Change Management Theory And Application In Organization

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Change Management Theory and Application in Organization

Change Management Theory and Application in Organization


The business that has been chosen for the paper is the BHP Billiton which is a multinational petroleum and mining company having it's headquarter in Melbourne, Australia. The company was created in the year 2001 due to the merger between Anglo Dutch Company “Billiton plc” and the Australian Company “Broken Hill Proprietary” Limited (BHP). The companies have been operating in the field of mining and petroleum sector for long time now and have made great reputation. Changes that have occurred in the organization includes since 2001, changes that have been occurred in the organization include the bid for the WMC Resources in the year 2005 and the purchasing of its rival company Rio Tinto Group in 2007 (BHP Billiton, 2012).

Sources of Change

The sources of change in the business and professional environment of BHP Billiton are considered to be that of the mergers and purchasing of the rival company along with the environmental risk related to the operations of iron ore. The changes with regard to the merger and acquisition of the rival companies have largely affected the operations of the company in terms of its share price value in the market. The takeover of Rio Tinto Group by BHP Billiton was refused in 2008 due to the increase in risks of the shareholders value. The company dropped the takeover by stating that it would increase the risks to the unacceptable levels due to the financial crisis throughout the globe. The company therefore arranged the mine scheduling and planning systems that was built and arranged by the Solve IT software. Other than that, changes in the company's program in the form of activity for raising awareness of its customers raised the environmental risk. The environmental risk loomed due to the interaction among the light vehicles and surface mobile equipment. Such interaction is considered to be the material risk for the employees of the company. This incident mainly occurred due to the use of the light vehicles and miniature trucks for stimulating the flow of traffic at various intersections (Galliers, 2010).

Change Management Risk

The first change that occurred in the company was that of acquiring mergers and purchasing rival company. The increase in the risk of shareholders value due to the merger and purchase of rival company was mainly subsided by refusing the takeovers. The effective management of ...
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