BHP Billiton is one of the globe’s biggest mining and resource entities with approximately 100,000 workers in more than 25 nations (Terence, 2015). According to him, the company was founded in 2001 resulting from a merger between Billiton and Broken Hill Proprietary (BHP) and its headquarters are in Melbourne, Australia. This entity is present on the Stock Exchange in London, Australian Stock Exchange and the Johannesburg Stock Exchange (Terence, 2015). He adds that it is among the globe`s biggest producers of copper, manganese, aluminium, uranium, silver, iron core, nickel, and titanium besides having coal and petroleum assets.
There has been continued pressure in the recent by Elliot management for BHP Billiton to change course (Emily, 2017). However, according to her, the company has a very strong balance sheet and despite recently settling an immense debt. The company`s revenue has been slightly affected by settling of such a huge debt.
Organizational culture depicts the set of values, artifacts, and assumptions which emanate from the organizational members` interactions (Joann, 2011). This means that members of an entity are paramount to shaping its culture. Each entity has a culture. However, the question is whether that particular culture is what you need or not (Peter, 2010). This is the most fundamental question which needs to be fully addressed by every organization.
The company embraces operational discipline as well as front line personnel involvement for its increased performance (releases, 2017). This means that it heavily relies on its employee’s participation in its operations. This is commendable. However, the workers needed to comprehensively enlightened and informed about the overall desired organizational culture of the company to optimize their productivity.
The company is presently facing some human resource challenges particularly the issue of inadequate staff in the mining sector (Rodrigo., 2013). This has fairly hampered its productivity. Consequently, it needs to hire and train more such professionals to mitigate the shortcomings of such an inadequacy like reduced revenues.
The company`s corporate communications are weak, and this is attributed to the inability of the staff to be proactive in replying to corporate inquiries by employing contemporary media or making efficacious group communication with the stakeholders and investors (Rodrigo., 2013). This has immensely hurt the company`s ability to address the queries of its crucial stakeholders like suppliers, investors, and clients. As such, there is need to change this by training the staff to be proactive in dealing with such publics and efficient use of modern media in communication.
Changes in political and economic conditions affect the prices of the various commodities of the company like petroleum products and coal among others (Wikinvest, 2005). The political aspects include war, hostilities or acts of terrorism. Such factors are inevitable, and as such, the entity needs to do comprehensive feasibility studies before opening up operations in any place to avert such constraints. Economic factors include the regular fluctuations in the exchange rates. This is especially with the depreciation or appreciation of the US Dollar.
The company is confronted by the threat from the perpetually increasing supplier costs, shipping, and contract labour costs, issues with labour staffing, inflation, and political threats which hinder its growth (Rodrigo., 2013). Evidently, most of these threats form part of what pulls down the revenues of the entity. These may emanate from the changes in the terms and conditions and length of labour contracts, changing suppliers and the global inflation.
The company needs to change its marketing, and public relations approaches from the present standard to more attractive and innovative ones. The entity can cement its brand position by promoting creative marketing solutions and employing modern media tools, and this involves establishing brand awareness to its customers (Rodrigo., 2013). This way, the company will tap more opportunities since it will increase its customer base which will translate into increased profits.
Organizational change is a rigorous force which is an inevitable aspect of organizational life (Sharma, 2006). Similarly, it is a planned adjustment of organizational elements to enhance the efficacy of the organization (Cawsey & Gene, 2007). This implies that it is an intensive push that is necessary throughout the life of any particular entity. This is prompted by the ever-changing internal and external environment of the organization which necessitates quick response to the environment and solid transformations within the entities themselves (Sharma, 2006). Similarly, change must emanate from within the entity (Kavita, 2009). This means that change must be started from within the organization outwards.
Individuals must be conscious of the need for change, have faith in the potential value of the proposed changes and be willing to adjust their conduct to make the department, team and the organization at large to be efficacious (Kavita, 2009). This implies that the most crucial elements in the change process are the people. However, according to him, the absence of such behavior and beliefs hinders fruitful organizational change.
Although organizational change is seen as paramount, the success levels of change remain very minimal (Thao, 2005). This means that regardless of the immense efforts put into promoting organizational transformation, its success levels remain little. However, much of the organizational change comprises enhancements and additive steps to fix a challenge or alter a section of the larger system (Wyatt, 2008). As such more often organizational change is driven by the need to address a problem.
3-phase change management framework
I would propose the use of the 3-phase change management frameworks one of the most suitable models to drive organizational change. According to this model, the desire to grow an individual`s identity and uniqueness will cause the group to embrace change (Sharma, 2006). This implies that the team leader or the management has to stir the desire for change within the workers to promote successful accommodation of change within the organization. For instance, the problem of BHP employees’ inability to efficiently address clients` queries can be mitigated by facilitating individual learning and increased social interactions. This way, they will sharpen their customer service skills and hence become remarkably proactive when handling such client issues.
The model sees entities as systems which get impacted by environmental changes (Sharma, 2006). This means that an organization is regarded as composed of interdepended systems whereby a change in one component causes a change in another component. As such, for BHP, sharpening of the employees` customer service skills will translate into upward or positive changes in sales. It involves six interactive variables namely the people, culture, technology, task, design, and strategy and as such, a change in one variable triggers a change in other variables (Kavita, 2009). However, it calls for prudence when handling change initiatives to avert any likely negative change effects on the other variables or systems.
In this framework, when preparing for change, BHP has to articulately describe it intended change management strategy, establish a change management team and develop a sponsorship model. In the second phase, which is managing change, the company needs to create management plans, for instance, to strengthen its corporate communication and then execute them accordingly. In the reinforcing change phase, BHP has to gather and assess the feedback from the employees. Here, the management allows the subordinates to freely voice their views on the proposed change, their needs, and motivations. This allows them to express their feelings and opinions about the change. As such, the employees are more likely to accept the change with minimum resistance, if any. Based on the feedback, the management can diagnose gaps and manage any possible resistance by the workers. After this, the leadership will execute corrective steps and then celebrate success as an organization.
The inputs are what translate into viable outputs following a change. The change has to be integrated into the goals and mission of the entity. For instance, the change in BHP to improve its corporate communications has to be aligned to the company`s goals and mission. Also, the top leadership must accord full support to the planned change. This is particularly by providing the needed resources. All the other inputs are equally paramount. After sorting the inputs, the employees acquire the changing knowledge and share it amongst themselves, which is a process that may take a while. Finally, the outputs comprise the desired results of the change. The learned skills and knowledge have to influence the overall corporate culture for a sustainable change effect. Also, individual performance is emphasized here besides shaping the suitable organizational goals.
For example, the employees of BHP need to adopt a proactive approach when responding to client inquiries with due diligence to achieve the desired output. Similarly, the company`s corporate communications improvement measures need to be implemented carefully to ensure the achievement of the intended goals while averting any likelihood of negativity. Consequently, transformations have to be articulated in its input and output (Burke, 2013). This implies that adjustments in the inputs have to lead to improvements in the outputs.
The sole aim of the change is to increase the productivity of an organization by establishing avenues of developing or supporting its competitive merits (Fiona, et al., 2012). This means that each entity`s primary goal for adjusting its systems or variables as composed in the systems model of change discussed above is to enhance output and consequently increase revenues. BHP will be able to increase its profits as a result of the company training their employees to be proactive and also strengthening its corporate communications. This is because customers and other stakeholders will be handled satisfactorily.
It is essential for change leaders to device ways of getting their workers on board and all working for the same goals (Fiona, et al., 2012). When this happens, the possibilities of tapping the talents and complete capabilities of the employees are heightened. For instance, the employees of BHP can exploit their productive potential maximally when trained on how to be proactive, how to strengthen their modern media usage skills and the way to sharpen their skills to properly handle the corporate communication tasks.
It will follow the following framework:
According to the framework, employees tend to resist change due to digesting change information selectively by discarding what they do not want, fearing the uncertainties that change may bring along, economic issues like lowered pay, unwillingness to change existing habits and fear of job security in the future.
It is evident that change is normally followed by resistance (Warner, et al., 2008). This means that there exists the tendency by employees to resist change instantly or in the future. However, the common factor for change resistance is the absence of motivation towards the change challenges (Fiona, et al., 2012). Other causes of change resistance include low change tolerance and the fear of losing something of value (Anita, 2012). This means the lack of incentives to accommodate change and be ready to overcome its resultant adaptation challenges by the workers. Examples of causes for resistance include the potential for loss of systematic perks and comforts of a given job and personal interests possessed by the workers (Fiona, et al., 2012). In the case of BHP, the employees may be reluctant to embrace the proactive approach to issues due to lack of direct motivations to do so.
Change resistance mitigation framework
This model is applicable in averting or mitigating change resistance. According to (Ken, 2006), it is suitable where the resistance to change is expected or has already occurred. For instance, BHP management has to first communicate the planned change to the employees in a comprehensive manner, train them on the change, ensure their full participation in the change process, identify and manage the existing and possible stress resulting from resistance to the change and negotiate the way forward for the success and sustainability of the change. As such, the model is appropriate in addressing resistance to change problems regardless of whether the resistance has happened or not.
One of the most efficacious ways of mitigating resistance to change is communication (Daniela, 2015). This means that systematic and perpetual communication is indispensable to promote and solidify the desired impact of change. However, surprisingly, the most common cause of resistance is the lack of information or inadequate information for that matter (Daniela, 2015). As such, BHP management ought to continuously communicate to the employees following the implementation of the change to mitigate chances of resistance. According to (Daniela, 2015), provision of constant communication aids employees to comprehend the need for change, how the change will happen and its likely consequences. As a result, the employees will feel at much ease to embrace the established changes or adjustments in the organization.
Transformational leadership conduct aids workers to overcome their worries or fears regarding change by inspiring motivation and stimulating intellectually and personal considerations of the employees (Mehmet & Hakan, 2016). A transformational leadership approach by the management can promote the successful eradication of fear on the part of the workers whenever changes are established in an organization. For instance, in BHP, the management needs to act as facilitators of the change accommodation among its employees by inspiring the willingness to embrace the adjustments. However, change succeeds where resistance is weak, averted or minimized (Payne, 2009). This means that it is necessary to ensure that issues causing resistance to change are fully addressed.
References
Anita, T., 2012. `How might resistance constitute a driver for change rather than an obstacle?`. S.l.: GRW Verlag.
Burke, W., 2013. Organization Change: Theory and Practice. 4 ed. s.l.: SAGE Publications.
Cawsey, T. & Gene, D., 2007. Toolkit for Organizational Change. S.l.: SAGE.
Daniela, B., 2015. RESISTANCE TO CHANGE- A NEW PERSPECTIVE: A Textbook for Managers who plan to implement a change. s.l.:Lulu.com.
Emily, S., 2017. `BHP boss tells Investors to stick with the company despite Elliot…ABC`. [Online]
Available at: www.abc.net.au/news/2017-06-05/bhp…under-pressure-management/8590748
Fiona, G., Malcolm, R., Aaron, S. & Ann, L., 2012. Managing Organisational Change, Google eBook. 3 ed. s.l.: John Wiley & Sons.
Joann, K., 2011. `Communication and Organizational Culture: A Key to Understanding Work Experiences`. S.l.: SAGE.
Kavita, S., 2009. Organisation Change and Development. S.l.: Excel Books India.
Ken, H., 2006. VALUES-DRIVEN CHANGE: Strategies and Tools for long-Term Success. S.l.: universe.
Mehmet, H. & Hakan, D., 2016. Entrepreneurship, Business, and Economics- Vol 1: proceedings of the 15th Eurasia Business and Economics Society Conference. S.l.: Springer.
Payne, C., 2009. `Information Technology and Constructivism in Higher Education: Progressive Learning Frameworks`. S.l.: IGI Global.
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Available at: www.abc.net.au/news/2010-09-24/corporate-australia-needs-culture…2273392
Releases, N., 2017. BHP Billiton/our culture to drive value and returns at WAIO. [Online]
Available at: www.bhp.com/media-and-insights/…our-culture-to -drive-value-and-returns-at-waio
Rodrigo., 2013. BHP Billiton SWOT Analysis and Porter Five Force Analysis-The…. [Online]
Available at: https://writepass.com/…/01/bhp-billiton-swot-analysis-and-porter-five-force-analysis/
Sharma, R., 2006. Change Management. S.l.: Tata McGraw-Hill Education.
Terence, B., 2015. Company Profile: BHP Billiton- The Balance. [Online]
Available at: https://www.the balance.com>investing>commodities>metals
Thao, B., 2005. `Organizational Barriers and Employees` Resistance in Strategic Change Processes`. S.l.: GRW Verlag.
Warner, W., Dale, G. & Jill, W., 2008. Organization Change: A Comprehensive Reader. S.l.: John Wiley& Sons.
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