The Peculiarities of Organizational Change in the BP Amoco

Introduction

Organizational change is a fundamental process necessary for the successful growth of a company. At the same time, it is a complex issue because of the need to consider multiple aspects ad create a multidimensional model promoting the evolution of the crucial areas. Carnall and Todnem (2014) outline that the triggers of change might include the alteration in the target environment and market or the emergence of new methods more effective than previous ones. Under these conditions, Cummings and Worley (2018) are sure that change is a continuous process that should be given much attention as it leads to the organization’s renewal and it’s becoming more powerful. For this reason, it becomes critical to consider all existing factors and select the most sufficient and relevant model of change leading to positive outcomes.

The presented paper revolves around the BP Amoco case analyzing the change process the company initiated and the factors associated with it. Using the firm’s experience, the multidimensional nature of the process is discussed, and the factors indicating the necessity to start the process are outlined. Additionally, change is discussed as a continuous process implying the reconsideration of the attitude to generation and transition of knowledge, formation of new groups, and improved cooperation between them. The paper also touches upon the acquisition of competitive advantage via improving all processes playing a critical role in the further evolution of the company and its remaining one of the leaders in the market.

Triggers of Change

BP Amoco initiated a significant change process in the early 1990s as a response to the changing environment. The company emphasized the necessity to reconsider its functioning to meet new demands peculiar to the market. As a result, the major organizational principles outlining the basic principles of the company’s work emerged. Regarding these points, it is possible to state that the alteration in the external factors, along with the changing clients’ demands, became the major triggers of change (Zhexembayeva, 2020). BP Amoco emphasized the critical importance of reputation as one of the fundamental elements of successful growth and the role human resources and knowledge play in organizational processes. It means that the need to remain the potent actor at the international level, along with the altering views on a firm’s work, became the major triggers of change (Deszca et al., 2019). They influenced decisions and strategies made by BP Amoco’s successful CEOs.

Multidimensional Change

Another critical aspect of the restructuring and renovation process initiated by the company was its multidimensional nature. The top management correctly realized the fact that the improvement of one of its aspects is not enough to meet new demands and remain capable of struggling against competitors. For this reason, several structural alterations, such as cutting out layers of management, clarifying financial accountability, and improving performance, were initiated. This decision is explained by the fact that the functioning of any organization depends on numerous factors and the work of all its departments (Garavan et al., 2021). For this reason, the positive change cannot be limited by the reconsideration of only one factor. Instead, it is critical to ensure that the whole unit and central activities are rethought and new strategies are introduced.

Groups

Another critical idea outlined by the case is the outstanding significance of human resources and the necessity to organize the practical work of employees. One of the major central principles is that people work better in smaller groups (Gibbons, 2019). Regarding the idea of change, it means that the firm focused on establishing high-performance groups can be more successful in the future as it will help to create the basis for future improvement (Guest, 2017). The aligned and coordinated teams consisting of a limited number of individuals might cultivate new ideas and integrate them into the work of a unit (Hayes, 2007). Under these conditions, reconsidering the model of cooperation within the organization is key to successful transformation and boosting performance.

Knowledge Management and Change

Effective knowledge management can also be viewed as one of the critical elements of a successful change. BP Amoco’s case shows that the company devotes much attention to both explicit and tacit knowledge, their generation, and sharing. Thus, the first one is acquired through learning and codified in books, while the second one is generated through experience (Kirrane et al., 2017). For this reason, continuous change implies sharing between colleagues to ensure less experienced ones have the opportunity to cooperate with their successful peers and get tacit