Pilkington: an Organisation in Transition
INTRODUCTION
This case study examines the company Pilkington Australasia, the need for change of which has occurred & the companies results through the implementation of proposed changes .
Pilkington Australia is a wholly owned subsidiary of the British Pilkingtown plc of which has been manufacturing glass within Australia since 1972.
The company has built its reputation as a world-renowned glass manufacturer through its constant commitment to quality. Pilkington Australia has also built its success through other company policies such as its commitment to the environment & strong OH&S awareness.
The glass industry Pilkington operates within is forever changing & developing. Pilkington, in response, has since evolved from specialising in the float glass process, to its company today of which has expanded to include value-added products & services, catering for a wider range of markets as well as the special energy & electronic markets.
Although Pilkington has experienced vast successes over the years, we may examine the company in regard to its change processes & how it is has managed organisational change to gain a greater understanding of this concept.
THE NEED FOR CHANGE
Both internal & external forces saw Pilkington see the need to implement change within their organisation to ensure continued success.
External;
-Globalisation saw increased foreign competition eg. Through the removal of trade barriers (GATT), of which saw prices become more competitive.
Internal;
-A strong overtime culture saw the employees unproductive eg. 70%of all wages spent on overtime, hence inefficient.
-Organisational structure hierarchial, did not promote autonomy from employees & hence lead to low levels of employee morale & commitment as it promoted an “us & them culture,” in regard to Management.
THE CHANGES PILKINGTON IMPLEMENTED
1. Changing Pilkingtons’ Organisational Structure
-Organisational structure was changed from traditional hierarchical to an inverted
This case study examines the company Pilkington Australasia, the need for change of which has occurred & the companies results through the implementation of proposed changes .
Pilkington Australia is a wholly owned subsidiary of the British Pilkingtown plc of which has been manufacturing glass within Australia since 1972.
The company has built its reputation as a world-renowned glass manufacturer through its constant commitment to quality. Pilkington Australia has also built its success through other company policies such as its commitment to the environment & strong OH&S awareness.
The glass industry Pilkington operates within is forever changing & developing. Pilkington, in response, has since evolved from specialising in the float glass process, to its company today of which has expanded to include value-added products & services, catering for a wider range of markets as well as the special energy & electronic markets.
Although Pilkington has experienced vast successes over the years, we may examine the company in regard to its change processes & how it is has managed organisational change to gain a greater understanding of this concept.
THE NEED FOR CHANGE
Both internal & external forces saw Pilkington see the need to implement change within their organisation to ensure continued success.
External;
-Globalisation saw increased foreign competition eg. Through the removal of trade barriers (GATT), of which saw prices become more competitive.
Internal;
-A strong overtime culture saw the employees unproductive eg. 70%of all wages spent on overtime, hence inefficient.
-Organisational structure hierarchial, did not promote autonomy from employees & hence lead to low levels of employee morale & commitment as it promoted an “us & them culture,” in regard to Management.
THE CHANGES PILKINGTON IMPLEMENTED
1. Changing Pilkingtons’ Organisational Structure
-Organisational structure was changed from traditional hierarchical to an inverted