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Table of Contents 1. Introduction................................................................................................................. 2 2. Lewins planned change model.................................................................................. 3 2.1 Unfreeze ....................................................................................................... 3 2.2 Change .......................................................................................................... 4 2.

3 Refreeze ........................................................................................................ 5 3. Intervention to modernize CFP ................................................................................. 6 4. Assumptions ................................................................................................................ 7 5. References ................................................................................................................... 7

1. Introduction
Colombo Food Products (CFP) is in the business of suppliyng processed bottled foods to a leading super market chain in Sri Lanka. CFP has two manufacturing plants ; one plant in Colombo and the other in Kandy. For the bottling process, CFP currently uses old technology and simple and labour intensive processes.

Business is growing and the management of CFP is considering modernizing the plant to make the processes more efficient.This will result in modernised plant doing more work than both old ones can do together right now. The older plant in Colombo will be closed. The purpose of this study is to look at how Lewins planned change can be used in CFP to manage the new changes thats about to happen.Also the level of intervention and the assumptions made in the casestudy will be mentioned.

Ultimately a strategy to manage the implacations of the organizations development will be proposed.

2. Lewins planned change model

Ensures that employees are ready for the change

Change
Execute change as intended

Ensures change is made permanent

Unfreeze
2.1 Unfreeze

Refreeze

This includes in creating a readiness to change among organizational members and helping them to overcome resistance to change. CFP top management has made a strategic decision to close the Colombo plant and to only operate the Kandy plant with renovations.

Before moving ahead, a comprehensive organizational wide assessment to determine key areas that needs attention is advisable. For CFP factors such as available skills, knowledge, cost of VRS scheme, retraining on self management etc Its important that the management effectively communicate the discrepancies between the current and desired state. Selecting an appropriate change agent is important. This individual needs to be charismatic, respected by the employees and top management and have a keen grasp of the workings of the company. He will be first point of contact to communicate.

CFP need to convey the positive expectations of the change after the modernization process is done and how the employees are expected to perform and how they will be compensated e.g. Transportation / Food / Accommodation in Kandy

Empathy and support - Its important to carefully identify the individual perceptions of employees and create a support mechanism to help them deal with their queries and concerns

Influencing stakeholders - Since the employees are pretty loyal to the company there is a higher tendency that they support the change process however its important to get the affected stakeholders involved in the process. E.g. The supermarket that CFP supplies to will be concerned about delivery on time

2.2 Change

Though only 10 jobs are affected, the statement that the HR implications minimal is not correct. The cultural, legal and ethical implications are quite significant. Due to strict regulations in termination of employment the 10 jobs need to be carefully assessed and decided on before it affects the entire transition process. However, during the transition period CFP would definitely needs extra manpower to both support the existing process and train others for the new process.

Timeline- This involves in making a road map for change, citing specific activities and events that occur if the transition is to be successful with an end date. e.g when the Colombo plant is to be closed. Production/ demand trends need to be critically identified so that the affect on the business would me minimum. The management could strategically plan to produce a buffer stock of production to support in an affected situation.

Execution- this is the stage where the planned modernization occurs and the plant will be renovated with new technology. Concurrently with that change management activities will happen such as communicating the OD process, introduce voluntary retirement scheme, training needs assessed and planned. The most competent employees could be trained first to the new processes while the others focus on delivering the current demand in order to create sustainability in the business.

Management - There should be a process to include people in order to mobilize power and resources to gain a solid direction in the change management process. This involves identifying key people and groups whose commitment is needed for the change .e.g. employee leaders , competent people that will support the new system

2.3 Refreeze
As suggested by the name, this stage is about establishing stability once the changes have been implemented. The changes are accepted and become the new norm. Employees form new relationships and become comfortable with their routines. The purpose of Refreeze is to identity what supports the change and maintain them and identify barriers to sustaining change and reduce them The leadership of CFP needs to support the new plant and the latest computerized equipment and the reward system devised by HR need to collaborate the established change. E.g. earlier system would have reflected the labour intensive processes such as commission based on number bottled per person. The organizational structure needs to be aligned to the change and documentation such as JD should be coordinated. Continue to provide ongoing support and training so that the results are at a satisfactory level

1. Intervention to modernize CFP


Firstly CFP is going for a OD approach that will change the fundamental structure and systems that exist. Recognizing this fact is essential. The HR managers comment is not the reality in the given scenario. The impact of the change will be felt in more than just the loss of 10 jobs.

For the proposed modernization to be effective and be executed as planned the involved should be from the beginning.

The top management has to be engaged in the process to show the commitment and inspire confidence in the employees. For example depending on the stakeholders interest and power according to the Mendelows matrix, the management will have to give attention to their concerns. For a powerful stakeholder the CEO of CFP may have to address while for the stake holder with low influence and low power it will not be required.

The HR department will have to play an active and key role in the change management process HR is in a position to be the channel to communicate with employees in both plants. Also HR will be in charge of the training that will have to be planned and conducted and implemented in a phase by phase. E.g. first an attitude training for supervisors to empower self management .Then the skills enhancement

2. Assumptions
Attrition Rate Combined staff strength in both Kandy and Colombo New modernized Kandy plant will require a staff cardre of - > 10% - 65 - 55

Transition Period - Six months

Management wants to get more than 10 existing employees to agree to VRS in order to get new blood in to the company who are expereinced in using the computerized equipment

Colombo plant will be used as the stores in future .This will be the central location. A certain number of staff can be retained as back office staff.

This will be announced only after VRS is completed. Then the remaining old Colombo staff transfer process will begin.

The money from selling old euipmentement in colombo will be used to fund atleast part of the change management cost .e.g. VRS, training

3. References
Scott Snell, George Bohlander and VeenaVohra, Human Resource Management: A South-Asian Perspective Handbook of Industrial Relations 2008 - Published by EFC Keith Newtown, The High Performance Work Place