MNG 3702

Assignment
one semester
1
2023
(615972)
Question 1
John Kotter’s eight –step change model is a widely recognised framework for
managing change in organizations. The steps are:

1. Establishing a sense of urgency

2. Creating a guiding coalition
3. Developing a change vision
4. Communicating the vision for buy-in
5. Empowering broad-based action
6. Generating short-term wins
7. Sustaining acceleration
8. Incorporating changes in the culture

1) Step 1: Create a sense of urgency- Cynthia Carroll recognized the agent need for
a stronger safety culture within Anglo American. This was in response to the fact
that the organisation lost about 45 people to fatalities every year in the five years
before she was appointed CEO. Carroll made safety a top priority, emphasizing
the need for a safety culture. She gave orders to shut down the mine complex, to
assess the infrastructure and standards and to work to retain people.

2) Step 2: Creating the guiding coalition- to achieve her safety goals Carroll built a
coalition of safety leaders within the company. She established a safety
committee and tasked it with identifying safety risks and implementing safety
improvements across the company. In the case study, it is indicated that Carroll
knew she would have to win allies for her safety campaign within the wider
industry, the labour unions and the government.

3) Step 3: Developing a change vision– Carroll’s strategic vision was to create a

safety culture in which every employee felt responsible for safety and was
empowered to take action to prevent accidents. In the case study, it is stated that
during these changing times, Carroll spent a lot of time with external
stakeholders, shareholders and never received resistance to change from the
shareholders, they understood the reasons and ultimate benefits for
implementing the changes.

4) Step 4: communicating the vision for buy-in- simply telling the employees about
change is not enough, they need to understand what it entails, why it is
 necessary and why it will be beneficial. The change needs to be communicated
consistently and on every possible platform. In the case study it is indicated that
communications and relationships with labour unions were very good, Carroll
never had a major walkout, and the company never experienced a strike since
they had built a trusting relationship between all parties.

5) Step 5: Empowering broad-based action- from the video on financial times where
the case study was derived from Carroll had to make a change of taking out a
layer of people reporting to her early on, they were acting chairman, which was a
buffer, from her standpoint between herself and the CEOs of the business.

6) Step 6: Generating short-term wins- large-scale change , such as that needed for
strategy implementation, can be a long process. To keep momentum going, it is
imperative to show some short-term results. According to the case study the
company delivered $3.2 billion (about $10 per person in the US) of value over
and above their committed numbers of $2 billion. They had a clear strategy- they
were joined up. They also reduced the number of fatalities by 70% and cascaded
into the industry which was reduce by about 50%.

7) Step 7: Sustaining acceleration- Carroll continued to emphasize the importance

of safety and ensure that safety remained a top priority across the company. She
also recognized that sustaining the safety change process required ongoing
efforts to embed the new safety culture across all levels of the organization.
According to the case study, it is stated that they had a clear strategy, they were
joined up. They reduced the number of fatalities by about 70% and that cascaded
into the industry, which was reduced by about 50%.

8) Step 8: Incorporating changes into the culture- As a result of the safety change
process, Anglo American successfully improved its safety culture and achieved
its goal of a safety working environment. In the case study it is indicated that the
company delivered $3.32 billion of value over and above their committed number
of $2 billion.
Question 2
Explain the principles of organsational learning.

Organizational learning is the process of acquiring knowledge and skills at the

organisational level. It involves the continuous acquisition and application of new
knowledge and insights to improve the organisation's ability to respond to challenges
and opportunities.

2.1 principles of organizational learning

1. Learning takes place primarily at the individual level.
2. Organisational learning takes place as information is shared and meaning is
created by means of interactions between individuals, technologies and
processes.
3. Organisational learning is advantageous.

2.2 Apply the principles of organisational learning to the Anglo-American case study.

1. Learning takes place primarily at the individual level- Anglo American is a large
multinational corporation with operations in various industries, including mining
and metal. While organisational learning does involve collective efforts, learning
at the individual level is critical to the success of the organisation. In the case
study, when Carroll took over as CEO of Anglo American, she faced several
challenges as she sought to build a safety culture. While it took time to see
results, these efforts eventually paid off, with the company experiencing
improved financial performance.
2. Organisational learning takes place as information is shared and meaning is
created by means of interactions between individuals, technologies and
processes. According to the case study it is stated that, when Carroll took over
as CEO, her primary focus was on safety. She visited the Rustenburg platinum
mining operation in South Africa, and after learning of fatalities, she made a bold
decision to shut down the mine complex, assess infrastructure and standards,
and retrain people to ensure safe working conditions.
3. Organisation is advantageous- Carroll’s focus on safety enabled the company to
reduce fatalities by about 70% and cascaded to the industry, which was reduced
by about 50%. Secondly Carroll’s decision to reduce the number of people
 eventually paid off, as the company delivered $3.2 billion of value over and
above their committed number of $2 billion.

2.3 Explain the steps of organisational learning process.

1. Individual learning- organisational learning starts with individual learning, where
individual employees learn new skills, acquire knowledge, and develop new
attitudes through formal training and informal interactions with others.
2. Applying acquired knowledge management practice- after acquiring new
knowledge and skills, employees need to apply in practice.
3. Transferring knowledge to other members of the organisation- Once employees
have learned and acquired new knowledge and skills, they can transfer this
knowledge to other members of the organisation. This can be achieved through
formal training programs, mentoring, and coaching.
2.4. Apply the steps in the organizational learning process to the Anglo American case
study. In your answer, you need to state each step of the process and then apply it to
the case. (6 marks)

 Individual learning: Through training, the employees gain the individual learning
that is required for safety.in the Anglo American case study, Carroll identified
individual learning as a key priority after the occurrence of multiple fatalities in the
company’s operations.
 Individual share their learning and transfer knowledge to other members of the
organisation. I believe that the knowledge acquired by employees through
training was shared with their colleagues to improve safety across the
organization.
 Knowledge is commonly accepted and applied in the organization and becomes
an organizational capability.
Question 3
One key element of response of resource allocation in the organisation to ensure that the
behavior and work of every employee are aligned with the strategy.

3.1 explain the tools that organisations can use to achieve this:

 The process of alignment starts with recruitment process. Organisations should recruit
individuals who support their strategic direction and subscribe to the values that the
organization stands for.
 Training and development may be required to ensure that have the knowledge and skills
needed to perform their jobs effectively. This can include providing training on new
technologies, processes, or procedures that can improve efficiency and productivity.
 Policies and procedures can be used to guide the behaviors of individuals within the
organization. Changes may require old policies and procedures to be reviewed or
introduced. By setting clear guidelines and expectations for how resources should be
allocated, organisations can ensure that resources are used in the most efficient and
effective way possible.
 The process of cascading objectives can be used as framework for setting objectives
lower down in the organization, for example, by using the balanced scorecard
conjunction with a performance management system. By using this approach,
organisations can ensure that there is alignment between the goals and objectives set at
the highest level of the organization and the objectives set at lower level.
 Reward systems can be tailored to reward behaviours and achievements that are
aligned with the organizational goals and objective. This would help to motivate
employees to allocate resources in the most efficient way possible.
 Amalgation of preceding aspects, a strong culture means the behaviour of employees
will be guided by their values and beliefs rather than by the rule book.

3.2 The following are the tools applicable and implemented by Anglo American during the
tenure of Ms Cynthia Carroll are:
  The process of alignment starts with the recruitment process: Anglo American
placed emphasis on hiring individuals who supported their strategic direction and
subscribed to the company’s values. In the case study, it was indicated that Carroll
needed to make another change by taking a layer of people reporting to her early
on.
 Training and development: the company provided training and development
opportunities to employees to ensure that their knowledge, skills, and attitudes
matched the strategic direction of the organization. According to the case study it is
stated that Carroll gave orders to shut down the mine complex, to assess the
infrastructure and the standards and to work to retain people.
 Policies and procedures can be used to guide the behaviours of individuals.
Changes may require old policies and procedures to be reviewed or introduced.
According to the case study it is stated that Carroll also had to assess the
infrastructure and the standards.

Question 4
The Strategic Project Management (SPM) framework is a resource allocation framework
that helps to align an organisation’s projects and programmes with its strategies.
4.1 Depict the SPM diagrammatically.

Strategic

context

Potential
strategic
initiatives

Selected strategic
initiatives

Portfolio programme
and project
management

Business as usual
4.1 apply each phase of the SPM to the Anglo American case. In your answer you need to state
each phase of the framework and apply it to the case

 Phase 1: Identification- It involves identifying the organisation’s strategic context,

determining where they currently are, what they want to be, and how they will get there.
In the Anglo American case study, the need for safety was identified after multiple
fatalities occurred.
 Phase 2- Prioritization and selection: prioritizing and selecting projects that the
organization will undertake to achieve its goal. In the case study of Anglo American,
training on safety and assessing infrastructure and standards were prioritized.
 Phase 3: Synthesis- involves managing the investment of organization to fund strategic
initiatives that are not part of its day-to-day operations. In this phase, portfolio,
programme and project management are employed to absorb the initiatives into the
organisation’s operations.
 Phase 4: Transition- the outcomes of portfolio, programme and project management
become part of the organisation’s day-to-day activities. The Anglo-American case study
shows that the safety project became part of the organisation’s activities, delivering a
value of $3.2 billion and reducing fatalities by 70% and that cascaded to into the
industry, which was reduced by about 50%.
 References
Venter, P & Botha, T (eds). 2022. Practicing strategy- A Southern African context. 3rd
edition. Cape Town: Juta.
2018, “I was very unpopular” -ex CEO of Anglo American, Financial Times, Available
online: https://www.ft .com/video/d8eedd628-8afa-4c53-90da-7f7968d9ff58 (accessed 14
March 2023)
Garvin, D, 1993, Building a Learning Organization, Harvard Business Review.