Effective Management for Sustainability

This assignment report is based on a case study of Rolls-Royce, which deals with several technologies for delivering cleanest, safest, and best competitive solutions. It requires adopting alterations that help to maximize employees' performance and the firm's productivity.

Management Of
Change

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1. Identifying the context, culture and drivers for changes with barriers to change...................1
2. Use appropriate models, develop theories and justify a plan for implementation of
successful changes......................................................................................................................4
3. Explain how the most significant barriers to change will be overcome.................................8
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
Management of change (MOC) is defined as the system including various activities
which are necessary for surviving in the competitive environment. In this considered a procedure
which evaluate the entire assessment as well as major impacts on business operations, employees
safety and their health, protections and many more for the purpose of achieving set targets or
goals. Management of changes must be required for every business firms as it determine the
actual needs and also executes the necessary changes to bring innovative ideas and effectiveness
within the firm (Benn, 2014). In this, number of components like on infrastructures, development
programs and updates to operates as well as maintenance procedures. This report is based on a
case study of Rolls Royce which deals in several technologies for delivering cleanest, safest and
best competitive solutions for people well fare. In this assignment, it define that how this firm
has changed various activities and functions for improving the performances and achieve long
term profits or advantages as well. It will assess the culture and drivers for changes with
analysing barriers to change. This assignment will use models and theories for implementing
successful changes and explain how barriers will be overcomes as well.
TASK
1. Identifying the context, culture and drivers for changes with barriers to change
In this describe that many organisations focuses on various kinds of changes and
modifications which depends on the environmental aspects as well as improving business
performances in an effective manner. Changes must bes required for every organisations because
it helps in achieving long term benefits and support in facing many critical situations in an
effective way. As per the case study, it defines about Rolls Royce firm which is world's famous
firm and deals in number of products regarding civil aerospace, defences aerospace, power
systems and nuclear as well as marine (Edwards, 2014). This firm was facing different kinds of
problems regarding decreasing market shares and productivities, increasing costs, and many
more so these are affected on the business operations and loosing its market image among
competitors as well.
In a recent articles, it has founded that Rolls Royce undertakes various changes as per
current updates that can be taken from different sources of news agencies such as BBC news,
The Guardian and Daily Telegraph as well. They highlighted same story of Roll Royce but in
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different manner as how this company considered changes and taken various important steps for
the purpose of getting back firm's image in same ways as it was before. Company has appointed
to Mr. East for bringing number of changes for improving business performances and increasing
more profits as well as market shares in an appropriate manner.
Mr. Warren East has been appointed as the new Chief Operating Officer in the Rolls
Royce and he focused on making effective strategies and proper action plan for the purpose of
bringing effectiveness and create good positions in the market place (Williams, 2014). There are
defined some initial steps that has considered by them for better changes such as:
Cut out the layer of senior management: It is the biggest change which is undertaken by
Mr. East as he was making decision regarding removing number of layers in the top level so that
maximum profits can be gained and also more funds can be saved by Rolls Royce. As per the
various news agencies, they have provided same information such as according to BBC News,
Mr. East has made decision to remove senior management for restricting the profits sharing
among shareholders. So, they have announced that 3600 jobs will be cuts in which some of its
2,000 seniors managers were included.
Company will operate five business: The other biggest announcement by Mr. East for
Roll Royce that to operate five new businesses in several fields such as civil aerospace, defence
aerospace, marine, power system and nuclear as per the recent reports of this firm. BBC News
considered these informations along with removing the layer of top management (Booth, 2015).
According to The Guardian News article, they highlighted that from January, the company is
going to business in five major areas for the purpose of increasing profits and develop the
business in an effective way. These are as following: nuclear, marine, and power systems and
many more. So these are msajor changes that will be occurs in the future.
Restructuring: This is another important change which must be undertake by the various
organisations. It is related with organisational , cultures and other systems that can be affects on
the business operations at several ways. Rolls Royce has announced to change the company's
structure and reduce layers of top management so that maximum outcomes can be retained or
increase productivities in an efficient manner. They also formulate a new structure regarding
operational and operates five smaller businesses for developing firm and achieve long term
benefits in the company.
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Announcement of five profits warnings: It is an major issue that company wants to
resolve regarding profits. Mr. East focused on this criteria and try to find appropriate solutions
for five profits warning. This issues are responsible in decreasing shares prices as well as values,
profits which leaving it down as 38 % in this year, BBC News said in the article (Bradley, 2016).
It has been seen that Rolls Royce decreased its shares prices as halved so that they announced
five profits warning as well as thousand of redundancies for facing the several challenges of the
markets and its factors like high costs, or competitors.
Barriers to change:
It elaborate that doing changes is not an easy tasks for the firm as it is biggest challenge
for every organisations. It generally consists the ability for bringing various changes which one
of the major difference between organisations. Therefore, there are number of barriers included
which can be arise while running the business operations as well as adopt various changes in an
effective manner. In the Rolls Royce firm, they also are facing several problems due to
announcement of changes by Mr. East. These are as following:
Resistance to change: It is the main reason which can be impact on the makings
decisions regarding bring the effective changes in ans appropriate manner. As per the case study,
Rolls Royce is going to adapt number of changes such as removing the layers of top management
and recreate organisational structure so that profitability and productivities can be increased but
many of people or employees have affected towards changes because they are not ready to
accept it and think that it will make their life worse as well.
Staff members: Employees also can be a major reason behind barriers to change as Mr.
East announced for labour turnover so that at least dozen of staff members are affected towards
this decision. Senior manager also are creating barriers because they are not ready to accept Mr.
East actions and do not want to leave firm (Burge, and Ford, 2014). There are some major
changes occurred in the Rolls Royce such as operational changes and the way of working for
making engines for jets and marine and many mores which can be seen in the report of Daily
Telegraph in a specific article.
Improper management: Every firm required proper management for running business in
an effective way. It is compulsory while occurring any critical situations that can affects on the
business in several ways. Therefore, improper management also has major effect on the Rolls
Royce because they were not able to achieve benefits and increase market shares so this
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company make decision to recruit Warren East for improving business performances and achieve
set targets or goals in very appropriate way. He founded that there are lack of management and
arrangement for handling as well as operating business in very efficient manner. It is happening
due to slow reactions towards changes within the firm (Cameron, 2015). As it is necessary for
adopting changes according market fluctuation so that company was decreasing its market share
and image because of improper management in the business operations.
Therefore, Rolls Royce adopted number of changes and make effective plan or
procedures regarding operations so that particular targets can be achieved in well manner. They
have recruited a new chief operating officer for handling the situations of the firm. He brought
various changes that can be analysed by different data or information through News agencies
such as BBC News, The Guardian and Daily Telegraph.
2. Use appropriate models, develop theories and justify a plan for implementation of successful
changes
Theory of change may be considered as the specific methods or typologies which is
required for executing and implementing the particulars plans regarding bringing changes in an
effective manner. The theories and models are helpful components which support in outlining
casual linkages as well as achieve benefits as shorter terms, longer terms and intermediate and
many more advantages in well manner. It generally considered for implementing the defining
plans and ensure its proper executions so that better outcomes can be achieved within an
organisation. Rolls Royce announced number of changes for improving business performance in
an efficient manner (Green, 2015). Mr. East has planed for reducing layers of top management,
five profits warning and take step for operational excellence so that maximum costs can be
minimised and profitability can be increased in an impressive manner. It is necessary to adopt the
new theories and models for increasing the work productivities because this will support in
making effective changes and implement plans in an appropriate way so that organisational goals
or objectives can be achieved within the company. There are various theories and models
described which will support to Mr. East in executing particular plan such as:
Kurt Lewin's Change Model:
In this model, Kurt Lewin's explained that there are no any difficulties in for adopting
organisational changes and it is not a complex procedures for the organisation. He solved this
major problems just applying only three steps including unfreezing, changing and refreezing.
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This models is very effective as company can adopt or use this for making changes in the
organisation. This model is very simple and easy in understanding the several procedures of
changes in an appropriate manner (Doppelt, 2017). It generally entails to create perception for
change which is required and then move further regarding desired level of behaviours and
solidifying some new behaviours and many more. In the Rolls Royce, Mr. Warren East can
consider this model for better implementation of their actions plan within the firm. There are
defined some major three steps in the Kurt Lewin's Model such as:
Unfreezing: It is the first phase of this process as in this defined that many of people are
resist to change and they are not ready to accept any of alteration. The main of unfreezing stage
is to create awareness about the changes which are going to happen in the future. It also make
aware to the people regarding how the status quo, hinder the company and current level of
acceptability etc. in this procedure, manager examine the old behaviours including way of
thinking, people, procedures and the organisational structure are necessary for effective changes
so that company can survive in the critical environment and circumstances as well. It also will
support in maintaining the competitive advantages in the market place or among competitors.
Mr. East has to consider better communication process for passing information regarding several
changes which are taking place within the Rolls Royce firm (Goetsch, 2014). It is very
compulsory to know about the benefits for employees and organisation by accepting and
adopting changes in the organisation. This process also will support in provide motivation for
acceptance of change and feel necessary or urgent to consider this.
Changing: It is next phase where people are aware regarding changes and try to accept
following changes within the firm. In this process, company can begin to move for further step.
So it can be analysed that change is the process in which organisation must transits as well as
move into new state so that effective changes can be implemented. In the case of Rolls Royce,
Mr. East can execute its plan such as increasing market share and create better position in the
market place. They can execute the five profits warning so that every employees will work in
well manner. Mr. East announced that their major is to saved up to £200m a year from 2017 as
per the news of BBC and they also going to remove unnecessary layers of top management as
well as senior managers so that maximum outcomes can be achieved. They have to provide
proper informations regarding these decisions which are taking place within the company.
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Refreezing: It is similar to reinforcement and stabilisations for new state after
considering the changes in an effective manner. In this included several changes such as
structure of the organisation, procedures, goals or objectives, form new policies and regulations
and many more (Davis, 2014). As per the case study of Rolls Royce, Mr. East focused on
implementing plan such as launching new businesses into five major areas such as civil
aerospace, defence aerospace, marine, nuclear and power of systems that will support ins
increasing market shares, profitability and productivities within the firm. So refreezing is an
essential to bringing entire necessary changes in the organisation with effectively and efficiently.
Kotter's 8 Step Change Model:
In the present world, everything is dynamic that generally change according to time.
Business also change as in this consider the several aspects such as new initiative, improvements
in technologies, new initiatives and formulate plans or strategies so that firm can survive in the
competitive world. Therefore, many experts introduced various theories and models for defining
as how to do change. There is a model that originated by managements guru as John Kotter and
he introduced his eight step change process. These are as following such as:
Step 1: Create urgency
For bringing major changes, it is very beneficial for entire organisation as ins this
consider the needs or requirements for changes. It will support in providing motivations for
initial changes so that people will be aware regarding various alterations as well. Therefore, Mr.
East can implement his plan by undertaking this steps in the Rolls Royce (Goli and Balandin,
2014). In this required some necessary steps such as identifying potential threats, opportunities,
starts discussions and give specific reasons for dynamic and convince to people for talking as
well as thinking.
Step 2: Form a Powerful coalition
In this stage, the necessary task starts which must be performed by the manager so that
changes can be brought in the firm. Mr. East also have to convince employees for accepting
changes so it is necessary to take effective support and strong leadership so that changes can be
lead. Rolls Royce can increase its profits as well as long term benefits with the help of powerful
coalition. There are some important step which must be undertake as like identify true leadership
and key stakeholders within the organisation who can work effectively for bringing changes.
Step 3: Create Vision for Change
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In this defined several ideas and solutions as well as best thoughts regarding particular
change and these must be linked with overall vision so that people can easily remember it. In the
Rolls Royce firm, Mr. East has to clear about his plan such as cut the layers of senior manager
and focus on improving business operations with better development. So that people are
regarding several changes (Lindner and Suckow, 2014). Here are some major aspects which is
necessary to consider like determining the values, create appropriate strategies and provide
proper informations to the people.
Step 4: Communicate the vision:
This is very important stage where the plans or visions are going to be implement. Mr.
East has to choose better modes of communications so that every individual will be aware
regarding the strategies, action plans and also make appropriate decisions for solving defining
problems. Mr. Warren East has to communicate about restructuring, bring changes and labour
turnover as well within the firm.
Step: 5 Remove Obstacles
In this stage, there are various situations can be occurred that create resistance to change
so it has negative impacts on the changes within the firm. Staff members may be not ready to
accept these changes such as in the case of Rolls Royce. Many of seniors managers are departing
from the firm so it is major barriers and Mr East have to identify or remove these in well manner.
Step 6: Create short- term Wins:
In this phase, company have to create a short term targets or goals which will support in
bringing effective changes and achieve best possible outcomes. In the Rolls Royce, they also
have to formulate short term goals rather than long term (Luyssaert and Jammet, 2014). There
are some important step such as look fro fire projects and implement the particular actions plan
in well manner.
Step 7: Build on the Change
Kotter defined that some of changes bring negative results as fail because they declared
too early therefore, it is necessary for proper improvements of plan. It is necessary in the Rolls
Royce firm as they have to improve the all steps and make appropriate plan such as adoption of
changes within the firm.
Step 8: Anchor the changes in corporate culture
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In this step, organisation have to consider the continuous improvement in the plan so Mr.
East also have to check its implementation of planning (Gielen, 2014). It will support in making
better changes within the firm in an effective manner.
Therefore, These are several models and theories that can be beneficial for Rolls Royce
and Mr. East can implement the plan in an efficient way.
3. Explain how the most significant barriers to change will be overcome
Rolls-Royce is multinational organisation having good brand image in market. The main
aim of management is bring changes in their organisational structure according to current trends
and need to make their business activities more effective and efficient. There are many changes
which are made within the organisation which is identified from the report which is published
inn three different articles named BBC, The Guardian and Daily telegraph (Regos and D’Amen,
2015). From the analysis of the above report identified the changes like change in structure of
organisation through removal of top management, improvement of operational efficiency and cut
of huge amount of jobs. This is important to improve profitability as they got five warnings in
last two years. As there are many barriers which impacts to effectively implement these change
within the organisation such as behaviour and resistance of employees, lack of management and
many more. It is important fro organisation is to adopt different tools and techniques for
successful implementation of these changes are defined below:
Development of contingency plans by government: It is observed that large number of
loss are born by organisation in past two years and for that they warned many times. It is not
possible for organisation solely to recover from these situations and make it more profitable
(Brotons, 2015). In this regard, initiative is taken by the government and develops contingency
plans regarding their business operations about nuclear submarines to have force merge with
BAE systems to improve the performance of such business. After announcement of this news
observed that the shares of Rolls-Royce is increased by 2.3%.
Education and effective communication: Another resistance is respect of change is
faced from the point of view of employees. As they don't want to accept the new changes
because it affects their routine work which results in reduces the quality of work. Development
of effective education and communication programme helps to bring awareness among the
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employees about the need of change within the organisation for reduction of losses. Through this
support of employees is ascertained by the organisation in different operational activities. On the
other hand , education programmes helps in development of the skills and knowledges which
enhance their understand about the overall importance of change within the organisation for
attaining effectiveness in their business operations.
Facilitating participation and involvement: This techniques helps in development of
the collaborative environment within the organisation through attaining the views of employees
before implementation of changes (Van and Voet, 2014). This will have importance regarding
motivation of employees and attaining their trust and loyalty towards organisational decisions.
This will contributes in removal of the problems regarding staff turnover. The employees of
organisation feel the important part of as they consulted. It is better for organisation also to
correct if thee is lack of planning.
Support and facilitation: There are many reason because of which employees to
accepted the changes with the Rolls-Royce such familiar with old way of working methods. In
this regard there is need to boost up their morale through providing emotional support and
facilitation in all the case of challenges through effective guidance (Webb, 2017). This helps to
express their views and development of new skills to attain better results.
CONCLUSION
As per the above report it has been summarised that changes are require and necessary to
getting various opportunities easily. For these kind of modification firm requires to use effective
management process to reduce its negative impact and maximise profitability as well. For
management of changes firm requires to use effective framework to manage all activities in
proper manner. This project report is based on effective case study of Rolls Royce which deals in
several technologies for delivering cleanest, safest and best competitive solutions for people well
fare. So for them it is require to adopt several alteration that helps to maximise employees
performance and firm;s productivity as well.
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REFRENCES
Books and Journals
Benn, S., Edwards, M. and Williams, T., 2014. Organizational change for corporate
sustainability. Routledge.
Booth, S.A., 2015. Crisis management strategy: Competition and change in modern enterprises.
Routledge.
Bradley, G., 2016. Benefit Realisation Management: A practical guide to achieving benefits
through change. CRC Press.
Burge, C.A. and Ford, S.E., 2014. Climate change influences on marine infectious diseases:
implications for management and society.
Cameron, E. and Green, M., 2015. Making sense of change management: A complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Goli, P. and Balandin, A.A., 2014. Graphene-enhanced hybrid phase change materials for
thermal management of Li-ion batteries. Journal of Power Sources. 248. pp.37-43.
Intergovernmental Panel on Climate Change, 2015. Climate change 2014: mitigation of climate
change (Vol. 3). Cambridge University Press.
Lindner, M. and Suckow, F., 2014. Climate change and European forests: what do we know,
what are the uncertainties, and what are the implications for forest management?.
Journal of environmental management. 146. pp.69-83.
Luyssaert, S., Jammet, M. and Gielen, B., 2014. Land management and land-cover change have
impacts of similar magnitude on surface temperature. Nature Climate Change. 4(5).
p.389.
Regos, A., D’Amen, M. and Brotons, L., 2015. Fire management, climate change and their
interacting effects on birds in complex Mediterranean landscapes: dynamic distribution
modelling of an early-successional species—the near-threatened Dartford Warbler
(Sylvia undata). Journal of Ornithology. 156(1). pp.275-286.
Van der Voet, J., 2014. The effectiveness and specificity of change management in a public
organization: Transformational leadership and a bureaucratic organizational structure.
European Management Journal. 32(3). pp.373-382.
Webb, S.P., 2017. Knowledge management: Linchpin of change. Routledge.
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