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Organizational Behavior

Individual assignment II

G.G.N.M.L.C.K.Nawarathna
#17253
1. . Identify the type of change?

In 1994 the government partially privatized the ownership to Chevron Corporation and in 1998 company
became a Public limited company. After that company has been starting to change according the business
contest. Between 1994 to 2017 time periods two phase of major changers can be identified.

In 2001/ 2002 time Periods Company decided to adopt the right business model by utilizing their core
competencies. Therefore, they decided to transform its product orientation to a brand orientation.
Subsequently, they recognized the internal operations using the size of the workforce, organizational
structure, quality of product and the cost structure to prepare for the competition. Finally in 2002 VRS
scheme also introduce and reduce work force 380 to 120.after that due to global initiative work force has
reduce 120 to 82.
When consider all changers happen to chevron lubricant Lank PL can be identified, incremental change
to realign the way the organization operation, but in a more dramatic and faster manner. Organizational
change can be observed as a reconstruction change.

2. What were the forces, internal and or external, that had prompted the CEO to initiate
the change?

1. External forces

Liberalization of the lubricant market in Sri Lanka.

Competition has increased and 6 lubricant players who introduced imported brands to the market.

Chevron became public limited company after government made decision sell 39 % shares in CSE.
2. Internal forces
Internally made decision to stay competitive by focusing on core competencies and transfer company
production orientation to brand orientation.
Then overcome below three main barriers took part change.
Structural barriers: Right size work force / organizational structure and quality of product and the
cost structures has considered.
Skills barriers: Lack of productivity of the labors.
Cultural barriers: The archaic values and norms inherited the sate corporation which had created a
change resisted mindset among the former CPC employees of the company and their bad practices.
3. Do you think that the communication strategy adopted by the company to overcome employee
resistance can be adopted as a model in change management programs? Give reasons

How the change process itself is communicated to the employees is very important because it determines
how they react. If the process of what needs to be changed, how it needs to be changed and what success
would look like cannot be communicated, then resistance should be expected. Employees need to
understand why there is a need for change, because if they are just thrown the notion that what they have
been used to for a long time is going to be completely renovated, with that will come much backlash.

When we consider chevron case study we can identified areas how commination strategies used to
overcome employees resistance.

2001/2002- Re-structuring - in dealing with culture barrier, management has introduce VRC by purpose
of give retirement people who not accepting new culture. Where a big resistance was occurred by the trade
unions. One communication strategy was used as follow to overcome this issue
With support of Functional managers who established direct communication liked with employees and
persuade them to accept the package this was help to overcome resistance which were come from two
trade unions and majority accepted.

2010 - Re-structuring reduce work force 120 82. Workforce reduction has been done only with respect
to a limited number of positions had been identified as open.
The company adopted a personal communication strategy where by discussions were held only with those
employees whose positions had been identified as open. Due to successful communications unique
strategy was to prevent employee morale and performance. Furthermore restructuring process has been
done completely without any strikes or agitations.

By referring above points, my idea is communication strategy adopted by the company to overcome
employee resistance can be adopted as a model in change management programs in very effective and
productive way.

Reference
Reports | Welcome to Chevron Lubricant Lanka PLC.. (2017). Chevron.lk. Retrieved 6 July 2017, from
http://www.chevron.lk/reports
Chandrathilleke,K.L & Bakmiwewa,Y. (2014) Overcoming Workplace Barriers through re-structuring in Breaking barriers
to organizational performance: Sri Lanka Case studies, The Employees Federation of Ceylon.

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