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Portfolio for Organisational Change Level 4 Regent College


The present study reflects the comparison of two theories and arguments regarding which theory is more suitable to manage people during the process of change.

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Case analysis

From the provided case scenario it can be stated that there are lots of differences between Theory O and Theory E. Further, the major difference among the both is that Theory E is changed which is based on economic values whereas Theory O depicts changes based on the capabilities of an organization. Other than this, Theory O is a sort of soft approach in which human capabilities and effective corporate culture are developed to learn the process of change and make a modification. On the other hand, Theory E is considered as more of a kind of hard approach associated with the entire process to change. Managers adopting Theory E use drastic lay-offs, economic incentives, and restructuring (Beer and Nohria, 2000). However, it can be argued that the strategies for change management used in Theory E are more common as compared to strategies used in Theory O. furthermore, Theory O is more likely to be adopted by businesses that are operating in Asia and Europe. In terms of use, it can be explained that the manager can use anyone among the two stated theories. It can be also argued that the use of both theories simultaneously can create lots of troubles for the entire organization. Leaders who have adopted for Theory E are considered as the one with a very old fashioned approach to managing changes.

On the other side of this, leaders using Theory O were able to raise emotional commitment from employees in order to implement change and improve the performance of the organization (Michael and Nitin 2000). Leaders using Theory E focuses directly on changing the system and structure of the entire workplace. On the other hand, Theory O concentrated on changing soft elements such as behavior, culture, and attitude of people in an organization. Therefore, it can be stated that there are lots of differences between Theory E and Theory O. It can be asserted that in order to manage people in an organization during the process of change, Theory O is more suitable and effective. The reason behind this is that it encourages the employees of in lower level of management to take part in the process of change management. This develops a sense of satisfaction among people and also encourages them to give their best. Further, Theory O also focuses on a soft element which is more important in managing change. The pay system as per this theory is based on the skill's set and knowledge of workers. This also helps in developing satisfaction among workers and give their best.

Also read this Sample: Lead and Manage Organisational Change


From the above case scenario, it can be concluded that Theory O and Theory E has its own set of advantages and disadvantage. In terms of managing people during change, Theory O is more suitable. It helps in creating satisfaction among workers and encourages them to give their best in making changes successful. "Resort management is part of the hospitality industry. There are various types of managers and leaders in the resort including those who monitor food"


  • Beer, M. and Nohria, N., 2000. Breaking the Code of Change. Harvard Business Press.
  • Michael Beer and Nitin Nohria. 2000. [Online].
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