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ASSIGNMENT

Course Title: Social Processes and behavioural issues

Q1) Briefly describe the importance of work ethics and values in the present day
scenario of industrial organizations. Illustrate with reference to an organization.
Briefly describe the Organization you are referring to.

Answer. Introduction: As business, industry, and education face challenges to each


produce workers and students who perform at optimum levels, all are faced with the
issue of the work ethic. Underlying questions concerning work ethics is the
development of an acceptable definition that is current with today environment, the
purpose of whether work ethics is a teachable characteristic, and the development of
suitable and practical pedagogy. Nearly all discussions with prominence of linking or
improving businesses and education capture work ethic somewhere in the discourse.

Ethics play the most important role in any industrial organization, and they are
the key to its success. We all hear of business ethics and standards anywhere and all
the time. Have you ever wondered what defines these ethics and standards? Every
company expects a paradigm pattern of behaviour from their employees on some
common grounds. They draw a line for behaviour, and the employee should not cross
that line for smooth functioning of the company. And this is particularly true in case
of HCL Info systems Limited. Let’s understand and overview the work ethics and
values of HCL Info systems Limited.

HLC Infosystems Limited: Company profile:-

HCL Infosystems is India’s premier information enabling company. Leveraging its


3 decades of expertise in total technology solutions, HCL Infosystems offers value-
added services in key areas such as system integration, networking consultancy and a
wide range of support services. HCL Infosystems is among the leading players in all
the segments comprising the domestic IT products, solutions and related services,
which include PCs, Servers, Imaging, Voice & video solutions, Networking Products,
TV and FM Broadcasting solutions, Communication solutions, System Integration,
ICT education & training, Digital lifestyle Solutions and Peripherals.

HCL has a direct sales, channel sales and retail sales network pan India.
Continuously meeting the ever increasing customer expectations and applications, its
focus on integrated enterprise solutions has strengthened the HCL Infosystems’
capabilities in supporting installation types ranging from single to large, multi-
location, multi-vendor & multi-platform spread across India. HCL Infosystems, today
has a direct support force of over 3000+ members, is operational at 360+ locations
across the country and is the largest such human resource of its kind in the IT business
in India. HCL Infosystems has pan India presence across metros and non-metros.
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Overview of HCL Infosystems Limited

The detailed information on HCL Ethics and Values:-


The key purpose of the Code of Conduct is to create an environment where all the
Board Members & Senior Management of the Company maintains an ethical standard
and compliance to the ethical standards that are laid down.

• Fair Dealing- The Senior Management & Board Members of the Company
shall deal with others (employee’s & staff) in a fair manner and ensure
“Respect for Individual”. Non-compliance will enforce disciplinary action to
the faulter.

• Proper Use of Company Assets- The Company assets should be used only
for the official and valid business purposes of the Company. The Board
Members & Senior Management of the Company is prohibited from using
Company assets, confidential or proprietary information or position for
personal gain.

• Compliance with Laws, Rules and Regulations- Any transaction


undertaken in the name of the Company that would violate the laws of the land
is prohibited. Particular attention is directed to the laws, rules and regulations
relating to discrimination, securities, and antitrust, civil rights, transactions
with foreign officials, safety and the environment. If any uncertainty arises as
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to whether a course of action is within the letter and spirit of the law, advice
should be obtained from the Managing Director of the Company.

• Discrimination and Harassment- The Company is committed to providing a


workplace free of discrimination and harassment based on race, color,
religion, age, gender, national origin, disability or any other biases. It would
be the endeavour of every Board Member and Senior Management of the
Company to see that the work place is free from such discrimination
and harassment. If any Officer or Associate is discriminated against, he/she
may lodge a complaint of discrimination or
harassment to the Managing Director of the Company.

• Political Contributions -Corporate funds, credit, property or services shall


not be used, directly or indirectly, to support any political party or candidate
for public office, or to support or oppose any ballot measure, without the prior
approval of the Board of Directors of the Company.

• Confidential Information - Confidential information be it technical,


operational or commercial should not be disclosed to anyone. Such
information is confidential and for exclusive use of the Company.

Conflicts of Interest

(a) General

Generally, a conflict exists when the personal interests or activities of a Board


Member or Senior Management of the Company may influence the exercise of his or
her independent judgment in the performance of one or more duties to the Company.
Even the appearance of a conflict of interest may be as damaging as an actual conflict
and should be avoided.

The Board Member & Senior Management of the Company should not enter into
any transaction or engage in any practice, directly or indirectly, that would tend
to influence him or her to act in any manner other than in the best interests of
the Company.

(b) Gifts and Other Benefits - No Board Member & Senior Management of the
Company or member of his or her immediate family, shall (directly or indirectly)
solicit, accept or retain any gift, entertainment, trip, discount, service, or other benefit
from any organization or person doing business or competing with the Company,
other than (i) modest gifts or entertainment as part of normal business courtesy
and hospitality that would not influence, and would not reasonably appear to be
capable of influencing, such person to act in any manner not in the best interest of the
Company or (ii) acceptance of a nominal benefit that has been disclosed to the
Company.

Accounting and Reporting


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All the Board Members and Officers in Senior Management of the Company are
expected to follow the Company’s Accounting Policies. All accounting records
should accurately reflect and describe corporate transactions. The recordation of such
data must not be falsified or altered in any way to conceal or distort assets, liabilities,
revenues, expenses or the nature of the activity.

Violation of the Code


The Company will take appropriate action for violation of the Code
We can say that Work ethics have been the backbone of success for HCL Infosystems
Limited from years. To develop great work ethics in the workplace is essential and
necessary for organizational success. Combining work ethics with professional skills
invites success to a celebration.

The benefits of maintaining work ethics and values in workplace as quoted by HCL
Board of Directors are:-

o Ethical Values promote teamwork and high productivity


o Ethics programs help manage values associated with quality management,
strategic planning and diversity management -- this benefit needs far more
attention.
o Work ethics and values promote strong public image of the company.
o Ethics programs help avoid criminal acts “of omission” and can lower fines.
o Workplace ethics enhance employee credibility, interpersonal relationship
between management and employees, increase sensitivity towards organization
mission and vision.

Conclusion: - when a company without fail displays that they have appropriate
workplace ethics and values and their employees also follow good work ethics, they
attract more business proposals. It shows stability and reliability for the outside world.
Also, ethical companies are least vulnerable to go through court cases or public
litigations. Therefore, it can be said that work ethics and values play an important in
business environment.
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Q2). What is Perception? Discuss the occurrence of commons errors in


Perception and how to overcome these errors. Give examples.

Answer. Meaning of Perception- Perception is the process by which organisms


interpret and organize sensation to produce a meaningful experience of the
world

Perception is our sensory experience of the world around us and involves both the
recognition of environmental stimuli and actions in response to these stimuli. Through
the perceptual process, we gain information about properties and elements of the
environment that are critical to our survival. Perception not only creates our
experience of the world around us; it allows us to act within our environment.

We perceive the things around us through our five senses i.e. Sight, Smell, Touch,
Sound and taste. However the basic nature of the perception is:-

 Perception is unique to each person as individuals perceive the things differently.


 No one can perceive the 100% things all the time.
 Perception develops our thinking and action process which differ from person to
person.

There are different factors affecting perception. They are as follows:-

1. Characteristics of the person:-


A) Attitude: - the attitude of the perceiver affects the perception process. Ex gender
bias attitude affect the selection of the candidate for particular position.

B) Moods: - Perceiving method is strongly affected by moods of the individual. If


you are in happy mood you perceive the things positively, then you are upset, you
start evaluating things negatively.

C) Cognitive structure: - Individual thinking pattern also affect the perception. For
example some people assess the overall personality of the other people while some
look for particular traits in assessment process.

D) Interest: - another factor play significant role in perceiving things and situations.
Example if you interested in artistic things then you perceive things in artistic manner
only.

E) Motives: - the social, personal and emotional motive all influences our perception
process and that is why we all perceive things differently.

2) Characteristics of the Target: Characteristics in the target that is being observed


can affect what is perceived. Physical appearance plays a big role in our perception of
others. Extremely fat or thin individuals are more likely to be noticed in a group than
ordinary looking individuals. Motions, sound, size and other attributes of a target
shape the way we see it.
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3) Characteristics of the situation: The situation in which the interaction between


the perceiver and the target takes place has an influence on the perceiver's impression
of the target.

* All these factors are directly related to our perception process. Below mentioned is
the perception pyramid model which describes how an individual perceived by others.

The individual thinking pattern, the language one use, the way one behaves and
handle things, relationships and situations affect how we are perceived by others. This
perception pyramid model also state the importance of individual thought process
which ultimately affect the individual behaviour and actions. In addition, the external
and internal influences of the various factors on the individuals and on others who
perceive us affect the perception process significantly.

Commons errors in Perception

HALO EFFECT / HORN EFFECT:


When we tend to judge a person on the basis of a single characteristic such as
intelligence, appearance etc we say a Halo or a Horn Effect is operating. If the
characteristic is a positive one it is a Halo effect and if it’s a negative one it’s a Horn
Effect. In this effect one trait forms a general impression and becomes the basis for
judgments about other traits. Often occurs to fill in missing information.

Example- Manish is very intellectual in his work domain i.e. engineering field and
due to his intelligence his manager think that he will able to lead the team effectively
(halo effect) which is not the case because he is introvert and wont able to influence
the team members effectively.

PROJECTIONS:
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The assignment of one personal attributes to other individuals is termed as


projections. Believing that others have same characteristics as us is error due to
projection.

Example- the Sales head of the organization was rarely made any mistakes and was
seen as a perfectionist by others. He demanded the same accuracy from his
subordinates and used to get irritated and annoyed if anyone committed any mistakes
in his team. This is a clear case of projection error.

CONTRAST EFFECTS:

The individual characteristics and performance is evaluated as compare to other


individuals. Here the perceiver’s perceptions of others influence the perceiver’s
perception of a target.

Example- the teacher evaluates the student’s performance on the basis of group
he belongs to and not to his/her individual skills set which affects the student
grades.

Selective Perception:

Selective perception describes how we categories and interpret sensory information in


a way that favours one category or interpretation over another. In other words
selective perception is a form of bias because we interpret information in a way that is
congruent with our existing values and beliefs.

Example: Manager frequently commits the mistake of selective perception in


evaluating the subordinate’s performance. If one individual is of friendly nature and
is very much socially viable then manager believe that he is one who is bringing
business to the company but the reason of high target achievement buy he team is two
dedicated introvert personality employees who applies latest business tactics to earn
business out of clients.

Stereotype:

A Stereotype is an overgeneralization applied to an entire group of people. The


portrayal of stereotypes can be seen in our culture’s humor, literature, and other forms
of media.

Example: When it comes to ethnic groups, people make quick judgments based
upon the dividing lines between groups of people like All Bengalis are non-
vegetarians.

These are the most common errors in perception which every one of us commits
in our daily life routine matters. But the question arise here is how to overcome these
errors for effective perception process based on facts and reality.
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Halo effect: How to overcome Halo effect: Although it is difficult to overcome halo
effect but one can avoid commit mistake of halo effect by assessing the overall factors
affecting our decision about the situation or a person based on present situation and
current information.

Projection: the error of projection can be controlled by gaining real and exact
knowledge of self concept and the individual differences.

Contrast effect: This is the most common mistake committed by people even parents
towards their children. It can be avoided by understanding the uniqueness of the
individuals. Assessment of the individual should be done on the basis of his own
capability and not to others capabilities.

Selective perception: Perception checking with other persons can help counter the
adverse impact of selective perception. One should postpone their impression
formation and should avoid taking hasty decisions.

Stereotype: information on various things, people and situation are stereotyped as


this information are widespread and may or may not be based on real facts and
information. So one should review the information based on factual data and assess
the factors affecting decision.

Conclusion: Perception is life! Life is truly 10% of what happens to you and 90% of
how you react to it. So much of our society thinks it's the opposite. You truly do
create your own reality by your perceptions. A perception can ruin our lives, and
allow opportunities to pass us by. Another can take us to incredible new possibilities.
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Q3) Explain the relevance of Behaviour modification in organizations and


briefly discuss the role of ethics in behaviour modification

Answer. Introduction: The complexity and high degree of interaction of the parts of
an organization in increasing and creating diversified environment. Perhaps the most
important argument for a system conception of organization is that the environment
within which organization exists is becoming increasing by unstable. With the rapid
growth of technology, the expansion of economic markets and rapid social and
political change, come constant pressures for organizations to change, adapt, and
grow to meet the challenges of the environment and thus the need for behaviour
modification is increasing at rapid pace.

Relevance of Behaviour Modification in organization:-


o According to reinforcement theory, desirable behaviours can be increased
by associating them with positive consequences, while undesirable
behaviours can be increased by associating them with punishments. In
organizational behaviour modification, a manager identifies desired and
undesired behaviours, measures the existing performance level of individual
staff members and identifies current consequences of behaviours. The
manager then develops a strategy to make highly-desirable behaviours more
rewarding for an employee.

o Behaviour modification is rooted on the idea that behaviour depends on its


consequences. So it is concerned with making employee behaviour productive
and supportive by manipulating their consequences. In other words, it is
shaping individual behaviour into new patterns that most benefit the
organization as well as individual.

o The method of behaviour modification at the corporate level lies in identifying


and addressing the practical problems that employees face on a daily basis;
once this is done, the next stage is to convince workers that the offered
solution meets their needs and answers their demands.

o Organizational change, no matter how brilliantly conceived by the


marketing gurus that the deadheads boardrooms hire, will never take place
unless employees are either committed to accepting the change, or else forced
to accept it.

o There are different techniques used in behaviour modification Behaviour


modification techniques in the business environment are concerned with
guiding, encouraging and manipulating an employee's behaviour to better
accommodate the business's main objective.

o Examples involving behaviour modification techniques within the business


environment include operant conditioning, the variable-ratio schedule, and the
Hawthorne effect, implementing ceremonies and setting goals to guide
behaviour.
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o Behaviour modification includes the use of basic learning techniques operant


conditioning, such as positive reinforcement, to alter human behaviour.
Positive reinforcement occurs when behaviour is followed by a pleasant
incentive or reward that increases the frequency of performing that particular
behaviour.

o A very specific kind of partial reinforcement schedule is the variable ratio


schedule, for which reinforcement occurs on an irregular, unpredictable basis.
This is a motivation factors for employees to do hard work as they think they
might get prizes in lucky draw and other games.

o The Hawthorne Effect refers to the way that workplace efficiency,


performance and productivity can often be improved by introducing and
measuring any change to working practice. It doesn't matter whether you
change from System A to System B or from System B to System A:
productivity could well go up!

o Example: if a person's insurance company tells him that his insurance rate will
drop if he receives no traffic violations for the coming year, then the insurance
company is attempting to modify his behavior by removing the undesirable
consequence of a high insurance premium as long as the person drives
within the law for the specified time
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Behavioural modification Model of an individual or group in the company

The role of ethics in behaviour modification

Behavior modification, designed to change behavior, is a social intervention.


While the ethical considerations of all types of social intervention would appear
similar, behavior modification is often used as the forum for discussing them. Such
frequent use creates the impression that the field is riddled with numerous,
unique ethical problems, which in turn contribute to an already questionable
image.

Behavior modifiers are currently confronted with ethical issues traditionally


faced by those with the power of behavior control. Arguments both in favour of and
opposed to the development of a code of ethics designed to regulate such power are
discussed. It is concluded that the development of a code of ethics is desirable, and
guidelines for so doing are presented. Finally, courses of action for behavior modifiers
are suggested in addition to the development of a code of ethics.
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 Behaviour modification has always been plagued by controversy. There are a


number of basic notions regarding the ethical use of behaviour modification.
 Clients should be living in the least restrictive setting and be provided a
therapeutic environment that is safe, fun and offers access to a variety of
activities.
 The aim of any behaviour procedure should be to benefit the client and protect
his welfare, not to improve staff convenience for personal gains.
 Clients should be treated by competent staff that are trained and supervised by
experienced professionals.
 Clients should be taught functional skills to replace maladaptive behaviours.
 Behaviour programs should be methodically evaluated for effectiveness.
 Behaviour programs that include punishers should be used only after other
reinforcement programs have been exhausted. When two programs are
deemed effective, the least aversive procedure should be used. Make certain
that the staffs do not define behaviours as maladaptive behaviours based on
personal values. While reducing target behaviours, closely observe for an
increase in other inappropriate behaviours.
 Use reasonable intervention procedures, for example, verbal aggression would
generally not require physical restraint.
 Organizing the therapeutic setting and carefully planning your approach can
increase opportunities for successful learning and decrease the chances of a
behavioural episode.
 Management and Morality provides a comprehensive and accessible
overview of the moral and ethical dimension to organizational and
individual behaviour, while adding an original, developmental perceptive

Conclusion: The emphasis in a behavior modification perspective (BMP) of learning


is on a set of intervention techniques designed to influence the behavior of
individuals. That is, focus is placed on how environmental events (stimuli,
reinforcements, and the like) can be modified to bring about changes in the way
people act.

Q4) Describe the growing importance of teams as an approach to work.


Briefly discuss how team can be built effectively. Illustrate with reference to an
organization where team played a crucial role in bringing success. Briefly
describe the organization you are referring to.

Answer. Introduction: The principle of working together with your team should
underpin how you operate. Managing people doesn't just mean acting as overseer,
to see that they get their work done satisfactorily. It means involving people
throughout the team in a creative role, to ensure that together you are all able
to succeed.

• Organizations have embraced teams and teamwork as an effective way of


doing business. The last 20 years has seen the replacement of 'supervisors'
by 'team leaders'. Companies have embraced these concepts because they
work. Employee motivation and morale improves dramatically when people
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feel valued and when their contributions make a difference. It is good to be


part of something that is worthwhile.
• Making teams more productive is a constant issue for most managers.
Productivity is, of course, the essence of what makes businesses competitive,
but it is particularly important in times of economic slowdown such as the
one we are currently experiencing.
• Individual strength and commitment of each member of a team is very
essential to continue as the member of the team. Each member at the same
time work for himself as well as for his/her colleague to success and grow
together. They share the problems and success, nobody blames on other if
there is any mistake or failure, but they try to find out the reason of failure,
and seek a solution for the problem collectively.

The importance of teamwork as an approach is defined as:-


i. Teamwork is vital as it makes the execution of the project only with utmost
quality and efficiency.
ii. Teamwork is so important as a major reason why we can even handle the
growth we are experiencing now.
iii. Staying competitive is the key factor achieved by teamwork.
iv. Teamwork is very important as the base where all of our new ideas come from.
v. No price is too high for investing in it as teamwork enhances productivity of the
company on larger scale.

Team building in this context is a prized skill that managers are willing to invest in. It
has become critical to find “team players” when selecting people for a job or business
project. An organization’s potential will end where the imagination of a sharp team
does. There is a lot more involved than simple complimentary skills when building an
elite team.

Following points should be considered while building the effective team:


A team needs a good leader- the team leader can emerged from within the group or
may be outsider depends on the expertise of the team leader and the project
requirement.

Team requires good team players- The most valuable single factor that contributes
towards high levels of excellence and quality in a team, stem from an individual team
member's ability to work with others, i.e. his or her levels of cooperation and
communication.

Use consistency to grow your team-In consistency, there are three components
to success: consistent habits, consistent location and consistent people. Consistent
habits are important for individual performance, and also important for team
performance.

Align tasks to skills & motivation- Combining the right skill sets with
motivation is paramount in ensuring that tasks are completed efficiently. If you allow
your team members to progress into the areas where they excel and are interested in,
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you will effectively keep them engaged and free yourself from the risk of having
disgruntled and frustrated team members.

Organizational Environment-conform to central ideas or ways of thinking. We


work hard at keeping our "team climate" frees, open, and supportive of each other.

Resolve possible conflicts arising within the team-There needs to be team building
techniques in place to eradicate conflicts in a team. A team must be coherent in order
to be successful. It is usually best when individual team members know that they
alone are not responsible for resolving conflicts involving themselves.

Let’s discuss the teamwork success in the completion of the project of


Reliance

Reliance Group
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's
largest private sector enterprise, with businesses in the energy and materials value
chain. Group's annual revenues are in excess of US$ 44 billion. The flagship
company, Reliance Industries Limited, is a Fortune Global 500 company and is the
largest private sector company in India.

Reliance Jamnagar Oil Refinery:

Teamwork across Nine Global Execution Centers

Background
When the first phase of the Reliance Jamnagar Oil Refinery was first completed in
1999 in Gujarat, India, it was one of the world's largest, most sophisticated oil
refineries. In 2004, Reliance decided to double its capacity by building a second
refinery, producing 1.2 million barrels of oil a day. Eight primary execution centers
were established around the world to build the new facility. Reliance Industries set the
goal to an extremely ambitious delivery timeframe of just three years from initial
concept to product out -whereas similar projects typically take eight to 10 years.

The Issue
The project was incredibly complex, both from a technical and a human perspective.
The owner’s management and the primary process design team were based in
London, England. The construction site was in Jamnagar, India, technology providers
were located mostly in the US, and equipment suppliers were located around the
world from Korea to Italy and India. Williams managed a team of 200 to 300 in
Toronto, along with vendors and technology providers across numerous time zones
and cultures, coordinating a mix of technical standards, operating methods and
processes.

The Toronto team had a clearly defined scope, but the coordination and teamwork
required to link seamlessly with all the other process units to get this project
completed in the timeframe required was enormous. The infrastructure, power and
water and drainage, along with the raw materials in and the finished products out,
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all had to be coordinated and aligned. Priorities, schedules and design details had
to be linked up seamlessly with the other execution units with minute detail.

On the human side, as if communications and relationships within any one group of
people aren’t hard enough, the project brought together Canadians, Americans,
Indians, British and Chinese - each of whom have different work cultures, schedules
and practices. There was a myriad of human relationships, communications and
interactions that had to be developed and facilitated to make this project successful.

The Solution
During the project’s kick off, key people from each of the execution teams assembled
in London for six to eight weeks. The assembled group developed many of the
procedures, standards and ground rules for working together and the teams got to
know each other and formulated execution plans, including division of responsibility
matrices and detailed plans, schedules and commitments. Trust and relationships had
been established. When a question came up, it could usually be resolved with a single
phone call or email note. Weekly status meetings were established for overall
reporting from each of the execution units, and also at the department level between
execution units to resolve technical details.

The Result
Reliance Industries was able to bring this enormous, complex, world class facility up
and running within 36 months of the project kick-off. Williams and the Toronto team,
which started initially with no experience with Reliance or work in India for that
matter, rose to the challenge and led all execution centers most of the way. Under
William’s leadership a disjointed group of engineers and designers who had not
worked together before, matured into a well-oiled team of professionals that delivered
outstanding results.

5. Briefly discuss how organizational culture can be developed and describe


the attributes of work culture and their relevance.
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Solution :

Organizational culture

Organizational culture can loosely be defined as the shared assumptions, beliefs, and "normal
behaviors" (norms) of a group. These are powerful influences on the way people live and act,
and they define what is "normal" and how to sanction those who are not "normal." To a large
degree, what we do is determined by our culture.

Organizational culture is similar to, say, regional culture. The same person in different
organizations (or parts of the same organization) would act in different ways.

Culture is very powerful. (One example is the cultural change effort at British Airways, which
transformed an unprofitable airline with a poor reputation into a paragon of politeness and
profit).

An example: Cultural change at Chrysler (1994)

Many companies have turned themselves around, converting imminent bankruptcy into
prosperity. Some did it through financial gimmickry, but the ones who have become stars did
it by changing their own culture.

Few remember that companies like British Air or Volvo once had a poor reputation. That's a
credit to their drastic changes in customer (and employee) satisfaction, quality, and profits.

The underlying causes of many companies' problems are not in the structure, CEO, or staff;
they are in the social structure and culture. Because people working in different cultures act
and perform differently, changing the culture can allow everyone to perform more effectively
and constructively. This applies to colleges and schools as much as it applies to businesses.

In the early 1990s, Chrysler had terrible customer service and press relations, with a history
of innovation but a present of outdated products. Its market share was falling, and its fixed
costs and losses were high. Bob Lutz, then the president, wanted Chrysler to become the
technology and quality leader in cars and trucks -- a clear, globally applicable vision. A
program of cultural change, Customer One, was built around it.

It is also worth noting that quite a bit of the change in culture came from AMC, a much
smaller company acquired from Renault. AMC executives and engineers brought the "do
more with less," cross-functional methods they had at the unfortunate smaller automaker.
These ideas and values were to play a major role in Chrysler's revival; two vehicles designed
largely by AMC people with AMC methods were the 1993 Dodge Ram and 1995 Dodge
Neon, both runaway successes (though the Neon would be handicapped by executive-ordered
"cost saving" moves).

The results were impressive: overhead was cut by $4.2 billion in under four years, the stock
price has quadrupled, and the company reversed its slide into bankruptcy and became
profitable. A completely new and competitive line of cars or trucks has appeared each year
since. New engines produce more fuel economy and power as new cars provide more
comfort, performance, and space. They did this with the same people, but working in different
ways.
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Involvement of People

When Chrysler was entering its final "golden age," in four years, 4,600 ideas were solicited
from suppliers; 60% were used, saving over $235 million. Customers were also called in
during "virtually every stage" of the development of new models, to provide suggestions
(rather than just ratings of what they liked). One designer was sent to photograph the interiors
of about 200 pickups, to see where cups, maps, etc. were being stored, so they could tailor the
interior of the new trucks to the needs of the drivers. Chrysler has also been listening to
customers who write to the company; the designers even respond to some letters by phone.

Rather than have a small number of people control new products, Jeep/Truck product
manager Jeff Trimmer said planners were "speaking out for customer wants and needs in the
initial stages...and working along with each of the various functional groups...The role
becomes more advisory." Everyone who would be involved participated to "harness the best
ideas and creativity."

Product teams followed vehicles through their development to identify systems and process
issues. "Today, we feel we have a lot more facts, and more of a groundswell of information
that comes from groups of people who know exactly what we're trying to do," reported
Robert Johnson of Dodge Trucks.

Agreeing on Objectives

One change which helps to keep projects pure is setting down objectives clearly, at the
beginning. Core objectives were agreed on at the beginning by all parties; because
"Everybody agrees up front and we stick to the plan," (Bernard Robertson, Jeep/Truck team),
there were no last-minute changes in focus, which can result in expensive disasters (such as
the Corvair, Vega, and Fiero). Because everyone was involved in setting goals, they took
responsibility for living up to them.

Learning

Changes in the way cars were made began with help from AMC, which had operated with a
far smaller staff than most automakers. Bob Lutz and former AMC engineering chief Francois
Castaing reorganized their departments into AMC-style teams.

Pilot vehicles in the new Ram program - which would triple Chrysler's market share despite a
price premium - were ready 13 months ahead of time. The number of improvements made
each year increased dramatically each year as learning spread.

Emphasis of Quality

Most people like building a quality product. It's natural to want one's labors to produce
something of quality and beauty. That might be one reason why workers tend to support
quality efforts, if they see them as being sincere.

Chrysler's steps to improve quality started with calling in customers, suppliers, mechanics,
and assembly line workers early in the design process. They continued by surveying all
customers and basing dealer incentives on quality and support. The dealership rating process
was improved at various points. Complaints were followed through, and negative surveys
were returned to dealers for resolution (however, many dealers do not follow through on this
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valuable feedback). In the end, the Five Star process was implemented because other dealer
quality efforts had failed; cultural change is very challenging when you're dealing with a large
number of geographically diversed, independently owned companies.

The best examples of the quality emphasis are probably the Chrysler PT Cruiser and Jeep
Liberty; both have consistently appeared at or near the top of the quality charts, beating many
Japanese competitors.

Pitfalls

Cultural change is neither easy nor foolproof. It can take time - at least one year, more likely
between three and six years - and it takes effort and vigilance. A great deal of patience and
long-term support is needed.

Communication may be key, as small successes are used to support larger efforts. Sometimes,
it is necessary to start changing small parts of an organization first, later expanding efforts.
Chrysler did this by starting with their engineering teams and moving on to other areas.

The proponents of change must carefully model the behavior they want to see in others. If
they do not send a consistent message and keep that message clear and dominant over time,
cultural change may be seen as just another fad.

There is a great deal of literature on cultural change, but successful efforts generally involve
the services of an experienced consultant to provide some guidance and unbiased feedback.
As the Chrysler example shows, vigilance by the senior leaders and process owners is also
required over the long term.

Applying Cultural Changes To Your Organization

Cultural changes take time, and the process may be bumpy. Some people get used to it
quickly, and other people take more time. Cultural changes may take a long time in a larger
business. At Chrysler, they started with engineering, moved on to customer service, down to
the dealers, and so on. This made for some strange experiences for those who dealt with the
company during the transitional times. Certainly, many in the press wondered why Chrysler,
in the midst of heavy losses, was spending billions on new buildings and research. Their
answer did not come until years later, when Chrysler regained its billions and a few extra as
well.

While simple cost-cutting may show faster results, the profits don't stay for long. The cost-
cutting programs of Roger Smith and Richard Stempel resulted in the biggest losses in GM's
history, while the cultural change programs of Chrysler stopped the company's losses and
increased its market share for the first time in years. Chrysler's own cost-cutting after the
takeover resulted in problems getting new products developed and produced, and do not
appear to have helped profits, since sales also fell. You can't make a tree grow larger by
cutting the roots.

Cultural changes must often be spearheaded by one or two people with strong ideas. This may
be the head of the business, a consultant, or a designated executive or team. The best results
seem to be achieved when there is a firm commitment from the top, which is communicated
directly to each and every person in the business.
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The accessibility of top people is a powerful incentive for workers to feel that they are part of
the company. Often, if workers know they can walk into the president's or owner's office and
be greeted with their attention and respect, they will work much harder to make that vision a
reality. This one step may help to save a great deal of money, as workers may feel more free
to bring in suggestions, and the executive may be more likely to try it out...sometimes with
quite surprising results. (3M's successful Scotch tape and Post-It notes were the result of
worker suggestions).

The power of cultural change is strong -- strong enough to turn an aging dinosaur into a state-
of-the-art profit-maker. It may do wonders in your business or institution, as well.

The key premise of organizational development is that organizations are social systems.

The goal is to increase the long-term health and performance of the organization, while
enriching the lives of its members.

The OD approach emphasizes organizational culture, which influences the way people work,
using change based on research and action.

The method is using planned change based on research to increase motivation, remove
obstacles, and make change easier. The ideal is an organization where continuous
improvement is so prevalent that it is not thought of as an initiative.

Organizational development ("OD") transforms the organizational culture (loosely,


shared beliefs, values, and behaviors) by working with social and technical systems
such as culture,work processes, communication, and rewards.

This site describes some of the tools and techniques of organizational development. Though
these tools work best as part of a combined whole, they can also be used one at a time -
though then it might not be OD!

Organizational development is based on research, not case studies. Case studies can be
interpreted differently, depending on what people know and what they already believe.
Research into human behavior isolates and tests key assumptions and relationships, and is
more reliable as a basis for change.

If you're not ready to take the organizational development plunge, try it out on a small scale -
a workshop, some process consulting, a brief employee survey, some customer feedback. We
think the success of that first effort will make you want more - and make it easier to get more.

Organizational development helps companies, colleges, and governments by:

• Empowering leaders and individual employees.


• Creating a culture of continuous improvement and alignment around shared
goals.
• Making change easier and faster.
• Putting the minds of all employees to work.
• Enhancing the quality and speed of decisions.
• Making conflict constructive instead of destructive.
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• Giving leaders more control over results, by giving employees more control
over how they do their jobs.
Key benefits of organizational development

The outcomes of organizational development may include increases in:

• Profits (cost reduction, for nonprofits).


• Innovation.
• Customer satisfaction.
• Product and service quality.
• Cost effectiveness.
• Organizational flexibility.
• Personal feelings of effectiveness.
• Job, work, and life satisfaction.
More detailed goals of organizational development

The objectives of organizational development are an organization where:

• People and areas have the same goals


• Communication is open, laterally and vertically, and all relevant facts and
feelings are shared. People can learn from experience.
• Decisions are made by people with the most relevant, direct knowledge.
• The reward system reinforces organizational health.
• Conflict is treated and resolved constructively - where it is used for
innovation, not suppressed or allowed to interfere with productivity.
• Processes and structures are based on present needs rather than past needs or
fads, so they are efficient and help people.
• People are rewarded for success but not punished for failure of innovation or
creativity; so innovation is high.
• Customer needs are always known and thought about by employees and
leaders.

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