Managing Change in the Organization

Introduction: Laxmi BNS Holdings Ltd manufactures imports and sells medicines and pharmaceutical products. Turnover of this company is 350million. 14 direct reports. Short term contract role to support the turnaround from the acquisition of trading assets and debt of Colorama Pharmaceuticals as well as streamlining of the companies. TVS motor is an Indian company, the company is existing in various automobile segment. The enterprise is offering various types of mopeds, scooters and motorcycle. In scooter segment company offers Scooty pep, Scooty pep plus, Scooty Tenz and Scooty Streak. In motorcycle segment enterprise is offering TVS Victor, TVS Star, TVS Flame and most recently company has introduced TVS Apache. In moped Segment Company offers TVS Super and TVS XLR heavy-duty. In motorcycle and scooter segment organization is doing well business. TVS victor got huge success in the market. Recently introduced TVS apache has been making money for the organization. Initially organization has collaboration with Suzuki motors limited. After parting from the Suzuki in 2000 the company is doing business itself. Organization has been implemented many changes to sustain in current market condition. Task: 1 (a) Indian customer becomes more scruples for the quality. According to TPM Club (2010) since 1990, the government of India has been inviting foreign companies to invest money in the Indian economy. Government is also facilitating these organizations by providing tax redemption. These companies product have good quality and better performance. Secondly the Indian customer favours fuel efficient products due to petrol price hike in the economy. TVS must have to look on this economical and behaviour changes which they have been faced in the market. Organization was facing problem to manage their cost structure. To cope with these changes organization had decided to implement changes in the organization. According TPM club India TVS has been implemented Total productive maintenance in 1999. By the help of total productive maintenance organization is enabling to get zero defects, zero failure, zero accident with total employee involvement at all stage. To make fuel efficient product organization has been spent lot money to developed engine which is fuel efficient. Organization has been came up with digital twin spark engine in them motorcycle segment. According to TVS motors (2010) organization had launched its first 4 stroke bike TVS fiero to cope with the fuel efficient engine requirement. The company has successfully implemented changes in the organization, According TVS Motor (2010) organization bagged TPM excellence award in 2004. By the help of implement changes organization has got following results.

(Source: http://www.tvsmotor.in/news.asp?id=80&yr=2005 [Accessed on 28.08.2010] ) Task:1 (b) Definition of bureaucracy: Bureaucracy means a system of administration by its clear hierarchy of authority, rigid the division of labour, written and inflexible rules, regulation and procedure and impersonal relationship. (http://businessdictionary.com 27.08.2010) According to Beech J and S Chadwick (nd) bureaucracy mean a format of organization which will work as per standard procedure, written communication and hierarchies of procedure. Bureaucracy has follows following principle. (Weber M, 1978) 1 Each department has specialization in their work, they are having expertise. 2 Bureaucracy follows proper hierarchy, lower department is supervising by higher ones. 3 The rules in bureaucratic organization are exhaustive and stable. 4 Each employees are equally treated in the organization according to rules. 5 Employee selection will be according to qualification and experience. 1 Employee promotion will be according to seniority. Strength and weakness of bureaucratic organization: According to Weber M (1978) the strength and weakness of the bureaucratic organization are as per followings: Strength: 1 1. The bureaucratic organizations have superior degree of communication, due to hierarchy method. 2 2. The bureaucratic organization will use economic scale efficiently. 3 3. The chance of reproduction of the employees and tools are less. 4 4. The decision making process in the bureaucratic organization is integrated to each other. 5 5. By the help of bureaucratic philosophies, the effectiveness operation could be enhancing. 6 6. Bureaucratic organization is believed to maintain higher level of consistency in decision making process regarding to new project. Weakness: 1 1. The chance of innovation is less due to higher level of the bureaucracy. Bureaucracy will not protect organization by providing competitive advantage in the market. 2 2. Due to hierarchy the structure is become ladder which is the major obstacle in the decision making process.

3 3. Employees unavailability will create new problem for the organization. 4 4. In bureaucratic organization employees never get empowerment and the motivation of the employees is down due to less responsibilities. 5 5. Bureaucracy neglect groups thinking. Task : 1 (c) Definition of organizational development: According to Nielsen E (1984) cited by Harris O and S Hartman (2001) Organizational development is attempt to attract the employee of the organization towards expand their candidness with each other about their view for the organization and their experience in it. Organizational development is also attracting employee to take responsibilities for their own action as a member of organization. Here the assumption behind organizational development is when employee works for the both objective simultaneously they will able to invent new ways for working together for achieving organizational objectives.
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The main aim of the organizational development is to improve the performance and effectiveness of the organization by empowering employees and system. Organizational development is emphasis on empowerment, learning and problem solving process. According to French W and C Bell (1999) there are following characteristics of the organizational development: 1 Organization development is focus on culture and process to collaborate team leader and member by implementing specific encouragement. 2 Organizational development believes in total system change. It is focus on involvement and participation of the employee in problem solving method. 3 Organizational development is also focus on client and believes that client is also facilitating to solve the problem for meeting the organization goal. Organizational development is playing major role for the change process, there are many alternative are available for the organizational development. 1 Quality development: 2 Technical development 3 Technological development 4 Structural development 5 Strategic development. These all are the alternative form of the organizational development and I am going to explain two forms among them. 1 Quality development:

Quality development is the one of the change of organization changing process. To sustain in current market condition, organization has to implement quality change. This will plays major role for the organization. To develop quality organization has to invest more money behind to develop system and quality culture. Organizational has to convince stakeholder for adopting this change. Organization has to provide training to the employees to adopt this change. Organization has to invest money to buy precise machineries. For example TVS motor was facing problem to sustain in the market due to high quality product competition, organization has adopt quality changes for the organization. They adopted Total productive maintenance system to get high quality product. 1 Technological Development: This is the important aspect of the changes. Technology changes every day. With the advancement of the technology organization has to adopt new technology to their
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process to compete the market. Organization has to invest maximum money to become technological advance. To implement technological changes in the organization, organization has to evaluate the present technology and also evaluate capacity of acceptance of the new technology. Organization has also figure out the what training is needed to bring the changes in the organization and what will be the future impact. To implement all these changes in the organization, the company has to use business process reengineering models which help them to fundamentally improvement. For example TVS, to cope with fuel efficient motorcycle demand organization had to invest behind Research and development to bring out new models in the market. Organization comes up with their first 4 stroke motorcycle to compete the market. To bring this changes organization have to invest in latest machineries and training of the man power. Task: 2(a) TVS was enabled to implement changes in the organization by the help of following stakeholder. 1 Employees: To implement total productive maintenance system in the organization, TVS must have to involve the employees. To implement this system employee are the key players. Total productive maintenance system is related to zero defects, zero failure and zero accident, without support of employees it is impossible to implement it in the organization. To meet zero accident in the organization, Employer has too train the employees to reduce the accident ratio. 1 Supplier:

Supplier is second key stake holder in the organization for implementing change in the organization. To get the zero defects product organization has to develop the supplier who provide zero defect sub product. Supplier is supplying material to the organization if there is any problem in supplied material it is impossible to get the zero defects product. 1 Investor: Investor is the third main important stakeholder for the organization. To implement this system organization has to invest behind machineries and the training. Without investor it is difficult to bring change in the organization.
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In order to introduce change in the organization, there are many ways to convinced stakeholders. 1 Communication: Organization has to constantly dialogue with the employees about the changes. Organization has to find out key employees from the group and convinced them for changes. Organization has to share the long term vision to the employees and receive their ideas and suggestion. 2 Meeting: Organization has to constantly arrange the meeting with the employees and try to sort out their problem regarding the changes. To get commitment from the investor organization can arrange meeting with them and convince them for the changes by proving the future benefits of the changes. 3 Survey: Organization can get commitment from the supplier regarding the changes by the survey. Organization can use this method to know that how supplier going to support to the changes. 4 Incentives: Organization can convince employees for the changes by providing additional incentive; this could be play major role to implement change in the organization. 5 Multimedia: Organization conveys the change message to the all stakeholder by presenting change through the multimedia presentation, demonstration or training. By the end of presentation organization will get the feedback regarding changes. This will help organization to judge changes properly and make rectification or modification according to feedback. For example of TVS to implement changes, Organization has to build a shared vision to the employees. Means organization has to provide clear idea to the employees regarding changes. Organization has to give them clear picture about future benefits. Organization has to convey the message to the employees that this change is for the good future of the organization. TVS has to find out the key employees from the group and convinced them for the future changes, this will help organization to implement change in easy way. Task: 2 (b)

Communication system is the most important for the implement changes in the organization. By the help of this system organization can convey the message to every stakeholder of the organization. Organization will also enable to receive the comments or suggestion from the employees regarding changes. Comment and suggestion will help organization to implement fundamentally strong changes. If organization has took action regarding the comment or suggestion and rectify the change according to the suggestion, than it is very much easy to implement change in the organization. Communication system must be two way systems and it will be able to pass clear message to the employees. There are main following characteristics of the communication.
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1 By the help of communication organization enable to aware stakeholder regarding changes. 2 By the help of the communication, stakeholder will understand purpose and progress of the changes. 3 By the help of communication stakeholder will be support the project and believe it is worthwhile and promote it. 4 By the help of communication stakeholder create advocacy and behave proactively towards the changes and support the changes. Task: 3 (a) There are several change models available for the organization. TVS has implemented total productive maintenance in the organization. The aim behind implementing this change in the organization is to get zero defects, zero accident and zero failures with the help of employees at all stages of the changes. To implement these changes I found following models which are suits for implementing change in the organization. 1 Kaizen: Kaizen is Japanese word; it does mean continuous improvement by waste reduction. According to George M (2010) most of the manufacturing and service industries are using this model for the rapid improvement. There are numbers of attributes of the Kaizen model, following are some of them: 1 1. Kaizen model has standard structure and simplicity in planning. 2 2. Kaizen is typical improvement tools there are no more sophistication. 3 3. Most of the environment can use this model. Like service and manufacturing industries, plant, back office, front office, and hospitals. 4 4. Kaizen help organization to change the thinking of the employees. Kaizen promote collaboration and this will create ownership sense in the employees mind by getting positive result from implemented action. According to George M (2010) there are main three participants in the kaizen model. 1 Project Sponsor:

Project sponsor is the main for implementing any project in the organization. Project sponsor has authority to provide budget for implementing model. Project sponsor have final authority to approve correction in the project. He is the final decision maker. 1 Event Facilitator: The event facilitator is the responsible for the result of the implementing project. The event facilitator has to manage all the agenda during the project. 1 Team Members: In aspect of team member, they are the one who is implementing the change or project in their day by day activities.
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Kaizen model is basically for the improvement by reducing waste at all level. By the help of Kaizen the employees are being more conscious about the improvement and quality of the product. They are being able to analysis the problem, find out the root cause and taking the corrective action according to requirement. They are also able to monitor implemented correction which will help them future further action. 1 Six Sigma: Six Sigma is the model to improve the quality at all level of the organization. Six Sigma model has been developed by the Motorola in 1980 to reduce the quality problem in mass production. The formal definition of six sigma in term of statistical process to reduce the process variation, so the quality of the product will be according to customer expectation. This model emphasis on only 3.4 defects per one million parts production. According to Pande P and L Holpp (2002) Organization can define six sigma as followings: 1 1. Six sigma means a statistical measurement of the product or process performance. 2 2. Six sigma means a goal which help organization to reach at perfection level. 3 3. Six Sigma means a management system which will help organization to achieve world class leadership in the market.
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Six sigma is the cycle for the improvement product performance. Here first of all organization has to decide the goal, means what they wanted to achieve than after organization has to implement steps to achieve the objective. After implementing steps organization has to measure the steps means are they according to work as per objective? If organization found any deviation during the measure than organization has to analysis the root cause behind the deviation. After analysis root cause organization has to decide the corrective action to achieve the objectives and implement that

corrective action for improvement. Organization has to measure the effectiveness of the corrective action and take steps according to that to achieve final objectives. The main aim of six sigma model is the process has only 3.4 defects in per one million occurrence. To achieve this objective and implement the six sigma in the organization, organization has to constantly improve the processes and measure it. Organization has to take corrective action and implement it in system or process to reach at six sigma level. 1 Business Process Reengineering: According to Radhakrishnan R and S Balasubramanian (2008) Business process reengineering means a technique which is concentrating on process to bring or implement the radical changes in the organization with the help of dramatically improvement in the process. This change could be in structure, performance measurement, incentives or in management. In business process reengineering organization brings change according to requirement and implements it in the organization. Organization has to measure the reaction of the implemented changes and get the suggestion on that. If any correction needed in the implemented changes than organization has to defreeze the changes and make corrective action according to suggestion and refreeze the changes in the system. Many organizations are using BPR methodology to implementing massive radical changes in the system. Business process reengineering is being used as vehicle to increase the customer satisfaction, to improve financial result, to realign business strategy and structure. Task: 3 (b) I am going to implement Six Sigma models to establish zero defects, zero failure and zero accident in the organization. I am going to use Kotters 8 step for implement changes in the organization. To implement changes in the organization Kotter has suggested 8 steps. According Kotter J (1995) there are following steps for implementing change in the organization:
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1. Create Urgency:

When organization wanted to bring change in the organization, entire company will not help them to implement changes. For that organization has to create urgency, this will help organization to spark changing in the organization. Organization will never implement changes in the organization by showing poor sales or finance data. Organization has to constantly dialogue with the stakeholder to bring the change in the organization. Organization has to be honest with the stakeholder and convince them for the future benefits. 1 2. Form powerful coalition: To form coalition organization has to find out key employees and convince them for the changes. Organization has to ask emotional commitment from

these key employees. Organization has to make team for the changes and make sure the members of the team are from the different department. 1 3. Create a vision for change: When organization is going to thinking about the changes on that time organization has to pass their ideas to the people. Organization has to make a short vision statement for the change which people can easily remember. 1 4. Communicate the Vision: Organization has to use vision for day by day activity. Organization has to incorporate that vision in decision making process. Whenever any discussion happens organization has to represent that vision powerfully and embed it in every activity. 1 5. Remove Barriers: Organization has to remove the obstacle which comes in the way of implement. To remove this obstacle organization has to analysis this obstacle and find out the root cause to remove it from the system. If it is regarding to employees responsibilities than organization has to fix the responsibilities of the employees and foster them to implement changes in the organization by providing incentives. Organization has to specially appoint a leader who is responsible for the change. Organization has to take immediate corrective action to remove obstacles. 1 6. Create a short term wins: Organization has to split changes in short term objective to achieve it easily. Organization has to put result of changes in front of the staff. Organization has to look the changes will implement without strong critics or changes. Organization has to put strong effort to achieve short term goals. After achieving this objectives
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organization has to reward the employee which will increase the level of the motivation and will create positive attitude towards the changes. 1 7. Build on the change: Organization has to analysis every change after successfully implementation. Organization has to analysis that what went right and in which action improvement needed. Organization has to take corrective action according to that in future step of action to achieve specific change in the organization. 1 8. Incorporate change in corporate culture: Organization has to make constant effort to make sure that change are implemented Properly in the organization and it is incorporate in the every stage of organization. Organization has to constantly monitor changes and ensure that it is a part of corporate culture.

After successful implement of the changes in the TVS motor, I am expecting quality product from the organization. Customer will be more satisfied from the product and organization will able to capture the market share. This change will become core competence of the organization; TVS will be able to get competitive advantages from these changes. Organization will also able to reduce the cost of manufacturing by reducing waste at all level. Conclusion: In opinion to me, change is the long process for the organization. To implement change in the organization, Organization has to make systematic steps. Organization has to use different strategies to convince stakeholders for the change. To change the thinking of the employee is critical process but after proper implement of the change organization will enable to achieve decided objectives.