Rolls Royce

Topics: Rolls-Royce, Organizational culture, Rolls-Royce Limited Pages: 11 (2898 words) Published: March 23, 2013
Executive Summary
Set a management plan that can make Rolls Royce become more competitive and effective under the global economy background Scope
Management and the four new plans of Roll- Royce Company
Main points discussed
• Organization structure
➢ The traditional hierarchical structure: advantages & disadvantages ➢ Suggestion: make a new structure & strength
• Organization culture
➢ Analysis values, norms and artefacts & examples
➢ Suggestions in changing organization culture
• Change management
1. Likely reasons for resistance to change
➢ Uncertainty and insecurity to change
➢ Threat to status and skill
2. Likely reasons for resistance to change
➢ Motivate all levels of employees
➢ Strengthen the education and communication
• Other relevant factors
➢ Financial report and budgetary control is essential for the plans ➢ Managing marketing is also very import to get the global marketing Conclusions
Rolls-Royce could get huge of profits if they change the organization and management which we suggest under the current situation. Recommendations

Mission: design a change management plan
Objective: To design a plan in term of analyzing current organization structure, culture in light of the recent changes in the global economy.

In 1904, Charles Rolls and F. Henry Royce decided to create a company in England together which the name called “Rolls Royce”. The company was mainly producing engines and luxury cars. In 1906, they produced Silver Ghost and then, they became the best car company. During the First World War, Rolls Royce produced a new aero-engine that supplied important power to allies. Therefore, they became a successful airplane company. (T.A. Heppenheimer, 2008) Recently, Rolls Royce announced to invest £300m to open 4 factories about nuclear power and aero-technology and It may also create 800 jobs. (Guardian, 28 July, 2009)

Purpose of report:
The purpose of this report will introduce a management plan which includes organization structure, organization culture, changing management and other relevant factors to ensure Rolls Royce become more effective and successful, especially under the recent changes in global economy.

Organization structure

Current structure:
Organization structure is the way in which it divides its labor into distinct tasks and then achieves coordination among them. (David Boddy, 4th, P319)

• Rolls-Royce uses a hierarchical structure to manage the company. ← It is a traditional and effective structure for Rolls-Royce to supervise and develop the business. ← Roll-Royce has a clearly defined organization structure within which operational management has detailed responsibilities and levels of authorization, supported by written job descriptions and operating manuals.

• It belongs to a pyramidal structure and there are a lot of layers between the top and the bottom in the company. ← The Board includes a Chief Chairman, a non-executive Chairman, four other Executive Directors and seven non-executive Directors. (Management,31 Oct 2009) ← The top layers set up the policy and make decision. The bottom layers would follow the guideline, so they can achieve the company objectives.

• Each division has managers for supervision and the staff in each division needs to follow the manager’s decision.

• Advantage of hierarchical organization is that employees know their objectives clearly in their job task and carry out efficiently. Furthermore, every staff specialize their job. ← For example, engineers are responsible for designing and developing engine. ← HR staffs are responsible for recruiting and selecting people. ← Divide of labors and specialization is applied so that it can increase the working efficiency and reduce operation cost. However, at the same time, disadvantage of hierarchical is...

References: Alan, J. 2008. The independent: Top UK firms announce hundreds of job cuts. Available at:
Boddy, D
Carter McNamara, MBA, PhD. Published by Authenticity Consulting, LLC, 2000. . Copyright 1997-2008. Available at:
David, G and Stanley, B
Earth Times. 2009. Rolls-Royce shines with increased 2008 profit amid gloom. Available at:
Falkirk Council
Graeme.W, Guardian, 28 July, 2009. Rolls-Royce announces £300m UK factory plan, Available at:
Rolls Royce: Engaging employee
Rolls Royce: services. 2009. Available at:
Stephen P.Robbins, Management 9th Edition, P263.
T.A. Heppenheimer, 2008, Rolls-Royce and Its Aircraft Engines, available at :
Times Online 2009
TimesOnline. 2009. Rolls-Royce to cut 2,300 white-collar jobs. Available at:
The half-year report 2009 presentation and appendices
John P. Kotter and Leonard A. Schlesinger, 1979, Adapted reprinted by permission of Harvard Business Review, Six Method for Dealing with Change.
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