HUMAN RESOURCE MANAGEMENT

SUBMITTED TO :
Prof. Sukhada Waknis
TOPIC : CHANGE MANAGEMENT
DATE : 09-03-09
GROUP MEMBERS
PRADNYA BHALERAO C-03
ROHAN JADHAV C-16
RAKESH LALWANI C-19
RASHMIKA PATIL C-27
PRACHI PITALE C-29
SATISH RAJPAL C-30
CHAITALI SWAMI C-36
PRATIKSHA RANE C-42
JAYASHREE PRABHU C-43
Introduction
Dynamic World
Frequent changes
Human Efforts required
"Change" is:
to give a different position, course, or
direction to
to make a shift from one to another
to undergo a modification of
to undergo transformation, transition or
substitution
"Manage" is :
to handle or direct with a degree of skill or
address
to exercise executive, administrative and
supervisory direction of

CHANGE MANAGEMENT
Change Management is a structured process
that will cause proposed changes to be
reviewed for technical and business readiness
in a consistent manner that can be relaxed or
tightened to adjust to business needs and
experiences.
Managing change
Understanding the potential effects of a
change
Each possible reaction be anticipated and
managed
Challenges of Changes
Involves new procedures
Leadership - changing the running of an
organization from a command and control
nature of management to the nurturing and
motivational nature of leadership.
Focus - making business choices to bring
alignment and focus to the organization.


Commitment - creating commitment to the
future of the enterprise throughout the
organization.
Resistance- Resistance is a complex entity that
directly affects the outcomes of change, both
positively and negatively.

FORCES FOR CHANGE
Digital Convergence
Principles of Change
1. Challenging emotions should be greater than
positive emotions.

2. Change only happens when each person makes a
decision to implement the change.

3. Confidence of getting tough any where.

Twelve Principles of Change
4. Truth" is more important during periods of change and
uncertainty than a good news


5. People who work are capable of doing much more than
they are doing.

6. The intrinsic rewards of a project are often more
important than the material rewards and recognition.

Contd
Contd
7. Dont force change on anyone


8. The change process must be linked to business and
performance goals

9. The change process involves both organizational and
personal participation

Eight steps to successful change
-John P. Kotter

Increase urgency
Build the guiding team
Get the vision right
Communicate for buy-in
Empower action
Create short-term wins
Don't let up
Make change stick
Increase urgency - inspire people to move, make
objectives real and relevant.

Build the guiding team - get the right people in place
with the right emotional commitment, and the right mix
of skills and levels.

Get the vision right - get the team to establish a simple
vision and strategy, focus on emotional and creative
aspects necessary to drive service and efficiency.

Communicate for buy-in - Involve as many people as
possible, communicate the essentials, simply, and to
appeal and respond to people's needs. De-clutter
communications - make technology work for you rather
than against.

Empower action - Remove obstacles, enable constructive
feedback and lots of support from leaders - reward and
recognise progress and achievements.

Create short-term wins - Set aims that are easy to achieve - in
bite-size chunks. Manageable numbers of initiatives. Finish
current stages before starting new ones.

Don't let up - Foster and encourage determination and
persistence - ongoing change - encourage ongoing progress
reporting - highlight achieved and future milestones.

Make change stick - Reinforce the value of successful change
via recruitment, promotion, new change leaders. Weave
change into culture.

KURT-LEWINS CHANGE MODEL
UNFREEZE
CHANGE
REFREEZE

Kurt Lewins model of change
Stage Characteristics Organizational impact
Unfreezing
People in the organization
made aware of
problems/performance gap
and need for change
This diagnosis stage is often driven
by a change agent
Changing
People experiment with new
workplace behavior to deal
with needed change
This intervention stage features
specific training plans for managers
and employees
Refreezing
People employ new skills
and attitudes and are
rewarded by organization
Changes are institutionalized in the
corporate culture

Industrial Credit and
Investment Corporation of
India
Background
Since the mid 1980s- ICICI diversified into areas
like merchant banking and retailing
In 1987- ICICI co-promoted India's first credit rating
agency, Credit Rating and Information Services of
India Limited (CRISIL), to rate debt obligations of
Indian companies.
In 1988- promoted India's first venture capital
company to provide venture capital for indigenous
technology oriented ventures
In the 1990s- diversified into different forms of asset
financing like financing for non-project activities,etc
In 1991- ICICI and the UTI set up India's first
screen-based securities market
In 1992- tied up with J P Morgan of the US to
form an investment banking company
In 1990s-, took over ITC Classic, Anagram Finance
and merged the Shipping Credit Investment
Corporation of India (SCICI) with itself to develop
retail business
ICICI also entered the insurance business with
Prudential plc of UK.
ICICI known for its quick responsiveness to the
changing circumstances
Objectives of ICICI Bank
assist in creation, expansion and
modernization of enterprises
encourage and promote the participation of
private capital, both internal and external
take up the ownership of industrial
investment
expand the investment markets.

Major Change
In May 1996, K.V. Kamath replaced
Narayan Vaghul, CEO of India's leading
financial services company ICICI

Kamath identified the main problem as the
company's ignorance regarding the nuances of
lending practices in newly opened sectors like
infrastructure.

The change program was initiated within the
organization

Organization changed - from a development bank1
mode to that of a market-driven financial
conglomerate.


Organization Divided In Groups

Infrastructure group (IIG)

Oil & gas group (O&G)

Planning and treasury department (PTD)

Structured products group (SPG)

Effects of change

A majority of the work along with a lot of
good talent shifted to the corporate center
An ex-employee remarked, "The way to get
noticed inside ICICI after 1996 has been to
attach yourself to people who were heading
these departments
These groups were seen as the thrust areas
and if you worked in the zones it was difficult
to be noticed

Change-resistance at ICICI

Some of the people who thought did
not fit in this set-up were quick to
leave the organization.


Operations focus on customers
ICICI set up three new departments,

1) Major client group (MCG)

A staff of about 30-40 people
Handled top 100 customers of ICICI



2) Growth client group (GCG)

A staff of about 60 people
Looked after the needs of mid-size companies

3) Personal finance group

Result of these changes
Complaints against these changes put in
continued and ICICI was blamed for not
putting in adequate systems in place to
develop the right people.

The feedback process - was also questioned

In many cases the appraisal scores were
same but the bonus amount was not
Imparting New Skills to Existing
Employees
Training programmes and seminars were
conducted

Overseas training programmes.

Introduced a two-year Graduates'
Management Training Programme (GMTP)
ICICI also reviewed the compensation
structure in place.

Two types of remuneration were
considered

A contract basis which would attract risk-
takers.
A tenure-based compensation which
would be appealing to employees who
wanted security.
Results
By 2000, ICICI had emerged as the second
largest financial institution in India with assets
worth Rs 582 billion.

The company had eight subsidiaries providing
various financial services.
Five S Implementation..
Five S is one of the basic tenets of lean
Manufacturing.

It originated in Japan as a work-environment
enhancing measure, but the Japanese believe
this visually-oriented exercise is useful not just
for improving the physical environment, but
also for improving Total Quality Management
(TQM) processes
Five S are.
seiri (sorting out)

seiton (systematic arrangement)

seiso (spic-n-span)

seiketsu (standardise) and

shitsuke (self-discipline)
In the first step (sorting out), individual owners sort
their belongings into needs and wants.
This is followed by making a systematic layout of the
workplace, specifying the storage areas and deciding
where to put each item, right from files and
documents down to the stapler and pins.
The third phase (spic-n-span) monitors whether the
earlier steps (S1 and S 2).
Next is to standardise the policies and rules.
Finally, it is self-discipline that is required to sustain
Five S


Outcomes..

Best advantage is that Five S could be easily followed
by everybody from the "peon to the president.
ICICI company claims to had saved Rs 7.5 crore.
Five S had contributed generously, making up 50 per
cent of the savings.
The lower rung employees boast of tracing
documents in record time just 30 seconds.
By 2000, it had half a million retail bank account
holders. That number skyrocketed in the next few
years; and it had 10 million retail bank account
holders by 2004.
ICICI Bank claims to be the number one credit card
company in the country with 2.5 million cards issued
in less than five years.
Emptying out filing cabinets and drawers and
retaining only what was absolutely essential due to
which freed about 10 per cent storage space.
In December 2000, ICICI Bank was
merged with Bank of Madura (BoM)

ICICI Bank was nearly three times the size of BoM
Staff Strength: ICICI - 1,400
BOM - 2,500

The working culture at ICICI and BoM were quite
different

Bank Of Madura ( BOM ) Industrial Credit and
Investment Corporation of
India (ICICI)
management concentrated on
the overall profitability of the
Bank

management turned all its
departments into individual
profit centers and bonus for
employees was given on the
performance of individual
profit center rather than
profits of whole organization

CHANGE
The company appointed consultants Hewitt
Associates to help in working out a uniform
compensation and work culture and to take
care of any change management problems.
'POST-MERGER' EMPLOYEE
BEHAVIORAL PATTERN

PERIOD
EMPLOYEE BEHAVIOR
Day 1 Denial, fear, no improvement
After a month Sadness, slight improvement
After a Year Acceptance, significant
improvement
After 2 Years Relief, liking, enjoyment,
business development activities
MANAGING HR DURING THE ICICI-
BoM MERGER

Areas Of HR Integration Focussed On :
Employee communication
Cultural integration
Organization structuring
Performance management
Training
Employee relations

By June 2001, the process of integration
between ICICI and BoM was started.

According to a news report, "The win-win
situation created by.HR initiatives have
resulted in high level of morale among all
sections of the employees from the erstwhile
BoM."

CHANGE MANAGEMENT
AT GODREJ
NEED FOR CHANGE
Indian economy opened to global competition
Godrej group was in a Quandary
No exposure to competition or new
technology
Entered into two alliances
P&G
GE
NEED FOR CHANGE
Entire distribution of Godrej transferred to
P&G
1995-Break-up of the joint venture between
Godrej & P&G
Post breakup Godrej devoid of distribution
system
Rebuilding exercise
1995-TQM


CHANGE
Switch from a family-run business to a
professionally managed company
Changed the earlier model of management
hierarchy
Adopted a participative management model
team spirit
employee improvement programmes.
"Many Indian companies
have increased their
emphasis on training
tremendously. I think it is
absolutely essential to
spend a lot of money on
training and continuous
improvement. In our group
every employee has to
undergo at least five days of
training a year."
Adi Godrej, Chairman
Godrej Group

TQM
1995-TQM Awareness programmes conducted
for all employees
Objective
Driving force
Maximize quality and minimize costs.
Total employee involvement, total waste
elimination and total quality control

KAIZEN
Japanese technique of continuous
improvement
Increase in employee involvement and
morale.
Significant savings
Flexible
360-Degree Evaluation
Assessment
Unbiased feedback to the employee
Self development
Economic Value Added Training (EVA)
2001-Introduction of EVA
Extensive training program for managerial and
officer levels
Training regarding decision making of
investments and trade-offs between the
income statement and the balance sheet.
Stern Stewart, New York based management
consultancy


GALLOP-Godrej Accelerated Learning
Leadership and Orientation Programme
2002 -structured and organised induction-
training programme
Objective to nurture the new recruits into
leaders and dynamic performers
The trainees were rotated in four departments
other than their primary department including a
compulsory sales stint.
Mandatory rotation helped the trainees to get a
hands-on experience to understand the market
Spark - Train The Trainers

2002-purpose was to equip the managers to
become successful coaches

GIL, in association with a Delhi-based HR
consultant, conducted several workshops to
mould the managers into coaches

E-Gyan

2002 -E-Gyan was the e-learning initiative


Transform traditional training methods of
workshops and sharpen the intellect of the
employees by self- learning initiatives

Structural changes within HR policies

The HR divisions have suddenly become more
buoyant & are looking forward to the
participation of new joinees

Encouragement of more participation of new
joinees in the decision making process.

Bedhadak bolo
Switching from a family-run business to a
professionally managed company, the
management has once again embarked on a new
exercise to change the outlook of the company.
Godrej changed its existing logo and came out
with a new logo.
A completely new corporate campaign was
designed to convey this new look to the outside
world.
RESULT
Awarded The Best Employer 2007-08 by
global human resources management and
outsourcing company, Hewitt Associates.
Following EVA implementation, operating
performance has improved significantly
All the businesses improved their
performance

Change,
Diversification &
Development in
Spree of Diversification
OLD BUSINESS
FOCUSED ACTIVITY
NEW BUSINESS
FOCUSED ACTIVITY

TOBACCO
Farmer relationships
Brand Building
Marketing
Distribution
FOODS
Manufacturing expertise
Brand Building
Sourcing ,Distribution
Farmer relationships
HOSPITALITY
People management
Customer service
Brand Building
INFOTECH
Technology management
People management
Institutional marketing
TRADING
International marketing
Forex management
Sourcing
RETAIL
Brand Building
Distribution ,Markets
Customer service
Sourcing
PAPER
BOARD
Institutional marketing
Manufacturing expertise
INTERNATIONAL
TRADING
International markets
Farmer relationships
Technology management
Forex management
PRINTING &
PACKAGING
Merchandizing
Institutional marketing
GIFTS, GREETING
CARDS AND
ACCESSORIES
Marketing
Distribution
Manufacturing expertise
Customer service
CONCLUSION
BIBLIOGRAPHY & WIBLIOGRAPHY
www.google.com
www.imcrindia.com
www.wikipedia.com
www.change.godrej.com
BUSINESS WORLD , 2002
Organisational Theory, Design, and Change
- BY Gareth Jones


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