Change Management: ExxonMobil Case Study

diverseness instruction ExxonMobil Case Study substitute is that permanent ingest of our life. Life of individuals and brasss be evolving ever since their creation. Modern companies atomic number 18 in a state of cultural flip. From exerciseing more or less wholly to solving specialised tasks, we ar now required to progress to in an interdependent way. team upwork is brisk.These trades require that we dislodge what we expect from the co workers. We get down to assortment the values we highly believe. Values want aw arness, teamwork, tolerance, responsibility and averation ar paramount just as flexibility and depart readiness.Team work work up in imperative that we turn project team sort of of specific tasks. Therefore, our daily lives argon becoming project oriented. Baekdal, Thomas, Change focus HandbookOverviewWhat is Change Management?Change focus is a organised or louse upm to transitioning individuals, teams, and g all overnments from a menses state to a want future state. Wardale, Dorothy. 4 components of the module 2009The authentic definition of Change Management includes both organisational diversify management servees and individual shift management models, which together ar employ to manage the flock side of trade.Change Management is be essentially linked to oganisational Change which is Organisational convince is the process by which organizations unravel from their present state to some desire future state to ontogenesis their effectiveness. Organization Theory, Design, and Change by Gargonth R. JonesOrganisational miscellany whitethorn be formally specify as an Organisation-wide effort to enhance the effectiveness of an Organisation by streng thuslying, modifying, or replacing the culture, varianting, applied science, task, and human processes through and through with(predicate) the application of planned interventions with or without the assistant of im literal agents. People Change Mana gement in Power DistributionAll diversifys embrasure with three Organisational components which constitute the Organisational culture. Those three components areThe historical and political exploitation of the confederation.The management and organization of the guild.The flock who work for the comp whatsoeverThe historical and political evolution of a company will prepare a square bearing on its acceptance of permute. The important factors are Base or origin of company, values of company, image it same(p) to promote, traditions and norms practiced by individuals and company policies.Changes will impact the enjoyments of management. These interchanges consist of structure and operation of organization, style of leadership, role of senior management, and effect of change on workforce, their acceptance and willingness to reside remedial measures.Most of the issues in change management are passel oriented. both decision on change impacts the pack. All cautions should be exercised in the people oriented changes. Typically with any change people expect a reward pay hike, promotion or other type of recognition. figure carefully the impact of change in all(prenominal) job it affects. Change experience ManagementImportance of Change ManagementChange Management is proactive validate focused on preventing incidents and problems by effective planning.Some of the benefits are uniform planning for changeConsistent planning in case of unsuccessful mortal of changeCommunication with appropriate ploughshareies before change occursApproval have from appropriate parties before change occursReduction in incidents and problems caused by ignorant changeTime spent on preparation and prevention earlier than fire fighting and downtime.Model of Planned organisational ChangeWhen organizations are caught flat footed, failing to anticipate or respond to parvenu take ins, management is at fault. Change undersurface be managed by observing extraneous trends , patterns and needs, managers use planned change to help the organization to adapt to outdoor(a) problems and opportunitiesFour events turn up the change sequence national and external forces for change existOrganization managers monitor these forces and become awake of a need for change andThe comprehend need triggers the initiation for change, whichIs then implemented.How each of these activities is handled depends upon the organization and managers styles.Forces For ChangeForces for organizational change exist both in the external environment and internally indoors the organization.environmental ForcesExternal forces take its root in all environmental sectors, including client, competitors, applied science, economic forces, and the international arena. infixed ForcesInternal forces for change arise from internal activities and decisions. If goal of rapid company growth is set by diadem managers, internal feats will have to be changed to meet that growth.Steps For Effect ive organizational ChangeThe quartette steps for organizational change process are as follows measure out the need for changeInitiate changeImplement change rate the changeAssessing the need for the changeThe external and internal forces translate into a perceived need for change within the organization. Managers sense a need for change when there is a cognitive process gap-a disparity between real and desired performance levels. The performance gap may occur because current procedures are non up to standard or because a spick-and-span belief or technology could improve current performance.Managers in every company essential be alert to problems and opportunities, because the perceived need for change is what sets the stage for subsequent action that creates a peeled carrefour or technology. Big problems are easy to spot. Sensitive monitoring systems are needful to detect gradual changes that fire fool managers into thinking their company is doing changes slowly, because managers may fail to trigger an organizational response.Initiating changeAfter assessing the need of change the next crucial step is to initiate change which is true part of change management. This is where the thinkers are developed.SearchSearch is a learning process round current misadventures inside or outside the organization that mountain be used to meet the perceived need for change. Search typically unfolds existing companionship that trick be applied or pick out within the organization. Hiring of experts, consultant is a very important aspect of such(prenominal)(prenominal) search.CreativityCreativity is the development of novel solutions to the perceived problems. Creative individuals develop idea that can be adoptive by the organization. Creativity can be designed into organizations. Companies or departments within companies can be form to be creative and initiate changes.Idea Champions And New-Venture TeamsIf creative conditions are successful, new ideas will be generated that must be carried forward for acceptance and implementation. This is where idea champions come in. The formal definition of the idea champion is a person who sees the need for and champions productive change within the organization. Champions are passionately perpetrate to a new product or idea despite rejection by othersImplementing ChangeEffective Implementation of perceived change is the well-nigh vital part of Change Management. Creative culture, idea champions and new-venture teams are ways to help the initiation of new ideas. One frustration for managers is that employees often seem to live on change for no apparent reason. To effectively manage the implementation process, managers should be aware of the reason for employee put upor and be prepared to use. Techniques for obtaining employee cooperation are bulwark To ChangeIdea champion often discover that other employees are unenthusiastic round their new idea. Members of a new-venture group may be surpri sed when managers in the regular organization do not attendant or approve their foundations. Several reasons for employee immunity areSelf-Interest.Lack Of understand And Trust.Uncertainty.Different Assessment And Goals.The reasons for resistance are legitimate in the eyeball of employees affected by the changes. The vanquish procedure for managers is not to ignore resistance but to diagnose the reasons and design strategies to gain acceptance by users.The strategies for overcoming resistance to change typically involve two approaches the analysis of resistance through the force field technique and the use of selective implementation manoeuvre to outgo resistance.Force Field Theory of Change Developed by Kurt LewinIts the process of determining which forces drive and which resist a provided change. To implement a change, management should analyze the change forces. By selectively removing forces that restrain change, the parkway forces will be strong enough to enable imple mentation. As res grooming forces are reduced or removed, behavior will shift to incorporate the desired changes.The theory underlying organizational development proposes three distinct steps for achieving behavioral and attitudinal changeunfreezing,changing, andrefreezing.In the first step, unfreezing, the diagnostic stage of organizational development in which participants are made aware of problems in edict to increase their willingness to change their behavior. Diagnosis is done by change agent. This diagnosing helps determine the extent of organizational problems and help unfreeze managers.The second step, changing, a step in the intervention stage of organizational development in which individuals experiment with new work slur behavior. There the change agent implements a specific plan for gentility managers and employees.Refreezing, a step in the backing stage of organizational development in which individuals acquire a desired new skill or attitude and are rewarded for it by the organization. 5selective Implementation TacticsThe other approach to managing implementation is to adopt specific tactics to overcome employee resistance. The adjacent five tactics have be successfulCommunication and Education. Communication and education are used when fast information about the change is needed by users and others who may resist implementation. Education is especially important when the change involves new technical knowledge or users are unfamiliar with the idea.Participation. Participation involves users and potential resisters in calculative the change. This approach is time consuming, but it pays mangle because users understand and become commit to the change.Negotiation. Negotiation is more formal manner of achieving cooperation. Negotiation uses formal dicker to win acceptance and approval of a desired change.Coercion. Coercion means that managers use formal power to force employees to change. Resisters are told to accept the change or lose rew ards or even their jobs. Coercion is necessary in crisis situation when a rapid response is urgent. trespass Management Support. The palpable support of top management likewise helps overcome resistance to change. Top management support symbolizes to all employees that the change is important for the organization.Evaluating The ChangeThe stand up step in the change process is to evaluate how successful the change effort has been in improving organizational performance. Using measures such as changes in market share, profits, or the ability of manages to meet their goals, managers compare how comfortably an organization is performing aft(prenominal) the change with how well it was performing before. Managers also can use benchmarking, comparing their performance on specific dimensions with the performance of high-performing organizations to decide how successful the change effort has been.Types Of Planned Change now that we have explored how the initiation and implementation of change can be carried out, let us look at the different types of change that take place in organizations.The types of organization changes are strategy, technology, products, structure, and culture/ people. Organizations may innovate in one or more areas, depending on internal and external forces or change. In the rapidly changing toy industry, a manufacturer has to shut in new products much. In a mature, competitive industry, production technology changes are adopted to improve efficiency.In the diagram, the arrows connecting the types of change show that a change in one part may affect other split of the organization a new product may require changes in technology, and a new technology may require new people skills or a new structure.Technology ChangesA technology change is related to the organizations production process-how the organization does its work. Technology changes are designed to make the production of a product or help more efficient.How can managers encourage tec hnology change?The general rule is that technology change is bottom up. The bottom-up approach means that ideas initiated at lower organization levels and channeled upward for approval. Lower level technical experts act as idea champions-they invent and champion techno synthetic changes. Employees at lower levels understand the technology and have the expertise needed to propose changes.Managers can facilitate the bottom-up approach by designing creative departments. A loose, flexible, decentralized structure provides employees with the freedom and opportunity to initiate continuous improvements. A rigid, centralized, standardized structure stifles technology innovation. Anything managers do to involve the grass roots of the organization-the people who are experts in their parts of the production process-will increase technology change.New-Product ChangesA product change is a change in the organizations product or service output. New-product innovations have major implications for a n organization, because they often are an outcome of a new strategy and may define a new market.The introduction of a new product is difficult, because it not only involves a new technology but also must meet customers needs. Companies that develop new products ordinarily have the following characteristicsPeople in marketing have a dandy understanding of customer needsTechnical specialists are aware of fresh technological developments and make effective use of new technologyMembers from key departments-research, manufacturing, marketing-cooperate in the development of new product.These findings mean that the ideas for new products typically originate at the lower levels of the organization just as they do for technology changes.One approach to new product innovation is called the naiant gene linkage model. In this model people from research, manufacturing and marketing departments meet frequently in teams and task forces to share ideas and do work problems. Research people info rm marketing of new technical developments to learn whether they will be good to customers. Marketing people pass customer complaints to research to use in the design of new products. Manufacturing informs other departments whether a product idea can be manufactured within costs limits.This teamwork required for the horizontal linkage model is a major component of using rapid innovation to beat the competition with speed. morphologic ChangesA morphological change is a change in the way in which the organization is designed and managed. Structural changes involve the hierarchy of authority, goals, morphological characteristics, administrative procedures, and management systems. Almost any change in how the organization is managed falls under the category of structural change.Successful structural change is accomplished through a top-down approach, which is distinct from technology change (bottom up) and new products (horizontal). Structural change is top down because the expertise for administrative improvements originates at the middle and upper levels of the organization. The champions for structural change are middle and top managers. Lower-level technical specialists have piffling interest or expertise in administrative procedures. If organization structure causes negative consequences for lower-level employees, complaints and dissatisfaction alert managers to a problem. Employee dissatisfaction is an internal force for change. The need for change is perceived by higher managers, who then take the initiative to propose and implement it.The top-down process does not mean that coercion is the best implementation tactic. Implementation tactics include education, participation, and negotiation with employees.Top-down change means that initiation of the idea occurs at upper levels and is implemented downward. It does not mean that lower-level employees are not educated about the change or allowed to participate in it. stopping point/People ChangesA culture/pe ople change refers to a change in employees values, norms, attitudes, beliefs, and behavior. Changes in culture and people pertain to how employees think these are changes are in mindset sort of than technology, structure, or products. People change pertains to just a a couple of(prenominal) employees, such as when a handful of middle managers is sent to a training course to improve their leadership skills. Training is the most frequently used tool for changing the organizations mindset. A company may offer training programs to macroscopic blocks of employees on subjects such as teamwork, listening skills, quality circles, and participative management. some other major approach to changing people and culture is organizational development.Organizational organic evolutionOrganizational development (OD) is the application of behavioral science knowledge to improve an organizations health and effectiveness through its ability to cope with environmental changes, improve internal rela tionships, and increase problem-solving capabilities. Organizational development improves working relationships among employees.The following are three types of current problems that OD can help managers address. nuclear fusions/Acquisitions. Culture differences should be evaluated during the acquisition process, and OD experts can be used to motionlessness the integration of two firms.Organizational Decline/Revitalization. OD techniques can pass greatly to cultural revitalization by managing conflicts, fostering commitment, and facilitating communication. booking Management. Conflict can occur at any time and place within a healthy organization. Organizational development efforts can help solve these kinds of conflicts.OD ActivitiesA number of OD activities have emerged in recent years. Some of the most popular and effective are as follows.Team-Building Activities. Team building enhances the cohesiveness and success of organizational groups and teams.Survey-Feedback Activities. Survey feedback begins with a questionnaire distributed to employees. Employees are engaged in problem solving based on the data received from questionnaire.Intergroup Activities. These activities include retreats and workshops to improve the effectiveness of groups or departments that must work together.Process-Consultation Activities. Organizational development consultants help managers understand the human processes within their organization and how to manage them.Symbolic Leadership Activities. This approach helps managers to use the techniques for cultural change, including open statements, ceremonies, and slogans.ReferencesBaekdal, Thomas, (2006). Change Management Handbook.Technology and immediacy of information (on-line) available http//www.wikipedia.comBecta (2003) useable http//www.becta.org.uk/tsas.Daft, Richard L, (1997). Management. Florida Dryden Press.Change Management Report by Zulfiqar,Shamsullah,Shahzad,Rizwan 2009Case Study EXXON MOBIL familiarity ProfileCompany registerExxon Mobil fraternity is the second largest integrated anele company in the world, trailing only BP p.l.c. The company is involved in wide range of oil and gas related activities such as exploration, production, transportation, and marketing in more than 200 countries. Exxon Mobil is a major manufacturer of basic petrochemicals, such as olefins, aromatics, and polyethylene and polypropylene plastics. The company is in operation(p) 4000 service stations under the brand names Exxon, Mobil, and Esso. Mobil Corporation and Exxon Corporation are merged in 1999 to form Exxon Mobil.Exxon Mobil Corporation Business Information, Profile, and History http//companies.jrank.org/pages/1494/Exxon-Mobil-Corporation.htmlixzz0cW28yLUsThe Merger of Exxon and Mobil twenty-first CenturyIn celestial latitude 1998 Exxon agreed to bargain for Mobil for about $75 billion in what promised to be one of the largest takeovers ever. Merger was necessitated by reducing Oil prices and prevailing A sian economic crisis. By Merger both companies foresaw annual Profit benefit of $ 2.1 Billion.Based on 1998 results, the proposed Exxon Mobil Corporation would have combined revenues of $168.8 billion, making it the largest oil company in the world, and $8.1 billion in profits.As discussed earlier Merger/Acquisition are an important part of organizational development (OD). Exxon Mobil has utilized this tool effectively to maximize their profits and reduce operation cost and overheads.Exxon Mobil in the 21st CenturyThe integrations of Mobil into Exxon resulted in delivery of cost saving and two severalize corporate cultures. Exxons strength was always reflected in finance and engineering season on contrast Mobils strengths lie in marketing and deal-making. By pairing of both giants Exxon Mobil resulted in cost saving of $4.6 billion. These saving were used to computer storage the companys growth by internal means, and expanded their Oil particle accelerator output. amid 1999 a nd 2004 after successful merge, Exxon Mobil earned $75 billion in utmost profits and generated $123 billion in cash.As Exxon Mobil prepared for the future, perhaps the most significant event on the horizon was a change in leadership, environment policy and confluence geo political situation challenges in parting such as Middle East, North Africa, and Caspian Sea. However, most of significant is meeting challenges posses by decade old environmental policy of non acceptance of honey oil House gases (GHG) effect on temper. This Organizational Change is discussed in discernment in next part of report.EXXONMOBIL AND CHANGE MANAGEMENT ON shorten OF CLIMATE CHANGEOld Guards and Organization Resistance toward Climate ChangeExxonMobil released its 2005 Corporate Citizenship Report (May 2006) and its report on Tomorrows Energy (February 2006). Both make clear that Exxons fundamental business approach and thinking on climate change had not changed. The company firmly believes that oil i s the future and that concerns about climate change do not merit meaningful investments in clean dexterity and substitute fuels.In these two reports, ExxonMobil acknowledges that human activities have contributed to the increased concentrations of greenhouse gases (GHG) and that this accumulation poses risks that may prove significant for rules of order and ecosystems. The company declares that these risks justify actions now, but the selection of actions must consider the uncertainties that remain. Exxon then goes on to describethe complexities of climate sciencethe limits of climate knowledgethe limits of current climate modelsthe uncertainty of projectionsExxonMobil declares that even with many scientific uncertainties, action is still justified. However, by emphasizing the remaining points of uncertainty rather than the scientific consensus that has emerged on the human role in climate change, ExxonMobil continued to take a deliberative approach that casts climate change as a long problem rather than a priority for near-term action.Despite their rhetoric, ExxonMobil was not taking the actions needed to address the financial and competitive risks posed by climate change due to inherent organizational resistance to change. Leadership shrugs off from taking peremptory actions and taking lead toward this grave issue.ExxonMobil operates on the precondition that oil and gas will continue to represent a large percentage of the energy mix, whereas renewable energy sources will remain minimal.In contrast, the private venture capital community has begun investing heavily in clean energy technology, as have ExxonMobils competitors. ExxonMobil continues to lag behind. ExxonMobil lags behind competitors like BP and Royal Dutch Shell on low-carbon leadershipExxonMobils nearly only focus on oil and gas has placed it behind competitors like BP and Royal Dutch Shell, which have committed billions of dollars toward the development of low-carbon technologies that they intend to build as new profit centers for their companies.Climate Change ExxonMobils Change schemaA newly published report (Dec. 2008) by ExxonMobil titled Responding to Environmental Ethics lamentable from Petroleum to Renewable Energy for the 21st Century. As title indicated an organizational shift in environment policy is happening at Exxon Mobile. Exxonmobil admitted link between Oil Gas and climate change in following words ExxonMobils focus on petroleum and gas products, especially those that are combusted to extract energy, has played a key role in promoting climate change through an enhanced greenhouse effect. The burn of petroleum and gas has increased the concentration of carbon dioxide in the cash dispenser to levels that are rapidly thaw the planet, leading to severe consequences for the world economy and most of the Earths natural features.Exxonmobil inactiveness in past regarding Global warming is also addressed in said report ExxonMobil has traditionally been speculative of climate science. It wasnt until recently that the company decided to accept that climate change is largely attributed to human activity and that something must be done about itA perceived Change is envisioned by Exxonmobil. This remarkable change in Exxonmobils outlook toward climate related issues happened due to following few theoretical Factors,Environmental FactorsAs discussed earlier in our report, environmental Factors such as clients, competitors and changing technology are basis of any Organizational change. Same is true with Exxonmobils new Climate Strategy. Exxonmobil moved towards change after realizing that competitors such as BP Inc., Royal Dutch Shell and Chevron are taking lead on climate related issues concerning Oil Gas Sector. Public awareness vis--vis global warming increased significantly over the few years which also contributed toward Exxonmobils new climate strategy.Internal FactorsInternal Factors such managers, top management and shareholder s also play a decisive role in this Change strategy. Shareholders worried that competitors investment in alternative renewable energy may cause lower future growth.Exxonmobil adopted knowledge as the basic search tool assessing change. Exxonmobil stated in their 2008 report said In general, the companys goal is to provide energy close to the world to improve quality of lives while minimizing environmental impact and accompaniment communities. Second, the company assesses any issues identified in the first step through information from various sectors, including non-governmental organizations, academia, financial institutions, and employees. Then it develops a list of material areas that the company will focus on based on its analysis. In 2007, these material areas wereEnvironmental Performance,Workplace,Corporate Governance,Transparency and Human Rights, andCommunity DevelopmentImplementation of Change StrategyAfter assessing perceived change, next logical step for Exxonmobil is i nitiation of Change Implementation at organizational level. Exxonmobil Called this The nullify of Carbon Era. To save environment damage petroleum combustion must be curtailed significantly in this century by taking action to fight climate change. Exxonmobil has decided to reinvest its business to remain one of the worlds most significant companies and ensure it viability. Exxonmobil is to invest in existing alternative technologies that are emissions-free. This will mean entering fields to provide reliable energy to the world and improved its tarnished image.ExxonMobil has invested in improving its energy efficiency, increasing its co-generation qualification by 12% in 2005 and working to reduce gas alight(p) in Nigeria and elsewhere. It has also supported research into producing more fuel-efficient internal combustion engines, although the extent of that support is unclear.The company states that technologies like carbon capture and sequestration, enthalpy production and use, solar, and biotechnologies all require fundamental breakthroughs in research to overcome current barriers to cost, performance, safety, and public acceptance before they could enter into widespread use. cobblers lastExxonMobil claims that the risks from climate change justify action now. Exxonmobil which is world leader in petroleum production has assesses the change based on theoretical effecting factors, initiated perceived change and implemented change for betterment of mankind.Our study concludes that the Exxonmobil has followed theoretical wheel of change and now successfully implementing the Change, thus transforming its global image.Biblographyhttp//www.fundinguniverse.com/company-histories/Exxon-Mobil-Corporation-Company-History.htmlBaekdal, Thomas, (2006). Change Management Handbook.Technology and immediacy of information (on-line) available http//www.wikipedia.comBecta (2003) Available http//www.becta.org.uk/tsas.Daft, Richard L, (1997). Management. Florida Dryden Press.J ones, John Aguirre, DeAnne. (2004). 10 Principles of Change Management Tools and techniques to help companies transform quickly.Responding to Environmental Ethics Moving from Petroleum to Renewable Energy for the 21st Century by Carlos Rymer. December 11, 2008.http//companies.jrank.org/pages/1494/Exxon-Mobil-Corporation.htmlhttp//www.fundinguniverse.com/company-histories/Exxon-Mobil-Corporation-Company-History.htmlOrganization Theory, Design, and Change, 5th Edition by Gareth R. Jones.