S.D.M.

College of Engineering & Technology,

Dharwad.

Department of Management Studies

“Change & Knowledge

Management Assignment”

Submitted To: Prof. Bharathi Sunagar

Submitted By: Rahmat attar (2sd08mba27)

INTRODUCTION TO CHANGE MANAGEMENT:

Change management is a structured approach to transitioning individuals, teams,

and organizations from a current state to a desired future state. Change management (or
change control) is the process during which the changes of a system are implemented in a
controlled manner by following a pre-defined framework/model with, to some extent,
reasonable modifications.

Types of Organizational Change

• Strategic changes

• Technological changes

• Structural changes

Changing the attitudes and behaviors of personnel:

There are many models in understanding the transitioning of individuals through

the phases of change management and strengthening organizational development
initiative in both government and corporate sectors. They are
1. ADKAR Model
2. Unfreeze-Change-Refreeze
3. Kübler-Ross
4. Formula for Change
5. PCI (People Centered Implementation)

Some of the Potential issues concerning the successful Change deployment

process:

The House (Of Quality) Needs Foundations Underestimating the need for a
support structure can be a big mistake in the process of deploying Lean or Six Sigma. It is
important to first assess the gap between your current state and the future, desired state.
This activity produces a list of things that need to change and, in addition, those that need
to be positively reinforced. In the change process, this is not an either/or proposition.
Both need to be done. As an example, if one has the fortune of having an army of talented
Black Belts but a broken Champion support system, the program can fail in a heartbeat.
Again, if both are present and yet, executive support is absent, then that can lead to
disastrous results for a program as well.
INTRODUCTION TO TATA MOTORS :

Tata Motors Limited is India's largest automobile company, with consolidated

revenues of Rs.70,938.85 crores (USD 14 billion) in 2008-09. It is the leader in
commercial vehicles in each segment, and among the top three in passenger vehicles with
winning products in the compact, midsize car and utility vehicle segments. The company
is the world's fourth largest truck manufacturer, and the world's second largest bus
manufacturer.
.
Tata Motors is equally focussed on environment-friendly technologies in emissions
and alternative fuels. . It has developed electric and hybrid vehicles both for personal and
public transportation. It has also been implementing several environment-friendly
technologies in manufacturing processes, significantly enhancing resource conservation.

CHANGES AT TATA MOTORS :

Tata Motors marks the biggest turnarounds in the history of Indian automobile
manufacturing industry which happened in 2001. This success story of Tata Motors can
be entirely attributed to the timely change adopted by the Tatas and the then M.D Ravi
Kant who led the change.
Today Tata Motors ranks as the world’s fifth-largest manufacturer of medium
and heavy trucks—it has a 61 percent domestic market share in this segment—and has
taken the number-two position for sales of passenger vehicles in the Indian market. It has
also built a significant global presence, both through sales efforts in overseas markets
(such as the former Soviet republics, the Middle East, South Africa, South Asia, and
Turkey) and through acquisitions such as the takeover of Daewoo’s commercial-vehicle
business in South Korea and the purchase of a 21 percent stake in the Spanish bus
manufacturer Hispano Carrocera. Tata Motors was predominantly a manufacturer of
commercial vehicles, and that is a very cyclical business.

Phase 1: The key objectives were to move to a system of market pricing and to reduce
their break-even point, both of which called for major reductions in costs—variable costs,
fixed costs, and interest costs. They used many approaches to cost reduction, including
bench-marking our rivals. For example, they took apart vehicles to see what they could
do to modify the products and to lower costs. They went in for e-sourcing, and today they
are the largest company doing e-sourcing in India and one of the leading ones in the
automobile industry worldwide. The whole organization really got together to ensure that
the bleeding stopped. One of the major drivers of success at Tata Motors Ltd. (TML) was
its ability to fully exploit information technology to drive business goals and reduce cost.
The company was an early adopter of CAD and CAM systems.

Phase 2: The concentration in phase one was indeed on cost reduction, but while this was
going on they thought about taking action in areas that would have an impact during the
other phases. For phase two, the concentration was on improving product quality and
upgrading product features so as to make the products more competitive. They also
started work on new products that would be required by the market after three to five
years.They also started looking at opportunities for inorganic growth.

Phase 3: In phase the concentration was on starting work on international markets by

identifying key markets and segments and developing a comprehensive plan to improve
Tata Motor’s competitive position so as to get a respectable market share. They also
started looking at opportunities for inorganic growth. International diversification was
such a key part of the transformation strategy. Tata Motors wanted to leverage the
market-leading products internationally.

TATA NANO

SWEEPING CHANGE
Tata Nano, the new model introduced by Tata motors, hailed as "the people's
car", is an amazingly cheap car. With a price tag of US$ 2500, Tata Nano is indeed an
affordable middle class family car. Tata Nano is a dream comes true for an average
Indian. His /her ideas about owning and driving a car will become a reality soon. An
analysis of the new car seems necessary as it is bringing mobility to the masses in an
efficient and economic manner.

RELEVANCE OF THE MODELS OF CHANGE

Kurt Lewin theorized that there are three stages to change:

• Unfreezing
Old ideals and processes must be tossed aside so that new ones may be
learned. Often, getting rid of the old processes is just as difficult as learning new ones due
to the power of habits. Just as a teacher erases the old lessons off the chalkboard before
beginning a new lesson, so must a leader help to clear out the old practices before
beginning the new. During this part of the process you need to provide just a little bit of
coaching as they are unlearning not learning and a lot of cheerleading (emotional support)
to break the old habits.
• Changing
The steps to the new ideals are learned by practicing:
What I hear, I forget.
What I see, I remember.
What I do, I understand.
Although there will be confusion, overload and despair, there will also be hope,
discovery, and excitement. This period requires a lot of coaching as they are learning and
just a little bit of cheerleading due to the affect of Arousal Overloading.
• Refreezing
The new processes are now intellectually and emotionally accepted. What has been
learned is now actually being practiced on the job. Just a little bit of coaching is required
and a lot of cheerleading is used to set up the next change process. . . remember it isc o n t
i n u o u s process improvement!

CHANGE IN WORKFORCE AND CULTURE

1.Formulation of a clear strategic vision: In order to make a cultural change effective a

clear vision of the firm’s new strategy, shared values and behaviours is needed. This
vision provides the intention and direction for the culture change

2.Display Top-management commitment: It is very important to keep in mind that culture

change must be managed from the top of the organization, as willingness to change of the
senior management is an important indicator (Cummings & Worley, 2005, page 490).
The top of the organization should be very much in favour of the change in order to
actually implement the change in the rest of the organization. De Caluwé & Vermaak
(2004, p 9) provide a framework with five different ways of thinking about change.

3.Model culture change at the highest level: In order to show that the management team is
in favour of the change, the change has to be notable at first at this level. The behaviour
of the management needs to symbolize the kinds of values and behaviours that should be
realized in the rest of the company. .

4. Modify the organization to support organizational change: The fourth step is to

modify the organization to support organizational change.

5. Select and socialize newcomers and terminate deviants: A way to implement a culture
is to connect it to organizational membership, people can be selected and terminate in
terms of their fit with the new culture.

6.Develop ethical and legal sensitivity: Changes in culture can lead to tensions between
organizational and individual interests, which can result in ethical and legal problems for
practitioners. This is particularly relevant for changes in employee integrity, control,
equitable treatment and job security.