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Managing Change atCoxs Container
Company (C.C.C)
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TableofContents
Abstract...............................................................................................................................3
Introduction........................................................................................................................3
Analysis...............................................................................................................................4
Alternative Solutions......................................................................................................5Participation/Role Definition................................................................................................5
Steering Group..........................................................................................................................5
Communication.........................................................................................................................6
Structural Change....................................................................................................................6
Recommended Action...................................................................................................7
Conclusion.........................................................................................................................8
Bibliography.......................................................................................................................9
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Abstract
Organization face problems from time to time various from management decisions to human
management and financial issues, some manufacturing organization faces major issues in
implementing changes. This process (change management) has many angels to deal withand problem solving depends on the organization point of interest.
In this paper to consider Outline and analyze the problems confronting Coxs Container
Company (C.C.C) in the short and long term and offer some suggestions and
recommendations for the organization.
Introduction
Change management is a systematic and continuous process in organizations approach to
deal with change, both from the perspective of an organization and on the individual level,
many definitions can be found 'the coordination of a structured period of transition from
situation A to situation B in order to achieve lasting change within an organization'.
(BNET Business Dictionary). To make it easier; Change management is the process, tools
and techniques to manage the people-side of business change to achieve the required
business outcome and to realize that business change effectively within the social
infrastructure of the workplace. (Change Management Learning Center).
In Coxs Container company C.C.C the threat of evolution of the business environment and
increased competition growth in the size of the business with no changes in organizational
structure; derived Chairman Harold Cox to implement a new strategy, hiring new senior
management, based on analysis to increase profitability of the company and solve varied
problems in C.C.C. Those changes are in organization structure, teams, leadership and
individual people.
Burnes (2009) identified the two dominant managing change approaches as identifying the
strengths and weakness of organizations, and situations designed to address. Burnes (2009)
also states that both planned and emergent changes have benefits both practically and
theoretically but they neglect other approaches. So a framework built to fit change is a better
option and making it flexible for future changes goes even further.
Every company has a growth cycle as to Greiners Organizational Growth Model, within
C.C.C the growth and creativity had led to crisis of leadership and through the years with new
market entries new technologies, internal problems without the knowledge of Harold Cox.
Reasons for Changes and Problems facing Cox's Container Company (C.C.C) were because
the plan for retirement of MD Harold Cox, Margin Reduction, lack of training, no consultancy,
communications between departments, Cultural, Market Competition, Erica Wilson survey
entirely on her own without sharing employees nor the department and managers. In addition,
to the new employees John Straw, Eric Long and Simon Pedder analysis, to implement a new
budgetary and control system, that had some reasons made this implementation not
successful.
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All of the above reasons led to two questions:
Are people ready to change?
What is the best strategy for change?
Changes need some initial steps, Kotter's 8-Step Change Model Implementing Change
powerfully and successfully1,
1: Create Urgency
2: Form a Powerful Coalition
3: Create a Vision for Change
4: Communicate the Vision
5: Remove Obstacles
6: Create Short-term Wins
7: Build on the Change
8: Anchor the Changes in Corporate Culture
Analysis
Cox Container Company C.C.C has a national and international large sales with about 380
people and 2/3 of them works in one department (Production Department). Most of them are
from ethnic minorities, with lack of new fresh experience, this had effect the growth of the
organization internally this lack of professional capabilities and new leadership techniques;
had slow down the learning and stay behind in developing with the new globalization era. The
company seems has some difficulty with integrating the departments. As the production
department has been supervision by one of the oldest employee in C.C.C ( Mr. Abdul Aziz)
had made this department with less innovation. In addition the creation of internal rivalries
among the old managers like Abdul Aziz and new managers like Straw and Pedder after the
wise decision from the founder Harold Cox to improve the company, has given rise to an us
VS them in organization (Harris & Ogbonna, 1998, p.106).
Erica Wilson attempts to implement a new full-integrated system within all departments pose
problem knowing that production manager ( Abdul Aziz) is supported by major workers within
C.C.C, and this change agent that she try to create has failed to get the trust of abdul Aziz
and hence failure to develop a new strategy.
Furthermore, Straw's (new general manager of C.C.C) meeting to announce the new system,
was greeted by no interest of major managers. As Grint (2000) suggests, without backing,
change lacks real leadership; "without followers there are no leaders". The absence of Abdul
Aziz from Straw's meeting worsens the likelihood of this change being successful. Abdul Aziz
is the leader with an influential figure amongst the majority of C.C.C.'s employees. This act
and unwillingness to attend those meetings reflect to a feeling of threaten by this new change
(Huczynski & Buchanan, 2001: 599).
Such change design and operation of an organisation's information system, will affect the
distribution of intra-organisational power" (Bariff & Galbraith, 1978: 15). And it should be
1http://www.mindtools.com/pages/article/newPPM_82.htm
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taken in transformation in the current way of employees thinking, and behaviour of
individuals.
The C.C.Cs new change agents must devise an effective operational strategy to cope up with
resistance to change as described by Lewin in his Force Field Analysis (Lewin. 1951,
p.102). Within C.C.C., where external appointments are rare, suspicion is often aroused.
"People do not usually like 'their' territory entered by someone they do not know, and whose
motives are probably unclear to them" (Mullins, 1999: 819).
Alternative Solutions
C.C.C could Instead of the new managers coming up with systems to improve performance
independent of the department heads, they could include them in coming up with cost
measurement and management systems for which the department heads would be
responsible. This would ensure that the autonomy currently enjoyed by the workers is not
lost, however the informal system of operation would be replaced by a system that requires
accountability from those responsible for the various tasks.
Participation/Role Definition
Amongst the list of drivers relevant to C.C.C., new personnel (i.e. Straw, Long & Pedder),
changing markets and increased competition, all apply. Restraining forces against this
change (Lewin, 1951) include loss of status (for Aziz), habit/fear of the unknown (little change
for many years), strength of culture (strong traditions, long-serving employees), rigidity of
structure (functional organisation) and strongly held beliefs (role of production department,
recruitment policy, etc.) For the change to be successful, as Lewin (1951) defined, these
forces must be balanced, by process of "quasi-stationary equilibrium", the first stage of which
is for restraining forces to be removed.
The benefits for change should be clearly explained to employees (i.e. because of a tougher
market place - the change will safeguard the business and employment). More specifically,
for Aziz his crucial role in implementation should be explained and his involvement sought
(addressing issue of power.
Steering Group
The leadership of Harold Cox was sufficient for the organisation during its entrepreneurial
stages. C.C.C could look to improve its crisis of leadership through improving its corporate
governance by setting up a board or a steering committee,. Duck (1993) suggested
employment of a "Transition Management Team (TMT)". This board made up of executive
and non-executive directors. This will enable integration at the strategic decision making
level which can be cascaded down to the operational level of the organisation. This could
also eliminate costs that can arise due to departments not taking advantage of economies of
scale and efficiencies that could arise from integration.
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Communication
Relationships between team members must be addressed (particularly Aziz and Straw). At
C.C.C. Straw expresses his exasperation at the existing relationship with Aziz. As Belbin
suggested, the main problem this causes is that the problem is often overlooked - an
oversight that proves costly in the future. By use of a neutral yet influential third party (e.g.
Cox) Straw and Aziz must meet and overcome their differences. In doing this openly both
individuals' criticism as Harrison (1972) suggested, could be put to constructive use.
However, further secrecy (such as that involved in the formulation of the change plan), will
tend to "eat away at the strength of an organisation and then to erupt when it is most
dangerous to organisational health" (Harrison, 1972: 128). At C.C.C. failure to address the
issue of relationships between Aziz and Straw (and their respective departments) will have
the obvious impact that the new system fails to be implemented successfully and the
business suffers, under threat of advancing competitors
Structural Change
The current functional structure, where expertise are grouped, has caused individuals (e.g.
Aziz) and departments (e.g. central administration) to become too focused on their own goals
and activities. A product-based structure has the advantage of increasing responsibility and
accountability so that should problems occur in the future they can be tackled directly, rather
than departments aimlessly blaming each other. Ultimately, this also removes the inter-
departmental rivalry currently evident at C.C.C. and ensures all departments play a more
active role in achieving the goals of the organisation. In a product-based, structure "markets,
not processes, get the employees' undivided attention" (Mintzberg, 1979: 127). A product-
based structure also adds greater flexibility and permits a faster response to change
(arguably, a slow response to changed market conditions has put C.C.C. in this position).
However, no single organisational structure is perfect and no one best suits C.C.C
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Recommended Action
Recommend the use of Leavitts Diamond, which suggests that changes in one variable may
have a knock effect on other variables within the organization. For example, improved
technology could have a knock on effect on say people, as there may no longer be need
individuals, which may have knock on effects on tasks performed as these may also have
been replaced by technology leading to a need for a change in the organizational structure.The external environment also needs to be looked at as reduced margins could be due to
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changes in the tax regime on C.C.Cs products. The external environment is important as
globalization has resulted in competitively priced products from places like China which not
only pose a competitive threat but could offer cheaper outsourcing alternatives for C.C.C
which could improve the companys profitability.
The managers together with the appointed facilitator need to do an information gathering in
addition to PEST analysis as well as a SWOT analysis to provide a starting point to address
the problems at hand. This gathering of information that addresses internal and external
factors should create the sense of urgency, that is needed to start the process of change as
proposed by Kotter.
Suggest In the short-term, concerning change implementation, adoption of a steering
committee or TMT (Duck, 1993) and more visible leadership to back the change. If this effort
is to be successful, it is essential to gain support, which will only be achieved by virtue of
involvement and persuasion by a team of influential individuals (i.e. management team &chairman). This team, also to include representatives from throughout the organisation,
should then collaboratively implement the new system by taking into account the needs of
each department in addition to those of the organisation.
In the long-term a change in organisational structure is required if C.C.C. are to avoid similar
problems repeating themselves. The suggested structure would address issues of
departmental rivalry and ensure all departments work collaboratively to achieve
organisational goals, removing the over-specialist approach currently evident. This process
would require the backing and involvement of C.C.C. chairman and managers who can
communicate clearly the reasons for the change to other employees.
Conclusion
C.C.C can be profitability and distinct position in a sophisticated market of drastic
competition by adapting a radical, professional and innovative approach towards modifying its
prevailing organizational structure. A fine change management blend of influential and
motivating leadership with effective monitoring of operational ele (Belbin) (Mullins)ments at
every level can pace the ground for C.C.Cs success in the long run. C.C.C has to work out
the inadequate arena of communication prevailing in it to develop an ample intimacy among
the personnel for guiding their individual actions into collectivism and teamwork.
(Marchington)
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