Case Study Perrier Chapter 6

Topics: Management, Change management Pages: 3 (893 words) Published: May 6, 2015

1.) Identify the key elements of the resistance to change described in this situation.

At the beginning the relation between the management and the employees was good. The employees had a 35-hour week and earned an average annual salary of $ 32.000 which was really for this part of France. But everything turned and the resistance to change began with the plan to cut 15 % of workforce and other decisions with Nestlé. Lack of communication and the company’s inability to inform the employees of what changes affected production at Perrier, the company made excessive changes and introduces a series of changes. So the employees felt unsure, if they would still have the required skills to continue to work for the company. Perrier has made quite a fair amount of changes in a short period of time and they will need to be aware that some may not agree with the change because of possible disadvantages and might not work to their full potential. Most of Perrior’s employees did not think the changes were necessary for the organization’s growth. The latter change was considered as the lack of conviction that change is needed. There was also the ‘Perceived Negative Effect on Interest’ – this resistance to change will be affected by people’s perceptions of the likely effect of the change on their interests; a term that can cover a wide range of factors including their authority, status, rewards, opportunity to apply expertise, membership of friendship networks, autonomy and security. The employees at Perrier were concerned with the implication of the change for themselves and how it may affect their own interests, rather than considering effects for the success of the business. When Perrier planned to cut 15% of its workforce, there was an uproar from CGT. To make it more worse, Perrier’s management purchased cases of a competitor’s latest beverage, Badoit Rouge, and placed it throughout the company cafeterias. For some workers it was a sign of provocation....
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