Organisational Change Management For Sustainability

Motivational Theories and Leadership Styles at Simunovich Olive Estate and Zespri

Simunovich Olive Estate limited is a company that is producing olives in a large area, and are producing extra virgin olive oil, and beauty skincare ranges of products. In order to motivate employees to perform up to their efficiency, one of the suitable theory is Herzberg two-factor motivational theory (Brenner, 2015).

Frederick Herzberg propounded two-factor motivational theory. According to this theory, there are two main factors, which are responsible for the motivation of an individual to perform in an organization

Hygiene factors- these factors are the basic requirement without, which working is not possible in an organization. For example, organizational positive culture, basic facilities, and a base salary, security in the job, overtime payment, and leaves. Moreover, working conditions play an important role in these factors. These are the factors responsible for dissatisfaction, and unhappy individual, if not available. These factors are required to ensure if employees are not dissatisfied.

Motivational factors- these factors are those, which are responsible for the improvement of work by the employees of the company. For example, rewards in form of incentives, and recognition. Incentives can be in form of a bonus that is the financial incentives. Some are non-financial incentives like a holiday, an award in the meeting, recognition publically. These factors are responsible for the enhancement of satisfaction of employees and work beyond their expectation. These factors are required to ensure if an individual contributing to the organization is satisfied with the organization. Both factors are important to make human resource work well for the organization(tankonyvtar, 2018).

McClelland Need for affiliation, achievement, and power theory is another theory of motivation that is suitable for “Simunovich Olive Estate limited.” This theory is built upon the concept stated by Maslow’s with some up gradation. This theory is also known as “Learned Needs Theory.” As per this theory, three major motivating factors are responsible for performance improvement of employees in the organization.

• Achievement- this factor is needed to accomplish pertains to an individual need for mastering of skills, significant success, higher standards. External and internal drivers influence these needs. If an individual has low achievement need, this means that the person is not willing to take risk of failure and is not influence to take up the difficulty and wish to avoid risk. Moreover, if a person is high achievement need, then they are willing to take risk of failure but want to work for difficult and challenging things and choose the optimal task.
• Affiliation- these motivating factors are considered by some individual, this include need for belonging, relatedness, and love. These individual have a need for friendship, a belong to social group, love, kindness, and friendly environment to work for. These people need more of warm interpersonal relationship. In order to motivate such people, the best way is to prove support and security in the organization.
• Power- this factor of motivation is needed to have control over others. This includes an individual with a strong need to succeed in their opinion, control, and influence others. These are willing to lead a team and do work to increase productivity(Craig & Dibrell, 2014).

Zespri is a company that is owned by New Zealand former of kiwifruit producers, and cooperatively controlled by growers. This is one of the greatest kiwifruit marketers worldwide, trading in more than 54 nations and managing 30 % of trade volume globally. This is a company, which is taken for an understanding of leadership style (zespri, 2018).

Dan Mathieson, considered being the leader of the company, designated as CEO of the company. The leadership style is democratic leadership style (zespri, Dan Mathieson appointed as new Zespri Chief Executive, 2018). As already discussed, the company is running cooperatively by the formers. According to this leadership style, before taking any decision all the stakeholders are consulted and given due importance to the viewpoint of all staff in the organization. Before making any decision, all the producers of kiwifruit are consulted, and considering their view and agreement to a point, the decision is made (zespri, home, 2018)

Delegation of Authority at Zespri

Chief executive officer of Simunovich Olive Estate is Donna Simunovich, leader of the company. The leadership style of Donna is considered a charismatic leadership style, due to the characteristics he has. These qualities include communication skills, positive body language, maturity, self-improvement, sense of humanity, compassion, self-monitoring, existence without substance, and listening skills. These qualities clearly reflect him to be a charismatic leader  (tec.com, 2018). This can also be justified through his performance in the company, like:

• Application of innovative idea into the product ranges of the company for the growth of the company. This is one of the most essential aspects, which is required in the company to grow and gain a competitive advantage. The  new product development, which includes hair care and skin care products
• Through his self-monitoring and self-improvement skills, Donna was able to utilize the resources optimally to gain maximum potential out of that.
• A team was created by him, which was responsible for an overall check of harvesting plants, and monitoring includes the inspection of leaves in case of humidity or any infection, it has to be cured immediately(Miner, 2015)

A delegation of the authority takes place in a unique way at Zespri. This is done in a hierarchal order that is the top-down approach in the organization. The top manager delegates the authority and responsibility to the leaders based on regions, and department like marketing department, quality check department, monitoring team. The company can implement delegation through the following process:

• Prepare- delegating plan is been prepared at this stage to make it more structured
• Assign- the authority and responsibility is assigned to the respective person as per its capability
• Confirmation of understanding- this can be done to ensure if each person has understood their responsibility properly
• Confirmation of commitment- this can be conducted to confirm if the person is committed to the delegated authority
• Avoid reverse delegation
• Ensuring accountability – the accountability of individual to perform the task effectively and on scheduled time is ensured (fastcompany, 2018)

There are various areas where the change has brought in the company Zespri. The major change aspect was with the new organic range of kiwifruit in green and gold kiwi. For this, a separate team of monitoring is been made and the resources are recycled (zespri, Organic, 2018). The change can be done by following three steps of change model propounded by Kurt Lewin. These steps involve:

• Unfreezing- this is the most crucial step in this change process, in the organization many formers are involved and to bring change in the process of production of fruit by every former, it has been observed that communication is to be most effective. Because the barrier to communication is location, the formers are separately located and need to work in a corporative manner. The change is to be understood by them to avoid resistance to change (Ali & Hussain, 2016).
• Changing- this stage involves an actual change in the production process, where the fertilizer used is organic, and the resources used are recycled. Moreover, a completely new team is created to monitor the quality of the product produced
• Refreezing – the change brought has to be permanent in nature. It is to be a check that the change is kept all the way afterward as well(Ali & Hussain, 2016).

Whitewater is one of the popular metaphor to understand change. As the whitewater, is an ongoing raft that is navigating a river, it is believed that the change is continuous in nature, because the environment is unpredictable and very dynamic, and so the change is going on.

Consider this; the change in Zespri is also continuous in nature. The environment in which the fruit is producing is dynamic, and the quality of the crops largely depends upon the weather and by continues monitoring, the changes are also made continually. The fertilizer is changed as per the requirement, and the farmers face constant change, stability, broadening of chaos and predictability along with the managers of Zespri  (Seatter & Lozano, 2015).

The reasons for the need for innovation and change are various external factors; these factors could be the change in technology, economic shock, competition, social factors, legal factors, and political factors. The main two factor that is responsible for the change in Zespri is environmental factors and social factors.

• Environmental factors- the climate is very much responsible for change and innovation in Zespri, as it keeps on changing and so is the quality of the product produced by the farmer. Moreover, since the resources to be sustainable, need to be protected for the future generation. For this, recycling has been introduced in the production procedure
• Social factors- this includes the influence of people to use more natural and more organic form of fruit. The social factors lead Zespri to shift the production towards the organic one  (businessmapping, 2018).

Change in human resource, that is the recruitment of new employees and change in position of existing employees is major change considered at Simunovich Olive Estate. This change needs to be tackled by managers of the company for better flow of a process of work. Since change usually brings resistance among the existing employees, these need to be handled with appropriate strategies. For example, at the time of introduction of new product range, the introduction of crop monitoring team or introducing a new restaurant, the need to change in human resource become essential  (Brfidgman & Brown, 2016). 

Continuous Change at Zespri

• Induction training- this is the training provided to the person that is been recruited to the company. At this training, the person enters the company is been briefed about the organization, and its rule, regulation, and policies. Moreover, the person is introduced to the existing employees of the company, this is done to make him or her comfortable, and for the existing employees to know them so that they are friendly and supportive with a new person.  Moreover, in case of a change in the position of an employee, the employee through training is introduced to its new job, and work. In case of any gap in their competencies, further training is provided (Pyka, 2017).
• Incentives – proving non-financial and financial incentives are provided to the employees to motivate them to work and do no resistance to change (Raban & Ritcher, 2015).

There is a various aspect of the organization where planning is required. At Simunovich Olive Estate, product innovation is one such area is identified, where planning can be conducted. For this, the following stages of the planning process are followed:

Stage1- need identification

The need for planning at a specific area and required action to be taken are identified, which is innovation in existing products  (Miner, 2015)

Stage2- objectives

The objective could be sustainability in a competitive industry, for the identified area

Stage3- premise development- development of future requirement assumption is done at this stage

Stage4- alternatives identification- alternatives like a change in formula, in skin care products as if the gel-based product can be one of the alternatives

Stage5- alternative evaluation- all alternatives are evaluated, that is they fit the situation and as per the resources available

Stage6- alternative selection- the most appropriate alternative is selected to be executed

Stage7- supportive plan- to support the major plan, a short-term supportive plan is created

Stage8- plan implementation – lastly, the plan is implemented

Two major types of plan suitable for Simunovich Olive Estate are the operational and strategic plan. There are vast differences in both types of planning, which are as follows

Simunovich Olive Estate can use strengths and reduce weakness to gain opportunity and avoid threats to aid strategic planning process. The process of strategic planning includes five steps, which are Situation analysis, Direction, Alignment, Execution, and Evaluation. For this, process the SWOT analysis of Simunovich Olive Estate is:

Strength

• The management of the quality of the monitoring team is the strength of the company
• Location of Simunovich Olive Estate has a suitable environment for olive harvesting

Weakness

• The chances of damage of crops are very high, this could be a due change in weather like humidity and leaves infection like fungus. This is one of the major weakness of the organization
• Production cycle from cropping to product manufacturing is very long, which is another weakness of the company

Opportunity

• Technology advancement, the technology needs to be upgraded for the growth of the company and sustainability
• Product innovation or new product development can be an opportunity for the company

Threats

• Lower Demand
• Change in climate (Craig & Dibrell, 2014)

In all the organizations, controlling is very necessary. The crop-monitoring program is one of the key areas to have control at Simunovich Olive Estate. This is because it is essential to have an eye on the quality of the crop. Therefore, control is required for this, which can be done through the following steps:

• Stage1 – risk assessment

For this step, initially, the area of risk is analyzed, such as crop failure due to infection is analyzed. This risk is to be mitigated before it occurs or in the case starts to occur. For which continuous monitoring is required.

• Stage2 – implementation, and communication

The mitigating strategies are implemented. In addition, all the situation and risk observed is communicated to the employees so that everyone can do something on their hand to control this.

• Stage3 – monitoring

At the last stage, it is kept in check if the implementation is working for the circumstances, and more risk is not analyzed. This means, the actual performance is compared with the standards and deviations are controlled  (diversityworksnz.org, 2018)

• This control is done after the performance is completed, to ensure if there is any variation in planned performance and the actual result
• Simunovich Olive Estate, this control is done in the form checking the quality of the olive harvest. while (Kerzner, 2017)

• Also known for preventive control
• A control that is done well before the conduct of the activity.
• This is to prevent the variation or any damage.
• The control-monitoring program is one of the feed forward control for Simunovich Olive Estate. The control is done before crops are damaged by observing leaves healthiness

References

Ali, M., & Hussain, S. (2016). Kurt Lewin’s change model: A critical review of the role of leadership and employee involvement in organizational change. Journal of Innovation & Knowledge, 1.

Brenner, S. (2015). Leadership style and the process of organizational change. Leadership & Organization Development Journal, 2-16.

Brfidgman, T., & Brown, K. (2016). Unfreezing change as three steps: Rethinking Kurt Lewin’s legacy for change management. human relations, 33.

businessmapping. (2018). 5 Effective Change Management Strategies. Retrieved from businessmapping: https://www.businessmapping.com/blog/5-effective-change-management-strategies/

Craig, J., & Dibrell, C. (2014). Linking the formal strategic planning process, planning flexibility, and innovativeness to firm performance. Journal of Business Research, 2000.

diversityworksnz.org. (2018). work life balance. Retrieved from diversityworksnz.org: https://diversityworksnz.org.nz/wp-content/uploads/2016/08/WLB15-Vodafone-WLB-Approved.pdf

fastcompany. (2018). 6 Steps For More Effective Delegation. Retrieved from fastcompany: https://www.fastcompany.com/3006643/6-steps-more-effective-delegation

Kerzner, H. (2017). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Miner, J. (2015). Organizational behavior 1: Essential theories of motivation and leadership. London: Routledge.

Pyka, A. (2017). Innovation, structural change and demand evolution: does demand saturate? . Journal of Evolutionary Economics, 337.

Raban, D., & Ritcher, G. (2015). Studying gamification: the effect of rewards and incentives on motivation. In Gamification in education and business, 21.

Seatter, C., & Lozano, R. (2015). Teaching organisational change management for sustainability: designing and delivering a course at the University of Leeds to better prepare future sustainability change agents. Journal of Cleaner Production, 205.

tankonyvtar. (2018). Motivation theories. Retrieved from tankonyvtar: https://www.tankonyvtar.hu/hu/tartalom/tamop412A/2011-0023_Psychology/030300.scorml

tec.com. (2018). 9 common leadership styles: Which type of leader are you? Retrieved from tec.com: https://tec.com.au/resource/9-common-leadership-styles-which-type-of-leader-are-you/

zespri. (2018). About Us. Retrieved from zespri: https://www.zespri.eu/en/about-zespri/about-us

zespri. (2018). Dan Mathieson appointed as new Zespri Chief Executive. Retrieved from zespri: https://www.zespri.com/companyinformation/newsroom/ceo-announcement

zespri. (2018). home. Retrieved from zespri: https://www.zespri.com/

zespri. (2018). Organic. Retrieved from zespri: https://www.zespri.eu/en/organic-kiwi

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order