ORGANIZATIONAL CHANGE MANAGEMENT
Table of Contents
Introduction: 2
Ans. 1: 2
Mckinsey 7-S Model: 2
Kotter’s 8 Step Change Model: 2
Ans. 2: 3
Ans. 3: 4
SWOT Analysis: 4
Importance of the SWOT Analysis: 5
Benefits of SWOT Analysis: 5
Limitations of SWOT Analysis: 6
Ans. 4: 6
The Role of Change Agent: 6
Ans. 5: 7
Conclusion: 7
Reference: 8
Introduction:
The following article has concentrated different theories of organizational change management. The article has articulated various aspects of BHP Billiton to provide a vivid idea about the how the organizational management of BHP Billiton has implemented the change management process within the organizational structure. Being one of the leading names of the Mining industry of Australia, BHP Billiton has put a strong impact on the business world not only by its efficient performance, but also adopting modern techniques and strategies. It has discussed about the strength and weakness of the organization and the requirement that has led the leaders of BHP Billiton to implement change management. Therefore, it has presented some recommendations as well by which the organizational leaders can improve the organizational structure.
Ans. 1:
There are many definitions that have discussed about the organizational change management. However, two famous models in this domain are Mckinsey 7-S Model and Kotter’s 8 Step Model. Mckinsey and Kotter both have enlightened different aspects of organizational change management.
Mckinsey 7-S Model:
Mckinsey has provided a wider view of the organizational change management in this model. He has enlightened 7 key factors of the organizational structure that plays crucial role in implementing change within the organizational structure, they are as follows:
Shared Values: The values that are shared among the organizational members play vital role in the organizational management. It helps the management to determine the modification they want to implement in the structure, policy and strategy of the organization. Moreover, common values among the employees also help them to adopt new techniques easily (Cameron & Green, 2015).
Strategy: Strategy is considered one of the key factors of change management. Higher authority of every business organizations mainly wants to change their conventional strategies with the new strategies to modernize their organization and compete with the other rival companies.
Structure: Another major element of the change management process is organizational structure, as it is modified during the implementation of the change management.
Systems: Traditional systems that can restrict the growth of the organization in this competitive era are replaced with the modern and more flexible systems, which is suitable for modern business world.
Style: It is often evident that the style of managing the organization and leadership style changes with the implementation of modern organizational process.
Staff: Staffs are considered as the key elements of the business organization. They play significant role in incorporating the organizational change management. Without the cooperation of the employees, management will not be able to perform appropriately. Change management puts significant impact on the performance of the employees and it affects the relation between employees and employers as well.
Skills: While implementing the modern techniques within the organizational structure, it is important for the employees as well as organizational members to adopt those techniques to participate actively within the organizational function.
Kotter’s 8 Step Change Model:
Kotter has enlightened eight key steps of organizational change management, by which the modern business organization can incorporate modern and efficient change management within the organization, such as:
Increment of the need for change.
Establishment of a team to bring the change within the organizational structure.
Obtain a vision for the change management.
Interact with the organizational members about the requirement to implement change management.
Enhance the skills and knowledge of the employees to adopt the modern techniques.
Take short-term goals to achieve.
Make the change as a continuous process.
Implement the change permanently within the organizational structure.
Although, these two theories are presented by two different authors, there is a strong connection between these two change management models. Both Kotter and Mckinsey have claimed the importance of the organizational members in implementing change management. Both theories claim that it is not possible for the business leaders to adopt modern techniques without the help of employees and other members of the organization. On the other hand they have concentrated on the communication structure of the organization. According to the theories, by maintaining a regular interaction with the organizational members, higher authority can adopt modern techniques in an efficient manner (Goetsch & Davis, 2014).
Ans. 2:
Introduction: BHP Billiton is a multinational business organization that has its headquarter in Australia. The organizational operation of the BHP Billiton is based on several metal and mining. BHP Billiton has been founded in 2001 as a joint entity of BHP Billiton PLC and BHP Billiton Limited. By providing efficient performance worldwide, BHP Billiton earns huge revenue every year. The organization is always known for adopting modern and flexible strategies and policies for the organization. Corporate Governance of BHP Billiton plays major role in the growth of the organization. The management always maintains a particular kind of culture within the organizational structure. It has led the organization to become one of the leading of the business world in all around the world (bhp.com 2017).
Change Management: The higher authority of BHP Billiton always pays close attention to the requirement of their employees. Authority of BHP Billiton considers employees are key elements of the organization and the success of the business organization is highly dependent on the performance of the employees. They always maintain healthy and interactive relation with the employees of the organization. The management has brought revolution by bringing a remarkable change within the organization and employee structure. There are many female workers who are employed in BHP Billiton along with the male employees. In order to empower the female employees of the organization, the leaders of BHP Billiton have changed their employee policies to encourage the talent of the female employees and support their performance growth. They have ensured gender equality within their organization. The organizational management ensures that female employees are availing equal facilities like male workers. The percentage female worker is 17.5% of total workforce. Thus by adopting the policy of gender equality, the management has set an example for other business organizations. It is evident the number of female workers in the mining industry is comparatively low than other sectors. Hence, by empowering the female employees, BHP Billiton has opened a new path for the female employees and business organizations as well (Prochaska, 2013).
Relation between the Change Management Definitions with the Change Management of BHP Billiton: It is evident that there is link between the change management model of Kotter and Mckinsey with the change management process of BHP Billiton. Employees are the key element of the change management of BHP Billiton. They have adopted the change management to boost up the motivation of their employees, as according to them employees are the key elements of their organization. Moreover, the leaders of BHP Billiton believe that it will put a strong impact on the performance of the female employees of the organization (Kuipers et al., 2014). Eventually, the organization will be able to secure the leading position in whole world by providing quality service to the every corner of the world. By analyzing the two change management model of Kotter and Mckinsey, it can be stated that they have considered staff or employees of the business organizations as an integral part of the change management method and the theories claim that change management process put significant impact on the relation with the organizational management with the employees and employee’s performance, which is reflected in the organizational structure of the BHP Billiton. By adopting the policy of gender equality, the management of BVHP Billiton has offered the job opportunity and many facilities to the female workers of the organization. Thus, it has built a strong relation between the employees and employer of the organization. On the other hand, as claimed by the change management theory that the organizational management needs to maintain a strong interactive relation with the team and provide a vivid idea to the organizational members about the requirement of change, it is also evident by the practice of BHP Billiton. They have communicated all the aspects of the change management to the organizational members. At the same time, they have encouraged their employees to participate in the change actively. It has helped them to adopt the new policy of the organization (Rosemann & vom Brocke, 2015).
Ans. 3:
SWOT Analysis:
Strengths
Weaknesses
The change management process of BHP Billiton has stimulated the production process of the organization.
It has increased the commitment level of the female workers towards the organization (Hsu et al., 2013).
The organization has earned respect among the society by adopting this policy. Hence, it works as major strength for the organization to compete against the rival companies.
By bringing revolution by implementing gender equality policy within the organization, the management has increased the competitive advantage of the organization which will be helpful for the organization to survive in this competitive era.
Gender equality policy may not be accepted by all the staff members of the organization. It may increase conflict among the female and male workers of the organization which will be harmful for the organizational growth (Pepper et al., 2015).
The conflict among the employees will work as a weakness for the organization. It will put harmful impact on the production process of the organization.
Opportunities
Threats
The new change management process of BHP Billiton has provided a wide opportunity to the organization to achieve desired position in the industry by earning immense respect from the society.
It has helped the organization to build a strong relation with the local community and the people around the organization, which will help the organization to earn their long-term organizational goal.
BHP Billiton has earned faith of their consumers who belong to different corners of the world. Thus, it has offered a wide scope to the management to earn huge profit by providing their product and service worldwide (Hsu et al., 2013).
The organization can become target of many pressure groups by adopting gender equality policy. It may work as a threat for the organization and it can prevent the organization to perform appropriately.
Table 1: SWOT Analysis
Created by: Author
As discussed in the SWOT analysis, it can be stated that BHP Billiton has brought revolution in the business world by adopting the gender equality policy. This policy will work as strength for the organization to some extent. It will increase the competitive advantage of the organization to battle against the rival organizations. The organization has set an example for other business organizations that has not transformed the employee policy and structure of the organization yet. However, there is some drawback as well of this policy that may faced by the organization. They can become soft target for the male dominated pressure groups. It may cause internal conflict within the organization as well.
Importance of the SWOT Analysis:
SWOT analysis is considered as one of the integral part of environmental analysis of any business organization. It is often used by many leading business organizations. However, there are some benefits and drawbacks of suing SWOT analysis to analyze the effectiveness of the change management process within the organizational structure. They are as follows:
Benefits of SWOT Analysis:
SWOT Analysis helps the business organization to understand the effectiveness of the change management within the organization and its operation (McPhail & Adams, 2016).
It also helps the management to understand the loopholes of the newly adopted process. By analyzing the whole method, the organizational management can easily identify their responsibility areas, where they need to put more efforts to make the change permanently.
It provides transparent idea to the business leaders about the future opportunities they can avail by implementing change management. Moreover, it helps the business leaders to understand how they can use their competencies for better performance.
By identifying the opportunities and responsible areas where the management and higher authority needs to concentrate, they can determine the goal and organizational vision that needs to be achieved by the organization (McPhail & Adams, 2016).
Limitations of SWOT Analysis:
It is often evident that SWOT analysis does not prioritize any issue.
The role of SWOT analysis is to identify the weakness or threat. However, it does not provide any kind of solution to the problems. At the same time, it does not show the way to rectify any mistake or take any alternative decisions for t bright future of the organization.
In SWOT analysis, business leaders can assume many ideas, but it does not mean that all the ideas are equally useful (de Villiers & Alexander, 2014).
Ans. 4:
The Role of Change Agent:
Change agent is a person of a business organization that plays the most crucial role in bringing change within the organizational structure. He works as an agent for the organization who looks after all the organizational aspects and does the needful to implement the change within the organization in an appropriate manner. There are some key roles that are played by the change agent, they are as follows:
Investigation: Investigation is known as the initial stage while implementing any change management within the organizational structure. This stage includes the identification of the requirement of change in the organization. Change agent observes the areas where changes need to be implemented. This is an integral part of his role. Without investigating the need of the change, it is not possible to mould the organizational structure in an efficient manner (Lodhia & Martin, 2014).
Advocate: In order to bring any new change in an organization, it is important for a person of the organization n who can advocate in the favor of the change. Change agents play the role of advocate for the required changes. He talks about the benefits that the organization is going to obtain after implementing the change. He motivates everyone to participate within the process.
Encourage: Change agent encourages all other members of the organization to participate in an effective manner in the process of bringing change. They provided a transparent idea to the members about the requirement and benefit of the change, so that they can adopt the changes within a short span.
Facilitate: Another major role performed by the change agent is to provide sufficient support to the organizational members to adopt the change in an appropriate manner. They help people to change and bring changes in their thinking process and behavior, so the organization can perform in an appropriate manner.
Mediator: Change agents work as a mediator as well. It is often evident that while implementing the organizational change, various organizational members enter into the conflict with each other. Thus, the change agent then takes efficient step to resolve the issues between them and encourage them to play their role in an effective manner. They take efficient steps to make both the parties to understand the requirement of the change and how it can be beneficial for the organization and for them as well. By such method, change agents usually solve the conflict among the employees regarding the organizational change (Lodhia & Martin, 2014).
Advise: Change agent provide sufficient support to the organizational authority by providing relevant suggestion and advise to them. They show the right path to the authority to use the change as their strength. It is not easy for the authority to gain the support of every organizational member and implement the change effectively. Change agents play the most crucial role to bring the organizational authority out from this turbulence by offering useful suggestions, which can resolve all the issues within the organization.
Manage: Change agents have clear idea about the organizational goal and objectives. It is their responsibility to manage the newly constructed organizational structure according to the organizational objective and change. He needs to monitor the effectiveness of the change method as well as the must evaluate the growth of the organization to reach to the conclusion.
The management team of BHP Billiton has worked as a change agent for the organization. It is their understanding skills and capabilities that have led them to bring this revolutionary change in the history of business. They are highly responsible to involve all the organizational members in the process, so the change can be implemented in an appropriate manner. The organizational management has provided needful advice to the authority about the requirement of gender equality in the organizational policy. It has led the authority to include this change within the organization. Management of BHP Billiton has played the major role in convincing all the organizational members about the requirement of change and benefit of this change (McPhail & Adams, 2016).
Ans. 5:
It can be stated that Kotter’s eight step and Mckinsey seven-s model, both the theory of change management plays vital role in today’s modern world. These theories have covered almost all the relevant areas of modern business organizations that need to be enlightened while bringing up change within the organization. Thus, these methods work as a weapon for the business leaders now a days in order to increase the competitive advantage of the organization. There are many common links between the model of Kotter and the model Mckinsey that has been discussed in the previous sections. However, there are some key differences between the models that have distinguished them from each other and it has enhanced the competitive advantage of the model as well. Although, Mckinsey has covered almost all the areas of the organizational change management, but he has not provided any broad picture through his model that will be beneficial for the higher authority of the business organizations to understand the required steps that they need to take to modify their organizational structure in more flexible manner. It is required for every model to provide a clear and communicative concept that will help the organization to take further steps (Hsu et al., 2013). In this scenario, Mckinsey has failed to do that, he has only described about the elements that are the parts of the change management, which is not applicable for modern competitive era.
On the other hand, the model of Kotter has described all the aspects of effective organizational change management process. The model has enlightened every steps of the organizational change management by which every business organization can ring relevant and required changes in the structure. The management can easily obtain a clear idea about what steps they can take and which step will be suitable for their business by analyzing the Kotter’s change management model. The respective model has discussed about eight crucial step of change management method that covers all the aspects of the organizational change management. The model has argued that before adopting any kind of change, the management must determine their goal and vision, so they can communicate this goal and objective to other members of the organization (de Villiers & Alexander, 2014). Therefore, the model has stated that in order to bring changes, the organizational leaders must build up an organizational team and they must work as a team to achieve the organizational goal. Another major factor highlighted by Kotter in his model is that employers must maintain healthy and interactive relation with the employees of their organization and must involve them in the whole process. They must communicate with them about what changes they want to bring in the structure, policy and strategy of the organization and what impact these changes will put on the organizational development. The model claims that if the organizational leaders will be able to convince their internal stakeholders, they will be able to implement the new changes easily. Moreover, it will be beneficial for the employees to adopt the techniques and methods accurately, so they can participate in the change. At the same time, it will establish a strong relation between the employees and employers. Employers can easily earn the trust of their internal stakeholders and it will enhance the commitment level of the employees towards the organization, as they will feel as an important part of the organization. Eventually, it will put a strong impact on the employee’s as well as organizational performance. Kotter has argued in his model that to bring any long-term change, it is important for the business leaders to take short-term goals to be achieved. It will lead the organization towards the right direction. This step has provided a wider view to the organizational leaders about the steps they need to take to achieve success in this competitive era. The primary objective of the business organizations is to serve their target market by their efficient and effective performance, and by such practices they want to establish a bright tomorrow for their organization (Goetsch & Davis, 2014). Thus, Kotter’s model has helped the modern business leaders and aspiring business leaders about how they can put a strong impact on the business world by using their efficiency and key leadership skills. The business organizations that are inspired by the Kotter’s eight step model can easily turn around the world by their efficiency. Hence, in this competitive era Kotter’s Eight step model is more suitable than the Mckinsey 7-S model.
Conclusion:
As per the discussion, it can be stated that change management has become an integral part of modern business organization. BHP Billiton as achieved the top most position in this scenario by introducing gender equality policy within the organization. Although, the organization may face various difficulties due to such practice, but there are numerous benefits that can work as weapon for the organization to beat other rival companies. The management has mainly followed the path of Kotter while implementing the change management within the organizational structure, as the model has provided a broad picture of every step of change management method appropriately.
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