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Challenging Responsibilities: HRM Add in library

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Questions:

Task 1: In order to be competitive organisations, such as Cadbury, need to embrace change. Critically discuss the impact of restructuring and redundancy on the situation of Cadbury and its impact on the employees?

Task 2: Reflective report that identifies and evaluates Cadbury’s Factory at Bourneville focus on Corporate Social Responsibility?
 
 

Answer:

Task 1: In order to be competitive organisations, such as Cadbury, need to embrace change. Critically discuss the impact of restructuring and redundancy on the situation of Cadbury and its impact on the employees.

Cadbury is the international company, whose headquarters are located in the UK (Ella 2009). The manufacturers as well as distributors of the company are spread over the world (Ella 2009). The company operates its business in different regions like Europe, North America, Africa, South America, Pacific, Asia, Ireland, as well as in Britain (Ella 2009). The products of the company are distributed in around 60 countries. Cadbury leads the global market by taking first position in the chocolate as well as confectionary business (Ella 2009). The share of Cadbury in the international market of confectionary is around 8% with the total revenue gain is around $141 billion (Ella 2009). The structure, size, markets as well as products of the company have actually proved its significance as the socially responsible company all over the world (Ella 2009).

Cadbury has employed thousands of people as their stakeholders, and they have millions of customers. The commitment of the company is towards social responsibility that keeps the check on welfare of many families (Ella 2009).  The report discuss about the case of Cadbury, in which around 200 workers have move away from the Cadbury Bourneville plant that had the payoff of around £100,000 (Griffin 2015). There were around 205 workers working in that plant, who took the voluntary redundancy that has left and has taken the salary of 4-6 weeks for each year for their service, which sends the average payouts in around 6 figures (Griffin 2015). The arrangement that view the manufacturing site base tries to cut through quarter is actually part of the deal, which has secured the plant at Bourneville for around 25 years (Griffin 2015). The case mentions that there would be around £75 million program related to the investment in the compulsory job loss and new production line (Griffin 2015).

The aim of Cadbury is to work together through creating brands of people love. The aim of the company is also make such a company that could be judged among the world best business company that is admired, successful, as well as significant (Bowers 2009). Cadbury undertakes corporate social responsibility as the main agenda of its company (Bowers 2009). The organizational members such as global business leader’s forum, community business, and business ethics institute. All these organizations try to enhance the effects of the company it has on the society (Bowers 2009). 

According to the case, employees were given the brief about the agreement that follows the long term conversation over the document of the American owners at Cadbury that is known as High performing Bourneville (Griffin 2015). This document has actually warned the employees to demonstrate the embrace towards the new practices of working over the risk that is seen through the job moved (Griffin 2015). This report will discuss about the impact of the redundancy and restructuring in Cadbury and its impact on the employees along with the reflection on Cadbury Bourneville corporate social responsibility.

 

The case study related to the Cadbury is actually illustrated through the impact it has caused to the employees (Johnson, Scholes and Whittington 2005). The entire process includes about the company that is going through the transformative changes (Johnson, Scholes and Whittington 2005). This is so that the nature related to the changes is basic and large scale. Simultaneously, the impact is quite permanent and could be viewed for long period of time (Johnson, Scholes and Whittington 2005). This issues increase the question related to the uncertainty that brought the high level of anxiety (Johnson, Scholes and Whittington 2005). As per the Doina, Mirela and Constantin (2008) the three step model could be divided into two key forms such as learned and survival anxiety (Doina, Mirela and Constantin 2008). The survival anxiety tries to push the changes where else the learned anxiety tries to obstruct the changes. Cadbury holds the complex supply chain along with its indirect relations with around 4000 suppliers, this creates the challenge and it also ensures that the suppliers are of similar standards Barney and Hesterley 2008). It’s quite important as the suppliers are the one that could affect both the environment and the society in bad terms, and this could impact the reputation of the company (Barney and Hesterley 2008).

Along with this, sustainable sourcing also tries pertaining the employment as well as recruitment in the company. Actual Cadbury company is influenced through the values of Quaker on the family of Cadbury, who has started the company before 150 years, and its values relates with social reform, justice, as well as equality (Bass 1990). Therefore, from the outset, the company treats its employees with both care and respect to undertake the welfare activities (Goldstein and Ford 2002). The company has sited near the Birmingham that is more than the factory and it even has various amenities like sports and housing facilities, parks that are all located at the actual complex (Goldstein and Ford 2002).

For the purpose of integrating the changes, the Schein’s theories has suggested about the inclination towards the reduction of learned anxiety (Carnall 2007). Basically, there are around three main ways that could be invested as per the case and the same has created impact on the employees working in Cadbury (Goffee and Jones 1998).

Firstly, the parochial self interest consideration will require looking towards how the different groups of companies will actually react over the immediate interest within the organization (Goffee and Jones 1998). Through the changes occurring in the management, the staff working at Cadbury will be reassigned towards the new job as well as positions. This might impact the people and mainly the management (Goffee and Jones 1998). The expected reshuffling of the employees through the HR will view the staff of Cadbury undergo through the series of test of reemployment for allocating the appropriate task (Goffee and Jones 1998).

 

This implies the potential loss of the authority and power mainly for the leaders in Cadbury that are relevant at their position that results into the increase in conflicts among the organizational interest as well as self interest (Reuters 2009). Therefore, the move towards quitting by the employees might be explained through the clash in the interest of the management and the employees (Reuters 2009). Next relates with the misunderstanding that might be referred since the top management of the company could be referred as inconsistent in passing the messages where else the middle level mangers could be failed to interact in proper way on regular basis with the employees (Reuters 2009). They will actually put off the delivery that is deemed as the negative perspective (Griffin 2015). Along with it, Cadbury faced the challenges of increasing sales with the main consideration over the society health issues. Increasing sales is important for the normative stakeholders as they address the health issues, this was told to me by one of the stakeholders of the company (Adolph, Pettit and Sisk 2009).

Simultaneously, staff is actually interpreted to be denial and tries to avoid the truth (Griffin 2015). They are also skeptical of the success and are not interested to move out of their comfort zone for embracing the changes (Griffin 2015). Lastly, the change of tolerance is quite low, because the previous staff of Cadbury might take it pride in how they actually do their work (Griffin 2015). The management thinks in other way and they thought it as desirable for the company and might get contradicted with the new staff (Rodriques 2000). The previous staff of Cadbury might reject towards the changes, while the takeover company might get abide with carrying out the tasks (Rodriques 2000). The model of Psychological stages reaction through Cameron and Green (2009) is adapted by Moeller (2009) has actually viewed the impact of the individual changes occurring with the workers at Cadbury. The company is focused towards bringing improvements in the working as well as social conditions of both the community and the employees (Barney and Hesterley 2008). Due to the international organizations operating in the developing countries has to face the problem of low wages, and for that they are blamed over taking the innocence of the workers through low wages (Anand and Nicholson 2004). Through this, partners of Cadbury try to advocate over the human rights in various Nations.

Model stages related to the Psychological reaction (Moeller 2009). When the company based in America announced about its acquisition of Cadbury in the year 2010, they were actually become shock between the stakeholders and the employees of both the organizations, as the speculation increases (Torrington, Hall and Taylor 2009). At the time of acquisition of the Cadbury, subsequently the acquisition increase their plans for smoothing the entire process of integration with the competitors based in the UK to move in confectionary business (Torrington, Hall and Taylor 2009). However, at this particular stage the basic sentiments between the people are denial. The staff even explored it challenging to move at any certain stage (Torrington, Hall and Taylor 2009).

Change implementation at the various organizational levels in acquired company starts to incorporate and might explore for the new managers, employees, as well as teams (Torrington, Hall and Taylor 2009). At this particular stage, employees might experience about the depression and tried to let out the key idea that most of the personnel might not come from the last stage, and they will also stay out with the previous phase; therefore, it wouldn’t complete with this cycle (Torrington, Hall and Taylor 2009). For the perspective of business, around £75 million investment has taken place for enhancing the productivity and minimizing the cost for considering over the whole as the small cost to pay for attaining the leverage of profit margin of popular chocolate brands (Torrington, Hall and Taylor 2009). The £75 million will appear at certain point, or either the relocation strategy of the Bourneville workforce suspect about it (Torrington, Hall and Taylor 2009).

 

Cameron and Green (2009) have undertaken the confrontational approach at the side of staff and this briefing of the team is viewed as in concise and is far from the transparency (Cameron and Green 2009). The current redundancies are impacted the community of Bourneville as well as business that depend on the trade through the reducing workforce (Cameron and Green 2009). The people and workforce of the Bourneville needs the successful Cadbury and are ready to work for it. It is rightly said that it is actually true that many changes are happening that has impacted on the life of the people and sometimes they also get upset with the changes (Cameron and Green 2009).

It’s noted that constant negotiation has happened with the union for around 12 months, and after that new line started and will are running (Schein 2009). Cadbury has mentioned that they are running to keep up with their site open as well as union could worked hard for reducing the effects of changes, but at the same time one needs to be competitive against the various other factories (Schein 2009). There are many people, who are not interested to work at Cadbury (Leopold, Harris and Watson 2004). Various workforce sections of particular age feel that they are at the vulnerable position in the company (Leopold, Harris and Watson 2004). It is evident that changes could be unsettling for any person and one should understand about rolling out the £75 million investment done in Bourneville; therefore, the responsible company will offer the complete support for everyone impacted (Leopold, Harris and Watson 2004).

For embracing the changes in the company, its important to understand the stakeholders of the company, who play significant role in bringing changes; therefore, first was the consumers that are normative stakeholders of the company, as they are the one that trust the company while delivering the quality items. Cadbury also tries to create direct impact over consumer’s life (Adolph, Pettit and Sisk 2009). Along with this, company holds the responsibility to ensure that the items could fulfil the demands of the consumers of quality. Moreover, the company is also depending over the consumers and target the audiences for the quality items as well as innovation (Adolph, Pettit and Sisk 2009). In other context, Cadbury leaves the direct impact over the consumers. Next are the retail customers of the company (Adolph, Pettit and Sisk 2009). Retail customers deliver the items of Cadbury in the marketplace. They are stakeholders as they have invested for delivering the products (Adolph, Pettit and Sisk 2009). They even hold trust on the ability of the company to fulfil the demands of products.

Suppliers are other stakeholders of Cadbury, who are the derivative stakeholders of the company, as they hold the stake in the company in their offset business, and they are the one that deliver the raw material to the company (Goldstein and Ford 2002). Along with this, the stake within the company is their customers (Goldstein and Ford 2002). If the Cadbury has good business, and if something went wrong it leads in the reduction of sales, and suppliers are the one that gets impacted (Goldstein and Ford 2002). It’s also true that success of the company also depends on the suppliers (Goldstein and Ford 2002). Next are the charities and NGOs that directly influence the company (Goldstein and Ford 2002). The impact of the company is same of their impact on the company as it is relied over the necessity. In Cadbury NGOs are the stakeholders as they get benefit through the policies of the company (Goldstein and Ford 2002). Next is community and government, and they attain benefit from the company and simultaneously create influence on the company in significant way (Cameron and Green 2009). Government also get benefit from the company in the form of taxes and social initiatives from communities (Cameron and Green 2009).

It’s noted that transformational changes happening in the company, employees were severely impacted, as they have to leave the company and had to adjust with the new tasks and new environment. The report mention about how the company and the employees embrace with the changes happening through restructuring as well as redundancy in the organization.

 

Task 2: Reflective report that identifies and evaluates Cadbury’s Factory at Bourneville focus on Corporate Social Responsibility

Cadbury is the renowned name in the chocolate world, but the legacy of the company is just more than the chocolate factory (Maginn 2007). During my visit at the Cadbury factory, I got the opportunity to learn about the corporate social responsibility practice by the company (Maginn 2007). The company believes that every human being needs to be equally treated and they should live in peace and that too under the social reforms and social responsibility (Barney and Hesterley 2008).

Being a part of the society, Cadbury follows the approach of the business that lies towards the ethical behavior and select the relationship with the group of stakeholders. I have noted that company believes is respecting the rights of people and ethical trading practices as their basic way of working (Bowers 2009). The Cadbury also tries to look around for sustainable sourcing as well as health issues (Anand and Nicholson 2004). The main issue that highlights is related with the change in climate, humanitarian issues, health issues as well as sustainable sourcing (Anand and Nicholson 2004). The issues related to humanitarian are mainly concern with the speculations over the role of international companies to work as the violators of human rights (Anand and Nicholson 2004). During my visit at the Cadbury located at Bourneville, they came to learn about the climate change issues, and I also noted that the company quickly addresses the requirement of having the waste management (Barney and Hesterley 2008).

Next I found about the sustainable souring that concern about the issues related with the suppliers that could be business to business kind of issues (Barney and Hesterley 2008). As the international manufacturer, Cadbury holds the high demand over the suppliers such as Cocoa producers, and therefore, it is important to get involved with the raw material sustainability (Barney and Hesterley 2008). I learned that sustainability is the key for attaining the sustainable development of Cadbury, as when the resources get scare they will be failed in fulfilling the market demands (Barney and Hesterley 2008).

As per the Corporate Social Responsibility Report I read it mentions the Cadbury has adopted the sustainable sourcing (Barney and Hesterley 2008). Next I explored about the social responsibility of Cadbury that was focused towards health issues and its resolution (Adolph, Pettit and Sisk 2009). As Cadbury is the manufacturer of confectionary items, health issues might occur for the company (Adolph, Pettit and Sisk 2009). The increasing popularity related to the health issues like diabetes and obesity might generate the negative effects over the confectionary consumption (Adolph, Pettit and Sisk 2009).

Stakeholders informed that the increasing concern over the health that is drive through the media over the healthy lifestyle as well as importance of fitness (Adolph, Pettit and Sisk 2009). This also impacts the demands of the consumers over the confectionary due to the consumption of the sugar that results into the health diseases. Therefore, I analyzed that health issues in the confectionary market often accrete influence over the Cadbury (Adolph, Pettit and Sisk 2009). Stakeholders taught me that they usually explore the ways for marketing the confectionary items by addressing the health problems. Through addressing these issues, Cadbury tries to fulfil their corporate social responsibility (Adolph, Pettit and Sisk 2009).

 

References

Rodriques, M. V. 2000. 'The Meaning and Process of Communications', Perspectives of Communication and Communicative Competence, (1st edn). Concept Publishing Company

Bass, B. M. 1990. 'Organizational Dynamics', From Transactional to Transformational Leadership: Learning to Share the Vision. Concept Publishing Company

Cameron, E. and Green, M. 2009. Making Sense Of Change Management: A Complete Guide to the Models, Tools and Techniques of Organizational Change (2ndEdition). Concept Publishing Company

Moeller, S. 2009. Surviving M&A: Make the Most of Your Company Being Acquired. John Wiley &Sons Ltd

Adolph, G., Pettit, J. and Sisk, M. 2009. Merge Ahead: Mastering the Five Enduring Trends of Artful M&A). Booz &Company Inc

Maginn, M. D. 2007. Managing in time of change. McGraw-Hill

Cameron, E. and Green, M. 2009. Making Sense Of Change Management: A Complete Guide to the Models, Tools and Techniques of Organizational Change (2ndEdition). Kogan Page.

Schein, E. 2009. 'What gets in the way of change: resistance to change'. London: Kogan Page Limited.

Goldstein, I. L. and Ford, K. K. 2002.'Training in Organisations' (Fourth Edition). Sage.

Torrington, D., Hall, L. and Taylor, S. 2009. 'Human Resource Management'. University of Sunderland

Leopold, J., Harris, L. and Watson, T. 2004. 'The Strategic Managing of Human Resources'. University of Sunderland

Anand, N. and Nicholson, N. 2004. Change: How to adapt and transform the business. Norwich: Format Publishing

Barney, J.B. and Hesterley, W.S. 2008. Strategic Management and Competitive Advantage: Concepts and Cases. New Jersey: Prentice Hall

Bowers, S. 2009. ‘Cadbury warns of culture clash under Kraft’. The guardian. [Online] Available at: https://www.guardian.co.uk/business/2009/oct/21/cadbury-kraft-sales-profits-job-losses  [Accessed on 25th April 2015]

Carnall, C. 2007. Managing Change in organizations 5 th Edition. Harlow: Pearsons

Doina, R., Mirela, S., and Constantin, R. 2008. The organizational Culture and the Factors of its Formation. [Online] Available at: https://steconomice.uoradea.ro/anale/volume/2008/v4-management-marketing/099.pdf [Accessed on: 25th April 2015].

Goffee, R. and Jones, G. 1998. The Character of a Corporation: How Your Company’s Culture Can Make or Break Your Business. London: Harper Business

Johnson, G., Scholes, K. and Whittington, R. 2005. Exploring Corporate Strategy 7 th Edition. Harlow: Prentice Hall

Reuters. 2009. ‘Cash not culture to decide Cadbury fate’. [Online] Available at: https://blogs.reuters.com/columns/2009/11/30/cash-not-culture-to-decide-cadbury-fate/  [Accessed on: 25th April 2015].

Ella, J. 2009. Cadbury: The legacy in Birmingham. [Online] Available at: https://news.bbc.co.uk/local/birmingham/hi/people_and_places/history/newsid_8412000/8412655.stm [Accessed on: 25th April 2015].

Griffin, J. 2015. £100k payoffs for Cadbury Bourneville workers. [Online] Available at: https://www.birminghammail.co.uk/news/midlands-news/100k-payoffs-cadbury-bournville-workers-8448093 [Accessed on: 25th April 2015].

Griffin, J. 2015. Cadbury culture 'being smashed' by US owners.  [Online] Available at: https://www.birminghampost.co.uk/business/business-news/cadbury-culture-being-smashed-owners-8722211 [Accessed on: 25th April 2015].
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