ORGANIZATIONAL BEHAVIOR IN CHANGE MANAGEMENT: analysis of the effects of changes on organization and individuals

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CHANGE MANAGEMENT: ORGANIZATIONAL CHANGE FROM PROJECT TO OPREATION AT REFINARY   ” study case of organizational behavior”   The process of change management is a necessary phase within organizations. Perception of employees about change management is a role player to an organization’s succession or failure during its change processes. This study aims to link the goals of the organization’s change management plans and the perceptions of the employees.   The study will be descriptive and quantitative, including online the surveys with a random sample of 50 employees from different levels within the organizations. The survey will focus on the satisfactions and expectations of the employees about the implementations of the change management plan. The results will be analyzed and expressed in graphs.   The main focus of this case study is to arrange a smooth transition and hand over of Company from project phase to operational phase. During the transition, series of significant organizational changes, most of the employees will be called upon to change their environment and practices to respond to the needed changes and demanded expectations.   In essence, the case study explains the urgency of a proper change management plan in order to enhance the transition and get the majority of the employees engaged within the plan.

1

Current Setup

Engineering Mgr.

Operation Mgr.

MNT Mgr

Process Engineering Div.

Laboratory Div.

Technical Support Div.

IGCC Div.

Refinery Div.

Terminal Div.

Economic City Mgr.

Mnt shops Div.

Refinery Mnt Div.

IGCC Mnt Div.

Terminal Mnt Div.

Operation and Mnt Div.

Investor Relations Div.

City Mngt and Housing

HCK team Leader

Crude Team Leader

DHT TL

Gasification team leader

Power Team Leader

Terminal TL

TF TL

JZRC GM

Ops Ens

MNTs

MNT Engs

Ops

Others

Ops Ens

MNTs

MNT Engs

Ops

Others

Ops Ens

MNTs

MNT Engs

Ops

Others

Ops Ens

MNTs

MNT Engs

Ops

Others

Ops Ens

MNTs

MNT Engs

Ops

Others

Ops Ens

MNTs

MNT Engs

Ops

Others

Ops Ens

MNTs

MNT Engs

Ops

Others

Introduced change

Engineering Mgr.

Operation Mgr.

MNT Mgr

Process Engineering Div.

Laboratory Div.

Technical Support Div.

IGCC Div.

Refinery Div.

Terminal Div.

Economic City Mgr.

Mnt shops Div.

Refinery Mnt Div.

IGCC Mnt Div.

Terminal Mnt Div.

Operation and Mnt Div.

Investor Relations Div.

City Mngt and Housing

Units Foremen

JZRC GM

Operators

Shit Ops Supervisors

Consoles

Units Foremen

Operators

Shit Ops Supervisors

Consoles

Units Foremen

Operators

Shit Ops Supervisors

Consoles

Units Supervisors

Engs

Units Supervisors

Engs

Units Supervisors

Engs

Units Supervisors

Techns

Units Supervisors

Techns

Refinery level information flow

Corporate

Plant Management

Shift team meeting, Foreman, Staff

Shift handover meeting Manager, first line

Field operator

Console operator

Manager, engineer: First line engineer

Minutes briefing

directives guidelines

Expected challenges

Resistance from TLs and workers.

Adapt for the new work location.

Consume time for team relation build up.

Creates positions for position holders in the old Org setup.

Define roles and responsibilities.

Change Targets

To adapt the organization with the new work style ( Operating phase) and make functional groups combine all the experts in specific field.

Catch up with the changing petroleum consumer needs and handle external demands.

Prepare for any future occurrence of uncertainties.

Enhance the companies identity and capabilities in the market.

Herzberg Two Factor Motivation Theory

The change for the company is planned and not accidental.

Employees resistance to change is curbed by stressing on motivational factors.

Implementation of planned change is run co-currently with the motivational factors .

Planned change should consider hygienic and motivational factors for employees.

Herzberg Two Factor Motivation Theory

Company offered Hygiene factor (not direct to job).

High payment, clear policies, best physical working conditions, co. environment reinforce relationship with co-workers, & job security.

Company offered Motivators factor (direct to job).

promotional opportunities, personal growth opportunities, recognition, added responsibility & achievement.

INTERNAL

SWOT

EXTERNAL

Helpful

Harmful

Strengths

Weaknesses

Opportunities

Threats

change is going to strengthen the relationship between workers & their managers.

New changes will be a room for learning and growth, both for individuals and the organization at large.

Planned change will offer new opportunities for learning new skills and knowledge advancement, sense of ownership and achievement

Change at work place comes with new roles thus employees are subjected to learning new skills.

Some fear loosing their jobs.

Changes can also harm the entire organization.

Planned change implementation might take longer than expected.

Change Implementation Strategies

Planned Change implementation without employee resistance is implemented through shared power strategy.

Employees participating in the process makes them more cooperative with less resistance.

Non-Business Use

Change implementation tactics

Even though the change is consider as radical change however it can implemented gradually.

Prepare the logistics and IT services in advance.

Develop mobilization plan for work stations.

Start making alignment in advance between the employees in the new groups.

Functional Organization structure

Change Description.

Mobilize the employees to be grouped with their direct management in same office location.

Change Objective.

1- F2F communication of the same speciality.

2- listening to employees views and consumer tastes and preferences.

3- Motivating employees to give the best out of themselves.

4- Empowering them by exploiting their potentials.

Organizational change effect

YES The new organizational structure is flexible. The new organizational structure increases the delegation of authority to staff at other levels. Communication between managers and staffs are accomplished very quickly. The staffs are involved in decision-making. Training programs have helped to accept change. management prepares & convinces workers for the needs to accept change. There is trust between staff and management. 0.5 0.6 0.83 0.72 0.79 0.7 0.9 SOMEWHAT The new organizational structure is flexible. The new organizational structure increases the delegation of authority to staff at other levels. Communication between managers and staffs are accomplished very quickly. The staffs are involved in decision-making. Training programs have helped to accept change. management prepares & convinces workers for the needs to accept change. There is trust between staff and management. 0.26 0.33 0.09 0.18 0.21 0.28999999999999998 0.12 NO The new organizati onal structure is flexible. The new organizational structure increases the delegation of authority to staff at other levels. Communication between managers and staffs are accomplished very quickly. The staffs are involved in decision-making. Training programs have helped to accept change. management prepares & convinces workers for the needs to accept change. There is trust between staff and management. 0.24 0.17 0.08 0.1 0 0.11 0.08

SURVEY OF 50 EMPLOEES

the case is about refinery division in large petrochemical company going to do change their work process include hierarchy the effects are existing of resistance from team leaders and staff due to canceling TeamLeader position then downgrade, upergrade some of them base on their performance.

*note: this co. is largest petro. Co. in the world they over highest salaries & benefits.

what i need base on survey results

planned change phases is unfreezing, changing and refreezing apply this steps on refinery division team larders and staff to initialize change?

what opportunities, attitudes & value can apply to reduce resistance and stress of downgraded employees?

this change cause a group conflict, how to managing conflict in refinery division?