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Explain the organizational change implemented by the company named Ranbaxy and how effectively they managed the change and how they met with success in achieving their objectives

Extracts from this document...

Introduction

Table of Contents Purpose .................................................................................................. Introduction................................................................................................ Company Background.............................................................................. Organizational change............................................................................. PESTLE analysis,......................................................................................... Drivers for Change...................................................................................... Objectives.................................................................................................. Organizational change............................................................................. Types of Organizational change............................................................ Change Process......................................................................................... Types of change ..................................................................................... Planning the change process.................................................................... Planning Change Models ............................................................................ Change at Ranbaxy...................................................................................... Models for change....................................................................................... Guidelines for successful change management........................................... Human factors involved in the proposed change..................................... Reasons for resistance to change:............................................................... Process of implementing the change.......................................................... Change Management..................................................................................... Evaluation................................................................................................... Conclusion....................................................................................................... PURPOSE: This report try to explain the organizational change implemented by the company named Ranbaxy and how effectively they managed the change and how they met with success in achieving their objectives. For the purpose of this report, the cultural change Ranbaxy implemented and post merger integration of the R&D department of the company in 2008 is considered. 1. Introduction In the present world of fierce competition in the industrial field, organizational change is unavoidable. The changes in an organization will leads them to success or it may result in complete break down of the company. For companies to gain competitive advantage in the market and to sustain it, they should adapt themselves according to the requirements of the market. The Apple company was reborn once they changed their organizational style and started producing stylish products like iPod, which was a huge hit in the market. Before the organizational change they were near to extinction. Organizational change is not easy as it looks. Organizational structure, its culture, leadership, political environment etc are some among the aspects that influence organization change. Company Background Ranbaxy Laboratories Limited is one among the largest pharmaceutical company in India. It is spread over 125 countries in the world and are very keen in providing wide range of affordable, quality products. Their products range over 5000 SKUs. The company merged with Daiichi Sankyo Company, Japanese company, in 2008. Their workforce include 14,000 people from 50 countries. The company made a sales of 1868 million dollars in the year 2010 from the global market. ...read more.

Middle

Develop commitment towards change Communicating with stakeholders will make them dedicated towards the change Support the change process Change can be hectic and may put demands on organization and staff. 3 Models for change Kotlers' eight steps to successful change 1. Create urgency: make people understand the need for change by informing about possible crisis and motivate them to change and make specific, achievable objectives for proposed change 2. Create a guiding team having strong commitment along with intelligence and expertise 3. Develop appropriate vision and strategy that facilitates in change process 4. Make use of all communication methods to communicate the vision and make all participate in implementing the change process 5. Empower the actions: Eradicate hindrances, facilitate support and feedback, change structures, reward progresses 6. Produce short-term wins by setting simple goals. 7. Nurture and promote will power and change process. Emphasize on accomplished and future goals. 8. Sustain the change through better leadership, customer service, staffing and promotional actions Lewin's three-step model of the change process > Unfreezing the status quo > Changing to a new state > Refreezing to make the change permanent UNFREEZING/REFREEZING MODEL FOR CHANGE According to Lewin, the change process can be divided into three steps. They are Unfreezing: Detecting the problems and understanding the necessity of change Changing: Espousing new behavior and intelligence by changing old behaviors Freezing: Analyzing and reinforcing the change by continuously adapting according to feedback Rules or guidelines for successful change management: Careful planning, active participation of stakeholders as well as insightful execution is required for change management (Partridge, 2007). Stakeholders are those people who are affected by the change in the organization. While managing change proper implementation is necessary as problems will occur if change is imposed, rather change should be practicable and rational. In management of organizational change these issues are very important Change should be implemented carefully so that employees can adapt to it easily. ...read more.

Conclusion

Initially people were not ready to welcome the change. As the change process was carried out during global recession some problems were faced by employees. This resulted in resistance towards change. The merging resulted in competition among the inside workers, which caused for low morale. According to Kubler-Ross Transition Model this phase of change is termed as 'Denial Stage'. The mental condition of employees of Ranbaxy during the change process is given in the following model Form the above model it is evident that Ranbaxy was in need of a process that could change the employees' denial towards acceptance in restricted time. Evaluation By analyzing the effectiveness, credibility and suitability of division of R&D department of Ranbaxy after the merging integration its content, context and process can be evaluated. By comparing pipeline and productivity of company prior to and after the change process the performance of R&D department can be determined. During the merging process the company CEO informed that their pipeline is empty and the objective of the change process is to increase the productivity. Once the change process was implemented and settled the results were amazing and Ranbaxy were having hundreds of clinical development projects, several product line extensions, lot of new chemical entities and were having promising pipelines. Conclusion From the above report it can be summarized that changing procedure selected by Ranbaxy in order to achieve their objectives which was determined after analyzing the macro environment of the company's merging with Daiichi Sankyo Company was appropriate. From the PESTLE analysis and the evaluation given above it is evident that the change was necessary for the company at that time. The theories and relevant models described above show that the changing process selected, division of R&D department, and the way Ranbaxy managed the organizational change are really appreciable. It can be said that other companies should learn from Ranbaxy how to change and when to change in order to sustain in the fierce market. Hence the efficiency of the change process were proved. ...read more.

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