Report on Organizational Change Management at Hotpack Global: Analysis

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This report provides an in-depth analysis of the organizational change management process at Hotpack Global, a multinational corporation specializing in food packaging. The report focuses on the implementation of a new warehouse management system and its impact on the company. It details the type of change, the background of the company, and the research methodology employed to gather information. The report describes the change process, including the request for change, impact analysis, approval, and intervention strategies. It identifies the key players managing the change, including internal and external consultants, and highlights the obstacles faced, such as lack of communication and employee resistance. The report also explores the cultural aspects relevant to the case, the absence of political or power issues, and the strategies used to manage resistance to change. Finally, the report offers recommendations and conclusions based on the analysis of the change management process at Hotpack Global.
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Running head: ORGANIZATIONAL CHANGE MANAGEMENT
Organizational Change Management
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Table of Contents
1. Introduction.............................................................................................................................................3
1.1 Type of Change and Impact of Change..............................................................................................3
1.2 Background Information....................................................................................................................4
1.3 Research Methodology......................................................................................................................5
2. Description of the change process...........................................................................................................6
3. The organization’s own evaluation of the change process.....................................................................11
4. Analysis of the change process..............................................................................................................13
5. Recommendations and Conclusion........................................................................................................14
References.................................................................................................................................................17
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1. Introduction
1.1 Type of Change and Impact of Change
Hotpack Global has made organization-wide changes. This change is related to the
implementation of a warehouse management system. Organisation-wide change is related to key
restructure, collaboration and rightsizing the organization. These changes incorporate different
level in their transformational cycle. Furthermore, the transformational process of warehouse
management system will involve a warehouse manager, a staff member who works in operations,
and inventory managing staffs (Chang, 2016). Hotpack Global uses a manual process to manage
the warehousing but, it would have needed to adopt the automated process in order to increase
their productivity. The company will follow the hierarchy structure to make transformation
within an organization. Because, it would enable the senior manager of the logistic department to
effectively implement the warehouse management system. This transformation is related to
advanced technology hence, the staff member may face the issue to move from a manual process
to automated process (Giussi, et. al., 2017).
Impact of change on individuals
Changes within an organization may cause workforces to create a feeling of less security
regarding their jobs. It depends on the kinds of workforces such as one who copes with the
transformation or one who resist change. In this way, the impact of this fear may vary at the
workplace. Workforces who cope with transformation but fear the loss among them could
encourage to harder work and demonstrates themselves. Furthermore, those employees who
struggle with transformation may become less productive and excessively cautious (Bradley,
2016).
Impact of change on groups
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Transformation in Hotpack Global may affect the groups within an organization. A supervisor
plans for changes as per his/her own evaluation of the condition. Furthermore, peers and
subordinates may resist this transformation because they do not agree with the warehouse
management system and perceive the circumstances differently (Giussi, et. al., 2017).
Impact of change on the organization
An organization should perfectly shift and implement gracefully because it may hinder the new
ideas from cropping up. It is essential that a company focuses on the practices, policy, and
products or services that are feasible for today scenario. Without transformation, Hotpack Global
may face loses as compared with the key market players. Hence, they have required transforming
and adapting the technology to keep up with the times (Bradley, 2016).
1.2 Background Information
Hotpack Global LLC was founded in the year of 1995 in Dubai. This is now a multinational
corporation which is engaged on the marketing, distribution, and manufacturing of wide category
of food packaging items and associated products made of alumni, foam, paper, and plastic at
their several manufacturing units in Dubai, Abudhabi, Umm Al Quwain, and India (Hotpack
Global, 2018).
This group has an operation in different GCC nations such as Africa, the USA, and the UK.
Within the short span of time, Hotpack has grown as one of the leading nations in this industry
with its reputation for supplying the premium quality products. The corporation sells its product
in their brand name like ‘Soft n Cool’, H-Pack and ‘Hotpack’ that is recognized for premium
quality with hygiene. Before transformation, the annual turnover of this company was $136m.
After transformation, it has gained the competitive benefits due to a unique position in the
market (Geppert, Matten, and Williams, 2016).
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1.3 Research Methodology
A senior manager of the warehouse will conduct the interview and questionnaire for gathering
the effects of transformation on managers and employees at the workplace. For the interview, it
will select 5 managers and 45 employees will be chosen for the questionnaire. Before conducting
the interview and questionnaire, a senior manager will take the approval fromHotpack Global.
After approval, he will send the questionnaire with proper instruction (Geppert, Matten, and
Williams, 2016). He will also ensure for not sharing the confidential data of participants. The
senior manager will make an open-ended questionnaire for an interview and close-ended
questionnaire for conducting the questionnaire. Participants will be selected on the judgment of
the manager. He will also provide the equal chances to the participant to give responses in
research. Both questionnaire and interview will aid to gather the qualitative and quantitative
research information. For example, the interview will be based on subjective nature so that,
research can obtain qualitative information and questionnaire will be based on objective nature
that will produce quantitative data (Carpenter and Agrawal, 2018).
7. Letter of research approval from Organisation
Company letter
16 September2018
Dear respondents,
Greeting!
I am conducting the research entitled “Implemented Warehouse Management System" due to
assessing the information regarding the impact of change management.
Due to this, I appeal for your support to provide relevant data regarding the research concern.
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Kindly grant me permission for conducting an interview and survey through a questionnaire on
your managers and employees with regards to getting their feedback on transformation process.
I would like to express my thankfulness for your backing in this research.
Appreciative to you for offering me your help
Yours sincerely,
Name of student
Contact number
Email address
Managing Director of company
Abdul Jabbar PB
Hotpack Global, Dubai
2. Description of the change process
The following change management process will be used by Hotpack Global in implementing the
warehouse management system:
(Sources: Belias, and Koustelios, 2014).
Request for change:
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This is the first phase where the company identifies what need for change. In this stage, Hotpack
Global has addressed the financial analysis where sales turnover was declined as compared to the
previous year due to ineffective management of inventory. Hence, it has found that there is a
need for implementing a new warehouse management system like ERP (Ceptureanu, 2015).
Impact analysis
After identification of change, it has assessed what could be the impact of transformation on the
individual, group and organization. It has also assessed the impact of implementing Warehousing
management system on revenue.
Approve or Deny
Hotpack Global has approved to implement the warehouse management system in an
organization because it will have a favorable impact on the individual, employees, and
organization. It was examined that this transformation will increase the efficiency of individual
and helps to better communication between groups. This transformation will also increase the
productivity as well as the profitability of corporation (Matos Marques Simoes, and Esposito,
2014).
Change intervention
Intervention is performed for enhancing the Hotpack Global from its existing position to a
targeted position and to attain the desired transformation, different techniques will are
implemented. The change intervention will include different activities such as offering feedback
regarding task, team, and individuals along with other aspects of dynamics of an organization.
This change intervention will increase the awareness about changing norms and to deal will the
issue effectively (Rasche, and Rehder, 2018). The implementation of warehouse management
system will develop the favorable attitude openness and enhances the communication between
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individuals. This change intervention will educate the workforces and improves their
understanding of proficiency. Moreover, the change intervention will bring positive and
desirable transformation to enhance the performance of organization and individual (Blanco-
Portela, Benayas, Pertierra, and Lozano, 2017).
2 Who managed the change process?
The change process would be managed by the small team of team of senior managers, Board of
directors and relevant stakeholders. These participants will make an effective strategy to
implement the warehouse management system within an organization.
3 Were external and/or internal consultants used and how?
Customers and suppliers were external consultants who were lead for making the transformations
related to the implementation of a warehouse management system. It is analyzed that suppliers
have a higher impact on the expenses of Hotpack Global. In the food industry, the bargaining
power of supplier relies on the availability of resources. Therefore, implementation of warehouse
management system in Hotpack Global may affect its suppliers (Altamony, Al-Salti, Gharaibeh,
and Elyas, 2016).
The bargaining power of the customer is depending on the distinctiveness of product quality,
product range, competition level, and advertising. Hence, this transformation may involve the
customers in terms of offering the wider category. It is also evaluated that workforce is an
internal consultant who was involved in this transformation within an organization. Workforces
are a key part of making an alteration in the internal environment of the company (Samuel,
Found, and Williams, 2015). Hence, employees should perform a good job with respect to selling
product with customers. Managers should also be good to deal with the lower level subordinates
and analyzing the other element of the internal environment. Furthermore, when each workforce
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is proficient and competent then, internal politics may lead to making a transformation within an
organization (Ceulemans, Lozano, and Alonso-Almeida, 2015).
4 What were the obstacles?
There are certain obstacles, which were faced by Hotpack Global in implementing the
transformation such as lack of communication and employee’s resistance. It is discussed as given
below:
Lack of Communication
Lack of communication with all workforces was created rumors and fear among them about the
organization specifically, when company transforming the warehouse management system at the
workplace. Workforces have desired to know what is going on that means whether
transformation would create favorable or unfavorable news for them. It is analyzed that the
feeling of risk was created among employees when management has not interacted that which
work would be affected by transformation and makes feel them that they are not part of the
judgment (Van der Voet, 2014). There was a need for the senior manager to update their
workforces regularly regarding their transformation plan like the implementation of warehouse
management system. He should also involve all the workforces as much as possible by
conducting the brainstorming session and meeting as it could help during the planning stage of
transformation (Cummings, Bridgman, and Brown, 2016).
Employee Resistance
It is analyzed that workforces resist the transformation in certain cases. Employees are
comfortable in existing strategy of business because of having an understanding regarding their
targets and their role. Moreover, when a transformation was implemented in Hotpack Global
then, it has created barriers in terms of disruption of familiarity and some workforces were upset
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with the news of transformation. Since, staff members do not want to relearn their jobs hence
they do not want to change the warehouse management system. Hence, Hotpack Global was
needed to support their workforces and offers the training for adopting new accountability as it
could ease the transformation process (Lozano, Ceulemans, and Seatter, 2015).
5 What cultural aspects of the organization are relevant to the case?
The implementation of a warehouse management system will change the culture of the
organization. Since, in the existing scenario, there is cultural of using manual process in
operation. But, after the transformation, the culture of the organization would be change because
there would be a requirement for adopting the automation process in the operational process of
warehouse management (Goetsch, and Davis, 2014).
6 Were there any politics or power issues?
There was no need for any kind of using politics and power issues in the implementation of
warehouse management system. Since, this transformation will have provided the benefits to all
individuals, groups, and organization hence; no one has created barriers to implementation.
Furthermore, before implementing the change, a senior manager has discussed with workforces
and takes their opinion. Therefore, both the employees and the company has not used any power
and politics during the transformation (Pugh, 2016).
7. How resistance to change managed?
A senior manager has used different strategies for managing the resistance to change. Top
authority was contributed more efforts in meeting with workforces and operating groups. In this
meeting, top management has discussed about transformation. They have also focused on
making schedules about task details, and technical facts in the meeting. This meeting was
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beneficial to influence the employees towards transforming the warehouse management system
and helps to manage the resistance and receptiveness to transformation (Kuipers, et. al., 2014).
The top manager took an appropriate step for persuading the attitude of workforces towards
transformation. These steps were involved focused on the new standard of performance for
employees and encouraged them to think in an effective manner, and emphasized on the factors
that were a sign of resistance. These steps were supported by Hotpack Global for directing the
technology transformation at the workplace (Doppelt, 2017). A strategy that was highly
appreciated for managing the resistance to change was to get participate the people in
transforming process. But, there were chances of creating trouble within an organization.
8 Any other relevant issues?
The implementation of a warehouse management system in Hotpack Global has involved certain
relevant issue such as some staff member was thinking to leave the job and they also encourage
the other members. Hence, it was difficult for the company to influence each employee towards
the transformation process (Ceulemans, Lozano, and Alonso-Almeida, 2015).
3. The organization’s own evaluation of the change process
Hotpack Global has evaluated the need for change by measuring the following factor:
Company Productivity
In Hotpack Global, warehouse plays important role in achieving the goal of productivity. But,
the productivity of the company was declining for the last few years. Hence, the company needs
to implement the new warehouse management system in an organization. This system will aid to
increase the efficiency, consistency as well as control the quality of the operation. Moreover, this
system would aid to move goods through the warehouse with maximum speed and enhancing
every phase of attaining the procedure. By this transformation, employees are competent to
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create a high amount of work in minimum time because new warehouse management system will
provide the knowledge regarding inventory level (Cameron, and Green, 2015).
Return on Investment
In Hotpack Global, return on investment was declined since previous years hence, there was a
need to implement the warehouse management system. Since, the right warehouse management
system can enhance the sales and boosts profit by selling promptly and more accurately to
customers. Since, new warehouse management system is automatic and provides the information
regarding which products customer wants and at what time. By transforming the warehouse
management system in the company, existing employees would be competent to get more orders
in minimum time with fewer errors. This new system would decline the inquiry of customers and
ease to provide customer support (Carnall, 2018).
ERP Integration
The implementation of a new warehouse management system will integrate the existing business
management system and provides the automated process. This new system will also provide the
opportunity to business to grow and provides the solution to complete the needs of customers
(Cameron, and Green, 2015).
Timeline for implementing warehouse management system
Activities for implementing Warehouse
management system
Timeline
Identification of issue 1-2 months
Conducting survey and interview on
employees and managers for assessing the
effects of transformation
3-4 months
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