1. Small Business Example ORGANIZATIONAL CHANGE:

2. INTRODUCTION In this presentation we would like to look at organizational change in a small business. The information was obtained by an interview Nov. 22, 2013 with Nick Morella of D&N Refrigeration and A/C located in Akron, OH. Morella was the founder and sole proprietor and manager for the last 30 years.

3. OBJECTIVES Describe the history, structure, and culture of the organization. What change was made, it process, and the reason for change? Who were the leaders in the change and their actions? What were the strategies for resistance? How was the change sustained? Evaluation of the change. The organizations response to the change.

4. HISTORY, STRUCTURE, & CULTURE D&N has 14 employees and is licensed by the State of Ohio and the City of Akron to service and install refrigeration and air conditioning for residential or commercial. The culture of the organization is similar to a family with everyone having the opportunity to express their opinions and Morella making the final decisions on everything. A typical pyramid business structure is used with Morella at the top with the office/service manager, parts manager, and salesman reporting directly to Morella.

5. THE CHANGE AND WHY? As part of the Montreal Protocol that the United States signed in 1986, the second phase mandated the elimination of R-22 refrigerant and manufacture of equipment using R-22 by Jan1, 2010. New refrigerants and equipment had been designed to take it place. Recertification by the EPA would be necessary to handle and service the new equipment and maintain competitive ness in the industry.

6. LEADERSHIP OF CHANGE The change had been known about since 1986 and planning for this phase started in July of 2009. Morella was the leader of the change. Before Jan. 1, 2010 all the service personnel were trained and certified as required by the EPA’s mandate. Morella was able to get everyone to agree to the change by explaining the need and benefits that would come from it. Morella explained that the increased revenue from the change would more than offset the cost of change and also benefit the employees monetarily in the future. According to (Beach 2005), the main responsibilities of change leadership are, assessment, culture, vision, planning, implementation, and sustaining the change.

7. RESISTANCE TO CHANGE There was no noticeable resistance in the organization due to pre-planning and getting everyone to buy in early before the change began. Everyone believed that the change was going to be beneficial to the company and to them personally. Hitt, Miller, and Colella (2009) say that resistance to change is usually from a lack of understanding different assessment, self-interest, and low tolerence for change. None of these seem to be a factor in the change at D&N.

8. SUSTAINING THE CHANGE The change was met with no resistance and after the change the benefits were realized by the employees. The increased revenues showed up as increases in paychecks. The employees understood that by keeping the change permanent they kept the company competitive with other companies in the industry. It was in their own best interest as individuals to see that the change was sustained.

9. EVALUATION OF THE CHANGE The change went very smoothly. Everything was planned and executed on schedule. There was an early buy in from the employees which kept resistance from being part of the change. The benefits from the change helped the environment, made the company more competitive, and increased the revenues to the company and its employees. Also the family culture was a big part in having the change so readily accepted.

10. THE ORGANIZATION’S RESPONSE In retrospect the change was good for the organization. Service personnel have more marketable skills. The salesman is earning a bigger commission due to the increased costs of purchasing the newly designed equipment. Employees are happy with the pay raises due to the increased revenues and the company as a whole has maintained its competitiveness in the industry. The organization feels that the change was worth the effort and cost.

11. SUMMARY There was an early assessment to the change and plans were made early to allow enough time for completion. The buy in from the employees was backed by the culture of the business. Everyone felt that they had a stake in the change and would reap the rewards later as the change had made its effect. Without any resistance the plan were completed as scheduled. The change had brought increased revenue while keeping competitive in the industry.

12. REFERENCES Beach, L. R. (2006). Leadership and the art of change. Thousand Oaks, CA: Sage Hitt, M.A., Miller, C.C., & Colella, A. (2009). Organizational behavior: A strategic approach (2nd ed.). New York, NY: John Wiley & Sons Inc.