Assessing change in PETROM

Topics: Change management, Petroleum, Renewable energy Pages: 11 (3596 words) Published: November 28, 2013
ACADEMY OF ECONOMIC STUDIES
FACULTY OF BUSINESS ADMINISTRATION

ASSESSING CHANGE AT PETROM

CHANGE MANAGEMENT

Table of Contents

I. INTRODUCTION 4
II. CHANGE MANAGEMENT PROCESS 6
III. ANALYSIS OF THE CHANGE PROCESS 7
- KOTTER’S 8-STEP MODEL PERSPECTIVE
IV. ROLE OF CHANGE MANAGEMENT12
V. FUTURE PLANS IN PETROM17
VI. CONCLUSION20
VII. REFERENCES26

I. Introduction

Petrom is a very well-known oil company in Romania, as it is the largest corporation in Romania, with €6 billion revenue in 2012 and over 24,662 employees. Petrom is the largest gas and oil producer in Easter Europe. It was founded in 1991 as a state company, and after that in late 2004, it became privatized with the largest privatization deal in Romania’s history, and the majority of shares were sold to the Austrian OMV group.

We chose Petrom due to the fact that firstly the Romanian society in the past ~ 23 years has gone through a period of major social change from socialism / communism to capitalism, changes that had a major impact on society as a whole and also on each companies. This fact imposed major reconstructions that led to the necessity of applying a complex and continuous management change process. Secondly, it is related to the oil industry history in the world wide level.

Crude oil was known in Romania since the first century BC, when dating objects were found in the old city of Poiana (Nicoresti,Galati). The world's first oil refinery was built in Romania, in 1856, on the outskirts of Ploiesti, by brothers Mehedinţeanu. Oil distillery has started when Theodore Mehedinţeanu encountered difficulties in applying the signed contract even from 1856 to illuminate the capital with "idrocarbură and lamps”. Due to history facts Romanian geology and its scientists played a crucial role in setting the basis and the development of oil industry. Many of these last new technologies used in research, exploration and exploitation in oil industry has its roots linked to Romanian geology science and oil industry.

After about 1 year or so from being privatized in 2004, Petrom purchased OMV's operations in Romania, Bulgaria and Serbia and Montenegro. As a result of the transaction, 178 OMV stations were transferred to Petrom, but continued to operate under the OMV brand. From 1 January 2010, the company changed its name to OMV Petrom. On December 2, 2010, Petrom opened up Petrom City, the headquarters that hosts the company's central operations. Situated in the northern part of Bucharest, it is used by around 2,500 employees from 7 headquarters of the company in Bucharest and Ploiesti.

II. Change management process
Change management is a basic skill in which most leaders and managers need to be competent. There are very few working environments where change management is not important. Organizations do not change – people do. “People don’t resist change. They resist being changed!” – Peter Senge People react differently to changes because the information differs according to the level of management each person occupies. Furthermore, the perspective between managers and employees varies, while the managers have the whole picture of the change stages the employees see the process from their personal point of view and see the first 5 stages as separate change not as a whole. That is why more than 27% of the employees opposed to these changes. This is a main cause of resistance, by mis-understating and lack of trust. Even if most of the interviewed agreed that Petrom acquisition into OMV Group is a success, some have hidden opinions that the job could have been done better and the change process could have been shorter. At OMV Petrom, 16.22% of employees declare they do not adapt quickly to any change, which may turn into resistance to change. At the same time, more than 20% do not have enough confidence in the company’s possibilities to change and adapt to a change....

References: [1] [Online], Available: http://www.mindtools.com/pages/article/newPPM_82.htm
[2] [Online], Available: http://www.teamtechnology.co.uk/changemanagement.html
http://en.outreach.ca/Article/DNNArticleView/tabid/2265/ArticleId/1794/Building-Your-Guiding-Team-for-Your-Change-Effort.aspx
[4] [Online], Available: http://academy.clevelandclinic.org/LinkClick.aspx?fileticket=tCy9kstz6FU%3D&tabid=1846
[5] [Online], Available: http://www.bvb.ro/infocont/infocont12/snp190612_en.pdf
[6] [Online], Available: http://www.slideshare.net/PetromSustenabilitate/petrom-investor-presentation-update-q2-s
[7] [Online], Available: http://www.environmental-expert.com/companies/rompetrol-28718
[8] [Online], Available http://en.wikipedia.org/wiki/Petrom
[9] “Leading Change” by John P. Kotter (Harvard Business School Press, 1996)
[10] [Online], Available: http://www.petrom.com/portal/01/petromcom/petromcom/Petrom/Despre_Petrom/!ut/p/b0/04_SjzQ0sTAzNzCzMDHVj9CPykssy0xPLMnMz0vMAfGjzOIN_E0tAr0cnY1cDdw9PXw9jDwNDSBAPzg1Tz83ylERACHsGAs!/
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