Change is the only permanent thing. Emerging market trends, customer preferences, nature/force/direction of competition and technological advancement requires organizations to change themselves if they want to survive. Change though is imperative for survival can backfire when not managed properly. Responding to change is important but managing the change is equally important if not more important.
1.2 Case highlights
Sunflower Inc. operates in the United States and Canada in its twenty-two regions. The company distributes national as well as local brands and packages some items under private labels. The organization encourages autonomous management style because of local tastes and practices. The company identifies a problem in the form of high profit variation across the regions. A post is created as Director of Purchases and Pricing to work toward the standardization. Agnes Albania the Director of Purchases and Pricing tries to implement change but which ultimately encounters bitter resistance. The case can be seen in accordance with the change theory as follows:
Wide variation in profits across various regions.
Highly profitable regions were sometimes using lower-quality items, even seconds, to boost profit margins.
National distributors were pushing hard to increase market share by cutting prices and launching new products.
Regional centers as they need to follow a standardized model.
Organization’s management practice from autonomous to centrally controlled style.
Organization’s structure as new position titled Director Purchases and Pricing was created.
Work practice as instead of independent decision making central level decision making was proposed.
Sunflower’s policy and procedure manuals.
New position created as Director of Pricing and Purchasing
Resistance to change surfaced.
From Lewin’s theory the process of change has three phases and they are unfreezing, changing and refreezing and they have...