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Change Management Assignment-Thanu

Change Management Assignment-Thanu

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Thanujah Muhunthan

Executive Summary
This report contain analysis on three different areas namely bureaucracy, stakeholder management and change management. Section 1 contain introduction to the organisation, including basic introduction to the organisation, description about mission of the organisation, strategic focus and continuous change and its impact. Section 2 contains information on bureaucracy; more specifically this chapter will provide information on the economic impact of bureaucracy , the strengths and weaknesses of the bureaucratic organization and Various forms of the organizational development Section 3 will contain the information about stakeholder management which will provide details on the stakeholders who are affected by the change and also provide a useful framework to deal with all types of stakeholders appropriately. Section 4 will contain the information on change management in IOM and it will guide the organisation to stabilise the change in a better way.


Table of Contents
Page Introduction ......................................................................................4 Mission and strategic focus of IOM ………...........................................................5 IOM Change process…………………………………………………………………………................ Bureaucratic Management………………………………………………………………………........... 6 8

Organizational development ………………………………………………………………… ......................................9 Stakeholder analysis........................................................................11

Stakeholders who will be impacted by the proposed structural review ...........................................................................................................14
Change management........................................................................16 Appropriate models and plan of implementation process in IOM .....19 Implementing process of structural review in IOM………………………………………...22 References…………………………………………………….. …………………………………….23


Section 1 Introduction
A brief introduction about the organization considered helps to understand the issues discussed in this report such as change, bureaucratic organizations and forms of organisational development. The report covers the background and reason behind the change and to what extent the change is necessary in the present economic context. As mentioned in the executive summary the bureaucracy has been defined and strengths and weaknesses of bureaucratic organizations are discussed. The comparison between various forms of the organizational development have been discussed and suitability to IOM has been assessed.

International Organisation for Migration
Established in 1951, IOM is the leading inter-governmental organization in the field of migration and works closely with governmental, intergovernmental and non-governmental partners. With 127 member states, a further 17 states holding observer status and offices in over 100 countries, IOM is dedicated to promoting humane and orderly migration for the benefit of all. It does so by providing services and advice to governments and migrants. IOM works to help ensure the orderly and humane management of migration, to promote international cooperation on migration issues, to assist in the search for practical solutions to migration problems and to provide humanitarian assistance to migrants in need, including refugees and internally displaced people. The IOM Constitution recognizes the link between migration and economic, social and cultural development, as well as to the right of freedom of movement. IOM works in the four broad areas of migration management:
• • • •

Migration and development Facilitating migration Regulating migration Forced migration.

IOM activities that cut across these areas include the promotion of international migration law, policy debate and guidance, protection of migrants' rights, migration health and the gender dimension of migration.


Mission IOM is committed to the principle that humane and orderly migration benefits migrants and society. As the leading international organization for migration, IOM acts with its partners in the international community to: • • • • Assist in meeting the growing operational challenges of migration management. Advance understanding of migration issues. Encourage social and economic development through migration. Uphold the human dignity and well-being of migrants.

IOM’s Strategic Focus 1. To provide secure, reliable, flexible and cost-effective services for persons who require international migration assistance. 2. To enhance the humane and orderly management of migration and the effective respect for the human rights of migrants in accordance with international law. 3. To offer expert advice, research, technical cooperation and operational assistance to States, intergovernmental and nongovernmental organizations and other stakeholders, in order to build national capacities and facilitate international, regional and bilateral cooperation on migration matters. 4. To contribute to the economic and social development of States through research, dialogue, design and implementation of migration-related programmes aimed at maximizing migration’s benefits. 5. To support States, migrants and communities in addressing the challenges of irregular migration, including through research and analysis into root causes, sharing information and spreading best practices, as well as facilitating development-focused solutions. 6. To be a primary reference point for migration information, research, best practices, data collection, compatibility and sharing. 7. To promote, facilitate and support regional and global debate and dialogue on migration, including through the International Dialogue on Migration, so as to advance understanding of the opportunities and challenges it presents, the identification and development of effective policies for addressing those challenges and to identify comprehensive approaches and measures for advancing international cooperation. 8. To assist States to facilitate the integration of migrants in their new environment and to engage diasporas, including as development partners. 9. To participate in coordinated humanitarian responses in the context of inter-agency arrangements in this field and to provide migration services in other emergency or post-crisis situations as appropriate


and as relates to the needs of individuals, thereby contributing to their protection.1 10. To undertake programmes which facilitate the voluntary return and reintegration of refugees, displaced persons, migrants and other individuals in need of international migration services, in cooperation with other relevant international organizations as appropriate, and taking into account the needs and concerns of local communities. 11. To assist States in the development and delivery of programmes, studies and technical expertise on combating migrant smuggling and trafficking in persons, in particular women and children, in a manner consistent with international law. 12. To support the efforts of States in the area of labour migration, in particular short term movements, and other types of circular migration. IOM Change process- The background for change in today’s economic context. At the beginning of his term, the Director General set himself three clear priorities for action; (a) the enhancement of member state ownership in the organization (b) the reinforcement of collaborative partnerships and (c) the strengthening of staff development. Under the third point, the DG has introduced several initiatives to help him assess and understand the needs and expectations of IOM staff, including regional meetings/consultations, a global staff satisfaction survey and an independent review by an external consultant. One of the more consistent messages emerging out of these initiatives is the need for a review of organizational structures to ensure that IOM has the capacity to continue to full fill its mandate in the light of evolving internal and external circumstances. In April 2009, after a series of implemented initiatives aimed at collecting feedback from all levels of IOM staff as well as IOM Member States, the Director General reached a solid and reliable basis to move forward with conducting a review with a view to making necessary changes to the structure of the organization. In light of this, the Structure Review Team was formed with the mandate to provide the Director General with recommendations on the future IOM organizational structure keeping the following two key aspects in mind: (a) Consolidation of structures and resources in the Field, and (b) Coherence of structures in Headquarters.


The SRT functions independently and is composed of IOM staff members representing diversity in areas of experience, expertise, cultural sensitivity and regional perspective. One of IOM's core strengths is its decentralized field-based structure. While it is not the aim of the SRT to re-centralize IOM activities, the team recognizes the need for the current decentralized structure to be clarified, streamlined and strengthened. This framework illustrates the relationship between the vision, mission and strategy of the organization and the organizational structure, skills, processes and resources required to deliver on that vision, mission and strategy. The present economical context shows the depreciation of values of currencies in third world countries and collapse of industries and companies. Now the global economy has started recover again and emerging with profitable results of the businesses. As far as IOM is concerned regardless of the global trend in economy the organization has a necessity of utilizing the resources economically, efficiently and effectively in order to ensure value for money of the donor funding and even to secure potential donations. The consolidation of structures and resources in field and coherence of structures in head quarters leads to avoid duplication of resource utilization and addresses the following issues too. (a) More effective strategy formulation, policy planning and implementation, (b) More clearly defined roles and responsibilities of administrative units, (c) increased accountability at both corporate and individual levels, (d) Stronger internal communication and better mechanisms to capture and manage IOM's institutional knowledge and experience, and (e) Enhanced capacity to cooperate with and build partnerships with relevant international institutions including for resource mobilization. In order to achieve the cooperates strategic objectives more efficiently and effectively with value for money the organisation is planning to have a continuously improved change of its management style and organisational structure. The management believes that this will provide better value for the donor’s funding and provide best possible service for its beneficiaries. On the other hand this will improve transparency, openness, accountability etc.


Section 2

Bureaucratic management
The industrial revolution that started in the late eighteenth century, lead to the demise of small local craft workshops in villages and to the growth of large centralized factories in towns. These 'new forms of working' created immense challenges for the ways in which work was organized and managed. As mentioned above the present structure of IOM is decentralised however bound and controlled by laid down policies and procedures which are some how ensures the uniformity and consistence applies in implementation of plans and projects including in general administration and resource management. Structurally IOM has a Tall and matrix structure which has many divisions communication layers and need for more coordination amongst various divisions. The cross functional nature of various divisions collectively requires a communication string which is time consuming and causes delay in response. The rigidity caused by this nature demands a delegation of power and coherence nature of head quarters and field level structures. Strengths of Bureaucratic organizations are as follows, -Higher level of consistency maintained in decisions and implementation of projects. The control exerted by the head quarters or top level management ensures that the systems and delivery of services to the beneficiaries are in line with the laid down procedures. -The major and important final decisions made by top management, considering various perspectives of organization as a whole avoiding sub optimisation of divisional performances. In this aspect the powers and interests of various stakeholders also taken care in delivering the final out come. -Better cost control and management- as a not for profit perspective the IOM enjoys the better management of resources by centrally managed resource management office which consists of accounting, budgeting, and treasury management units. Even though it controls the speed of the resource disbursement of donor funds it ensures that the funds are utilised for the correct purpose in the correct way at the correct time. Weaknesses of Bureaucratic organizations are as follows, -The higher level of bureaucracy leads to lack of innovation and development in the organization, which leads to loss of competitive advantage in certain circumstances such as where the organisation have to keep on improving to maintain the position in the market. In the case of IOM the innovative thinking of migration management thematic concept development will help the organization to maintain and build the higher reputation and goodwill amongst the donors as the leading migration management intergovernmental organization. -The higher the structure and communication ladder impedes the speed of communication and decision making, which leads to loss of bids and

proposals submissions to various donor governments and speed of response in emergency situations. As a result the image of the organization in the field level will get tarnished as labelled as slow responder. -The motivation of employees drops because of the lower level of delegation of duties and responsibilities and lower empowerment. The rule and regulations will control the organizational responsiveness in field contexts which has its own constrains with regard to local political, legal, economical, migration systems and existing local players in the industry.

Briefly speaking, in this report we are discussing not persons but systems of social organization. We do not mean that the post-office clerk is inferior to anybody else. What must be realized is only that the strait jacket of bureaucratic organization paralyzes the individual's initiative, while within the capitalist market society an innovator still has a chance to succeed.

Organizational development “Organization Development is an effort planned, organization-wide, and managed from the top, to increase organization effectiveness and health through planned interventions in the organization's 'processes,' using behavioural-science knowledge.” - Beckhard, “Organization development: Strategies and Models”, Reading, MA: Addison-Wesley, 1969, p. 9. Today's organizations operate in a rapidly changing environment. Consequently, one of the most important assets for an organization is the ability to manage change -- and for people to remain healthy and authentic. Consider the following definition of OD: “Organization Development is the attempt to influence the members of an organization to expand their candidness with each other about their views of the organization and their experience in it, and to take greater responsibility for their own actions as organization members. The assumption behind OD is that when people pursue both of these objectives simultaneously, they are likely to discover new ways of working together that they experience as more effective for achieving their own and their shared (organizational) goals. And that when this does not happen, such activity helps them to understand why and to make meaningful choices about what to do in light of this understanding.” - Neilsen, “Becoming an OD Practitioner”, Englewood Cliffs, CA: PrenticeHall, 1984, pp. 2-3. The necessity arises for organizational development to maintain the organizations presence in the present context, which is fast changing, dynamic, complex environment effectively. According to the

environmental impacts the strategies formulated by the organization should be compatible to maximise the outcome of those strategies. There are various forms of organizational development such as planned and structured organizational development, Emergent organizational development and opportunistic organizational development. Planned and structures development involves setting the objectives of the development in advance, conduct a environmental analysis which identifies strengths, weaknesses , opportunities and threats prevails in the environment, the political climate of the host country, the economic considerations, law enforcement and rules and regulations of the country and industry, technological availability and access to skills and knowledge, the competitive nature of the industry and the entry barriers assessment etc , strategic options assessed for feasibility , acceptability and suitability , strategic choice made and implement the change for the development. This gives the advantage of informed decision making and planned predicted outcomes of the change. However it has the main drawback of time consuming and reactive nature of the organizational development, which results in delayed response to the environmental changes and demands. The emergent organizational development is that an organization responds and adjusts its strategies and objectives according to the prevailing environmental conditions and the changes concern will be incremental, rather than step by step or drastic nature. This has the advantage of going along with the external changes where the organization does not contradicts with the externalities and adopts the changes which ever necessary. However the main draw back of this is the out come is unpredictable and the direction the organization develops cannot be planned in advance. But this is outweighed by the advantages of immediate response to the environmental changes such as faster market entry decisions, speeder modifications of marketing mix, even for the non profit organizations speculating the market change and acting accordingly will help absorbing more and more donor funding opportunities and moving on to new sectors. The opportunistic behaviour involves the faster decision made to exploit the opportunities arises and outweigh the threats by speculative movements of the organization, such as penetrating pricing strategy in anew market where the organization seeking for market development, for non profit organization speedy response to the emergency situations and mass and quality responsiveness. The advantage of this type includes grabbing the opportunities arising in the organizational context , create, maintain image and secure potential donor funding. The only draw back is


the decisions might create out comes with negative impacts and tarnish the image and financial position of the organization.


Section 3 Stakeholder Analysis Stakeholder Management is an important discipline that successful people use to win support from others. It helps them ensure that their projects succeed where others fail. Stakeholder Analysis is the technique used to identify the key people who have to be won over. IOM then use Stakeholder Planning to build the support that helps IOM succeed. The benefits of using a stakeholder-based approach are that: • IOM can use the opinions of the most powerful stakeholders to shape projects at an early stage. Not only does this make it more likely that they will support IOM, their input can also improve the quality of project • Gaining support from powerful stakeholders can help IOM to win more resources - this makes it more likely that projects will be successful • By communicating with stakeholders early and frequently, IOM can ensure that they fully understand what IOM are doing and understand the benefits of project - this means they can support IOM actively when necessary • IOM can anticipate what people's reaction to project may be, and build into plan the actions that will win people's support. How to use the tool: The first step in Stakeholder Analysis is to identify who stakeholders are. The next step is to work out their power, influence and interest, so IOM know who IOM should focus on. The final step is to develop a good understanding of the most important stakeholders so that IOM know how they are likely to respond, and so that IOM can work out how to win their support - IOM can record this analysis on a stakeholder map. After IOM have used this tool and created a stakeholder map, IOM can use the stakeholder planning tool to plan how IOM will communicate with each stakeholder.


The steps of Stakeholder Analysis are explained below: 1. Identifying Stakeholders: The first step in stakeholder analysis is to brainstorm who stakeholders are. As part of this, think of all the people who are affected by work, who have influence or power over it, or have an interest in its successful or unsuccessful conclusion. The items below show some of the people who might be stakeholders in job or in projects: • • • • • • • The public Employees Management Donors Beneficiaries The press Analysts

Remember that although stakeholders may be both organizations and people, ultimately IOM must communicate with people. Make sure that IOM identify the correct individual stakeholders within a stakeholder organization.


2. Prioritize Stakeholders: IOM may now have a long list of people and organizations that are affected by work. Some of these may have the power either to block or advance. Some may be interested in what IOM are doing, others may not care. Map out stakeholders on a Power/Interest Grid on our free template as shown in figure 1, and classify them by their power over work and by their interest in work.

Figure 1 Someone's position on the grid shows IOM the actions IOM have to take with them: • High power, interested people: these are the people IOM must fully engage and make the greatest efforts to satisfy. • High power, less interested people: put enough work in with these people to keep them satisfied, but not so much that they become bored with message. • Low power, interested people: keep these people adequately informed, and talk to them to ensure that no major issues are arising. These people can often be very helpful with the detail of project. • Low power, less interested people: again, monitor these people, but do not bore them with excessive communication. 3. Understanding key stakeholders: IOM now need to know more about key stakeholders. IOM need to know how they are likely to feel about and react to project. IOM also need to


know how best to engage them in project and how best to communicate with them. Key questions that can help IOM understand stakeholders are: • What financial or emotional interest do they have in the outcome of work? Is it positive or negative? • What motivates them most of all? • What information do they want from IOM? • How do they want to receive information from IOM? What is the best way of communicating message to them? • What is their current opinion of work? Is it based on good information? • Who influences their opinions generally, and who influences their opinion of IOM? Do some of these influencers therefore become important stakeholders in their own right? • If they are not likely to be positive, what will win them around to support project? • If IOM don't think IOM will be able to win them around, how will IOM manage their opposition? • Who else might be influenced by their opinions? Do these people become stakeholders in their own right? A very good way of answering these questions is to talk to stakeholders directly - people are often quite open about their views, and asking people's opinions is often the first step in building a successful relationship with them. IOM can summarize the understanding IOM have gained on the stakeholder map, so that IOM can easily see which stakeholders are expected to be blockers or critics, and which stakeholders are likely to be advocates and supporters or project. A good way of doing this is by color coding: showing advocates and supporters in green, blockers and critics in red, and others who are neutral in orange. Stakeholders who will be impacted by the proposed structural review. Donors- The main donors of IOM who are various governments and clusters of countries such as European union, European commission of humanitarian office and other private donors. These sector of


stakeholders are more concern about the fund disbursements and implementation of projects in fair manner without waste of resources and for the right purposes. By the structural review it is ensured that there is no over consumption of resources with regard to administration of project implementations and project development. Governments- The host Governments of the project implementation and beneficiary sector in the areas of capacity building of migration management systems, border management trainings, counter trafficking awareness creation, labour migration initiatives and assistance to internally displaced people in emergency and refugee assistance. Since the donations of most of the donors are specifically channelled to certain host communities , it is vital to IOM to act a the Intergovernmental organization in connecting the relationships of various governments and sectors. Beneficiaries- This consists of people who are internally displaced, affected communities by natural disasters, wars and political crisis, vulnerable population for lower income generation and lack of livelihood competencies, and even the benefitting governments. Host communities- The communities which the affected population is part of. It is benefitted by and affected by the IOM project implementation of infrastructure development and community livelihood and capacity development. Structural review enhances the ability and capacity of the staff structure in effective and efficient delivery of services to the target beneficiaries. Employees and staff of IOM in various levels of management and operations in head quarters and field level- Structural review impacts this category in positive as well as negatively. Positively it empowers certain levels and creates a more flexible authorization matrix, more delegation of duties and job enrichment results in high motivation and commitment, which beneficial to the organization. Negatively it affects the staff and top management who preserved and held high rank powers and decision making authorities by forcing them in rotate their responsibilities and reduction of responsibilities through delegation of duties but the accountability still remains the same since the duties are supervised or overseen by them. This slightly affects the motivation and moral of them.


Section 4

Change management
Here are some rules for effective management of change. Managing organizational change will be more successful if IOM apply these simple principles. Achieving personal change will be more successful too if IOM use the same approach where relevant. Change management entails thoughtful planning and sensitive implementation, and above all, consultation with, and involvement of, the people affected by the changes. If IOM force change on people normally problems arise. Change must be realistic, achievable and measurable. These aspects are especially relevant to managing personal change. Before starting organizational change, has to clarify: What do we want to achieve with this change, why, and how will we know that the change has been achieved? Who is affected by this change, and how will they react to it? How much of this change can we achieve ourselves, and what parts of the change do we need help with? These aspects also relate strongly to the management of personal as well as organizational change. Do not sell change to people as a way of accelerating 'agreement' and implementation. 'Selling' change to people is not a sustainable strategy for success, unless IOM aim a failure in future when IOM least expect it. When people listen to a management high-up 'selling' them a change, decent diligent folk will generally smile and appear to accede, but quietly to them, they're thinking, Instead, change needs to be understood and managed in a way that people can cope effectively with it. Change can be unsettling, so the manager logically needs to be a settling influence. Check that people affected by the change agree with, or at least understand, the need for change, and have a chance to decide how the change will be managed, and to be involved in the planning and implementation of the change. Use face-to-face communications to handle sensitive aspects of organisational change management (see Mehrabian's research on conveying meaning and understanding). Encourage managers to communicate face-to-face with their people too if they are helping IOM manage an organizational change. Email and written notices are extremely weak at conveying and developing understanding. If IOM think that IOM need to make a change quickly, probe the reasons is the urgency real? Will the effects of agreeing a more sensible timeframe really be more disastrous than presiding over a disastrous change?


Quick change prevents proper consultation and involvement, which leads to difficulties that take time to resolve. For complex changes, refer to the process of project management, and ensure that IOM augment this with consultative communications to agree and gain support for the reasons for the change. Involving and informing people also creates opportunities for others to participate in planning and implementing the changes, which lightens burden, spreads the organizational load, and creates a sense of ownership and familiarity among the people affected. See also the excellent free decision-making template, designed by Sharon Drew Morgen, with facilitative questions for personal and organizational innovation and change. To understand more about people's personalities, and how different people react differently to change, see the personality styles section. For organizational change that entails new actions, objectives and processes for a group or team of people, use workshops to achieve understanding, involvement, plans, measurable aims, actions and commitment. Encourage management team to use workshops with their people too if they are helping IOM to manage the change. IOM should even apply these principles to very tough change like making people redundant, closures and integrating merged or acquired organizations. Bad news needs even more careful management than routine change. Hiding behind memos and middle managers will make matters worse. Consulting with people, and helping them to understand does not weaken position - it strengthens it. Leaders who fail to consult and involve their people in managing bad news are perceived as weak and lacking in integrity. Treat people with humanity and respect and they will reciprocate. Be mindful that the chief insecurity of most staff is change itself. See the process of personal change theory to see how people react to change. Senior managers and directors responsible for managing organizational change do not, as a rule, fear change - they generally thrive on it. So remember that people do not relish change, they find it deeply disturbing and threatening. People’s fear of change is as great as own fear of failure. Responsibility for managing change The employee does not have a responsibility to manage change - the employee's responsibility is no other than to do their best, which is different for every person and depends on a wide variety of factors (health, maturity, stability, experience, personality, motivation, etc). Responsibility for managing change is with management and executives of the organisation - they must manage the change in a way that employees can cope with it. The manager has a responsibility to

facilitate and enable change, and all that is implied within that statement, especially to understand the situation from an objective standpoint (to 'step back', and be non-judgemental), and then to help people understand reasons, aims, and ways of responding positively according to employees' own situations and capabilities. Increasingly the manager's role is to interpret, communicate and enable not to instruct and impose, which nobody really responds to well. Change must involve the people - change must not be imposed upon the people Be wary of expressions like 'mindset change', and 'changing people's mindsets' or 'changing attitudes', because this language often indicates a tendency towards imposed or enforced change (theory x), and it implies strongly that the organization believes that its people currently have the 'wrong' mindset, which is never, ever, the case. If people are not approaching their tasks or the organization effectively, then the organization has the wrong mindset, not the people. Change such as new structures, policies, targets, acquisitions, disposals, re-locations, etc., all create new systems and environments, which need to be explained to people as early as possible, so that people's involvement in validating and refining the changes themselves can be obtained. Whenever an organization imposes new things on people there will be difficulties. Participation, involvement and open, early, full communication are the important factors. Workshops are very useful processes to develop collective understanding, approaches, policies, methods, systems, ideas, etc. See the section on workshops on the website. Staffs surveys are a helpful way to repair damage and mistrust among staff - provided IOM allow people to complete them anonymously, and provided IOM publish and act on the findings. Management training, empathy and facilitative capability are priority areas - managers are crucial to the change process - they must enable and facilitate, not merely convey and implement policy from above, which does not work. IOM cannot impose change - people and teams need to be empowered to find their own solutions and responses, with facilitation and support from managers, and tolerance and compassion from the leaders and executives. Management and leadership style and behaviour are more important than clever process and policy. Employees need to be able to trust the organization. The leader must agree and work with these ideas, or change is likely to be very painful, and the best people will be lost in the process.


Change management principles 1. At all times involve and agree support from people within system (system = environment, processes, culture, relationships, behaviours, etc., whether personal or organisational). 2. Understand where IOM/the organisation is at the moment. 3. Understand where IOM want to be, when, why, and what the measures will be for having got there. 4. Plan development towards above No.3 in appropriate achievable measurable stages. 5. Communicate, involve, enable and facilitate involvement from people, as early and openly and as fully as is possible.

Appropriate models and plan of implementation process in IOM Change can be implemented through various models such as Business process re-engineering (BPR), Hope and Hope theory of competition in third wave, Learning organization approach (LOA), the Kaizen approach, de-layering, downsizing etc. BPR is fundamental reconsideration and radical rethinking of organizational processes. BPR is one of the fundamental steps undertaken prior to ERP implementation. Business process reengineering analyses and suggests the structural changes. This is regarded to be very important because it helps in knowing how the organization should be customized in order to become ERP friendly. Business process reengineering is taken to conduct feasibility study and other restructuring exercises. Nothing can be done to prevent change. The best way to manage change is to adopt it. Time and again it has been proved that imposing change of any magnitude all on a sudden is not the proper way. There needs to be a proper method to bring about it. Business process reengineering is one scientific study that helps organizations largely to analyse the viability of not only ERP but any other dynamic change. IOM could adopt this model where it has an excessive concentration of unstructured communication flow and seeking for gradual, incremental improvements. By this delegation of duties, empowerment as a result faster decision making less wastage of resources such as time will



Hope and Hope (1997) outline 10 key management issues for the third wave. 1.Strategy -Cease to focus on downsizing. -Learn to think 'outside the box' and be innovative. -Trust and empower management teams to think and act strategically. -Develop core competences and avoid rigidities. -Create alliances and economic webs with suppliers and customers to lever economic value. 2.Customer value -Value propositions are of three sorts: -Product leadership (technical content and speed to market) -Operational excellence (low-cost, high-quality, service) -Customer intimacy (customisation, relationships) -Select, pursue and retain customers that can match the value proposition put forward by the firm. 3.Knowledge management -There are three sources of knowledge assets: -Human capital and competences of staff -Internally stored data and information system capability -Market and externally related such as customer loyalty, brands and network relationships -Management must retain and leverage this knowledge to gain competitive advantage. 4.Business organization -Move from hierarchies to networks and emphasise processes and teams. -Recognise the organisation as a social structure (i.e. not as a machine) and keep people informed and motivated. 5.Market focus -Cease to pursue volumes to increase profits. -Identify the worthwhile and profitable customers. -Firm's capital is relationship with the customer. 6.Management accounting -Acquire know how to analyse product, customer and service profitability.

-Use accounting to help improve processes. -Move to more relevant accounting systems. 7.Measurement and control -Avoid the tendency for budgets to constrain innovation and flexibility. -Strike a new balance between control and empowerment. -Implement a new strategic measurement system. 8.Shareholder value -Equity prices depend on future returns. -These returns depend on human and not physical assets now. -Develop measures of human capital for appraisal and reporting. 9.Productivity -Move beyond seeing productivity as return to fixed capital assets. -Create right culture, recruit right staff, provide information, empower and allow them to share in the benefits. 10.Transformation -Recognise the failings of the second-wave model: -Emphasis on productivity of physical capital -Seeing staff as costs to be minimised -Rigid command and control styles of management -Profit through cost-cutting and volume increases -Manage change to third-wave model. -Query the value of 'second-wave' management education. By adopting this theoretical model IOM addresses the above discussed 10 management issues and improves the strategic fit in to its organizational context. John Kotter's highly regarded books 'Leading Change' (1995) and the follow-up 'The Heart Of Change' (2002) describe a helpful model for understanding and managing change. Each stage acknowledges a key principle identified by Kotter relating to people's response and approach to change, in which people see, feel and then change. Kotter's eight step change model can be summarised as:
1. Increase urgency - inspire people to move, make objectives real and

relevant. 2. Build the guiding team - get the right people in place with the right emotional commitment, and the right mix of skills and levels. 3. 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. 4. 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 IOM rather than against.


5. Empower actions - Remove obstacles, enable constructive feedback

and lots of support from leaders - reward and recognise progress and achievements. 6. Create short-term wins - Set aims that are easy to achieve - in bitesize chunks. Manageable numbers of initiatives. Finish current stages before starting new ones. 7. Don't let up - Foster and encourage determination and persistence ongoing change - encourage ongoing progress reporting - highlight achieved and future milestones. 8. Make change stick - Reinforce the value of successful change via recruitment, promotion, and new change leaders. Weave change into culture. The above process such as BPR and Kotter’s eight step change model can be adopted by IOM in order to manage change with minimal resistance provided that each stakeholder group gets addressed accordingly. By addressing the key management issues in change management and to compete in third wave IOM can ensure the delivery of its services according to the specifications of the donor preferences, Value for money, budgetary control, and benefit to the society and the host communities along with satisfying the Governments. Implementing process of structural review in IOM. Step 1- Making people to move-which has been already addressed and started by the headquarters by the Director general via collecting feedback and suggestions from All IOM managers and staff. Step 2- Build a guiding team- the formation of Structure review team of IOM consist of officials from various levels and capacities and from various parts of the world. Step 3- Formation vision and objectives- Consolidation of structures and resources in the field and increased coherence and integration among the structures in HQ. Step 4- Communicate and involve people- implement as buy in rather than selling off the strategy. Step 5- Empower actions- obstacles removed and constructive feed backs encouraged by rewarding and recognition. Step 6-Set short term targets comprises of parts of strategic plan of this review. Step 7-Encourage ongoing change and progress reporting and highlight achieved milestones. Step 8-Embed change in to culture of IOM.


CONCLUSION The change needs addressed in the section 1 and discussed the strengths and weaknesses of the bureaucratic organizations. The various alternative forms of Organizational development has been analysed and I recommend that IOM should adopt the planned strategic change with its structural change along with addressing the interests and implications of and to its stakeholders and involving them in to the process of change and development and make it participatory and make it successful. The process models discussed such as BPR, Kotler’s 8 step change model IOM could implement the structural review change and enjoy the benefits of it.


1. Senge, Peter; C. Otto Scharmer, Joseph Jaworski, Betty Sue Flowers

(March 2004). Presence. Cambridge, MA: SoL. ISBN 0974239011. OCLC 231987197.
2. Argyris, Chris (Autumn 1982). (PDF)Organizational Dynamics,.

http://www.monitor.com/binarydata/MONITOR_ARTICLES/object/92.pdf. Retrieved on 2006-12-29.
3. Tucker, Kate. "The Milan Approach To Family Therapy: A Critique".

Psychiatry On-line (Priory Lodge Education Ltd.). 4. Hiatt, J. 2003. Change Management: the people side of change. Learning Center Publications, Loveland, CO. 5. Greenfield, A 2008. The 5 Forces of Change - A Blueprint for Leading Successful Change, Management Books 2000, England. 6. Clampitt,P. & Williams, M.(2007)Decision Downloading, MIT Sloan Management


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