Managing Change at Cox's Container Company

PEOPLE, MANAGEMENT AND ORGANISATIONS

COURSE ASSIGNMENT 1

Introduction

The objective of this paper is to examine issues and implications an organization may face at change implementation stage. The paper aims to outline and analyze short-term and long-term problems confronting Cox’s Container Company (CCC). These problems are looked at through the prism of change at organizational and individual level, while the analysis is built and supported by models and concepts involved in process of change management, organizational structures and cultures. Finally the paper draws recommendations and plan of action suitable for short-term and long-term benefits resulting from resolution of the problems pointed out.

Problem Identification

Cox Container Company after many decades of growth and progress was facing with increased competition and decline in profit margins. Under the threat and risk of survival, Managing Director Harold Cox asked Erica Wilson – General Manger, to build change strategy. The need for change was driven by the following factors/ problems:

• Coming retirement of Harold Cox
• Increased competition  and decreased profits
• Flat organization and centralized decision-making
• Incompetency of personnel/ No training
• Lack of fresh talent, professional capabilities and contemporary leadership techniques

The secrecy of survey conducted by Wilson and no or poor communication on the need for change with employees resulted in bigger problem – disruption between top management and line mangement. Some internal, operational and functional problems have been meant to be tackled by appointment of three new managers: John Straw as manager of central administration department, Eric Long as section manager for new budgeting and Simon Pedder for reviewing operational procedures. Wilson and new managers, however, did not foresee the resistance by old management team and employees, who seemed struggling to understand the new system and how it could affect previously established work practices. Deeper analysis revealed that the way change process was managed and resulting in conflict, has crucial importance which will be the main part of discussion in this paper. 

Analysis

“For an organization to be enduringly great it must be incredibly skilled at changing itself.” (Lawler, Worley, 2006)

Organizations must keep changing, to keep up with global economic and geopolitical developments, competitor behavior, changing customer demands and expectations, new legislation and regulations, new material, new technologies – and many other surprises. Failure to change, and to change rapidly, may put an organization’s survival at risk. (Huczynski, Buchanan, 2013, p. 618)