Organisations are part of a constantly changing, continuous progressing complex business world. According to Nikolenko and Kleiner (1996), they are also subject to internal and external influences,
e.g. global trends, strategy, environmental conditions, organisational culture and leadership etc. The most important of them are the development of the global market, increasing competition, ever faster changing economic and technological development and a diverse workforce.
In order to be able to compete, to advance and become successful in the global marketplace, organisations should respond to change in the face of environmental pressure (Lakomski, 2001). However, it is not enough to recognize the need for change but more important is to implement change successfully.
Nikolenko and Kleiner in their Global trends in organizational design (1996) state that in response to these factors, three new forms of organisation structure have emerged, which are expected to adequately meet the constant change of the world.
Some organisations have created a network, whose core has been formed by mergers, alliances and acquisitions of large firms’ groups (Castells, 2000 cited in Lemoine & Dagneas 2003). Lemoine and Dagneas (2003) write in their research that the net is still in a constant development. Many individual smaller firms or groups of firms join or leave the net; the legal arrangements develop interminable, and changes in the net are the normal occurrence, rather than the exception. Early 2000s, the head of the network of transport and logistics services providers was the corporation E.ON, which initiated its activities by the merger of two large corporations: Veba AG and Viag; the aim was to create a company that will stand a chance for development in the global marketplace.
This management report will identify a structure of a company, describe its culture and culture of the country, where the company is situated, show the nature of changes that took place at E.ON, name reasons for possible resistance for those particular changes.
Table of Contents
Introduction
Organisational Structure
Organisational Culture and Leadership
Resistance to Change
Conclusion
References
Objectives and Topics
This report aims to analyze the organizational structure, culture, and leadership dynamics at E.ON, while identifying the nature of recent changes and the potential causes of employee resistance to these organizational shifts.
- Analysis of corporate structure and Market Units
- Application of Hofstede’s cultural dimensions to a German corporate context
- Evaluation of leadership styles and their impact on organizational development
- Identification of triggers and manifestations of resistance to change
- Strategic approaches for managing and mitigating change resistance
Excerpt from the Book
Resistance to Change
Depending on the change approach, it is probable that change efforts run into some form of resistance. When it was necessary to make some changes, E.ON culture was in a way ill-equipped to deal with the complex charges that a rule-based bureaucracy of entire German culture demanded.
E.ON IS, telecommunication service provider for its subsidiaries in Germany, implements two new projects during 2008/09: O2C (Offer-to-Cash) and Contract Conversion. The actual aim is to ease workflow and communication of employees between different subsidiaries in different countries. Documents must be rewritten corresponding to the subsidiary, its language and contract conditions, procedures must be changed, some job descriptions modified, promotions reconsidered. E.ON employees and managers are rather slow to pursue these changes. Such resistance may arise from parochial self-interest, when employees are afraid to loose something and thus focus only on their own interests, rather than the organisations ones. It is asked, why something should be changed if it has been working successfully for a long period of time. This often results in political behaviour.
Summary of Chapters
Introduction: Provides a contextual overview of modern business challenges and outlines the scope of the report regarding E.ON’s organizational evolution.
Organisational Structure: Details the group’s corporate hierarchy and the division into market units to enhance operational efficiency.
Organisational Culture and Leadership: Examines the German cultural context using Hofstede’s framework and defines the leadership style required to navigate complex organizational change.
Resistance to Change: Explores the psychological and systemic reasons why employees at E.ON resist new projects and discusses strategies to overcome such barriers.
Conclusion: Synthesizes the findings, emphasizing the critical role of leadership in facilitating successful, sustainable organizational change.
References: Provides a comprehensive list of the academic sources and data utilized throughout the research report.
Keywords
Organisational Change, E.ON, Corporate Structure, Leadership, Resistance to Change, Hofstede, Organisational Culture, Market Units, Global Marketplace, Change Management, German Business Culture, Strategic Management, Communication, Employee Participation, Organizational Dynamics.
Frequently Asked Questions
What is the primary focus of this management report?
The report focuses on analyzing the organizational dynamics, corporate structure, and culture at E.ON, specifically examining how the company manages and experiences organizational change.
What are the central thematic areas covered in the document?
The document covers organizational structure, the influence of national culture (specifically the German context) on business operations, leadership approaches, and the factors causing resistance to change.
What is the core research goal of the work?
The objective is to identify the structure of E.ON, evaluate the influence of German cultural dimensions on its leadership, and explore why employees might resist planned organizational changes.
Which scientific or theoretical framework is primarily employed?
The report utilizes Geert Hofstede’s "Five Dimensions" model of national culture and refers to theories by Nikolenko, Kleiner, and Kotter regarding organizational design and change resistance.
What topics are discussed in the main section of the report?
The main section details the E.ON group structure, interprets the German business environment through Hofstede's survey results, and analyzes the implementation of specific projects like O2C.
Which keywords best describe this study?
Key terms include Organisational Change, E.ON, German Business Culture, Leadership, Change Management, and Organisational Structure.
How does the "German filter" affect the management of E.ON?
The "German filter" reflects a preference for hierarchical structures, established rules, and detailed codes of conduct, which can sometimes slow down the rapid adoption of flexible international change initiatives.
What specific change projects are mentioned as examples of resistance?
The report highlights the "O2C" (Offer-to-Cash) and "Contract Conversion" projects at E.ON IS, which faced implementation hurdles due to the need for rewritten documentation and revised job descriptions.
- Quote paper
- Iryna Shakhray (Author), 2008, Management Report on Organisational Change at E.ON, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/120352
