MNG00703 Organisational Change: Alinta Energy Diagnosis Case Study

This case study provides a diagnosis of the organizational change experienced by Alinta Energy, an electricity generating company in Queensland, Australia. It begins with an introduction to Alinta Energy, its industry, and the nature of the change, identifying it as a reorientation. The analysis explores internal and external pressures driving the change, including cultural clashes, technological advancements, and evolving staff aspirations. The study employs the Star Model and PESTLE framework as diagnostic tools to assess the organizational change, concluding that external, internal, and environmental factors significantly contributed to the need for change within the company.

Running head: DIAGNOSIS FOR CHANGE
Diagnosis for Change
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1. Introduction
In this modern day of advanced science and technology, innovation and change, both
have transformed into two of the important parts of business life. This is because
organisations all over the world now struggle harder to go hand in hand with the changing
tastes of the customers, their nature and the global competition than ever before (Norman,
Donald and Roberto 2014). Hence, organisational change has become something that is very
important and is transformed into a continuous process. Organisational change is the process
through which the companies move from their present state to a desired future state so as to
become more effective (Van Dam, Oreg and Schyns 2016). However, sometimes the system
of the organisation gets hampered by the influence of the external and internal forces and this
result in frequent changing in the workplace, which ultimately influence the entire working
environment. This paper will diagnose the change in Alinta Energy, an electricity generating
company in Queensland, Australia, using a diagnostic tool in order to assess the
organisational change in this company (Robertson and Argent 2016).
2. Discussion
2.1 Background and Introduction to the change
- Nature of the Organisation
Alinta Energy is an electricity generating and gas retailing private company based in
Australia. It is owned by the CTFE (Chow Tai Fook Enterprises) of Hong Kong. It was
founded in the year 2011, but there are some of its business parts that are dated since 1950. It
is headquartered in Sydney, Australia (Blackwell and Robertson 2016). Its portfolio of
electricity generation includes the Newman Power Station, Pinjarra Power Station, Port
Hedland Power Station and Wagerup Power Station of Western Australia, Bairnsdale Power
Station of Victoria, Braemar Power Station of Queensland and Glenbrook Power Station of

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New Zealand. Alinta Energy is regarded as one of the most trusted, safe and experienced
electricity connection network companies in the Australian region (Robertson and Argent
2016). Furthermore, its gas asset portfolio comprise of the Goldfields Gas Pipeline.
- Nature of the industry
Alinta Energy belongs to the energy industry. It is the wholeness of each and every
industry that is engaged in the process of sale and production of energy, including fuel
extraction, distribution, manufacturing and refining (Mattila et al. 2016). In specific, the
energy industry comprise of the gas and the petroleum industry, the coal and electric power
industry etc. In simpler words, energy industry can be referred to the industry that comprise
of those categories of stocks that are related to the production and the supply of the energy
and other related resources.
- Extent to which the change involves incremental adjustment or transformational change
Transformational change is the change which takes place when an industry or a
company is in equilibrium (Chia 2014). It builds on the things which are been accomplished
earlier and are equipped with the flavour of continuous growth and development. This change
takes place during the period of disequilibrium and it involve the one-step function change.
Reorientation change means redefinition of an organisation. This change is proactive in
nature and is initiated as a result of transformational force within an industry (Penna and
Geels 2015). It occurs to make sure that the company would survive in the coming future and
for becoming a pioneer in taking steps prior to the other organisation within the same
industry.
- Response of the organisation
The leaders and the managers of the company have realised the sense of urgency for
pushing forward this organisational change of reorientation. There was luxury of time which

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was afforded by them after foreseeing the external factors that is required to be change. This
involve notable redirection of the organisation and it is often put in terms of emphasizing on
the continuity with the past values.
2.2 Pressure to change
- Environmental factors behind the change
There are some cultural clash among several different organisation belonging from
the same industry after Queensland government have declared merger with the five state
owned power organisations (Chester 2015).
- Internal issues
 The former managers were getting replaced by the new ones for different reasons like
transfer, retirement and promotion The workplace nature was changing with time. There was a difference noticed in the
work values that are expressed by the diverse generations There was lack in the existing organisational process as well as the various different
arrangements in the workplace. There was communication and coordination gap in
different lines, departments and staffs There are was a growing inflexibility within the company.
- External issues
 As because of the fact that Queensland had merged the 5 different state owned power
organisations, therefore there was a cultural clash in the company due to difference in
ideas and visions.
 It is also identified that there was some changes in the use of technology in
organisational environment. The other organisations were adopting innovative

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technologies for the business and therefore, Alinta Energy’s competitive position was
degrading day by day as well as it was less cost effective as well.
 It was also observed that there was changes found in terms of aspirations and vision
among the staffs belonging from different departments. Their needs and their manner
of conducting business or working were changed. Also, because of new information
sources, there was a global influence.
2.3 Diagnostic tools or models
For the process of diagnosis, Star Model has been used to analyse the organisational
change. This is due to the fact that this model is effective on five components of
organisational design and only if they are in alignment. They are- strategy, processes, later
capability, structure, reward system and people processes (Miterev, Turner and Mancini
2017). With the same, PESTLE framework has been used for assessing the external
environment of the company in terms of 6 different factors like political, social, economic,
legal, environmental and technological (Theaker 2017). These image of change has provided
a deep insight into various trends in terms of the external environment that needs to be taken
into consideration.
3. Conclusion
To conclude, it can be said that Alinta Energy provides electricity and gas supply
solution in Queensland area and it has been experiencing an organisational change of
reorientation. There was huge pressure from the part of external, internal and environmental
components of the company that have contributed in this change to occur. Finally, Star Model
and PESTLE framework have been used for assessing and analysing organisational change.

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