Ulc A2
Ulc A2
Organizational change is the process of changing a company's structure or other key elements
such as infrastructure, technology, etc. to improve operations and meet new challenges.
Organizational change is essential for companies to grow and achieve success. It is important for
any organization because without making changes, companies can lose their competitive edge
and fail to keep up with changing customer and market needs, easily become outdated and
unable to compete. The importance of organizational change lies in its pivotal role in ensuring
companies remain dynamic and responsive to evolving market trends. In the business
environment, organizational change is critical to remaining competitive amid changing
technology and market dynamics. A key component of the change process is organizational
change management. Successful organizational change management can improve employee
morale, foster constructive teamwork, and enrich work. These elements have a direct and
beneficial impact on productivity and work quality. Effective organizational change management
enables a company to sustain a steady state of growth while also facilitating periods of general
business change, allowing employees to remain motivated and productive while implementing
change.
Vinamilk, or Vietnam Dairy Products Joint Stock Company, is a Vietnamese company that
manufactures and sells milk, dairy products, and related machinery and equipment. Vinamilk is
currently the dominant player in the milk processing business, accounting for over 75% of the
domestic milk market. Vinamilk has a robust domestic distribution network, with over 220,000
sales points in 63 provinces and cities across Vietnam. In addition, Vinamilk successfully
exports to 43 countries worldwide. Vinamilk offers more than 200 items of sterilized milk,
sterilized milk, and milk-based goods. Vinamilk was the only Southeast Asian brand to appear
in numerous global rankings in 2021. This is the consequence of a determined and strategic
effort to elevate the Vietnamese dairy brand's standing in the global dairy market.
I am working at Vinamilk as a trainee business analyst. I was tasked with investigating and
explaining the drivers and barriers to change and its effects on the decision-making of Vinamilk's
leaders. I was also asked to make suggestions on appropriate leadership approaches to
implementing change and to implement and make recommendations on different leadership
approaches and change management models to respond to changes identified within the
organization
1. Investigate the forces for and against change and how they affect leadership decision
making in organizations.
Motives are forces that have a positive influence or support for change initiatives. These forces
are the real reasons that bring about changes in an organization. These drivers can be
New leadership
New technology
Competition
Customer demand
Political regime
Laws and regulations
Increased profits, etc.
(Tahir, 2019)
Organizational change can be driven by many different factors. Intense industry competition or
the entry of new players in the market can push organizations to make changes in their strategies,
products or processes to gain a competitive advantage. Rapid advances in technology can trigger
organizational change in terms of adopting new technologies, automating processes or upgrading
systems to improve organizational productivity, efficiency and competitiveness. Changes in
leadership, new strategic direction, or changes in organizational priorities can lead to
organizational changes. Customer needs are also a factor driving change in organizations.
Customer needs and shopping behavior can frequently change and what an organization should
do is to keep up to date with trends and demands for goods and services to make changes to meet
those needs to Maintain sales and stay competitive. New laws and regulations can encourage
organizations to develop new products and services that meet new safety and environmental
standards and enhance organizational social responsibility. New policies, regulations and laws
can provide provisions that facilitate organizational operations. Profit is often the top concern for
organizations. Organizations make changes to operating processes to improve efficiency and
quality of products and services to increase profits, for example businesses can invest in
automating production processes to reduce human resource costs and increased profits (Nagdy,
2024)
Resisting forces are negative forces that work against change ideas and initiatives. These forces
tend to maintain the status quo and limit the implementation of new change initiatives. Some
examples include
Fear and uncertainty about the future
Organizational culture
Old employee habits
Lack of engagement among employees
Costs, etc.
(Lucidchart, 2024)
When employees feel distrustful of the person implementing the change, they may resist the
change and create a major barrier. Changing the status quo is a complex undertaking. Employees
tend to react emotionally to disruptions in their routines that force them to change previously
established work habits can make them resistant to change. Leaders should use change
management models that focus on employees' emotional reactions to change to minimize change
resistance. The change leader must be willing to manage employees' emotions when making the
change such as loss and grief and motivate people to accept the change. Employees will also not
support change if they are not confident in their ability to adapt to change. They may feel fearful
and anxious about their own shortcomings and tend to protect themselves from failure by
resisting change. Leaders should provide adequate knowledge and necessary training about
change to help employees easily access and adapt to change. Leaders should also create effective
communication within the organization. Organizational culture is a strong influence on change.
Organizational culture is embedded and ingrained in the organization's daily activities and
processes, hindering the acceptance of new ways of doing things such as leadership, new
processes, organizational restructuring, etc. Leaders must ensure that they foster an environment
that supports change. Leaders should make decisions that foster creativity, new projects,
flexibility, and risk-taking. This may cause employees to support adaptive change as they
become accustomed to such a working environment.
. The single most powerful barrier for organizations when implementing change is cost.
Businesses may be hesitant about making changes because they worry about related costs such as
costs for human resources, training, technology, etc. (Francis, 2023)
2. Apply force field analysis to analyse both driving and resisting forces to show how they
influence decision making in organisations.
Force field analysis is a simple and practical tool used to manage organizational change and
support decision making by providing a detailed overview about the forces that can influence an
organizational change problem. Force field analysis was developed in the 1940s by psychologist
Kurt Lewin for use in social psychology (the study of group behavior) but it is also commonly
applied in business settings. Lewin's force field analysis aims to assist individuals and
organizations in understanding the dynamics of an issue or situation and determining the best
path to change implementation. (Reyes, 2023)
Force field analysis should not be done by a single individual but is best done in a small group of
5-10 people directly involved in the change implementation process. It is important to keep
everyone who will be affected by the change updated on the progress of the change. The method
of conducting force field analysis is carried out in 5 steps (Reyes, 2023)
Step 1: Determine the goals of the change project
Leaders should begin the analysis by clearly stating the proposed changes and
determining the expected results
Step 2: Identify motivation
Leaders need to list all the motivating factors for the organization. Be sure to keep change
stakeholders updated so they can share the driving factors from their perspective. List as
many factors as possible and place them in the right part of the diagram
Step 3: Determine the resistance
The leader needs to list the factors that oppose implementing the proposed change - these
forces will resist the change and make it difficult for the organization to achieve the
desired results. Be sure to include as many factors as possible that can be objectively
considered and proactively addressed, then place the identified factors in the right
sections of the diagram.
Step 4: Summarize points
Each force will exert varying degrees of effect on the intended outcome. To address this,
the organization rates each driver and resistance factor on a scale of one to five or one to
10 (with one being the weakest factor) to assess the influence of forces on change.
Step 5: Count, analyze and apply
Once scores for all factors are completed, the organization can determine which side
weighs more heavily. The goal of this analysis is to ensure that in order for change to be
implemented, the driving force must be stronger than the resistance. If the resistance to
change is higher, leaders should consider processes that can strengthen the momentum
and weaken the forces that resist change.
10 Profitability Adaptability of 3
staff
Total: Total:
36 17
The motivating force is stronger than the hindering force. The desire to improve and increase
profits and meet customer requirements for better quality products is a significant motivation for
Vinamilk to make changes. To make changes to the production system, Vinamilk also evaluates
risks to change such as financial capacity, adaptability of staff, and amount of work to be done,...
However, Vinamilk encounters a strong barrier to change: the cost of upgrading the production
system. After performing Lewin's force field analysis, Vinamilk decided to invest in new
technology to upgrade its production system. Vinamilk reviewed the technology of 3 suppliers
from China, Korea and Japan. After consideration, Vinamilk chose technology from Japan to
upgrade the production system, including Kaizen (continuous improvement), JIT and
comprehensive quality control, it is cost-effective compared to the other two vendors and can
help increase output by 50%, reducing errors and personnel costs for the organization (Le, 2021)
3. Recommend change leadership approaches and models to change initiatives for given
situations.
A change management model refers to systems, methods, and theories that provide an in-depth
approach to organizational change with the goal of helping organizations in implementing
changes, navigating the change process, and ensuring changes are accepted and implemented.
Change models prepare companies to adapt to change and guide enterprises and their workers
through successful change implementation. (Whatfix, 2022)
The Change Kaleidoscope model is a paradigm that gives a complete approach to change
management, assisting organizations in understanding the various components of change
initiatives and how they interact to achieve the intended results. Hope Hailey and Balogun
devised the Change Kaleidoscope model, which contains an inner and outer ring. The outer ring
represents characteristics of the organizational context such as power, readiness, capacity,
capacity, diversity, preservation, scope, time. The inner circle offers design and execution
options such as changing roles, styles, starting places, paths, targets, and levers.
Time: the amount of time needed to make the change
Scope: refers to the breadth and depth of the change, including the number of
departments or functions affected by the change
Preservation: Consider which elements and processes of the organization must be
maintained during the transition process.
Diversity: refers to the range of views, experiences, and skills of stakeholders involved in
the change process.
Capacity: refers to the knowledge, skills, and resources required to implement change.
Capacity: refers to an organization's ability to sustain change over time
Readiness: refers to stakeholders' awareness and preparedness to participate in the
change process.
Power: he distribution of authority and influence within the organization
Kaleidoscope change management model is a dynamic and innovative approach to change
management. It provides a comprehensive framework for leaders and organizations to
understand, plan and execute successful and sustainable change initiatives by acknowledging
the diverse dimensions of change. This model encourages a holistic perspective, promoting
adaptability and feedback, helping organizations navigate the complexities of change
(Stephen, 2024).
Unfreeze: The first phase focuses on perception management and seeks to prepare
stakeholders affected by the approaching organizational change. Change leaders must
examine present processes, identify what needs to change, and convey this to
stakeholders.
Changing: This phase involves making changes when the status quo is upset. Leaders
must adopt an agile and continuously iterative approach, paired with employee feedback,
for a smooth transition..
Freeze: In this phase, the employee progresses from the transition phase to the
stabilization or acceptance phase. If the change leader does not reinforce the change in
organizational culture, they may revert to past behaviors.
Lewin's change management model provides organizations with a valuable framework for
navigating change. Organizations can increase the likelihood of implementing successful
changes by following the stages in the model. Using this model allows for an easy transition
from one phase to the next, helping change leaders better understand the change process and
make real progress toward goals (Tahir, 2024)
4. Analyze the use of leadership approaches and models for given situations.
4.1. Lewin's change management model and LaMarsh change management model
The dairy industry is increasingly competitive and it requires Vinamilk to continuously innovate
and improve management efficiency to maintain its position. Vinamilk's farm system is facing
many manual limitations and lack of uniformity, leading to losses and difficulties in the process
of monitoring and evaluating operational efficiency. Vinamilk can simultaneously apply Lewin's
change model and LaMarsh Change Management Model to apply FMS farm management
software to help automate the farm management process helps Vinamilk optimize operations and
improve productivity
Stage 1: Unfreezing
Create a sense of urgency: leaders should analyze data that shows that the use of manual
management methods is causing current site systems to suffer from low productivity,
waste of resources and problems. Difficulty in monitoring the health of cows. From there,
convey and emphasize the benefits of FMS in automating time-consuming and error-
prone manual processes such as recording feed data, monitoring dairy cow health,... helps
optimize operations and save costs so that organizational members see the benefits of
implementing change (Initiating Change - LaMarsh Change Management Model)
Address resistance: leaders should anticipate potential concerns for employees or the
organization such as anxiety about having to adopt new technologies, changes in work
habits and the risk of losing jobs when replaced by technology. Leaders should reassure
them and assure them that they will receive all the necessary knowledge and training for
change in the organization and will make appropriate work arrangements to ensure work
for them. (Risk Identification - LaMarsh Change Management Model)
Stage 2: Changing
Vinamilk needs to define a vision on improving farm management efficiency to optimize
operations and improve productivity. The vision here could be to become a pioneer in the
application of farm management technology. Leaders need to share the vision with all
employees including farm managers, veterinarians and livestock staff and ensure they
clearly understand the goals and benefits of change
Vinamilk should encourage employee participation in the selection, implementation and
use of FMS. Vinamilk can organize seminars and training sessions to help employees
understand the importance and usefulness of FMS for farm management and
organizational activities and equip them with the necessary knowledge and skills to use
FMS, creating an open working environment to address employee concerns and questions
about FMS and provide ongoing support during the transition (Implementation Phase -
LaMarsh Change Management Model)
Stage 3: Refreezing
Vinamilk can create reward programs and recognize individuals who actively use FMS
and achieve good results while also collecting feedback from employees and making
adjustments and provide the necessary training and support (Getting Results - LaMarsh
Change Management Model)
Actively promote the adoption of FMS into operational processes to make FMS an
essential tool in farm management while encouraging a data-driven culture and
continuous innovation to improve operational efficiency (Sustain Results - LaMarsh
Change Management Model)
4.3. Kaleidoscope change management model and ADKAR change management model
Vinamilk can simultaneously apply both the ADKAR change management model and the
Kaleidoscope change management model to improve customer service quality.
Determine the strategic context
Awareness: Vinamilk can analyze customer data from customer service channels such as
email, social networks, and customer care call centers to identify strengths and existing
limitations to capture needs, customer desires and expectations then share the results of
this analysis with employees to raise their awareness of the importance of improving
customer service quality
Understand the organizational context
Desire: The change needs to be applied comprehensively to all departments of Vinamilk.
Leaders can share success stories about successfully improving customer service quality
to inspire employees or tie the goal of improving customer service quality to personal
goals and groups such as linking rewards and recognition to customer satisfaction levels
or the amount of positive feedback
Choose the appropriate solution
Knowledge: Vinamilk can develop comprehensive training programs on excellent
customer service skills for employees such as effective communication, handling
complaints, building effective relationships with customers, ...
Ability: Vinamilk can provide employees with the opportunity to practice customer
service skills through a simulated environment and have expert feedback. Vinamilk can
also use technology to support employees in providing customer service such as using
customer management systems (CRM),...
Consolidation: Vinamilk should maintain the practice of rewarding and recognizing
employees who do well in improving customer service quality so that this is considered a
new culture in the organization at the same time, and share positive customer feedback
with all employees to encourage them to continue their efforts.
Individualized consideration
Vinamilk may wish to implement a new enterprise resource planning (ERP) system across the
organization. Leaders can provide training or mentoring programs tailored to individual
expertise, or let experienced employees support colleagues during the transition. Leaders can
also create open communication channels to address individual questions and concerns and
provide needed support.
Inspirational motivation
Vinamilk can apply this when facing organizational problems that cause employee morale and
productivity to decline. Leaders can provide a clear vision for the future and set goals that are
ambitious but not beyond the company's capabilities, create small wins, and celebrate when they
are achieved. This boosts employees' confidence in the future and inspires them to work harder
to achieve their goals.
Intellectual stimulation
Vinamilk can apply when facing a highly competitive market related to changes in consumer
preferences. Leaders can encourage innovation through fostering a culture that values creativity
and experimentation at the same time, empower employees to perform work according to their
wishes as long as the goals set by the organization are achieved.
CONCLUSION
In conclusion, my report has investigated the forces supporting and hindering change and their
influence on leadership decisions in organizations and the application of force field analysis to
analyze restraining and motivating forces to show how they influence decision making in
organizations. In addition, the report also includes recommendations on methods for change
management models and analyzes the use of leadership methods and models for specific
situations in the organization.
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