company has to change in order to take advantage of this new market opening, and incidentally, increase its proceeds from its operations through an increased work portfolio. One of the most instrumental changes the organization has to take in line with this development is to increase its number of fleet of tracks by eight, and reduce the work pattern of drivers from two drivers per track to one driver per track, in order to fill the new demand of drivers created by the introduction of new tracks. The larger the fleet of the organization, the more trips it will be able to manage, and consequently, the higher market sphere it will be able to control and manage. The company faces certain threats to its business activities, especially emanating from its employees, and particularly the drivers. The company will have a big problem in instituting change within the organization since most of the drivers are anti change, and as such, will fight the management ferociously in order to block or oppose every implantation of a new change program within the company. This refusal to adopt change easily drags the organization into the old age whereby it undertakes its business activities and responsibilities using the old platforms of operations. As such, it becomes lesser and lesser competitive, thereby losing out on various market opportunities, such as the new opening for the company to increase its market share and operations within Sydney metropolis by 7.5 percent. Changes due to management decisions occur when the management wants to institute new practices and operations within the organizational culture that will enable the company increase its efficiencies, as well as, improve in convenience and effectiveness while dealing with their customers. For instance, it was the management decision to choose the best way to communicate to its members of staff, such as the emails platform for the office workers, and through printed monthly manuals for the field operatives. The management adopted these changes with the mind that all their employees had a certain platform of accessing important information about the company. For instance, it would be wastage of time to send an email to a driver with instructions of the new company policies and procedures yet he does not have time to sit in front of a computer and access his mails. Neither does the company provide the drivers with a Smartphone that would on the other hand enable them to access such email notifications while on the go. As such, the management decisions affect the performance of the organization through dictating the various change mechanisms it has to adopt. The organization can consult various experts in order to come up with the right changes that will enable the organization map its place within the Sydney market. These experts are filed professionals who understand the various operations of the markets and how best to take advantage of every changes or new developments within the market structure. for instance, the company can consult an engineering technology expert who will advice them accordingly on the best lifts to purchase and install on their tracks for lifting heavy packages, and in return free the extra driver that rides along every delivery to assist in lifting heavy packages. Other consultants are the people involved with developing new tracking devices systems, such as the PDA and the GPS tracking technology systems. These two experts enable the company to tack the movements of its tracks with the drivers out in the field, as well as, ensure that these drivers keep to the recommended routes and take the time stipulated in order to eliminate lateness in deliveries, while brining in efficiencies and timeliness in delivery of packages to the customers. This also introduces convenience in the company’s undertaking of its operations The Venn diagram puzzle is actually one of the best models of consultations used by the company. This is similar to the doctor-patient model whereby two parties, one without knowledge and in need, the patient, and the other with much knowledge, and willing to give it, the doctor. This involves putting the ideas of various participants together in order to come up with an idea that has unanimous support, as well as, commands mutual acceptance across the entire divide. consequently, it is also imperative for the party seeking change to have some cognitive knowledge of what really needs changing within the organization, as well as, the benefits that the organization will enjoy owing to the changes instituted within the company. This model has circles, and each circle represents the parties involved in the development of change, such as the management executives, the workers, the change expert or consultant, as well other controlling market forces and developments, such as PESTEL (Appendix Figure1) and SWOT factors of the company. The managers that need to know about the execution of change within the organization are the Chief Executive Officer, who is the overall leader and decision maker within the organization. The Chief Financial Officer also needs to know of the planned changes within the organization, especially in relation to the amount of monetary funding the finance department will have to extent to the change program in order to fast track its effective implementation. The plan of implementing change begins from the management then goes down to the workers. As such, the manager in charge of the particular operation will suggest and come up with the best way to implement a change or procedure within the company. According to the company’s change requirements, the first move is to introduce lifts onto the back of every tack that will enable the drivers lift heavy packages. This will in turn free more drivers working in pairs at a single truck. The next change step is to buy new delivery tracks and assign them to the drivers freed after the implementation of the first change. This will reduce any opposition from workers who may reject these changes knowing they will be jobless at the end of the day. The Assessment 2 The company has two main goals of the organization through implantation of these changes are two. The first goal is to implement a PDA/GPS usage (productivity function) on truck fleet in the first quarter of the financial year 2013. The second major goal of the organization is to implement the one person/truck policy using automatic lift gates in the first quarter of the financial year 2013. These two main goals will enable the company to achieve most of the aspects enshrined within its strategic goals. However, the department of the company that will be very effective in achieving the specifications of this change will be the drivers, who are currently working two per truck and used to the manual labor of lifting heavy packages on their own. The drivers will have to separate and be one per truck, and this is partly against what they want or used to, which to some extent may lead to opposition and resistance to the proposed changes. The realization of the impact of these changes to the performance of the organization would be after the company expands its operations across the Sydney metropolis and increase its productivity through operating on an expansive market. These change goals relate directly to the strategic goals of the company, especially the one that requires the company to expand its operations across the metropolis of Sydney. By introducing, an automatic lift gate on the trucks used by their drivers to transports their client’s packages; the company manages to free a good number of its drivers who then go to the other eight new trucks purchased by the company in order to expand its market share and control of Sydney by 7.5%. This also enables the company to expand and enhance its operations across the city in such a manner that it will be able to enhance its profitability as well as market control within the area of operation. This will also enable the company to be a market leader in the handling and delivery of small packages within the city, hence developing its reputation. However, just like any other change introduced into the organization, the organization has to conduct an effective and conclusive analysis of this change and determine its costs weighted against its benefits. The cost benefit analysis in the implementation of this change includes the requirements of change, which entails what the business has to acquire in order to institute or implement the change objective, such as purchase of the eight new trucks to increase its fleet of trucks. This change also requires the installation of the automatic lifting gates on the trucks that will assist the drivers in lifting heavy cargo or packages belonging to the customers. The cost of change therefore relies on the value or investment that the company has to put into the purchase of new trucks, as well as, the installation of automatic lifting gates at the back of each truck to facilitate easy and efficient handling of the packages. However, this change might become very costly and unmanageable for the organization if it does not take the necessary steps to manage and contain it properly. For instance, in the event the management of the company does not consider the opinions of the workers before instituting these changes, then it risks having a lot of resistance from the workers, especially the drivers, who in turn will jeopardize all the benefits that the company would gain from undertaking these changes. The risks that the company may face in relation to these changes are the lack of acceptance of these changes by the workers, who may resist them aggressively owing to their fear of change and its effects. These changes fall into different categories. The first change or goal expected by the company falls under the feasible category, whereby the company had to fit PDA and GPS tracking systems on its trucks in order to follow up the movements of its drivers while in the field, as well as, ensures that drivers follow the strict, and laid down rules, and regulations of the company. The operational rules that the drivers of the company trucks must adhere to include such as the time taken to move from point A to point B in delivering a given package, as well as, the routes used in making these deliveries. The barriers for the occurrence of these risks are to involve the drivers in implementation of these changes, and convincing them to take particular measures in supporting the mentioned changes. This is evident through the change management plan that the company adopts. This change management plan enables the company to undertake a number of changes as stipulated within its organization strategic plan, which in turn enables the company in achieving its laid out goals and objectives. This change plan incorporates all the aspects of change within the organization, as well as dictates if these changes will be beneficial to the organization, or not, and how the members of the organization will either resist or embrace the change practices. These facts hold true in accordance to a major change management theory developed much earlier during the research and investigation of change management. This is the ADKAR theory of change management. This model outlines that two dimensions of change must occur or take place simultaneously in order for the perceived change to be very successful. These two dimensions involve the business dimensions of change, which incorporates the developments suggested and adopted by the organization, and the people’s dimension of change, which entails the progressive education and understanding of the people involved. As such, in order for this model of change to occur successfully at the organization, then both the business and people dimension must take place simultaneously. For instance, the business in this case must be willing and able to take charge of the necessary changes, and the workers or employees of the company should, be willing to support the organization in adopting and implementing the said changes within the operations of the organization. If either of the two parties does not play their part properly, then the entire plan for change will flop and there will be no success achieved in the undertakings of the company. As such, the company should fight hard to refute the resistance of change from its drivers, and come up with a strategic change management plan that will enable them to convince the workers to adopt the change practices. Change Management Plan 1. Stakeholder Management The key stakeholders are the management and truck drivers. The managers come up with the new policies, while the drivers execute the policies adopted. The managers have a high commitment level as opposed to the workers who are resistant to change. Resistance to change and cost of change are the major concerns. The organization has to prepare for them first before adopting the change. 2. Communication Plan the workers comprise the biggest part of the audience the message communicated is how to develop the operations of the company through adoption of new policies, such as the PDA and GPS tracking system, and one driver/truck policy the communication occurs at the time before the first quarter of the 2013 financial year as some of the periods’ planned growth perspectives the communication occurs through emails for managers and newsletters for drivers to access while in the field The managers and the change expert consultants are responsible for making the communications to the workers and the organization in general. 3. Education/Training Plan The participants in this change module are the drivers, and the management staff keen to undertake the required changes. Training enables drivers learn the benefits of these changes as adopted by the management, both for them and for the company. The training occurs at all times during the prescribed training period, and depending on the availability of the participants The delivery of the training will be on the job, for the drivers, and in a classroom for the mangers. The change expert is responsible for undertaking this process 4. Measuring/Reporting Strategy Measurement of success will be through the increased volume of deliveries, as well as, volume of market deliveries made during the fiscal year 2013 first quarter The reporting of success will be on monthly periodical reports, the copies of the report will go to the mangers, and other distributed to the workers. The Assessment 3 It is evident through the various models undertaken in the first two assignments that the introduction of change into the normal practices of the organization is a difficult task, especially considering the high level of resistance the workers of Fast Track motors presented against the management to refuse implementation if new changes in the company. As such, it is important for the organization to support fully a change mechanism for adoption in order for it to be very successful, and as such, bring the company the expected results in success. For instance, it is important for the organization to ensure that its workers are behind every move for change, as well as, fully support it before they undertake any steps to implement such changes. This may also incorporate involving these workers in the change management process and making them realize the importance of the changes to both the employees and to the organization. This may also develop and enhance the commitment of these workers to the organization’s goals and strategic plans. However, the company has to improve on its communication plan with its employees, especially in relation to the drivers of the trucks. Initially, the company communicates to these drivers through a monthly newsletter. This was essential because the company would communicate appropriately every new polices and periodical memos from management. this is however a big change in the organization, and in order for the company to ensure its total understanding and proper implementation, as well as, convincing some of the disgruntled workers, it is appropriate for the management to use a face to face approach. The mangers will call the drivers to a meeting and explain to them of the intended changes by the executive, and will expound on how these changes will bring benefit to the organization, and to the workers. The workers can discuss and agree on whether to support or reject the proposed changes through their representation in a union. The biggest task that managers have is to convince the workers union to prey upon its members to support the organizational changes for the benefit and growth of both the organization, as well as, the company’s workforce. The management should come up with various incentives that go along with the planned changes in order to convince the workers to support their adoption of new changes in the organization. These may come in line with an increased compensation for these drivers owing to increased company operations. Ten Minutes Information Session Date and Time Location Number of Learners Time Topic Delivered Details 9.00 am Opening statement Welcome all to today’s meeting 9.02 am Outline change -Introduce a one driver one truck policy -Introduce PDA and GPS tracking device systems 9.04 am Importance of the changes -empower the organization to expand its market sphere by 7.5% 9.07 am Changes linked to the organization’s goals -changes allow the organization to achieve its strategic goals of expansion 9.10 am Closing statement Thank you for your attention and attendance. Feedback form template on change implementation Reporting element Measures Status Change Goal Implement PDA/GPS usage (productivity function) on truck fleet in the first quarter of the 2013 financial year Project Management Delivery of project activities as per project plan for each stream Overall status: People GREEN Process GREEN Technology GREEN Structure GREEN Stakeholder Management Stakeholders engaged and comfortable with current position RED Communication Communication plans activities on schedule GREEN Education Education plans activities on schedule RED Cost Benefits Project budget on track RED Cost benefits on track to be realized RED Risk Management Risk management plan effectively managing risk RED Revised Communication Plan Audience Message – with strategic elements When Communication Method Person Responsible HR manager Change management strategies- duties of the HR manager 9.00 – 9.30 am July 1, 2013. Email – invite with agenda face-to-face – office training room CM consultant Trucking/ Operational manager Change management strategies – duties of the trucking manager 9.30 – 10.00 am July 2, 2013 Email – invite with agenda HR manager Feedback Form Dimension Description Response Training Adequate for role YES Role clarity Are roles and responsibilities clear YES Trust Do employees trust the change management (CM) process and management NO Education Is performance fairly measured NO Leadership Is leadership adequate and confidence inspiring NO Communication Is communication clear and two-way NO Procedures Are there clear and effective procedures to follow YES Recognition Is performance recognized YES Diversity Are individual differences valued and appreciated at the Fast Truck Couriers NO Teamwork Is teamwork encouraged and promoted YES Appendix Figure 1: Change Model Figure 2: Template GREEN (Completed) AMBER (In Progress) RED (Not Completed) Reporting element Measures Status Change Goal Implement one person per truck policy using automatic lift gates in the first quarter of the 2013 financial year. Project Management Delivery of project activities as per project plan for each stream Overall status: People GREEN Process GREEN Technology GREEN Structure GREEN Stakeholder Management Stakeholders engaged and comfortable with current position RED Communication Communication plans activities on schedule GREEN Education Education plans activities on schedule RED Cost Benefits Project budget on track RED Cost benefits on track to be realized RED Risk Management Risk management plan effectively managing risk RED Reference list Alas, R., 2014, Implementation of Changes in Chinese Organizations: Groping A Way through the Darkness, Elsevier, Amsterdam. Albretch, K., 1983, Organization Development: A Total Systems Approach to Positive Change in Any Business Organization, Prentice-Hall, Upper Saddle River, New Jersey Bhattacharya, M. & Sengupta, N., 2006, Managing Change in Organizations, PHI Learning PVT. Ltd., New Delhi Blokdijil, G., 2008, Change Management 100 Success Secrets - The Complete Guide To Process, Tools, Software And Training In Organizational Change Management, Lulu.Com. Boonstra, J., 2004, Dynamics of Organizational Change and Learning, John Wiley & Sons, Hoboken, New Jersey. Cummings, T. & Worley, C., 2009, Organization Development and Change, Cengage Learning, Stamford, Connecticut Doherty, T. & Horne, T., 2005, Managing Public Services - Implementing Changes: A Thoughtful Approach To The Practice Of Management, Routledge, London. Griffin, R. & Moorhead, G., 2013, Organizational Behavior: Managing People and Organizations, Cengage Learning, Stamford, Connecticut. Mackenzie, K., 1991, The Organizational Hologram: The Effective Management of Organizational Change, Springer, New York. Pasmore, W., Shani, A. & Woodman, R., 2010, Research In Organizational Change and Development, Emerald Group Publishing, London. Read More