Table of Contents Change management..................................................................................................................1 Introduction................................................................................................................................1 Task 1.....................................................................................................................................1 1) The driving and restraining forces for change in Soloni Oil........................................1 2) Kotter’s eight steps to transforming organizations could havebeen used by leaders to manage the transition to virtual teams..............................................................................2 3)Explain resistance to change and the reasons why the Nigerian Team are...................4 resisting change................................................................................................................4 4)Nigerian Team’s resistance to change be viewed as.....................................................5 ethical...............................................................................................................................5 5) Explanation of the term “Individualistic and Macho”..................................................6 Conclusion..................................................................................................................................7 References..................................................................................................................................8
INTRODUCTION Soloni oil is a gas and oil Exploration company headquartered in London, UK. This company wants to expand its business in Nigeria. Recently it has expanded its business in two different geographical areas i.e. North-West Territories of Canada and Saudi Arabia. This company’s aim is to minimise the effects of all its operations and reduce the emissions developed from carbon dioxide (CO 2). Therefore, in order to expand its business Soloni Oil has to restructure its operation by developing virtual teams. This change is going to prove beneficial for small team which are present at Nigeria, who needs to have regular visits from UK. After restructuring of UK management team, it has became the smallest and least productive team. Now there is no difference between UK and Nigeria team. So, Soloni Oil thought that now it will be easily for them to arrange the virtual meeting on a regular basis. But, it created difficulty for Ben Smith, Senior Project Engineer and Tim Fennell. The reason behind this is that senior staff is not attaining the virtual meeting conducted by the company. Due to which junior staff are also not able to achieve the desire objective of the meeting. Therefore, due to this Ben was not able to perform this task properly. TASK 1 1) The driving and restraining forces for change in Soloni Oil. Soloni Oil is one of the growing oil companies who want to expand its business to other countries. But in order to expand its business Soloni Oil has to take into account some changes. Some of the change proves to be driving forces and rest proves to be restraining change. Driving forces of the change are the factors which prove to be beneficial for the company in order to increase its productivity (Bhatnagar, 2010). In simple words, it can be said that driving factors are those factors which increases productivity of the company. Similarly on the other hand, restraining forces of change are those factors which creates problem in the company. In simple words, it can be said that, restraining factors are those which decreases the level of company's productivity. Therefore, according to this case study some of the driving forces of changes in Soloni Oil are as follows:-Reduce the cost of travelling:- UK Company has been restructured in order to reduce its size. After the reduction of UK firm, UK and Nigeria firm have become the sole team i.e. they are now the smallest and least productive teams. Due to the size of both the firm, company can now easily organise virtual meetings between both the firms.
Increases the value of its shareholders: - At the time of expansion of two firms in North-West Territories of Canada and Saudi Arabia, Company aim to reduce carbon dioxide emissions(Burnes, 2003). This proves to be one of the driving forces for the company. According to Swot analysis changes developed by the Soloni Oil are beneficial for the small teams present in Nigeria. These changes are effective, efficient and help in profit maximization. Similarly on the other hand, there are some of the factors which prove to be restraining forces of change in Soloni Oil. Some of such factors are:- Soloni Oil aims at restricting its UK business into small and less profit generating firm in order to conduct virtual meeting easily. But, at the time of organising the virtual meetings many problems were faced by the company especially to Ben Smith, the senior project engineer and Tim Fennell. At the time of organizing virtual meetings connection problem rose from Nigeria. Many staff members did not arrived at the meeting on time (Cameron and Green, 2015). Therefore, this in turn frustrated Ben. Since Ben wanted to discuss the project in Nigeria with the geoscientists and wanted to communicate the same to the geoscientists present in Canada and Saudi Arabia in order to expand its business and achieve its set vision. PESTLE FactorsAffects PoliticalPolitical factors are the factors which influences the working of the company due to the imposition of government policies and norms. Thus, this factor can affect the company while expanding its business to Nigeria. EconomicEconomic factors are the factors which affects the investment decision of the company. Therefore, it is analysed that economic condition of the Soloni oil is good. Large amount of capital is present. SocialSocial factors include the various aspects related to culture. It includes health consciousness, population growth rate and emphasis on safety. Thus, Soloni oil should make efforts to expand its business considering the health and safety of customers. TechnologicalSoloni oil company should use latest technology by undertaking the research 2|P a g e
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and development activities which in turn will aid the company to easily expand its business and reduce the emission of carbon dioxide. LegalLegal factors include the various law related to culture, decimation, health and safety and so on which Soloni oil should consider will performing its various operations. EnvironmentSoloni oil company is an oil manufacture company. Therefore, it should make the continuous efforts to reduce the emission of the carbon dioxide in order to save the environment from the pollution. 2) Kotter’s eight steps to transforming organizations could have been used by leaders to manage the transition to virtual teams. Kotter's eight steps model help the company to transform all its operations. This model will assist the firm to easily evaluate its various operations to achieve its set mission, vision and objectives. This model is also used by the company to apply various types of changes in virtual teams. Therefore, Kotter's eight step change model with reference to leadership skills is as follows:- 1.Create urgency: -In this step company should try to aid the people to identify the need for the change and the importance of the change (Campbell, 2014.). Therefore, Silicon Oil Company should try to inspire all its staff members to understand the need for change.Company is required to make efforts to tell its staff members about the importance of the change that is taking place in order to expand its business to the Nigeria. Hence, this in turn will motivate senior staff members to attain the virtual meetingwhich senior staff members are not attaining on time in lieu of which junior staff members are not toachieve the meeting objectives. 2.From a powerful coalition: -In this step, company should try to encourage the individual employees to work together as a team. They should make an effort to allocate the members into a group according to their skills. Therefore, Silicon Oil Company should make efforts to place a person in team according to its skills.This in turn will motivate the senior staff members to attain the virtual meetings on time in order to achieve the desired target of the company. They should also attempt to encourage the staff to work in a team. 3|P a g e
3.Create a vision for change: -In this step, company should try to develop strategies in order to achieve its vision for change (Ford and D'Amelio, 2008). In order to achieve the vision Silicon Oil is required to develop the vision by taking into consideration the decisions and ideas of various team members. Therefore, company should create the future picture and then compare it with past. This comparison will help the company to know its actual positions.And at the same time will aid the company to understand how to reduce the emission of carbon dioxide from its operations. 4.Communicate the vision: -In this step company need to communicate the new vision and various strategies to all its members and staffs. Therefore, in order to achieve the vision of the company (i.e. to reduce the emission evolved out of carbon dioxide) Soloni Oil should communicate the essentials and benefits of the change to its members (Pahl-Wostl, 2007). This will aid the company to establish the health relation between various team members which in turn will force the senior staff members to attend the virtual meeting on time. 5.Remove obstacles:-In this step company should tries to remove the obstacles in order to achieve its desired vision. Soloni Oil needs to identify those factors which restrict the senior staff to attend the meeting on time. Therefore, after identifying these factors company should try to remove the obstacles if anyand motivate the both senior and junior level staffs to attain the meeting on time in order to achieve the organization desired objective. 6.Create short-term wins:-In this step company should set those objectives first which are easily to achieve. They should also start improving those factors first which can early improve. Therefore, in order to achieve the constancy in the organization and expand its business unit in NigeriaSoloni Oil should finish its current stages firstand then should move on to other stages according to its importance. 7.Build on the change: -In this step company should try to foster and encourage the members in order to work properlyand achieve the set goals and targets of the company(Al-Haddad and Kotnour, 2015). It should make efforts to introduce new and better change which in turn will help the company to expand its business properly without any difficulties. 8.Anchor the changes in corporate culture: -At last company should make continuous efforts to ensure that the changes are properly taking place in the organisation.At the 4|P a g e
same time company should also check that company is able to expand its business unit by reducing the emission of carbon dioxide or not.Therefore, it is also important to note that these changes are expected by the existing and new staff members and leaders in order to achieve the desired vision and objective. 3) Explain resistance to change and the reasons why the Nigerian Team are resisting change. Resistance to change is the action taken by the individual and group of individual in order to resist change when large magnitude of force is applied. Resistance to change take place in two forms i.e. Individual resistance and systemic resistance (Sharma, 2006). This type of change is usually found in within the business organisation. Resistance to change can be of many types like active or passive, aggressive or timid, overt or covert, individual or organised. There are various reasons why the Nigerian Team are resisting changing. Some of them are listed below:-Misunderstanding about the need for change: The reason behind the resistance to change could be that employers are not able to understand the changes that are taking placewithinthe organisation.Therefore,SoloniOil should takethenecessary measures to tell employees about the need and importance of change.Low trust:Another reason behind this change could be low trust among the individual members. The condition of low trust can arrive due to any past experience. Therefore, Soloni should make efforts to build up the trust of the employees in order to easily achieve the motive of change (Klarner, Probstand Soparnot, 2005).Poor communication: Another reason could be poor communication between top and middle level management. At the time of change proper communication need to be there between the managers and employees. Proper communication will help the manager to tell the reason behind the change to its employers. Thus, Soloni Oil should try to develop a health communication between the members of the organisation which in turn assist to remove the fault behaviour of the senior staff towards the virtual meeting.Fear of change:Fear of change could be one of the reasons for resistance to change. Members of the Nigeria teams may have a fear about the change that is taking place in the organisation (Soparnot, 2011). They may set their mind in such a way that whatever change will take place will create problem for them. 5|P a g e
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Loss of job security/control: One of the important reasons for resistance of change could loss of job securities. This type of resistance arises when company announces the restructuring or downsizing. This type of announcement can create fear in the mind of the individual employees. Therefore, Soloni oil should take necessary steps in order to provide guarantee to the employees that this changes will not going to affect their job. Therefore, these could be some of the reasons why Nigerian team is facing problem of resistance to change. 4) Nigerian Team’s resistance to change be viewed as ethical Ethical theories are the theories which suggest that action taken by the company are right or wrong. These theories help to find out whether the decision taken by the organisation for the change in the organisation is justified or not. Therefore, in order to justify the above reasonwehavetakenintoconsiderationDeontologicaltheoryintoconsideration. Deontological theory is the theory which states that individual should match its duties and obligations with that of organisation needs (Steffens, Martinsuo and Artto, 2007). In simple words, it can be said that every person is liable to follow his or her duty towards the organisation needs. Therefore, taking into consideration the Deontological theory we have tries to justify the above reasons from the point of view of employers, whether they are justified or not.Misunderstanding about the need for change: -Taking into consideration the Deontological theory it could be identified that this reason is not ethical from staff point of view. If Nigeria team members are facing any problem relating to change they should talk to higher authorities first before taking any wrong decisions.Low trust:According to the Deontological theory it is the duty of higher authority to create trust in the mind of the individual person related to change. This approach should be made by authority before implementing the change in the organisation. This in turn will assist the company to gain the trust of senior and junior level staff members. Therefore, creating the trust among the Nigerian team members will aid the company to easily expand its business and achieve the set target.Poor communication: According to the Deontological theory it is the duty of higher authority to communicate all the information to the staff and members of the organisationrelatedtothechangesthataretakingplaceintheorganisation. 6|P a g e
Therefore, Ben and other members of the organisations should communicate all the necessary information related to the changeto the Nigeria team members in advance. This in turn will aid the Nigerian team members to easily adjust with the team members after knowing the objective of the expansion. Loss of job security/control: -According to this theory fear of the employees towards change is justified. Every individual will have the fear to lose its job after listing about the restructuring. Therefore, Ben and other higher authorities member should attempt to take necessary steps in order to provide job securities to every employee.This in turn will aid the Nigerian team members to work confidently without the fair of loss of their job. 5) Explanation of the term “Individualistic and Macho” Organizational culture Theory: Organizational Culture Theory is one of the most theoretical encouraging theories. The appeal of the theory is burned by its critical analysis. Firstly, Eric Eisenberg and H. L. Goodall (1993) observe that Organizational Culture Theory depends heavily on the shared meaning among the various members available in the organisational. Secondly, Organizational Culture Theory undergoes problems from inflatable boundaries. For instance, cultural performances represent a critical part of an organization's culture which represent that organizational life is too unique. Pacanowsky and O'Donnell-Trujillo argue that organizational cultures differ because the interaction among the members differs in lieuofdifferentculture.Therefore,generalizingaboutlifeinorganizationsisnearly impossible. Organizational culture: It is concerned with the values and behaviours that contribute to the social and psychological environment of the organization. It includes the organization vision, values, norms, assumptions and beliefs that help in achieving the business goals and objectives (Todnem By, 2005). It tends to vary from one organization to another and very much depend on the leadership and members. Organizational culture of Soloni oil gas company: A prime assumption of oil gas company is prevails around the workforce safety behaviour. The organizational culture of Soloni oil Gas Company is termed as Individualistic and macho. It is masculine and mail dominated culture that describes that workers will take more risks. Moreover, they are the rule breakers also keeping in view the business objectives. For making such culture, proper training and development programme are organized by the Soloni oil gas company (Barnard and Stoll, 7|P a g e
2010). This in turn, the workforce is willing to take more risks so as to achieve set business targets. In addition to it, the individualistic describes the personal interest of the employees inside the organization. It can be seen in capitalist economy market such as oil Gas Company. Moreover, it is related to the development of the workforce. In every company, workers wantedpersonalfreedomsoastodevelopthemselvesandincreasetheirefficiency. Therefore, it is clear that culture influence the workers to a great extent. Moreover, it affects the way in which the workers communicate with each other and that how employees identify withinanorganization. CONCLUSION This report emphasises on various factors which Soloni Oil Company has taken into consideration at the time of expansion of its business unit in two different geographical areas. In this report, various driving and restraining forces for change which take place due to expansion and restructuring of the Soloni oil company are also discussed. In this report, Kotter's eight step of change are also taken into consideration in order to apply it to virtual teams (Creasey, 2007). It is also concluded that how resistance to change affects the working of the organisation. In this report Deontological theory is also taken into consideration in order to find out whether the change that take place are ethical from Nigerian team point of view or not. Therefore, at last it is concluded that how these organisational culture has affected the virtual teams. 8|P a g e
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