ASSIGNMENT Course Code Course Title Assignment Code Coverage : : :

MS - 25

Managing Change in Organizations MS-25/TMA/SEM - II /2012 All Blocks

Note: Answer all the questions and send them to the Coordinator of the Study Centre you are attached with. 1. Describe the factors to taken care of before proceeding for cultural change. Briefly discuss indigenization and the complexities involved in the Management of change. 2. What is turn around management? Briefly explain the kinds of Turn around situations before an organization goes ahead with strategies. Give an example where turnaround was used. Briefly discuss the organization you are referring to. 3. Explain the concept of Intervention and discuss different types of interventions. Briefly describe comprehensive interventions and their relevance. 4. Describe various reasons for resistance to change. Discuss different ways by which resistance to change can be handled. Discuss with reference to an organization how change process has taken place and handled resistance to change. Briefly describe the organization you are referring to. 5. Discuss the reasons for the process change to occur. Illustrate any one of these processes with reference to an organization where this process was used and its effectiveness. Briefly describe the organization you are referring to.

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1.

Describe the factors to taken care of before proceeding for cultural change. Briefly discuss indigenization and the complexities involved in the Management of change.

In order to talk about why cultures change, we first have to have some idea as to what culture is. Let us look at the definition of culture from the link below. It says that In social science, culture is all that in human society which is socially rather than biologically transmitted... This means that the term "culture" covers pretty much everything about our society -- what religion, if any, people follow; what music they like; how they are educated. When we look at things in this way, cultural change can occur for any number of reasons. The foods that we eat in a culture can change when immigrants come to the country and bring their cuisine with them. The music we listen to can change in that same way. Education can change when there are preceived threats to our country -- this happened when science and math education boomed after the Russians launched Sputnik. Since culture is such a broad thing, many things can change culture. However, I would argue that the most likely cause of cultural change is contact with other cultures whether that be

through immigration, through media (seeing other cultures on TV, etc) or other types of contact.
ANY ORGANIZATION CULTURAL IMPLEMENTATION IS A CHANGE. -DEFINE THE CULTURE VERY CLEARLY. -BEFORE IMPLEMENTATION. INTRODUCE ''CHANGE MANAGEMENT''. Merely saying '' GOOD CULTURE'' is a not good enough. It can mean many things to many people. GOOD CULTURE comes in many shapes like -value based culture. -competitive culture -learning culture -productive culture etcetc. ONCE YOU DEFINE THE CULTURE ''CLEARLY'', IT BECOME VERY EASY TO IMPLEMENT IT. ============================================ HERE IS AN EXAMPLE OF ''implementing value based culture''.

the organisation I am referring to

The organization, I am familiar with is a -a large manufacturer/ marketer of safety products -the products are used as [personal protection safety] [ industrial safety] -the products are distributed through the distributors as well as sold directly -the products are sold to various industries like mining/fireservices/defence/ as well as to various manufacturing companies. -the company employs about 235 people. -the company has the following functional departments *marketing *manufacturing

*sales *finance/ administration *human resource *customer service *distribution *warehousing/ transportation *TQM ============================================== IN THIS COMPANY, WITH WHICH I AM ASSOCIATED, Value based culture is the management approach that ensures corporations are run consistently on value, such as -maximising shareholders value -adding values to the customers' service. etc etc THIS INCLUDES -creating value in all actions/strategy -managing for values -measuring value with the help of metrics etc etc ======================================== THE EMPLOYEES WHO LIVE BY THE VALUES OF THE ORGANIZATIONS SHOW IT BY THEIR EFFORTS / PURPOSE/DIRECTION/SUPPORT. -by aligning all their actions/programs with the organization vision. -by aligning all their actions/programs with the organization mission. -by aligning all their actions/programs with the organization objectives. -by aligning all their actions/programs with the organization strategies. -in maximization of value creation for customers -in increasing value for company products for the market -in aligning company activties with the interest of shareholders -in maintaining quality communication internally/ externally

-in allocation of resources [ finance] -in allocation of resources [ human resources ] -in handling complexity in operation -in handling uncertainty in operation -in managing risks in operation. -in planning / budgeting
========================================

-WATCH THE Work practices

1 Direction - management's style and attitude as it affects employees 2 Commitment - attitudes towards work and the organisation 3 Recognition - motivation and recognition of employees 4 Collaboration - cooperation and teamwork within groups and departments

-WATCH THE Cultural Values

:

1 Risk - attitudes toward risk taking, structure and ambiguity 2 Individuality - attitudes toward contribution and self reliance 3 Compliance - attitudes toward rules and exceptions 4 Dominance - attitudes towards hierarchy, power and equality =========================================================== == WHAT ROLE IS PLAYED BY TOP MANAGEMENT IN THIS ORGANIZATION, IN CREATING VALUE BASED CULTURE SYSTEM? THE TOP MANAGEMENT IN CREATING VALUE BASED CULTURE SYSTEM PROVIDE -value based corporate vision -develop a value based mission statement -provide a value based corporate OBJECTIVES -provide a value based corporate STRATEGIES

-provide a value based corporate COMMUNICATION SYSTEM. -provide a value based corporate GOVERNANCE -provide a value based corporate CULTURE -provide a value based corporate ORGANIZATION STRUCTURE -provide a value based corporate MANAGEMENT STYLE -provide a value based corporate DECISION MAKING PROCESS. -provide a value based corporate PERFORMANCE MANAGEMENT SYSTEM -provide a value based corporate REWARD PROCESS -provide a value based corporate CLEAR MANAGEMENT PRIORITIES. -provide a value based corporate BALANCE BETWEEN SHORT TERM/LONG TERM TRENDS. -provide a value based corporate SHARED VALUES -provide the required skills to the employees etc etc ============================================ IN IMPLEMENTING CULTURAL CHANGE, WHAT WE DO -DEFINE THE CULTURE VERY CLEARLY. -''CHANGE MANAGEMENT'' IS MORE IMPORTANT THAN CULTURE ITSELF. -What I have suggested is a blend of guidelines/ideas/concepts on the process of managing the change of culture in an organization. I must also emphasise that the culture change is always done with a purpose. YOU MUST STATE THIS VERY CLEARLY UPFRONT. PEOPLE ANCHOR THE BEHAVIOR. THE PURPOSE FIRST, THEN CHANGE

ALL THESE STEPS WILL HELP YOU TO MANAGE YOUR

ORGANIZATION MORE EFFECTIVELY. ================================================== ORGANIZATION CULTURE/ CHANGE Organizational culture ultimately determines whether or not any improvement initiatives/CHANGES will be successful. Culture defines the work environment. The organization can design the most efficient possible work processes, acquire the very best management information systems, and employ state-of-the-art high technology, but unless the culture is prepared for change, improvement efforts will fall short. Management teams that must reduce costs and improve performance are immediately confronted with a daunting challenge that they will ignore only at their peril: how does one go about changing the organizations culture? Understanding Change Management It is axiomatic that constructive change cannot be imposed from the top. This change formula elegantly explains why this is true and points the way to successful change implementation. The Change Formula: C = V x D >R Where: C = Change V = A positive vision for the future D = Dissatisfaction with the status quo, and R = Natural human resistance to change If you have ever put forward a great idea only to have it rejected or ignored by the very people whom it would most benefit, you will appreciate the change formula. The formula says that constructive change will occur in an organization only when a positive vision for the future multiplied by dissatisfaction with the status quo (the relationship is not linear) is greater than the natural human resistance to change. This organization s culture is defined by the beliefs of its CEO, executives, managers, staff and specialists; the assumptions upon which those beliefs are based; and the behaviors that rest upon those assumptions. Human beings are creatures of habit. Because established routines help us order our lives we naturally resist threats to those routines. By definition, cultural change requires large-scale modification of routine-based behavior. It may require re-evaluation of long held and deeply cherished beliefs. No matter how great an idea is, if the people who

would be affected by it are reasonably satisfied with the current situation, they will not voluntarily change their routines. Conversely, no matter how dissatisfied people are with things as they are, unless and until they believe that change will materially improve their circumstances, they will not change either, preferring less than ideal conditions over the unknown. ========================================================= HERE IS A SIMPLE APPROACH/GUIDELINE FOR Creating Change 1. Establish a sense of urgency Communicate the business situation or reason for implementing the culture change why is it necessary? -------------------------------------------------------2. Create the guiding coalition Establish a team with the knowledge to initiate change and the power to make the change happen. -----------------------------------------------------------------3. Develop a vision and strategy Develop the organization s vision for the change and the strategies for implementation. -----------------------------------------------------------------------4. Communicate the change vision Share the vision and how it will affect the participants ----------------------------------------------------------------------------5. Empower broad-based action Give the CHANGE team the authority to initiate the changes ---------------------------------------------------------------------------------6. Generate short-term wins Work with the practice groups that are mostly likely to accept THE CHANGE and celebrate their achievements --------------------------------------------------------------------------------------7. Consolidate gains and produce more change

Use success to create more success. ------------------------------------------------------------------------------------8. Anchor new approaches in the culture Make the CHANGE initiatives a part of the daily work process of the firm. ========================================================= === THE MOST IMPORTANT POINT TO NOTE IN CHANGING ''CULTURE'' IS THE ''TRANSITION'' . WHY? because transition occurs in the course of every attempt at change. Transition is the state that change puts people into. The change is external (the different policy, practice, or structure that the leader is trying to bring about), while transition is internal (a psychological reorientation that people have to go through before the change can work). The trouble is, most leaders imagine that transition is automatic -- that it occurs simply because the change is happening. But it doesn't. Just because the computers are on everyone's desk doesn't mean that the new individually accessed customer database is transforming operations the way the consultants promised it would. And just because two companies are now fully "merged" doesn't mean that they operate as one or that the envisioned cost savings will be realized. Even when a change is showing signs that it may work, there is the issue of timing, for transition happens much more slowly than change. That is why the ambitious timetable that the leader laid out to the board turns out to have been wildly optimistic: it was based on getting the change accomplished, not on getting the people through the transition. Transition takes longer because it requires that people undergo three separate processes, and all of them are upsetting.

Saying Goodbye. The first requirement is that people have to let go of the way
that things -- and, worse, the way that they themselves -- used to be. As the folkwisdom puts it, "You can't steal second base with your foot on first." You have to leave where you are, and many people have spent their whole lives standing on first base. It isn't just a personal preference you are asking them to give up. You are asking them to let go of the way of engaging or accomplishing tasks that made them successful in the past. You are asking them to let go of what feels to them

like their whole world of experience, their sense of identity, even "reality" itself. On paper it may have been a logical shift to self-managed teams, but it turned out to require that people no longer rely on a supervisor to make all decisions (and to be blamed when things go wrong). Or it looked like a simple effort to merge two work-groups, but in practice it meant that people no longer worked with their friends or reported to people whose priorities they understood.

Shifting into Neutral. Even after people have let go of their old ways, they find
themselves unable to start anew. They are entering the second difficult phase of transition. We call it the neutral zone, and that in-between state is so full of uncertainty and confusion that simply coping with it takes most of people's energy. The neutral zone is particularly difficult during mergers or acquisitions, when careers and policy decisions and the very "rules of the game" are left in limbo while the two leadership groups work out questions of power and decision making. The neutral zone is uncomfortable, so people are driven to get out of it. Some people try to rush ahead into some (often any) new situation, while others try to back-pedal and retreat into the past. Successful transition, however, requires that an organization and its people spend some time in the neutral zone. This time in the neutral zone is not wasted, for that is where the creativity and energy of transition are found and the real transformation takes place. Today, it won't take 40 years, but a shift to self-managed teams, for instance, is likely to leave people in the neutral zone for six months, and a major merger may take two years to emerge from the neutral zone. The change can continue forward on something close to its own schedule while the transition is being attended to, but if the transition is not dealt with, the change may collapse. People cannot do the new things that the new situation requires until they come to grips with what is being asked.

Moving Forward. Some people fail to get through transition because they do
not let go of the old ways and make an ending; others fail because they become frightened and confused by the neutral zone and don't stay in it long enough for it to do its work on them. Some, however, do get through these first two phases of transition, but then freeze when they face the third phase, the new beginning. For that third phase requires people to begin behaving in a new way, and that can be disconcerting -- it puts one's sense of competence and value at risk. Especially in organizations that have a history of punishing mistakes, people hang back during the final phase of transition, waiting to see how others are going to handle the new beginning. Most leaders come from backgrounds where technical, financial, or operational skills were paramount, and those skills provide little help when it comes to leading

people through transition. Such leaders may be pushing the limits of their understanding of the future, and they need perspective and advice. That is where a trusted colleague, confidant, coach, or consultant can offer valuable counsel to the leader. This person's background or professional affiliation can vary widely; what matters is that she or he understands how to help people through transition. It is a role that is far more interpersonal and collaborative than is played by most consultants or trainers accustomed to teaching a skill or prescribing a solution. No training program can prepare a leader for managing a transition. Yet no leader can effectively lead change -- which is what leadership is all about -- without understanding and, ultimately, experiencing -- the transition process. What leaders need, instead, is individualized assistance whereby they learn to 1 Create plans to bring their followers through the particular transition that they face -- not through generic "change." A trainer can teach leaders a generalized approach ("The Ten Steps..."), but a good coach can help the leaders to discover their own best approaches. 2 Work with their own goals, limitations, and concerns to create a development plan that prepares them for the future. Times of transition are becoming the rule rather than the exception. Yet few leaders know how to prepare for the changes that lie ahead. Transition leadership skills must be congruent with, must capitalize and build on, the leader's own strengths and talents. They cannot be found in a set of theoretical leadership skills. The transition adviser works collaboratively with each leader to assess the leader's place in the three-part transition process, the strengths the leader brings and how to leverage them, and what the current situation demands. It is a personal and completely customized process. ---------------------------------------------------------------------------------------------------

A Method to Managing Transition

Although the details of a transition management plan are unique to each situation, the adviser must help a leader with the following essential steps: Learn to describe the change and why it must happen, and do so succinctly -- in one minute or less. It is amazing how many leaders cannot do that. Be sure that the details of the change are planned carefully and that someone is responsible for each detail; that timelines for all the changes are established; and that a communications plan explaining the change is in place.

Understand (with the assistance of others closer to the change) just who is going to have to let go of what -- what is ending (and what is not) in people's work lives and careers -- and what people (including the leader) should let go of. Make sure that steps are taken to help people respectfully let go of the past. These may include "boundary" actions (events that demonstrate that change has come), a constant stream of information, and understanding and acceptance of the symptoms of grieving, as well as efforts to protect people's interests while they are giving up the status quo. Help people through the neutral zone with communication (rather than simple information) that emphasizes connections with and concern for the followers,. To keep reiterating the "4 P's" of transition communications: The purpose: Why we have to do this The picture: What it will look and feel like when we reach our goal The plan: Step-by-step, how we will get there The part: What you can (and need to) do to help us move forward. Create temporary solutions to the temporary problems and the high levels of uncertainty found in the neutral zone. For example, one high-tech manufacturer, when announcing the closing of a plant, made interim changes in its usual reassignment procedures, bonus compensation plans, and employee communications processes to make sure that displaced employees suffered as little as possible, both financially and psychologically. Such efforts should include transition monitoring teams that can alert the leader to unforeseen problems -- and disband when the process is done. Help people launch the new beginning by articulating the new attitudes and behaviors needed to make the change work -- and then modeling, providing practice in, and rewarding those behaviors and attitudes. For example, rather than announcing the grandiose goal of building a "world-class workforce," leaders of transition must define the skills and attitudes that such a workforce must have, and provide the necessary training and resources to develop them. Since the ability to manage transition is tied to the realities of an actual leader in an actual situation, mutual trust between adviser and leader is essential. Only that way can leaders be honest enough to bring their fears and concerns to the surface quickly, hear what the situation is really "saying" rather than focusing on a program that a consultant is trying to sell, and gain the personal insight and awareness of the transition process that can be carried into the future.

Because this transition management relationship is a close and ongoing one, the adviser gets to know the leader's situation well and follows it as it changes. Understanding the dynamics of transition is far removed from the kind of leadership training most organizations provide. Traditional trainers and consultants seldom possess such intimate knowledge of their client. Whatever personal coaching they provide is usually subsumed to the teaching of a generic skill or body of knowledge. And because the relationship is time-limited, there is a natural pressure to produce quick, clear results. However, because transition advisers work within the context of the situation at hand, their focus is not on how to "be a leader" or even how to "change an organization" but on how to provide the particular kind of leadership that an organization in transition demands. For that reason, the results of the relationship are very specific: the development of new skills and behaviors geared to the needs of the unique time and circumstances in which the person leads. ================================================

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2.

What is turn around management? Briefly explain the kinds of Turn around situations before an organization goes ahead with strategies. Give an example where turnaround was used. Briefly discuss the organization you are referring to.

TURNAROUND MANAGEMENT is a process of devising , executing and managing a plan of corporate renewal. The process involves identifying the key

drivers of an unstable business and implementing a sustainable recovery change strategies which rapidly improves the business. THE TURNAROUND MANAGEMENT involves a number of steps: STEP 1. INDENTIFY THE ROOT CAUSES. -sales down due to weak economy. -overly optimistic sales projections -poor strategic choices -high operating costs -high fixed costs that decrease flexibility -insufficient resources -unsuccessful R&D projects -high successful competitor -excessive debt burden -inadequate financial controls. ---------------------------------------------STEP 2 CONDUCT A SITUATION AUDIT / ANALYSIS. ------------------------------------------------STEP 3 DEVELOP A STRATEGIC CORPORATE OBJECTIVE -------------------------------------------------------STEP 4 DEVELOP A CORPORATE STRATEGY -------------------------------------------------------------STEP 5 DEVELOP A CORPORATE BUSINESS RESTRUCTURING PLAN

1 Strategic restructuring: The focus lies on core markets and promising business segments. Corporate divisions destroying value are divested. 2 Operational restructuring: It focuses on leaner organization and leaner processes, on the simplification of manufacturing networks and corporate structures, as well as on maximizing efficiency and effectiveness. 3 Financial restructuring: A combination of cost reduction, more flexible structures, and the development of a sustainable financial concept. ------------------------------------------------------------STEP 6 DEVELOP A CHANGE MANAGEMENT PROGRAM -------------------------------------------------------------STEP 7 DEVELOP AN EMERGENCY ACTION PLAN. ------------------------------------------------------------STEP 8 DEVELOP AN IMPLEMENTATION PLAN. -----------------------------------------------------------------THINGS TO REMEMBER: 1 the overall financial situation is as transparent as possible and that the influence of the identified restructuring measures becomes clear, 2 rapid analysis and concept development considering the information needs of the stakeholders are conducted, 3 the most relevant people from the organization are involved in order to achieve acceptance for the implementation of improvements, 4 consistent project management and controlling are established during the implementation phase to ensure that the pursued improvements are actually achieved, 5 all stakeholders are continuously informed and involved in order to identify risks and avoid counterproductive conflicts. ========================================================= TURNAROUND MANAGEMENT --CASE STUDY

The organisation I am referring to, was facing

a problem of declining sales/ market share for 2 consecutive year.

The organization, I am familiar with is a -a large manufacturer/ marketer of safety products -the products are used as [personal protection safety] [ industrial safety] -the products are distributed through the distributors as well as sold directly -the products are sold to various industries like mining/fireservices/defence/ as well as to various manufacturing companies. -the company employs about 235 people. -the company has the following functional departments *marketing *manufacturing *sales *finance/ administration *human resource *customer service *distribution *warehousing/ transportation *TQM ============================================== STEP 1. INDENTIFY THE ROOT CAUSES. -poor strategic choices -high operating costs -insufficient resources -high successful competitor -inadequate financial controls. ---------------------------------------------STEP 2 CONDUCT A SITUATION AUDIT / ANALYSIS. -the demand for the market was growing at 13% -the company sales was growing at 7%

-the company was selling directly to the customers, using the salesforce. -lack of adequate product range. -lack of market coverage -lack of skills among the salesforce -demand for technical products etc etc ------------------------------------------------STEP 3 DEVELOP A STRATEGIC CORPORATE OBJECTIVE -go for 20% growth ----per annum over the next 5 years. -enter new market segments. [ 15% additional sales volume] -offer new product [ 15% additional sales volume ] -------------------------------------------------------STEP 4 DEVELOP A CORPORATE STRATEGY -restructure the marketing department [ 3 product group management] -to achieve 80% sales through distributors in 5 years time. -to conduct more marketing development for new products. -to train all staff in the product knowledge. etc -------------------------------------------------------------STEP 5 DEVELOP A CORPORATE BUSINESS RESTRUCTURING PLAN 1 Strategic restructuring: The focus lies on core markets and promising business segments. Corporate divisions destroying value are divested. -3 new product groups. -development a new salesdepartment to develop distributor sales. -------------------------------2 Operational restructuring: It focuses on leaner organization and leaner processes, on the simplification of manufacturing networks and corporate

structures, as well as on maximizing efficiency and effectiveness. 3 Financial restructuring: A combination of cost reduction, more flexible structures, and the development of a sustainable financial concept. -reorganizing the sales territories. -appointment of new distribtors --geographically. -pay for performance systems. ------------------------------------------------------------------------------------------STEP 6 DEVELOP A CHANGE MANAGEMENT PROGRAM -implementation of the change management program over the 6 months period. -------------------------------------------------------------STEP 7 DEVELOP AN EMERGENCY ACTION PLAN. which included -new product sourcing -new product development -new sales policies development -new distributors policies development -new training for salesforce - to manage the distributors. -new training for customer service staff. -new order processing / servicing system. etc etc ------------------------------------------------------------STEP 8 DEVELOP AN IMPLEMENTATION PLAN. A PHASED PROGRAM OF IMPLEMENTATION. ========================================== OVER THE NEXT 5 YEARS, THE COMPANY -MAINTAINED A 20 % GROWTH -IMPROVED THE MARKET SHARE SIGNIFICANTLY.

-IMPROVED THE CUSTOMER COVERAGE BY 100% -MAINTAINED A STEADY SALES / PROFIT GROWTH.

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3. Explain the concept of Intervention and discuss different types of interventions. Briefly describe comprehensive interventions and their relevance.
CONCEPT OF INTERVENTION Meaning of Interventions 1 The planned activities client & consultants participate during the course of an organization development program 2Attempt to improve the fit between the individual & organization between the organization & its environment. 3Emphasis more on collaboration, confrontation & participation.

Types of Interventions

1.Sensitivity training
1Purpose is to sensitize people to the perceptions & behavior related aspects of themselves & others. 2Feedback helps the member to know about themselves. 3Improves listening skills, add openness, helps to accept individual differences 4Used to reduce interpersonal conflict 5Enhances group cohesiveness & improves organizational productivity & efficiency 6Facilitator plays important role by moderating the discussion & by providing constructive feedback. 7Broader scope , lacks specific goal

2.Survey Feedback 1Systematic data collection from all levels of the organization. 2Sharing of the information 3Interpretation/analysis of data 4Transfers the ownership of the data from change agent to participants 5Participants plays key role in developing solutions to the

problem.

3.Process consultation interventions 1Emphasizes more on resolving interpersonal problems. 2Increases the participation in problem solving. 3Specific goal of improving a particular process. 4Emphasizes on organizational process Coaching & counseling by consultants 5Determines processes that needs improvement

4.Team interventions 1Used to improve the performance of work teams. 2Problem diagnosis Task accomplishment 3Maintaining team relationships improving team & organizational processes

A.Forms of team building interventions 1Analyze the reason for the existence of team, objectives of the team & how the team prepares the action plan for the accomplishment. 2General critic of the team 3Team leader & members decide about the need for

the diagnostic meetings. 4Information is collected through whole groups, or subgroups or pairs of individual. 5 Half a day duration Meeting. 6Based on the need formal meeting is conducted 7Action plan is prepared 8Guidance towards the achievement of the goal.

B.The formal group team building meeting 1Aims at improving relationship between team members & their effectiveness. 2Meeting is initiated by manager or team members under the supervision of external consultant. 3Issues are prioritized Responsibilities are assigned to each member 4Action plan is prepared. 5Meeting is conducted away from the work place.

5.Types of Interventions 1Gestalt approach to team building 2Focuses on individuals based on psychotherapy. 3Self awareness is essential 4Accepting as a whole as it is (+ ve, -ve)

5Awareness know-how Authenticity Accepting responsibility 6Negative feeling can be resolved through confrontation & repression 7Practiced by trained practitioner

Other exercises used for team building 1Role analysis Technique (RAT) John Thomas 2The role defined is known as focal role 3Defining the role by team members 4Expectations, suggestions by team members 5Preparation of role profile explaing the authority, obligation of the role 6Role clarity is achieved 7Role negotiation technique ( RNT)- Roger Harrison 8Resolving conflict by making some compromises 9RNT consultants act as a negotiator between the conflicting parties

7.Other exercises used for team building 1Steps during RNT 2Contract setting Ground rules submitted in written format

3Issue diagnosis what kind of change is expected 4Hoe change will affect on performance. 5Negotiation period ( 2 days) 6Discussion of most important changes required from each other 7Expectations from each others 8Content of the agreement in written format 9Follow up meeting

8.Other exercises used for team building 1Forced field analysis- Kurt Lewin 2Used for understanding problematic situation & for planning corrective action. 3Two types of forces4Driving forces forces for change 5Restraining forces forces resisting change 6Equilibrium can be obtained to get desired outcome of the change program 7Essential steps8Defining current problem situation 9Desired condition 10Identifying driving, resisting forces 11Strong & weak forces are identified 12Strategy to move from current condition to desired

condition 13Implementation of action plan

Other exercises used for team building 1Intergroup team building interventions 2Improves intergroup relations between work teams 3Easy flow of communication 4Steps5OD practitioner meets the leaders of the groupfor understanding the requirement. 6A & B two groups meet separately & are asked to write about the attitudes & perceptions towards each other, problem related to group etc 7Group also tries t o anticipate what the other group would write 8Exchange of written information 9Understands the communication gap 10Helps in soarting out many issues 11Unresolved problems are again discussed 12Helps to improve interactions

10.Third party peace making Interventions 1Method for solving interpersonal conflict

2Confrontation technique 3Motivating parties to resolve conflict 4Insist on exploring possible solutions 5Sufficient time is given to understand each other 6Efforts to overcome negative feeling7Differentiation phase- Concentrate on differences in opinion 8Integration phase- Shares positve feeling & common things 11.Structural Interventions 1Also known as Technostructural Interventions. 2Bring about the changes in the task , structure & technological processes. =============================== the organisation I am referring to
The organization, I am familiar with is a -a large manufacturer/ marketer of safety products -the products are used as [personal protection safety] [ industrial safety] -the products are distributed through the distributors as well as sold directly -the products are sold to various industries like mining/fireservices/defence/ as well as to various manufacturing companies. -the company employs about 235 people. -the company has the following functional departments *marketing *manufacturing *sales

*finance/ administration *human resource *customer service *distribution *warehousing/ transportation *TQM

THIS ORGANIZATION USES THE TEAM INTERVENTION -Used to improve the performance of work teams. -Problem diagnosis of Task accomplishment -Maintaining team relationships improving team & organizational processes

**Analyze the reason for the existence of team, objectives of the team & how the team prepares the action plan for the accomplishment. **General critic of the team **Team leader & members decide about the need for the diagnostic meetings. **Information is collected through whole groups, or subgroups or pairs of individual. **Half a day duration Meeting. **Based on the need formal meeting is conducted **Action plan is prepared

**Guidance towards the achievement of the goal. THIS ENABLES TO IMPROVE THE RELATIONSHIP BETWEEN TEAMS/ INDIVIDUALS AND THEIR EFFECIVENESS. ############################################

4. Describe various reasons for resistance to change. Discuss different ways by which resistance to change can be handled. Discuss with reference to an organization how change process has taken place and handled resistance to change. Briefly describe the organization you are referring to.
WHY PEOPLE RESIST CHANGE
It used to be an accepted fact that everyone resists change. We now know that it is not true. There are many reasons why a person resents (negative attitude) and/or resists (active opposition to) a particular change. Likewise, there are many reasons why a person accepts

(neutral attitude) and/or welcomes (positive attitude) a particular change.

Why People Resent or Resist Change

There are many reasons why employees of shapes may react negatively to change.

all sizes/

Personal Loss. People are afraid they will lose something. They might be right or they might be wrong in their fear. Some of the things they might lose are as follows:

Security. They might lose their jobs through a reduction in force or elimination of their jobs. Automation and a decline in sales often bring about this feeling.

Money. They might lose money through a reduction in salary, pay, benefits, or overtime. Or, expenses such as travel may be increased because of a move to another location that is farther from their home.

Pride and satisfaction. They might end up with jobs that no longer require their abilities and skills.

Friends and important contact. They might be moved to another location where they will no longer have contact with friends and important people. This loss of visibility and daily contacts is very serious for people who are ambitious as well as those with a strong need for love and acceptance.

Freedom.They might be put on a job under a boss who no longer gives them freedom to do it "their way." Closer supervision that provides less opportunity for decision making is a dramatic loss to some people.

Responsibility.Their jobs might be reduced to menial tasks without responsibility. This may occur when a new boss takes over or through changes in methods or equipment.

Authority. They might lose their position of power and authority over people. This frequently happens when re-organization takes place or when a new boss decides to usurp some of the authority that an individual had.

Good working conditions. They might be moved from a large private office to a small one or to a desk in a work area with only a partition between people.

Status.Their job title, responsibility, or authority might be reduced from an important one to a lesser one with loss of status and recognition from others. This also happens when another layer of management is inserted between a subordinate and manager.

No Need.

The typical reaction is, "What's the matter with the way things are now?" Or, "I don't see any reason why we should change."

More Harm Than Good.

This is even stronger than the previously mentioned "No Need". People really feel it is a mistake - that it will cause more problems that it is worth. Sometimes this reaction is justified. It is particularly common when people at the "bottom" of an organization feel that top management makes changes without knowing what is going on "down on the line."

Lack of Respect.

When people have a lack of respect and/or negative attitude toward the person responsible for making the change, there is a strong tendency to resent and even resist it. Their feelings do not allow them to look at the change objectively.

Objectionable Manner.

Sometimes change is ordered in such a way that the people resent and/or resist because they do not like being told what to do.

Negative Attitude.

People with a negative attitude toward the organization, the job and/or the boss are very apt to resent or resist change no matter what it is.

No Input.

One of the most significant reasons is the fact that the people who felt they should have been asked were not asked for their ideas concerning the change.

Personal Criticism.

Whether or not the change is actually criticizing the things that were previously done or the way in which they were done, people may look upon the change as a personal criticism.

Creates Burdens.

Some changes add more work and with it confusion, mistakes and other negative results.

Requires Effort.

The change will obviously require more effort. Much of the effort accomplishes very little, if anything. Whenever changes require more time and effort, people are apt to resent and even resist them, particularly if no rewards accompany the extra effort.

Bad Timing.

The timing of a change is very important to its acceptance. If it comes at a time when people are already having problems, the change is usually resented and probably resisted by those who are supposed to implement it.

Challenge to Authority.

Some people are testing their power and influence by simply refusing to do it.

Secondhand Information.

Some people are very sensitive about the way they learned of the change. If they found out about if from a secondhand source, they might resist it until they hear it "from the horses mouth."

What is the Real Reason for Resentment or Resistance?

Managers often have difficulty in determining the real reason why subordinates resent and/or resist a change. They may feel that the subordinates are just being stubborn or that they are afraid they will lose something. The real reason may be entirely different. ----------------------------------------------------------------IN MANAGING ORGANIZATIONAL CHANGE

ONE SET OF PEOPLE ACCEPT CHANGE--WHY?

WHY PEOPLE ACCEPT OR WELCOME CHANGE

While some people resent and/or resist change, others accept and welcome it. The degree to which these opposites occur depends on many factors. Some of the reasons for positive reaction to change are described in this section.

Personal Gain.

When changes are made, some people may gain such things as the following:

Security.

They feel more secure in their job because of the change. Perhaps more of their skills will be used.

Money.

They may get a salary increase, more benefits, an incentive or profit-sharing programme, or more overtime.

Authority

They may be promoted to a position of greater authority, or they may get a new boss who gives them more authority than they had under the previous boss.

StatuslPrestige.

They may get a new title, a new office, or a new responsibility, their boss may have assigned more responsibility, or they may have a new boss who assigns more responsibility than the previous one did.

Better working conditions.

They may get a new working schedule, new equipment, or other conditions that make the job easier or more enjoyable.

Self-satisfaction.

They may get new satisfaction or feeling of achievement because of the change. Perhaps the new job gives them more of a change to use their abilities, or the boss may eliminate some of the obstacles that had prevented them from doing their best.

Better personal contacts.

They might be located in a place where they will have closer contact with influential people. Their visibility is very important to some people.

Less time and effort.

The change may make their job easier and require less time and effort.

Provides a New Challenge.

While some people look at a change negatively because it requires effort and perhaps risk, others will be eager for it because it provides a new challenge.

Likes/Respects the Source.

If people have a positive attitude toward the person or the department they represent, they will probably accept and even welcome the change.

Likes Manner.

People who are asked to do things instead of told to do them may react very positively. Someone described the most important words in the English language as follows:

Five most important words:"I am proud of you." Four most important words:"What is your opinion?" Three most important words:"If you please." Two most important words:"Thank you." One most important word:"You (or possibly We)."

The tone may have much to do with resentment or acceptance.

Reduces Boredom.

Changes that are designed to reduce boredom will be welcomed by some.

Provides Input.

One of the most powerful approaches to get acceptance is to ask for input before the final decision is made.

Desires Change.

Some people will react to change by thinking or saying, "It's about time." In other words, they have been anxious for the change to occur.

Improves Future.

Some changes will open up new avenues for future success in the organization. People will be provided with opportunities to show what they can do. Future possibilities include promotion, more money, more visibility, more recognition and more selfsatisfaction.

Right Time.

Some changes come at just the right time. If more money is needed to pay current bills or to buy a luxury item like a video recorder or a boat or to take a vacation, the change will be welcomed. =============================== IN MANAGING THE ORGANIZATIONAL CHANGE, WE NEED TO MANAGE BOTH THE TYPES OF PEOPLE GROUP.

the organisation I am referring to

The organization, I am familiar with is a -a large manufacturer/ marketer of safety products -the products are used as [personal protection safety] [ industrial safety] -the products are distributed through the distributors as well as sold directly -the products are sold to various industries like mining/fireservices/defence/ as well as to various manufacturing companies. -the company employs about 235 people. -the company has the following functional departments *marketing *manufacturing *sales *finance/ administration *human resource *customer service *distribution *warehousing/ transportation *TQM

ADOPT THE FOLLOWING MODEL FOR CHANGE

1.Explain the reason for change with facts. If there are risks , acknowledge them but explain why it is worth taking the risks.

2.Objectively explain the benefits that could result from the change.

3.Get ready and sell the benefits at all times.

4.Anticipate objections.

5.Listen in depth.

6.Seek questions and clarifications / answer them.

7.Invite participation and ask for suggestions .

8.Avoid surprise because this stirs up unreasoning opposition.

9.Acknowledge the rough spots and show you plan to manage them.

10.Establish a timetable.

11.Set standards and explain your expectations.

12.Contact the informal leaders and use their resources.

13. Acknowledge the staff cooperation / support.

14.Provide feedback on the progress.

15.Reinforce the positive . 16.Keep the two way communication open.

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HOW DO YOU INITIATE CHANGE

Often it is easier to carry out a job if there is a specific plan to follow. When major changes are to be installed, careful planning and preparation are necessary. Strengthening the forces promoting the change and weakening resistance to it are the main tasks.

CREATE A CLIMATE FOR CHANGE

How people react to proposed changes is greatly influenced by the kind of climate for change that the manager/supervisor has created in the department.

HOW IS THE RIGHT KIND OF CLIMATE CREATED?

Supervisors and managers who have enthusiasm for progress and change build a healthy climate.

Creating the right climate is more than just passing on changes. It involves:

Encouraging employees to seek ways of improving their jobs.

Seeking suggestions and ideas from employees.

This requires the manager/supervisor to listen and seriously consider suggestions. It is easy to see that there is a great deal of ego involvement in coming forth with an idea for improvement. Change can become an exciting and dynamic way of life. The manager/supervisor determines the climate in which they initiate change.

GET READY TO SELL

Much of the difficulty in getting co-operation stems from the employees lack of understanding of how the change will affect them. With a little effort, managers/supervisors can find most of the answers to employees' questions before they are even asked. Answers to these questions would be useful.

What is the reason for the change? Whom will it benefit and how? Will it inconvenience anyone, if so, for how long? Will training or re-training be necessary? When does it go into effect?

Armed with the answers to these questions a manager/supervisor can head off many objections and can develop a plan to present the change.

IDENTIFY THE SOURCES OF HELP

Why should you, the managers and supervisors, shoulder the burden alone? Staff can frequently be a great help in preparing to sell a change by explaining technical aspects and demonstrating new techniques.

One of the most overlooked sources of help in introducing changes are the informal leaders in the work group. With their help the job becomes easier. Giving recognition to informal leaders puts them in a co-operative frame of mind.

Since union stewards are often informal leaders, their co-operation ought to be solicited. The backing of union stewards makes the job easier.

ANTICIPATE OBJECTIONS

Change that upsets routines, requires new knowledge or skills, or inconveniences people are bound to meet with some objections or resistance. Looking at a change from the employees point of view will usually be enough to help determine what their objections are likely to be. Knowing the objections, we can, with a little creative thought, turn these objections into advantages.

Showing the staff with reason or logic will not do the job. Managers/supervisors have to convince people that the change is really best for them and that will not happen until their objections are dealt with seriously.

SELL BENEFITS

Everyone is concerned with, "What's in it for me?"

"Will the change mean more satisfying work. greater security. opportunity to show what I can do. more responsibility. more pay. less fatigue. less confusion. greater independence?"

The benefits used to motivate people to co-operate should be put on as personal a level as possible. It would be dishonest, however, not to recognise any disadvantages that a change may bring. These can usually be countered with long range benefits.

One of the techniques that is helpful in identifying the characteristics and values of the proposed changed condition is a "Word Picture". The picture makes the new condition desirable in the minds of the staff.

A)One of the ways this concept of "word picture" is used, is the physical change in office layout or new equipment or any other physical changes.

B)To picture or model a change in policy, organization or operation is more difficult than the physical change. The principle is the same. The picture can help in communicating the desirability of the change and in fine tuning the change because it makes it possible to discuss how things will operate. It may take the form of a flow chart, an organization chart or a description of relationships.

To use this approach for deciding whether to initiate a change, you can take the following steps:

Describe as clearly as possible the present situation.

Describe as clearly as possible the desired situation.

Analyse what specific changes will have to take place in the key factors involved to produce the desired situation. Look at such key factors as bosses, employees, equipment, physical environment, policies and procedures, work methods, materials and time. Identify the relevant factors.

Assess the strengths of the forces promoting the desired situation and of those resisting it.

Determine what action to take. Choices are:

A)Do nothing, the resistant forces are stronger than the forces promoting change.

B)Act to strengthen the promoting forces and/or to weaken resistance, by concentrating one's efforts on the key factors.

LISTEN IN DEPTH

Employees have a right to be heard. If employees are treated with respect, they probably will respond in kind. They will feel better too, if they know their concerns have been considered.

FOLLOW-UP

After having conscientiously sold the benefits of a change, it is tremendously important that the managers/supervisors see that their promises have materialized. A sincere interest in how the change has affected the employee and a willingness to make adjustments, help build the climate in which future changes will be initiated.

===============
CHANGES AND COMMUNICATION
The following steps will help you to minimize resistance:

1.Explain why. Provide all the facts about the reason for changing. If there are risks, acknowledge them but explain why the risk is worth taking.

2.Objectively explain the benefits that could result from the change.

3.Seek questions/clarifications and answer them.

4.Invite participation and ask for suggestions because the people involved know the situation best.

5.Avoid surprise because this stirs unreasoning opposition more than any other factor.

6.Acknowledge the rough spots and explain how you plan to smooth the change.

7.Set standards and explain your expectations.

8.Contact the informal leaders and use their resources.

9.Acknowledge and reinforce the staff's co-operation and give them feedback on the progress.

10.Keep the two way communications open for suggestions and corrections.

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5. Discuss the reasons for the process change to occur. Illustrate any one of these processes with reference to an organization where this process was used and its effectiveness. Briefly describe the organization you are referring to.
PROCESS CHANGE TAKES PLACE FOR A NUMBER OF REASONS.

Change is inevitable in the life of an organisation. In todays business world, most of the organisations are facing a dynamic and changing business environment. They should either change or die, there is no third alternative. Organizations that learn and cope with change will thrive and flourish and others who fail to do so will be wiped out. The major forces which make the changes not only desirable but inevitable are technological, economic, political, social, legal, international and labour market environments. In very simple words, we can say that change means the alteration of status quo or making things different. The

term change refers to any alterations which occurs in the overall work environment of an organisation. When an organizational system is disturbed by some internal or external force, change frequently occurs. Change, as a process, is simply modification of the structure or process of a system. It may be good or bad, the concept is descriptive only. There are a number of factors both internal and external which affect organizational functioning. Any change in these factors necessitates changes in an organisation. The more important factors are as follows: External Forces Every organization exists in some context; no organization is an island in itself. Each must continually interact with other organizations and individuals- the consumers, suppliers, unions, shareholders, government and many more. Each organization has goals and responsibilities related to each other in the environment. The present day environment is dynamic and will continue to be dynamic. Changes in social, political, economic, technology, and legal environment force organizations to change themselves. Such changes may result in organizational changes like major functions production process, labour-management relations, nature of competitions, economic constraints, organizational methods etc. In order to survive in the changing environment, organization must change. How the change in various environmental, organizations, must change. How the

changes in various environmental factors necessitate change in the organization may be seen in following context:

Technology: When there is a change in technology in the organizational environment and other organizations adopt the new technology, the organizations under focus become less cost effective and its competitive position weakens. Therefore, it has to adopt new technology, its work structure is affected and a new equilibrium has to be established. Marketing conditions: Since every organization exports its outputs to the environment, an organization has to face competition in the market. There may be two types of forces which may affect the competitive position of an organization other organizations supplying the same products and, buyers who are not buying the product. Any changes in these forces may require suitable changes in the in the organization. For example, when Indian economy was liberalized, there were many foreign organizations that entered the Indian market. This forced many Indian organizations to realign themselves with the new situations. The result in that there have been many cases of divesting the business and concentrating on the core business, acquiring core business, and developing competitive competence to face competitive threats. Similarly, there may be changes in buyers in terms of their needs, liking disliking and income disposal for a product. These changes from the organizations to bring those products which meet buyers requirement.

Social changes: Social changes reflect in terms of peoples aspirations, the needs, and their ways of working. Social changes have taken place because of the several forces like level of education, urbanization, feeling of autonomy, and international impact due to new information sources. These social changes affect the behavior of people in the organization. There, it is required to make adjustment in its working so that it matches with people. Political and legal changes: Political and legal factors broadly define the activities which an oganisation can undertake and the methods which will be followed by it in accomplishing those activities. Any changes in these political and legal factors may affect the organization operation.

Internal Forces It is not only the changes in external factors, which may necessitate organizational changes; any change in organizations internal factors may also necessitate changes. Such a change is required because of two reasons: changes in managerial personnel and deficiency in existing organizational practices.

Changes in the managerial personnel: Besides environmental changes there is a change in managerial personnel. Old managers are replaced by new mangers, which necessitated because of retirement, promotion, transfer or dismissal. Each new manager brings his own ideas and way of working in the organization. The relationships, more in the organization. The

relationships, more particularly informal ones, changes because of changes in managerial personnel. Moreover, attitude of the personnel change even though there is no changes in them. The result in that an organization has to change accordingly. Deficiency in Existing organization: Sometimes, changes are necessary because of deficiency in the present organizational arrangement ad process. These deficiencies may be in the form of unmanageable span of management, large number of managerial levels, lack in co-ordination between various departments, obstacles in communication, multiplicity of committees, lack of uniformity in policy decisions, lack of cooperation between the line and staff, and so on. Beside these internal factors, there are two more internal factors that give rise to organizational changes. Nature of the work force: The nature of work force has changed over a passage of time. Different work values have been expressed by different generations. Workers who are in the age group of 50 plus value loyalty to their employers. Workers in their mid thirties to forties are loyal to themselves only. The youngest generation of workers is loyal to their career. The profile of the workforce is also changing fast. The new generation of workers has better educational; they place greater emphasis on human values and questions authority of managers. Their behavior has also become very complex and leading them towards organizational goals is a challenge for the managers. The employee turnover is also very high which again put strain on the management.

To avoid developing inertia: In many cases, organizational changes take place just to avoid developing inertia or inflexibility. Conscious manager take into account this view of organization that organization should be dynamic because any single method is not the best tool of management every time. Thus, changes are incorporated so that the personnel develop liking for change and there is no unnecessary resistance when major change in the organization are brought about.

Process-oriented: Organizations may need to reengineer processes to achieve optimum workflow and productivity. Process-oriented change is often related to an organization's production process or how the organization assembles products or delivers services. The adoption of robotics in a manufacturing plant or of laser-scanning checkout systems at supermarkets are examples of processoriented changes. The organization, I am familiar with is a -a large manufacturer/ marketer of safety products -the products are used as [personal protection safety] [ industrial safety]

-the products are distributed through the distributors as well as sold directly -the products are sold to various industries like mining/fireservices/defence/ as well as to various manufacturing companies. -the company employs about 235 people. -the company has the following functional departments *marketing *manufacturing *sales *finance/ administration *human resource *customer service *distribution *warehousing/ transportation *TQM

Recent changes have caused supply chain

management to gain importance

Changes in five factors are largely responsible for the increased IMPORTANCE. Information technology Visibility of best practices Consumer behavior Competition The importance of speed Technology. Although people have been talking about the idea of the integrated supply chain for a long time, it's only been in the last decade or so that information technology has made it possible to bring many concepts to life. However, information technology is merely the facilitator. Visibility of best practices. People are realizing the enormous amounts of money they've been leaving on the table in supply chain management because they have not been doing things right. So we're really talking about a need for greater understanding of supply chain economics and the visibility of successful firms. Some firms have completely changed the competitive dynamics of their industries because of the kind of competitive advantage they've been able to gain in the supply chain. Wal-Mart, of course, is the obvious one. The impact of their ability to get products to the customer and the impact of the economics have really changed the nature of competition. Not only did others start to emulate this model, but more visible models of different ways to do things in the supply chain have also emerged.

Consumer behavior. Today, customers are much more demanding than they have ever been in business history. They have the information at their fingertips, they know exactly what they want, and they know when and how they want it. Competition. The behavior of customers has changed the way we view competition. Companies are forced to do better because customers aren't going to stay around if they don't. Speed. During the last decade, it's all been about competing through speedbeing able to satisfy changing customer needs quickly, accurately, and efficiently. Supply Chain Management transformation is a strategic imperative for any manufacturer. This new perspective, one that will continue to gain importance, sees all suppliers and customers as part of one complex supply chain network and understands that transforming that supply chain into a synchronized chain is the primary goal. Supply chain management transformation provides fast access to relevant and accurate information. This timely supply chain information can pay off handsomely in lower costs, less inventory, improved throughput, shorter cycle times, and the highest levels of customer service. The very essence of supply chain management is effective information and material flow throughout a network of customers and suppliers. By using the Internet, companies simply have better and more far-reaching ways to speed up the information flow process and make it more effective. For many companies, it is now clear that the supply chain that best manages the flows of both information and material can

significantly differentiate itself from its competitors. As customers and suppliers band together in mutually beneficial partnerships, the need for better and better supply chain management processes and systems becomes more critical. Within the boardroom, improving supply chain management is getting lots of attention because forward-thinking management teams know it is the best strategy to increase and maintain market share while at the same time increasing profits. Experts now agree that in many industries, market share will be won and lost based on supply chain performance. Good supply chain practitioners know that information should be passed on only to those who need to know it, when they need to know it, and in the form they need to have it in. Changes in demand information, inventory positions, order fulfillment, supply management, and a whole host of other information exchange activities will transform how we sell products, supply products, and make and receive payments for goods and services. Tomorrows supply chain will link customers and suppliers together seamlessly throughout the world. The higher speed of information flow itself will in turn mandate faster flows of material, which only lean manufacturing operations can generate. Executive management is taking a good hard look at supply chains and finding a dysfunctional mix of processes, policies, systems, communications, performance measures, and organizational accountability . Some of these processes are clearly functionally divided silos; those barricaded power pockets of the internally focused corporate hierarchical maze that was the standard for decades. Other processes are hybrid and include everything from manual order entry to faxes and

phone communications and e-mail. Still other processes reveal the current trend toward full electronic communication and collaboration throughout the supply chain, including automated order entry, delivery tracking, and inventory planning systems. Whatever the exact mix, it is clear that most companies have a long way to go before they will have fully transformed their supply chain for the twenty-first century. The standard manufacturing supply chain shows the traditional flow of information and materials to and from the customers and the suppliers through the company. The processes within the supply chain typically have a strong correlation to the traditional silo organizational functions within a manufacturing company, including sales, engineering, manufacturing, distribution, and accounting. The business process flows across an organization, but communication, accountability, and reward systems flow vertically. This organizational and process contradiction often impedes supply chain effectiveness. Wheres the Payoff? Two very compelling reasons justify pursuing e-supply chain management. First, suppliers are now integrating, rather than just interfacing, with their customers. Theres no small difference between interfacing and integrating. Whereas interfacing indicates communication through some means or other, integrating indicates a more far-reaching connection through electronic business processes. Before, a company might send a monthly report to suppliers about what orders they expect to come in that month, now it is feasible to let suppliers check your order status at any and every point during the month, including in real time. In an integrated supply chain, customers and suppliers become mutually dependent by

collaborating through the shared goal of the streamlined, efficient demand and supply process. The objective is for everyone in the supply chain to increase market share through quick responses to customer needs. This can only happen when information, materials, and products flow smoothly and freely, in sync with demand. Its a formidable task but the effort can pay big dividends, including making (or breaking) marketplace leadership. The second reason to pursue the e-supply chain is related but different in emphasis. While the first reason emphasizes filling customers product needs, the second emphasizes improving the performance of manufacturing material flow and all the benefits those improvements can bring. Many companies now recognize that flow through the entire supply chain is the critical factor for success. In fact, in the future, customers will want to work only with suppliers who are consistently flexible and responsive in meeting their supply needs. The objectives for improved supply chain management are twofold, affecting both the cost and revenue sides of the business equation. The goals are: Gain a competitive advantage and increase market share by being more flexible, quicker, more dependable, and less costly. Achieve better cost efficiency through high-speed information and material flows with lower inventories and decreased overhead activity costs. Recognize the difficulty of change Most corporate change programs do a much better job of designing new operating processes and technology tools than of fostering appropriate attitudes and behaviors in the people who are essential to making the change program

work. People resist change, especially in companies with a history of "change-of- the-month" programs. People in any organization have trouble coping with the uncertainty of change, especially the real possibility that their skills will not fit the new environment. Implementing the seven principles of supply chain management will mean significant change for most companies. The best prescription for ensuring success and minimizing resistance is extensive, visible participation and communication by senior executives. This means championing the cause and removing the managerial obstacles that typically present the greatest barriers to success, while linking change with overall business strategy. Many progressive companies have realized that the traditionally fragmented responsibility for managing supply chain activities will no longer do. Some have even elevated supply chain management to a strategic position and established a senior executive position such as vice president-supply chain (or the equivalent) reporting directly to the COO or CEO. This role ignores traditional product, functional, and geographic boundaries that can interfere with delivering to customers what they want, when and where they want it. The executive recruited for this role must have some very special attributesthe breadth of vision needed to understand and manage activities from receipt of order through delivery; the flexibility required to experiment and make midcourse corrections, coupled with the patience demanded by an inherently long-term effort; the superior communication and leadership skills essential to winning and sustaining commitment to the effort at every level of the

organization, including the translation of intellectual commitment into financial commitment.

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BEFORE CHANGE IMPLEMENTATION scenario planning or scenario thinking is done 1. Decide on the key question to be answered by the analysis. By doing this, it is possible to assess whether scenario planning is preferred over the other methods. If the question is based on small changes or a very small number of elements, other more formalized methods may be more useful. 2. Set the time and scope of the analysis. Take into consideration how quickly changes have happened in the past, and try to assess to what degree it is possible to predict common trends in demographics, product life cycles. A usual timeframe can be five to 10 years. 3. Identify major stakeholders. Decide who will be affected and have an interest in the possible outcomes. Identify their current interests, whether and why these interests have changed over time in the past. 4. Map basic trends and driving forces. This includes industry, economic, political, technological, legal, and societal trends. Assess to what degree these trends will affect your research question. Describe each trend, how and why it will affect the organisation. In this step of the process, brainstorming is commonly used, where all trends that can be thought of are presented before they are

assessed, to capture possible group thinking and tunnel vision. 5. Find key uncertainties. Map the driving forces on two axes, assessing each force on an uncertain/(relatively) predictable and important/unimportant scale. All driving forces that are considered unimportant are discarded. Important driving forces that are relatively predictable (ex. demographics) can be included in any scenario, so the scenarios should not be based on these. This leaves you with a number of important and unpredictable driving forces. At this point, it is also useful to assess whether any linkages between driving forces exist, and rule out any "impossible" scenarios (ex. full employment and zero inflation). 6. Check for the possibility to group the linked forces and if possible, reduce the forces to the two most important. (To allow the scenarios to be presented in a neat xy-diagram) 7. Identify the extremes of the possible outcomes of the two driving forces and check the dimensions for consistency and plausibility. Three key points should be assessed: 1. Time frame: are the trends compatible within the time frame in question? 2. Internal consistency: do the forces describe uncertainties that can construct probable scenarios. 3. Vs the stakeholders: are any stakeholders currently in disequilibrium compared to their preferred situation, and will this evolve the scenario? Is it possible to create probable scenarios when considering the stakeholders? This is most important when creating macro-scenarios where governments, large organisations et al. will try to influence the outcome.

8. Define the scenarios, plotting them on a grid if possible. Usually, two to four scenarios are constructed. The current situation does not need to be in the middle of the diagram (inflation may already be low), and possible scenarios may keep one (or more) of the forces relatively constant, especially if using three or more driving forces. One approach can be to create all positive elements into one scenario and all negative elements (relative to the current situation) in another scenario, then refining these. In the end, try to avoid pure best-case and worst-case scenarios. 9. Write out the scenarios. Narrate what has happened and what the reasons can be for the proposed situation. Try to include good reasons why the changes have occurred as this helps the further analysis. Finally, give each scenario a descriptive (and catchy) name to ease later reference. 10. Assess the scenarios. Are they relevant for the goal? Are they internally consistent? Are they archetypical? Do they represent relatively stable outcome situations? 11. Identify research needs. Based on the scenarios, assess where more information is needed. Where needed, obtain more information on the motivations of stakeholders, possible innovations that may occur in the industry and so on. 12. Develop quantitative methods. If possible, develop models to help quantify consequences of the various scenarios, such as growth rate, cash flow etc. This step does of course require a significant amount of work compared to the others, and may be left out in back-of-the-envelopeanalyses. 13. Converge towards decision scenarios. Retrace the steps above in an iterative process until you reach scenarios

which address the fundamental issues facing the organization. Try to assess upsides and downsides of the possible scenarios.

Use of scenario planning by managers The basic concepts of the process are relatively simple. In terms of the overall approach to forecasting, they can be divided into three main groups of activities (which are, generally speaking, common to all long range forecasting processes): 1. Environmental analysis 2. Scenario planning 3. Corporate strategy The first of these groups quite simply comprises the normal environmental analysis. This is almost exactly the same as that which should be undertaken as the first stage of any serious long-range planning. However, the quality of this analysis is especially important in the context of scenario planning. The central part represents the specific techniques - covered here - which differentiate the scenario forecasting process from the others in long-range planning. The final group represents all the subsequent processes which go towards producing the corporate strategy and plans. Again, the requirements are slightly different but in general they follow all the rules of sound long-range planning.

Process The part of the overall process which is radically different from most other forms of long-range planning is the central section, the actual production of the scenarios. Even this, though, is relatively simple, at its most basic level. As derived from the approach most commonly used by Shell, it follows six steps: 1. Decide drivers for change/assumptions 2. Bring drivers together into a viable framework 3. Produce 7-9 initial mini-scenarios 4. Reduce to 2-3 scenarios 5. Draft the scenarios 6. Identify the issues arising Step 1 - decide assumptions/drivers for change The first stage is to examine the results of environmental analysis to determine which are the most important factors that will decide the nature of the future environment within which the organisation operates. These factors are sometimes called 'variables' (because they will vary over the time being investigated, though the terminology may confuse scientists who use it in a more rigorous manner). Users tend to prefer the term 'drivers' (for change), since this terminology is not laden with quasi-scientific connotations and reinforces the participant's commitment to search for those forces which will act to change the future. Whatever the nomenclature, the main requirement is that these will be informed assumptions. This is partly a process of analysis, needed to recognise what these 'forces' might be. However, it is likely that some work on

this element will already have taken place during the preceding environmental analysis. By the time the formal scenario planning stage has been reached, the participants may have already decided - probably in their sub-conscious rather than formally - what the main forces are. In the ideal approach, the first stage should be to carefully decide the overall assumptions on which the scenarios will be based. Only then, as a second stage, should the various drivers be specifically defined. Participants, though, seem to have problems in separating these stages. Perhaps the most difficult aspect though, is freeing the participants from the preconceptions they take into the process with them. In particular, most participants will want to look at the medium term, five to ten years ahead rather than the required longer-term, ten or more years ahead. However, a time horizon of anything less than ten years often leads participants to extrapolate from present trends, rather than consider the alternatives which might face them. When, however, they are asked to consider timescales in excess of ten years they almost all seem to accept the logic of the scenario planning process, and no longer fall back on that of extrapolation. There is a similar problem with expanding participants horizons to include the whole external environment. Brainstorming In any case, the brainstorming which should then take place, to ensure that the list is complete, may unearth more variables and, in particular, the combination of factors may suggest yet others.

A very simple technique which is especially useful at this brainstorming - stage, and in general for handling scenario planning debates is derived from use in Shell where this type of approach is often used. An especially easy approach, it only requires a conference room with a bare wall and copious supplies of 3M Post-It Notes. The six to ten people ideally taking part in such face-to-face debates should be in a conference room environment which is isolated from outside interruptions. The only special requirement is that the conference room has at least one clear wall on which Post-It notes will stick. At the start of the meeting itself, any topics which have already been identified during the environmental analysis stage are written (preferably with a thick magic marker, so they can be read from a distance) on separate Post-It Notes. These Post-It Notes are then, at least in theory, randomly placed on the wall. In practice, even at this early stage the participants will want to cluster them in groups which seem to make sense. The only requirement (which is why Post-It Notes are ideal for this approach) is that there is no bar to taking them off again and moving them to a new cluster. A similar technique - using 5" by 3" index cards - has also been described (as the 'Snowball Technique'), by Backoff and Nutt, for grouping and evaluating ideas in general. As in any form of brainstorming, the initial ideas almost invariably stimulate others. Indeed, everyone should be encouraged to add their own Post-It Notes to those on the wall. However it differs from the 'rigorous' form described in 'creative thinking' texts, in that it is much slower paced and the ideas are discussed immediately. In practice, as many ideas may be

removed, as not being relevant, as are added. Even so, it follows many of the same rules as normal brainstorming and typically lasts the same length of time - say, an hour or so only. It is important that all the participants feel they 'own' the wall and are encouraged to move the notes around themselves. The result is a very powerful form of creative decision-making for groups, which is applicable to a wide range of situations (but is especially powerful in the context of scenario planning). It also offers a very good introduction for those who are coming to the scenario process for the first time. Since the workings are largely self-evident, participants very quickly come to understand exactly what is involved. Important and uncertain This step is, though, also one of selection - since only the most important factors will justify a place in the scenarios. The 80:20 Rule here means that, at the end of the process, management's attention must be focused on a limited number of most important issues. Experience has proved that offering a wider range of topics merely allows them to select those few which interest them, and not necessarily those which are most important to the organisation. In addition, as scenarios are a technique for presenting alternative futures, the factors to be included must be genuinely 'variable'. They should be subject to significant alternative outcomes. Factors whose outcome is predictable, but important, should be spelled out in the introduction to the scenarios (since they cannot be ignored). The Important Uncertainties Matrix, as

reported by Kees van der Heijden of Shell, is a useful check at this stage. At this point it is also worth pointing out that a great virtue of scenarios is that they can accommodate the input from any other form of forecasting. They may use figures, diagrams or words in any combination. No other form of forecasting offers this flexibility. Step 2 - bring drivers together into a viable framework The next step is to link these drivers together to provide a meaningful framework. This may be obvious, where some of the factors are clearly related to each other in one way or another. For instance, a technological factor may lead to market changes, but may be constrained by legislative factors. On the other hand, some of the 'links' (or at least the 'groupings') may need to be artificial at this stage. At a later stage more meaningful links may be found, or the factors may then be rejected from the scenarios. In the most theoretical approaches to the subject, probabilities are attached to the event strings. This is difficult to achieve, however, and generally adds little - except complexity to the outcomes. This is probably the most (conceptually) difficult step. It is where managers' 'intuition' - their ability to make sense of complex patterns of 'soft' data which more rigorous analysis would be unable to handle - plays an important role. There are, however, a range of techniques which can help; and again the Post-It-Notes approach is especially useful:

Thus, the participants try to arrange the drivers, which have emerged from the first stage, into groups which seem to make sense to them. Initially there may be many small groups. The intention should, therefore, be to gradually merge these (often having to reform them from new combinations of drivers to make these bigger groups work). The aim of this stage is eventually to make 6 - 8 larger groupings; 'mini-scenarios'. Here the Post-It Notes may be moved dozens of times over the length - perhaps several hours or more - of each meeting. While this process is taking place the participants will probably want to add new topics - so more Post-It Notes are added to the wall. In the opposite direction, the unimportant ones are removed (possibly to be grouped, again as an 'audit trail' on another wall). More important, the 'certain' topics are also removed from the main area of debate - in this case they must be grouped in clearly labelled area of the main wall. As the clusters - the 'mini-scenarios' - emerge, the associated notes may be stuck to each other rather than individually to the wall; which makes it easier to move the clusters around (and is a considerable help during the final, demanding stage to reducing the scenarios to two or three). The great benefit of using Post-It Notes is that there is no bar to participants changing their minds. If they want to rearrange the groups - or simply to go back (iterate) to an earlier stage - then they strip them off and put them in their new position. Step 3 - produce initial mini-scenarios The outcome of the previous step is usually between seven and nine logical groupings of drivers. This is usually easy to achieve.

The 'natural' reason for this may be that it represents some form of limit as to what participants can visualise. Having placed the factors in these groups, the next action is to work out, very approximately at this stage, what is the connection between them. What does each group of factors represent? Step 4 - reduce to two or three scenarios The main action, at this next stage, is to reduce the seven to nine mini-scenarios/groupings detected at the previous stage to two or three larger scenarios. The challenge in practice seems to come down to finding just two or three 'containers' into which all the topics can be sensibly fitted. This usually requires a considerable amount of debate - but in the process it typically generates as much light as it does heat. Indeed, the demanding process of developing these basic scenario frameworks often, by itself, produces fundamental insights into what are the really important (perhaps life and death) issues affecting the organisation. During this extended debate - and even before it is summarised in the final reports - the participants come to understand, by their own involvement in the debate, what the most important drivers for change may be, and (perhaps even more important) what their peers think they are. Based on this intimate understanding, they are well prepared to cope with such changes - reacting almost instinctively - when they actually do happen; even without recourse to the formal reports which are eventually produced! There is no theoretical reason for reducing to just two or three scenarios, only a practical one. It has been found that the

managers who will be asked to use the final scenarios can only cope effectively with a maximum of three versions! Shell started, more than three decades ago, by building half a dozen or more scenarios - but found that the outcome was that their managers selected just one of these to concentrate on. As a result the planners reduced the number to three, which managers could handle easily but could no longer so easily justify the selection of only one! This is the number now recommended most frequently in most of the literature. Complementary scenarios As used by Shell, and as favoured by a number of the academics, two scenarios should be complementary; the reason being that this helps avoid managers 'choosing' just one, 'preferred', scenario - and lapsing once more into single-track forecasting (negating the benefits of using 'alternative' scenarios to allow for alternative, uncertain futures). This is, however, a potentially difficult concept to grasp, where managers are used to looking for opposites; a good and a bad scenario, say, or an optimistic one versus a pessimistic one - and indeed this is the approach (for small businesses) advocated by Foster. In the Shell approach, the two scenarios are required to be equally likely, and between them to cover all the 'event strings'/drivers. Ideally they should not be obvious opposites, which might once again bias their acceptance by users, so the choice of 'neutral' titles is important. For example, Shell's two scenarios at the beginning of the 1990s were titled 'Sustainable World' and 'Global Mercantilism'[xv]. In practice, we found that this requirement, much to our surprise, posed few problems for the great majority, 85%, of those in the survey; who easily produced

'balanced' scenarios. The remaining 15% mainly fell into the expected trap of 'good versus bad'. We have found that our own relatively complex (OBS) scenarios can also be made complementary to each other; without any great effort needed from the teams involved; and the resulting two scenarios are both developed further by all involved, without unnecessary focusing on one or the other. Testing Having grouped the factors into these two scenarios, the next step is to test them, again, for viability. Do they make sense to the participants? This may be in terms of logical analysis, but it may also be in terms of intuitive 'gut-feel'. Once more, intuition often may offer a useful - if academically less respectable vehicle for reacting to the complex and ill-defined issues typically involved. If the scenarios do not intuitively 'hang together', why not? The usual problem is that one or more of the assumptions turns out to be unrealistic in terms of how the participants see their world. If this is the case then you need to return to the first step - the whole scenario planning process is above all an iterative one (returning to its beginnings a number of times until the final outcome makes the best sense). Step 5 - write the scenarios The scenarios are then 'written up' in the most suitable form. The flexibility of this step often confuses participants, for they are used to forecasting processes which have a fixed format. The rule, though, is that you should produce the scenarios in the form most suitable for use by the managers who are going to base their strategy on them. Less obviously, the managers who

are going to implement this strategy should also be taken into account. They will also be exposed to the scenarios, and will need to believe in these. This is essentially a 'marketing' decision, since it will be very necessary to 'sell' the final results to the users. On the other hand, a not inconsiderable consideration may be to use the form the author also finds most comfortable. If the form is alien to him or her the chances are that the resulting scenarios will carry little conviction when it comes to the 'sale'. Most scenarios will, perhaps, be written in word form (almost as a series of alternative essays about the future); especially where they will almost inevitably be qualitative which is hardly surprising where managers, and their audience, will probably use this in their day to day communications. Some, though use an expanded series of lists and some enliven their reports by adding some fictional 'character' to the material - perhaps taking literally the idea that they are stories about the future - though they are still clearly intended to be factual. On the other hand, they may include numeric data and/or diagrams - as those of Shell do (and in the process gain by the acid test of more measurable 'predictions'). Step 6 - identify issues arising The final stage of the process is to examine these scenarios to determine what are the most critical outcomes; the 'branching points' relating to the 'issues' which will have the greatest impact (potentially generating 'crises') on the future of the organisation. The subsequent strategy will have to address these - since the normal approach to strategy deriving from scenarios is one which aims to minimise risk by being 'robust' (that is it will

safely cope with all the alternative outcomes of these 'life and death' issues) rather than aiming for performance (profit) maximisation by gambling on one outcome. Use of scenarios It is important to note that scenarios may be used in a number of ways: a) Containers for the drivers/event strings Most basically, they are a logical device, an artificial framework, for presenting the individual factors/topics (or coherent groups of these) so that these are made easily available for managers' use - as useful ideas about future developments in their own right - without reference to the rest of the scenario. It should be stressed that no factors should be dropped, or even given lower priority, as a result of producing the scenarios. In this context, which scenario contains which topic (driver), or issue about the future, is irrelevant. b) Tests for consistency At every stage it is necessary to iterate, to check that the contents are viable and make any necessary changes to ensure that they are; here the main test is to see if the scenarios seem to be internally consistent - if they are not then the writer must loop back to earlier stages to correct the problem. Though it has been mentioned previously, it is important to stress once again that scenario building is ideally an iterative process. It usually does not just happen in one meeting - though even one attempt is better than none - but takes place over a number of meetings as the participants gradually refine their ideas.

c) Positive perspectives Perhaps the main benefit deriving from scenarios, however, comes from the alternative 'flavours' of the future their different perspectives offer. It is a common experience, when the scenarios finally emerge, for the participants to be startled by the insight they offer - as to what the general shape of the future might be - at this stage it no longer is a theoretical exercise but becomes a genuine framework (or rather set of alternative frameworks) for dealing with that.

ORGANIZATION CHANGE is, A concerted, planned effort to increase organizational effectiveness and health through changes in the organization's dynamics. Typically, the concept of organizational change is in regard to organizationwide change, THE TRIGGERS include -a change in mission, -restructuring operations, -new technologies introduction, -introducing business re-engineering, -change due to changing environment impact -change in strategic direction etc etc ========================================= CHANGES IMPROVE ORGANIZATION. IN A NUMBER OF WAYS. -provides the right structure to the organization -puts the right talent at the right positions -helps the right people in the right position to make

the right decision. -provides the position with the right responsibility and the right authority. -provides the right span of control. -provides the right leadership. -helps to introduce technology, which can improve the business process. -change in technology , can unleash creativity and innovations. -helps to manage the external environment more effectively. -helps to manage the competition more effectively. -helps to manage the procurement / supply more effectively -helps to manage the supplier relations . -helps to provide better customer relationship. -improves the morale of the staff. -provides more security to the staff -helps to develop teamwork. -improves the knowledge / skill level of staff -improves the management of the diverse workforce. -helps the flow of communications in all directions. -provides better budgetory control of operation.

ALL THESE LEAD TO BETTER -PERFORMANCE -PRODUCTIVITY -COST SAVINGS -RESULTS [ SALES / PROFITS] -RETURN ON INVESTMENTS. ===========================================

There are two strategies, which we can combine, for moving forward; a) Reinforce the vision of the future. Do everything we can, to keep the vision of where we want to get to, crystal clear in our minds. Reduce ambiguity. Emphasize benefits. Create visual reminders of the goal. Identify clearly what must change and what can remain the same. Have you ever noticed how someone obsessed with a goal, ignores every obstacle put in their path? b) Minimize the pain of the transition. The pain of transition can become an insurmountable hurdle; anything we can do to reduce the pain, makes it more likely we'll stay the course. Create a support structure. Have a plan of action to reduce the chaos. Celebrate every little success. Reward effort, even when the results weren't perfect. ---------------------------------Example of a Planned, Systemic Change Process -- Action Research A typical planned, systemic (and systematic) organizational development process often follows an overall action research approach (as described below). There are many variations of the action research approach, including by combining its various phases and/or splitting

some into more phases. This section provides resources that are organized into one variation of the action research approach. Note that the more collaborative you are in working with members of the organization during the following process, the more likely the success of your overall change effort. Phase 1: Clarifying Expectations and Roles for Change Process This phase is sometimes called the "Contracting" and/or "Entry" phase. This phase is usually where the relationship between you (the initial change agent) and the organization starts, whether you are an external or internal consultant. Experts assert that this phase is one of the most if not the most - important phases in the organizational change process. Activities during this stage form the foundation for successful organizational change. The quality of how this phase is carried out usually is a strong indicator of how the project will go. Types of organization Defining Project "Success" Assessing organization's Readiness for Change Entry converstation between consultant and organization Here are some useful skills for the change agent to have at this point in the process. Interviewing Listening Non-Verbal Communications Questioning Building Trust -----------------------------------------------------------------------Phase 2: Joint Discovery to Identify Priorities for Change The more collaborative the change agent is in working with members of the client's organization, the more likely that the change effort will be successful. Your client might not have the resources to fully participate in all aspects of this discovery activity -- the more participation they can muster, the better off your project will be. Whether you are an external or internal change agent in this project, you

and your client will work together during this phase to understand more about the overall priority of the change effort and how you all can effectively address it. It might be a major problem in the organization or an exciting vision to achieve. Together, you will collect information, analyze it to identify findings and conclusions, and then make recommendations from that information. Sometimes the data-collection effort is very quick, for example, facilitating a large planning meeting. Other times, the effort is more extensive, for example, evaluating an entire organization and developing a complete plan for change. The nature of discovery also depends on the philosophy of the change agent and client. For example, subscribers to the philosophy of Appreciative Inquiry (referenced above) might conduct discovery, not by digging into the number and causes of problems in the organization, but by conducting interviews to disover the visions and wishes of people in the organization. Sometimes, people minimize the importance of - or altogether skip - this critical discovery phase, and start change management by articulating an ambitious and comprehensive vision for change. Many would argue that it is unethical to initiate a project for organizational change without fully examining (or discovering) the current situation in the client's organization. Focusing most of the change efforts on achieving a robust vision, without at least some careful discovery, often can be harmful to your client's organization because your project can end up dealing with symptoms of any current issues, rather than the root causes. Also, the project could end up pushing an exciting vision that, while initially inspiring and motivating to many, could be completely unrealistic to achieve -- especially if the organization already has many current, major issues to address. Therefore, when working to guide change in an organization that already is facing several significant issues, you are usually better off to start from where your client is at -- that usually means conducting an effective discovery to identify priorities for change. -------------------------------------------------------------------

======================

WHY PEOPLE RESIST CHANGE

It used to be an accepted fact that everyone resists change. We now know that it is not true. There are many reasons why a person resents (negative attitude) and/or resists (active opposition to) a particular change. Likewise, there are many reasons why a person accepts (neutral attitude) and/or welcomes (positive attitude) a particular change.

Why People Resent or Resist Change

There are many reasons why employees of shapes may react negatively to change.

all sizes/

Personal Loss. People are afraid they will lose something. They might be right or they might be wrong in their fear. Some of the things they might lose are as follows:

Security. They might lose their jobs through a reduction in force or elimination of their jobs. Automation and a decline in sales often bring about this feeling.

Money. They might lose money through a reduction in salary, pay, benefits, or overtime. Or, expenses such as travel may be increased because of a move to another location that is farther from their home.

Pride and satisfaction. They might end up with jobs that no longer require their abilities and skills.

Friends and important contact. They might be moved to another location where they will no longer have contact with friends and important people. This loss of visibility and daily contacts is very serious for people who are ambitious as well as those with a strong need for love and acceptance.

Freedom.They might be put on a job under a boss who no longer gives them freedom to do it "their way." Closer supervision that provides less opportunity for decision making is a dramatic loss to some people.

Responsibility.Their jobs might be reduced to menial tasks without responsibility. This may occur when a new boss takes over or through changes in methods or equipment.

Authority. They might lose their position of power and authority over people. This frequently happens when re-organization takes place or when a new boss decides to usurp some of the authority that an individual had.

Good working conditions. They might be moved from a large private office to a small one or to a desk in a work area with only a partition between people.

Status.Their job title, responsibility, or authority might be reduced from an important one to a lesser one with loss of status and recognition from others. This also happens when another layer of management is inserted between a subordinate and manager.

No Need.

The typical reaction is, "What's the matter with the way things are now?" Or, "I don't see any reason why we should change."

More Harm Than Good.

This is even stronger than the previously mentioned "No Need". People really feel it is a mistake - that it will cause more problems that it is worth. Sometimes this reaction is justified. It is particularly common when people at the "bottom" of an organization feel that top management makes changes without knowing what is going on "down on the line."

Lack of Respect.

When people have a lack of respect and/or negative attitude toward the person responsible for making the change, there is a strong tendency to resent and even resist it. Their feelings do not allow them to look at the change objectively.

Objectionable Manner.

Sometimes change is ordered in such a way that the people resent and/or resist because they do not like being told what to do.

Negative Attitude.

People with a negative attitude toward the organization, the job and/or the boss are very apt to resent or resist change no matter what it is.

No Input.

One of the most significant reasons is the fact that the people who felt they should have been asked were not asked for their ideas concerning the change.

Personal Criticism.

Whether or not the change is actually criticizing the things that were previously done or the way in which they were done, people may look upon the change as a personal criticism. Creates Burdens. Some changes add more work and with it confusion, mistakes and other negative results.

Requires Effort.

The change will obviously require more effort. Much of the effort accomplishes very little, if anything. Whenever changes require more time and effort, people are apt to resent and even resist them, particularly if no rewards accompany the extra effort.

Bad Timing.

The timing of a change is very important to its acceptance. If it comes at a time when people are already having problems, the change is usually resented and probably resisted by those who are supposed to implement it.

Challenge to Authority.

Some people are testing their power and influence by simply refusing to do it.

Secondhand Information.

Some people are very sensitive about the way they learned of the change. If they found out about if from a secondhand source, they might resist it until they hear it "from the horses mouth."

What is the Real Reason for Resentment or Resistance?

Managers often have difficulty in determining the real reason why subordinates resent and/or resist a change. They may feel that the subordinates are just being

stubborn or that they are afraid they will lose something. The real reason may be entirely different. ----------------------------------------------------------------IN MANAGING ORGANIZATIONAL CHANGE

ONE SET OF PEOPLE ACCEPT CHANGE--WHY?

WHY PEOPLE ACCEPT OR WELCOME CHANGE

While some people resent and/or resist change, others accept and welcome it. The degree to which these opposites occur depends on many factors. Some of the reasons for positive reaction to change are described in this section.

Personal Gain.

When changes are made, some people may gain such things as the following:

Security.

They feel more secure in their job because of the change. Perhaps more of their skills will be used.

Money.

They may get a salary increase, more benefits, an incentive or profit-sharing programme, or more overtime.

Authority

They may be promoted to a position of greater authority, or they may get a new boss who gives them more authority than they had under the previous boss.

StatuslPrestige.

They may get a new title, a new office, or a new responsibility, their boss may have assigned more responsibility, or they may have a new boss who assigns more responsibility than the previous one did.

Better working conditions.

They may get a new working schedule, new equipment, or other conditions that make the job easier or more enjoyable.

Self-satisfaction.

They may get new satisfaction or feeling of achievement because of the change. Perhaps the new job gives them more of a change to use their abilities, or the boss may eliminate some of the obstacles that had prevented them from doing their best.

Better personal contacts.

They might be located in a place where they will have closer contact with influential people. Their visibility is very important to some people.

Less time and effort.

The change may make their job easier and require less time and effort.

Provides a New Challenge.

While some people look at a change negatively because it requires effort and perhaps risk, others will be eager for it because it provides a new challenge.

Likes/Respects the Source.

If people have a positive attitude toward the person or the department they represent, they will probably accept and even welcome the change.

Likes Manner.

People who are asked to do things instead of told to do them may react very positively. Someone described the most important words in the English language as follows:

Five most important words:"I am proud of you." Four most important words:"What is your opinion?" Three most important words:"If you please." Two most important words:"Thank you." One most important word:"You (or possibly We)."

The tone may have much to do with resentment or acceptance.

Reduces Boredom.

Changes that are designed to reduce boredom will be welcomed by some.

Provides Input.

One of the most powerful approaches to get acceptance is to ask for input before the final decision is made.

Desires Change.

Some people will react to change by thinking or saying, "It's about time." In other words, they have been anxious for the change to occur.

Improves Future.

Some changes will open up new avenues for future success in the organization. People will be provided with opportunities to show what they can do. Future possibilities include promotion, more money, more visibility, more recognition and more selfsatisfaction.

Right Time.

Some changes come at just the right time. If more money is needed to pay current bills or to buy a luxury item like a video recorder or a boat or to take a vacation, the change will be welcomed. =============================== IN MANAGING THE ORGANIZATIONAL CHANGE, WE NEED TO MANAGE BOTH THE TYPES OF PEOPLE GROUP. ADOPT THE FOLLOWING MODEL FOR CHANGE

1.Explain the reason for change with facts. If there are risks , acknowledge them but explain why it is worth taking the risks.

2.Objectively explain the benefits that could result from the change.

3.Get ready and sell the benefits at all times.

4.Anticipate objections.

5.Listen in depth.

6.Seek questions and clarifications / answer them.

7.Invite participation and ask for suggestions .

8.Avoid surprise because this stirs up unreasoning opposition.

9.Acknowledge the rough spots and show you plan to manage them.

10.Establish a timetable.

11.Set standards and explain your expectations.

12.Contact the informal leaders and use their resources.

13. Acknowledge the staff cooperation / support.

14.Provide feedback on the progress.

15.Reinforce the positive . 16.Keep the two way communication open.

====================================================

HOW DO YOU INITIATE CHANGE

Often it is easier to carry out a job if there is a specific plan to follow. When major changes are to be installed, careful planning and preparation are necessary. Strengthening the forces promoting the change and weakening resistance to it are the main tasks.

CREATE A CLIMATE FOR CHANGE

How people react to proposed changes is greatly influenced by the kind of climate for change that the manager/supervisor has created in the department.

HOW IS THE RIGHT KIND OF CLIMATE CREATED?

Supervisors and managers who have enthusiasm for progress and change build a healthy climate.

Creating the right climate is more than just passing on changes. It involves:

Encouraging employees to seek ways of improving their jobs.

Seeking suggestions and ideas from employees.

This requires the manager/supervisor to listen and seriously consider suggestions. It is easy to see that there is a great deal of ego involvement in coming forth with an idea for improvement. Change can become an exciting and dynamic way of life. The manager/supervisor determines the climate in which they initiate change.

GET READY TO SELL

Much of the difficulty in getting co-operation stems from the employees lack of understanding of how the change will affect them. With a little effort, managers/supervisors can find most of the answers to employees' questions before they are even asked. Answers to these questions would be useful.

What is the reason for the change? Whom will it benefit and how? Will it inconvenience anyone, if so, for how long? Will training or re-training be necessary? When does it go into effect?

Armed with the answers to these questions a manager/supervisor can head off many objections and can develop a plan to present the change.

IDENTIFY THE SOURCES OF HELP

Why should you, the managers and supervisors, shoulder the burden alone? Staff can frequently be a great help in preparing to sell a change by explaining technical aspects and demonstrating new techniques.

One of the most overlooked sources of help in introducing changes are the informal leaders in the work group. With their help the job becomes easier. Giving recognition to informal leaders puts them in a co-operative frame of mind.

Since union stewards are often informal leaders, their co-operation ought to be solicited. The backing of union stewards makes the job easier.

ANTICIPATE OBJECTIONS

Change that upsets routines, requires new knowledge or skills, or inconveniences people are bound to meet with some objections or resistance. Looking at a change from the employees point of view will usually be enough to help determine what their objections are likely to be. Knowing the objections, we can, with a little creative thought, turn these objections into advantages.

Showing the staff with reason or logic will not do the job. Managers/supervisors have to convince people that the change is really best for them and that will not happen until their objections are dealt with seriously.

SELL BENEFITS

Everyone is concerned with, "What's in it for me?"

"Will the change mean more satisfying work. greater security. opportunity to show what I can do. more responsibility. more pay. less fatigue. less confusion. greater independence?"

The benefits used to motivate people to co-operate should be put on as personal a level as possible. It would be dishonest, however, not to recognise any disadvantages that a change may bring. These can usually be countered with long range benefits.

One of the techniques that is helpful in identifying the characteristics and values of the proposed changed condition is a "Word Picture". The picture makes the new condition desirable in the minds of the staff.

A)One of the ways this concept of "word picture" is used, is the physical change in office layout or new equipment or any other physical changes.

B)To picture or model a change in policy, organization or operation is more difficult than the physical change. The principle is the same. The picture can help in communicating the desirability of the change and in fine tuning the change because it makes it possible to discuss how things will operate. It may take the form of a flow chart, an organization chart or a description of relationships.

To use this approach for deciding whether to initiate a change, you can take the following steps:

Describe as clearly as possible the present situation.

Describe as clearly as possible the desired situation.

Analyse what specific changes will have to take place in the key factors involved to produce the desired situation. Look at such key factors as bosses, employees, equipment, physical environment, policies and procedures, work methods, materials and time. Identify the relevant factors.

Assess the strengths of the forces promoting the desired situation and of those resisting it.

Determine what action to take. Choices are:

A)Do nothing, the resistant forces are stronger than the forces promoting change.

B)Act to strengthen the promoting forces and/or to weaken resistance, by concentrating one's efforts on the key factors.

LISTEN IN DEPTH

Employees have a right to be heard. If employees are treated with respect, they probably will respond in kind. They will feel better too, if they know their concerns have been considered.

FOLLOW-UP

After having conscientiously sold the benefits of a change, it is tremendously important that the managers/supervisors see that their promises have materialized. A sincere interest in how the change has affected the employee and a willingness to make adjustments, help build the climate in which future changes will be initiated.

===============
CHANGES AND COMMUNICATION
The following steps will help you to minimize resistance:

1.Explain why. Provide all the facts about the reason for changing. If there are risks, acknowledge them but explain why the risk is worth taking.

2.Objectively explain the benefits that could result from the change.

3.Seek questions/clarifications and answer them.

4.Invite participation and ask for suggestions because the people involved know the situation best.

5.Avoid surprise because this stirs unreasoning opposition more than any other factor. @ 6.Acknowledge the rough spots and explain how you plan to smooth the change.

7.Set standards and explain your expectations.

8.Contact the informal leaders and use their resources.

9.Acknowledge and reinforce the staff's co-operation and give them feedback on the progress.

10.Keep the two way communications open for suggestions and corrections. =================================================================== ===

PROCESS CHANGE IN THE ORGANIZATION Elements of the Supply Chain A simple supply chain is made up of several elements that are linked by the movement of products along it. The supply chain starts and ends with the customer. Customer: The customer starts the chain of events when they decide to purchase a product that has been offered for sale by a company. The customer contacts the sales department of the company, which enters the sales order for a specific quantity to be delivered on a specific date. If the product has to be manufactured, the sales order will include a requirement that needs to be fulfilled by the production facility. -CUSTOMER -returned goods -billing -complaints --------------------------------------- Planning: The requirement triggered by the customers sales order will be combined with other orders. The planning department will create a production plan to produce the products to fulfill the

customers orders. To manufacture the products the company will then have to purchase the raw materials needed. -DEMAND PLANNING -SALES REQUIREMENT -sales forecast -inventory forecast --------------------------------------- Purchasing: The purchasing department receives a list of raw materials and services required by the production department to complete the customers orders. The purchasing department sends purchase orders to selected suppliers to deliver the necessary raw materials to the manufacturing site on the required date. -SUPPLIERS -price -pricing -quotes -orders -payments -goods returned -------------------------------------------

 Inventory: The raw materials are received from the suppliers, checked for quality and accuracy and moved into the warehouse. The supplier will then send an invoice to the company for the items they delivered. The raw materials are stored until they are required by the production department. -raw material incoming -order received /sales -order serviced -order despatched ---------------------------------------

Production: Based on a production plan, the raw materials are moved inventory to the production area. The finished products ordered by the customer are manufactured using the raw materials purchased from suppliers. After the items have been completed and tested, they are stored back in the warehouse prior to delivery to the customer. -raw material purchase -production cost -purchase cost -----------------------------

Transportation: When the finished product arrives in the warehouse, the shipping department determines the most efficient method to ship the products so that they are delivered on or before the date specified by the customer. When the goods are received by the customer, the company will send an invoice for the delivered products -inwards transport cost -outwards transport cost -operation overheads

THE SUPPLY CHAIN MANAGEMENT SOLUTIONS CONTRIBUTE BY -IMPROVING MATERIAL FLOWS -REDUCE RAW MATERIAL INVENTORY LEVELS -REDUCING PURCHASING COST -REDUCE FREIGHT COST -REDUCE OBSOLETE STOCK LEVELS -IMPROVING WAREHOUSING OPERATIONS EFFICIENCY -OPTIMISE STOCK LEVELS -REDUCE LEAD TIME -REDUCE TOTAL INVENTORY LEVELS -REDUCE FINISHED STOCKS -IMPROVE DEMAND FORECASTING -IMPROVE MATERIAL RESOURCE PLANNING ===================================================== THE SUPPLY CHAIN AIMS TO MAXIMIZE THE COMPANY RESULTS BY

-IMPROVING CUSTOMER SERVICE -ADDS VALUE TO CUSTOMER SERVICE -TAILORING SERVICE TO CUSTOMER REQUIREMENTS -LEVERAGING OPPORTUNITIES T O BETTER RESULTS. ======================================================= HENCE THIS IS GOING TO HELP YOU IN DEVELOPING YOUR CLIENT RELATIONS THROUGH -better products. -better service -timely service. ##########################################################