Organizational Development and Change

Topics: Layoff, Colombo, Sri Lanka Pages: 13 (3828 words) Published: May 23, 2015
Table of Content:

Executive summary…………………………………………………………………………2 Report to the CEO
Problem 1: downsizing the 65 employees into 55………………………………….4

Suggested options and recommendations for the downsizing issue………………..5

Problem 2: Shutting down the Kandy plant and moving the cadre to Colombo……7

Suggested options and recommendations for the issue…………………………..…9

Problem 3: Modernization of the operational process at Colombo…………………11

Suggested options and recommendations for the issues related to……………...….12 Modernization of the operational process at Colombo

1. Executive Summary:

Module 17 of PQHRM is mainly focused on Organizational Development and how it can be changed. Organization development is an ongoing, systematic process of implementing effective organizational change. OD is known as both a field of science focused on understanding and managing organizational change and as a field of scientific study and inquiry. It is interdisciplinary in nature and draws on sociology, psychology, particularly industrial and organizational psychology, and theories of motivation, learning, and personality. Although behavioral science has provided the basic foundation for the study and practice of OD, new and emerging fields of study have made their presence felt. Experts in systems thinking and organizational learning, structure of intuition in decision making, and coaching (to name a few) whose perspective is not steeped in just the behavioral sciences, but a much more multi-disciplinary and inter-disciplinary approach, have emerged as OD catalysts or tools. Organization development is a growing field that is responsive to many new approaches. According to this case, Nuran Food Products supply processed bottles foods to a leading super market chain for distribution. There are two plants, one in Colombo and other one in Kandy. NFP is quite a typical, old fashioned company. There are many reasons to call it as a typical, old fashioned one. NFP uses old technology and simple labour intensive processes. Most of production employees have a limited knowledge on English language. Most of the employees have not passed GCE O/L exam.

Operators are managed by traditional supervisors who are authorized to make all decisions and issue orders. But since the employees are very loyal to NFP, the staff turnover rate is less than 10% and the business is running in a smooth and good manner. With this growth, management of NFP decided to modernize the plant. They thought that processing will be much more efficient with one plant doing more work. Final decision was to close down the older plant which is located in Kandy. With the modernization of the plant, it requires production operators to possess sophisticated skills to operate new processing equipments including reading manuals, operating computerized equipment and performing a wide variety of other tasks. Suggestion from the vendor was to organize the employees in to self managed teams. This set up only requires 55 employees. But presently total number of employees from Kandy and Colombo are 65. They needed to reduce their staff by 10 and bring new culture to the organization with modern equipments and modern technology. This situation can create so many problems since it’s a known fact that change is difficult. The new situation can create so many disturbances to the peaceful ongoing process of NFP, so it should be handled in a very careful manner. So that company will be able to achieve the targeted state, set goals and plans. This case study is a complete analyze of all the implications of the above modernized Nuran Food Products Company. This report will provide the various options with recommendations to work in this kind of a situation.

2. Report to the CEO:

Organizational change is an important issue in organizations. It is a process in which an organization optimizes performance as it works toward its ideal state. Organizational change occurs as a...
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