Organizational Management
Organizational Management
Change is an essential component of the modern day corporate establishments. It forms the basis for organizations to align themselves to the prevailing trends in different industries. More importantly, change is an essential platform for organizations to remain competitive. This paper seeks to present a comprehensive change plan for PepsiCo. As one of United States most prestigious organizations, PepsiCo is a leading employer. However, the company faces different challenges such as environmental pollution, competition and corporate governance. Kotter’s 8-Step Approach would form an exemplary platform for organizational change in this company. Through this model, the company can address these challenges and thus streamline its operations.
Thesis: Kotter’s model is an effective framework for integrating change within an organization.
Company Overview
PepsiCo is a large American firm that specializes in production and sale of beverages. The firm also offers a wide range of snacks as well as foods. It is a multinational organization because it has establishments in different parts of the world. During the 2011 fiscal period, this company had revenues of more than $9 billion. Over the years, the company has made numerous acquisitions. These acquisitions are part of the company’s expansion strategy (Baldwin, 2012).Currently, the firm has a workforce of almost 300,000 employees. It is thus evident that most of the company’s operations are large scale. Despite the company’s relative success, it faces fundamental challenges in corporate governance. Attaining the relevant international standards of environmental safety is another challenge facing this organization (Griffin, 2011). Addressing these types of challenges requires a comprehensive approach. This approach will provide the necessary framework for change in the organization. Through the change process, the company can enhance its performance and also deal with industry challenges such as innovativeness. The change model for this organization must also consider different perspectives pertaining to innovative management.
Diagnosing the Need for Change
The performance of PepsiCo has not been as expected. Although the company has made a series of high profile appointments to its executive, there are numerous challenges facing the company. Firstly, the company lacks compliance for the international standards of environmental safety. Through its large scale production operations, the company causes environmental havoc. For instance, the company’s usage of water elicits concerns with leading environmental agencies such as EPA. The country already has insufficient freshwater resources (Baldwin, 2012).The extensive usage of this resource by the company is thus an environmental concern. The company’s workforce does not enjoy suitable working conditions in comparison to other companies in this industry. Although the company has revenues worth billions of dollars, the standards of employee morale are relatively low. This is a human resource challenge that requires a comprehensive approach. The company’s human resource framework also does not offer sufficient rewards to the workforce based on performance. The absence of such a framework has also been a contributor to the low levels of morale within the workforce (Griffin, 2012). The company’s framework for corporate governance has also not been effective. From the diagnosis, it is evident that the company has operational challenges as well as management issues. Kotter’s 8-Step Approach will form the framework of addressing these challenges.
Kotter’s 8-Step Approach
This model provides a systematic approach for solving organizational management challenges in a company. From the diagnosis process, it is evident that PepsiCo faces fundamental operational and management challenges. Although numerous strategies are necessary in mitigating such challenges, the 8-Step Approach is among the most effective frameworks.
Creating Urgency
According to John Kotter, this is the first step in the change process within an organization. It involves the identification of the necessary issues that need change within the organization. This step also encompasses the harmonization of company stakeholders towards the change process. In essence, this helps in providing adequate room for the inclusion of all stakeholders. Harmony also helps in creating sensitization about the need for change throughout the company. The change process involves everyone in the company (Forsyth, 2012).Consequently, it is vital to involve the company’s top executives as well as employees. Aspects such as dialogue help in enhancing the level of urgency for change in the company. For the purposes of this organization, it is vital to ensure that all employees understand the various challenges facing the company. For instance, the company faces strong competition from Coca-Cola Company. In order to attain its goals, the organization must compete effectively with such giants. It is also vital to ensure than everyone understands the implications of the change process. This will facilitate for a smooth process of implementing the various components of change. Creating the urgency for change is also essential in terms of securing cooperation from all parties. At this stage, it is also vital to highlight the various threats facing the company. Consequently, there will be some sense of urgency to mitigate such threats (Cameron, 2012).
Establishment of an influential Coalition
After creating the right sense of urgency, the second step in Kotter’s model involves the establishment of an influential coalition. It is vital to establish the main stakeholders who will help in steering the change process. In essence, it is vital to identify the relevant leaders for inclusion in the change process. The leaders should have a comprehensive understanding of the entire change process. These leaders must also show their support or commitment towards the change process.After identifying the necessary leaders, the next step involves emphasizing on teamwork. Teamwork is a critical aspect of the change process. This is because it forms an excellent framework for identifying and solving organizational challenges (Burnes, 1009). The teams would also help in spreading information about change in the organization. However, the teams should have balanced representation. For instance, the teams should comprise of members from different departments. Since the organization has numerous departments, it is vital to establish a change team that involves the different heads of department. The input of these professionals is essential in terms of streamlining the change process.
Creating a Vision for Change
This is the third phase of Kotter’s 8-Step Approach. In essence, this phase encompasses the establishment of the main concept of change in the organization. The vision for change in the organization should have an element of clarity. This is vital in helping the different stakeholders understand the implications of change in the organization. The vision for change at PepsiCo must conform to the company’s values (Griffin, 2011). These values are key pillars for the entire change process. Another critical perspective of consideration is the evaluation of the company’s position in the future. The current change process has substantial influence upon the company’s future prospects. If the results are positive, it is easier to convince the different stakeholders about the change process. It is also vital to establish an effective strategy for implementing the vision. Such a strategy identifies the resource needs for the change process. The coalition team from the previous stage should have an in-depth understanding of the organization’s vision. It is also fundamentally essential for the organization’s vision to align with the mission. This is vital in terms of creating uniformity within the company’s structure (Forsyth, 2012).
Communicating the Vision
All the employees and executive members of the company’s management team should fully understand the vision. This will enable them to work towards its attainment. At PepsiCo, all employees should have the vision of establishing the company as a market leader in the food and beverage industry. In order to attain such standards, it must offer high quality products consistently. Through such consistency, the company will also maintain a steady flow of revenues. Communicating the vision is also a vital element of internal marketing. This also helps in boosting the company’s image. In order to set the right tone for organizational change, the senior management executives should lead by example. Through this approach, all stakeholders will pursue similar goals (Cameron, 2012). Minor breakdowns in communications can undermine the effectiveness of the entire change process.
Mitigation of Obstacles
The removal of obstacles is also an essential component of Kotter’s model for change. Within an organization, there are numerous obstacles for change. Such obstacles have the capacity to undermine all operations in an organization. Resistance to change is one of the most predominant obstacles in organizations. This occurs when some employees are not supportive of the various aspects of change in the organization. At PepsiCo, resistance to change has been a stumbling block towards change in the past. Although the company has developed various strategies to deal with resistance to change, the obstacle is still evident (Burnes, 2009).
It is thus vital for the organization to establish a comprehensive framework for ensuring that all employees and management executives are open to the change process. Another perspective of consideration with regard to the obstacles for change pertains to resource availability. Without adequate resources, it would be difficult for any company to implement an effective framework for change. Human resources as well as financial resources are necessary for an effective change process, In order to deal with the resource availability obstacle, it is vital for the organization to establish an effective mechanism for resource allocation. This framework identifies the right priorities for change within the organization.
Additionally, resource allocation is essential in that it helps in minimizing the wastage of resources (Forsyth, 2012). Another obstacle to change pertains to management and leadership tactics. It is vital for the organization to have an effective framework for transformational change. This leadership model facilitates for an adequate environment of implementing the change process. If some leaders are not supportive towards the change process, they should not hold senior management positions. Similarly, it is vital to reward the personnel that shows commitment and contributes towards organizational change. This would serve as an impetus to other employees in the organization. Organizational policy might also serve as a stumbling block towards the change process. Some policies are so stringent that they perpetrate conventional styles of doing things in an organization. It is thus vital to replace such policies with frameworks that embrace change (Cameron, 2012).
Establishing short-term wins
This is another critical step of Kotter’s model for change. In essence, this stage encompasses the identification of the immediate benefits of the change process. The short term wins are essential stepping stones for long term goals. An example of short term wins for the organization is the enhancement of morale levels within the workforce. This is an objective that is attainable within a short spell. The short term objectives are also attainable because they do not consume a lot of resources. It is also vital to establish a reward program that recognizes the efforts of stakeholders who work towards the attainment of organizational objectives. The effectiveness of attaining the short term goals affects the entire change process (Burnes, 2009).
Building on Change
Although the short term benefits are indicators of long term perspectives, it is vital establish an effective framework for maintaining change. Consistency is a critical component of this step. The company must maintain the redevelop a comprehensive framework that focuses on all aspects of the change process. The structural proposals for change in an organization must be supported using adequate resources. During this stage, it is also vital to set long term goals (Griffin, 2011). Such goals reflect the company’s position in the future. The maintenance of a change mentality is another critical aspect of this stage. In essence, change must be incorporated into the organizational culture.
Integrating Change in Corporate culture
This is the final phase of Kotter’s model. It is involves the incorporation of the change process into the organization’s system. It is more or less an implementation phase of change. All departments of the organization must embrace change (Cameron, 2012). This extends from the productions department to the human resource department. It also serves as an excellent strategy of streamlining corporate governance in the organization. Through effective corporate governance, the organization will easily attain its goals. Additionally, the levels of morale within the workforce are better when the process of change is integrated into organizational systems (Forsyth, 2012). The corporate culture of any organization serves numerous purposes. Firstly, it is an excellent platform for enhancing the company’s image. It is also an effective way of ensuring that the company’s operations conform to industry operations.
Conclusion
Kotter’s model is an effective framework for integrating change within an organization. This statement is evident throughout the paper. PepsiCo is in need of structural and management change. This is because of the various challenges facing the company. However, Kotter’s model presents an effective framework for streamlining the change process. The company lacks compliance for the international standards of environmental safety. Through its large scale production operations, the company causes environmental havoc. The company’s human resource framework also does not offer sufficient rewards to the workforce based on performance. The absence of such a framework has also been a contributor to the low levels of morale within the workforce.The company’s framework for corporate governance has also not been effective. Harmony also helps in creating sensitization about the need for change throughout the company. The change process involves everyone in the company. Consequently, it is vital to involve the company’s top executives as well as employees. Aspects such as dialogue help in enhancing the level of urgency for change in the company.
References
Baldwin, C. J. (2012). Sustainability in the food industry, Hoboken, NJ: John Wiley & Sons
Burnes, B. (2009). Managing change, Upper Saddle River, NJ: Pearson Education
Cameron, E. (2012). Change management, Philadelphia, PA: Kogan Page
Forsyth, P. (2012). Managing change, Philadelphia, PA: Kogan Page
Griffin, R. W. & Moorhead, G. (2011). Organizational behavior: Managing people and organizations, Mason, OH: South-Western
Is this your assignment or some part of it?
We can do it for you! Click to Order!
