HRM 317 Assignment: Analyzing Organizational Change at Northern Oil

This report analyzes the process of managing organizational change, focusing on communication, organizational vision, and the STAR model, using the Northern Oil case study. The report begins by emphasizing the critical role of communication in change management, highlighting its importance in explaining the rationale behind changes, involving stakeholders, and mitigating potential conflicts. It then examines the communication channels employed in the case study, differentiating between formal and informal channels, and discusses the impact of rumors during the change process. The report defines organizational vision, emphasizing its role as a roadmap for organizational goals and a foundation for decision-making. It then analyzes the organizational vision presented in the case study, which aims to increase productivity by cutting costs. Furthermore, the report explores the leader-dominated approach used in crafting the vision and its potential implications. Finally, it relates the concepts of communicating change and organizational vision to the STAR model, demonstrating how strategy, structure, processes, rewards, and people interact to achieve organizational goals.

Running head: MANAGING ORGANIZATIONAL CHANGE
MANAGING ORGANIZATIONAL CHANGE
Name of the Student
Name of the University
Author Note

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Response to Question 1: Communicating Change
Communication is a critical function in the process of incorporating change
management. Change management is established by communicating the transformations
amongst employees of an organization (Schulz-Knappe, Koch and Beckert 2019).
Communicating change includes the phases of explaining the process of incorporating
changes, extensive discussion regarding the basis of change and explanation regarding the
rationale behind the change. Communicating change helps in involving the internal and
external stakeholders in the change management process, which is necessary for the success
of the objective behind change. Communicating change has reflected significant values in the
case of change management. The article revolves around the process of communicating an
open floor change process effectively that can reduce the potentiality of conflict amongst the
internal stakeholders of the organization.
Communicating the change was significant in this case, as its effectiveness can only
determine the success behind the implementation of change. Communicating change in the
case was also important because it generated the pros and cons of the open space plan as well
as the concerns and benefits of the plan (Hbr.org 2019). Communicating change helps in
stimulating the two sides of bringing change, which makes it easier to implement a plan that
is suitable and beneficial for the employees and the higher management (Hbr.org 2019). The
communicating change helped in answering curiosities and uncertainty about the floor plan
such as, what is changing, how the change will affect daily operation, the rationale behind the
change and the support system behind the open floor plan (Hbr.org 2019).
Response to Question 2: Communication channels
Communication channels depict the medium by which change can be incorporated.
The two forms of communication channels are the formal and informal channel. The case
study reflects the use of formal channel for communicating the change of floor plan or office

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space in the organization. The communication channel was initially planned to be downward
communication with the presence of the CEO and CFO (Hbr.org 2019). The downward
communication channel aimed at communicating the plan for change with the rationale
behind it without an open discussion amongst the employees (Hbr.org 2019). However,
without the presence of the CEO and after the CFO left, it turned into horizontal or lateral
communication as all the unit or divisional heads were present with the GM of Facilities and
senior architect work under the same executive (Hbr.org 2019). Presence of all the divisional
heads resulted in lateral communication, including communication of concerns and asking
queries.
Response to Question 3: Rumours during change management
The rumours during change can spread at a faster rate with few elements of truth
amongst the internal stakeholders. Rumours can lead to stress. In the case study, the news
about the change spread like a rumour (Hbr.org 2019). The head from new business venture
communicated the rumours to the GM of facilities about the discussion about the open floor
plan in the new office that people are deciding to refuse the new office layout by the
collaborative approach of not shifting to the new office (Hbr.org 2019). The rumour also
included the practice of circulating a petition for a group consensus regarding the refusal.
After confirming the rumours from a few divisional heads, Sasha found the truth about the
rumours that people were actually agitated (Hbr.org 2019).
Response to Question 4: Organizational vision
The organizational vision reflects the document that includes the existent and future
aims of the organization, which can act as a foundation for structuring decisions with the
alignment of set goals and organizational philosophy. The organizational vision is considered
as the roadmap, which reflects the timeframe of a specific plan (Gurley et al. 2015). The
organizational vision is shaped for setting standards for performance, approach and outcome

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that will be incorporated in the organizational structure. Organizational vision demonstrates
the identification of the best possible practices for accomplishing the primary goal (Harraf et
al. 2015). The organizational vision depicts the direction by which the organization structures
its functional plan.
Response to Question 5: Organizational vision in the case study
The organizational vision demonstrated in the case study is that the Northern Oil
needs to direct their sole focus on the objective of increasing productivity for sustaining the
significant position in the market by cutting costs on manageable areas. This vision led to the
plan of open floor office layout, which can be beneficial if the insecurities are removed and
queries are resolved as it can change the way the employees at Northern Oil work (Hbr.org
2019).
Response to Question 6: Approach of crafting the vision in the case study
The vision crafting approach that was adopted in the case study is a scenario of
leader-dominated approach as in this approach the decision of open flooring for the new
office layout was taken with the main intention of cutting cost and for changing the work
participation process in the organization (Hbr.org 2019). The decision was taken by the CEO
in the form of response for sustaining in the current position with the increasing rate of new
entrants. The leader-dominated approach can be accepted as a compulsion for the employees
and may lead to agitation or dissatisfaction amongst internal stakeholders (Hbr.org 2019).
The leader-dominated approach of crafting the vision usually reflects the practice of
authority, without the involvement of employees' contribution. This approach can be
considered as challenging as the communication of change in this leader-dominated approach
becomes difficult.
Response to Question 7: Relating organizational vision and communicating change with
the STAR model

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According to the STAR Model of Galbraith, there are five elements in an organization
that are linked for achieving productivity and collaborative approach towards structured
goals. The five elements are Strategy, Structure, Processes, Reward and People. The
organizational vision is the strategy that acts as a base for organizational structure and
functions. Without the element of strategy, the following decisions can be shaped.
Communication change is facilitated by the decisions at organizational structure formation as
the organizational structure reflects the formation of divisions, hierarchy, power, authority
and organizational roles. Organizational structure also shapes the decision of communication
flow. Organizational structure is shaped by the strategy, and its application shapes the process
of communicating change in the organization. Business processes and lateral connection also
determines the process of communicating change.

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References:
Gurley, D.K., Peters, G.B., Collins, L. and Fifolt, M., 2015. Mission, vision, values, and
goals: An exploration of key organizational statements and daily practice in schools. Journal
of Educational Change, 16(2), pp.217-242.
Harraf, A., Wanasika, I., Tate, K. and Talbott, K., 2015. Organizational agility. Journal of
Applied Business Research, 31(2), p.675.
Hbr.org 2019. Will This Open Space Work?. [Online] Retrieved from
https://hbr.org/1999/05/will-this-open-space-work
Schulz-Knappe, C., Koch, T. and Beckert, J., 2019. The importance of communicating
change. Corporate Communications: An International Journal.