Process Implemented In Shell Pakistan Management Essay

Process Implemented In Shell Pakistan Management EssayThis chapter discusses the variety show way process utilizeed in Shell Pakistan. It in any case highlights the issues of necessity to ex spay, the risks grimaced during the transformation and the effectiveness of change prudence. The behavioral responses and attitude of stakeholders towards change counsel in the industry have in any case been covered in the report with a comprehensive analysis on the features that have helped or hindered the changed process within Shell. The findings face uped here(predicate) atomic number 18 mostly based on the research conducted through 20 interviews includes some(prenominal) the face to face interviews and questions beingness asked through teleph one and recording feedback. I tried to interview people who be closely related to the topic of change in the business. In addition, twenty five questionnaires are distri saveed amongst employees as strong in order to understand the chan ge process that took place from converting from JD Edwards to glance over within the organization.4.2-Factors that resist changeOne of the most common problems which business executives face during implementing plan is the employee resistance to change. Such resistance could be in disparate forms like persistent reduction in output, increase in the number of die up and requests for transfer, chorine quarrels, sullen hostility, wildcat or slowdown strikes, and, of course, the expression of a lot of pseudo logical reasons why the change volition not work. altogether this actions can way out in a negative outflow or a reduced net worth of any organization. A survey was conducted by the author in Shell Pakistan to identify the most common factors from the employees which act as a resistance while adopting change. The approach adopted for this research was more direct as one to one session of interview was held with the individuals. The feedback received was mixed. The most commo n reasons for the resistance were as followsLack of communication between the centering and staff on change issueFear of losing the task after change is implemented is always thereFear or losing their job term and job security is also a concernToo much pressure and work load is tough to handle switch over of working surroundings and disruption in tillage is a concern.Conflicts of personalitiesBenefits are not communicatedOthersResults are illustrated below by using a pie chart and followings are the findingsSo harmonise to the results illustrated by the pie chart, it is clearly understood that the fear of losing and the concerns regarding job status and job security are suppose to be the biggest barriers for managing change. After that the benefits of change not being communicated properly, act as a resistance to change. Rest of the reasons identified through the survey were more linked to the human behaviour, like mental stress, personal conflicts, culture disruption etc4.3- N ecessity of change in ShellIn any organization managing change process, asks for planning before implementing the change step. Every organization has different circumstances and the change situation varies a lot but still there are few logical steps which could be utilize during change centering process. The process of change normally starts with a change Trigger. The change set off highlights the necessity of change in a specific organization. The change trigger included two types of events. These are the external and the internal eventsExternal EventsChanges in economic conditions (Inflation, GDP, Interest rates, etc)Changing laws and regulations, influencing the business cycleStrong competitive strategies from adversary and threat from a new entrant in the industryTechnology introduced, changes in Research and DevelopmentInternal EventsChanges in top level management giving rise to different operational strategies, changes in priorities, and new leadership styles.Introductio n of a new technology and having a changed working style and purlieuOpening more branches of business both in the same country and overseasIntroducing new diversified products or servicesThese triggers will push management to opt for change. The questions which is to be answered by management is if they really think change is required to improve the situation, or if it could be handled without implementing change.Shell being a international organization wanted to streamline standardize its processes around the cosmos. Prior to the use of SAP the organization had been using different ERP in different parts of the world like JD Edwards in Asia, Oracle in Australia etc. This made the operational reconciliation processes different but since the organization has the vision of standardizing simplifying its processes it prompted the top management to implement SAPAlso SAP had been customized for Shell is being implemented with the name of GSAP i.e. Global SAP. It helps the organizati on in simplifying operations standardizes its processes around the globe.In short, the following are the factors which pushed Shell to opt for change to accomplish their goals more efficientlySimplification of the operational process by removal of a lot of redundant activities, and get rid of activities which were not adding value to any product or service of shell.Standardization of processes across the Globe, this helped Shell in removing complexities which arose from using different systems.Cost chemise Saving with standardization of processes and removal of non value adding activities.Adapting to the latest of technology in the ERP World i.e. Use of SAP.Reducing the fixed overheads is helpful for any organization in terms of Cost Savings. In the case of Shell Pakistan, organizational restructuring resulting in reduced head count due to process simplification e.g. Prior to SAP implementation there used to be two General Managers for Supply Distribution for operations in Paki stan but at present there is only one General Manager for Supply Distribution who covers India, Pakistan Oman Dubai.4.4-Models dealing with resistance to changeThere have been many different approaches of managing the resistance to change. Below included are few models presented by different authors during their time which were used as a tool for managing the process of change. Kotter Schlesingers (1979) Presented a 6 step model which is used to reduce, eliminate or minimize the resistance. The following steps were suggested in this model for managing resistance.Education Communication The resistance is the result of ignorance, and in order to control this it was suggested that communicating the vision of change and the potential benefits will help the cause and control resistanceParticipation Involvement The idea is to get people involved in the change process and their participation mattersFacilitation Support Offering counselling services to those feeling stress and difficu lties is one major example of facilitate, support could involve discipline procedures, providing technical assistance etc.Negotiation and agreement match to (Economist, 2003) long before the economic slowdown of 2008-2009 the United Auto Workers Union some quaint pay rises and improved medical health care in response to agreeing for managements closure of plants. The General motors and Ford were in competition with non unionized Japanese subsidiaries, and required to improve their productivityManipulation Co-optation The resistance is controlled by the way information is presented or by a political processCoercion, Implicit overt This works best when the management is powerful, the change decision is enforced on the employees forcefully and they are left with no other option but to accommodate it. (BPP, 2008, P-402)Another model used for carrying out the change process was introduced by Kurt Lewin (1951), He presented a 3 stage model to explain the important steps to be take n while implementing change. Lewins concept about organizational change was based on the perspective of the organism metaphor. His model is widely used by managers in the industry. According to him an organization can go through three different stages during the process of change. Theses stages areUnfreeze Initiation Creation of the right milieuLewin has linked this process of change to the human behaviour and believes that motivation should be put before planning and implementing the change process. The unfreeze process defined by Lewin should start with breaking down of the existing status of organization and start building up a new environment. Unfreezing was the process which was used by Lewin to present a new approach in shape of force field analysis. A force field analysis is suggested by Kurt Lewin presented which helps in considerate of change in an establishment. According to nip field analysis a process of change in any organization is stuck in between two types of inf luencing forces (1) parkway force which is the positive force for change. The other force is the Restraining force which is an obstacle to change, so according to Lewin before the change process the forces are in equilibrium. Lewin also suggested that whenever the driving force is stronger compared to the restraining force, the equilibrium or the status quo will change. Making Sense of Change Management (2004, p.110). The figure below illustrates the work of Lewin on Force field Analysis. This is and example of an operating organization. Thomas (1985) said regarding the force field analysis that the model has been widely used in very different contexts but there is not link of this model to the overall strategy. Maslen and Platts (1994) used force field analysis and applied this to the manufacturing strategy.forceFieldAnalysisForce Field Analysis ModelChange Adoption, Supporting change to required stateLewin knew that change was a process rather than a one off event. He termed thi s process as transition. According to Lewin at this stage the people are unfrozen and moving towards a new beginning. He also suggested that at this stage people are also uncertain and fearful so this is also the hardest stage of the model as it is tough to convince people for change John B Miner (2004, p.110).Re-freeze borrowing strengthening to anchor the changeThe refreezing stage is concerned with establishing and maintaining stability once the change process has been implemented. The top management support is required in during this process. likewise that those sources must be identified which supports change and also the barriers supporting the revolution must be identified). The figure below shows the 3 staged model presented by Lewin.RefreezeUnfreezeChangeLewins Model of Change http//picsicio.us/image/58bf1359/Lewins work has been widely accepted and is more frequently used in the industry by management during the change implementation process. However the 3 staged model is not the only one used for managing change and Greminis 4Rs is another approach used in the industry. Gouillart and Kelly were Management Consultants and they describe the process of business transformation (major change) in four different stages. The material presented by them is known as Greminis 4 RsAccording to the framework a conversion process should establish a new corporate vision, bring in new opportunities for an organization and new ways of performing activities should be carried out. Gouillart and Kelly suggested that such a process will require four Rs to be present if it is to be successful.Gemini 4Rs is as followsReframingRestructuringRevitalizingRenewalReframingReframing will give rise to questions about the nature of the organization and what its reason for existence. Following elements should be present in reframingAchieving Mobilization Giving rise to the will and having desire to changeCreating a Vision Current status of the organization must be reviewed in de tailBuilding a measurement system Progress will be measured and compared against the set targetsRestructuringThis will start removing the non value adding activities from the organization. The fundamentals are to consider the organizational structure but it might also confront at cultural change. The activities involved in Restructuring areBuilding of an economic model This is to look at how the assets are organized and is more focused on the financial aspectsAligning the physical infrastructure with the long term plan.Creating value redesigning the overall work architecture in order to get to processes interact to take a crap valueRevitalizing This portion is concerned with exploring the new products and markets, and making sure a good fit with competitive environment. Activities will includeFocused on exploring new opportunities in marked.Inventing in new businesses and products.Using the knowledge to change the directions of rivalryRenewal This section talks about the procedur e of developing individuals, to make sure that their skills are aligned with the organizational requirements. Activities should includeBuilding a system for remuneration to focus on staff motivationIntroducing organizational learning to progress learning as competence within the organization4.20- Comparing JD Edwards and SAPBased on a study about comparing both the ERP solutions, it has been found that both have certain features, advantages and disadvantages in comparison to each other, allowing organizations to derive certain benefits based on which software is implemented.It has been noted that ERP vendors are now more focused on other elements of the organization as well such as supply chain and customer relationships as a result of which new modules and improved versions of existing modules have come into play. Both SAP and JDE have focused on these elements with the knowledge in hand that customer is the force focus within any business because this is how an organization runs .