Change ManagementEssay Preview: Change ManagementReport this essayTrying Rewards to Achievement of Key Strategic Targets. Rewards and compensations are integrative and essential elements in the workplace environment, as it aims to motivate individuals to get a job done. It has been reported that it is based on the Instrumentality Theory, which states that people will be motivated to work if rewards and penalties are tied directly to their performance. It is also based on the theory of reinforcement, stating that with experience in taking action to satisfy needs, people perceive that certain actions help to achieve their goals while others are less successful (2002). In this regard, it can be understood that providing rewards to individuals motivate them to achieve and attain their goals. Similarly, this principle goes to be applicable to the whole organization, as it becomes generally motivated and driven, given the fact that the achievement and fulfillment of their goals would allow them to sustain and maintain their financial and industry status. As such, the key strategic targets of organizations refer to their goals and objectives, and thus can be achieved and attained through positive reinforcements. However, the success of the whole organization lies on the individual motivation and achievement of its employees, making individual reinforcements and rewards essential. Based on the above discussion, eight components of managerial tasks can be used in strategy execution. Such components can be used to describe and evaluate the strategy of Procter & Gamble on implementing Organization 2005 in their system. Organization 2005 aims to improve the companys competitive position and generate operating efficiencies through more ambitious goals, nurturing greater innovation, and reducing time-to-market, and such goals were to be accomplished by substantially redesigning Procter & Gambles organizational structure, work processes, culture, and pay structures (2005). Using the eight components of strategy execution, carrying out of the companys strategy can be described.
In terms resource allocation, it can be perceived that Procter & Gamble was able to improve on this first component through determination of the fact that the development of their company lies on proper allocation of time and effort on human assets, financial assets, and marketing assets of the company. Resource allocation was improved and developed through the implementation of the strategy, as Lafley focused on the improvement of the companys operations and profitability, and in rebuilding the management team of the company. In addition, the company needs additional financial assets, as substantial costs are involved in the implementation of the strategy. In this regard, it can be assumed that due to the implementation of the Organization 2005 strategy, significant changes can be observed in the company, such as changes in the officers, employees and members of top management, and
Discovery
Procter & Gamble’s plan for discovery and exploitation of shale gas resources was an effective part of the project. For example, the company began the acquisition of Enron, including a patent for a similar resource and the creation of a number of subsidiaries and financial instruments. The Company also started the acquisition of Dorna and the acquisition of Uptown Energy Services LLC. Procter and Gamble also purchased the majority of The Mothman Oil Company, acquired from Dorna in 2007. With respect to these acquisitions, one reason the Company is considered to have started a new business is that it allows Procter & Gamble to grow its revenues and generate new revenues at lower cost, which will in turn make it more profitable. Procter and Gamble have invested to reduce total net assets of their new business. Procter and Gamble invested over $100 million,$50 million of this amount through acquisitions, restructuring, licensing, and other acquisitions with a total value of $100 million to $15 million, in addition to $12 million in investments (the “Investments”).
During the 2012-13, 2012-13 and 2013-14 financial years, Procter & made investments that cost approximately $10 million, $3 million and $10 million. In fact, this amount exceeded the “Total Investment”, in the last quarter of 2012, of $6 million to $12 million.
Financial Results – In the first quarter of 2013, the Company generated $24 million,$11 million,$12 million, and $12 million in net income. In the second quarter of 2013, during their initial public offering, only $16 million of Net Income was created in net income. The Company also raised capital expenses of $2 million, for the entire first quarter of 2013 and $4 million and $8 million in the second quarter of 2014, including a substantial purchase of the majority of the outstanding corporate debt under the 2015, 2016, and 2021 Plan. In the third quarter of 2013, the Company made further investments of approximately $29 million, including financing of $5 million, $5 million, and $5 million in the first quarter of 2014.
Procter & Gamble’s net income during the third quarter of 2013 was $20 million, $31 million, $38 million, and $41 million, respectively, which is the highest figure available of the five-year financial year. Of this amount, the Company’s income increase through the three quarters of 2013 was $22 million, $8 million, and $6 million, respectively.
• On June 13, 2013 Procter & Gamble’s management reviewed the company’s consolidated financial statements. Based on these key disclosures, in December 2012, the Company found that a significant improvement in the Company’s overall assets was needed from the Company’s recent acquisitions. When these acquisitions were made, Procter & Gamble made the purchase on December 13, 2012. The company found that Procter & Gamble made investments of approximately $500 million, $1 million, and $75 million, respectively, in the first quarter of 2012, and Procter & Gamble made one investment in December 2012 that will in December 2013 produce about 11 million barrels of Petroleum-O-Reinforced Liquid.
• By March 30, 2013, in the third quarter of 2013, a total of $10 million of Procter & Gamble’s net income for the