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An evaluation of the strategies used to reduce resistance to change during business reengineering in Samancor Chrome

Thesis (MBA)--Stellenbosch University, 2000. / ENGLISH ABSTRACT: Samancor Chrome is an integrated ferrochrome producer with an estimated annual
ferrochrome capacity of 1.26 million tons, or approximately twenty-five per cent of total
Western world capacity in 1997. A decline in commodity pricing and other factors prompted
Samancor to initiate a business process reengineering (BPR) programme facilitated by
McKinsey and Company in the Chrome Alloys Division in 1997. The process however, met
with considerable resistance from the Unions within Samancor Chrome, although several
strategies were employed to promote acceptance of the process.
The technical report assesses the effect of strategies utilised to lessen resistance to change
during the business process reengineering programme initiated in Samancor Chrome. The
assessment reviewed strategies given in relevant literature to lessen resistance to business
reengineering processes and considered the applicability of such strategies within the context
of Samancor Chrome. Research data was obtained through semi-structured interviews with
Samancor Chrome senior management.
The research showed that Samancor Chrome had formulated a communication and a
participation strategy in preparation of the BPR programme. The strategies were the only
acceptance strategies suggested by McKinsey and Company in their role as the BPR
consultants. The context provided by the literature research showed that the participation
strategy and the formulation of the communication strategy were inappropriate within the
organisational context of Samancor Chrome. Conclusions regarding the situational validity of
the strategies were supported by the failure of the strategies to reduce resistance against the
BPR programme. A negotiation strategy was ultimately used as an acceptance strategy during the BPR programme, and contextual analysis showed the strategy to be appropriate although
only partially effective as implementation was still delayed.
Interpretative analysis of the research data indicated that a change management strategy for
future BPR initiatives should rather contain elements of education, communication,
retrenchment avoidance measures and consultation or negotiation within a management led,
top-down approach. Management should drive the BPR process in an emphatic manner, with
the programme execution and implementation being completed within a four to six month
short time frame. / AFRIKAANSE OPSOMMING: Samancor Chroom is 'n ge-integreerde ferrochroom produsent met 'n geskatte kapasiteit van
1.26 miljoen ton per annum, of ongeveer vyf en twintig persent van die totale Westerse
wêreld kapasiteit in 1997. 'n Reële verlaging in kommoditeits pryse sowel as ander faktore
het daartoe gelei dat Samancor Chroom in 1997 'n besigheids proses herontwerp oefening
onder leiding van McKinsey and Company in die Chroom Allooi Divisie geinisieer het. Die
proses is egter deur die Unies binne Samancor weerstaan, alhoewel verskeie strategieë
gebruik was om aanvaarding van die proses te bewerkstellig.
Die tegniese verslag evalueer die effektiwiteit van die strategieë wat toegepas was om
weerstand teen verandering tydens die besigheids proses herontwerp (BPH) in Samancor
Chroom te verminder. Die evaluasie neem ook strategieë vanuit toepaslike literatuur om
weerstand tydens besigheids proses herontwerp programme te verminder in ag, en oorweeg
die toepaslikheid van die strategieë in die konteks van Samancor Chroom. Navorsings
inligting is ingesamel deur semi-gestruktureerde onderhoude met Samancor senior bestuurs
personeel.
Die navorsing dui daarop dat Samancor Chroom kommunikasie en deelnemenings strategieë
in voorbereiding vir die BPH program ontwikkel het. Die strategieë was ook die enigste
strategieë wat deur McKinsey and Company in hul rol as BPH konsultante voorgestel was.
Die konteks deur die literatuur studie geskep, het aangedui dat die deelnemings strategie sowel
as die formulering van die kommunikasie strategie onvanpas was binne die organisatoriese
konteks van Samancor Chroom. Gevolgtrekkings aangaande die situasionele validiteit van
die strategieë was ondersteun deur die faling van die strategieë om weerstand teen die BPH program te verminder. 'n Onderhandelings strategie is uiteindelik as 'n aanvaardings strategie
tydens die BPH program toegepas, en konteks analise dui die strategie as toepaslik aan
alhoewel slegs gedeeltelik suksesvol, aangesien die program implementasie vertraag was.
Interpretiewe analise van die navorsings inligting dui aan dat 'n veranderings strategie vir
toekomstige BPH initiatiewe elemente van opleiding, kommunikasie, inkorting vermyding
maatreëls en konsultasie of onderhandeling binne 'n bestuurs gedrewe program benadering
moet bevat. Die program moet sonder vertraging gedryf word, met program voltooing en
implementering tussen vier tot ses maande.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/51600
Date12 1900
CreatorsHoll, Hugo J.
ContributorsDenton, M., Stellenbosch University. Faculty of Economic & Management Sciences . Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageEnglish
TypeThesis
Format118 p.
RightsStellenbosch University

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