Edexcel Level 7 ASSESSMENT ACTIVITY : UNIT No: 2 UNIT NAME: Managing Change in Organisations ASSESSMENT NO: 1 OF 1 FOR THIS UNIT Full Name: RAHUL DESHMUKH4Intake: October’ 2008 Date issued: ____________ Date due: February 13, 2009 Date submitted: June 01, 2009 Assessor(s):_______________________________________ Learning Outcomes: 1, 2, 3 Unit outcomes OutcomeEvidence for the criteriaFeedbackAssessor’s decisionInternal Verification 1 Explore the background to change affecting the current organisation (2. 1)• discuss the background to change that exists intoday’s economya evaluate the strengths and weaknesses of bureaucratic organisationsb • compare alternative forms of Organisational Developmentc 2 Develop systems for understanding and involving others in the process of change (2. 2)• develop systems to involve appropriate stakeholders in the introduction of changea • analyse and evaluate these systemsB 3 Plan to implement models for ensuring ongoing change (2. 3)• develop and adapt appropriate models for changea • plan the implementation process and outcomesB Results Awarded Pass Fail Lecturer’s additional feedback and comments
Internal verification of assignment brief (final agreed version) IV name (Raghunath)Areeba ZafarDate01-06-2009 I confirm that this is all my own workStudent signature ? Table of ContentsPage No Table of Contents4 Abstract5 Task – 16-14 2. 1 Explore the background to change affecting the current organization 2. 1 (a)Discuss the background to change that exists in today’s economy6-7 2. 1 (b)Evaluate the strengths and weaknesses of bureaucratic organisations8-11 2. 1 (c)Compare alternative forms of organisational Development11-14 Task – 214-17 . 2 Develop systems for understanding and involving others in the process of change 2. 2 (a)Develop systems to involve appropriate stakeholders in the introduction of change 2. 2 (b)Analyse and evaluate these systems Task – 317-21 2. 3 Plan to implement models for ensuring ongoing change 2. 3 (a)Develop and adapt appropriate models for change 2. 3 (b)Plan the implementation process and outcomes References ( including web referencing)22 ? ABSTRACT This report managing change in the organization explores the following issues in detail: Task 1 Backgrounds to change and issues that faces the today’s world economy. Globalisation, political instabilities, climatic changes and technological advancement puts pressure on the economy, and various groups of management experts who have put their restless effort to bring this change. ?Strength and weaknesses of bureaucratic organisations. ?Organization Development: alternative forms of organizational development(structural and technological development) Task 2 ?Stakeholder Analysis: model involving all the appropriate stakeholders, rebuilding Satyam and its analysis.
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Task 3 ?Model for change: process and application ?Implementation and final outcome. Task 1 2. 1(a) Discuss the background to change that exists in today’s economy. The division between agricultural and industrialization age was given by Alvin Tofler according to whom the era until late 19th century was driven by agriculture and post 19th century era was led by industrialization. The current era is informational era based on knowledge workers whose jobs are evolved around acquisition and application of knowledge.
In agricultural era, people were bosses of their own and were responsible for the production of crops which added to the overall output of the country. Agricultural era was transformed into industrial era after the evolution of technology. Various equipments and machines replaced the human effort and people started working in the manufacturing industries. The increased reliance on modern equipments led era to evolve from agricultural to the industrialization stage (www. blurtit. om on 04/02/2009) The global economy has always been in transition depends on various factors that influence and affect it. Some of these factors are macro and micro economics policies, global climatic conditions, unemployment poverty, inflation, politics and difference in political ideologies, technological advancement. According to PEST model, the background to change that exists in today’s economy can be categorised as political influence, economic circumstances, social factors and technological component.
The beginning of administrative Wisdom is the awareness that there is no optimum type of management system. The different schools of organization theory provide a number of ways of analysing organizations from the point of view of the formal structure, individual behaviour, and the organization as a system and the environmental influences which affect the shape and climate of an organization. In early decade’s organization used to follow the scientific management or classical school of thoughts represented by Fayol, Taylor, and Urwick belived in control, order and formality.
The scientific management model has been attacked vigorously because it is too rigid and because it makes no allowance for situational factors such as the environment or technology. Neither does it take account of change or human factors, including the informal organization. But this approach, with its emphasis on organization charts and manuals, job descriptions clear definitions of responsibility and authority and limited spans of control, still thrives. In 1920s and 1930s greater attention began to be paid to the way in which human dimension affected the operation of organizations and what this meant for management.
The key work which defines the human relations approach comes from Elton Mayo, the informal organization determines to the large extent, workers attitudes to the formal organization. It is work group norms which tend to set standards of performance, such as time keeping, output, quality, attitudes towards customers and clients, dress codes, etc. , and management cannot impose standards which are not acceptable in this alternative culture. This is a major problem for management since managers themselves are party to the informal organization and culture as well.
In 1960s, a number of behavioural scientists emerged, among them Douglas McGregor is best known for his classification of assumptions about human nature but it ignores the real commercial and technological constrains of industrial life. It overreacts against the excessive formality of the scientific management; this gave rise to systems approach to organization laid down by Miller and Rice explains that organizations have to be treated as open-end systems that are continuous dependent upon and persuaded by their background.
Then came the contingency theory which made a detailed analysis on various organizations and concluded that their system and way of operation is an act of conditions and factors in which they operate and exist. Theory is against those who see organizations as mutually opposed social systems which set formal against informal organizations, and against those who impose rigid principles of organization irrespective of the technology or environmental conditions.
The different schools of organization theory provide a number of ways of analysing organizations from the point of the formal structure, individual behaviour, the organization as a system and the environmental influences which affect the shape and climate of an organization. The most pragmatic approach is provided by the contingency theory but one thing is clear that there is no one optimum type of management system which can be followed. The world today has not come in this modern era over night. For reaching in this position years after years have passed.
A lot of people and group of scholars have put their restless effort to bring a positive change in the world economy which is evident today. The organization and its management pattern have been changed due to various demanding issues of employees and management who have thought for the change. Task 1 2. 1(b) Evaluate the strengths and weaknesses of bureaucratic organizations Bureaucracy is the structure and set of regulations in place to control activity, usually in large organizations and government.
As opposed to adhocracy, it is represented by standardized procedure (rule-following) that dictates the execution of most or all processes within the body, formal division of powers, hierarchy, and relationships. “Bureaucracy can be defined as an organisational model or a system intelligently designed to perform complicated tasks efficiently and effectively. In a bureaucratic organization, officials and concerned people deliberately perform and rebuild the policy to make the organisation as efficient as possible” Macionis & Plumer, (1997).
This type of administration is characterised by specialization and professionalism with functions that are following fixed rules and regulations. As its characteristic is concern, bureaucracy can both help and hurt. In short bureaucracy is a structured organization formed to achieve specified goals (Pass et al, 2002:48). Max Weber (1978; orig. 1921) identified six key elements of the ideal bureaucratic organisation. 1. Specialisation: Through existence of human history, everyone was basically concerned with goals of securing food and shelter as their prime objective.
Bureaucracy, follows the rule that individuals will be assigned duties according to their specialization 2. Hierarch of offices: In an Bureaucratic organization personnel’s are placed in a vertical hierarchy. Each person is thus supervised by ‘higher-ups’ in the organisation while, in turn, supervising others in lower positions. 3. Rules and regulations: bureaucratic organizations follow a pre-defined rules and regulations. These rules control not only the organisations own functioning but, as much as possible, its larger environment. Ideally speaking ureaucratic organizations operate in a completely predictable manner. 4. Technical competence. A bureaucratic organisation expects that its officials should be technically sound enough to carry out their assigned duties. Bureaucracies regularly monitor the performance of the staff members. Such impersonal evaluation based on performance of staff members contrasts sharply with the custom, followed through most of human history, of favouring known ones – whatever might be their capabilities and talents are- over strangers or unknown persons. 5.
Impersonality. In bureaucratic organisation, rules take command over personal desire. This impersonality inspires equal treatment for each client as well as other workers. From this impartial access originate the notion of the ‘faceless bureaucrats’. 6. Formal and written communications. An old adage states that the main feature of bureaucracy is not the people but the paperwork. Rather than casual and verbal communication, bureaucracy depends on formal and written documents. As time passes, this written communication converted into vast files.
These files guide the following operation of an organisation in roughly the same way that social background shapes the life of an individual WEAKNESSES OF BUREAUCRATIC ORGANIZATION. Despite the fact that bureaucracy helps to manage countless dimension of our everyday life, still has got some weaknesses. Below are some of the weaknesses of bureaucracy which range from its tendency to dehumanise and alienate individuals to threats posing on personal privacy and political democracy: •Bureaucratic alienation: Apart from being a model of productivity, Weber points out bureaucracy’s ability to mechanize those it intend to serve.
The impersonal bureaucratic movement encourages efficiency at the same time denies official and clients the ability to attend everyone’s one of a kind, personal needs. Thus the detached bureaucratic environment, then give rises to disinterest. •Bureaucratic organizational tend to have a division of labor and thus not having properly skilled employees in the right position. This creates a weakness for them and an opportunity for another organization to excel in a department where the bureaucratic organization is failing. Bureaucratic organizations tend to become a cage of control (restricting the organization freedom as a cage restricts movement). The organization will become dormant. •Bureaucratic organizations tend to have high employee turnover and thus the organization will have high costs in recruitment. Employees are not given the chance to use their skills initiative and talents. Employees leaving such an organization create a bad name for the organization as they don’t see it necessary to be loyal to the organization.
Rival organizations take this as an opportunity. •Emphasis on rules can deflect employee’s attention from working efficiently and effectively thus affecting the production of goods and services. •Bureaucratic organization discourage cooperation, this is the huge weakness. Without cooperation systems and departments within the organization won’t function properly this creates problems like receiving the sales figures late because marketing department didn’t give the production department on time. Bureaucratic organizations also have the disadvantage because employees tend not to know and see the value of the organization’s end product/service or the use of that particular good/service. •Promotion only happens when employee meets the manager’s expectations. •Bureaucratic organizations are not easy to change. Due to the dynamic world we are living in change and change is inevitable and organizations have to redesign their structures, set new goals and objectives to coincide with these changes. An organization that is so rigid will tend to have difficulties starting at the top position.
STRENGTHS OF BUREAUCRATIC ORGANIZATIONS ?Bureaucracy clearly defines a set of rules and norms for an organization e. g. subordinate have to report to their superiors and getting their daily instructions only from their superiors. ?Promotion is by seniority; meaning the hard worker will get recognition and will thus move up if he/she is working hard. ?Bureaucracy instills disciplinary control over the office. Tasks are followed and done in an orderly specified manner; this helps some organizations reach their set goals and objectives. Max Weber thought bureaucracy is better than traditional forms of administration where people got appointed by favoritism or bribes e. g. the manager’s friend is a doctor and looking for a job for his son, all he has to do is ask the manager as a friend to employ his son and he will then provide free medical care for the manager’s family. ?Positions in a bureaucratic environment are very influential within the organization as well as in society. ?Bureaucratic organizations are very well structured with specified goals, rules and regulations. Jobs are well defined and specified, the organization employees people who know who is who within the organization and who to go to. ?Rules are adhered to otherwise there are consequences. Bureaucratic organizations tend to run smoothly and on time. ?Max Weber noted that people need watching over otherwise they won’t perform properly. Bureaucratic organizations have the upper hand in control; the superiors know what everyone is doing, whether they are achieving their production goals etc. Production is heightened and met quickly and effectively and with the use of minimal resources.
Task 1 2. 1(c) Compare Alternative forms of Organizational development Organizational development could be defined as “the practice of changing people and organizations for positive growth. ” It is an long term effort led and supported by top management, to improve an organizations visioning, empowerment, learning, and problem solving processes, through an ongoing, collaborative management of organizational culture with special emphasis on the consultant facilitator role and the theory and technology of applied behavioural science, including participant action research. (Organization development, [French & bell, 1999]) Burnes (2004) defines Organizational Development (OD) as a one of a kind organizational refinement strategy that developed into a united structure or system of theories and practices proficient of solving moist of the significant problems tackling the human side of the organizations. In other words, Organization Development is all about people and its organizations and how they function. French and Bell (1995:1-2) also defines OD as a set of values, assumptions and ethics that stresses its humanistic direction or tendency and its obligation to organizational effectiveness.
Likewise French and Bell (1973) suggested four core values for Organisational Development: •Organizations exist in the society because of strong desires and needs of the human beings. •Change agents believe that organization should mark its objectives in order of priority which is accepted as part of organization culture. •Change agents are directed and committed to increase organizational efficiency and affectivity. •OD places a high pressure on process of becoming a democracy through power equalization.
In addition to the core values proposed by French and Bell above, Hurley, et al (1992) changed the OD values into five main approaches as used into their work. 1. Giving legal authority and power to employees to act. 2. Generate frankness in communications. 3. Serve ownership of the change process and its outcomes; 4. promoting the culture of collaboration; and 5. Promoting the continues learning process. ALTRENATIVE FORMS OF ORGANIZATIONAL DEVELOPMENT. STRUCTURAL DEVELOPMENT Structure can be defined as the pattern of roles and relationships in an organization (Pass et al, 2002:412).
Organization structure is immensely becoming an alternative form of organization development. The following are characteristic of Structural Development: •Depend on the objectives of the organization. The organization will develop a structure that will suit and fit its mission statement. A mission statement is what an organization is all about and the purpose for its existence wikipideia. org [citied 05 Jan 2009]. •Structural development creates a good and timely working order. •Structural development allocates different responsibilities and functions. •Structural development depends on how large the organization is.
Organizations can either develop functional or divisional structures for them to run smoothly. Functional structures organizes its employees into different departmental functions e. g. accounts, human resource, production, purchasing and a lot more. Structures are broken down into three main areas which include market, the product and the location. An organization that is well structured works well and syncs with all macro and micro problems and it can easily adjust. TECHNOLOGICAL DEVELOPMENT Technology development is the process of research and development of technology.
The world has become so vast and dynamic and organizations have to adapt in order to survive. •Technology makes works easier; targets are easily achieved within the work environment. •Efficiency, maximise the use of the organization’ resources is achieved. •Technology is exciting. •Technological development deals with tools that can have the ability to adapt and change the organizational micro and macro environment. •Technological development can maintain large operating systems within the organization. A COMPARISON BETWEEN STRUCTURAL AND TECHNOLOGICAL DEVELOPMENT.
Structural and technological developments are among few alternatives forms of organisational development with the primary aim of developing and improving an organisation. The two have both merits and demerits depending on the type of organization e. g. small sized organization might not need the same type of technological system compared to large sized organizations. Structure also can depend on the type of organization i. e. you do not need a functional structure for a small privately owned organization when you are the only one running it. STRUCTURAL DEVELOPMENTTECHNOLOGICAL DEVELOPMENT Well definedFast
Develops over timeDevelops over time Might not meet desired outputEasy to meet output Chance of developing in other functional areasVery costly Takes time to adjust Also takes time but quick to adopt Employees have to work harder and communicate properly to reach efficiencyVery efficient Can easily be changed over time Will take time to change and money You can easily adjust output to fit with sales and costsWill be difficult to adjust output and will cost money as well Variety Ongoing learning It’s a long process and takes time to developQuick to adopt can even be developed within a short period also ongoing Task 2 2. (a) Develop systems to involve appropriate stakeholders in the introduction of change & Task 2 2. 2(b) Analyse and evaluate these systems Stakeholder Analysis Stakeholder analysis can be defined as the process of methodically collecting and examining qualitative information to conclude whose interests should be taken into consideration when building and or executing a policy or program, it is a term used in business world to describe a process where all the groups and parties that will be affected by the program or policy are identified. Steps in Stakeholder Analysis There are six major steps in the process of change: . Planning change process 2. Defining a change to be taken place 3. Distinguishing key stakeholders involved 4. Confirming the required tools 5. assemble and record the information and 6. Using the collected information Rebuilding Satyam and stake holders involved: The confession, a couple of days ago, by the chairman of one of the India’s leading software companies, to commission of financial irregularities of unimaginable magnitude. In the statement sent by former chairman to its board of directors narrates several instances of misrepresentation of financial statements over the last few years.
Clearly this is a case of compliance of corporate governance norms in form, but utter breach in spirit. It would be premature as it is an attempt to make detailed analysis of what went wrong, however, this does give rise to several issues for consideration, especially on the questions of whether there has been a failure of the existing regulations of corporate governance (that enabled the insiders within the Satyam to suppress information of this magnitude and hoodwink investors, regulators and the public for a sustained period of time) whether there was a lapse on the part regulators such as registrar of ompanies the stock exchanges and SEBI in probing further for any red flags, and more importantly independent directors and auditors were truly oblivious of the wrongdoings by the top management, unfortunately it severely hurts the interests of all its stakeholders, Stakeholders in a process are actors (persons or organizations) with a vested interest in the policy being promoted. These stakeholders, or “interested parties,” can usually be grouped into the following categories investors, creditors, employees, clients, government, debtors, bank, share holders, suppliers Analysing Stakeholder Characteristics and its Usefulness
The stakeholder analysis includes features such as knowledge regarding change or program, interests vested regarding change or program, position for or against the change or program. Policymakers and managers always find this stakeholder analysis as tool to identify the key actors and help them to assess their knowledge, interests, potential positions and alliance and importance regarding the change or program. This allows policymakers and managers to communicate more effectively and efficiently with key stakeholders and to gain maximum support for the given change or program.
Stakeholder analysis is always conducted before a change or program is implemented to help and support the policymakers and managers to detect and act to prevent potential misunderstandings about the given change or program. When this detailed stakeholder analysis and other key methods and tools are used in implementation process, the given change or program is more likely to achieve its final result that is successes System to involve appropriate stakeholders: (Re-health. com,LacpolicytoolkitforHSR_EN2. df on 08/02/2009) Here in my system to involve appropriate stakeholders had used Bottom-up approach or system. Bottom-up system is a system which involves all the concerned stakeholders from bottom to top level in organizations hierarchy. A special care has been taken to ensure that all the stakeholders are involved in all related change process or program from starting till end i. e. , from planning till implementation and successes of a plan or change. The Bottom-up system or approach is also called as open-ended system or approach because it llows all the concerned stakeholders to offer their opinions and suggestions through different ways like questionnaire, interviews and research. In other words bottom-up or open-ended system or approach offers more appropriate method of accomplishing the levels of adjustments, organizations believe that they need this approach or system to bring themselves back with their environment. Task 3 2. 3(a) Develop and adapt appropriate models for change & Task 3 2. 3(b)Plan the implementation process and outcomes
The first step in managing any type of organizational change understands how to manage change with a single individual should have essence for Desire, Awareness, knowledge ability and reinforcement. When an organization undertakes an initiative that change only happens when the employees who have to do their jobs differently can say with confidence: I have the desire, awareness, ability, knowledge and reinforcement to make this change happen. (www. change-management. com (sited on 05/02/2009) THE RECYCLING MODEL (RCM) Model for Change Phase 1:preparing for change
The main task in front of everybody who is involved directly and in directly with the company is to bring the company back to its normal functioning way and bring back the confidence within its employees, investors creditors, debtors, suppliers and share holders regarding the stability and functioning of the company and retaining all its clients. Employees have to learn soon that they have to help themselves to retain their lost glory and have prove others that a personal fraud cant break giant like Satyam and the company will prove back again what they are. Phrase 2: Managing Change
The main task in front of Government who is the major stake holder in the company, now is to appoint new Board of directors with due consultation with other share holders and after proper consultation of their profile. Have to change its present Charted Accountants and Auditors, because fraud of such a magnitude cannot happen without the help of its Board of directors and its accountants. Review company’s financial statements for past couple of years and present the correct picture of its financial position to all the concerned stake holders have to be more Transparent this time.
As far as reports are concerned company has more of receivables than of payments, thus it’s a positive sign in this economic crisis. Involve employees ideas in decision making process of the company, this will build a sense of confidence within the employees and ask them to be ready in this point of time for a salary cut if required for few months. Ask all the members of the company to concentrate on the pending projects of the company thus will help the company to retain its image(21 projects are in process), appoint an investment banker to have an expertise hand on all the investment related tasks of the company.
The last option in front of the company is to ask the government for an immediate financial bailout if required. Phrase3. Reinforcing Change DEGREE OF INFLUENCE pertaining to concerned stakeholders High influence Low Influence A Stakeholders whose actions can affect the project’s ability to meet its objectives and who stand to gain much from their actions. The change should ensure that their interests are totally represented in the organization.
Overall impact of the change will require good relationships to be developed with these stakeholders. (Directors & employees) B Stakeholders who stand to lose or gain meaningfully from the change BUT whose actions cannot affect the change to meet its final results The change should ensure that their interests are totally represented in the organization, stake holder involved are (General public& Distributors) C Stakeholders whose actions can affect the change to meet its objectives BUT who do not stand to lose or gain much from the change.
There might be a minimum risk; and will have to come out with tools to monitor and manage the risk, stakeholders involved are (Government Customers & Clients) D Stakeholders who do not stand to lose or gain much from the change AND whose actions cannot affect the change to meet its objectives This doesn’t require any monitoring and informing of progress and thus is of low priority. They are unlikely to be involved in change activities or involved in change management. stakeholders involved are ( Creditors & Current suppliers)
Taking over at a very crucial time, the new Board of directors and the new CEO of Satyam Computers have to meet the customers in couple of days to explain to them the entire unfortunate events and seek their confidence. They have to issue a statement addressing employees conveying the message regarding that we will now be a better company and that we shall soon be a successful case study of how organizations have turned over a new leaf, and tell them that we will be meeting many of our big & old customers personally.
Apologise on behalf of the new leadership team for the uncertainty and inconvenience that this incident has caused to all the related stakeholders and their families. They have to ensure increased focus on transparency at all levels, integrity and ethical functioning. The new leadership ship have to meet the employees onsite and in these sessions, the company should explain to them what happened and articulate the actions that are been taken to retain their confidence in the company.
A SWAT team, consisting of Satyam veterans and all the related expertise tasks have to be formed to steer Satyam through this Challenging phase, the team should represents all customer facing, and to check such type of incident should not happen once again in the future. From the above few ideas and with the support of a strong customer base and committed universe of 53,000 employees the company will surely bounce back and once again will be called as a Dream Company to be work for and to get the Work done by.
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