Organizational Change Issues
Change is never an easy process. For years, researchers and theorists have attempted to develop frameworks for change to help individuals accept the need for change. Consider the scenario below about change in a large organization. Then, answer the associated questions related to organizational change.
Due to the impact of COVID-19, a large manufacturing company recognizes that organizational culture changes are necessary. Furthermore, process related changes must occur. The organization has experienced a decline in sales from early 2020 to present and recognizes that if changes are not made, many issues may arise. Reham, the CEO of the company, recognizes that organizational changes are needed.
Reham has proposed that the company reduce the size of the workforce by 20% until sales increase. The organization currently employs many full-time manufacturing employees, but only employs a handful of office workers. To further market the products provided by the company, many office workers are working 10-20 hours of overtime, per week, to assist with marketing efforts. Needless to say, office personnel are very overwhelmed with tasks and responsibilities.
At a three-hour meeting, Reham noted that a 20% reduction among manufacturing employees would be made within the next month. She then went on to state that three new positions would be added to the home office to ensure that the workload was not as intense for office personnel.
During the meeting, many individuals recognized Rehamâ€™s point and said that they would support her decision to make these workforce changes. Unfortunately, Rehamâ€™s colleague, Alan (the Director of Manufacturing), became furious about this change and mentioned that he did not understand why Reham was trying to ruin the companyâ€™s culture.
Based on the scenario above, answer the following questions:
Why do you believe that Alan is having a difficult time recognizing the change proposed by Reham?
What are the implications associated with Alan, the Director of Manufacturing, not supporting this change initiative?
Although Reham is the CEO, and has ultimate authority, how might obtaining additional feedback from other organizational leaders assist Alan in further understanding the rationale for this change?
Before Reham pushes this change forward, what short-term and long-term impacts should she consider?