The Need for Organizational Change - Literature review Example

MANAGEMENT FOR CHANGE Introduction The modern business environment is often very dynamic, having customers who keep changing their tastes and preferences for goods and services. In the same way, the modern business environment has also been expected to keep changing its strategies and approaches to performance in order to remain relevant in the various changing times. Part of the change process involves development of new marketing strategies, which are often needed in response to those being used by competitors. The methods of business management as well as production of goods and services have also been changing in tandem with the changing business practices. According to Graetz (2006), one of the things that has prompted the increase in the way businesses conduct their activities in the aspect of information and technology. Businesses rely on information about production, management, marketing and sales in order to develop strategies and approaches that can give them a competitive edge over their rivals. George & Jones (2007) claim that many business owners and managers spend millions of money on research, which is aimed at collecting vital information about the current trends in business practices. The information they get plays an important role in helping these businesses establish their competitive strategies. As far as technology is concerned, many business organisations are facing an uphill challenge of staying in touch with latest trends in technology, which are influencing their marketing and production approaches. Currently, the modes of marketing in most businesses are seemingly moving to rely more on technology than the conventional approach that has been common for many decades in the past. All these factors when combined, they bring to life the aspect of change, which is often said to be an inevitable step in personal and organizational life. It is on this understanding that this paper examines some of the aspects of change management in business organisations, focusing on the roles of staff motivation at Coca Cola company and how it necessitates organizational change. Organizational Change As noted above, the concept of organizational change has become a central point of discussion. It is a process that allows organisations to optimize their performance as they work towards achieving their ideal state. The process of organizational change takes place as a special form of reaction to the ever-changing business environment. The change process may be caused by a response towards a crisis in the business organisation or can also happen because it has been triggered by the leader or organizational staff. A successful organizational change process does not just happen as a process for mere adjustment, it often a lot of sufficient management of capabilities. McKinsey Consulting firm, in their five year survey (Yang, Zhuo & Yu 2009, p. 54), realized that among 1536 companies that selected to participate in the survey on organizational change, about 38% of the companies’ managers explained that the process of organizational change was responsible for increased work performance in their respective companies. According to Yang, Zhuo & Yu (2009), as far as the long-term health goals and objectives in the organisations were involved (like effective customer relations, increased company ability, positive and conducive work culture as well as supplier relations), approximately 30% of the managers that were interviewed linked all these to the process effective and successful organizational change. Therefore, from the above analysis, it becomes evident that the goals and objectives of the organizational process are highly multi-faceted. One of the goals that featured most in this analysis was the need for minimizing costs. Here, it was pointed out that an effective organizational change process was responsible for minimizing the operation costs of the organisation, while creating a ground for maximizing on returns. Other essential goals that featured prominently in this survey included bettering the performance and brand of the organisation, overcoming the challenge of competition and crisis intervention as well as mergence for stability and increased organizational performance. Seemingly, the process of an effective and successful organizational change is not just one that involves mere adjustments. Instead, it often requires sufficient management capabilities. Managers must be in a position to create strategies and approaches that are all inclusive so that the views and perspectives of all the organizational staff are factored in the process of creating the change process. The need for organizational change It is important to realize that change is an inevitable process in individual and corporate life. It is a process that marks a transition from one style, system or way of life to another, which is often deemed to be better and more effective. In organisations the process of organizational change optimizes effective performance as it aims at creating an ideal and effective state. Having realized that change cannot be avoided at any point, it is important to understand why it is important for people and organisations to undergo this important step and process. From a very passive perspective, the process of organizational change takes place in reaction to the ever-changing business and organizational environment. In this regard, organizational change takes place in response towards a certain contemporary crisis situation. Alternatively, the need for organizational change can be examined from a proactive viewpoint that explains that it is often brought about by a very progressive manager, who is focused on getting results. Additionally, this process is sometimes very evident after the particular organisation has managed a successful transfer of executive powers (Haveman, Russo & Meyer, 2001). In this regard, the new management will always want to develop and implement their management styles and approaches that are aimed at achieving better results than the former. They may propose establishments of new departments or abolishing those that they think are inefficient and merely increasing operational costs for the organisation. The effective of such a change is seen in the amount and quality of results that are realized at the end of the day. Isern & Pung (2007) gave a proposal that the reasons that necessitate organizational change can be described by the dialectical, life-cycle or the teleological theory. The teleological theory is of the view that the process of organizational change is simply an attempt to attain an ideal organizational state by a process of consistent goals and objective setting, execution of set plans, evaluation as well as constant restructuring of the organizational programs. The organization has to ensure that many of its department, including those that are key and those that are not are monitored on a continuous basis. The staff in these departments needs to be adequately motivated in order to discharge their duties in the most effective way, the role of the human resource department in this perspective is to ensure that the welfare of the staff is well taken care of s that they are productive enough in the organisation (Cummings & Worley 2001, p. 57). Elsmore (2001) says that the life-cycle theory on the other hand claims that an organisation is simply an entity that wholly depends on the outside or external environment for its growth and success. It explains that the life cycle of the business goes through the processes of birth, growth and development, maturation as well as declination. During these growth stages, organizational managers need to ensure that they achieve the most out of every step. Lastly, the dialectical approach, according Elsmore (2001), the business organisation is simply a highly multi-cultural society that has many opposing views and values. When one force seems to dominate over the rest, then a new goal and organizational value is duly established, something that brings the need for organizational change. In this regard, Cummings & Worley (2001) claims that it is important that organizational managers examine the different values proposed by the staff. They should not simply allow a certain force to dominate the rest because it is proposed by the majority; instead, it has to be a force that results in value for the organisation. A Critical Examination of the Role of staff motivation in Enabling Organizational Change: The Case of Coca Cola Company Company History According to Ricardo (2012), Coca Cola Company, the largest retailer, manufacturer as well as marketer of various non-alcoholic beverages in the United States and the world at large can be described as the market leader in its respective industry. Currently, the company has been offering in excess of 500 brands in countries and territories that exceed 200 in number. The company runs a highly franchised distribution system that dates back all the way to 1889, the time which the company was formed (Ricardo 2012, p. 67). In its business structure, the company simply manufactures the syrup concentrate that is later sold and exported to various bottlers across the world and who are in charge of certain exclusive territories. Coca cola Company has its headquarters in Atlanta, Georgia, which is its anchor bottle, operating in the entire North America, offering all kinds of Coca Cola refreshments (Senker & Foy 2012, p. 45). The success of the company’s management and competitive approaches have made it to maintain its particular position as the market leader in the industry that is attracting other companies to come and try their prospects in the industry that has been dominated by these market leader for more than a century. Company’s organizational structure Senker & Foy (2012) claim that the company’s organizational structure, it can be described as being “tall;” in this perspective, the Coca Cola Company can be said to be controlled by a carefully designed vertical hierarchy such that the role of strategic decision making is bestowed on the company’s top level or upper management. However, some of the routine and daily decisions in the company’s management are left to line managers, who form the middle-level management at the company (Senker & Foy 2012, p. 76). So far, Coca Cola Company is said to have more than 700,000 employees, which comprises of its bottling partners, with the company’s business operations going in more than 200 countries across the world with six main geographic operational segments (Senker & Foy 2012, p. 87). The headquarters for the company has the responsibility of providing the general direction and support to all the company’s regional structures. In this case, the regional managers are expected to ensure that they are in constant communication with the company’s headquarters in order to keep abreast of the latest changes in the company’s operations and other important functions. Each of the company’s separate divisions has a particular marketing manager, financial director, director of public affairs among others. In case each of the divisions plans to implement a certain decision, for instance, creating a advertisement campaign, they division is supposed to contact its superiors at the head office in order to get approval for the exercise. The communication process has to reach the company’s headquarters in the United States; here the executive committee takes time to analyze the idea and makes its final decision concerning its implementation (Gilhuly, 2014). The decision made by this executive committee is the final and has to be followed to the later, something that has seen the company reach its current level of performance and success. The company’s functional organizational structure is shown below. Fig 1. Coca Cola Company’s organizational structure (Senker & Foy 2012) Staff motivation at Coca Cola Company As pointed above, Coca Cola Company can be described as a very huge and successful international brand, which has thousands of employees across more than 200 countries in the world. The company has managed to set in place certain practices that ensure its employees keep being motivated in order to deliver their best in the interest of the company’s growth and success. The motivation structure at the company has made its employees feel like they are meant to stay at the company for a very long time (Pathak 2010, p. 32). Over the time the company ash been in existence, the need for productivity has often made the company to develop new systems and approaches in order to ensure consistency in its performance. So far, the company has managed to create an effective staff motivation system, which has seen create and maintain its competitive edge in market that has some of the emerging giants like Pepsi Cola, which has become the greatest competitor especially in the United States and few other countries in Europe and Asia. The company believes that the success of its management and business approaches lies in the effectiveness of the strategies developed towards enhancing employee success and performance. Theoretical approaches to staff motivation to staff motivation at the company One of the greatest Greek philosopher and scholar, Heraclitus claimed that in life; there is nothing so far that is permanent compared to change (Pathak 2010, p. 43). In his perspective, change is the most important process that is at the epicenter of the universe. According to the philosopher, the process of change management is very essential in human and organizational life. It is important that for effective organizational change, companies should have a structured process that outlines the goals and objectives of the organisation. The process offers the employees of a business organisation the chance to make and accept changes for the existing business environment. The company is expected to develop and implement various strategies that can enable it in coping with the kinds of changes that it wants to achieve. At Coca Cola Company, the need for efficiency has made the company to develop organizational changes, most of which have led to effective staff motivation, which have led the company to succeed in its beverage business across the world. In its growth and development, Coca Cola Company has been described as being in need of constant changes not only in the manufacture of products and services but also in its business strategies, external environment as well as consumer expectations. Having a sound marketing strategy and a business strategy that has been effective for a long time, the company has invested millions of money in staff motivation, which is deemed to be effective in ensuring that the strategies and business approaches are effectively implemented. The need for continuous staff motivation in the company’s organizational change process is aimed at triggering various events for making the change process to function in the most effective way. The implementation of these changes will continue to successfully guide the company in the process of its transition to an effective and successful company in the entire globe (Haveman, Russo & Meyer 2001, p. 64). Generally, the need for organizational change in any business is often brought about by various factors in its external and internal business environment. For instance, the new emerging companies in the non-alcoholic beverage industry and others is cause a major staff mobility, something that threatens companies that have been dominant in the respective industries. For Coca cola, the emergence of Pepsi Cola among other non-alcoholic beverages has meant that staff is looking for the company that offers the best motivation program besides the normal salary remuneration at the end of the month. Other factors that trigger organizational changes in Coca Cola Company from the external business environment include changes in the labor markets, economic factors, changes in government laws as well as market conditions all of which are very dynamic. In terms of the internal factors, Coca Cola Company has had to initiate various organizational changes, which have been designed to increase its efficiency and effectiveness. For instance, the widening consumer market has meant that the company expands to reach many countries of the world. This calls for increased performance among its staff in order to satisfy the rising needs of its customers. Therefore, having effective staff motivation approaches has made the company to satisfactorily handle this demand without any huge challenges. Being described as one of the oldest and successful corporation in the world, Coca Cola Company has managed to go through various external and internal factors that have characterized its success and effective performance. Currently, staff motivation strategies used by the company have seen it develop an effective and efficient program that has given it a major competitive advantage that scares businesses trying to enter the market and industry in general. The company has acknowledged the fact as it heads into the future, it will continue to enhance continued investments in organizational changes that will see it achieve far greater results. Effective communication and effective results When the employees of Coca Cola Company are requested to make their views about company practices, they have confidence that their views will be taken into consideration. They understand that there is one person who is concerned about the company’s performance and success. The company has managed to develop its mission statements as well as core values around the inputs of employees. The company understands that its success is not depended on the effectiveness of its strategies and approaches but the people who can actively implement those strategies, with an evaluation to assess their effectiveness. According to Noe & Noe (2012), in the development of an effective staff development program, the company creates and implements the employee Insights Survey, which seeks effective employee insight on the ways the company is supposed to run and its future improvement plans. In this exercise, the particular survey has been regarded as being more than just a mere pen-and-paper form. It is simply in the kind of a blog or website, which is open for only a short period of time. In this survey, the company offers various ideas and response to the issues raised by its staff on the kind of management style, business practices as well as other important aspect of its performance (Noe & Noe 2012, p. 21). According to the company’s website, the company managed an 85 percent in its employment engagement, which means that it fully engaged it employees in understanding their views as far as company performance is concerned. Since the development of the staff engagement program, the company has managed to develop an effective staff development and motivation program, which has seen most of its staff prefer to work for the company for the whole of their lives. The development of this initiative has been very effective in the company’s comprehension of trends in the business environment. Generally, the development of an effective staff motivation means that the company is always ahead of the pack in the industry as far as management of change is concerned in the company’s performance. Evaluation and critique A continuous evaluation of the business environment in Coca Cola Company is very necessary in the development and implementation of effective competitive strategies. One of the importances of the evaluation program for the company is that it allows its employees that chance to grow and develop in their respective fields and perform much better. From the evaluation of these programs, the company has managed to create various development programs that have continued to inspire effective performance at the company. Pugh (2007) claims that at Coca Cola Company, peak performance has been said to offer increased performance opportunities that have often resulted in increased employee rewards. The company has managed to develop mentorship programs for its staff, which have been essential for its success. Currently, the company has managed to develop an online program for teaching environmental issues to its employees, it is expected that by empowering their staff, the company can afford to have an effective talent management and succession planning, which is essential for any large multinational and local company (Blokdijk 2008, p. 78). Inasmuch as the company has been described as the market leader and giant in the non-alcohol beverage industry, it has also been criticized for creating a market system that had made it possible for other companies to enter the market (Jones 2004, p. 87). It has often been said that competition is very essential for the development of successful businesses and reduction of monopoly situations in various industries. However, the case is not the same for the non-alcoholic beverage industry, which has so has so far managed to allow the entry of Pepsi Cola in the United States and other European countries. Conclusion In conclusion, it is important to understand that organizational change is an inevitable process in the life of an organisation. It determines the success that a company achieves in the implementation of various strategies and objectives in its growth and development. Organizational change has risen to be an important process in many organisations, following the complexity of the society as well as the process of satisfying the needs of its customers. According to Hays (2004), besides staff development, Coca Cola Company has also managed to improve its practices especially in marketing so that it remains relevant to its customers amidst the changing consumer preferences globally. The company has continued to rebrand itself so that it maintains brand loyalty among its clients across the world. So far, it will take time for any company to get a competitor that may threaten their position as the market leader in the respective industry. The company’s top leadership has created effective systems that ensure the company is always abreast of changes and trends in the market. Bibliography Blokdijk, G. 2008. Change management 100 success secrets the complete guide to process, tools, software and training in organizational change management. Emereo, Brisbane, Australia. Cummings, T. G.., & Worley, C. G.. 2001.Organization Development and Change. South-Western College Publishing, Cincinnati, OH. Elsmore, P. 2001. Organisational culture: Organisational change? Gower, Aldershot, England. George, J. M., & Jones, G.. R. 2007. Understanding and Managing Organizational Behavior (5rd). Pearson Education, Inc, New York. Graetz, F. 2006. Managing organisational change (2nd Australasian ed.). John Wiley & Sons Australia, Milton, Qld. Haveman, H. A., Russo, M. V., & Meyer, A. D. (2001). Organizational environments in Flux: the impact for regulatory punctuations on organizational domains, CEO succession, and performance. Organization Science, Vol 12, no. 5, 253-273. Hays, C. 2004. The real thing: Truth and power at the Coca-Cola Company. Random House, New York. Isern, J., & Pung, A. 2007. Harnessing energy to drive organizational change. McKinsey Quarterly, Vol1, no, 18,16-19. Jones, G. R. 2004. Organization Theory, Design and Change. Addison-Wesley Publishing Company, New York. Noe, R., & Noe, R. 2012. Human resource management: Gaining a competitive advantage (8th ed. ; Global ed.). McGraw-Hill Irwin, New York. Pathak, H. 2010. Organisational change. Pearson, S. I. Pugh, L. 2007. Change management in information services (2nd ed.). Ashgate, Aldershot, Hampshire, England. Senker, C., & Foy, D. 2012. Coca Cola: The story behind the iconic business. Wayland, London. Ricardo S. 2012. A secret history of coffee, coca & cola. Akashic Books, New York. Yang, R. S., Zhuo, X. Z., & Yu, H. Y. 2009. Organization theory and management: cases, measurements, and industrial applications. Yeh – Yeh, Taipei. Read More