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The environment, people and the system in this world is constantly evolving. Just as the popular quote mentioned "change is the only constant in this world," change and transformation is very apparent from the changes in the physical attributes and characteristics of an individual, to the changes in the environment and surroundings. Just like the people and the environment, organisations also undergo transformations; the change could be either massive or minimal. Often times change happen within the management of the organisation; in order to keep up with the competition, at the same time, improving the efficacy of the human resource. According to MacCalman and Paton (2000) individuals who went home winners and on top have the common characteristics of effectively handling the changes in the situation. Change in management is a series of actions that corporations whether small or big must undergo, the cycle of the business will not be complete if it did not undertake change management.
The competition for the Coca-Cola Company is for the national and international competition. Also, competition for the leading competitors such as the PepsiCo is highly considerable. Since Coca-Cola Company deals with food and beverage products, the market has shown several growth of competition within the local and the international area. Many had been trying to put up an industry that will satisfy the needs of people in eating. Basically this paper aims to identify the management of change that an organisation might adopt in order to remain competitive.
Actually, Coca-Cola Company is still in a speculative stage in the industry, the company has faced many ups and downs regarding its strategy. But the company will still be finding ways on how to be creative to compete internationally and to level up or even be at the top among the leading competitors.
Coca-Cola Company will be analysed through the use of different theoretical concepts in change management. This paper presents a report for the senior management of Coca Cola Company wherein it identifies the agenda for a management of change program. The paper contains preparation for change wherein it includes vision for the renewed organisation, direction and scope of change, and speed of change. In addition, a proposed action will also be made in this paper. Basically, Coca-Cola Company is one of the most popular companies in the world. Aside from the fact that it is also one of the oldest corporations that was able to withstand World War II and further changes in the market over the past years. The truth still remains that it is one of the most famous brands of Cola in the world (The Coca-Cola company case n.d.). The Coca-Cola Company was able to defy the obstacles that happened; the company was able to utilised change management as competently as possible to survive the hindrances.
Prescription for Change
Vision for Renewed Organisation
Coca Cola is one of the leaders in softdrinks, all over the world. However, due to the stiff competition in the market and there are a number of new players emerging, the Coca Cola company must maintain its rank as one of the top competitor of Pepsi in the market and changes and reorganisation in the management must be done. The main objectives of the Coca Cola are the following:
Assure the individuals working in the organisation to understand the vision of the company.
Develop a working environment wherein there is a possibility to persist the vision.
Educating the people within the company on ways in which they could collaborate efficiently their own units across the lines of business.
Enhance the decision-making and problem-solving process of the employees and the teams in the company.
Create and develop procedures for streamlining the operations, rebuilding teams and opening new communication lines.
Remove the barriers in the organisation that become hindrances in the productivity and profitability of the company.
Increase the trust between the people working in the organisation regardless of their position.
The new mission of the Coca Cola Company is the redefining of the organisation through the recruitment for change teams by the middle and upper-level managers wherein the teams are going to be responsible for the creation and implementation of the re-engineering process. The main objectives of these teams are to restructure the organisation, to remove the inefficient, fragmented and costly work processes through downsizing, and create an environment wherein the managers could manage, as well as, perform the transactions.
A comprehensive systematic analysis must be done in order to succeed and accomplish the new objectives and mission of the company, in addition the analysis aids in the increase of trust between the individuals working in the organisation. The examination of the practices and the objectives of the organisation must be engaged, as well as, the efficiency of the evaluation, clarity of the role of every individual in the organisation must also be undertaken.
With a number of new players emerging in the industry wherein Coca Cola has a huge market share the company needs further development of the employees in order to achieve the capabilities necessary for the success of the business. Coca Cola needs to function at the highest level of effectiveness and the human resource department plays a very significant role in the management of change and the implementation of the change management programmes of the organisation.
The new vision of Coca Cola is to provide the most efficient combined distribution centres through reducing the expenses in the operations and better management of the daily delivery of soft drink in different distribution outlets.
Direction and Scope of Change
In order to address the changes in the Coca Cola, the scope must be identified, at the same time, the path of the Change. The scope of the management of change programme in Coca Cola Company is the Coca Cola business all over Hong Kong. The change in the Coca Cola businesses in Hong Kong will be in the strategies of management of the managers, as well as, the employees. The route of the change is towards the workforce and not on the products since the company has already established a reputation of delivering fresh products in the market.
Speed of Change
The predicted speed of change in all of the Coca Cola business in Hong Kong will be from 10 months up to three years due to the fact that the information, negotiations and implementation of the changes in the human resource will take a big amount of time because it there are plenty of Coca Cola business organisation all over Hong Kong. At present, Coca-Cola has an ownership venture in 24 bottling joint-ventures--in most cases indirectly to two Hong Kong-based companies that it partially owns: Swire Beverages and Kerry Group. Coca-Cola also functions a completely foreign-owned activity that creates drinks concentrate in Shanghai and is the straight joint-venture partner in akin facility in Tianjin. Aside from the changes in the upper management of the company, changes will also be implemented on the regular workers. Application the new management programmes is also predicted to take three to six months due to the expected resistance of the members of the workforce.
In identifying the leveraging changes in the Coca Cola Company a Force Field will be used. Force Field Analysis according to Bass (2008) is a technique created by Kurt Lewin in order to analyse the forces that are opposing to change.
The current state of the Coca Cola stores in Hong Kong is pretty good and it is still one of the top distributors of softdrinks in Hong Kong. However, if it will be compared to other Coca Cola convenience stores in the world the inventory, marketing, and performance of the personnel is not equal to other Coca Cola company. The company hopes to increase the efficiency of the marketing and inventory, as well as the productiveness of the workforce through implementing management change programmes. If the changes will be applied within the management and businesses, Coca Cola projects that there would be an increase in the output of the company. On the other hand, if changes will not be implemented the inventory, performance and other marketing would deteriorate and continuously be inefficient, therefore there is a possibility that the competitors might be at par or even overtake the market.
According to the presented case, the main emphasis of the Coca-Cola is to meet the needs of their customers with excellent product manufacturing and product distribution. The company's change management is very fragile since they predicted that there are some marketing challenges in the near future that they need to face.
In order to address the changes in the Coca Cola Company, there should a concrete identification of problems present in the company. The employees and other stakeholders of Coca Cola Company will be affected of this so-called "radical changed". Basically, the route of the change is towards the workforce development and not on the services since the company has already established a reputation of delivering good services in the market. The change is also about the possible financial problems that the company may face in the near future. From this discussion, the following figure shows the force-field analysis of the change management procedures suggested to the application of change management within Coca Cola Company.
Figure 1. Force-Field Analysis
From this force-field analysis, it can be seen that the computed forces to change is much higher compared to the forces against change. Force-field analysis is very vital in change management (Bass, I. 2008). Meaning to say, the plan is quite logical with respect to possible opposition. Actually, change management is basically defined as the formulation and assimilation of change in a methodical process (Kotter, J. P., & Schlesinger, L.A. 1979). Meaning, the major objective of change management which is the introduction of new systems in the work organisation i.e. total change project is normal to companies that are engaged in change management. This can similarly be compared to the adoption of new marketing strategies. Businesses like Coca Cola Company must normally undergo change in order to evolve to a higher level of for instance, stability, management or production. And since Coca Cola Company wanted to have an extreme development or a 'radical change", the CEO of Coca Cola may include changing the company's mission, reforming business operations, application of new technologies, major group efforts, or adoption of new programs. Usually, the organisation is encouraged on settling on change management due to external influences, usually termed as the environment (Nickols, 2004). Thus, change management can alternately be defined as the response of different business to changes brought about by environmental influences in which organisations have minimal or absolutely no control over.
Perhaps the space between the new organisation design and implementing it into actuality is the whole coverage of organisation change and development. As mentioned in the introduction, people are adaptive to change. However, certain skills must be present from the initiators of change so as to successfully implement their project. Thus, managers need to have the necessary abilities not only on detecting what needs to be changed but also how to introduce the change effectively. Thus, in this review of related literature, some of the approaches, common problems, influences, case studies and best practices in change management will be analysed in relation to the research problem.
Renewing Systems and Structures
The organisational form of Coca Cola is the Entrepreneurial start-up or the simple structure. According to Mintzberg (1992) the structure is described as having a little or no technostructure at all, it also has few support staffers, restrained division of labour, minimal differentiation in the work place, and a small hierarchy in management. Moreover the behaviour within the organisation, particularly in the convenience store is not that formalised wherein it utilises minimal planning, training and liaison devices.
In the new organisational form of Coca Cola businesses in Hong Kong, it would be Machine Bureaucracy. According to Mintzberg, the machine bureaucracy is an organisational structure wherein there is a clear configuration of the design parameters wherein it consistently held up researches it includes specialised routinely operating procedures, formalised procedures in the centre of operations, propagation of rules and regulations, proliferation of formalised communication throughout the company, dependence on the functional basis for tasks wherein it needs group work, comparatively centralised power for decision-making, and a complexly detailed administrative structure with sharp differences between the line and staff. In this form of organisational structure Coca Cola will be able to monitor the efficiency of the performance of the workers because there would be standard procedures and more elaborate structure of management.
Routines and Rituals- the Coca Cola, Inc. does not have any formal training with its work force particularly within the convenience stores. There are no specific routines emphasised in the organisation, and just like most companies, the managers and workers come in to the work place to perform their job and the cycle goes on. This behaviour does not encourage any worker to perform their job better and if ever changes will be implemented within the organisations it will not look peculiar. The new training programs that will be implemented will focus on customer service. In industries like in Coca Cola customer service is a very important aspect in sustaining the loyalty of the consumers. The routines can easily be changed due to the fact that there is no particular routine in the work place.
Organisational Structures- the management within the stores have limited hierarchy and the overall setting is informal because there are no strict rules and regulations within the convenience except for the usual the punctuality and absenteeism. The management structure in Coca Cola encourages collaboration with Coca Cola but competition with other organisations in the same industry. The power structure within Coca Cola is democratic because prior to the changes in the management sectors that will feel the impact of the changes directly will be educated and informed and also their opinions will be heard.
Control Systems- In Coca Cola the most closely monitored is the distribution of softdrinks. The company does not emphasise punishment and rewards to the employees, apart from the usual which is the bonus for rewards and removal from the job for punishment. There are few controls in the workplace and the control in the workplace is associated with the history of the company wherein it provides the customers fresh products.
Power Structures- the main beliefs of the senior management of Coca Cola is that the success of the company is due to the efficient evaluation of the challenges in the workplace, as well as, the market and quickly respond to the opportunities. The power is distributed to three management teams, the senior leadership team, vice presidents and the division leadership. The dominant culture of the organisation is its being practical and open to the opportunities given to them. The changes in the management programmes can be implemented easily because the proposals of the company are attainable and do not have a negative impact on its employees.
Resistance of the employees in the change management programmes in any company is inevitable 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 transformations within the company before implementation to prevent incorrect information that will surround the work area.
Participation and Involvement- the employees must be involved with the planned changes in the management programmes of the company because once they become involved the employees will not resist but instead will participate in the transformations that will be undertaken.
Facilitation and Support- Some of the 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 aid the employees to quickly adjust.
Negotiation and Agreement- Coca Cola should talk and negotiate with the 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 did not 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 did not work 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.
Change management is a process wherein all sectors in the society undergo. It is a significant process because it allows the organisation to create decisions that will be beneficial to the employees and the company. Moreover, organisations that are accept changes are usually 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. Coca Cola needs change management programmes particularly with its marketing, inventory, and performance of the employees in order to keep up with the competition that rapidly becomes a huge threat in the organisation. Addressing changes particularly in the human resource will directly benefit the company because the performance of the employees will either aid in the improvement or failure on the performance of the company. Investing in the human resource is important because they are the front liners of the organisation.