MS 25 IGNOU MBA Solved Assignment - Describe various steps involved in organisational change to occur. Briefly discuss the role of chief implementor in bringing change in organisations.

Describe various steps involved in organisational change to occur. Briefly discuss the role of chief implementor in bringing change in organisations.

Ans :

Change is a word that generates uneasiness in most of us.   But most would agree that we can think of a time we had a good change in our lives.   A marriage, the birth of a baby, moving into a new home or a new job are examples of positive changes in our lives.  So why is it so difficult to swallow change at work?

For anyone who has ever gone into an organization and tried to change “the way things are” understands the resistance employees can have against any kind of change effort.  I worked with an organization and facilitated a class on the book Who Moved My Cheese? An Amazing Way to Deal with Change in Your Work and in Your Life by Dr. Spencer Johnson.   It was sadly comical how resistant staff were to just the mention of change.   There was a woman who participated in the training that we later moved from a very small cubicle to a large shared office, with privacy and new furniture.  One would have thought she would have been excited about what we thought would be a good change but she viewed it very differently. She was very upset and expressed that she didn’t “like that we moved her cheese”.   Ironically, months later she recognized the benefit of the move and thanked us.

This is just a simple example of how seemingly small things for some people are major upsets to others.   Some people get set in their ways, get comfortable and resist change because it causes them to undo habitual processes in their lives.

However, successful organizations understand that doing things the same way will produce the same result and that sometimes changing things is needed to take an organization to the next level.   So whether it is transitioning to a new software program, new procedures for processing material, office change or a change in benefit plan, change needs to be managed to be successful.

So why do people resist change?   Often it is fear of the unknown or perhaps how the change will impact them.  When people don’t know all the answers they feel like they have lost control and that makes them feel hopeless.   Organizational leaders have the responsibility to manage change efforts to minimize the negative impact on employees.

To effectively manage change efforts, it is important to help people understand what the change will be and the reasons behind the change.  The more detailed the communication about the vision for the change, the better employees understand the need and the less resistant they will be to the change.

Steps to implementing change:

1. Management Support for Change

It is critical that management shows support for changes and demonstrates that support when communicating and interacting with staff.  Employees develop a comfort level when they see management supporting the process.

2. Case for Change

No one wants to change for change sake, so it is important to create a case for change.   A case for change can come from different sources.   It can be a result of data collected on defect rates, customer satisfaction survey, employee satisfaction survey, customer comment cards, business goals as a result of a strategic planning session or budget pressures.  Using data is the best way to identify areas that need to improve and change initiatives.

3. Employee Involvement

All change efforts should involve employees at some level.  Organizational change, whether large or small, needs to be explained and communicated, specifically changes that affect how employees perform their jobs.  Whether it is changing a work process, improving customer satisfaction or finding ways to reduce costs, employees have experiences that can benefit the change planning and implementation process. Since employees are typically closest to the process, it is important that they understand the why behind a change and participate in creating the new process.

4. Communicating the Change

Communicating change should be structured and systematic.  Employees are at the mercy of management to inform them of changes.  When there is poor communication and the rumor mill starts spreading rumors about change, it can create resistance to the change.  Being proactive in communications can minimize resistance and make employees feel like they are part of the process.

5. Implementation

Once a change is planned, it is important to have good communication about the rollout and implementation of the change.  A timeline should be made for the implementation and should make changes in the order that affect the process and the employees who manage the process.   An effective timeline will allow for all new equipment, supplies or training to take place before fully implemented.   Implementing without a logical order can create frustration for those responsible for the work process.

6. Follow-up

Whenever a change is made it is always good to follow-up after implementation and assess how the change is working and if the change delivered the results that were intended.  Sometimes changes exceed target expectations but there are occasions that changes just don’t work as planned.  When this is the case, management should acknowledge that it didn’t work and make adjustments until the desired result is achieved.

7. Removing Barriers

Sometimes employees encounter barriers when implementing changes.  Barriers can be with other employees, other departments, inadequate training, lacking equipment or supply needs.  Sometimes management also needs to deal with resistant employees.  It is management’s responsibility to ensure that employees can implement change without obstacles and resistance.   Unfortunately, sometimes employees need to move on in order to successfully implement a needed change.

8. Celebrate

It is important to celebrate successes along the way as changes are made.  Celebrating the small changes and building momentum for bigger changes are what makes employees want to participate in the process.

When employees understand why a change is made and are part of the process for planning and implementing the change, it allows for a better chance for successful implementation.

MS 25 IGNOU MBA Solved Assignment -Differentiate between Transactional and Transformational leadership. Describe the competencies and skills required for a leader in order to bring change in organisations.

Differentiate between Transactional and Transformational leadership. Describe the competencies and skills required for a leader in order to bring change in organisations.

Ans :

Transactional and transformational leadership are two distinct managerial styles that either seek to maintain or change the organization. Transactional leadership is largely characterized by a desire to maintain the company's existing culture, policies, and procedures. It uses a reward-and-punishment based system to compel employees to perform certain behaviors. In contrast, the transformational leadership style seeks to provoke change in the way the company operates. Leaders who exhibit transformational leadership are often characterized as charismatic, inspiring, and motivating.

Goals of Transactional Leadership
Transactional Leadership Characteristics
Goals of Transformational Leadership
Transformational Leadership Characteristics

The primary goal of transactional leadership is to promote stability in the organization by creating a give-and-take type of exchange between managers and employees. Specific performance objectives are determined and communicated to employees. They are then responsible for meeting those performance objectives, but either receive a reward or punishment depending upon the outcome. Rewards are based upon meeting certain criteria, such as achieving a sales quota. Mistakes are either actively or passively observed by managers and dealt with accordingly. In active management by exception, leaders take swift corrective action against performance deviations and actively look for mistakes.

The relationships between transactional leaders and their employees tends to be focused on the successful completion of short-term tasks. Relations between the two groups are somewhat impersonal and temporary. Quantitative results are emphasized and employees are expected to follow the goals and directions of the leaders. The relationship is largely based on exchanges that satisfy two separate sets of objectives. For example, an employee shows up to work to receive a paycheck in order to maintain a certain standard of living. The manager wants the employee to show up to work to perform job tasks that he does not want to do himself.

The main goal of transformational leadership is to inspire change in an organization by exceeding prior standards and expectations. It does not rely on accomplishing objectives through certain types of exchanges or a reward-and-punishment system. Transformational leadership motivates employees to work towards a common objective, rather than seek out the fulfillment of individual goals. It tends to take a more individualized perspective towards employees, capitalizing on individual strengths and talents. Transformational leadership fosters an environment of thinking, teamwork, and mutual admiration.

Transformational leaders seek to gain the trust of their employees. The relationship is built upon the idea of establishing a long-term bond that encompasses more than just the company's performance objectives. Leaders who exhibit a transformational style of leadership tend to empower their employees to make decisions and contribute to the company's strategies. Values, personal meaning, personal power, and ethics are emphasized. A long-term perspective is one of the primary characteristics of the transformational leadership style. It fosters creativity, challenge, and individual employee development.

Introduction

Leadership competencies are leadership skills and behaviors that contribute to superior performance.  By using a competency-based approach to leadership, organizations can better identify and develop their next generation of leaders.2  Essential leadership competencies and global competencies have been defined by researchers.  However, future business trends and strategy should drive the development of new leadership competencies.  While some leadership competencies are essential to all firms, an organization should also define what leadership attributes are distinctive to the particular organization to create competitive advantage.  

Essential Leadership Competencies

A focus on leadership competencies and skill development promotes better leadership.3   However, skills needed for a particular position may change depending on the specific leadership level in the organization.  By using a competency approach, organizations can determine what positions at which levels require specific competencies.4 Researchers at the Center for Creative Leadership have identified some essential leadership competencies that are consistent among organizations.  They divide the overall structure into competencies for leading the organization, leading the self and leading others in the organization (see Figure 1).

When selecting and developing leaders, HR professionals should consider the competencies that the individual possesses and compare those to the ones that need further development for success in a leadership role.  By looking at his/her current competencies and comparing those to the skills necessary to fill a leadership position, organizations can make better informed decisions in hiring, developing and promoting leaders.5

Leadership Competencies

Leading the organization:

-          managing change

-          solving problems and making decisions

-          managing politics and influencing others

-          taking risks and innovating

-          setting vision and strategy

-          managing the work

-          enhancing business skills and knowledge

-          understanding and navigating the organization

Leading the self:

-          demonstrating ethics and integrity

-          displaying drive and purpose

-          exhibiting leadership stature

-          increasing your capacity to learn

-          managing yourself

-          increasing self-awareness

-          developing adaptability

 Leading others:

-          communicating effectively

-          developing others

-          valuing diversity and difference

-          building and maintaining relationships

-         managing effective teams and work groups

Global Leadership Competencies

Developing successful global leaders is a competitive advantage for multinational organizations.6  In addition to essential leadership competencies, global leaders face special challenges that require additional competencies. To clarify, a global leader is commonly defined as someone that cultivates business in a foreign market, sets business strategy at a global level and manages globally diverse and diffused teams.7  According to a Conference Board research report, 73% of managers agree that domestic business leadership and global leadership differ in the skills required.  Some of the challenges that global leaders may face are managing a diverse group of employees and business processes; adaptively approaching problems and challenges; adjusting to new values and cultures; and adapting to different types of business and personal stressors.8

To address the unique challenges of global leaders, researchers have identified global leadership competencies that can contribute to success.  Among these global competencies, developing a global mindset, cross-cultural communication skills and respecting cultural diversity are paramount to succeeding in the global workplace.9  Morgan McCall and George Hollenback studied successful global leaders and developed a list of common competencies specific to the global leader   HR practitioners can use global leadership competencies to support the development of leaders and thus the overall global business strategy.

MS 25 IGNOU MBA Solved Assignment - Explain the importance of interventions to be used in bringing about change in organisations. Describe any two interventions and their merits and demerits

Explain the importance of interventions to be used in bringing about change in organisations. Describe any two interventions and their merits and demerits in the context of organisations.

Ans :

This topic investigates change management intervention techniques.  There is no one right formula for this as every organisation and environmental context is different.   Your goal is to evaluate and select the most appropriate change management intervention techniques to support the implementation of your innovation and continuous improvement strategy.  Good Luck!

The role of management in an organisation is to set directions and associated goals for the organisation and ensure that the organisation achieves them. This involves both long term and short term strategies and the organisation of work within the organisation to support this. One of the most important tasks of a manager is to decide on and implement change – they do this by planning the change and setting goals, targets, timelines and resource limits. Managers act as ‘change agents’, developing and guiding the change process and getting those at the 'coal face’ onboard with the bigger organisational picture.  By doing this, the whole organisation operates as one large team (systemically) rather than as discrete teams or business units/departments.  A team comprising smaller teams. Implementing strategy requires changes to any one of a number of systems, processes and people.  This is often difficult.  Many argue that the implementation of strategy is much harder than the strategic direction setting and strategy formulation processes.  There are many change models from respected writers.  You should be able to make your informed choice from an understanding of them.  One that is often used either in its entirety, or modified appropriately, is from Harvard's John Kotter.  Kotter (1996:21) advocates an eight stage model for creating major change.  It is worth investigating this model in more detail from other sources.  The stages include:

1. Establishing a sense of urgency

1. Creating the guiding coalition

1. Developing a vision and strategy

1. Communicating the change vision

1. Empowering broad based action

1. Generating short-term wins

1. Consolidating gains and promoting more change

1. Anchoring new approaches in the culture

1. clear objectives

1. realistic and limited scope

1. informed awareness to build commitment

1. selection of appropriate systems

1. good timing

1. participation

1. support from key power groups

1. using the existing power structure

1. realistic assessment of proposed changes

1. majority support

1. competent staff to support changes

1. integration of new methods into everyday processes

1. transfer and diffusion of successful innovations to help change occur elsewhere in the organisation

1. contingency modification

• Do the goals and objectives for the proposed change program match the organisation’s vision?

• Does the implementation strategy match the objectives for the proposed change program?

• Does the implementation process match the organisation’s culture?

• Does the organisation have the time and the financial, human and technical resources to successfully implement the change program?

• Is there likely to be support or resistance from employees and other stakeholders to the proposed change?

• creating readiness for change; and

• overcoming resistance to change

1. they are based on valid information about the organisation's functioning

1. they provide organisational members with opportunities to make free and informed choices

1. they gain member's internal commitment to these choices

Dunphy (1981: pp52-55) lists 14 characteristics of a successful change program from his perspective.  These include:

Do you agree? How realistic are these to achieve in your experience? 

The idea in evaluating alternative change programs is to find the most appropriate one for the organisation – one that is compatible with organisational goals and meets its strategic vision and direction. The most important factors to consider are:

Change involves moving from the known to the unknown (Cummins/Worley, 1993; Carnall, 2007). Because the future is uncertain, and may adversely affect peoples competencies, worth, and coping abilities, organisational members generally do not support change, unless compelling reasons convince them otherwise.  Similarly, organisations tend to be heavily invested in the status quo, and they resist changing it in the face of certain losses, uncertain future benefits or perceived personal benefits. Consequently, a key issue in planning for action is how to motivate commitment to organisational change, such as Business Reengineering. This requires management attention to two related tasks:

Change Management focuses on these two tasks by proposing, designing and subsequently executing effective interventions at individual, group, organisational and environmental levels. It should not be overlooked, though, that the environment is often more powerful than the organisation itself, while the psyche, the most personal category, is too deep-seated to respond to external change initiatives.

Interventions refer to a set of planned change activities performed by internal or external people, intended to help an organisation increase its effectiveness. Interventions, which assist in improving productivity and the quality of work life have three characteristics:

Valid information is the result of an accurate diagnosis of the organisation's functioning. It must fairly reflect what organisational members perceive and feel about their primary concerns and issues. Free and informed choice suggests that organisational members are actively involved in making decisions about the changes that will affect them. It means that they can choose not to participate and that interventions will not be imposed upon them. Internal commitment means that organisational members accept ownership of the intervention and take responsibility for implementing it. In fact, if interventions are to result in meaningful changes, management must be committed to implementing them (Cummins/Worley, 1993; Carnall, 2007).

Many change managers seem to believe that contrary to these three points proposed, changes must be kept secret from employees until the point of implementation. This approach is only likely to succeed in the most extreme situations and is more likely to result in strong employee resentment and resistance to the change initiatives. In today's better educated community in which legitimate authority is not automatically accepted without questions, employees are likely to expect to be involved in decisions that will accept them personally. Failure to provide opportunity for such involvement can also send a perceived strong message to employees who after all will have to make the changes work, that their opinion or contribution is not valued by their management. It is also important to appreciate it is virtually impossible to keep totally secret major change initiatives. Failure to provide factual communication on the issues and reasons for change, etc, will lead to rumours and a general escalation of fear about the possible changes. Employee morale is likely to plummet and the necessary energy needed to support and implement the change program dissipate.  Such issues can make or break a change program, regardless of how necessary it may be.

MS 25 IGNOU MBA Solved Assignment - State the reasons for the change to occur in organisations and substantiate it with illustrations.

State the reasons for the change to occur in organisations and substantiate it with illustrations.

Ans :

Change is difficult, especially when it involves an entire organisation. When you’re making high-level changes, there are a lot of factors that need to be assessed. As well as plenty of things that can go wrong. Let’s look at the top reasons change fails and what HR should consider when developing a change strategy.

1.          Lack of preparation – this is a critical step in the change management process. A strategy must be formed before change begins. When change is hastily implemented, important details will be missed and it will not receive the support necessary to make organisational change a success.

2.          Change Comes from Outsiders– change must occur from within the organisation. Having the input and guidance of an outside consultant or a change expert can be beneficial for providing reassurance and credibility to the change project. But, in the end, people need to know that change is something the leaders of the organisation believe in and not just an outside consultant’s recommendation.

3.          Change as an Option– leadership must commit to the change then guide the company through it. Change should be presented as a concrete plan, not an option, otherwise it will never happen.

4.           No Change Management Team – have a designated team in place to make the decisions involving the organisational change. Let someone from the team handle questions and guide employees through the change process. The team should be comprised of leaders and management who understand the necessity of organisational changeand are qualified to make change decisions.

5.            No Employee Feedback– it’s important to encourage the involvement of those who are expected to implement the change. When employee input and feedback isn’t taken into account during the change process, it can create resentment and resistance. That will inevitably undermine the goals of the change.

HR plays an important role in the success of organisational change. The HR team should be involved in developing the strategy for change because people are such an integral part of the process. One of the tools HR professionals can use to help improve the change process is 360 degree feedback. 360 feedback can help identify future leaders, develop current leaders, and collect valuable feedback throughout the change process.      

What organizations can change fall into the following broad areas:

1. Mission, Vision, & Strategy: Organizations should continually ask themselves, "What is our business and what should it be?" Answers to these questions can lead to changes in the organization's mission (the purpose of its business), its vision for the future (what the organization should look like), and its competitive strategy.

1. Technology: Organizations can change their technology (for example the way they produce whatever they sell) in order to increase efficiency and lower costs.

1. Human-Behavioral Changes: Training can be provided to managers and employees to provide new knowledge and skills, or people can be replaced or downsized. As result of the recent financial crisis, many organizations downsized creating massive unemployment that continues to this day.

1. Task-Job Design: The way work is performed in the organization can be changed with new procedures and methods for performing work.

1. Organizational Structure: Organizations can change the way they are structured in order to be more responsive to their external environment. Again to be more responsive to the marketplace, this also includes where decisions should be made in the organization (centralized or decentralized).

Organizational Culture: Entities can attempt to change their culture, including management and leadership styles, values and beliefs. Of all the things organizations can change, this is by far the most difficult to undertake.  

MS 25 IGNOU MBA Solved Assignment -What is Turnaround Management? Explain how turn around Management can be used for bringing change in organisations. Give examples.

What is Turnaround Management? Explain how turn around Management can be used for bringing change in organisations. Give examples.

Ans :

Turnaround management is a group of administration techniques used by organizations in financial distress. Professionals in the field are highly trained and specialize in corporate organization and evaluation. The first goal in most turnaround initiatives is to evaluate and stabilize the business in trouble. Other objectives include realistic operational guidelines and eventual profit growth.

The turnaround specialist enters a company with a fresh eye, knowledge and skills and enjoys complete objectivity. This professional is able to spot problems and create new solutions that may not be visible to company insiders simply because the latter are too close to the subject.

The turnaround manager has no political agenda or other obligations to colour the decision-making process, allowing him or her to take the unpopular yet necessary steps for survival from corporate insolvency, liquidation, cvs, company administration or receivership.

Experience within a particular industry may mean little when a company is facing bankruptcy and the loss of millions in revenue. A turnaround specialist brings experience in crisis situations. Like a paramedic, the talent lies in making critical decisions quickly in order for the patient to have the best chance at recovery.

Operating in the eye of the storm, the turnaround specialist must deal equitably with angry creditors, scared employees, wary customers and a nervous board of directors. With the highest stakes on the table, clearly this is no assignment for the faint-hearted

3 Stages of Turnaround Management

Stage 1 – Assess Viability

This consists of a high level and detailed investigation of the business and its situation, and can take 2-4 weeks.

The investigation acquires a wide range of information including:

• current and historical financials (P&L, balance sheet, cash flow and verification these are reliable including costing systems)

• stakeholders and debtors

• management capability

• cause of situation

• potential solutions

• assess if business issues are controllable

• assess if ongoing business is viable

• develop SWOT analysis to provide clarity on options.

• Crisis stabilisation – taking control, cash management, short term financing, first step cost reduction.

• New or improved leadership – due to inadequate skills, instability in management, need for fresh ideas, or to bolster a tired team.

• Stakeholder focus – advising and engaging stakeholders dependent on the outcome and includes financiers, creditors, employees, customers, industry associations and even government officers (sometimes a source for grants). The benefit of this aspect is often underestimated and often provides the greatest source of solutions and support.

• Strategic focus – redefining the core business, restructuring, M&A, divestment.

• Organisational change – engaging key staff, improving communication, improving morale.

• Process improvements – operational improvements that provides low hanging fruit, and focus on key issues that may be key risks.

• Financial restructuring – implementing tighter control and monitoring of cash (implementing a rolling 13 week cash flow forecast), equity injection, asset reduction or selling  under-utilised assets to generate cash or use as security for short term funding.

This is summarised to provide decision-makers with a concise assessment, including options, risks and priorities to consider in implementing a turnaround.

With current legislation in most countries, the directors have to make the decision on what to do with this information.  The turnaround specialist’s role is to provide the advice and likely scenarios with the issues.

Stage 2 – Stabilise and Develop Strategy

Once the issues and priorities have been identified and agreed to, Stage 2 focuses on stabilising the business and planning the recovery strategy. The timeframe can vary widely depending on the business situation and complexity and can take from 4 weeks to 3 months. In many cases the foundations of Stage 2 are being formed through the Stage 1 discovery.

The turnaround strategy consists of the following, and may occur concurrently and in any order:

Stage 3 – Implementation and Monitoring

Once Stage 2 is underway, the focus will be the detailed implementation and monitoring.

This may include setting up an advisory board to assist the owners, directors, or board to maintain focus on the implementation.

The business may bring on board a Chief Restructuring Officer whose prime role is to implement the turnaround strategy – this allows management to maintain focus on their core skills.

Stage 3 can over lap stage 2, and can vary from 3 – 12 months.

For more information on turnaround, listen to our podcast on this website.

The next update will expand on the Chief Restructuring Officer role, how it works and the benefits.