ORGB 4870: RRAE Case Study on Organizational Change and Culture

This case study analyzes the organizational culture of Rolls Royce Aero Engines (RRAE), focusing on the challenges it faced, particularly concerning the Trent 1000 engine. The analysis examines the extent to which RRAE's centralized decision-making structure and bureaucratic culture contributed to its inability to foresee and address the engine's problems. The assignment explores how the company's culture acted as a barrier to solving these issues, emphasizing the impact of leadership styles, power dynamics, and organizational learning on change management. The study highlights the need for decentralized structures, the importance of technical expertise, and the critical role of employee collaboration in fostering effective organizational change. The provided references, including financial articles and academic research, support the analysis, offering insights into the specific issues and suggesting potential solutions for RRAE.

Running head: ORGANIZATIONAL CHANGE AND DEVELOPMENT
ORGANIZATIONAL CHANGE AND DEVELOPMENT
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1ORGANIZATIONAL CHANGE AND DEVELOPMENT
The concerned organization, RRAE, specifically aimed at demonstrating a centralized decision
making strategy for all of its units like civil aerospace, defence aerospace, marine, power systems and
nuclear. The centralized decision making affected the capability of the organization in holding collaboration
with the employees in establishing the common changes (Johnson, 2018). The absence of collaboration
between the different managers in the working departments incapacitated the business in improving their
change decisions. It has been observed that the organization initiated a number of changes through staff
layoffs which are initially focused towards reducing the costs of the organization. However, the layoffs
affected the operational efficiency of the organization (Ft.com., 2018). The absence of consultation based
decision making affected the capability of the organization in retaining any change that the business
developed over the years. The factor of centralized decision making system in the venture resulted to
frequent restructuring of the organizational processes and the models.
The increased power distance gaps and masculinity of the leadership approach, based on an
individualistic, centralized and bureaucratic decision making affected the capability of the business in
nurturing the skills and utilizing resources in accordance to the requirements. The authoritative leadership
style affected the capability of the organizational leaders in upholding the inclusiveness with the employees.
The hierarchy in the organization exercised positional power which restricted the capability of the
organization in reducing power distance while negotiating or communicating with the managers before
making a decision. Quinn and Quinn (2016) stated that the imposition of power and exercising the same ,in a
bureaucratic manner might affect the capability of the organization in retaining the trust and loyalty of the
employees. The different decisions that the organization undertook over the years, on a centralized basis,
minimized the business capabilities significantly. Galli, Kaviani and Margulis (2017) stated that
organizational learning is an important aspect that might be considered by the leaders while undertaking a
change. In this connection, the organizational leaders have limited knowledge on the diverse range of
changes that the different engineering units might require.

2ORGANIZATIONAL CHANGE AND DEVELOPMENT
Failure of the leader to identify the possible changes that might be undertaken while monitoring and
managing all the units has affected the capability of the venture in making effective growth in performance.
Quinn and Quinn (2016) opined that adequate amount of technological knowledge and skills are required for
bringing forth modifications in the business operations. However, the lack of formal technical knowledge of
the leader on different engineering units, in the concerned organization, restricted the decision making
capabilities of the same.
Moreover, the centralized decision making systems restricted the intervention of the people with
technical knowledge and skills which again disrupted the complete change process that was planned by the
business. Therefore, the organization might take the initiative of developing decentralized structures with the
purpose of improving the decision making capabilities of the leaders while assessing the urgency and the
current organizational requirements. The appointment of people with technical knowledge on different
engineering subject areas would allow the organization in empowering the overall operations of the venture
while operating in the different markets.

3ORGANIZATIONAL CHANGE AND DEVELOPMENT
References
Ft.com. (2018). Rolls-Royce woes intensify after engine setback. Retrieved 29 March 2020, from
https://www.ft.com/content/959803d0-012f-11ea-b7bc-f3fa4e77dd47
Galli, B. J., Kaviani, M. A., & Margulis, C. S. (2017). Impacts of change management on Six Sigma team
leadership style. Middle East Journal of Management, 4(4), 267-282.
Johnson, R. (2018). Rolls-Royce chief wants to remove 'culture of complexity' at firm. Retrieved 29 March
2020, from https://www.derbytelegraph.co.uk/news/business/rolls-royce-job-cuts-derby-1679559
Quinn, R. W., & Quinn, R. E. (2016). Change management and leadership development have to
mesh. Harvard Business Review, 1(7), 2-4.