CONTEMPORARY ORGANIZATIONAL EVALUATION 1

Contemporary Organization Evaluation

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CONTEMPORARY ORGANIZATIONAL EVALUATION 2

Contemporary Organization Evaluation

Organizational change entails how an organization undergoes altering structures,

strategies, procedures, or cultures of organizations leading to a new form. The shift from one

form to another can be deliberate to gain or lose specific features of the corporation to attain a

goal, or it can be less deliberate and occur because of factors outside the organization.

Nevertheless, during the change process, this can affect additional parts of the organization since

it's known that the change process can disrupt the corporation's normal functioning. Thus

organizational change can be an opportunity for growth and as a risk for losing; it may involve

redesign of tasks and responsibilities, thereby altering normal work operations. Therefore the

purpose of this paper will be to describe an organization and the change to which the corporation

is responding. Further, the paper will discuss how the change has disrupted the normal working

and how the corporation has responded to the changes. Certainly, an organization should be

ready for any organizational changes and implement strategies to implement the proposed

change.

The Organisation and Proposed Change

The selected organization is Nestle S.A, a Swiss international food and drink processing

company whose headquarters are in Vevey, Switzerland. The corporation recently created a

novel group approach and corporate expansion roles that would help the corporation identify

internal and external tactical growth prospects (Watrous, 2019). The corporation also decided to

incorporate the Nestle Waters industry into the Groups three geographic regions effective 1st

January 2020. In line with that, the corporation decided to form a strategic business unit that

would report to Patrice Bula, a member of the Executive Board and Head of Strategic Business

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units, marketing and sales (“Nestlé Global,” 2020). The changes effected at Nestles would ensure

strategic alignment globally, thereby enabling the management of core global functions.

The water business has been an essential part of Nestle’s nutrition, health, and wellness

policy. Since its acquisition in 1992, it has experienced momentous growth, becoming the

world’s leading bottled water company. With their quality and taste, their product line

comprising of Nestle Pure Life, Poland Spring, Perrier, and Acqua Panna, offer a convenient and

safe way of drinking water (“Nestlé Global,” 2020). The changes which were subject to

employee consultation where necessary would help Nestle better react to the varying customer

preference, thereby accelerating profitable growth and creating collaborations.

Degree to Which the Change has Been Disruptive

The change at Nestle and Nestle Waters business’ integration into its three geographical

zones has brought some changes to the executive board. The corporation’s CEO Ulf Mark

Schneider indicated that Maurizio Patarnello, who was the corporations’ deputy executive vice

president and head of Nestle Waters, would vacate the corporation. However, Patarnello was to

advise Nestle waters, thereby ensuring a smooth changeover to the novel arrangement (“Nestlé

Global,” 2020). The CEO indicated that the arrangement highlighted and necessitated by the

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change were the steps the corporation was taking to increase the performance of the water

business.

As a result of the changes, the Nestle Board of directors appointed Sanjay Bahadur, who

was previously “Head of Acquisitions and Business Development, to the Executive Board as the

Deputy Executive Vice President (“Nestlé Global,” 2020).” Sanjay’s role was to manage the

recently formed Group Strategy and Business Development Function, which would back Nestle

in the identification of internal and external development chances. The novel purpose would also

manage the corporation’s external corporations and licensing contracts for the Nestle Group

while overseeing the corporations’ venture capital actions.

Strategies Adopted in the Change Plan

Nestle Waters was an independent water division of Nestle S.A. However, the board of

executives decided to incorporate the Nestle Water business into three geographic regions. While

the previous Nestle Structure was responsible for bringing the business to its present size and

structure, the new strategy adopted in the change plan intended to use local responsiveness and

competitiveness (Watrous, 2019). Certainly, this is where the three geographical zones came into

play. Since they are the most confirmed and well-organized enactment and executives'

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configurations inside Nestle, the three zones would ensure the business proceeded to the next

level and achieved competitiveness while maintaining the level achieved by the previous Nestle

Waters structure.

Nestle envisioned pursuing a development approach that would get the corporation out of

increasingly low margins in the new structure adopted by the corporation while focusing on

high-value quality brands, functional waters, and flavored and carbonated products. Further, the

new policy led to enhanced nearness to the consumer from the new managerial configuration,

thereby making the water business live up to Nestles' growth and earnings potentials. Certainly,

during the first nine months of 2019, Nestle Waters' volume had fallen by 2.2 percent and with

the changes, the corporation hoped it would manage to respond more quickly to the changing

consumer preferences (Lucas, 2019).

Effect of Change on Stakeholders

Nestle's changes that entailed integrating the corporation with the three geographical

zones were not met by any recorded resistance from the stakeholders. The stakeholders involved

in Nestle's operations include the employees, customers, business partners, and the communities

in which the corporation operates ("Annual Review 2019", 2019). However, the corporation

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planned to consult with the employees where necessary during the change process. As a result,

consulting with the stakeholders meant that the corporation became better prepared to utilize its

strong local proficiency, better react to the quickly varying customer preference while

accelerating profitable growth, and creating synergies.

Effect of the Change on Interdepartmental Collaboration

Interdepartmental collaboration entails the level of a team’s teamwork with other

members of other group. During the interdepartmental collaboration, it is important that teams

align their energies with other groups, which they are dependent on to achieve organizational

objectives (Cha et al., 2020). Without the presence of organized inter-team determinations, it is

probable for the individual teams to be prosperous, but the association to fail. Nestle integrated

its Nestle Water department and incorporated with the Groups three geographical zones. Such a

move would necessitate interdepartmental collaboration between the previous Nestle Waters and

the new department found in the three geographical zones. According to “Annual Review 2019”

(2019), the move was a step towards harmonizing Nestles’ organizational structure, which meant

that some departments had to be integrated into other departments. Therefore, for the

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organization to achieve its objective, which necessitated the change process, then the different

departments had to work together.

How the Leaders Responded to the Change

The change experienced at Nestles Waters brought a lot of structural changes in the

corporation. Overall, the strategies the corporation implemented worked to the best of the

corporation. Before the integration, Nestle Waters sales had decreased by 0.8 percent to CHF

7.8billion ("Annual Review 2019", 2019). However, with the integration, the corporation hoped

to understand the consumer preference that was constantly changing across the geographical

locations. The leadership at Nestles was also supportive of the change process. Despite some

being declared redundant because of the integration, they offered their services in other

capacities to the new structure convened by the Board of Directors, for example, Maurizio

Patarnello.

Recommendations for Effective Change

Some of the modifications that the leaders of the corporation should adopt to address the

change better include monitoring and aligning the new Nestle structure with other organization

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initiatives. In such a case, Nestle can discover useful overlaps between initiatives and potential

conflicts that can emerge during the change process.

Leading a change process is an essential part of the top echelons of management. As a

result, Nestle should have adopted additional strategies, such as the creation of structural change.

According to Makumbe (2020), this entails ensuring the alteration is grounded on the depth of

comprehending the matters surrounding the change and reinforced with a reliable set of tools and

processes, which lacked in Nestles case.

Conclusion

From the above analysis, it is evident that the change process can have tremendous

impacts on an organization leading to variation in the mode of operation. This is the case that

happened in Nestles S.A, where Nestle Waters was integrated into the three geographical zones

making up the parent company. With the changes, the corporation had to declare as redundant

the corporation's deputy executive vice president and bring in new talent to facilitate the change

process. Certainly, communication, leadership, and employee engagement play a central role in

change acceptance.

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References

Annual Review 2019. Nestle.com. (2019). Retrieved 2 December 2020, from

https://www.nestle.com/sites/default/files/2020-03/2019-annual-review-en.pdf.

Cha, J., Kim, Y., Lee, J., & Bachrach, D. (2020). Transformational Leadership and Inter-Team

Collaboration: Exploring the Mediating Role of Teamwork Quality and Moderating Role

of Team Size. Group & Organization Management, 40(6).

https://doi.org/10.1177/1059601114568244

Lucas, A. (2019). Nestle’s plan to reinvigorate bottled water growth includes caffeinated water.

cnbc.com. Retrieved 2 December 2020, from https://www.cnbc.com/2019/12/09/nestles-

plan-to-reinvigorate-bottled-water-growth-includes-caffeinated-water.html.

Makumbe, W. (2020). Predictors of effective change management: A literature review. African

Journal of Business Management, 10(23). https://doi.org/10.5897/AJBM2016.8208

Nestlé Global. Nestle. Com. (2020). Nestlé announces changes to its waters business, establishes

Group Strategy and Business Development function. Nestlé Global. Retrieved 2

December 2020, from

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https://www.nestle.com/media/pressreleases/allpressreleases/waters-business-group-

strategy-business-development.

Watrous, M. (2019). Nestle announces several organizational changes. Bakingbusiness.com.

Retrieved 2 December 2020, from https://www.bakingbusiness.com/articles/49618-

nestle-announces-several-organizational-changes.