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Business Report on Organizational Change

   

Added on  2020-05-28

23 Pages5793 Words63 Views
Running head: MANAGEMENT OF CHANGEManagement of ChangeName of the StudentName of the UniversityAuthor Note

1MANAGEMENT OF CHANGEExecutive Summary The major aim of this business report is to identify the sources of change affecting organizations,nature of organizational change and relevance of different organizational forms. Theorganizational that is considered for the report is Rolls Royce. The context, culture and driversfor change implemented in the organization are also identified along with the justification of theplan for the implementation of successful change to overcome the barrier of the same. LewinChange Model and ADKAR model is utilized for highlighting the changes implemented for theorganization. It is found from the report assessment that Rolls Royce has faced five profitwarning in two years and the major reason is due to the less interest of the investor for investingthe financial resources. The reason found for this issue is the lack of ability in the aerospacedivision for making the investors understands the necessary business process regarding themanufacturing and designing of the automobiles. Another problem identified is the involvementof more cost in maintaining multiple managerial hierarchies which is overcome through removalof the managing hierarchy. Another change management that is identified in this report isclassification of the organizational divisions from two to five so as to simplify the managingoperation of the organization.

2MANAGEMENT OF CHANGETable of Contents1.0 Introduction......................................................................................................................................32.0 Discussion........................................................................................................................................42.1 Context, culture and drivers for change.......................................................................................52.1.1 Context for change................................................................................................................62.1.2 Culture for change................................................................................................................62.1.3 Drivers for change................................................................................................................72.1.4 Barriers to change.................................................................................................................82.2 Models and framework for change management and plan for the implementation of successfulchange initiatives.........................................................................................................................82.2.1 Lewin Change Model...........................................................................................................82.2.2 ADKAR model...................................................................................................................112.3 Explanation for overcoming the most significant barriers........................................................143.0 Conclusion.....................................................................................................................................174.0 Reference List................................................................................................................................19

3MANAGEMENT OF CHANGE1.0 Introduction Hornstein (2015) depict that the transition or transformation of an organization's goals,technology and processes adopted by an organization is known as change management. Themajor purpose of the change management is to implement effective changes, controlling thechange and enhance the capability of the employees for accepting the change. Benn et al. (2014)on the other hand argued that employee of the organization sometimes is not ready to accept thechange and it impacts their performance which furthermore affects the profitability of theorganization. This business report is presented through the perception of the external changemanagement agent as this will provide more genuine critical analysis of the implemented change.The company hires this agent as a third party agent during the change management. In this business report, the organization selected for evaluating their change managementis Rolls Royce. Rolls Royce is an aerospace and motor vehiclemanufacturing and designcompany that formulates civil and military aero engines, automobiles, power generationequipment and marine propulsion system (BBC News 2018). However, in the year 2015, themanagement of the concerned organization intends to omit the top layer of management in orderto simplify the decision-making processes for the organization. This assessment aims foridentifying the sources of change affecting organizations, nature of organizational change andrelevance of different organizational forms. In this report, the context, culture and drivers forchange implemented in the organization is identified followed by the detailed description of aplan for the implementation of successful change to overcome the barrier of the same. A range ofdiagnostic models and frameworks will be applied to justify the plan for implementation of thechange. Lastly, the report illustrated to overcome the significant barriers that are raised whileimplementing the change which is followed by a conclusion based on the entire discussion.

4MANAGEMENT OF CHANGE2.0 Discussion Rolls Royce is associated with the manufacturing of civil aerospace, power system,defense aerospace, marine and nuclear products (The Guardian 2018). The underlying revenuefor the financial year 2017 of these segments is 10,824 U.S. million dollars for civil aerospace,4,478062 U.S. million dollars for power system, 3,069.26 U.S. million dollars for defenseaerospace, 1,453.01 U.S. million dollars for marine and 1,103.58 U.S. million dollars for nuclearproducts (Statista 2018). Image 1: Underlying revenue in FY 2017 of the Rolls-Royce segments (Source: Statista 2018)The current situation for the concerned organization also illustrates that the sales volumefor the Rolls Royce has been increased these with every year. The data shows that the worldwidesale of the Rolls Royce automobile for the year 2014 is 4,063, for the year 2013 it is 3,785 andfor the year 2016 the sale for the automobile was 4,011 (Statista 2018).

5MANAGEMENT OF CHANGEImage 2: Worldwide sales volume of Rolls-Royce automobiles(Source: Statista 2018)2.1 Context, culture and drivers for change The change that the company Rolls-Royce implemented in their organization is toremove the top management so that the company can feel easy in taking decision for businessoperations. Apart from the decision of simplifying the organizational structure, the companyplanned to operate with five divisions- civil aerospace, defense aerospace, marine, nuclear, andpower systems (The Guardian 2018). The five division of the company is formulated byscrapping two divisions to turnaround the struggling engineer. This plan was also include the jobcuts of 2,600 in the next 18 months from the decision (BBC News 2018). During the time 2014,Rolls-Royce's global workforce shows the figure of 55,000 out of which 24,000 workers arealone working in the UK (BBC News 2018). The job cut had been planned mainly for the

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