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company called YPF. The company is noted to suffer from several problems associated with culture change and the need to remain competitive. We therefore begin this work by presenting a problem statement as well as a presentation of the specific problems that affects the operations of the company. We then proceed to the presentation of the alternatives solution for each of the problems that are facing the company. A conclusion is then presented on how to best tackle the issues of organizational change (change management strategies). An implementation of the solution to the problems is then presented in a detailed and systematic manner.
YPF S.A is a company which has undergone a series of changes to its leadership, organizational processes, business processes as well as organizational policies since its inception. In this paper, we present an in-depth analysis of the organization. The company is noted to suffer from several problems associated with culture change and the need to remain competitive. We therefore begin this work by presenting a problem statement as well as a presentation of the specific problems that affects the operations of the company. We then proceed to the presentation of the alternatives solution for each of the problems that are facing the company. A conclusion is then presented on how to best tackle the issues of organizational change (change management strategies). An implementation of the solution to the problems is then presented in a detailed and systematic manner.
Ever since YPF S.A was formed, it has suffered from a series of drawbacks as a result of its operating environment. The company's main problem at the moment is however related to the fact that it is faced by a major change in its organizational culture. The privatization, mergers and acquisitions, loss of a transformational leader as well as the creation of new organizational processes and policies has created a resistance to the change process within the organizational framework. Other than this, the company is also faced with a myriad of problems such as;
Resistance to organizational change
The changes within YPF's human resource function
In order to achieve better performance outcomes as well as realize its strategic intentions, YPF S.A initiated a radical change to its organizational design as well as the HR structure. The programs included' promotion from within, identification as well as development of high potential performers, management by objective (MBO), peer recruiting from certain targeted universities, customized training of all of the professionals as well as pay for performance within the entire organization.
YPF is faced with a dilemma on how to best formulate strategies as well as practical implementations plans that would enable it to enhance the level of its economic performance.
The environmental challenges facing the company are climate change, carbon as well as the emission of other forms of greenhouse gasses. The concept of energy efficiency is another area of concern for the organization. The company will face series challenges in regard to issue of environmental protection such as maintenance of good air, water and land quality.
This is another challenge for YPF will face, extractive and power companies are cyclical businesses driven by commodity price fluctuations and prices could grow substantially or not. There is no way to predict it or control it. YPF should keep production costs low.
Oil & Gas discoveries
The world's suppliers of oil and gas aim to provide reliable and affordable supply of energy needed to grow the global economy, and to do so without harming the environment. However it's getting harder and harder to find oil and gas, oil and gas reserves are becoming more difficult and more expensive to find and exploit. These areas are far distances from consuming market. So YPF should find an economic ways to solve this problem.
Social and Employee Retention
Social challenges include providing good wages and healthy, safe working conditions to respect for human rights and a commitment to community development. Retaining top talent is the cornerstone of any great recruitment strategy. The ability to retain employees in oil and gas companies is more important now than ever. With growing demand for energy, companies need greater production and a larger workforce. So retain the experienced workforce and their knowledge and skills, is crucial to the future of the industry.
This is an ongoing concern. Aging infrastructure and environmental conditions all can threaten the supply of oil or gas pouring through miles of pipeline. It is also finding it more difficult to locate new pipeline; there are environmental and social concerns blocking new developments or expansions.
Scarcity of Natural Resources
The fact that the company deals in products which are finite means that it has to try to reinvent itself into a sustainable business model.
Various forms of political upheavals within the company's country of operation are noted to have adverse effects on its operation. Argentina's violent and highly turbulent political environment coupled by the strong military influence have created constant interference for the operation of the company.
The fact that the company just has a few programs (performance-based reward systems) as well as training programs does not entirely serve to motivate all employees in the current and future workforce. The company should therefore make efforts of coming with both intrinsic and extrinsic reward systems.
The company suffers from stiff competition from its competitors who are far much powerful and richer in regard to capital base, technology as well as expertise.
The company must come up with a special department which is mandated with the taking care of all environmental issues. Special focus and attention must also be given to issues of sustainability as well as environmental conservation. A corporate social responsibility programme must also be instituted.
Due to the fact that the price of production is not easy to predict, the company should strive at keeping the production cost low and only investing in the essential parts of the business.
Oil & Gas discoveries
The company must invest in the latest oil exploration equipment and technology that would lead to a general reduction in the oil exploration costs.
Social and employee Retention
The company should institute a rigorous employee motivation program. This is discussed into detail in the implementation part
The company should invest in intelligent piping technologies. This would allow it to easily detect and contain any leaks in its pipeline.
Scarcity of Natural Resources
The scarcity of natural resources means that the company must invest in more sustainable technologies.
Political interference must be curtailed by the establishment of good relationship with the government, the people as well as the civil society. This is by following all rules and regulations (laws) that govern operations, environment and human resource.
The company must establish a competitive advantage by investing in better technologies to allow it reduce production costs and subsequently provide services at a better price. The company must also use better logistical support to ensure that it remains profitable.
For YPF to succeed in being profitable in the current and future dynamic and highly competitive marketplace, it must initiate a transformational program based on the principles and ethics of change management. Change management is a difficult exercise as indicated by the work of Sirkin, Keenan and Jackson (2005). Change management refers to the systematic approach of dealing with the change to an organization's culture.YPF must adequately teach its workforce and management how to embrace organizational culture change. This is because a successful adaptation to the changes to the organizational culture is very crucial for the present and future survival of YPF.
According to Mabin, Forgeson & Green (2001), resistance to organizational change can be classified into three main categories; these include individual, organizational as well as group. The organizational factors are derived from the threats that are caused by poor organizational structures and processes. Organizational culture change is a great threat to the social norms as well as group cohesiveness within the given organization. According to Bernerth (2004) personality traits are another source to resistance to culture change within an organization.
For YPF to succeed in the implementation of effective change management strategies, it must be guided by the conceptual framework that was advanced by Lewin (1951).The force field theory developed by Lewin is very crucial for the successful change management at YPF. This means that the organizational change at YPF should be carried out in three distinct stages at all times. These stages are unfreezing, moving and refreezing as indicated in the work of Levasseur (2001).
For YPF to succeed in being profitable in the current and future dynamic and highly competitive marketplace, it must initiate a transformational program based on the principles and ethics of change management. Change management is a difficult exercise as indicated by the work of Sirkin, Keenan and Jackson (2005). Change management refers to the systematic approach of dealing with the change to…[continue]
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