Organizational Change Management Analysis

This assignment requires you to analyze various organizational change management models and frameworks, examining their effectiveness and applicability in different contexts. You will delve into real-world case studies, applying theoretical concepts to understand how organizations navigate change successfully. The focus is on evaluating the impact of leadership, employee involvement, communication strategies, and cultural factors on the change process.

Running head: ORGANIZATIONAL CHANGE MANAGEMENT
Organizational change management
Name of the student:
Name of the University:
Author note:

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Abstract
The report shows the organizational change of Z Energy Limited. Z Energy Limited is a New
Zealand based company, which acts as a fuel distributor. The organization has its own branded
service stations. Organizational changes are necessary from time to time in order to remain ahead
of the competitors and to survive in the long- run. There are several difficulties associated with
changes such as resistance from employees. However, embracing changes is essential for the
growth and development of an organization.

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ORGANIZATIONAL CHANGE MANAGEMENT
Table of Contents
1. Introduction:................................................................................................................................4
1.1. Company background...........................................................................................................4
1.2. Structure of organization......................................................................................................5
1.3. Products and or services of the organization........................................................................5
1.4. Vision and goals of organization:.........................................................................................6
1.5 PESTLE analysis of the organization........................................................................................6
2.1 Research objectives...................................................................................................................8
2.2 Data collection and findings:.....................................................................................................9
3.1 Research findings and Discussion.............................................................................................9
3.2 Social process perspectives of managing change....................................................................10
3.2.1 Biological perspective......................................................................................................10
3.2.2 System perspective...........................................................................................................11
3.2.3 Rational perspective..........................................................................................................11
3.3 Change management model.....................................................................................................11
Kurt Lewins change model........................................................................................................11
John Kotter’s change model......................................................................................................13
3.4 Hard or soft model...................................................................................................................15
3.5 Alternative change strategies...................................................................................................16

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Total quality management.........................................................................................................16
High performance work organization........................................................................................17
4. Conclusion.................................................................................................................................17
5. Recommendations......................................................................................................................18
6. Referencing................................................................................................................................21

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1. Introduction:
Organizational change refers to the changes in management and business processes of an
organization. Organizational changes are necessary from time to time in order to remain ahead of
the competitors and to survive in the long- run. There are several difficulties associated with
changes such as resistance from employees (Benn, Dunphy & Griffiths, 2014). However,
embracing changes is essential for the growth and development of an organization. Successful
companies know the importance of organizational change in achieving competitive advantage. It
involves understanding the needs and wants of the customers and developing products and
services accordingly (Cameron & Green, 2015). It involves ensuring that the quality of products
and services meet the expectations of the customers. The report explains the organizational
change in Z Energy Limited.
1.1. Company background
Z Energy Limited is a New Zealand based company, which acts as a fuel distributor. The
organization has its own branded service stations. It is a dual listed public company and a
successor of Shell New Zealand Limited and Greenstone Energy Limited. The organization was
founded in the year 1911 as Shell New Zealand Limited in Auckland. The organization is located
in more than 305 locations in New Zealand and Australia. The company mainly deals in diesel,
petrol and oil. The organization provides employment to more than 2500 individuals. The
company supplies fuel to several large commercial and retail customers such as airlines, mines,
trucking companies and several others. The organization is also involved in providing bitumen to
the roading contractors ("Quality fuels, Forecourt service, Nationwide petrol station and
truckstop network, Fresh food and great coffee - Z is for New Zealand | Z", 2017)

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ORGANIZATIONAL CHANGE MANAGEMENT
.
1.2. Structure of organization
The senior management team of the organization comprises of Chief Executive Officer, Chief
Financial Officer, General counsel, General manager corporate, General manager supply and
distribution, General manager retail, General manager commercial, General manager HSSE
(Health, Safety, Security and Environment), General manager people and culture and General
manager marketing. The organization has its board of members, which comprises of seven
people namely Peter Ward Griffiths, Alan Michael Dunn, Paul Fowler, Marko Bogoievski, Dr.
Bruce Harker, Abby Foote and Justine Munro ("Quality fuels, Forecourt service, Nationwide
petrol station and truckstop network, Fresh food and great coffee - Z is for New Zealand | Z",
2017).
1.3. Products and or services of the organization
Z Energy Limited is a New Zealand based company, which acts as a fuel distributor. The
organization has its own branded service stations. The company mainly deals in diesel, petrol
and oil. The company supplies fuel to several large commercial and retail customers such as
airlines, mines, trucking companies and several others. The organization is also involved in
providing bitumen to the roading contractors. For motorists, the Company offers fuels, such as
ZX Premium Unleaded, Z91 Unleaded, Z Bio D Biodiesel and Z Diesel. The organization is
located in more than 305 locations in New Zealand and Australia ("Quality fuels, Forecourt
service, Nationwide petrol station and truckstop network, Fresh food and great coffee - Z is for
New Zealand | Z", 2017). The Company also supplies bulk fuel to trucking companies, airlines,
transport firms, construction companies, power generators, farmers, loggers and mining
operations. The Company also supplies bitumen to roading companies.

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ORGANIZATIONAL CHANGE MANAGEMENT
1.4. Vision and goals of organization:
The goal of the organization is to represent the capabilities of New Zealanders to put their
minds to the things that matter such as putting service into service stations, supporting local
neighbors, fueling New Zealand to grow further and rewarding the investors for their trust in the
company ("Quality fuels, Forecourt service, Nationwide petrol station and truckstop network,
Fresh food and great coffee - Z is for New Zealand | Z", 2017). The organization aims to bring
out purpose to life for their customers, shareholders and stakeholders. The purpose refers to what
guides everything the organization does that is to “solve what matters to for a moving world”.
The vision of the company is to become a globally recognized Kiwi company and
become a role model for other organizations.
1.5 PESTLE analysis of the organization
Political factors: Political factors play an important role in the survival and profitability of an
organization. Z Energy deals in diesel, petrol and oil in several countries and has to deal with the
political environment and the several risks involved in the political systems across the nations. In
order to ensure profitability in the energy industry across the nations, it is necessary to diversify
the potential political risks. There are several factors that are required to be analyzed while
conducting business overseas. The factors involve political stability in the other nations,
corruption levels, legal framework, trade regulations, anti- trust laws, pricing regulations, wage
legislation, taxation policies, industrial safety regulations, interference level of the government in
energy industry (Zalengera et al., 2014).
Economical factors: The economic conditions of the countries affect the business functions of Z
Energy. Several factors such as inflation rate, interest rates, foreign exchange rate, savings rate

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and the economic cycle of the nations determine the demand of the products of Z Energy.
Several other factors that determine the demand of the products of Z Energy involve the level of
competition within the country. The organization can study the information related to the
inflation rate, growth rate, tastes and preferences of the customers, etc in order to forecast the
demand and profitability. The economic factors to be considered involve kind of economic
system, type of market, exchange rates, quality of infrastructure, condition of the financial
markets, comparative advantages, workforce skills, education level, labor costs, business cycle
stage, economic growth rate, unemployment rate, discretionary income, interest rate, inflation
rate and several other factors (Makos, 2015).
Social factors: The culture of a society highly influences the success or failure of an
organization. The attitude and belief of the people play a vital role in determining the marketing
and sales strategies. It is necessary to understand the buying patterns of the customers in the
target market in order to determine the scope of success or failure of a business. Therefore, it is
necessary to study the demographics of an area, the education level of the population, class
structure in the society, culture, entrepreneurial spirit, attitudes and leisure interest of the target
population (Team, 2013).
Technological factors: There have been rapid changes in the technologies all over the world.
The transportation industry has witnessed several technological advancements in the past few
years. The number of vehicles has also increased over the past few years. The taxi industry has
also gone through a massive revolution with the introduction of several companies such as Uber.
Automation has changed the outlook of the car industry (Petrou, Demerouti & Schaufeli, 2016).
Therefore, Z Energy is required to study the technological changes of the rivals, the impacts of

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technological changes on the products offered, impact of cost structure and value chain structure
in the Energy industry and the level of technological diffusion.
Legal factors: The legal structures differ from one country to another. Therefore, the
organizations are required to study the legal structures of the countries in which they operate. Z
Energy must also analyze the legal framework and the legal institutions in the countries in which
it operates. Some of the legal factors to be considered involves discrimination law, consumer
protection law, data protection law, health and safety law, employment law, intellectual property
law and anti- trust law prevalent in the energy industries across the nations (Anderson, 2016).
Environmental factors: The several environmental factors that affect Z Energy involve
weather, climate change, air and water pollution, waste management systems, endangered
species, etc. The business activities of Z Energy highly affects the environment, therefore; the
organization is required to study the impact of the business activities of the organization on the
environment (Nacamulli, Sheldon & Della Torre, 2017).
2.1 Research objectives
The research objectives are as follows:
 To understand the importance of organizational change
 To identify the organizational changes required in Z Energy Limited
 To analyze the impact of organizational changes in Z Energy Limited
 To suggest suitable organizational changes that shall help the organization to
further develop and increase its profitability

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2.2 Data collection and findings:
The data collection process involves primary data collection method and secondary data
collection method. In this case, both primary data collection technique and secondary data
collection techniques would be appropriate to identify the areas in which organizational changes
are required within the firm to improve its efficiency. In case of primary data collection, the
employees of the organization shall be interviewed in order to know the type of organizational
changes that are necessary for the further development of the organization (Orkin, 2014). The
organizational change might be related to personnel change, technological change or remedial
changes. For this purpose, the organizational members shall be interviewed and the results
obtained from the data collected shall be analyzed to take further actions. The organization
comprises of more than 2500 employees and a random sample population of 500 employees shall
be interviewed in order to derive conclusions for the entire population. In case of secondary data
collection, the market trends in the fuel and energy shall be analyzed in order to find out the
necessary changes that are required. The strategies utilized by the competing firms shall also be
analyzed in order to find out suitable organizational changes and strategies that shall help the
organization to remain ahead of the competitors (Best & Kahn, 2016).
3.1 Research findings and Discussion
The research findings indicate the necessity of reorganization the personnel within the
organization in order to improve the efficiency of the organization and remain ahead of the
competitors. The organizational change shall require personal development, ergonomic work
place and improving the level of job satisfaction among the employees (Matthews & Ross,
2014). The organization is required to undergo massive hiring and layoffs in order to ensure that
the best employees remain within the organization.

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 A major issue found was presence of a large number of older staff that has become
unproductive and lack the technological advancement. Therefore, the organization is
required to hire fresh candidates with higher productivity and greater knowledge of
technologies. However, these changes might negatively affect the employees. Therefore,
it is necessary that the organization ensures that the organizational change is managed in
an appropriate manner that does not result in resistance towards the change.
 Another major change required for increasing the competitive capacity of the
organization requires mergers, acquisitions or joint ventures. This shall increase the
financial strength of the organization and shall enable the organization to explore the
international markets and obtain benefits from them.
3.2 Social process perspectives of managing change
The organizations operate in close relation to the society and involve social factors that
are required to be considered. Organizational change management is highly dependent upon the
social factors such as demographics and social mobility, lifestyle patterns and changes, attitudes
and actions of people, perception and influence of media and ethnic and religious differences
(Haslam et al., 2014).
3.2.1 Biological perspective
The biological perspective of managing change considers that the perceptions of the
individuals differ from each other. The perception of an individual changes as it grows to an
adult and matures until he dies (Colquitt et al., 2013). For example, the perceptions of the
employees of Z Energy Limited might change from time to time. In such a case, it becomes

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necessary to consider the opinions of the organizational members in order to ensure successful
change management.
3.2.2 System perspective
Systems perspective states that even a small change within an organization might have
several impacts on the organization and its members. For example, there are several subsystems
in a human body such as respiratory system and muscular system in the similar manner, there are
several sub systems within an organization, which are inter related to each other. Any change in
one system shall affect the other systems (Wooten & Hoffman, 2016). Therefore, it is necessary
to consider the impacts of the changes on all the related systems.
3.2.3 Rational perspective
The rational perspective is within the power of the managers to influence as they possess
appropriate authorities and adequate resources that helps in achieving the organizational
objectives (Dawson & Andriopoulos, 2014). For example, suggestions and opinions from the
managers in Z Energy Limited must be taken in to consideration before deciding the change and
implementing it within the organization.
3.3 Change management model
Kurt Lewins change model
Change is an important part of every organization (both small and large organizations). In
the fast changing world, it becomes necessary for the organizations to adapt and implement the
necessary changes in order to remain ahead of the competitors and survive in the long- run. The
organizations that manage changes efficiently have more chances of becoming successful. The
process in which organizations manage change differs in terms of nature of business, the change

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involved and the people involved. The Lewin’s change model comprises of three stages namely
unfreeze, change and freeze. The first stage is unfreezing. In this stage, the organization gets
ready for the change (Cummings, Bridgman & Brown, 2016). This involves understanding the
fact that the change is necessary for the betterment of the organization and getting prepared for
moving out of one’s present comfort zone. The more the organization feels that the change is
necessary, the more it is motivated to implement the required changes. The second stage involves
change or transition. In this stage, the organization actually implements the changes. This stage
is often referred to as the most difficult stage (Burnes, 2017). There are high chances of
resistance to changes as it is difficult for the people associated with an organization to accept the
changes. The last stage involves freezing. In this stage, the organization aims at establishing
stability after the necessary changes have been implemented. The changes are accepted by the
organizational people and they start feeling comfortable with their present routines (Bartunek &
Woodman, 2015).
Figure 1: Kurt Lewin’s change model
(Source: Cummings, T. G., & Worley, 2014)

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John Kotter’s change model
Kotter trusted that it is basic to experience a few stages keeping in mind the end goal to
effectively actualize changes inside an association. The initial step includes making a feeling of
urgency. As indicated by him, for a change to be effective, more than 75 percent of the members
of the organization must feel the need and criticalness of the change. The change must be
actualized when it is distinguished as any postponement in executing change may prompt
misfortunes and wastefulness of the associations (Calegari, Sibley & Turner, 2015). The second
step includes making a directing coalition. This progression specifies that it is important to
include the authoritative individuals keeping in mind the end goal to effectively actualize the
change on the grounds that the senior administration and officials cannot be the only ones who
execute the change. The senior experts are required to control the representatives of the
association and help them to adjust with the progressions. The third step includes building up a
dream and technique. It is important to build up an appropriate system and vision. The change
administrator is in charge of creating proper methodologies that will direct the change procedure.
They are required to include all the key partners in the change administration process (Pollack &
Pollack, 2015).
The fourth step is passing on the change vision. It is exceptionally important to impart the
progressions that are to be actualized inside an association that might influence the key partners.
Change cannot be actualized effectively by insignificant arranging the change rather, it is
important to pass on the progressions to the related partners so they can set themselves up for the
progressions to be executed inside the association. The fifth step includes engaging
representatives. In this progression, the change isn't just passed on to the related partners yet in
addition they are permitted to concoct their contemplations, fears and thoughts in regards to the

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change. It is fundamental to include the general population who should be influenced because of
the progressions so that there is no protection and the change is actualized with no obstacles.
The 6th step includes producing temporary wins. Keeping up force is basic for the
effective usage of progress. Short- term wins is one of the techniques that assistance in the
fruitful usage of changes by making early progress. The seventh step includes merging gains. In
this progression the fleeting wins should positively affect the related individuals and they might
be urged to additionally actualize the adjustment keeping in mind the end goal to get long haul
picks up (Issah & Zimmerman, 2016). The eighth step includes mooring new methodologies in
the way of life. The associations must be continually engaged with growing new methodologies
that assistance in the hierarchical advancement in light of the fact that the methodologies, which
have been effective in the past might not be fruitful later on. Along these lines, the associations
must be inventive and creative and thought of another approach when the past methodologies
appear to be of no utilization.

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Figure 2: Kotter’s change model
(Source: Pollack & Pollack, 2015)
3.4 Hard or soft model
The 'hard' components of change are the undertakings inside change management, which
are characterized and measured. “Soft’ elements, for example, culture and inspiration might be
harder to evaluate. Accentuation might be set after overseeing undertaking factors to the
detriment of delicate components amid change intercessions; nonetheless, Farkas (2016)
contended that four hard factors correspond to the result of progress mediations, to be specific:
term (time span); honesty (dependence on administrators); duty (of all associated with change);
and exertion (inside the chance of time permitted). While portraying change, organizations are
required to consider the speed and size of progress, and relate this to the issue of multifaceted
nature. The issues that change present to an association can be seen by supervisors as
'challenges', which are 'limited' in that they can be very much characterized (determined) and can
be managed without including or affecting on the more extensive association. Another
classification of issues are those which can't be all around characterized and are 'unbounded' as in
the more extensive association is embroiled and should be engaged with managing these sorts of
issues. In the case of Z Energy Limited, the change is soft change as it involves change in the
human resource management.

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3.5 Alternative change strategies
Total quality management
Total quality management (TQM) refers to the organizational effort that is developed to
enhance the quality of products or services provided by the organizations. In the highly
competitive environment, the organizations are required to pay more attention towards the
quality of its products and services (Mitra, 2016). Several organizations nowadays hire external
consultants and initiate several quality training workshops for their employees. Successful
companies know the importance of total quality management in achieving competitive
advantage. Total quality management involves giving preference to the needs and wants of the
customers and developing products and services accordingly (Goetsch & Davis, 2014). It
involves ensuring that the quality of products and services meet the expectations of the
customers. In case of total quality management, the initial objective of the organizations is to
identify and meet the expectations of the customers. According to Total quality management, a
product is of no worth if it is unable to satisfy the expectations of the customers (Dale, 2015).
Another aspect of total quality management is that it focuses upon continuous improvement.
High performance work organization
High performance work organization refers to the organizations, which have greater
involvement of the organizational employees in the decision- making process. The high
performance work organizations provide greater control to the organizational employees over
their reward structure, which results in greater efficiency and motivation among the employees
(Gimenez- Espin, Jiménez- Jiménez & Martínez- Costa, 2013). The high performance work
organizations aim at increasing the job satisfaction of the employees by providing them with
several benefits and rewards such as profit- sharing, job rotation, job enlargement, job

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enrichment, on the job training, outside training, incentives, pay based upon merit and several
other benefits (Jensen, Patel & Messersmith, 2013). It is necessary for the organizations to aim at
becoming a high performance work organization in order to remain profitable in the high
competition market (Katzenbach & Smith, 2015).
4. Conclusion
Organizational changes are necessary from time to time in order to remain ahead of the
competitors and to survive in the long- run. There are several difficulties associated with changes
such as resistance from employees. However, embracing changes is essential for the growth and
development of an organization. Z Energy Limited is a New Zealand based company, which acts
as a fuel distributor. The company supply fuel to several large commercial and retail customers
such as airlines, mines, trucking companies and is one of the leading suppliers of fuel and energy
in New Zealand. However, the organization is required to undergo massive hiring and layoffs in
order to ensure that the best employees remain within the organization. A major issue found was
presence of a large number of older staff that has become unproductive and lack the
technological advancement. Another major change required for increasing the competitive
capacity of the organization requires mergers, acquisitions or joint ventures. This shall increase
the financial strength of the organization and shall enable the organization to explore the
international markets and obtain benefits from them.
5. Recommendations
Z Energy Limited is required to emphasize upon its human resource management
techniques in order to ensure successful change implementation. For this purpose, the
organization must must involve the organizational employees and managers and devise suitable

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motivational techniques to avoid resistance to the changes. An in depth market research is
necessary to identify the market trends and the marketing strategies used by the competitors.
Only after the collection and analysis of the relevant data, the change must be initiated. It is also
necessary to keep the organizational employees satisfied in order to obtain their support during
the entire change process. The organization must follow Kotter’s eight steps of change
management in order to ensure the success of the organizational change. For the change to be
effective, it must be ensured that more than 75 percent of the members of the organization must
feel the need and criticalness of the change. The change must be actualized when it is
distinguished as any postponement in executing change may prompt misfortunes and
wastefulness of the associations. It is fundamental to include the general population who should
be influenced because of the progressions so that there is no protection and the change is
actualized with no obstacles.
Smart objectives Activities Methods Time frame
Increasing the
competitiveness of
the organization
 Collecting
data regarding
the
competitive
strategies of
the rival
organizations
 Analyzing the
current
 Making
provisions for
detailed market
research
1 month

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ORGANIZATIONAL CHANGE MANAGEMENT
strategies of
the
organization
Increasing the level
of job satisfaction
among the employees
 Involving the
employees in
the change
management
process
 Offering
attractive
wages and
incentives to
the employees
 Using non-
monetary
motivational
techniques to
motivate the
employees
 Implementing
effective human
resource
management
techniques
2 months
Implementing the
change management
successfully
 Promoting the
necessity of
the change
 Involving
 Following
Kotter’s eight
steps of change
management
6 months

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ORGANIZATIONAL CHANGE MANAGEMENT
organizational
employees
 Helping the
organizational
members to
become
comfortable
with the
change

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ORGANIZATIONAL CHANGE MANAGEMENT
6. Referencing
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organizational change for implementation (LOCI): a randomized mixed method pilot
study of a leadership and organization development intervention for evidence-based
practice implementation. Implementation Science, 10(1), 11.
Anderson, D. L. (2016). Organization development: The process of leading organizational
change. Sage Publications.
Bartunek, J. M., & Woodman, R. W. (2015). Beyond Lewin: Toward a temporal approximation
of organization development and change.
Benn, S., Dunphy, D., & Griffiths, A. (2014). Organizational change for corporate
sustainability. Routledge.
Best, J. W., & Kahn, J. V. (2016). Research in education. Pearson Education India.
Burnes, B. (2017). Kurt Lewin: 1890–1947: The Practical Theorist. The Palgrave Handbook of
Organizational Change Thinkers, 1-15.
Calegari, M. F., Sibley, R. E., & Turner, M. E. (2015). A Roadmap for Using Kotter's
Organizational Change Model to Build Faculty Engagement in Accreditation. Academy
of Educational Leadership Journal, 19(3), 31.
Cameron, E., & Green, M. (2015). Making sense of change management: A complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.

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ORGANIZATIONAL CHANGE MANAGEMENT
Carter, M. Z., Armenakis, A. A., Feild, H. S., & Mossholder, K. W. (2013). Transformational
leadership, relationship quality, and employee performance during continuous
incremental organizational change. Journal of Organizational Behavior, 34(7), 942-958.
Colquitt, J. A., Scott, B. A., Rodell, J. B., Long, D. M., Zapata, C. P., Conlon, D. E., & Wesson,
M. J. (2013). Justice at the millennium, a decade later: A meta-analytic test of social
exchange and affect-based perspectives.
Cummings, S., Bridgman, T., & Brown, K. G. (2016). Unfreezing change as three steps:
Rethinking Kurt Lewin’s legacy for change management. human relations, 69(1), 33-60.
Cummings, T. G., & Worley, C. G. (2014). Organization development and change. Cengage
learning.
Dale, B. (2015). Total quality management. John Wiley & Sons, Limited.
Dawson, P., & Andriopoulos, C. (2014). Managing change, creativity and innovation. Sage.
Farkas, F. (2016). Hard and Soft Approaches of Strategic Organisational Change Management.
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Gimenez-Espin, J. A., Jiménez-Jiménez, D., & Martínez-Costa, M. (2013). Organizational
culture for total quality management. Total Quality Management & Business
Excellence, 24(5-6), 678-692.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.

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Haslam, S. A., van Knippenberg, D., Platow, M. J., & Ellemers, N. (Eds.). (2014). Social identity
at work: Developing theory for organizational practice. Psychology Press.
Issah, M., & Zimmerman, J. A. (2016). A Change model for 21st Century Leaders: The
Essentials. International Journal of Pedagogical Innovations, 4(1), 23-29.
Jensen, J. M., Patel, P. C., & Messersmith, J. G. (2013). High-performance work systems and job
control: Consequences for anxiety, role overload, and turnover intentions. Journal of
Management, 39(6), 1699-1724.
Katzenbach, J. R., & Smith, D. K. (2015). The wisdom of teams: Creating the high-performance
organization. Harvard Business Review Press.
Makos, J. (2015). An Overview of the PESTEL Framework. PESTLE Analysis, 18.
Matthews, B., & Ross, L. (2014). Research methods. Pearson Higher Ed.
Mitra, A. (2016). Fundamentals of quality control and improvement. John Wiley & Sons.
Nacamulli, R., Sheldon, P., & Della Torre, E. E. (2017). Meta-Organizations and Upper
Echelons: Exploring Strategic and Organizational Change in Employer Associations.
Orkin, K. (2014). Data Collection Methods. In Encyclopedia of Quality of Life and Well-Being
Research (pp. 1430-1432). Springer Netherlands.
Petrou, P., Demerouti, E., & Schaufeli, W. B. (2016). Crafting the change: The role of employee
job crafting behaviors for successful organizational change. Journal of Management,
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