Change is inevitable in the growing business world today. The dynamic and ever changing world of business cannot offer anything good without constant change of the organization’s management and practice. The driving forces of change are growing and advancing daily calling to a more systematic and integrated approach to change in the modern world of business. The only way to remain sustainable is to adapt to change and to manage it systematically. Various organizations make changes including new management, mergers and acquisitions, new strategies in marketing of the product, new products, and new technology among other changes that can occur in the organization. This study will use the case between Kellogg and Proctor & Gamble chose to sell their Pringles business unit to Kellogg. As a result, the change from the original company to a new company in a different region was quite large for the employees and management. This essay will show that mergers and acquisitions are a great organizational change form that can affect the operations of a company. Kellogg received a great deal that would rank it second in the world as the provider of savoy foods, yet it was not an easy transition for those that were affected by this change. Change is inevitable and can affect the development of the company. Change and the effects of change affect the organization development and practices and especially the delivery of service. Therefore, having to prepare for change and handling issue related to change. This essay will discuss organizational change as the main source of problems in management. This essay will discuss the change in the selected company, drivers of change, effects of change or consequences of change, resistance to change and the effective management of change.
Change means something new that is different from the norm. Change management is an approach of transitioning people, teams, and the entire organization from the past to the current state that is desired for the future. The process of change in an organization takes a long time to implement or short depending on the nature of change that is happening. Organizational change is good for the company. In the case of Kellogg and Proctor & gamble, there is so much they had to go through to see this change. Pringles potato is an original business unit belonging to P & G and they sealed the deal last year to sell it to Kellogg after the deal with Diamond foods failed. This is an acquisition that was a big transition for the company employees and management in the unit that would be under new management by Kellogg. The two companies benefit from the deal by Kellogg receiving a deal that would triple its market share and competitiveness. Proctor & Gamble would boost its share price and receive $1.5 billion on profit for the deal. The acquisition saw the facilities of the Pringles manufacturing move to Kellogg. This transfer includes all the workforce of Pringles including the resources in Tennessee, Jackson and Mechelen in Belgium (P&G, 2013). This was a large level of change because it involved an entire Pringles business including its employees, management and other resources that complete it. With such transformative or revolutionary change, the company would have to make severe changes that would affect its business and service delivery.
Change comes with so much preparation and consequences. This is especially if it involves a change in environment, having a new management and changing everything in the organization. This means that all the branches and units of the business need to be set for this change. Just like in the past, the business environment is still a dynamic place. However, today the change is rapider and involves a lot of things compared to the past. There are many things that happen during change. Change today is driven by the need to stay competitive, technology advancements, new initiatives in business and the need to develop business strategies and management (Burke, 2010, p.1). Despite the amount and intensity of change, there is a lot of intimidation and uneasiness because of the challenges involved. The challenge is that there is the need for change to happen, but it is difficult to determine who will be involved, where and how to start, how to deliver the change and how to manage it till it is complete. Various companies have experienced this often in their practice it always takes time, leadership, planning and a lot of integrity to pull this through the entire process. This is because it is expected that the greatest challenge and risk of facing resistance which without proper preparation can be the source of failure of implementing the change. Change management remains one of the greatest management problem that the companies have to deal with in business. Kellogg and the P&G employees are no exception. This is because there are various factors in the modern business environment that have contributed to the grand need for companies to go through change.
Drivers for Change
Change in the industry especially in the food business is driven by various factors that push organizations to change. Each company in the industry aims at developing and maintain sustainability and profitability. These companies cited various factors that contributed to change in an organization. An organization can be driven to change by factors in the macro and micro environment. These factors include political, social, economic, regulatory and technological. However, globalization is the main driver of change in the recent times. Kellogg aimed at making its international and global distribution and sale of snacks great and had to acquire Pringles. Globalization is the origin of all need for change because of the many things that globalization has added to the business world. There is more need for standardization of products and services to manage to sell in the international market. Businesses are forced to advance their businesses to fit in the global market arena (Lewis, 2011, p.183). This is especially by adopting new market entry strategies that will enable them remain profitable and competitive without losing all their investments in a foreign land. Furthermore, there are more business policies that require businesses to meet a set of standards and procedures. As a result, they all have to adopt strategies that are acceptable in the global market. This change can involve a small thing as changing the company mission to rebranding or repositioning which means changing the entire image of the company to fit the global standards. Globalization has led to the famous availability of opportunities in the market for growth and revenue. With such a large potential for growth, companies are all becoming global to enjoy edge and a large geographical market presence. This is a vast reason for them to change.
Consequences of Change
Organizational change is a way of organizational development.
It is unavoidable and based on Kellogg and P&G case study, change is a source of serious consequences. This is because, for starters, people are driven and guided by rules and policies. People like being persuaded and coerced to perform and work. There is bound to positive long-term effects of implementation of change. These are the main reason why several companies go through with change because they are guaranteed that it is for the good of the company. However, there are other negative effects of change. The first and most obvious consequence of change is resistance resulting from reaction to changing. People have a tendency to be resistant. Resistance to change is the leading cause of failure of any change that is being implemented in the organization. Various organizations have cited that employees and the staff resist change even when it is good. There are organizations that choose to maintain their current status quo without going through change. This cause decline because an organization cannot survive in the market without development. Resistance lowers she organizational effectiveness thus reducing an organization’s chances for survival. Individual in the organization notice anticipate and react to change. Groups in the organization develop norms that govern and specify appropriate roles, and these strong group norms promote resistance to change. There are various reasons that resistance is shown by different levels of the organization. Reactions to change could range from supportive and positive to negative and quite resistant. People anticipating change with feelings of insecurity, fear and anxiety react negatively to this change (Pierce, Gardner & Dunham, 2002, p.634). This is because no worker or employee can enjoy change that he or she knows will impact negatively on the career and professional life he/she chose.
Change management is the greatest problem that organizations face. It is not because the process is so complex, but it is all about the planning and organization involved and the reactions that people show towards change. Hence, resistance to change is the source of all organizational problems. Kellogg and former P&G Pringles employees had to work together and take all the necessary steps and strategies to manage the change process. Change is driven by globalization, technology, consumer/public needs, social factors, employee needs and wants, market demands and economic and political factors. Effective change management process has to be effected by leaders. Leadership is a vital aspect in change management. Leaders inspire, guide and encourage people to accept and support change. Resistance to change is a common reaction with employees. This is especially if they are afraid, anxious or insecure of losing their job. They also resist change if they do not trust the users of change and if they hold fears that the company will not succeed. Effective management of change requires the organization to apply the relevant strategies and skills. These include the ability to training employees and managers, forming focus groups for easy addressing of concerns and challenges, from the members of the organization. Communication is vital as it ensures that all those affected by the change are given continuous interaction and communication. Consultation is good for employees and to ensure that people have support and are encouraged to feel comfortable about the change. Each of these organizations has been finding various ways to go through the process of change in an organization.
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