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Designing an Intervention for DABUR and how to evaluate the effectiveness hIncreasing \Positive attributes[ within actual organisation

Lecturer: Report by : DR Lindsay Oades Prerna Joshi

Student no :3721978.

Executive Summary:
This report represents a proposed organizational intervention approach on Dabur, a leading FMCG in India to improve on its organizations capability to assess its problems and resolving hindrances to increase its performance in the Indian retail industry, with its vision to become the top five retail group operations. The intervention revolves around the key components including, company re-structuring, Scenario building, goal alignment and management of objectives, organisational learning and high performance systems. Further the evaluation discusses the expected consequences while the intervention plan is implemented and the change management would bring a competitive advantage for Dabur, assisting it to improve on its internal and external relati onship facilitating a positive organisation.

Table of Contents

INTRODUCTION: ................................ ....................... Error! Bookmark not defined. Organisation development and Positive Organization: Error! Bookmark not defined. DABUR, A Company Prospective: .............................. Error! Bookmark not defined. Company¶s key strengths: ................................ .......... Error! Bookmark not defined. Concepts of Intervention: ................................ ............ Error! Bookmark not defined. DESIGNING INTERVENTION: ................................ ... Error! Bookmark not defined. PHASE 1: Restructuring ................................ .......... Error! Bookmark not defined. PHASE 2.Scenario Building ................................ .... Error! Bookmark not defined. PHASE 3: Management by Objectives and Goal Alignment .. Error! Bookmark not defined. PHASE 4: Formation of organizational learning and High Performance (HPS) systems. ................................ ................................ .. Error! Bookmark not defined. EVALUATION: ................................ ............................ Error! Bookmark not defined. Conclusion: ................................ ................................ . Error! Bookmark not defined.

The rapid changes in current competitive environment in today¶s organizations have brought the attention and concern towards the concept of Organizational development (OD). In today¶s dynamic and global market, organizations are striving to sustain and gaining a competitive advantage as keys for its survival and successare striving, where the organizations are struggling to achieve equilibrium between the tensions raised by customer expression, employee expression, strategy expression and technology expression. In order to help the organizations achieve effectiveness by improving employee productivity, greater wellbeing, improving quality of product, concerns to improve quality of life; behavioural sciences and practices have been adopted to facilitate the state of Positive organization scholarship and Organizational developmen t(Bartunek , J. M. 1988). The movement towards an organizational development focuses on what and how to adapt the right business practices so that organization¶s capability to assess and resolve its problem can be improved; that would directly impact in improving company¶s financial performance and satisfaction of its members there by promoting the organization to escalate to an increased level of functioning (Stoner, 1978). Dabur is one of the leading Indian companies; bagging the fourth position in FMCG industry with its turnover of $ 2 billion (2008-2009), has attained significance in consumers¶ segments of health, personal, home care and food products. The products are expanded to major 50 countries worldwide, through its wholly owned subsidiary. Over the years, the company has built up its str ong brand equity in the retail market and its strengths lies in the strong employee management, innovative product portfolio and reward acquisitions and its corporate social responsibility. The company is striving towards achieving the number one position in FMCG industry, strengthening the competitive advantage and retaining its relationship with its stakeholders. This report gives an overview about a proposed OD intervention, which can facilitate change management and strengthen the organizations relation ship to its physical environment, industry and stake holders, thereby bringing up the competitive advantage. The key components of this intervention includes structural change, scenario building, goal alignment and formation of organizational learning that would operate at individual , team and organizational level, that would bring a paradigm shift in company¶s corporate culture to a more positive organization culture. Thus, the report aims to bring upon system changes, improving on relationships and facilitate positive organization scholarship in context to the large market environment.

Organisation development and Positive Organization:
According to Burke, W. W. (1994),Organization development (OD) can be defined as a planned and systematic approach, designed to improve the efficiency and effectiveness of operation in an organization. The underlying principle behind designing these changes relies on the human potential and the organ ization dynamics. In the pursuit of attaining the organizational goals, the series of changes is directed to deliberately collaborate the participation efforts of the management and integration of individual goals so as to establish an internal environment characterizing positive human behavior of openness, mutual trust, collaboration and encouraging organization wide interactions. Organization development interventions are systematic and planned approaches to change contributing to the effectiveness of the system and developing human potential and employee wellbeing (Yeo, R. ,2003). Intervention constitutes an array of behavioral activities that are carried out in collaboration of all members, thereby finding ways and implementing in order to improve working towards individual and organizational goals. It would also improve on the willingness of its members to face organizational challenges and working towards resolving the problems and improve on interpersonal relations, increase in level of trust, building up gratitude, openness and better understanding of self/others, and meaning communication in the process of planning the organization change(Kim, D. H. 1993). OD would not only collaborate the experience and expertise within organization but also to work closely on the problem solving techniques and create positive responses that would lead to organization wide success. Thus, this powerful change strategy would enable the organization to co pe with the external competitive environment (Beckhard, R. ,1975).

DABUR, A Company Prospective
DABUR is India¶s renowned FMCG company that has grown into the largest in personal & health care products, with its niche interest in Ayurvedic medicines that has not only covered Indian market but also is being exported to almost 50 countries around the globe. The consumer care division and Consumer health division are the two major strategic business units along with its three subsidiary groups known as Dabur International, Dabur Foods and Dabur Nepal that contributes to the company¶s overall performance in the FMCG market. In 2007 -2008, company generated the revenue of $2 billion, racing towards achieving its position in being the top ten companies in India. Being the pioneer in the FMCG market, Dabu r is known to have its strengths in terms of revenue, ownership, customer focus, quality management, passion and encouragement on team building and individual excellence. Dabur has got its established business valu es, which are based on the guiding principles of its founder , Dr SK Burman, who always believed in the meaningfulness of living by comforting others. This force the company to follow ethical business practices in its percolated down to its functioning and operations. The geniuses lies within its punch line ³dedicated to the health and wellbeing of every household´. The company basis its niche excellence in sourcing out raw

materials from nature that also acts as an inspiration and its commitment to produce maintaining the ecological balance (Dabur, 2010).

Company s key strengths:

y y y y


Consumer focus: In order to fulfill the needs of consumer, we have better understanding of their needs and offer them the best product. Innovation: Its saga of success lies in its continuous exploration and developing new products and following processes. Ownership: Family driven business, which accepts the accountability and responsibility of every strategic move that company makes. Employee development: company focuses its interest around employee development, training , rewarding and achieving excellence Passion to succeed: The Company¶s determination lies in focusing on what they do and deliver the best that¶s is required, committing to its objectives and result driven processes. Teamwork: Mutual trust and the transparency are the foundation .

However, Dabur in regard to its operational paradigm is coping with its little area of concerns at this point of time. Following are the targets of the organization to be achieved through organizational development :
y Retaining premier position: The short term revenues are generated through focusing on short term projects that would just gather short term revenues and long term activities are ignored( such as building human potential and knowledge), though Dabur, has built relationship with consumers but they are required to design proactive solutions to align to long term objectives of consumer. Selecting on innovative product: The tension between the revenues generation department and o rganizational strategies, on the basis of technological advancements has hampered the selection process for the right innovative product. In fact, the increasing competition and switching moods of customer have intensified the pressure on future planning p rocess. Focus on Specialization: The increased pressure on revenue generation and the highlighted focus on consumers needs in comparison to voice of employee, employees were bound to be rotated across different departments and there is a shift from building strategic expertise in individual areas is causing the diffusion of expertise. Rewards and Recognitions: The reward system at Dabur primarily focus on the individual performance and evaluated as individual contribution, where there is an ur gent need to introduce team based rewards resulting in institutionalization at the company level. Knowledge sharing and inter group collaboration:





The multiple groups and projects have caused replication of many common avoidable tasks because knowledge sharing at Dabur is very limited to the immediate group, whereas there should a formal system that would encourage people to share the µbest practices ¶ through increased interaction and intergroup coordination.
y Brand positioning and public relations: The management at Dabur has worked hard to align as much close to consumer and market prerequisites at an organization level. The brand positioning also enco urages the performing talents f rom educational institutes to join and work for them that does in a way add to employee pride a nd selfactualization.

Concepts of Intervention:
According to French and Bell (1990), Intervention refers to the set of structured and systematic activities that engages its different organization units(group or individual) in the sequence of tasks that directly or indirectly relates to organizational improvement. After the diagnosis of problems the key areas to be worked upon, intervention introduces the ways and action plan in order to seek information knowledge for organizational development on the whole. This concept of organizational improvement aims to provide a paradigm shift from bad to good and dysfunctional to functional while improving on the employee health, building towards positive organization culture and antici pated future environment (Salisbury, M. 2001). The change intervention can include change in design, introduction of new systems, restructuring, feedback and research methods, reorganization, changing technology or even people(DiBella, A., & Nevis, E. 1998)..

(Source: Beer, M. (1980)., Change and development in Organisation)

Designing an Intervention: PHASE 1: Restructuring

Matrix structure is one of the organizational structure that combines the features of a functional structure that has got employee segmentation according to their respective departments enhancing sharing of knowledge within each function and divisional structure that further segments employees on the basis of profit centersetc, where each division has got its separate chain of resources (HRM,2010). Currently,Dabur is experiencing a division structure that doesn¶t support its knowledge competent employees to share their tacit knowledge and professional experiences. The company¶s structure is a decentralized structure and initiates innovation and flexibility though, but it loses its importance of knowledge sharing within divisions. Thus it is very much recommended the company should undergo a restructuring process where each function can be assigned a manager so that there is much interaction and possible sharing of common objectives (Beer, M. 1980)..

(Source:HRM(2010), Organisational structure)

PHASE 2.Scenario Building

This technique basically involves conducting a survey on employee¶s attitudes at different, personal, social and organizational level and a report is propagated with the findings. The feedback sessions are organised in order to discussin g solutions to the perceived problems. Number of questionnaires is generated in order to promote further efforts for change. Thus, this technique provides the basis for improving and changing work related relationship between superior and subordinates, further measuring the post effects of those changes. The data is collected and the management and members of organization are required to submit questions for this planned survey. Then feedback conferences are organised where the problems are informed, action plan are formulated and programs to improve team effectiveness are initiated(Patton, M. Q. ,1990).

According to Survey Research Center, the following are the steps involved in Survey Feedback approach: Step1: The top management and the other appropriate members of the organization are engaged in preliminary planning of questionnaire for the survey. Step2: The developed questionnaire is circulated among the whole staff of the organization. Step3: The summarised data by the staff , is fed back to working teams usually that begins at the top of the hierarchy, percolating down to successive levels in the organisation. The team manager shares the results with its team in its interest in organization in whole.

Step 4: The data representation is carried out by the manager of each work team and diagnosis to the problems are discussed. Action plan to resolve and improve are developed, usually in consultation of the third party consultant who act as a process consultant, conducting several interlocking meetings considering survey data on an organizational level. Another purpose that is fulfilled through this method is improving the work relationship between superior and subordinate and also the various areas of improvement and opportunities are discovered.

(Source: Patton, M. Q. (1990). Qualitative evaluation and research methods)

The scenario thus designed, would address the following issues : To enhance employee productivity and encouraging the status of wellbeing and valued. Organisational, team and individual learning. Collaborative working and resource allocation. Management by objectives and Goal Alignment.

y y y y

PHASE 3: Management by Objectives and Goal Alignment

According to Peter Duck(1954)in his book 'The Practice of Management', Management by objectives is a systematic approach that enables the management to make best possible use of available resources and allocate them in order to achieve goals. This focuses on improving organizatio nal performance and aligns goals to the objectives throughout the organization. This enables employees to identify their potential and align to the objectives adhering to the

completion timelines, tracking the activities and directing with the feedback. Th e residing principle behind this philosophy is to make sure that every, member in the organization is well aware of the aims and objectives of the organisation as well as their own job responsibilities and job role. MBO system involves its managers to empower its employees in order to implement plan of action to achieve their objectives, which will be directly related to organisations performance (Moynihan, D. P. 2005).

PHASE 4:Formation of organizational learning and High Performance (HPS) systems.

Learning organization is an organization that features its learning process not at just individual level but at the whole organization level by continuous nurturing its employees, results are created and contributes to company¶s transformation (Argyris, C., &Schön, D. A. (91996).The collaborative and collective accountability by total employee involvement results in directing the change towards shared set of principles(Raybould, B. 1995). According to Peter Vaill, the companies¶ seeking for excellence and c ontinual innovation in their work systems should have their leaders to minimize the layering of structure so that an organization culture is created that emphasises and encourages the employee participation as well as communication across organisation that exhibits the energy deployment and zeal in order to undertake the task to work upon, built intergroup relationship and fosters positive organization behaviour. This would embark excitement, cheerfulness, gratitude, respect, mutual trust and display enthusiasm that would have a direct or indirect impact on employee morale and productivity at work( Yeo, R. ,2003). Vail also insists that values determine organization¶s excellence and performance. Peter Senge,(1990)³The fifth Discipline - The art and practice of learning organisation´,1st edn, Double day publishing group, NY ´ describes how five important factors are responsible for a learning organisation essential for existence:




Team learning- For an organisation to facilitate the learning process, teams the fundamental units should learn first. The learning capability of the team is always higher than the individual learning, as it encourages interaction and learning from each other¶s experience and pointing out problems, working towards resolving and receiving feedback. System thinking- System thinking is a process of interactions between different parts in organisation and not as a single working unit. It is a continuous process of considering and working towards the whole system and intergroup relationships within subsystems. It is the corner stone in an effective organisation as it aims to achieve common objectives and goals . Personal mastery- Personal mastery is the continuous process of deepening self¶s vision and assessing individual proficiencies and refining the skills until desired proficiencies are attained. This contributes in individual confidence building and inculcates the state of selfesteem. Shared Vision- It inculcates the positive behaviour of working collective working towards the common goal and striving to convert the vision into


reality. Condition of shared vision is possible only when employees are empowered and they do what they think they should do, not like they instructed to do. Mental Models- Every individual has got unique set of assumptions and beliefs about the world, which is subconscious far away from set theories or standards. If the scenario of interaction and exchange of ideas coexist between the members of a group, their individual mental models can be transformed and combined into one team mental model.

EVALUATION:  Scenario building will enable employee and management at Dabur to understand and evaluate the perception level of team members towards their job responsibility, job profile and opportunities, immediate supervision, fellow colleagues etc and process information from the management people about their working philosophies, policies, role and responsibility, challenges in team integration and in regard to our business model, product and support functions(Senge, P. M. 1993). Considering various aspects on ³what we were and what we have achieved so far´, reviewing the marke t competition. Further, once the factors responsible for desired change are redefined, the challenges that the organization would face along with the realistic possibilities can be laid down.The intervention would encourage sharing of ownership, induce empowerment, sharing success experience, value of employees and enhance individual performance and quality empowered work teams.

With the implementation of MBO, in a knowledge based enterprise like Dabur, where the employee is competent and knowledgeable and there is a need of building employee management , develop leadership skills and capture the tacit knowledge and creativity. The individuals in the organization can be given specific targets and they can well interpret what their organization is trying to accomplish, their role towards achieving the goals and what are the expectations from them at the company level. The company¶s objective in retaining premier position in the industry can be achieved by making members actively participate in setting action plan and take responsibility against each action. 
Conclusion:  The process of change in Dabur includes different qualitatively demands and tension pressures created by the expression of customer, employee, strategy, competitive environment. The transition from present to future is referred to be the process of transformational change, where the vision is g iven utmost importance that creates future perspective and directs the members of organization towards achieving it. The proposed intervention collaborate the action plan for the structural, system, process or behavioural change, where continuous monitorin g by the management is needed. Transformational change at Dabur is needed to balance its innovation and stability along with developing broad strategies to mobilize its members to move into future. In order to achieve goals, managers need to plan the chang e and emphasis should

be laid to improve human potential, human relationships, increasing opportunity, wellbeing, and organization performance. The company needs restructuring, and create an environment to align system dynamics to the human dynamics. The intervention strives towards bringing up coherent organization identity, synergy from organization culture, capacity from resources, form from structure and philosophy from practice working towards strategizing, valuing, energizing, serving and improving positive organization . Goal alignment is treated as a virtual entity and workflow reviews are to be carried out in day to day basis, deploying an objective of tracking town individual performance against the set standards to achieve goals(Lawler, E.E. and Porter, L.W. ,1967),. Restructuring and Scenario building will facilitate exchange of ideas, in order to help immediate problem solving, encouraging bonds within team and organization relationship development. As an organization, when its relationship will grow, it will bring upon challenges and a platform for transitional change for its stakeholders can be created. The successive plans at all levels can bring thementoring process, identification of talent for higher responsibility, self-development enhancing leadership and attainment of employee satisfaction, thus change management can be aligned to growth strategy by creating a dialogue between current experience scenario and the future planned objectives promoting continuous improvement at a cross functional level within this organization.

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