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Perspectives of organizational transformation - Essay Example

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Perspectives of organizational transformation

BP Lima was established in 1955 beginning with the 380 full-time employees. It is a major producer of the industrial chemical products. It is stated that BP Lima constantly implements various approaches for improving the level of safety, environmental protection and health insurance for the staff. The safety of the production is the number one priority for the organizational performance. Management of the company actively exercises various community programs for the employees, as well as designs effective leadership structures for the better performance. BP Lima's plant was bought by Clark group in 1998 after having implemented the major organizational changes into the company structure. At present BP Lima plans to construct new plant with improved environmental requirements and higher level of cost-reduction. (Ledet, 2005)
BP Lima has faced the need for major organizational change when the threat of closing the plant was vivid and seemed irreversible. This threat was very effective in making people want and implement changes, because it affected absolutely everyone, and it was much more serious, than for example, cost cutting as it could be with other companies. The need for major organizational changes was realized not only by the management, but by each worker, though for someone it was later than for the others; however eventually the organization came down to understanding that without changing and transforming the organizational structure it would not be possible to keep the company floating.
Thus, the company was straight in implementing the so-called 'continuous improvement initiative'. (Ledet, 2005) As far as the threat of plant closure was serious, the volumes of this initiative implementation were large and touched each department of the organization. The company was able to create the Action Team, the aim of which was to concentrate on the elimination of the defects which already existed in the organizational structure of the plant, with making the work of the whole organizational structure more precise, and less concentrating on the planned maintenance work practices. (Ledet, 2005) The reason for this decision lied in the fact that planning itself only makes the general performance more efficient, but it does not eliminate the fields which are not necessary anymore, as well as it does not eliminate the drawbacks and defects which may exist in the company's organizational structure. 'Precision domain of the organizational transformation is when the amount of work to get done is reduced by eliminating the root causes of the losses, which are the defects that lead to loss production, waste, and/ or health, safety or environmental incidents'. (Ledet, 2005) BP Lima was able not only to keep its production, but to perform extensive improvement - the annual improvement was $45 million, and touched all spheres of the company's organizational structure. Lima was able to create a new leadership process - the whole leadership performance is now led through the so-called forums, which are held on the monthly basis and gather the heads of ...Show more


The aim of the work is to discuss the process of organizational changes with the example of the company which faces major changes, from the theoretical point of view, with considering the main drivers of these changes, their effect on the structure of the organization and other factors, which the company should take into account while implementing those changed into practice.
Author : dlangosh
Perspectives of organizational transformation essay example
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