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NAME: ROLL NUMBER: LEARNING CENTER: SEMESTER: SUBJECT NAME: MODULE NO.

: DATE OF SUBMISSION AT THE LEARNING CENTRE: FACULTY SIGNATURE:

NEELAM ASWAL 521131210 02882 4


th

Change Management set -2

10 dec 2012
th

Master of Business Administration- MBA Semester 4


MU0018 Change Management - 4 Credits
(Book ID: B1339)

Assignment Set- 2 Q1-What are the five disciplines associated with the organizational learning?
Ans There are mainly five disciplines associated with the organizational learning. They are: Systems thinking. Team learnig. Share dvision. Mental.modes Personal mery

Core Discipline

Systems Thinking

Team Learning

Shared Vision

Mental Methods

Personal Mastery

The five core disciplines in the organisation learning can be explained as follows: Systems thinking: This is an art which mainly focuses on relationship of many parts of the system. This helps to work with the system rather than against the system. It also helps to learn something about the systematic behaviours. This also helps you to find out some of the unique terminologies and tools that are applicable only in this field. Team learning: This happens when the people are working together in a group on something. The people can learn more when they are working in a team rather than individually since different people will have different ideas in the team. This can be improved by following different kind of conversations and an amount of honesty and mutual respect for others in the organisation. This can be very excellent when you are doing the things properly and you have the knowledge of specific tools. Shared vision: This will only happen when all the individuals in the organisation know the vision of the organisation and know what the company is doing. This needs the commitment of all the individuals to work towards achieving the goals. This will be excellent when one understands how the organisation is working overall and matching the personal goals with the organisational goals. Mental models: These associate with how the world works and these include the beliefs and

assumptions. This totally involves the decisions we make at every stage of life. The decisions we take in life to some activities include the behaviours of others. This discipline helps us to test the deep assumptions and beliefs. Personal mastery: This involves the name you have to make in the lifetime. This helps you to achieve your personal goals by making use of the personal mastery in an honest way. There need to be willingness from the heart to make efforts and take risks. Corporate culture: This influences the environment in which we work every day. This includes the factors like policies, beliefs, activities and rituals that define the personality of the organisation. The culture of the company can increase or decrease the capacity to learn, encourage the creativity and so on. This can be well maintained by carefully maintaining the behaviours with everyone in the organisation. Corporate social responsibility: This explains how the business world affects the society around it. This concentrates on the responsibilities beyond the industry. This involves the effects of the firm on the neighbourhoods, public sector, educational institutions and families which are interlinked in the society. The social responsibility of the corporate mainly focuses on these interconnections. Dialogue: This is the discipline which plays an important role in the communication. This provides the tools and techniques, which is difficult to follow at first and becomes easy as it is practiced. Leadership: This mainly focuses on the roles of managers and leaders for the success of the change process in the organisation. This involves the movement of an organisation leadership from the traditional to the more flexible, self organising leadership. Sustainability: This mainly focuses on the sustainability of an organisation in regard to the resources of the organisation. If we continuously use the resources there may be depletion of resources. So the sustainability helps us to manage the human needs with the natural cycle. Work/life balance: It mainly concentrates on how to balance both the work and non work life. This requires the proper decision to be taken to set the priorities both for the work and non work lives.

Q2. Describe the role of leaders

in managing change.
Ans. The leaders play an important role in the change management. The leaders at different levels in the organisation will have different roles to play. The leaders work towards achieving the goals in the organisation. Whenever the leaders are planning to manage change, it is necessary to follow few principles. They are: Different people react in different way for the changes: The opinion of different people varies in a different way. Some people like to follow the old system and they want things to be as it is, so they like to be at the stability end of the spectrum. Some other people encourage for the new upcoming change, so they like to be at the change end. Many problems come when the people find that their opinions do not match with the situations. In such a condition the individuals will be dissatisfied, experience stress, and dislike individuals at the other end. Stability..Change The above drawing shows the spectrum of change. The opinion of the people varies from person to person. There are some people who like to follow the old system and they will be at the stability side of the spectrum. There are some other people who will be encouraging the change process so that the people will place themselves at the change side of the spectrum. Everyone has fundamental needs that have to be met: The need vary depending on the people. There is some degree for each of the needs. The change programme has to meet the control, inclusion and openness needs of the individuals otherwise there is chance for negative reactions ranging from the resistance to the opposition. Will Schutz, a famous psychologist have identified three fundamental needs in people's reaction to change. They are: The need for control. The need for inclusion. The need for openness. Change often involves a loss, and people go through the "loss curve": The loss of curve explains the feelings of the individuals as the time proceeds in the change process.

The loss curve depends on the extent of loss in the chain management programme. If someone is promoted to higher position then the loss in the lower position is not a big issue, since some thing better has replaced the old one. But if someone is made with a purpose of getting a new job

then the losses will have a harmful effect. The common factors that can be found in all loss curves are: At the initial position, there can be no sinking of the change. For example, there are some people in the organisation who will be very confident that the changes will not occur at all. In such a situation, it is very difficult to start with the new process. Whenever there is a loss then the individual hits a deep low. The depth will be more if the loss is sudden or unexpected. Adjusting to the new situations takes a longer time. Expectations need to be managed realistically: Some of the enforced changes do not meet the expectations of the employees that time certainly they will be unhappy and the expectations have to be set at the realistic level. For example: Suppose that we are a contractor for any project and we expect to be paid in 14 days but the contract says 30 days then we need to discuss and make sure that we get what we are expecting. If this not happening then we must make sure that the expectations are managed by both contractor and buyer. Fears have to be dealt with: It is the tendency of human beings to go out of the window, whenever there are some significant changes. Some people fear the worst since their minds will not be very conscious to know the things better. There are many fears which an employee faces during a changing phase. Some of them are like: Loosing the job. Inability to survive in changed setup Not getting a new job. Future problems arising due to loss of job. The fears have to be addressed by leaders in an understanding way by making them understand that the redundant people can get the better job. Main roles of a leader in change According to Senge, Leadership occur at different locations in an organisation. Some leaders have the traditional hierarchical leadership they are more formal. Some local leaders have to transfer the vision into an action. Network leaders have the job of connecting different parts of an organisation that are involved in the change. Bate has given the list of roles of leaders according to his idea of five dimensions of cultural leadership. The five dimensions are: The aesthetic culture deals with the ideas about the change. This is the sensate, ideational and idealistic culture. This is the species culture. The political culture deals with the meaning of change and involves putting ideas into the words. This gives the ownership to that political idea of the community. The ethical culture deals with the standards in the change and involves the guiding of learning process. This involves some ethics that have to be followed in the organisation.

The action culture involves the translations from cultural meanings into the cultural practices. This involves the practices that are followed around in the environment. The formative culture deals with the structures those are in change. This involves the architecture of culture. This involves the structures around the change.
The role model leader provides the confidence to manage the change process and demonstrates some of the characters which play an important role in the change process. They are:

Wider context: The leader has the ability to deal the changes in wider way since it is not only limited to the organisation strategy but it is spread to the team, division and the organisation. Empathy: The leader has the ability to see others and understand and acknowledge others for

managing the change process. Communication or being straight: The leader communicates directly to the people about the present and future changes and keeps the people well informed. Leader communicates both the good and the bad news with the people. Leader will be honest in terms of the change and the consequences of the change on the individual as well as the team. Counselling: The leader counsels the individuals who are undergoing change and respects the individuals change by understanding their emotions. Challenging: The leader identifies the unacceptable attitudes and behaviours and suggests for the acceptable attitudes and behaviours and maintains the comfort among the individuals and groups. Involving: The leader encourages the individual and team to involve fully in the change process and make sure that the change is successful. Reframing: The leader has the ability to see the situation from different perspectives and encourages others to do in the same way. This helps to create solutions in order to put the situations in a coherent framework. Enable learning: The leader enables the people to learn new skills, gain knowledge and the behaviours. Reviewing: The leader ensure that the certain reviews are done on regular basis for the proper management process. Recognitions set a positive environment so it is necessary to give positive feedback for the individuals as well as the group when they achieve their objectives.

Q3-What are the skills and ability required for the role of change agent? Ans.
The change agents design and implement the changes to help the organisation to respond to the demands of the dynamic economy. According to [3]Sims the new economic environment gives tremendous demands to the change agents. Change agents play an important role to assist change implementation. They educate, guide, coach and facilitate the employees and management who are a part of change process. They play a helpful role for the organisation in bringing the change and in achieving the objectives of the change. According to Balogun and Hope Hailey the roles of the change agent include external facilitation, leadership and good entrustment. Hutton suggests that the role of the change agent is to support top management to bring about determined transformation of the organisation. According to Hutton the transformation process: Helps the employees to think different about the work. Change the norms of the organisation that includes the usual work practices. Change the organisations systems and procedures to improve and achieve the objectives of the change. According to Spence there are four fundamental and crucial roles of the change agent. They are: Observer The change agents have to observe the environment, processes, attitudes and behaviour of the employees with in the organisation before implementing the change process. The first and the most important task of the change agent is the observation. Diagnostician The judgement based opinions are ineffective. Therefore the change agent should analyse the information that they have gathered and should have the idea about the change process. Thus the diagnostic process should be based on sufficient information available. Strategist The change agent is a policy maker and a planner. The change agent should be strategist in taking many decisions. The action of the strategist is to identify the problem on addition to it the strategist should emphasis the fact that there are many ways of handling a particular problem. Stimulator

Spence suggests that it is good to stimulate others instead of taking actions alone and this makes the role of the change agent to achieve many objectives of the change process. The advantages are identified below: Encouraging the individuals to participate and that in turn helps the change agent. Avoiding the change agent from going wrong in any areas. Making the change agent to act as both advisor and assessor or evaluator. Increasing the confidence level of the employees. A change agent should: Be a good sensor of the business environment. Function vertically and horizontally. Have good leadership skills in all the levels. Be a manager as a catalyst. Perform with shorter time-frame perspective. Be a good balancer in work and personal life. Have a good knowledge of information. For an effective change agents need to be an expertise in the following area. They are: Strategy formulation. Human resource management. Marketing and sales. Negotiation or conflict resolution. The change agents are required to follow the steps to achieve successful management of change in an organisation. Freeze Change Providing Support to sustain in embedded change

Implementing Change

Managing Transition Incremental Changes for Improvement

Communicating Effectively Developing Awareness or Winning Confidence

Challenging the Status Quo


Stirring the environment of psychological discomfort

Developing Visionary Leadership Creaitng Shared Vision

Predicting and Managing Mobilising Commitment

Generally the most important contribution made by the change agent role is to maintain the organisations present performance and make the future performance effective that includes: Enabling the employees to work effectively to plan, implement and to experience change. Managing the future change and increase the employees ability. According to Dave Ulrich the successful change agents had the ability to: Diagnose a problem that is to understand the organisation and the business drivers and should recognise performance issues, analyse the results of impact on short and long term business. Build the relationships with a client that is to form partnerships with common responsibility for the outcome of the change since the faith is very essential as the risk is very high. For an effective change the client and the change agent should have a high level of trust on each other because of the high risk. For Example, the management consultant Ric Reichard uses an easy method to discuss the issues Trust = (perceived competence + relationship)/RISK. Understand and motivate the workforce and the idea of change should be expressed. Set a leadership agenda that is to define the ongoing role for leaders, such as reinforcement of necessary behaviours, this makes the hr employee to closely understand the history and competencies of the leadership team and have a firmness to insist on the achievement of the scheme. Solve the problem that is the change agent must recognise the issues and must be concerned about the employees involved in the issue and must resolve the problem effectively. Implement the plans to achieve change goals that is successful organisational change on the significant level is attributed to the right strategy and suitable change in organisation culture. Here culture change depends on supportive employee polices, systems and processes.

From the above competencies, the skills required for the effectiveness of change agent are to: Communicate effectively in all the directions. Know well about the organisation, business, products, services and work processes. Keep a business perspective in both macro and micro, that is to have a vision on how mangers manage. Plan effectively and possess project management skills. Managing resistance and risk. Managing conflict. It is noticeable that the above features are the combination of personal attributes and skill sets that is required for the change agent to be effective.

Q4-Describe managing change during turbulent times and setting clear expectations.

Ans

Due to an unhealthy economy, all of us are working in turbulent times and organisations are under deep pressure, and reacting with aggressive thriftiness measures such as reducing, restructuring, rescheduling, and merging with competitors or strategic alliances. They are also closing unprofitable facilities, moving managers to open work environment from private offices. Effective working is very important when few employees are present in an organisation, it is seen that in the current world only the strongest organisation survives for a longer period. During the turbulent times the leaders focus on managing a balance between cost cutting and supporting the employees to serve in a better way to the organisation. The enterprises that emerge from considerable organisational changes are stronger and more competitive and are more focused on the effectiveness of the employee this is done by increasing productivity through teamwork and collaboration, rising organisational innovation, enforcing responsibility at all levels, making the workplace to attract, inspire and to retain talent and to accommodate the needs of multigenerational workforce. Economic and world events brought unexpected changes inflation, productivity challenges, technology shifts, and global competition all hit the business world at about the same time and made the classical planning methods suddenly outdated. During this time many organisations followed Peter duckers suggestions that helped employees managing during turbulent times and managing the complex work. In the times of disorganised changes maintaining productivity is a fundamental necessity of managers, and it is done for four key resources they are capital, crucial physical assets, time, and knowledge. For example, Siemens organisation has successfully beaten their competition by significantly increasing their productivity of capital or resources. Another effective method of managing in turbulent times is strategic assignment of critical resources. The managers need to be smart about selecting areas of potential results and allocating resources consequently. In chaotic times, there is a natural tendency to use resources to solve current problems, but the top priority should be given to the areas of potential opportunities. Drucker suggested managers to avoid working on problems that were important in the past and that was not expected to be beneficial in the future. An exit strategy is essential to be developed so that resources are allocated to areas with the highest probability of future achievements and success for the organisation. For example, the organisation GE followed a critical activity called work out program and was successful. This activity was designed to eliminate work that did not meet the strategic needs of the organisation. This activity was suggested by Drucker in the past. Stimulating innovation during managing change is a critical managerial competence essential in turbulent times. The most challenging task for managers is to respond effectively to the task that cannot be planned in advance to the time. This circumstance is more complicated, when its function is in global business environment. The leaders or the managers should be prepared to lead this environment of multidimensional changes and organise their organisations to function effectively during the transformations of their organisational culture. Setting clear expectations

To manage the change in the organisation effectively setting clear expectation or goals are necessary with in the organisation. The organisation should provide clarity about the most critical elements of the change by explicitly bringing out the implications and expectations for the employees. Reducing uncertainty increases morale and decreases distracting emotions of the

employees. To Select and postpone the nonessential projects, and to recognise the importance of making symbolic changes and to increase or decrease the unrestricted responsibilities in order to accomplish the heavy lifting associated with major change. It is important to focus on employees to do the work that is required and it is essential for the organisation to be clear about the employees needs and to ensure that the needs of the employees are satisfied. The managers set their expectations and follow them. The managers or the leaders should: Demonstrate strong ethics. Ensure confidentiality in the organisation. Show empathy for the emotional and personal effects of change and be available and listen to the employees concerns. Ensure the communication of key event and activities, that is to provide details on who, what, when, and where as known. Programme regular updates for all team members in the organisation. Communicate the decisions and justify and to recognise that individual have various communication needs. Manage the change and undertake the obstacles to bring effective change in the organisation. Focus on delivering value in running and changing the business. Stick to fated timelines and processes and act according to the agreements.

Q5. What are the three dimensions of organisational structure?


Ans. According to Robins, organisational structure has three dimensions.

Dimensions of Organisational Structure

Formalisation

Centralisation

Complexity

a) Formalisation Formalisation refers to the degree to which the activities, policies, measures, instructions are carried out and how they are defined, mentioned, and standardised in an organisation. The degree of formalisation is higher when compared with the degree of division of labour, the degree of departmentalisation, the degree of span of control, and the level of delegation of authority. Some of the benefits of formalisation are as follows: Formalisation cuts-down the irregularity in the organisation as the activities are standardised. Formalisation increases coordination as the activities are distinct and specified which ultimately leads to an effective coordination between the managers and the employees. Formalisation reduces the operation cost of the organisation. Formalisation reduces conflicts and uncertainties as most of the activities are standardised. Though formalisation is beneficial, it is not away from criticisms. Some of its criticisms are as follows: As most of the activities are standardised, there is no scope for creativity and flexibility. It is difficult to change the rules that are followed in the organisation. If any new rules are formed and implemented, employees struggle a lot to cope up with it. Though formalisation has certain limitations, it is used in many organisations as it effects in smooth and effective running of organisations. Also, it builds good relationship and efficiency within the organisation. b) Centralisation Centralisation refers to the degree to which decision-making is given importance in the organisation. Centralisation is one among the fourteen principles stated by [2]Henry Fayol. His principle says Diminishing the role of subordinates in decision-making is centralisation and decentralisation is the opposite of centralisation. In centralisation, control and decision-making are made by the top level of management but they have less power. It is impractical to have absolute centralisation as it would deprive subordinates based on power, authority and duties. The concept of centralisation plays a major role in the survival of small organisations as they face competition in the market. Importance is given to decentralisation only when there is larger organisation as decision making has to be placed in the centre of the operating level. It is because of the complexity of industries in terms of size, interdependence of work flow, complex tasks and physical barriers within and among

groups. Decentralisation pushes down the authority and power of decision-making to the lower levels in the organisation. However, it is a systematic effort to hand over power and authority to the lowest levels. The concept of decentralisation can also be related to fundamental principles of democratic management as every individual gets justified admiration for their worth. c) Complexity Complexity is referred to the differences among jobs and divisions. Complexity highlights the degree of differentiation that exits inside the organisation. Complex organisational structure comes into force because of variety of jobs and divisions within the organisation. As it is very complex, the management of it becomes very difficult and boring. Complexity of the organisation also refers to the degree of management, communication and control within the organisation. Based on complexity of activities within the organisation, there are three types of differences. If the differentiation is higher, higher will be the complexity. Differentiation Based on Complexity

Horizontal Differentiation

Vertical Differentiation

Spatial Differentiation

Horizontal differentiation: It refers to the total number of dissimilar units at the same level in the organisation. Examples: Specialisation, departmentalisation. Vertical differentiation: It refers to total number of levels in the organisation. It reflects the depth of hierarchy in the organisation. The hierarchal increase will improve the complexity in the organisation. By this coordination and communication becomes difficult as they are he important factors of working. Spatial differentiation: It refers to a degree to which location of units and the personnels are distributed. This increases the complexity of organisations in multiple locations as coordination and interaction becomes difficult in the organisation. All these dimensions contribute a lot to efficiency, centralisation, specialisation, centralised authority of functional departments, and monitors span of control. Therefore, all these dimensions are vital and integral part of the organisation to run successfully and economically.

Q6. Change management plays an important role in any organisation, as the task of managing change is not an easy one. Justify.
Ans. The management of change from manager or project teams perspective is called Organisational change management. Here, the focus is on broad change management practices and skills that can help the organisation to understand, accept, and support the needed business change. The main focus is on change management plans, communication plans and training programs. The parties involved in this are project team members, human resources, and key business leaders that sponsor the change. For organisational change management, you have to build knowledge and abilities in the following areas: o Change management teams structure and roles. o Change implementation barriers. o Change management planning and strategies. o Employee resistance management. o Organisational change management methodologies. o Executive sponsorship building. o Communication plans, training, and educational programs creation. o Incentive and recognition programs. Organisational change management covers all the activities aimed at helping an organisation to successfully accept and adopt new technologies and new ways to serve its customers. Effective change management helps in transformation of strategy, processes, technology, and people to enhance performance and ensures continuous improvement in a constantly changing environment. A comprehensive and structured approach to organisational change management is important for the success of any project that can bring significant change. Significant organisational change occurs only when organisation changes its overall strategy for success, adds or removes a major section or practice, and/or wants to change the nature by which it operates. It also occurs when an organisation evolves through various life cycles. To understand organisational change and begin guiding successful change efforts, the change agent should have a broad understanding of the context of the change effort. This includes understanding the basic systems and structures in organisations, including their typical terms and roles. This requirement includes understanding of leadership and management of the organisations, as well. In the past few decades, number of tools has been explored to help change agents to effectively explore, understand and communicate, and guide the organisations. Tools from systems theory and systems thinking are a major breakthrough. Even if the change agent is not an expert in systems theory and thinking, a basic understanding can develop a new way of working. Types There are many types of organisational changes: Organisation-wide versus subsystem change: Usually, organisations undertake organisation-wide change to evolve into a different level in their life cycle. Examples for organisation- wide changes are major restructuring, collaboration, cultural change. Examples of subsystem change include addition or removal of a product or service, reorganisation of certain department, or implementation of a new process to deliver products or services.

Transformational versus incremental change: Transformational change is also referred to as quantum change. Examples of transformational change include changing an organisations structure and culture from the traditional top-down, hierarchical structure to a large amount of self-directing teams, Business Process Re-engineering. Examples of incremental change include continuous improvement as a quality management process or implementation of new computer system to increase efficiencies. Sometimes, organisations experience incremental change, but its leaders fail to recognise that change. Remedial versus developmental change: Change can be used as a remedy to the current situation. Examples for remedial changes are to improve the poor performance of a product or the entire organisation, reduce burnout in the workplace, and help the organisation to become more proactive and less reactive, or address large budget deficits. Change can be developmental i.e., it can be applied to a successful situation and make it more successful. Examples for developmental change are, expand the amount of customers served, or duplicate successful products or services. Unplanned versus planned change: Unplanned change occurs because of a major, sudden surprise to the organisation, which forces its members to respond in a highly reactive and disorganised fashion. Planned change occurs when leaders in the organisation recognise the need for a major change and proactively organise a plan to accomplish the change. Note that the planned change often does not occur in a highly organised fashion. Instead, it occurs in a chaotic and disorderly fashion than expected by participants.

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