Organizational change refers to the overall change of process, strategies and modification of an organizational structure to improve overall operational excellence leads to increase financial profitability as well as the brand image (Collings, Wood & Szamosi, 2018). Nowadays human resource management plays a vital role in managing day to day workforce in an effective manner and that helps the higher management to make the changes successfully. The basic objective of all the organization is to improve its overall business position and increase the number of loyal customers (Bratton, & Gold, 2017). Organizational change is necessary to improve the performance of each and individual employees and implementation of new upgrade strategies generally provides the organization with more competitive advantages in operating market. This particular project generally focused on the organizational change of BlueScope Steel Ltd. It also indicates different organizational issues that hamper the overall operational excellence as well as the financial profitability of this company. Different strategic ways also have been discussed in this section that will help this company to improve its current position in an effective manner.
BlueScope Steel Ltd is one of the popular steel manufacturer organizations all over the world. The current financial position of this organization is good enough to expand its business in other emerging countries. The head office of this organization is in Melbourne, Australia. Mark Vasella is the Chief executive officer of this company, and Graham Kraehe is the chairman of this company (Bluescope, 2018). On the basis of gathered information, it has been identified that in the case of the financial year 2016 the revenue of BlueScope was 3.202 billion AUD. More than 16 thousand employees are now working in this organization, and it is one of the major strength of BlueScope. Automotive steel parts, steel plates, coils, steel slab, are the major products of this company (Ghose, Pizzol & McLaren, 2017). The vision of this organisation is to be the global leaders of the steel manufacturing industry, and the mission of this organisation is to improve its operational excellence to increase its customer’s leads to more financial profitability. The higher management of this organisation also faced different issues of poor organizational performance, and that generally hampers brand image and financial position of this company so that the senior management is also trying to implement various strategies to make effective changes.
Research methodology is one of the important parts of the entire research project. The analyst needs to select particular research design strategies to complete data collection and analysis part successfully. In this specific research study, both the qualitative and quantitative data has been considered to get reliable and validate outcome from project work (Ginter, Duncan & Swayne, 2018). Different books, journals, newspapers have used as secondary data sources. At the same time, to collect the primary data, the analyst also conducts interviews with the managers and other employees of this organization. Gather viewpoint of this organizational staff also provide reliable and confidential information leads to get a better outcome from this project. Based on the research objective some research variable close-ended questionnaire has been selected to gather different validate information (Brewster & Hegewisch, 2017). The analyst will also collect the mail ids of human resource managers and other employees of BlueScope and will take proper consent of the each and individual respondent before conducting interviews. The analyst will provide the questions through email and Skype and also ignore the face to face interview to save the project cost. After gathering of the entire essential information researcher will generalize all the data through Microsoft office excel and will perform descriptive analysis to recognize the results. Some graphs and charts also have been used in this section for better understanding the change in this company.
According to the research it has been recognized that the overall operating system of this organization is very old and that also hampers the overall organizational performance so implementation of digital and automation technology is urgent for this company to improve its operational performance for gaining more competitive advantages in operating market (Martin-Sardesai et al., 2017). At the same time, high labour cost usually reduces the profit percentage so that the implementation of digital technology will reduce the labour expenses of this organization and it will improve production as well as product quality. Lack of proper communication between management and other employees reduce the performance of each and individual employees so that proper training is required to improve overall work excellence of BlueScope. The higher management of all the business organization generally recognizes its current strength and weakness before the organizational change and that ensures the higher rate of success (Northouse, 2018). Based on secondary data it has been recorded that current financial position of this organization is good and the majority of staffs are experienced that means the overall strength is good enough to implement change process for overall organizational development (Petrou, Demerouti & Schaufeli, 2018). The major weakness of this organization is poor decision-making ability that means the management can’t make an effective decision in pressurizing situation for that reason it generally hampers the overall performance as well as the organizational workforce. The management team also needs to take a proper decision with a view to change for that reason management of every organization mainly evaluates the risk factors effectively for sustainable organizational development (Analoui, 2017). The higher management and executive members are the main decision makers of BlueScope and executive members of this organization also involve the potential stakeholders in the decision-making process to generate more unique ideas leads to the long-term development of this organization.
Organizational change is one of the toughest management processes and organization needs to take different in imitative to make successful change leads to get a positive and sustainable outcome. Different components of change managing are depicted below for better understanding the overall process perfectly.
At first, the Human Resource management of BlueScope needs to recognize the potential organizational issues that generally hamper the organizational operations leads to financial loss. The managers of this organization need to select some basic strategic objectives based on problem statements (Bailey et al., 2018). Most of the organizations prepare their own change management team and monitoring team to execute overall processes. The higher management needs to specify the roles of each and every team members during the operation or change management process (Krantz, 2018). It is urgent to focus on selective areas and needs to ensure how many changes are required for this organization. Development of a sponsorship model will help this organization to identify the leaders who will motivate others as a sponsor of change. Risk management is essential to recognize future threats and it also helps the organization to avoid upcoming threats and mitigate all the issues in an efficient manner for that reason the change management team of Blue Scope also needs to evaluate all the risk factors to make the development process sustainable.
Management of the overall change process is a vital part and the Human resource managers and leaders play a vital role in managing the overall process (Chelladurai & Kerwin, 2017). The second component of change process mainly focused on communication planning, training, resistance management and sponsor roadmap etc. communication is the critical part of the change process and without proper communication, it not possible for the team members to manage the overall change process perfectly (Northouse, 2018). Effective communication will help the team to coordinate with others for better management. At the same time, proper training and coaching are urgent for each team members. The major responsibility of the HR manager is to evaluate the performance of all the employees and recognize the area of improvement to improve their performance as well as working excellence leads to effective change management. Apart from that resistance management planning also help to make the change sustainable and long-term.
It is the final phase of the Change management process and that is urgent to recognize the effectiveness of change. This particular part of change management is mainly focused on the collection of feedback from potential stakeholders (Krantz, 2018). At the same time, it is important to measure the changes ad it will provide the organization each and every gap of this process so that the organization can take corrective action planning to mitigate all the issues. Apart from that, after the implementation of different unique strategies, management needs monitor the performance of overall organization for comparing the current performance with previous one to recognize the level of success (Khairul, 2018). To make the change perfect company will set up a monitoring team and the main function of this team is to evaluate the success and address all the gaps.
In present days organizational change is one of the burning issues for the research scholars. There are different approaches and models are present regarding organizational change but the Seven S Framework, Peters analysis model and Mintzberg’s models are more appropriate to understand the change process in a proficient manner. Two major approaches such as perspective and Emergent approaches usually used by the organization to make the organizational change success. The management needs to understand the key variables or independent variables to evaluate the organizational change process. There are different factors such as the working environment, the experience of employees; organizational strength, weakness, upcoming threats, opportunities etc. mainly influence the organization to change its position from one state to another.
Perspective approaches refer to the planned changes by the organization so that higher management generally develops a lot of frameworks and models to fulfil each and every objective of the organization. Kurt Lewin first proposed this approach and according to this approach, if the destination of the organization is unclear and the working environment is problematic in that it is impossible for BlueScope to make the change process successfully. Different negative impulse, accidents generally triggers the organization to make immediate perspective changes.
On the other hand, Emergent changes refer to the adaptation; upgrade technology and other fundamental changes without proper objectives. When the people are not able to accomplish their works and when the organization deals with breakdown, opportunities in regular work when Emergent changes occur (Yousef, 2017). This particular model has five particular factors like an assessment of environment, leading change, link operational and strategic changes, a human resource as organizational assets or liabilities and coherence of purpose, that provide us detail information with a view to the Emergent change process.
Peters and his colleague first introduced this framework in 1970 and this particular framework generally focused on seven different factors such as organizational strategy and that mainly provides the organization higher competitive advantages in operating market (Harding, 2017). The organizational structure that means proper organizational structure also helps management team execute the change process efficiently. The proper organizational system is urgent and it helps the team members to coordinate with other members during high pressure. The organization needs to maintain its own and specific style during operations. Another major factor is staffs because staffs are the main asset of every organization and expertise people are needed to make the changes effectively (Helmreich & Merritt, 2017). At the same time, the skills of this staff are also important and it mainly improves organizational resources. Skilled employees ensure better quality works leads to achieve corporate objectives. Finally, the superordinate goals that mean the major objectives of the organization that is really important to make the changes. A specific goal is urgent for all the organization to express vision, concept and values that higher management brings to the company.
This model generally focused on continues improvement of an organization that provides organizational growth, high rate of return, organizational brand image and other various benefits. According to this model, the majority of an organization controlled their business operation tightly and takes action instantly to mitigate different problems (Harding, 2017). At the same time, it is important for all the business organization to build proper relation with a potential customer through world-class quality and service leads. It also helps the organization to gain more loyal customers from operating market. Management needs to gather viewpoints or feedbacks from potential customers to recognize the areas of product improvement. All the employees of BlueScope need to clear with a view to organizational mission and vision and it also helps each and every employee to achieve their goal quickly. According to the viewpoint of (Chelladurai & Kerwin, 2017), a perfect organization have a good culture and corporate governance in the organization and distinctive culture also helps management to complete their mission in an efficient manner. Based on research it has been identified that BlueScope has a clear and flexible organizational structure so that the company is very flexible to make changes in the environment.
In 1983 Mintzberg proposed a concept with a view to organizational change management that divided into five major segments such as a strategic apex means the board of directors and main decision makers. The middle line generally signifies the Administration manage the day to day operations (Alaka et al., 2017). The main function of operating core is to supply the organizational products and other marketing operations, the technostructure is the advisory committee and the main responsibilities of this segment is to provide different innovative ideas for organizational development. Supporting staffs of an organization also play a vital role in managing different corporate activities as well as regular operations. These basic five structures generally provide the organization more flexibility leads to manage the operations efficiently.
Based on gathered data from the respondent it has been identified that the labour cost of this organization was very high for that reason the management this organization decided to cut the number of employees to reduce organizational cost and that generally create a negative effect in the organization (Helmreich & Merritt, 2017). The performance of the employees was not good enough so that it generally hampers the overall organizational performance leads to reduce financial profitability. For that reason, the Human resource management has decided to conduct a training program with each and every employee to improve organizational performance further.
Most of the organizations are implementing different strategies for improving corporate performance. BlueScope also needs to take different strategies to improve overall organizational position and it will also help this company to manage organizational change in an effective manner.
Implementation of leadership is urgent for BlueScope and it generally needed to motivate other team members to achieve their goal efficiently. A good leader has vast of knowledge and experience so that they can handle the toughest situation perfectly (Manocha, & Ponchon, 2018). Sometimes the managers also depend on leaders because leaders in business organizations create effective communication with management. A true leader is able to identify the psychology every team members and able to build good relations that helps in fulfilling the corporate objectives (Howard, 2017). It is important for an organization to identify the basic requirement of each and individual staff and leaders play the vital role in recognizing the requirements of each and every team members.
Apart from that, the higher management of BlueScope needs to provide a training program to each and every employee and it will improve organizational performance and also reduce the chance of risk during change process (Correll, 2017). Organizational change is a very complex process so that management needs to improve its position. most of the employees of this organization are not familiar with digital technologies for that reason conduct technical skill development program with potential employees also help this organization to manage the overall change process in a swift manner and it also reduces the overall labour expenses of this company.
On the other hand, it is important to create proper communication between management and other employees it will help management to regulate the day to day workforce during the change process. Proper communication also helps the manager to take an effective decision in the pressurized situation. At the same time, effective communication also helps to build a proper relation between general employees and management so that communication also known as the building blocks of an organization (Kuusela, Keil & Maula, 2017). Proper communication between team members also improves active cooperation leads to manage the toughest situation easily.
This particular study mainly focused on the role of Human Resource management in the organizational Change process. An interview has been conducted with the employees and management of BlueScope to gather different validate information with a view to organizational problems and role of HR manager in managing the overall change process. Different models such as Mintzberg’s Model, Peters model; Seven S framework has been discussed in this section to understand the organizational change process in a detailed manner. Based on the gathered viewpoint of employees it has been identified that majority of employees are unable to use digital technologies and lack of sufficient skills generally hampers the workforce of this organization so that management needs to provide a training program to all the employees leads to effective management during the change process. At the same time, the human resource managers of this organization said that implementation of leadership is essential for this organization it will also reduce the work pressures of managers. At the same time, proper communication between management and leaders will also help to manage the organizational change process successfully.
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