NEED HELP with managing organizactional change assignment

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managing_organizational_change_p4ip.docx

Introduction

Savage gulf sulphur is the largest company that deals with the operation of sulphur transportation and logistics system in United States. This organization was founded in the year 2002; the company is located in Orlesiana, Louisiana (Savage, n.d). The company specializes in processes such as handling of petroleum coke, loading and unloading of liquids and sulphur handling.

a) Coke cutting petroleum: with this activity the company deals with coke cutting, which include drum heading and unheading. It has proper knowledge in the importance that a coker play in refinery production. Moreover coke cutting also includes handling and maintaining coker units inside various refineries.

b) Loading and unloading of petroleum products: It is imperative understood that coke must be transported from the ore refinery so as to avoid production process slowdowns. The section of handling solutions consist of operation as well as maintenance of bridge crushers, cranes, and loading equipments. In addition, the services include transportation and logistics required to translocate coke from the core refineries to the final users. The services comprise of trucks, marine and rail transportation.

c) Sulphur handling: the company also specializes in handling of molten sulphur formed. The sulphur solution formed includes operation of molten sulphur recovery unit, truck loading and transporting. The company partners in a joint venture with Mosaic in handling sulphur.

Sulphur gulf salvage has a committed team that caters for loading and offloading services of refineries with in-plant rail, truck for all liquids such as benyzner, suplhur and LPG’s. In terms of transportation and logistical management, the company is utilizing cost-effective strategies to enhance comparative advantage (Savage, n.d).

The company operates with a committed team which partners with clients in facilitating their operations across all refining business areas.

Transformational change

Transformational change occurs when companies move from earlier form to present form. These changes occur due to several things including the competition, the need to cut costs, the need to expand and other external forces that might trigger organizational change. Taking an example of Savage Gulf Sulphur, transformational change has occurred through stiff competition that has triggered losing business hence the management need to respond.

Transformational Management

Transformational management is an approach to company leadership in which management leads the organization through a transformation in direction, processes or other critical elements of operation.

A. Why can the firm not just keep doing what it has been doing?

The company wants to expand the production handling of this product to become more well-known.

B. Are there easier alternatives to accomplish the goal of remaining competitive?

Unfortunately, the production and findings of sulphur are very important. They are so important they are demanded to at times be sent out in orfer to not be allowed.

The congruence model views organizations as interacting components that exist in relative harmony or fit with one another. The four main components are individuals, tasks, formal processes and informal processes. Organizational problems arise when there is a poor fit between some of these components. Changes in one component can affect other components because of the personal and process linkages that exist within organizations. The congruence model places the greatest emphasis on the transformation process between inputs and outputs. The inputs include the external environment, such as competition and government regulation; financial, human and other resources; organizational culture; and the strategic decisions necessary to meet future challenges and opportunities. The outputs refer to products and services, and overall performance and effectiveness.

Change management is an effort needed to change to implement different stages into effect within a company or organization to aspire a positive future state. Effective change management has principles that pertain to a well-rounded involvement and deep thought process and investigation to what is the necessary step to take. Involvement needs to be considered on how it affects the individuals whom are involved. In accordance, change must be achievable and realistic and measurable. Effective change management has strategical theories to better serve the needs desired for change. Such theories are for example, Kotter’s 8 step change model, Lewin’s management change model, and Nadler’s congruence model.

Theories of change Management

Kotter’s 8 step change model

As the title states this is a model designed in 8 steps that need to be implemented. This change management theory is more for the campaign oversight for change. If change should be implemented for the whole workplace, the best method to use is Kotter’s 8 step challenge. There are 8 steps in this model. They include: Increasing the necessity for change; Building a team devotion to change; creating the revelation for change; communicating the need for change; empowering staff with the aptitude to change; creating short term goals; staying persistent; Making change to be permanent.

Pros- There is a guided step to follow in order to accept change. It is there to help prepare for change as well as accept the change. After implementing this model, the transitional basis is much smoother.

Cons- The process is a bit time consuming. In order to achieve successful change, steps to this model should not be omitted.

Lewin’s change management theory

“Kurt Lewin (1951) introduced the three step change model. This social scientist views behavior as a dynamic balance of forces working in opposing directions. Driving forces facilitate change because they push employees in the desired direction. Restraining forces hinder change because they push employees in the opposite direction. Therefore, these forces must be analyzed and Lewin’s three step model can help shift the balance in the direction of the planned change ( http://www.csupomona.edu/~jvgrizzell/best_practices/bctheory.html )

Pros- This theory is very simply built and designed to have effective change management

Cons- This theory can be very time consuming

Nadler Congruence Model

“The congruence model views organizations as interacting components that exist in relative harmony or fit with one another. The four main components are individuals, tasks, formal processes and informal processes. Organizational problems arise when there is a poor fit between some of these components. Changes in one component can affect other components because of the personal and process linkages that exist within organizations. The congruence model places the greatest emphasis on the transformation process between inputs and outputs. The inputs include the external environment, such as competition and government regulation; financial, human and other resources; organizational culture; and the strategic decisions necessary to meet future challenges and opportunities. The outputs refer to products and services, and overall performance and effectiveness.” (chron.com/Nadler’s)

Pros- This model is dealing with being able to analyze where change is going wrong. Being that this model analyzes, it also is good of analyzing doses.

Con’s- Lastly, there is not a tool to let you know specifically what needs help and or improvement.

1. Competition

The company has not allowed losing its business to competitors. The company explores deep into its business to get all relevant knowledge in supply chain challenges. The team of expertise with vast and wide experience delivers innovative sustainable supply chain solutions (Angel, 2012). They transform their strategies into objectives, by integrating with the relevant teams to solve the most technical logistics and handling materials challenges.

1. Cutting cost strategy

The company employs a savage solution which includes a set of services that bring value to the company. By integrating many services, the company is able to reduce costs, improve visibility, as well as increase its overall productivity. Moreover, by leveraging right solutions with the right services, its clients have been able to cut their transportation costs by almost half while reducing emissions by almost 90%. Cost cutting strategy is attractive to consumers or clients and the company benefits from maintaining loyal customer base. Another version of cost cutting involves reducing expenses through closing down of offices and employees layoffs, which Savage Gulf Sulphur has done. The company is utilizing cost cutting strategy to save its finances and improve profitability. Although this strategy is unethical in nature, it is inevitable during cost cutting especially when companies go through chaotic changes. Business owners decide to the cut back their employee expenses in order to save their finances and make sure unnecessary expenses are laid back (Kitching et al., 2009). Employee layoff is a sophisticated process and even layoff itself might turn out to be costly depending on the nature of business contracts. It reaches a point where business owners close down some of their business subsidiaries and maintain those that bring them highest profits. If subsidiaries do not bring expected profits, they will be subject to closing hence triggering employee layoff and this is exactly what this company did. When deciding on employee layoffs through cutting costs, the focus is usually maintaining high profits with the possible minimum resources.

Theories of management

Contingency theory is a form of management where managers make decisions where they must take into account all forms of situations experienced in the workplace. This theory encompasses the continuing efforts of trying to identify leadership management style to choose the best style suited for the situation. Contingency theory draws from situational leadership theory where leaders apply the most appropriate strategy for the present situation (Burnes, 2005). Any management style and any leadership style will work depending on the situation.

Systems Theory is considered the science of management and science of organizations where managers collect resources to accomplish their overall goals. A system is a wide range of interconnected resources including human resources in addition to workplace environmental resources. If some resources are removed from the system, the organization stops working. Important with this theory is that, organizational process include new resources such as technologies. These technologies might not be in the system currently but they are required because without them, the organization will not function at its optimal. Systems take into account input processes controlled by different department within an organization. For example, the input processes from human resources department are different from input processes from supply chain department yet these systems need to work together hence the importance of this theory in management.

Chaos theory is another management theory used in management. This theory is considered useful because organizations seldom lack politics of elements that try to stabilize the organization. The principle behind the systems theory is that organizations have problems. During such problems, organization’s productivity reduces and chaos eats into resources compromising the economy and health of the organization. Chaotic theorists have thought that organizations pass through complexities and the business become more volatile. This leads to instabilities that may even force business closure (Burnes, 2005). The peak of organization chaos has been seen with acquisitions and mergers due to competition or failure to adopt new technologies.

The bureaucratic management theory focuses on management of dividing the institutions into hierarchies. This theory was developed by Max Weber and was seen in management use beginning 1930-1950. Weber established strong lines and authorized control into long hauls of organizational hierarchies. Weber suggested that organizational management is comprehensive and should be detailed within department. Through hierarchies, there will be individuals who will take up different responsibilities within the organization. This theory considered routine organizations tasks to be composed of reports such that individuals in the lower rank can report to persons in the upper rank.

Communication plan

Communication is an important strategy for managing change in organizations especially at the time when Savage Gulf Sulphur is experiencing difficulties. Employee retrenchment require developing strategic communication strategies in order to safeguard motivation for the remaining employee who are not having confidence while working because they believe that they might be next in line to be send away. Effective communication is a resource for managing human resource changes occurring in any organizations.

Implementation plan

Implementation plan will involve scheduling when changes are bound to occur. Evaluation of the cost of changes will also be considered and due policy processes followed to avoid legal issues associated with elements such as layoffs.

Reference

Angel, T.V. (2012). International Strategic Management: Types of strategies. Retrieved on June 13, 2015 from http://www.slideshare.net/pamelauribe92/types-of-strategies

Kitching, J., Blackburn, R., Smallbone, D. and Dixon, S. (2009). Business strategies and performance during difficult economic conditions. Bath University.

Savage (n.d). Oil refirining. Retrieved on June 15, 2015 from http://www.savageservices.com/industries/oil-refining.html

Burnes, B. (2005). Complexity theories and organizational change. International Journal of Management Reviews. 7(2): 73-90.

Introduction

Savage gulf sulphur is the largest company that deals with the operation of sulphur transportation

and logistics system in United States. This organi

zation was founded in the year 2002; the

company is located in Orlesiana, Louisiana (Savage, n.d). The company specializes in processes

such as handling of petroleum coke, loading and unloading of liquids and sulphur handling.

Introduction

Savage gulf sulphur is the largest company that deals with the operation of sulphur transportation

and logistics system in United States. This organization was founded in the year 2002; the

company is located in Orlesiana, Louisiana (Savage, n.d). The company specializes in processes

such as handling of petroleum coke, loading and unloading of liquids and sulphur handling.