Change management in an organization: External and Internal change

Q?? Role of a change management in an organization??Solution

Introduction

It is very clear that the Changes play a significant role in the Organization. Whenever the Company moves towards the desired objectives, numerous changes have taken place within the organization structure. Organizational Change is explained as the organization move away from its current state and concentrates more towards the future to enhance its productivity and efficiency. In general, each and every organization is impacted by external and internal environment. The internal environment may ranges from strategy to people and from structure to process (Pearce & Ravlin, 1987). In general, the organization survival is reliant on matching the complexity level in the external environment. Nestle, has also adopted some of the adjustments due to external and internal factors. It has been analyzed from the case study that for enhancing the productivity, the Company has decided for worldwide expansion and initiated purchasing domestic subsidiaries from the external market.

It has also been noticed that the Company had picked up other markets for diversification other than the food industry whereby the Company’s the first pick item was the cosmetic brand. But after some time, the company had acquired other products like ophthalmic and pharmaceutical. The CEO of the Company had decided to get free from non profitable business and purchase the profitable ones. At last, for the expansion the company was required to concentrate on enhancing productivity, business expansion and financial improvement.The CEO of the Company had opted for the first order change that was constant so that the Company can survive in the aggressive market. The changes have been mentioned that have taken place at the Nestle. It has been noticed from the case study that the Company has never gone for the unplanned change. The CEO of the Company was focusing on the long term goals as compared to short one and moreover he did not believe in sudden changes. Another change observed at the Nestle was the proactive change where the changes were always the Nestlé’s part in its practices (Robbins, 1996). It is very clear that the Company would stop if the changes are not done. For adjusting to current situations, it was necessary for the Company to make the continuous change. In general, sustenance and reinforcement both needs continuous change (Sparrow &Cooper, 1998). Another Change observed at the Nestle was related to personnel change where the new executive board was the result of it. It has been noticed that working at the slow pace was never the obstacle at the Company. These changes were the outcome of the requirement to develop by Nestle. In general, the ability of the management is to accomplish the maximum advantages from the change and how efficiently the management may maintain the climate which reduces the resistant behavior and motivates the support and acceptance (Cliffs Notes, 2011).The Burke- Lit win model goes in line with the changes that occurred at the Nestle. This model was developed by Warner Burke and George Litwin and focused on four transformational factors such as external environment, mission and strategy, leadership and organization culture (Fong & Kleiner, 2004). In general, the organization survival is reliant on matching the complexity level in the external environment. Nestle, has also adopted some of the adjustments due to external factors.  The Nestle Company has opted for worldwide diversification and initiated purchasing local subsidiaries from the outside market (Nutt, 2004). Nestle had few initial strategies which it restructured as per the need of the hour. It gave away the non-profitable business & become interested in the profitable ones. Nestle had a set pattern for the corporate development of its workers. The growth required to be handled in the significant manner. Leadership helps the change managers at the Nestle how to make the strategies in order to deal with the changes. In general, organization culture is explained as the particular set of norms which are communicated by groups and people in the Company and control the workers interaction with stakeholders beyond the organization. Nestle Company had norms regarding process and personnel that is needed for smooth working of the organization.

This essay includes answers of case study. According to the CEO, Nestle was going under the incremental changes. The changes have been made in accordance with the current structure of the Company with taken into consideration long term objectives. The concentration of the Company was on sustaining the existing things rather than focusing on innovative things. Due to focusing on maintenance of existing things, Nestle has landed up with the First Order change. Nestle concentrated on enhancing the productivity by implementing the similar characteristics of the organization (Anonymous, 2003). It has been noticed that the CEO of the Company was not in the favor of irrelevant changes. The CEO of the Company believed in slow and constant change and helps in maintaining of long term objectives rather than focusing on short term goals. The CEO focused on Incremental approach for the Nestle. It has been analyzed from the case study that he always worked on the proactive approach for any kind of change that made the Company to succeed further.

The changing strategies have been analyzed in Nestle case in past as well as present. It has been analyzed from the case study that the Nestle has decided to opt for global diversification to take care of the existing strategies. The Company decided to purchase the existing domestic subsidiaries in foreign markets. The Company has decided to purchase existing factories in America for enhancing of productivity of the Company. It has been noticed from the case study, to move out of the food sector the Company has decided to purchase the current pharmaceutical and cosmetic Companies. These changes were the incremental changes where the acquisitions have been done on the existing ones.

Certain implications have come in front of change managers. The difficulty faced by the change managers is to maintain the balance between the current strategies of the Nestle and the strategies prevailing with the new acquired organization (Anonymous, 2002). Another challenge faced by the management at the Nestle is when the Company has acquired other brands which were completely different from the food brands, it was complex for the management to decide which sequence should follow , so that there will be no compromise on the success of the Company. It is very clear from the case study that the CEO of the Company was focusing on the long term goals as compared to short one. For managers, it was very difficult to work on these kinds of changes.

The three examples of lessons from the front line that are evident in Nestle are use of innovative technology, Downsizing and Acquisitions& Mergers.  Use of Innovative Technology: It is very clear that introduction of IT tool is very significant for managing the operations of the Company, but after that the Company has not implemented that tool. It is advisable for the Company to add IT tools to make the things better and fast. Downsizing:  In simple words, downsizing refers to the elimination of employees in the organization. Downsizing assists in cutting of the cost, but at the similar time points out the issue of worker retention. It is advisable for the Company, to opt other method of the cost cutting as compared to affecting the employees. Acquisitions& Mergers: It has been analyzed from the case study that, Nestle has earned significant amount from Mergers & Acquisitions. A large number of cultural issues have to be taken care of. In general, when two companies merge in any form, then retention of the employee arises as a significant issue (Anonymous, 2002).Conclusion

At last, Company never believed in non- realistic objectives which demanded sudden change. The difficulty faced by the change managers is to maintain the balance between the current strategies of the Nestle and the strategies prevailing with the new acquired organization This Burke- Lit win model helped the organization to understand external environment, strategy, leadership and Organization culture. The Nestle Company has opted for worldwide diversification and initiated purchasing local subsidiaries from the outside market. Once the gaps are recognized it becomes easy to work in upward movement for the growth of the organization, changing any organization is not as simple as it seems to be. Knowledge, skills & expertise are the key areas for any organization undergoing change. At last, it can be concluded that the Nestle falls under the category of fit organization.

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