In the business they are in, they amass crushing market share. Expanded the recall to the rest of the world O Good? Peppier Caught in a Lie At first the excuse given by Peppier officials was that the contamination occurred because an employee mistakenly used cleaning fluid containing benzene to clean the reduction-line machinery that fills bottles for North America Traces of benzene were now found in bottles of water in Holland and Denmark, poor Peppier was now caught in a lie Peppier now finally admits that benzene naturally occurs in Peppier water but the problem was now visible because the workers forgot to replace the filter Can It Get Worst? They are not only marketing for the rich and famous, they want to be an everyday thirst quencher.
Resistance to change is very common in organizational life. Employees are wary of change because of the associated uncertainties. Organizational change involves adapting new technology, restructuring, and new management style.
Although change is meant to achieve positive results for an organization, it does not always achieve better outcomes. Ajax Minerals, a mining company that has poor management-labor relations, is faced with potential threats from a rival company.
The leadership team saw the impending challenge by the potential entrant and resolved to do something about it. However, Ajax employees failed to detect the potential threat.
Besides, supervisors and other workers were only interested with their wages and the overtime pay. Due to fear and the discomfort with uncertainty, employees and supervisors at Ajax Minerals have resisted change.
In addition, employees are concerned that the new changes may have negative effects on their interests.
Given that the company had in the past made poor management decisions that led to massive job cuts, the current employees are worried that the same could befall them if change was effected. The employees at Ajax are comfortable with the current wages and overtime, and they would prefer to just get by.
Usually, employees find it easier to support change when they are certain that their interests are not threatened. In addition, employees would only be supportive of changes that they perceive to offer them more benefits.
Ajax dealt with this resistance by establishing interactive sessions with employees and senior management. The management saw the need to engage employees in planning about implementation of change. Identify two 2 sources of resistance to change in the Perrier case study and describe how the organization dealt with each type of resistance.
Despite Perrier being a high profile brand in the water industry, the company is facing major challenges arising from disputes between the management and workers. While the management is keen to restructure the company in line with modern trends, the workers union, CGT, is determined to maintain the status quo.
He argues that it would be morally wrong for Perrier to take such action since it sources its raw materials from the region where its workers come from. As such, CGT holds that Pierre has a duty to retain a bloated workforce to the local community as a way of giving back.
Pierre approached the resistance to change by employing confrontation tactics with the workers union.
Compare and contrast how management diagnosed and approached change at the two 2 companies and indicate which company dealt with resistance to change in a more effective manner.
The management reasoned that there was a need to make a compelling case for change before rolling out any specific strategies. This was a break from the past where the management implemented new changes without involving employees. Ajax management realized that failure to involve employees in planning and change management contributed to the subsequent resistance.
During the interactive sessions, the management used stories about other companies that had experienced similar situations as Ajax and had suffered losses due to their inability to respond effectively to emerging competitive forces.
This approach helped to narrow the gap of point of views between the management and the staff. According to CGT, workers were not bothered by the performance of competing brands.
In fact, the union attempted to introduce the moral angle to the debate, arguing that Pierre had no moral right to sack workers since they came from the same region where the company sourced its raw materials.
By incorporating employees in planning, they became part of the change process by owning the process. On the other hand, the approach used by Pierre increased resistance to change.
By failing to strike a common point of view with CGT, the management could not achieve the desired change O Connor, Consider a situation as a consultant with Ajax Management. Propose two 2 adjustments that should be made to improve its change strategy and provide a justification as to why those adjustments would improve the effectiveness of the strategy.
The change management at Ajax should have been accomplished through a top-down approach. This approach is ideal for an organization implementing structural change. Top-down approach is necessary because the administrative improvements and expertise required originates at the upper and middle levels of the organization.
As such, the real champions of structural change are the supervisors and top managers. Since low-level workers have little expertise or interest in administrative procedures, Ajax should have used supervisors to educate the low-level employees about the change.This is the case at Perrier, where an identification of the real problem is essential.
When using this approach it allows including the employees in the problem definition as well as potential solutions.
arlene Austin Management 13 November Case Study- Problems at Perrier (Chapter 6, pg ) 1.
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