MS 25
MS 25
MS 25
Course Code : MS - 25
Course Title : Managing Change in Organisations
Assignment Code : MS-25/TMA/SEM - II/2016
Coverage : All Blocks
Note: Attempt all the questions and submit this assignment on or before 31st October, 2016
to the coordinator of your study centre.
1. Discuss the concept of planned organisation change with the help of organisational
examples.
2. Explain different reasons and techniques of process based change citing examples.
3. Describe the model as a diagnostic guide and its key features with the help of examples.
4. Enlist the key skills in managing organisational change citing examples.
Answer
1. Discuss the concept of planned organisation change with the help of organisational
examples.
Ans.: Today, teams and organizations face rapid change like never before. Globalization has
increased the markets and opportunities for more growth and revenue. However, increasingly
diverse markets have a wide variety of needs and expectations that must be understood if they
are to become strong customers and collaborators. Concurrently, scrutiny of stakeholders has
increased as some executives have been convicted of illegal actions in their companies, and
the compensation of executives seems to be increasing while wages of others seems to be
decreasing or leveling off. Thus, the ability to manage change, while continuing to meet the
needs of stakeholders, is a very important skill required by today's leaders and managers.
Significant organizational change occurs, for example, when an organization changes its
overall strategy for success, adds or removes a major section or practice, and/or wants to
change the very nature by which it operates. It also occurs when an organization evolves
through various life cycles, just like people must successfully evolve through life cycles. For
organizations to develop, they often must undergo significant change at various points in their
development. That's why the topic of organizational change and development has become
widespread in communications about business, organizations, leadership and management.
Leaders and managers continually make efforts to accomplish successful and significant
change -- it's inherent in their jobs. Some are very good at this effort (probably more than we
realize), while others continually struggle and fail. That's often the difference between people
who thrive in their roles and those that get shuttled around from job to job, ultimately settling
into a role where they're frustrated and ineffective. There are many schools with educational
programs about organizations, business, leadership and management. Unfortunately, there
still are not enough schools with programs about how to analyze organizations, identify
1
critically important priorities to address (such as systemic problems or exciting visions for
change) and then undertake successful and significant change to address those priorities. This
Library topic aims to improve that situation.
Organizational change is undertaken to improve the performance of the organization or a part
of the organization, for example, a process or team. Therefore, it's very useful for the reader
to scan the topic Organizational Performance in the Library, to get a basic sense of an overall
framework to enhance the performance of an organization. Then return to this topic on
organizational change to learn more about how to guide successful change within that
framework.
Organizational change occurs when a company makes a transition from its current state to
some desired future state. Managing organizational change is the process of planning and
implementing change in organizations in such a way as to minimize employee resistance and
cost to the organization while simultaneously maximizing the effectiveness of the change
effort.
Today's business environment requires companies to undergo changes almost constantly if
they are to remain competitive. Factors such as globalization of markets and rapidly evolving
technology force businesses to respond in order to survive. Such changes may be relatively
minor—as in the case of installing a new software program—or quite major—as in the case
of refocusing an overall marketing strategy, fighting off a hostile takeover, or transforming a
company in the face of persistent foreign competition.
Organizational change initiatives often arise out of problems faced by a company. In some
cases, however, companies change under the impetus of enlightened leaders who first
recognize and then exploit new potentials dormant in the organization or its circumstances.
Some observers, more soberly, label this a "performance gap" which able management is
inspired to close.
But organizational change is also resisted and—in the opinion of its promoters—fails. The
failure may be due to the manner in which change has been visualized, announced, and
implemented or because internal resistance to it builds. Employees, in other words, sabotage
those changes they view as antithetical to their own interests.
2. Explain different reasons and techniques of process based change citing examples.
Ans.: Process-based management is a management technique that aligns the vision, mission
and core value systems of a business when formulating corporate strategy. It helps define the
policies that govern the operations of the company, in question; whilst ensuring that the
company is not just functioning on a platform of efficiency alone, but one of effectiveness,
too. As process-based management commences from the strategic sphere, the direction of the
projects undertaken remain unfaltering, unlike in the event of goals formulated at a tactical
level, where some projects tend to veer off course. Working towards a common goal helps
achieve harmony across different work groups and departments. However, it must be re-
iterated that strategic support alone is inadequate to make the philosophy of process based
management, a success; and that the middle management and employees too, need to
recognize their part in the process and take ownership of it for optimal results.
2
A process-based organization would have a few inherent characteristics that make it instantly
recognizable.
For instance, such a company would view the business as a collection of processes, have
strategic plans that drive the processes with commitment from the top management
downwards, and such processes would be aligned to the goals and key business outcomes of
the organization.
Standardization of processes, high dependence on data accuracy and the continuous quest for
sustainable improvements are further hallmarks of a process-based organization.
Process-based management is an invaluable tool in customer satisfaction and retention, as it
identifies key processes that have stakeholder interests and satisfaction at heart.As many, a
savvy manager at the higher echelons have come to realize the vision of a company is less
likely to change over time, as opposed to goals and procedures used to achieve this vision.
Therefore process-based management necessitates managers to evaluate existing processes
and take steps to adjust the structure and function of the organization in question, so that
maximum efficiency can be thus derived.
Variable factors such as changes in customer expectations, fluctuations in the general
economy and the necessity of developing better product lines will result in more innovative
workforce who takes ownership of tasks and initiates better performance in their related field
of expertise.
The change management process is the sequence of steps or activities that a change
management team or project leader follow to apply change management to a change in order
to drive individual transitions and ensure the project meets its intended outcomes. The below
elements have been identified from research as key elements of a successful change
management process.
For example, the first step in managing change is building awareness around the need for
change and creating a desire among employees. Therefore, initial communications are
typically designed to create awareness around the business reasons for change and the risk of
not changing. Likewise, at each step in the process, communications should be designed to
share the right messages at the right time.
Communication planning, therefore, begins with a careful analysis of the audiences, key
messages and the timing for those messages. The change management team or project leaders
must design a communication plan that addresses the needs of frontline employees,
supervisors and executives. Each audience has particular needs for information based on their
role in the implementation of the change.
3. Describe the model as a diagnostic guide and its key features with the help of examples.
Ans.: Everyone is need to be familiar with the Decision Making Process. We all rely on
information, and techniques or tools, to help us in our daily lives. When we go out to eat, the
restaurant menu is the tool that provides us with the information needed to decide what to
purchase and how much to spend. Operating a business also requires making decisions using
3
information and techniques - how much inventory to maintain, what price to sell it at, what
credit arrangements to offer, how many people to hire.
Decision Making Process in business is the systematic process of identifying and solving
problems, of asking questions and finding answers. Decisions usually are made under
conditions of uncertainty. The future is not known and sometimes even the past is suspect.
This guide opens the door for business owners and managers to learn about the variety of
techniques which can be used to improve your decision making process in a world of
uncertainty, change, and uncontrollable circumstances.
Whether a scientist, an executive of a major corporation, or a small business owner you can
benefit from improving your decision making skills. The general approach to systematically
solving problems is the same. The following 7 step approach to better management decision
making can be used to study nearly all problems faced by a business.
1. State the problem: A problem first must exist and be recognized. What is the
problem and why is it a problem. What is ideal and how do current operations vary
from that ideal. Identify why the symptoms (what is going wrong) and the causes
(why is it going wrong). Try to define all terms, concepts, variables, and relationships.
Quantify the problem to the extent possible. If the problem, not accurately and
quickly filling customer orders, try to determine how many orders were incorrectly
filled and how long it took to fill them.
2. Define the Objectives: What are the objectives of the study. Which objectives are the
most critical. Objectives usually are stated by an action verb like to reduce, to
increase, or to improve. Returning to the customer order problem, the major
objectives would be: 1) to increase the percentage of orders filled correctly, and 2) to
reduce the time it takes to process and order. A sub-objective could include to
simplify and streamline the order filling process.
3. Develop a Diagnostic Framework: Next establish a diagnostic framework, that is,
decide what methods are going to be used, what kinds of information are needed, and
how and where the information is to be found. Is there going to be a customer survey,
a review of company documents, time and motion tests, or something else. What are
the assumptions (facts assumed to be correct) of the study. What are the criteria used
to judge the study. What time, budget, or other constraints are there. What kind of
quantitative or other specific techniques are going to be used to analyze the data.
(Some of which will be covered shortly). In other words, the diagnostic framework
establishes the scope and methods of the entire study.
4. Collect and Analyze the Data: The next step is to collect the data (by following the
methods established in Step 3. Raw data is then tabulated and organized to facilitate
analysis. Tables, charts, graphs, indexes and matrices are some of the standard ways
to organize raw data. Analysis is the critical prerequisite of sound business decision
making. What does the data reveal. What facts, patterns, and trends can be seen in the
data. Many of the quantitative techniques covered below can be used during the step
to determine facts, patterns, and trends in data. Of course, computers are used
extensively during this step.
4
5. Generate Alternative Solutions: After the analysis has been finished, some specific
conclusions about the nature of the problem and its resolution should have been
reached. The next step is to develop alternative solutions to the problem and rank
them in order of their net benefits. But how are alternatives best generated. Again,
there are several well established techniques such as the Nominal Group Method, the
Delphi Method and Brainstorming, among others. In all these methods a group is
involved, all of whom have reviewed the data and analysis. The approach is to have
an informed group suggesting a variety of possible solutions.
6. Develop an Action Plan and Implement: Select the best solution to the problem but
be certain to understand clearly why it is best, that is, how it achieves the objectives
established in Step 2 better than its alternatives. Then develop an effective method
(Action Plan) to implement the solution. At this point an important organizational
consideration arises - who is going to be responsible for seeing the implementation
through and what authority does he have. The selected manager should be responsible
for seeing that all tasks, deadlines, and reports are performed, met, and written.
Details are important in this step: schedules, reports, tasks, and communication are the
key elements of any action plan. There are several techniques available to decision
makers implementing an action plan. The PERT method is a way of laying out an
entire period such as an action plan. PERT will be covered shortly.
7. Evaluate, obtain Feedback and Monitor: After the Action Plan has been
implemented to solve a problem, management must evaluate its effectiveness.
Evaluation standards must be determined, feedback channels developed, and
monitoring performed. This Step should be done after 3 to 5 weeks and again at 6
months. The goal is to answer the bottom line question.
4. Enlist the key skills in managing organisational change citing examples.
Ans.: Change management is a term that is bandied about freely. Sometimes it's a scapegoat
for less than stellar results: "That initiative failed because we didn't focus enough on change
management." And it's often used as a catch-all for project activities that might otherwise get
overlooked: "When we implement that new process, let's not forget about the change
management."
Theories about how organizations change draw on many disciplines, from psychology and
behavioral science, through to engineering and systems thinking. The underlying principle is
that change does not happen in isolation – it impacts the whole organization (system) around
it, and all the people touched by it.
In order to manage change successfully, it is therefore necessary to attend to the wider
impacts of the changes. As well as considering the tangible impacts of change, it's important
to consider the personal impact on those affected, and their journey towards working and
behaving in new ways to support the change. The Change Curve Add to My Personal
Learning Plan is a useful model that describes the personal and organizational process of
change in more detail.
5
Change management is, therefore, a very broad field, and approaches to managing change
vary widely, from organization to organization and from project to project. Many
organizations and consultants subscribe to formal change management methodologies. These
provide toolkits, checklists and outline plans of what needs to be done to manage changes
successfully.
When you are tasked with "managing change" (irrespective of whether or not you subscribe
to a particular change management approach), the first question to consider is what change
management actually means in your situation. Change management focuses on people, and is
about ensuring change is thoroughly, smoothly and lastingly implemented. And to know what
that means exactly in your situation, you must dig down further to define your specific
change management objectives.
Typically, these will cover:
Sponsorship: Ensuring there is active sponsorship for the change at a senior
executive level within the organization, and engaging this sponsorship to achieve the
desired results.
Buy-in: Gaining buy-in for the changes from those involved and affected, directly or
indirectly.
Involvement: Involving the right people in the design and implementation of
changes, to make sure the right changes are made.
Impact: Assessing and addressing how the changes will affect people.
Communication: Telling everyone who's affected about the changes.
Readiness: Getting people ready to adapt to the changes, by ensuring they have the
right information, training and help.
When you are defining your objectives and activities, it's very important to coordinate closely
with others: project managers, managers in the business, and the HR department. Ask "who's
responsible?" For example, who's responsible for identifying change agents? Defining the re-
training plan? Changing job descriptions and employment contracts? And so on.
As every change is different, responsibilities will vary depending on how the change
activities and project are organized. Only when you know who's responsible and how things
are organized in your situation will you know what's within your scope, and how you'll be
working with other people to bring about the change.
Once you have considered the change management objectives and scope, you'll also need to
consider the specific tasks. Again, the range of possible activities is broad. It's a question of
working out what will best help you meet the change challenge in hand, as you have defined
it in your objectives and scope, and how to work along side other people's and projects'
activities and responsibilities.