The Concept of Organizational Change - of Heinz Company - Case Study Example

Principles of Management Name: Course: Tutor: Institution: Date: Table of Contents Table of Contents 2 Question 1: Adopted Change Process 3 Question 2: HGPS Implications of the Organization 4 Question 3: HGPS role in Fostering Creativity and Innovation 5 Question 4: Barriers to Organizational Change Process 5 Conclusion 6 References 7 Introduction Increasing global economic changes as well as the improved global competition has necessitated the need for organizational changes. As such, a majority of the global multinational corporations have resulted to the adoption of change process programs and initiatives in a bid to increase their market industry competitive edges. This has been the case in the food industry, where competition and changing social structure and awareness have greatly impacted on the consumer buying decision models. This report evaluates the Heinz Company case study and its application of the continuous improvement change process in a bid to retain its competitiveness in the food industry across Australia, Europe and USA. Question 1: Adopted Change Process An organizational change processes have two basic alternative approaches namely the cal waters and the white waters approaches. On one hand, the calm waters approach applies the Lewin’s change model approach and structure. In this regard, the approach works on the assumption that the change process is static and can be rightfully defined and expressed. As such, the change scope is predefined prior to the execution of the actual change process (Covell and Walker, 2013, p.354). Further, the approach works on the assumption that the developed change objectives are static and has definite results and execution timelines. In its application process, the approach has three basic stages namely the unfreezing, moving and refreezing stages. On the other hand, there is the white waters approach. This approach is based on the reality that organizational changes operate not only under internal influential factors, but also external influence. Therefore, it accepts the fact that changes scope and execution plan is not static and varied based on situation and external factors influence. Therefore, the approach is based on a flexible platform through which the change process roadmap is adjusted as need be. Based on the above review as well as the evaluation of the Heinz Company case study, it is apparent that the organization applies the white waters change approach through which the respective systems have the provision for changes as well as respective factories unique change roadmaps as per the situational and environmental factors influences contribution. Question 2: HGPS Implications of the Organization Haddadj (2003, p.137) conducted a study to evaluate the role and implications of a change process. In this regard, the study sought to evaluate the rationality and justification for a change process. Therefore, it was basically a cost benefit analysis of organizational change processes. In its review, the review concluded that organizational change processes yielded increased benefits over the incurred costs, therefore its justification. On one hand, a change process enhances increased organizational operations efficiency, an ingredient imperative for the development and establishment of increased profit margins. In addition, the change process and the associated employees’ involvement in the change process increases their skills, expertise, motivation as well as their ability in problem solving. Therefore, the program resultantly increases their performance. Based on this argument a review on the Heinz Global Performance Systems (HGPS) establishes that the system facilitated increased management efficiency. Through the global platform, the factories can benchmark performances and best practices against each other. In addition, the system allows for increased technology use in the organizational factories. For instance, the Brisbane factory, a s a result of benchmarking support under the HGPS program has enhance technology use it its management process. In this regard, the system application has allowed or increased use of hourly update charts and boards that demonstrate performances, allowing for corrective and proactive production operations strategies. Further, the program training initiative and its increased empowerment and use of employees in their management systems has facility employee empowerment, career development and improved motivation. Therefore, this report review establishes that the organization change process, its management structure, technology use and workforce motivations have been improved. Question 3: HGPS role in Fostering Creativity and Innovation Innovation is a result of creativity. Lau (2013, p.11) described creativity as the process and approach through which individuals rationally defy the rules of logical thinking and develop abstract ideas that are executed ad adopted as innovations. Therefore, the authors argue that logical thinking inhibits creativity and innovation. As such, in order for organisations to enhance and encourage critical thinking, it is imperative to reduce on bureaucracy and traditional cultural perspectives. Increased employee empowerment and the decentralization of an organisations decision making process serve as key among creativity and innovation enhancement factors. Based on this, an evaluation of the Heinz Company HGPS change approach reveals that it supports employee empowerment and support. In this regard, the approach entrusts with respective factory employees with the mandate of developing their factories change unique roadmaps, an approach encouraging creativity and innovation in the organizational workforce. Therefore, the organizational change process supports creativity and innovation. Question 4: Barriers to Organizational Change Process McGuire and Hutchings (2006, p.193) conducted a study evaluating the nature and challenges facing organizational change processes. In the review, the study established that organizational change processes face both internal and external challenges. Therefore, it is accurate and correct to presume that the HGPS change process encountered internal problems such as lack of labor experience and decision making capability. As such, this exposed the change process to the risk of poor decision making. In order to overcome this challenge, as already evidenced by the case study, the organization resulted to staff training as a staff empowerment program. Moreover, externally, the organization faced the challenge of environment diversity for its dispersed factors. Subsequently, it overcame the challenge through the adoption of diverse change process road maps for the respective industries. Conclusion In summary, this report evaluates the concept of organizational change, with a case study on Heinz Company. In its review the report evaluates the change approaches a and models, implications of change in an organization, role of change in facilitating organizational creativity and innovation, as well as challenges facing organizational change process. Conclusively, this report resolves that the white waters approach is ideal for continuous approach changes. Further, it establishes that despite the internal and external change challenges, it has great implications on organizational creativity and innovation levels. Therefore, the report concludes that organizational change is a significant development worth management support and finance. References Covell, D., & Walker, S. 2013, Managing sport organizations: Responsibility for performance, Routledge, London. Haddadj, S. 2003, "Organization change and the complexity of succession: A longitudinal case study from France", Journal of Organizational Change Management, vol. 16, no. 2, pp. 135-153. Lau, J. Y. F. (2013). An introduction to critical thinking and creativity: Think more, think better. Hoboken, N.J: Wiley. McGuire, D. & Hutchings, K. 2006, "A Machiavellian analysis of organizational change", Journal of Organizational Change Management, vol. 19, no. 2, pp. 192-209. Read More