Managing Change in the Organization

8/4/2019 Managing Change in the Organization

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Managing Change in the OrganizationIntroduction:Laxmi BNS Holdings Ltd manufactures imports and sells medicines andpharmaceutical products. Turnover of this company is 350million.14 direct reports. Short term contract role to support the turnaround fromthe acquisition of trading assets and debt of Colorama Pharmaceuticals aswell as streamlining of the companies.

TVS motor is an Indian company, the company is existing in variousautomobile segment. The enterprise is offering various types of mopeds,scooters and motorcycle. In scooter segment company offers Scooty pep,Scooty pep plus, Scooty Tenz and Scooty Streak. In motorcycle segmententerprise is offering TVS Victor, TVS Star, TVS Flame and most recentlycompany has introduced TVS Apache. In moped Segment Company offersTVS Super and TVS XLR heavy-duty.In motorcycle and scooter segment organization is doing well business. TVSvictor got huge success in the market. Recently introduced TVS apache hasbeen making money for the organization. Initially organization hascollaboration with Suzuki motors limited. After parting from the Suzuki in2000 the company is doing business itself. Organization has beenimplemented many changes to sustain in current market condition.

Task: 1 (a)Indian customer becomes more scruples for the quality. According to TPMClub (2010) since 1990, the government of India has been inviting foreigncompanies to invest money in the Indian economy. Government is also

facilitating these organizations by providing tax redemption. Thesecompanies product have good quality and better performance. Secondly theIndian customer favours fuel efficient products due to petrol price hike in theeconomy. TVS must have to look on this economical and behaviour changeswhich they have been faced in the market. Organization was facing problemto manage their cost structure. To cope with these changes organization haddecided to implement changes in the organization. According TPM club IndiaTVS has been implemented Total productive maintenance in 1999. By thehelp of total productive maintenance organization is enabling to get zerodefects, zero failure, zero accident with total employee involvement at allstage. To make fuel efficient product organization has been spent lot money

to developed engine which is fuel efficient. Organization has been came upwith digital twin spark engine in them motorcycle segment. According to TVSmotors (2010) organization had launched its first 4 stroke bike TVS fiero tocope with the fuel efficient engine requirement. The company hassuccessfully implemented changes in the organization, According TVS Motor(2010) organization bagged TPM excellence award in 2004. By the help ofimplement changes organization has got following results.


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(Source: http://www.tvsmotor.in/news.asp?id=80&yr=2005 [Accessed on28.08.2010] )

Task:1 (b)Definition of bureaucracy:

Bureaucracy means a system of administration by its clear hierarchy ofauthority, rigid the division of labour, written and inflexible rules, regulationand procedure and impersonal relationship. (http://businessdictionary.com27.08.2010)According to Beech J and S Chadwick (nd) bureaucracy mean a format oforganization which will work as per standard procedure, writtencommunication and hierarchies of procedure.Bureaucracy has follows following principle. (Weber M, 1978)1 Each department has specialization in their work, they are having expertise.2 Bureaucracy follows proper hierarchy, lower department is

supervising by higher ones.3 The rules in bureaucratic organization are exhaustive and stable.4 Each employees are equally treated in the organization according to rules.5 Employee selection will be according to qualification and experience.1 Employee promotion will be according to seniority.

Strength and weakness of bureaucratic organization:According to Weber M (1978) the strength and weakness of the bureaucraticorganization are as per followings:

Strength:1 1. The bureaucratic organizations have superior degree ofcommunication, due to hierarchy method.2 2. The bureaucratic organization will use economic scale efficiently.3 3. The chance of reproduction of the employees and tools are less.4 4. The decision making process in the bureaucratic organization isintegrated to each other.5 5. By the help of bureaucratic philosophies, the effectiveness operationcould be enhancing.6 6. Bureaucratic organization is believed to maintain higher level ofconsistency in decision making process regarding to new project.

Weakness:1 1. The chance of innovation is less due to higher level of thebureaucracy. Bureaucracy will not protect organization by providingcompetitive advantage in the market.2 2. Due to hierarchy the structure is become ladder which is the majorobstacle in the decision making process.


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3 3. Employees unavailability will create new problem for theorganization.4 4. In bureaucratic organization employees never get empowermentand the motivation of the employees is down due to less responsibilities.5 5. Bureaucracy neglect groups thinking.

Task : 1 (c)Definition of organizational development:According to Nielsen E (1984) cited by Harris O and S Hartman (2001)Organizational development is attempt to attract the employee of theorganization towards expand their candidness with each other about theirview for the organization and their experience in it. Organizationaldevelopment is also attracting employee to take responsibilities for their ownaction as a member of organization. Here the assumption behindorganizational development is when employee works for the both objectivesimultaneously they will able to invent new ways for working together for

achieving organizational objectives.5 | P a g e ( M C O ) M r u g e s h P a t e l ( E T O L A 1 2 6 1 4 )The main aim of the organizational development is to improve theperformance and effectiveness of the organization by empoweringemployees and system. Organizational development is emphasis onempowerment, learning and problem solving process.According to French W and C Bell (1999) there are following characteristicsof the organizational development:1 Organization development is focus on culture and process to collaborate team leader and member by implementing specificencouragement.

2 Organizational development believes in total system change. It is

focus on involvement and participation of the employee in problem solvingmethod.3 Organizational development is also focus on client and believes that client is also facilitating to solve the problem for meeting the organizationgoal.

Organizational development is playing major role for the change process,there are many alternative are available for the organizational development.1 Quality development:2 Technical development

3 Technological development

4 Structural development5 Strategic development.

These all are the alternative form of the organizational development and Iam going to explain two forms among them.1 Quality development:


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Quality development is the one of the change of organization changingprocess. To sustain in current market condition, organization has toimplement quality change. This will plays major role for the organization. Todevelop quality organization has to invest more money behind to developsystem and quality culture. Organizational has to convince stakeholder for

adopting this change. Organization has to provide training to the employeesto adopt this change. Organization has to invest money to buy precisemachineries.For example TVS motor was facing problem to sustain in the market due tohigh quality product competition, organization has adopt quality changes forthe organization. They adopted Total productive maintenance system to gethigh quality product.1 Technological Development:

This is the important aspect of the changes. Technology changes every day.With the advancement of the technology organization has to adopt new

technology to their6 | P a g e ( M C O ) M r u g e s h P a t e l ( E T O L A 1 2 6 1 4 )process to compete the market. Organization has to invest maximum moneyto become technological advance. To implement technological changes inthe organization, organization has to evaluate the present technology andalso evaluate capacity of acceptance of the new technology. Organizationhas also figure out the what training is needed to bring the changes in theorganization and what will be the future impact. To implement all thesechanges in the organization, the company has to use business processreengineering models which help them to fundamentally improvement.For example TVS, to cope with fuel efficient motorcycle demand organization

had to invest behind Research and development to bring out new models inthe market. Organization comes up with their first 4 stroke motorcycle tocompete the market. To bring this changes organization have to invest inlatest machineries and training of the man power.Task: 2(a)TVS was enabled to implement changes in the organization by the help offollowing stakeholder.1 Employees:

To implement total productive maintenance system in the organization, TVSmust have to involve the employees. To implement this system employee

are the key players. Total productive maintenance system is related to zerodefects, zero failure and zero accident, without support of employees it isimpossible to implement it in the organization. To meet zero accident in theorganization, Employer has too train the employees to reduce the accidentratio.1 Supplier:


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Supplier is second key stake holder in the organization for implementingchange in the organization. To get the zero defects product organization hasto develop the supplier who provide zero defect sub product. Supplier issupplying material to the organization if there is any problem in suppliedmaterial it is impossible to get the zero defects product.

1 Investor:

Investor is the third main important stakeholder for the organization. Toimplement this system organization has to invest behind machineries andthe training. Without investor it is difficult to bring change in theorganization.7 | P a g e ( M C O ) M r u g e s h P a t e l ( E T O L A 1 2 6 1 4 )In order to introduce change in the organization, there are many ways toconvinced stakeholders.1 Communication: Organization has to constantly dialogue with the employees about the changes. Organization has to find out key employees

from the group and convinced them for changes. Organization has to sharethe long term vision to the employees and receive their ideas andsuggestion.2 Meeting: Organization has to constantly arrange the meeting with the employees and try to sort out their problem regarding the changes. Toget commitment from the investor organization can arrange meeting withthem and convince them for the changes by proving the future benefits ofthe changes.3 Survey: Organization can get commitment from the supplier regarding the changes by the survey. Organization can use this method toknow that how supplier going to support to the changes.

4 Incentives: Organization can convince employees for the changes by

providing additional incentive; this could be play major role to implementchange in the organization.5 Multimedia: Organization conveys the change message to the all stakeholder by presenting change through the multimedia presentation,demonstration or training. By the end of presentation organization will getthe feedback regarding changes. This will help organization to judge changesproperly and make rectification or modification according to feedback.

For example of TVS to implement changes, Organization has to build ashared vision to the employees. Means organization has to provide clear idea

to the employees regarding changes. Organization has to give them clearpicture about future benefits. Organization has to convey the message to theemployees that this change is for the good future of the organization. TVShas to find out the key employees from the group and convinced them forthe future changes, this will help organization to implement change in easyway.Task: 2 (b)


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Communication system is the most important for the implement changes inthe organization. By the help of this system organization can convey themessage to every stakeholder of the organization. Organization will alsoenable to receive the comments or suggestion from the employees regardingchanges. Comment and suggestion will help organization to implement

fundamentally strong changes. If organization has took action regarding thecomment or suggestion and rectify the change according to the suggestion,than it is very much easy to implement change in the organization.Communication system must be two way systems and it will be able to passclear message to the employees. There are main following characteristics ofthe communication.8 | P a g e ( M C O ) M r u g e s h P a t e l ( E T O L A 1 2 6 1 4 )1 By the help of communication organization enable to aware stakeholder regarding changes.2 By the help of the communication, stakeholder will understand purpose and progress of the changes.

3 By the help of communication stakeholder will be support the

project and believe it is worthwhile and promote it.4 By the help of communication stakeholder create advocacy and behave proactively towards the changes and support the changes.

Task: 3 (a)There are several change models available for the organization. TVS hasimplemented total productive maintenance in the organization. The aimbehind implementing this change in the organization is to get zero defects,zero accident and zero failures with the help of employees at all stages ofthe changes. To implement these changes I found following models which

are suits for implementing change in the organization.1 Kaizen:

Kaizen is Japanese word; it does mean continuous improvement by wastereduction. According to George M (2010) most of the manufacturing andservice industries are using this model for the rapid improvement. There arenumbers of attributes of the Kaizen model, following are some of them:1 1. Kaizen model has standard structure and simplicity in planning.2 2. Kaizen is typical improvement tools there are no moresophistication.3 3. Most of the environment can use this model. Like service and

manufacturing industries, plant, back office, front office, and hospitals.4 4. Kaizen help organization to change the thinking of the employees.Kaizen promote collaboration and this will create ownership sense in theemployees mind by getting positive result from implemented action.

According to George M (2010) there are main three participants in the kaizenmodel.1 Project Sponsor:


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Project sponsor is the main for implementing any project in the organization.Project sponsor has authority to provide budget for implementing model.Project sponsor have final authority to approve correction in the project. Heis the final decision maker.

1 Event Facilitator:

The event facilitator is the responsible for the result of the implementingproject. The event facilitator has to manage all the agenda during theproject.1 Team Members:

In aspect of team member, they are the one who is implementing the changeor project in their day by day activities.9 | P a g e ( M C O ) M r u g e s h P a t e l ( E T O L A 1 2 6 1 4 )Kaizen model is basically for the improvement by reducing waste at all level.

By the help of Kaizen the employees are being more conscious about theimprovement and quality of the product. They are being able to analysis theproblem, find out the root cause and taking the corrective action accordingto requirement. They are also able to monitor implemented correction whichwill help them future further action.1 Six Sigma:

Six Sigma is the model to improve the quality at all level of the organization.Six Sigma model has been developed by the Motorola in 1980 to reduce thequality problem in mass production. The formal definition of six sigma interm of statistical process to reduce the process variation, so the quality of

the product will be according to customer expectation. This model emphasison only 3.4 defects per one million parts production.According to Pande P and L Holpp (2002) Organization can define six sigmaas followings:1 1. Six sigma means a statistical measurement of the product orprocess performance.2 2. Six sigma means a goal which help organization to reach atperfection level.3 3. Six Sigma means a management system which will helporganization to achieve world class leadership in the market.10 | P a g e ( M C O ) M r u g e s h P a t e l ( E T O L A 1 2 6 1 4 )

Six sigma is the cycle for the improvement product performance. Here firstof all organization has to decide the goal, means what they wanted toachieve than after organization has to implement steps to achieve theobjective. After implementing steps organization has to measure the stepsmeans are they according to work as per objective? If organization found anydeviation during the measure than organization has to analysis the rootcause behind the deviation. After analysis root cause organization has todecide the corrective action to achieve the objectives and implement that


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corrective action for improvement. Organization has to measure theeffectiveness of the corrective action and take steps according to that toachieve final objectives. The main aim of six sigma model is the process hasonly 3.4 defects in per one million occurrence. To achieve this objective andimplement the six sigma in the organization, organization has to constantly

improve the processes and measure it. Organization has to take correctiveaction and implement it in system or process to reach at six sigma level.1 Business Process Reengineering:

According to Radhakrishnan R and S Balasubramanian (2008) Businessprocess reengineering means a technique which is concentrating on processto bring or implement the radical changes in the organization with the helpof dramatically improvement in the process. This change could be instructure, performance measurement, incentives or in management.In business process reengineering organization brings change according torequirement and implements it in the organization. Organization has to

measure the reaction of the implemented changes and get the suggestion onthat. If any correction needed in the implemented changes than organizationhas to defreeze the changes and make corrective action according tosuggestion and refreeze the changes in the system. Many organizations areusing BPR methodology to implementing massive radical changes in thesystem. Business process reengineering is being used as vehicle to increasethe customer satisfaction, to improve financial result, to realign businessstrategy and structure.Task: 3 (b)I am going to implement Six Sigma models to establish zero defects, zerofailure and zero accident in the organization. I am going to use Kotters 8

step for implement changes in the organization.To implement changes in the organization Kotter has suggested 8 steps.According Kotter J (1995) there are following steps for implementing changein the organization:11 | P a g e ( M C O ) M r u g e s h P a t e l ( E T O L A 1 2 6 1 4 )1 1. Create Urgency:

When organization wanted to bring change in the organization, entirecompany will not help them to implement changes. For that organization hasto create urgency, this will help organization to spark changing in theorganization. Organization will never implement changes in the organization

by showing poor sales or finance data. Organization has to constantlydialogue with the stakeholder to bring the change in the organization.Organization has to be honest with the stakeholder and convince them forthe future benefits.1 2. Form powerful coalition:

To form coalition organization has to find out key employees and convincethem for the changes. Organization has to ask emotional commitment from


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these key employees. Organization has to make team for the changes andmake sure the members of the team are from the different department.1 3. Create a vision for change:

When organization is going to thinking about the changes on that time

organization has to pass their ideas to the people. Organization has to makea short vision statement for the change which people can easily remember.1 4. Communicate the Vision:

Organization has to use vision for day by day activity. Organization has toincorporate that vision in decision making process. Whenever any discussionhappens organization has to represent that vision powerfully and embed it inevery activity.1 5. Remove Barriers:

Organization has to remove the obstacle which comes in the way of

implement. To remove this obstacle organization has to analysis thisobstacle and find out the root cause to remove it from the system. If it isregarding to employees responsibilities than organization has to fix theresponsibilities of the employees and foster them to implement changes inthe organization by providing incentives. Organization has to speciallyappoint a leader who is responsible for the change. Organization has to takeimmediate corrective action to remove obstacles.1 6. Create a short term wins:

Organization has to split changes in short term objective to achieve it easily.Organization has to put result of changes in front of the staff. Organization

has to look the changes will implement without strong critics or changes.Organization has to put strong effort to achieve short term goals. Afterachieving this objectives12 | P a g e ( M C O ) M r u g e s h P a t e l ( E T O L A 1 2 6 1 4 )organization has to reward the employee which will increase the level of themotivation and will create positive attitude towards the changes.1 7. Build on the change:

Organization has to analysis every change after successfully implementation.Organization has to analysis that what went right and in which actionimprovement needed. Organization has to take corrective action according

to that in future step of action to achieve specific change in the organization.1 8. Incorporate change in corporate culture:

Organization has to make constant effort to make sure that change areimplemented Properly in the organization and it is incorporate in the everystage of organization. Organization has to constantly monitor changes andensure that it is a part of corporate culture.


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After successful implement of the changes in the TVS motor, I am expectingquality product from the organization. Customer will be more satisfied fromthe product and organization will able to capture the market share. Thischange will become core competence of the organization; TVS will be able toget competitive advantages from these changes. Organization will also able

to reduce the cost of manufacturing by reducing waste at all level.Conclusion:In opinion to me, change is the long process for the organization. Toimplement change in the organization, Organization has to make systematicsteps. Organization has to use different strategies to convince stakeholdersfor the change. To change the thinking of the employee is critical process butafter proper implement of the change organization will enable to achievedecided objectives.

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Managing Change in the Organization