Question

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Learning Outcomes:

1. Identify the different elements and issues of organizations development and creating the need for change.

2. Analyze the strategic role of change in the organization and its impact on organizational performance

Overcoming barriers to change: A Corus case study

Overview of the Case:

Corus was formed in 1999 when the former British Steel plc merged with the Dutch company, Hoogovens. Corus is now a subsidiary of the Indian-owned Tata Group. Corus has three operating divisions and employs 40,000 people worldwide. Corus Strip Products UK (CSP UK) is based at Port Talbot and Llanwern, Newport in South Wales. CSP UK makes steel in strip form. This is used in markets such as vehicle manufacture, construction, electrical appliances, tubes and packaging. Corus aims to be a leader in the steel industry by providing better products, higher quality customer service and better value for money than its rivals. In 2005 CSP UK introduced a cultural plan for change called 'The Journey'. The company wanted to address a wide range of business challenges, but the common theme was the fundamental way that people at all levels went about their work. The Journey focused on the values and beliefs of its people. Vitally, this was not limited to employees, but it included contractors, suppliers and other partners. This community of people together redefined eight core values. These provided the guiding principles by which Corus people would work. By early 2007, all employees had been provided with a booklet outlining the CSP Journey values and the behaviours the company expected them to follow. The new values encourage individuals to be accountable for their actions. For example, previously, there had been tragic accidents on site and other health and safety issues, such as poor driving behaviour. This needed to change. The Journey programme has taken a positive approach so that it now steers everything CSP UK does and underpins the culture of the organization.

Questions:

1. Analyze and discuss the five key elements of successful change management.

2. Explore the processes of change associated with each element.

Answer 1

1) 5 KEY ELEMENTS OF SUCCESSFUL CHANGE MANAGEMENT-

The following are the five key elements of successful change management-

• Communication- Frequent and efficient communication is essential. It is required to keep all the employees and others who are part of the organization updated with the changes being introduced, the reason and benefits of the same.
• Training- It is an essential element of change management. With changes being brought in, it is important for the employees to get trained to handle the ongoing change in the organization.
• Resistance management- When changes are brought in the firm, it is natural that some of the employees might resist or oppose this change. It is essential to manage this resistance.
• Resource Identification- Identification of resources and amount of funding is required to assess what all is needed to bring the change.
• Feedback- In order to assess how effective the change has been, feedback loops are important. This enables the organization to bring corrections in the change model and also figure out how the change has benefitted it.

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2) THE PROCESSES OF CHANGE ASSOCIATED WITH EACH ELEMENT-

'The process of change associated with each element' means how the following key elements can bring in the process of change during change management-

(a) Communication-

Effective communication can be brought in by

• Analyzing the components of communication- Whom to communicate, what to communicate, when to communicate.
• Bringing awareness among the employees of the change
• Planning communication by analyzing the audience and the key message to be communicated to them.

(b)Training-

• Training is to be done after the employees who are going to be impacted by the change are made aware of the same.
• By introducing skill-building programs in case of new technology is being introduced, employees get prepared to handle the change.

(c) Resistance Management-

In this case, the change management team has to-

• identify the resistance
• help the employees to adjust to the change and reduce resistance.
• benefits are highlighted
• resistance removal tools and strategies are used by the team

(d) Resource Identification-

• In order to bring the change, resources are identified by the team.
• Required training sessions are conducted for the employees
• Funding plans are made
• Data analysis is done

(e) Feedback -

• Feedback essential to monitor any change
• Involvement of employees is essential.
• Further changes and the impact of change can be assessed by feedbacks.
• By circulating a feedback questionnaire or rating scale, the organization can assess if corrective measures for the change have to be taken or what the impact of the change has been.

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