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Managing Organizational Change

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Managing Organizational Change

The current business world is faced with diverse challenges, which permits Management

to changes the processes, job roles and organizational structures. Both competitions and

technological changes which arise from dynamic business environment are the factors towards

the modification of organizational culture. Actually, it is the personnel of the business who

ultimately change how they do their work not organization itself (Armenakis & Harris, 2009,

p.124). If these people do not embrace the new transitional working ideas, the management

initiative will change. Change Management Initiative is a mechanism of implementing strategies

and methods for instigating change and helping people to accept and adapt to the change. For

example; Nestle initiated management changes purposely to improve customer base and

productivity. This initiative is deemed successful if workers embrace and adopt the changes

necessary by the initiative, thus delivering expected results. This case study will analyze the

Change Management initiative in relation to the Nestle Management ingenuity and goals.

In normal circumstances, changes are usually unique as well as individuals, therefore it is

not possible to change employees. Although, Management actions can inspire employees in their

personal capacity .Change management assists in transforming employees from current states to

future states by assimilating changes as means of development. This does not only creates

benefit to the employees but also the working organization (Bish, et al., 2015, p 535). It is

generally believed that people are naturally resistance to change.Thefore, for change

management initiative to be successful, incorporation of every stakeholder becomes essential.

This means the most single perplexing task most managers face is leading their cause or

Organizations in actual change. Nestle a multinational company involved in manufacturing of

diverse products including health and wellness factor has been embracing change management

initiative, with a mission of providing their customers with broad range of nutritious products.

Management faced challenges of addressing the change motives to its employees.

Key Pressures Influencing Organizational Change

For Management to decide on Managing Organization changes, it must consider several

factors which may arise both internally or from external environment. For instance, Nestle

implemented a complete overhaul of its executive board and replace it with ten new executives

in an effort to build companies strength. This initiated the guide for the company’s

organizational changes. Therefore, the critical consideration is company’s goals and mission.

Technology is the key peripheral pressure which call for the management for

changes. The rate of technological change in the business world, influences production and

management techniques. This changes the nature of jobs workings at all the levels of the

company. Computer technology has created an automated mechanism of business management

which have made a remarkable impact on the functioning of the organizations. Nestle has

adapted Modern technology which has improved productivity as well as minimizing costs. The

effectiveness of the modern technology drives management towards adopting new technological

innovations thus reshuffling its organizations set ups.

Competition creates an environment in which business engage in innovations with an aim

of acquiring market dominance. Market conditions are usually dynamic. These conditions are in

the process of rapid changes which needs immediate response from the organizational

management. Sales may decline as a result of stiff competition in the market. If business desire

to stay viable in the market it must compete by altering the way it operating or changing the

product line.
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Customer are the key stakeholder to any business. They directly influence business

success, therefore any complain in relation to how company behave towards customers or

unsatisfied with companies policy can initiate management change. Customers can also apply

compression while denigrating the organization by making frequent complains. To solve these

customer complains, Organization must initiate changes in its operations activities.

Changes in Managerial personnel which may be necessitated because of either retirement,

promotions or transfer can create need for the change intiative.Ideally every leader take along his

own concepts and the way of operation in the company. Relationship especially the casual ones,

changes with the change in ownership positions. The initiation of new philosophies and

management styles attracts new ideas thus leading to management changes.

Deficiencies in the existing organizational structure. In most cases, Organizational set-up

may fail to create a viable manageable span of management (Stephen, 2013, p.24). This may

result from numerous management levels, poor coordination and lack of uniformity on policy

formulation amongst the department. However the need for the change may remain unrecognized

until some major crisis occurs.

Catastrophic events can wipe out a business. These events can enforce business to

surrender some of its activities in an effort to minimize losses. To remain operating, an

organization might be forced to adjust its activities, with an aim of accommodating the new

positions and requests of its clienteles.

These factor may influence change management in different levels. To embrace change

amongst the employees, examination of how different people perceive changes important. It

further requires assimilating the awareness on what will help people make successful transitions,

time required for embracing the change and how to train people on demonstrating new behaviors
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(Davenport & Ronanki, 2018, p.30). It’s only through assimilation of individual change

management that organization can eventually realize initiative change management.

Consideration of enterprise change management capability helps organization in determining the

situations for accepting the change. For example; Nestle could only accept changes depending on

its capability. This capability requires a strategic approach to implant change management

through the organizations set up.

Diagnosing the need for the Organizational Change

Before assimilating any changes in an organizational set-up, it’s important to evaluate

different diagnostic model available for change management. Diagnostic tools allows for a rapid

analysis of the main problem thus helping to deal with a situation stepwise (McFillen,2013,p.

83)Although models of changes follow the similar themes, different models can be used for

different changes.

Kurt Lewis Three step model

This model focuses of creating a resistance environment to the factors to change. Although is a

popular organization change mechanism it’s not frequently used due to the competition rates and

technological factors. For example, Nestle being a premier organization in production of

nutritious products, any change enforced by the external factors need to assimilated in an effort

of ensuring persistence success in the market. The three step model highlights the need for

unfreezing, change and freezing. Unfreezing refers to destabilization of the current

organizational norms (Burnes, 2004, p.1000). .This model can used to highlight the forces for

and against the need for change. This is usually important because without identification of a

need for change, people will be reluctant to follow the idea. Change refers to adding in

some articles. These actions are taken in aim of getting organization from the way it was
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working before. For example, Nestle added article which reflects on the frequent changes in

management in case of persistence loss. This initiated a management model which aims at

assimilating changes depending on the productivity based on the current competition levels.

Refreezing refers to making the change stick to the organizations norms.

Nestle decided to change its focus from the local Swiss Market to the other part of the

world such as North America. The Main endeavor during this organizational change phase is the

managers to maintain work balance and operational tranquility by working together with other

organizational members. The current Nestle operations, were carried in a way that the

organization can add some articles depending on the host market adaptability theories. New

Markets are usually embarked with high level of external forces. Assimilation of those forces

creates a room for effective change, in an effort of tapping new customers. In a competitive

environment where change is inventible, organizational managers are frequently expected to

behave like change agents and advocates for change. Although this model advocates for

incorporation of all organizational employees irrespective of rank.

To effectively assimilate change management in an organization like Nestle, it’s

important to consider the organization capability as well as the market share. An evidence based

approach, which refers to the previous change approaches by the leading organization lays a

foundations for existing companies to assimilate in determining the change directions. For

example, The Nokia decline from the market is usually related to management decisions,

dysfunctional organizational structures and growing bureaucracies within the organizations.

These factors delimited Nokia from achieving competitive advantage in the market. The change

of existing organizational management to align company’s competitive level with the current

market demand is essential for assimilating change.

Kotters eight stage Model is one of the most frequently used tool for managing changes

in the leading organizations across the world (Hackman, 2017). It highlights how organizations

might achieve the selected change process without engaging a lot of financial and human

resources factor. This model is referred as the most modern tool towards achieving best change

management in any organization.

Creating urgency is important in ensuring that people within organization understand

clearly the situation leading to change. For example, letting the people within organization

understand the need for the customers. The need to assimilate all the stakeholders in making

critical decision in an effort to create an environment free from resistances.

Creating a good coalition in a change management is very important. This means creating

a collaboration amongst different stakeholder with a purpose of achieving a goal of positive

change management. For example, good leaders lead by example by encouraging others towards

the change.

Development of a vision strategy arises in a situation where business merges with an

emphasizes of achieving a competitive advantage in the market. Without better vision or local

plan an organization can rarely inspire the kind of best action needed to produce a major change.

For instance, Nestle focused on inspiring employees with an aim of limiting resistance to the

changes. In this situation Leaders needed to show leadership qualities of empowering their

followers to perform particular task. These qualities include motivation and communication

qualities.

The organizational internal powers based upon the Managers is the key determinant of

the success level. The pressures to the organizational change can only be challenged by ensuring

better coordination as well as proper communication channels amongst the stakeholders.

The result of Change

The Nestle change created a positive impact on it productivity. Although the result were

adverse in first year of operation, the consisted changes reveals an increase Return in Capital

invested. The real internal growth raised by 2.9% as well as the pricing of about 0.6 percent.

Underlying business earning per share increased by 11.1 percent (Akhtar, Xicang,& Iqbal,

2017,p.230). These stastics embraced the need for organization change in case of lower

productivity and adverse market environment.

Conclusion

The role of any organizational changes management is related to the success of the

organisation.Leaders are required to justify the need for the change, the nature of change and the

challenges likely to happen in case of change (Caldwell,2013,p.30). They are also tasked with

picking the appropriate strategy to implement change and make it acceptable amongst the

organizational members.

Managers should not ignore the role change plays in an organization, therefore they

should dedicate necessary resources to achieve a particular change. By doing this organization

will achieve success both in sales and customer base. Pressures to changes can only be

minimized if there is closer coordination amongst the organization members. The success of

Nestle is as a result of change is operational dimensions.

Reference

Armenakis, A.A. & Harris, S.G. 2009, 'Reflections: our journey in organisational change

research and practice', Journal of Change Management, vol. 9, no. 2, pp. 127-142.

Bish, A. Newton, C., Johnston, K. 2015. ‘Leader vision and diffusion of HR policy during

change’, Journalof Organizational Change Management, vol. 28 no. 4, pp.529 – 545.

Burnes, B. (2004). Kurt Lewin and the planned approach to change: a re‐appraisal. Journal of

Management studies, 41(6), 977-1002.

Caldwell, St. D. 2013. ‘Are Change Readiness Strategies Overrated? A Commentary on

BoundaryConditions’, Journal of Change Management, vol.13. no.1, pp 19-35.

Davenport, T. H. & Ronanki, R. 2018, Artificial Intelligence for the Real World, Harvard

Business Review,vol. 96 no. 1, pp. 108-116.

Evidence-based Approach, Journal of Change Management, vol.13.no.2, pp. 223-246.

Hackman, T. (2017). Leading change in action: Reorganizing an academic library department

using Kotter’s eight stage change model.

McFillen, J. M. O'Neil, D. A., Balzer, W. K. & Varney,G. 2013, Organizational Diagnosis: An

Nunes, Paul and Breene, Tim, 2011, ‘Reinvent Your Business Before It’s Too Late’ Harvard

BusinessReview, vol. 89, no 1/2, pp, 80-87.

Akhtar, S., Xicang, Z., & Iqbal, S. (2017). Impact of Brand Image on the Profitability of Firm,

Analysis of Nestle Company Pakistan. Review Pub Administration Manag, 5(230), 2.

Stephen, D., 2013, Ten drivers of radical management in the “creative economy”, Strategy &

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