Term and Nestle

Topics: Term, Goal, Restructuring Pages: 5 (1779 words) Published: September 10, 2013
HR management assignment help: Changes in organization-Nestle Q?? Write on the change management of Nestle??
Solution:
Introduction
Changes are a part of every Organization. Whenever we move towards the desired goals; various transformations take place within the structure of organization.  Organizational change is defined as the movement of an organization away from its present state and toward some desired future state to increase its efficiency and effectiveness. Every organization is affected by both: the internal & its external environment. However; the major impact is of the environment inside it. This internal environment can be anything ranging from strategy to people; from structure to process. It is very clear that the survival of organizations is dependent on their matching the level of complexity in their environment (Pearce & Ravlin, 1987). Similar was in the case of Nestle. With a motive to be a leader in its field Nestle adopted some changes as a result of the internal & external factors. These changes were the result of the following: Nestlé’s need to increase efficiency & productivity:  To achieve this Nestle opted for global expansion and started buying local subsidiaries from outside market. Nestlé’s need for business expansion: Nestle decided pick up other markets other than food industry whereby the first pick was L Oreal; the cosmetic brand. Later on it took over pharmaceutical & ophthalmic products.  Nestlé’s need for financial enhancement: the CEO decided to get rid of non-profitable business & purchasing the profitable ones. Restructuring within the Nestle: They focused to work on the above changes and the result is in front of all of us This is what CEO at the Company did. He opted for the first order changes that were continuous so that the organization can thrive in the aggressive market.  Let us see what the changes which took place in the Company were:  Personnel Change whereby the executive board was an outcome of it. This executive board was the result of overhauling the current executives (Robbins, 1996).Incremental Change whereby they focused on changes step by step. Changing these small steps lead to the higher changes with the Company. Planned Change whereby the Company never opted for anything unplanned within the organization. The focus was always long term rather than short term. The CEO never believed in dramatic changes.  Continuous Change: Nestle would of course stop existing if the changes stopped. To adjust to existing scenarios, continuous change was necessary.  The reinforcement & sustenance both required continuous change. Transactional Change was again a part of Nestle as the fundamental nature of Nestle was always the same. Proactive Change whereby the alterations were always a part of Nestle in its practices.  Being slow & steady was never a problem at Nestle.  But when organization comes at a point where there is no option but to change ; the change becomes inevitable. These changes were the result of the need to grow by Nestle.  It is very clear that the “management’s ability is to achieve maximum benefits from change depends in part on how effectively they create and maintain a climate that minimizes resistant behavior and encourages acceptance and support” As per the Organization change model proposed by many researchers; 7s model goes in line with the changes that occurred (Sparrow &Cooper, 1998). This model was developed by Mc Kinsey focusing how 7 major factors when organized in a holistic manner affect the overall working of the organization. Let’s us relate thus 7s model to what happened at Nestle:Strategy: Nestle had some initial strategies which it restructured as per the need of the hour. It gave away the non-profitable business & become interested in the profitable ones ( Mind Tools, 2011).Structure: Nestle had a structure of personnel & process which is required for smooth working of every organization. Nestle...
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