3SCO – Supporting Change within Organisations
Introduction to E.ON
E.ON UK is a leading energy company and is amongst the big 6 energy suppliers. It was established in 2002 through the acquisition of Powergen and now has the second largest electricity generator in the UK and owns the second largest distribution network in the UK. E.ON UK employs over 10,800 staff and has 97 sites including customer contact centres, offices, wind farms, technology centres, training academies and power stations. E.ON UK is part of E.ON who is the world’s largest investor-owned energy service provider, where its headquarters are based in Germany. E.ON UK has over 8 million customers and has a vision to be our customers’ trusted energy partner. Why E.ON needs to change and how change affects the organisation “Organisations need to remain competitive in order to survive” (Martin, Whiting & Jackson, 2010, p308). In order to maintain a competitive advantage, E.ON must react to the internal and external factors affecting the company and change appropriately. In terms of external pressures the PESTLE tool is very useful for analysis, as detailed by Leatherbarrow, Fletcher and Currie (2010, p9) which includes the following major drivers of organisational change; Political, Economic, Social, Technological, Legal and Environmental.
In relation to E.ON, one of the most significant of the PESTLE factors is Technological. As the energy industry is highly competitive, particularly between the big 6, E.ON must ensure they are keeping up with technological advancements in order to remain competitive. The technological advancement of Smart metering – a clever piece of kit that allows the electricity and gas meters to talk to each other, to their Smart Energy Display and directly to their energy supplier, has had a significant impact. This will have great advantages for both the customer, such as an end to estimated bills, and E.ON, such as being able to switch a customer from monthly...
References: 1. Martin, M., Whiting, F. & Jackson, T. (2010) Human Resource Practice. 5th Edition. London: CIPD.
2. Leatherbarrow, C., Fletcher, J. & Currie, D. (2010) Introduction to Human Resource Management. 2nd Edition. London: CIPD
3. Tannenbaum and Schmidt (1958) cited in Leatherbarrow C., Fletcher, J. & Currie, D. (2010) Introduction to Human Resource Management. 2nd Edition. London: CIPD
4. CIPD Practical Tool ‘Approaches to Change: Building Capability and Confidence’ (2010) accessed at http://www.cipd.co.uk/hr-resources/practical-tools/change-approaches-building-capability-confidence.aspx 08.06.2014
5. Lewin (1951) cited in Leatherbarrow, C., Fletcher, J. & Currie, D. (2010) Introduction to Human Resource Management. 2nd Edition. London: CIPD
6. CIPD Factsheet ‘Change Management’ (2014) accessed at http://www.cipd.co.uk/hr-resources/factsheets/change-management.aspx 08.06.2014
7. Kubler-Ross (1960) cited in Martin, M., Whiting, F. & Jackson, T. (2010) Human Resource Practice. 5th Edition. London: CIPD.
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