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Culture Change At California Resources Corporation Case Solution

Solution Id Length Case Author Case Publisher
1817 697 Words (5 Pages) Alan Nelson Greif Center for Entrep. Studies-USC Marshall : SCM101
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The use of The McKinsey 7-S Framework is appropriate because the framework may be used to assess and analyses the current situation of the CRC organization. This will help the HR department in identifying the various gaps in the culture and identify which areas will be most resistant to change in the organizational culture.

Case Analysis for Culture Change At California Resources Corporation Case Solution

1. Alana Soltiri, the up of human resources at CRCC was the main decision-maker in the case and was faced with the challenge of changing the organizational culture at CRC to be able to realize the company’s potential, move towards growth, and encourage employees to perform better. Alana was supported in her vision of an improved organizational culture to improve employee motivation and performance by most of the senior members. However, Alana was concerned if the cultural change would bring about too much challenge and resistance from the employees, especially the HR department – where the change was to initiate from. 

This is because changing the organizational culture at CRCC would be a difficult task for Alana. Alana would face difficulties and resistance from employees who would have grown comfortable in their job roles. Alana was also aware of the challenges at CRCC that would be faced because of the organizational processes and systems – which were deep rooted. Alana was thus aware of the challenge of introducing new values and paradigms at CRCC, and acknowledged it to be a tough task that required strategic planning, persistence, and repetition. 

2. An appropriate theory to analyses and assess the current situation would be the McKinsey 7-S Framework. The McKinsey 7-S Framework (Witcher & Chau, 2010) focuses on identifying and highlighting the inconsistencies, loopholes, and gaps that exist within the organizational culture, and consequently, provides a strategic plan for aligning the various elements. 

The McKinsey 7-S Framework, therefore, helps an organization reach its potential, and desired state through creating harmony between important organizational elements that define an organization’s culture and performance. The McKinsey 7-S Framework strategically assesses the organization through the hard elements of strategy, structure, and systems – and the soft elements of shared values style, staff and skills [figure 1].

The McKinsey 7S theory is the most appropriate solution because it will give Alana a direct control and influence over the new values that will be introduced under the paradigm of cultural change at CRCC, and thereby have a direct impact on the new organizational culture. The organization was facing complacency, and a loss in performance. These factors relate directly to organizational culture and motivators, which could be influenced through the organizational culture. New values of creativity, passion and engagement could boost performance by fuelling employee motivation, and thereby improve the organization’s overall standing.

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