Contemporary Organization Evaluation: P&G with Global Business Units
Information: In today's fast-paced and global community, most organizations are faced with constant change. Research contemporary organizations that are currently responding to a significant change within the industry, such as disruptive technology; state, government, or industry regulations; environmental constraints; judicial or legislative rulings; etc.
Assignment: Choose one organization from your research that has recently responded to major change, or is currently responding to change. Write a paper (1,100-1250 words) discussing how well the organization is responding to the change dynamics. Include the following: Please address ALL of the following below:
Describe the organization and the change to which it is responding.
Discuss the degree to which the change has been disruptive and how the organization has responded to the dynamics created by this change.
Evaluate the strategies the organization used in its change plan and determine the level of success the organization experienced with the strategies.
Determine the effect the change had on stakeholders, and to what degree stakeholders have resisted. Assess how well stakeholder resistance was addressed.
Evaluate the overall implications the change had on interdepartmental collaboration.
In your opinion, how well did the leaders of the organization respond and prepare for the change? What worked and what did not work with the strategies they implemented?
What modifications would you suggest the leaders of the organization make in order to better address the change dynamics? What additional strategies would you recommend to assist the organization through this change?
Please only use current references within the last 5 years.
Contemporary organization evaluation
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Introduction and response to changes
Procter & Gamble (P & G) is a global manufacturer and marketer of consumer goods and the conglomerate sells mass merchandising brands and also has a hygiene and health care division. The company announced changes in the management structure in 2018 to be fully rolled out in 201. P & G has mostly operated the Global Business Units, Sales and Marketing Organizations, and Corporate Functions units in the last two decades (Al-Muslim, 2018). The proposed changes focus on six sector Business Units (SBUs) operating more independently compared to the previous ten units. The company’s revenue growth has been stagnant even after improved productivity and increased advertising and promotion. A reorganized operating structure then is one way to improve the performance and regain the company’s market share.
The disruptive effects of change and dynamics
The proposed changes would mean that P &G would change the management structure allowing the company’s sector business units operate more independently. The 3-way matrix structure was previously chosen to reduce the redundant costs and support the vast operations. From July 1, 2019, the proposed changes will result in the SBUs managing the product services. (Al-Muslim, 2018) Six unit chiefs were appointed to oversee the SBUs and streamline the operations (Al-Muslim, 2018). There would be no layoff associated with the changes, and the company would improve its flexibility and agility. The changes have already been implemented with managers tasked with increased performance of the various products and services.
Strategies in the change plan
The management consulted professionals to determine the need for changes in operations. Activist stakeholders are some of the most vocals stakeholders who sought changes to improve the lackluster changes. The employees were informed about the impending changes, and the appointment of SBU chiefs signaled a willingness to implement the changes fully. Rather than use rewards and punishment, the organization’s management emphasized a change plan, and as the employees were informed, there was a willingness to respond and adjust to the new changes. The shared goals of the organization are to improve performance and regain the market share after implementing the changes.
Embracing change from the top is an effective strategy in change management since it showed that the leaders were serious and willing to adapt to the changes. Clear communication and dialogue, the leaders’ attitudes and actions influence perceptions of other stakeholders about the need for changes (Rogiest, Segers & Arjen, 2015). Culture is embraced when the management supports the workplace culture practices, and if the management had shown reluctance to embrace changes, it was less likely that the change in strategy would be effective (Al-Haddad & Kotnour, 2015). Even as there were changes within the management ranks, the managers supported the changes, and these made the strategies’ successful in the short-term and long-term.
Effect of changes on stakeholders
Implementing changes affects the stakeholders, both the internal and external stakeholders, and the effect can either be positive or negative, affecting stakeholders like the managers, employees, and customers. For the managers, the most impactful change is the change in the management style and roles. Since managers make decisions that affect operations and strategies. These stakeholders were required to be more effective in the workplace. The management's strategic initiatives are potentially effective as there is increased focus on improving productivit...