There are several organizational change issues at Anglo-American to be addressed. Specifically, Carrol emphasizes efficiency and operational effectiveness and wants to pursue focusing on core operations and assets, such as accountability, responsibility, design simplicity, and clarity in the organizational picture (Griffin, 2022). However, Angel cannot solely focus on efficiency without considering effectiveness as an important course of action because she requires an understanding of the existing organizational design and the interactions between managers and employees. The current framework is separated based on products and business scope, which makes the structure inefficient and costly. This results in the CEO not having enough direct control over business operations, which is a significant organizational change challenge.
Large-scale acquisitions that the company has made to make frequent changes specifically allow for the appropriate assessment and maintenance of activities. Such a shift in the strategy’s implementation alongside the consistent acquisition in the international market can reduce the number of available opportunities for organizations to develop successful systems of monitoring (Griffin, 2022). What was not changed, however, is the excessive load on the management system of the organization, which could potentially lead to decreased opportunities and criteria of operations, which entails lower revenue generation for Anglo Americans. This problem remains unaddressed, calling for the increased attention of the organization’s management.
The main problem with strategic control for the organization entails the lack of direction, with having a strong leader who can guide the business toward success. In addition, there should be confidence in the structure that has been adopted. This means that a successful organization can make the much-needed changes in its departments, such as separating and combining them until they fit the environment of the newly-carried-out strategies. At Anglo American level of control, the problem is whether or not to standardize the operating structures within the organization.
Resistance to change in the organizational context creates significant barriers as it is exhibited by the unwillingness of leaders and/or workers to adapt to altered circumstances. The main point of resistance was demonstrated by the Anglo board when it comes to the Xstrata merger, arguing that the event could prevent the organization from doing its business without distractions. Such resistance is understandable because the merger could lead to an overhaul in the organizational design and processes, with questions remaining as to the need for an overhaul (Griffin, 2022). Because of this, the company must develop the firm’s assets and prove its value as an independent company in light of the resistance to the merger between Anglo and Xstrata.
For Anglo American, which operates in the mining sector, innovation plays an essential role. Innovation allows for reimagining mining as a process and making the business much more sustainable on a long-term basis. In addition, despite the challenges that come alongside strategic change, innovation can also enhance precision, which further leads to improved reliability, and performance, as well as the development of new capabilities (Griffin, 2022). Through innovation, tangible value can be delivered when it comes to the implementation of crucial strategies and programs underpinned by Anglo American operating model. The operational improvements across productivity, safety, and cost performance can be achieved with attention to innovation and the opportunities that it provides.
Reference
Griffin, R. W. (2022). Management (13th ed.). Cengage.