Stakeholders company should consider the important roles

Stakeholders

Firm
Power

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Middle
Managers, Employees,

Stakeholder
Power

Customers,
Top Management

High
Interdependence

Investors
and Investment Parties

Low
Interdependence

Suppliers

The
implementation of this analytical tool shows the stakeholder priority of the organization
in achieving the planned change in the context of resource accumulation. Since
the company has strong dependence on investors and investment parties as source
of capital and investors also rely on the company to experience returns. This
means that the company should develop mutual positive relationship with
investors and investment parties. Since the power of stakeholder is high in the
case of customers and top management, which means that the company should
consider the important roles of top management in directing change policy and
customers in justifying the area of change.  

Resistance to change

The
main success of implementation the change is achieved by identifying and
understanding the factors which block the implementation process. Kotter (1996,
p. 3) described blocks as the entirety of the hindrances and issues experienced
by business firms in the course of implementing change. The unaddressed
resistance may lead to severe delays, accumulation of additional costs and even
failure in implementing the change.

Resistance
finds explanation through the transition curve (Fisher, 2001). The resistance
for establishing the changes in marketing, inventory and performance of
personal in Coco-cola Hong-Kong will rely entirely on managers and employees of
the organisation. It also restructures the organisation by making some changes
in the management by removing some employees or position or by adding some more
employees or reassignment employees. This situation builds up a fear in the
minds of employees and managers. The change also includes in hiring new
employees, which can be perceived as a threat by existing employees. In
particular, there are many sources which could resist the planned change. The
employees have some fear on their employment status if any changes are
implemented. So, the initial response of employees will be on fighting against
the change to prevent their actual positions. On the other hand, it can create
a positive attitude on employees that the new change will secure their position
after implementing the changes. Employees experience more safety by improving
their skills and knowledge and in order to finish their work effectively. Still
another is the different perspectives of managers and employees towards the
purpose and impact of the planned change. The different in opinion could divide
support for the change. Last is the adverse perception towards the change
because of lack of consultation. The implementation of change without
sufficient consultation, based on the perspective of managers and employees,
could develop negative regard towards the change.

Kotter’s model of change

Kotter’s
model provides eight reasons why process of change in an organization fails. It
means that if these eight reasons for failure is removed or their impact is
minimized a successful change process is possible. These eight steps can
broadly divided into three categories as preparation (steps 1-4), action (steps
5-7) and grounding (step 8). So Kotter’s model can be used to assess the change
process in Coco-cola Company:

1.) Establish a sense of urgency:

The
senior management of coco-cola realised that a change in their system of
operations was necessary in order for them to grow in business. Hence the
coco-cola Hong-Kong firm did not delay in addressing the issue and realised the
need for technological innovation and new marketing strategies required in the
company operations. These were the internal factors that the company was
sorting out after reviewing the financial report of the convenience stores. All
in all, it can be said that the sense of urgency was established.

2.) Form a powerful guiding coalition:

The
second step is to create a strong guiding coalition. The management of
coco-cola formed a team of experts to help in guiding the change process of the
management.

3.) Creating a vision:

The
expert team appointed by the management presented a new vision for favouring
the success and growth of the organisation. They also suggested some strategies
to achieve the vision on a short period of time.

4.) Communicating the Vision:

The
management created a vision for the change and it is very important for the
company to communicate the vision to its employees. The company planned to
increase the productiveness of work force. So, this may create a conflicts or
misunderstanding between management and employees of the company in
communicating vision. The top management should properly guide the employees in
how to respond that change.

5.) Empowering others to act on the vision:

In
this step the Coco-cola management was completely failed because they didn’t
empower employees to implement that vision. Employees weren’t encouraged to
take any risks without the approval of the management and they were not allowed
to take decisions at their own. Even management never used to welcome any new
ideas from the employees during the branch meetings.

6.) Planning for and creating short term wins:

Here
management needed to motivate its staff members by creating short-term targets
for them with a degree of low failure. But this wasn’t the case. There was no
short-term win strategy planned by the management and it was more focused on
achieving the yearly targets of profit. So employees were totally neglected in
the change process and nothing was done to motivate them like salary increase,
bonuses, etc

7.) Consolidating improvements and producing still more change:

For
implementation of new vision the top management needs to change the systems and
policies of coco-cola which didn’t support that change. But this wasn’t done.
The employees who were more responsible to implement change were neither
promoted or the company didn’t hire any additional people for carrying on the
vision. Coco-cola tried to execute change with help of the existing employees

8.) Institutionalizing new approaches:

Coco-cola
had realised the need of new strategies to implement change and also introduced
incentives for the employees who would implement the change successfully. The
company also saw to it that they communicated what they wanted from the
employees successfully through conferences, emails and meetings.

Overcoming Resistance to change

In
change management, the resistance of employees in firm is usual expected.
However, overcoming the resistance is important in order to implement the
required changes in the management strategies. According to Kotter and
Schlesinger (1979) there are six approaches that an organisation can use in
dealing with the resistance by the workforce and these are:

Education
and Communication- In order to overcome the resistance in Coca-Cola the
employees should be educated and informed regarding the changes within the
company before implementation and also to prevent incorrect information that
will surround the work area.

Participation
and Involvement- employees should be involved with planned changes in
management programmes of the company because once they become involved the
employees will not resist but instead will participate in the changes that will
be undertaken.

Facilitation
and Support- Some employees will resist the changes because they are unable to
adjust with the new programmes implemented by the management to avoid
resistance the management must support the employees that are having a hard
time with the changes, establishing a support system will help and assist the employees
to adjust quickly.

Negotiation
and Agreement- Coca-Cola should talk and negotiate with employees, and during
the talks the management must discuss the incentives they will receive once
they accepted the changes in the management strategies.

Manipulation
and Co-option- if the other approaches didn’t work inviting the union leader to
participate and be a representation in the change process will aid in
overcoming the resistance to change.

Explicit
and Implicit Coercion- if all approaches didn’t work then the last step would
be forcing them to accept the implemented changes and threaten them that if
they will not comply the employees will lose their jobs. 

 

Conclusion

Change
management is basically defined as the formulation and assimilation of change
in a methodical process. The major objective of change management is the
introduction of innovative means and systems in the work organisation. This can
similarly be compared to the application of certain information technologies in
the company or the adoption of new marketing strategies. Businesses must
normally undergo change in order to evolve to a higher level of for instance,
stability, management or production. Appointing a new head officer, for
example, can greatly enhance his subordinates based on his management
principles and personality.  From these discussions, we may conclude that
change management is a process in which all companies undergo. This is an
important procedure because it enables the organisation to make decisions that
will be advantageous and beneficial to the company. In addition, organisations
that are open to change are generally more successful compare to companies that
resist it. In a globalise market, new technologies and procedure are emerging
rapidly, in order to keep up with this progress a company must be willing to
adapt to management changes. The international, as well as, the local market
has a very stiff competition, therefore in order to be on top change management
must be utilised by companies. Coca-Cola is one of the best examples of
companies that utilised change management efficiently and have yielded positive
results. The evidence is the dominance of Coca-Cola in the soft drink industry
not just in Asia but all over the wor

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Outcomes

In
short, what Future Search facilitates is far greater enthusiastic collaborative
action leading to your organisation achieving that which was previously unable
to be achieved.

At
its ideal, it leads to the following 7 distinct outcomes:

1.
An abundance of new ideas and initiatives

2.
Total agreement on the key areas

3.
Working teams around each area

4.
A vision for each area

5.
Action plans for each area and the initiative as a whole

6.
Engagement and enthusiasm

7.
Fast implementation

The
principles can be applied to literally all meetings, but in one structured
meeting of the “whole system”, you can achieve enormous organisational change.
Such meetings can focus on any systemic issue including:

·        
Developing a Shared Purpose
or Vision

·        
Developing a Strategic Plan

·        
Implementing an Existing
Plan

·        
Managing Organisational
Growth

·        
Sustainability

·        
Culture

·        
Building Common Ground
Amongst Management, Staff, Unions, Customers, Suppliers and the Community

·        
Meeting the Challenges of
Tight Budgets and Resources

·        
Improved Quality or
Productivity

·        
Designing or Redesigning
Process

·        
Improved Workplace Learning
and Performance

·        
Improved Customer Service