Analysis of Change Management Strategies for ABC Manufacturing Company

This report examines change management strategies for ABC Manufacturing, which aims to increase its production rate by 100%. The report explores two primary options: doubling the workforce through external and internal recruitment or automating production processes. It analyzes the Lewin's model and the 7-S model of McKinsey for the first option and Kotter's 8-step model and Bridges' Transition model for the second. The report then assesses the risks associated with each option, including recruitment challenges, increased managerial needs, decreased versatility, and potential pollution. A business risk management plan is proposed, considering the financial implications of automation and the need to mitigate employee layoffs. The report concludes by outlining strategies for driving innovation, implementing a change management plan, and developing relationships with stakeholders to ensure a smooth transition and sustainable growth for ABC Manufacturing.

CHANGE MANAGEMENT

Table of Contents
Introduction 3
Task 1: Change management models. 3
Option 1 3
Option 2 4
Task 2: Working through the change 5
2.1. Risks associated with both the options 5
2.2a. Business risk management plan 6
Task 3: Strategies for innovation and organisational changes 7
3.1. Strategic process for driving innovation 7
3.2. Implementation of change management plan 7
3.3. Developing business relationship with external stakeholders 8
3.4. Maintaining business relationship with external stakeholders 8
Conclusion 8
References 9

Introduction
Change management refers to the systematic approach of dealing with a change, transition or
transformation of a company's goals, technologies and processes. Change management is needed
for the implementation of strategies that effect and control change and help people to adapt to
those changes (Belias,, & Koustelios, 2014). Methodologies of these kind more often than not
requires an organized technique which demands for a change and components for reacting to
those solicitations and following up the equivalent. A successful change administration process
must think about the effect of a modification or substitution on procedures, frameworks and the
representatives inside the association.
Task 1: Change management models
Hiring new employees is crucial for ensuring the success of a company. Considering the case
being analyzed, the company, ABC requires to increase its production rate by 100%. In order to
do the same the organization will require to either double the number of employees or
automatize the present production processes and fire any staffs that are unnecessary.
Option 1
The recruitment processes can be divided into two main types. These are external and internal.
External recruitment processes create opportunities for the acquisition of new talents into the
organization. Moreover, it provides the organization the essential opportunity to form diverse
teams of employees (Groves, Jacobsen, Dutta, & Trewin, 2014). Additionally, it provides the
opportunity to apply innovative strategies for management that that can create positive
opportunities for organizational advancement and sustainable growth.
However, internal employment also has many advantages. This type of employment concerns the
hiring of people that already have acquired significant levels of knowledge, skills and experience
in the same organization. This makes them more effective towards managing their newer
responsibilities in the organization with greater morale and newer perspectives (Ramos, et al.
2015).

There are 2 models of change management that can be implemented by the organization for the
transition. The Lewin’s model for change management and the 7-S model proposed by
McKinsey.
There are three stages in the Lewin’s model and they are unfreezing, making changes and lastly
re-freezing. Unfreezing is the essential understanding of each steps and human interactions for
potential of improvement. Through this process, any bias or mistakes that are commonly
occurring within the organizational framework. The process of hiring or deploying new
employees gets smoother due to this with the additional benefit of easing the process for
internally hiring employees in newer positions. The changes have to be made as the next step
when the team is ready to adapt to the changes. The new status-quo need to be refrozen once the
changes have been effectively applied (Al-Haddad, & Kotnour, 2015). This becomes much
important as there is a vital need for the new model to stick to the entire exercise. The 7-S model
proposed by McKinsley analyzes the holistic nature of the aspects in view of the company. The
changes that are most important are highlighted and a unified approach towards business is
formed. The 7-S are strategy, systems, shared value, style, skills and staffs.
Option 2
Workflow automation helps to reduce and occasionally even eliminates the amount of time that
is spent towards repetitive processes (Thiry, 2016). This creates the scope for fewer errors with
lesser risks. Productivity efficiency is also increased greatly and the developments are also easily
assessable. As per the case of the ABC manufacturing corporation, the automation can help to
optimize the functionalities of the manufacturing as well as all the other essential departments.
The legal department can make sales contracts that are automated, the financial department can
automate the pto requests and the HR departments can automate the aspects of employee on
boarding.
There are two models that can effectively support the organization in this case. The 8-step model
of Kotter and the Transition model of Bridges are two effective models.
In the model of Kotter the primary focus is on people that can be behind the change. In relation
to the same the model considers a top down point of view rather than the change. There are 5
essential steps that make the theory work. The steps involve building a desperation feel, making
crucial central alliances, making key visions, getting every important work force on board,
evacuation of obstructions and grindings if any, the creation of present oriented winning

opportunities, supporting quick implementations and setting up sustainable progress (Teal, et al.
2015). Automation will further enhance the prospects of Kotter’s theory and will help towards
the creation of a healthier environment and smoothen the management process.
The transition model of Bridges primarily focuses on transitional processes rather than change.
The model is in contrast to Kubler-Ross model that display 5 phases pertaining to sadness,
disapproval, dealing, outrage, acknowledgement and discouragement. People are considered
important towards change and is considered to be intrusive. Transition is a systematic process
that depends on steps rather than abrupt unwarranted shift. Three essential stages for transition is
dealt with in this process. The stages are ending, losing and leaving. The emotional aspects of
individuals are guided through this process (Ceptureanu, 2015). The neutral zone is the next
process. In this step the employees go through a confusion phase related to the new
manufacturing processes that might result in the productivity getting hampered. The new
beginning is the next step. The step begins with the employees’ acceptance of the new ways and
when they are willing to adapt to new circumstances (Matos Marques Simoes & Esposito, 2014).
The model is not smoothest but it can be the most effective considering the functions of the ABC
manufacturing company.
Task 2: Working through the change
2.1. Risks associated with both the options
A company has to evaluate both the advantages and disadvantages the choices they have
regarding change management. In case of ABC manufacturing company, they have two opinion.
Either employ more staff or automate the processes and lay off excess manpower.
Incase of the first option, hiring new employees is always a challenge. External recruiting may
lead to misplacements and may also increase recruitment costs (Lines, Sullivan, Smithwick &
Mischung, 2015). Inexperiece among the new recruit may decrease the efficiency of the
manufacturing process and finally increased number of employees lead to increased managerial
needs. ABC manufacturing company is looking to double its production, which implies that the
company will also need to double its workforce. Such a large scale employment procedure will

inadvertently lead to mislacement and increase the amount of expenditure. The new employees
will not be aware of the needs and goals of the company and will be required to be trained which
will be both time consuming and cost effective (Altamony, Al-Salti, Gharaibeh & Elyas, 2016).
And lastly such massive numbers of new recruits will need to be managed responsibly and new
managerial posts will be needed which may cause disbalance in the already established company
hierarchy.
For the second option, while automation can be considered as a resource to remain competitive
in the industry, there are factors that should be considered before implementing the option on a
large scale. Automation decreases versatility. Though a machine is efficient it can only a
perform a particular set of functions and does not have the flexibility and variety of tasks that can
be performed by an employee. Automation also results in an increase in pollution and the
problems that come with it. Chemicals and glasses used for operating the machine can be volatile
or toxic increasing risks of hazards and fatalities (Ceulemans, Lozano & Alonso-Almeida, 2015).
Lastly there are several unpredictable costs that come with machines of such high value. Random
servicing needs and unexpected maintenance costs may prove to be costly for the manufacturer.
2.2a. Business risk management plan
Depending on the circumstances, automation may or may not fit a certain business scenario. For
small scale operations that have low quantities of production, the high initial costs of automation
may not be economical but in case of ABC manufacturing the change in production rates will
double. Thus with a larger facility that will need to produce a larger number of heavyweight
products like rods, automation is the only sensible process that will suit the needs of the
company (Van der Voet, 2014). The risks that come with this solution can be mitigated if a few
procedures of solvency are brought into play by the company. Automation can be disruptive and
lead to employee lay off. This may create discord among the remaining workforce and
production may be hampered. To tackle this scenario the management must ensure the workforce
about the long term prospects of automation. Automation will lead to more efficiency which in
the long run will enable the company to undertake larger projects in the future and make it
prosper. This will give the company an opportunity to generate new jobs. Though circumstances
will seem bleak at the beginning but the suggested business models will help the company to

cope up with the scenario. With automation comes a high cost of investment in heavy machinery,
especially in this case. Though this factor will be contrasted to the benefits and cost effectiveness
and compliance of the future the company must be prepared to face additional costs that they
may incur due to unpredictable service and maintenance costs (Cummings Bridgman & Brown,
2016). One simple solution to this problem is to insure the machinery over a long period of time
so as to avoid heavy one time expenditure if they fail in the future. Lastly, automation modifies
workflows. Once automated the tasks and processes of the manufacturing processes become
somewhat rigid. Thus an intelligent choice of products for automation need to be made. A close
look must be take at the versatility and scalability in relativity to the transformation that
company will undergo in the future due to this change.
Task 3: Strategies for innovation and organisational changes
3.1. Strategic process for driving innovation
With the arrival of new innovation, an organism needs to change in accordance. Though
managing such a change may be difficult in case of large scale paradigm shifts, an elaborate
strategic model goes a long in such situations. In case of ABC manufacturing company, the
organisation has the need to double tier weekly production. It is already a large scale supply
chain and employs a heft number of personnels with its new change in the rate of production the
company must also adopt a few operational changes (Lozano Ceulemans & Seatter, 2015). As a
large scale manufacturing company uneconomic, inefficient and ineffective to increase the
number of employees as it will only lead to chaos on the manufacturing floor and a managerial
nightmare. Automation is the only option that will create a smooth transition during this period
of change in the company.
3.2. Implementation of change management plan
Though automation will lead you cutbacks and layoffs it will ultimately lead to prosperity for the
company. Circumstantial complications can be handled by the internal stakeholders swiftly with

a clear strategic plan. Discord among the employees can be handled with proper remunerations
for those who are being laid off. They can also be assured that with automation the company will
increase their business and generate new jobs in the near future and they are theonce most
equipped to get the job as they already have a history with the company. Inefficiency in the new
machines can be handled by appointing proper technicians as they will’ in the long run be cost
effective than sudden repairing and maintenance cost (Goetsch & Davis, 2014). The management
needs to hold a strong position during this time of change and follow the strategies that have
been suggested to ensure a smooth transition.
3.3. Developing business relationship with external stakeholders
In this time of transformation the company needs to create new stakeholders in order to afford
the new investments that are gonna come with automation. An active relationship with interested
parties needs to created by the manager from start. They should have given access to the day to
day development of the project. An open mind should be kept and periodic meetings should be
held to keep them interested. Lastly issues that may arise should be discussed immediately to
avoid tension and future uneasiness.
3.4. Maintaining business relationship with external stakeholders
For the external stakeholder this period of transformation may seem chaotic and cause for
concern. The manager needs to develop a deep level of understanding with the stakeholders in
order to maintain a healthy relationship (Vitalis & Scott, 2015). He or She should explain the
scenario elaborately and create trust, he or she should understand the concerns of the investor
and prepare for misunderstandings that may arise. Responsibility should be taken for the actions
that have been performed and the stakeholders should be addressed with complete honesty. And
lastly a positive mental attitude needs to be maintained and every aspect of the change no matter
how troublesome should be revealed so as not to create future misunderstandings.
Conclusion

Change management can be defined the set of processes, tools and techniques that are used to
manage the workforce of a company during times of organisational change.with change
management different organizational tools can be implemented to help individuals to make
personal transitions successfully, which will rise as a result of of realisation and adaptation of a
change. Some basic models may provide with rough structure on how to make a smooth
transition but in the end it is upto the manager to ensure its success.
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