Transforming the Corporate Culture at Heinz Australia - Assignment Example

Case Study Name Class Unit Transforming the corporate culture at Heinz Australia 1 Draw on each element of the cultural web to discuss how the culture at Heinz Australia has changed and is continuing to evolve under Widdows’ leadership Strategic change is a major problem that faces firms. Using cultural web, it becomes easy to address the cultural change which is a strategy driven. Cultural web is a tool invented by Gerry Johnson to help in achieving change (Stanford, 2010). Organisation culture refers to how things are done in an organisation (Kotter & James, 1992). Using the tool, it is possible to discuss how the culture has changed at Heinz and how it continues to evolve under Heinz. The elements of cultural web are stories, symbols, rituals, paradigm, power structures, control system and organisation structure (Murthy, 2007). Paradigm is the set of assumptions that the organisation takes for granted (Stanford, 2010). Heinz had a low risk and punitive culture which was inward focused when Widdows joined. The company culture had led to resentment and defensiveness by the employees. This was the first area that Widdows initiated change into a culture which was rewarding success (Graetz, Rimmer, Smith & Lawrence, 2010). Routine refers to workers behaviour towards each other (Stanford, 2010). When Widdows joined the company, the employee had resentment and defensiveness among each other. Widows changed this routine and ensured that the employees were able to establish a great place to work. Widdows worked on enhancing and changing the organisation rituals. This refers to aspects of organisation life which reinforces culture (Stanford, 2010). Another area in the cultural web addressed by Widdows is the power structure; widows reduced the number of the employees and restructured the board. Under Widdows leadership, Heinz is still evolving to be a great place to work with the idea of a great place to work being implemented (Graetz, Rimmer, Smith & Lawrence, 2010). 2. Based on the cultural web audit, identify the key forces for and against change. One of major problem in making change is the fact that organisation culture is hard to change (Stanford, 2007). One of the key forces in changing organisation culture is the linkages in the web. Those who were in top positions would oppose any organisation change that would make them lose power. The organisation structure was also complex which had led to confusion over roles. By declaring that he was to reduce the staff, there was expected to be a force against the effort by the staff. None among the staff would have wanted to lose a job. The case states that there was cynicism among the staff when he started the process of change. The management in this case seems to be the main force against change (Graetz, Rimmer, Smith & Lawrence, 2010). Looking at the employees aspect, the culture had been punitive and inward focused. The employees at Heinz were used to punitive culture which they resented. This meant that the employees would have welcomed change as they were the beneficiaries. The staff had lost morale under the previous culture, leading to some leaving the job. Thus, it is evident that employees were the force for change. The employees had to support change initiatives by Widdows as it promised that a good place to work where their ideas and efforts were respected and appreciated (Graetz, Rimmer, Smith & Lawrence, 2010). 3. What appears to be key strength of the new culture? The new culture at Heinz main strength is a simple structure which leads to ease for accountability. Before Widdows arrived in the organisation, the structure was complex, which led to the roles and responsibilities being unclear. He made an organisation restructure which helped reduce the salaried staff by 25% and introduce middle level members in the company board. For example, in the previous structure, the complexity led to confusion which meant new ideas could not be easily implemented. The employees who had ideas were thus demoralised as they could not give their view easily. To make any changes in the culture, it was a prerequisite to ensure there was a structural change. The culture that was created by the structure could not enable the employee to have a great place to work. The strength of the new culture appears to be based on the new organisation structure which makes it easy to have interaction between the employees and the management (Graetz, Rimmer, Smith & Lawrence, 2010). 4. What aspects of the organisation need to be monitored and sustained to ensure the organisation does not slide back to the old days of thinking and working? The organisation needs to maintain the new cultural mindset. This is through making sure that the organisation mindset of having a great place to work is maintained as the main drive towards achieving results. To maintain the drive, communication will help a lot (Meyer, 2000). The organisation has to make sure that their values are communicated to all and upheld. The values will make it possible for the employee to work hard in making sure they abide by them (Stanford, 2010). The management has to continue walking the talk. They must serve as a good example to employees so that they maintain the morale. The management must continue responding to the employees’ concern and making changes to the suggestions. If the management is not able to walk the talk, the employees may think that they are not committed to the change. One of the values that the organisation was able to demonstrate to their employees is engaged workforce. The organisation must ensure that the workforce is fully engaged. With these aspects being looked at, the organisation cannot return to the old days of thinking and working where everything was perceived as hard and employees lived in resentment (Graetz, Rimmer, Smith & Lawrence, 2010). Continuous improvement for the environment in Sun the Microsystems 1. What principles of best practice are demonstrated in the sun Microsystems Case? Sunmicrosystems has been able to demonstrate several principles of best practice. The four principles that led to change are; dumping PCs in favour of the thin clients, forming staff work groups, redesigning the floor space and using video conferencing and computer mediated communication. By replacing PCs with computers utilising a main server files, the company was able to save power. The PCs which initially utilised more than 100 Watts were replaced with clients which run at 4 Watts. The staff groups helped to improve eco-responsibility among the employees. By sharing responsibility, small improvements such as sharing printers and turning off lights could be carried out easily. When the staffs are working as a team, they can be able to assist each other and share the available resources. Through redesigning the floor, the staffs were encouraged to work at home. Having staff work at home was an initiative to have a flexible working environment where an employee is not required to be at the office at all times. The use of video conferencing reduced travelling which increases carbon emission (Graetz, Rimmer, Smith & Lawrence, 2010). 2. What gains should Sun Microsystems expect from these changes? After undertaking the changes, Sun Microsystems has to expect several gains. One of the gains reduction in the operation costs. For example, the clients helped the company to reduce power consumption by the PCs by a large percentage. In this case, the PCs which initially used 100 Watts were able to run at 4 Watts. Cost reduction is a measure that benefits an organisation in a great way. If the organisation is able to cut its operating costs, the profits are able to increase. By having a space redesign, the organisation was able to improve on their staff desk ratio. The improvement will further help the company to use the available resources more effectively contributing to cutting the operating cost. The company is also set to benefit from being able to easily achieve their carbon target. Taking measures such as video conferencing instead of air travel and driving have an impact on reducing the carbon emission. The company had set to reduce the carbon emission by 20%, which they were able to achieve by 2012. The company can thus be able to easily attain their carbon reduction targets easily due to the measures in place. Through use of appropriate technology, utilising empowered work teams, less hierarchical organisation and flexible work practices, the organisation have been able to gain a lot and the gains will benefit them for a long time. The reputation gained by the company ability to reduce their carbon footprint has been able to attract new clients. At the moment, most of the clients are environmentally aware. The consumers are more likely to be attracted to companies with a good record on environmental protection. The reputation for sustainability will thus enable the company to maintain and expand their market share (Graetz, Rimmer, Smith & Lawrence, 2010). 3. Can this example be copied by other organisations? The continuous improvement in the Sun Microsystems environment is an example that can be copied by other organisations. Other organisations in the same line of operation can learn the best practices that have been utilised by Sun Microsystems and apply them. One of the companies that can copy the example is Dell computers. The company is in the same line of business with Sun Microsystems and have been directing efforts towards reducing carbon emission and increasing productivity. For an organisation that is keen on following Sun Microsystems example, they can take the model and try it without much guidance. For example, redesigning the staff workplace and use of client computers can easily be carried out by Dell computers. Dell computers have the required technology to implement all the steps used by Sun Microsystems. Thus, for an organisation to successfully copy the example at Sun Microsystems, they have to set the goals and come up with the best practices that will enable them to achieve the goals (Graetz, Rimmer, Smith & Lawrence, 2010). References Graetz, F., Rimmer, M., Smith, A & Lawrence, A 2010, Managing Organisational Change, Milton, Qld, John Wiley & Sons. Kotter, J. P & James L. H 1992, Corporate culture and performance, New York, Free Press. Meyer, M 2000, Organisation culture, Randburg, Knowledge Resources. Murthy, C. S. V 2007, Change management. Mumbai, Himalaya Publishers, House Pvt. Stanford, N 2010, Organisation culture: getting it right, London, Profile. Stanford, N 2007, Guide to organisation design creating high-performing and adaptable enterprises, London, Economist. Read More