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Course: MBA(IV SEM) LC Code: 3305 Subject Code: MU0018

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Q1. What is change management? Explain the importance of change management. Ans1. Change Management: Change is any variation/alteration/transformation, a passing phase from one state or form to another, for example, a change of countenance; a change in habits or principles. Change implies dissatisfaction with the old one and an urge for the new one. Change can be perceived in two ways-changes as intrinsic and continuous, and extrinsic and discontinuous to the organisation. Change Management is a systematic approach of dealing with change, both from organisation and individual perspective. Change Management can be seen from two perspectives, one is from those implementing change and the other is the recipients’ perspective. Your view on change management varies if you are an executive who is demanding a change, versus an employee on whom the change is executed. Change management plays an important role in any organisation, as the task of managing change is not an easy one. When we say managing change, it means making changes in a planned and systematic fashion. With reference to the IT projects, the change means the versions of a project and managing these versions properly. Changes in the organisation can be initiated within the organisation or externally. Technology has compressed the distances across organisations. Internet and web technologies have given rise to honest corporations. Automation, mechanisation, manufacturing systems affects at both micro and macro levels of the organisation. These technological advancements are examples of an external factor that impacts on change within the organisation. How the organisation responds to these changes is important. Managing these changes come under change management. Reactive and proactive responses to these changes come from the organisation. Earlier, change management was an integral part of business management, but with the emergence of Information Technology (IT), it has gathered importance. Information Technology Infrastructure management is one broad term, which includes all the elements necessary to ensure smooth functioning of business processes. Good change management techniques always help businessmen to adopt new ways of doing business. Technology not only refers to machinery, equipment, and tool but is concerned with the use of information and knowledge as inputs that are transformed into final outputs. This process involves technology; hence choice of appropriate technology is a key factor for competitive edge in the new environment. Changes are brought into the system when the organisation faces challenges such as customer demands and technological updates. Change management process undergoes the following steps: 1. Identifying the need for change in an organisation.

2. you can be a good change agent. If you have good analytical skills. In organisations that have been running for a few years. So. system skills. analytical skills. dry rot sets in. Q2. Dry rot refers to decaying of timber in buildings and wooden furniture caused by fungi. Management expects to be better next year. Altering some organisational processes such as technology. write a business plan. You should change the workflow in such a manner that it should reflect the financial changes that are taking place. . and business skills. the entrepreneur thinks about the business. You should examine the financial and political impacts of the changes that can take place. The decline phase Corporate insanity is seen in this phase. performance meters to incorporate changes. An easy truth was shown in 2003 study of 1.900 professionals who helped businesses that were in trouble. Managing both production and changes in such a way that the customers and stakeholders are bonded with each other in a long run. forms a management group. many companies have their own types of programs relating to organisational development in place. Reconfigure the operations and systems in the organisation in such a manner that you get the desired financial impact. Designing the changes as per organisation’s requirement. You should have the knowledge that following of a particular process will fetch immediate financial effects and start that process so that the change process is noted by the management. Stages of Organisational Life Cycle The Start-Up phase In this phase. new services and products developing. For example: The management textbooks believe that sales grow each year but in reality it is different as a company can have both good and bad years depending on the market conditions. The company goes into the growth phase when the investor writes the check. 5. The growth phase In the growth phase. 3. List and explain the stages in organizational Life cycle? Ans2. we expect to see revenues increasing. The start-up ends for those that don't need outside funds. people skills. but doesn't know or is unwilling to change to get better results. more employees’ recruiting and so on. 4. Managing the changes in an organisation requires certain set of skills like political skills. [5]Corporate insanity can be defined as doing the same thing in same way but expecting different results. Making others to understand the need for change for the proper functioning of an organisation.

Dry rot can be reversed through the use of training as a way of injecting new knowledge and skills. · Disappearing profit margins. Some of the noticeable signs include: · Declining sales relative to competitors. · Growing of debt continuously year after year. Elaboration stage – This stage needs revitalisation. Formalisation stage – This stage has too much of red tape. The death phase About 80% of business failures occur due to the factors related to leadership control. Collectivity stage – This stage has delegation. A very good example is Lee Iacocca’s turnaround of the Chrysler Corporation. Entrepreneurial stage – This stage has a strong leadership. Table 3. The renewal phase Once the organisation starts declining. it takes remarkable leadership to get the organisation to change course. Even firms that are close to bankruptcy can overcome this adversity and nurse themselves to be financial healthy. However.The source of the below table is [7]Buccino and Associates of Seton Hall University Stiffman School of Business. 2003. without the right type of leadership. they can easily deal with it.1: Reasons for Decline Too much Debt Inadequate Leadership Poor Planning Failure to Change Inexperienced Management Not Enough Revenue 28% 17% 14% 11% 9% 8% Many organisations will not enter decline phase unless there are precise program of transformational leadership development. as reported in August 25. the organisation will go down to bankruptcy. You can also have rigorous programs to change and transform the organisation's culture. 4. This assumes that though you have enough transformational leaders to change the status quo. 3. Business Week. . 1. These are the different stages of organisational life cycle. by the time the accountants discover that the organisation is in trouble. 2. Some of the external experts have focused on the importance of organisational development as a way for preventing decline or reducing its effects. it doesn’t mean that it should continue. If senior leaders detect the symptoms of decline at early stage.

It is also known as the living-systems approach because the organisation is considered to be a learning organisation which has many feedback systems between its sub-systems. Researchers have developed various models on organisational change. · Composing of many interdependent subsystems within the organisation where change in one or more parts affects the entire system (Sisaye. The main features of this approach are as follows: · Studying of organisation in relation to the contextual environmental factors such as size. The recent approaches to organisational development and change are broadly divided into two categories: · The Top Down Approach: the classical paradigm. technology. structure. The top management will drive these areas through command and control. This approach adopts the steps (Binney and Williams. and leadership patterns (Smircich. It includes structural and technological changes and focuses on the working environment among the employees within the organisation. Here. The bottom up approach: The systems paradigm This approach deals with organisation as a system which easily gets affected by environmental changes. The basic approaches of organisational development are techno-structural approach and human process oriented approaches. The assumption here is that management should try hard to maintain change. 1997) to: · Develop a vision. sales and accounting. · Maintain top management’s determination. change occurs continuously and is considered natural when an opportunity is present and is not driven externally. · The Bottom Up Approach: the systems paradigm. etc. · Communicate the vision. · Adopt the best practice. Ans3. Explain briefly the recent approaches to organisational development and change. . 1983).Q3. It is a modern approach to manage change for human resource development. The former is related to theories of intervention into the structure and technology of the organisation. 2005). The top down approach: The classical paradigm Organisations consist of functional areas such as production. · Plan and program.Organisational development is an important mechanism that helps to impress organisation and its employees. The latter focuses on the organisational process and human participants.

Structural intervention strategies focus on and change the components of organisational systems such as the organisation and job design. Some of the change models have had relevance and existed over a span of time. According to structure model. identifying. Another way of analysing change models is to consider the external or internal forces as influencing change. and policies (Beer. and also organisational communication styles and flow of information (Beer. decision-making.. design of the organisation and systems. and interdependent. attitudes. and directing the emerging patterns of behaviour and thinking (Binney and Williams. and treatment into three groups.· Persisting organisations comprises of individuals. culture. According to process model. communicating. self organised. analysis. · Uniqueness of each organisation and respect the individuality and its need for change. successful change needs to be planned by helping people to develop process competencies. cultural interactions. · Importance of both current reality and future orientations. reward systems. · Need for both change and stability. the leader provides a clear vision and helps in the change process by facilitating. organisations should simultaneously pursue both process and structural intervention strategies in order to bring about change. interpersonal and intergroup interactions. 1980). flexible. Some of the examples are ways of planning. and structural aspects of management systems.e. People will also change by this. Another explanation of organisational change lies in an emphasis of the structure or the process. competitive environment. structures. Here. The proaction model says that explanation comes from within the organisation as actions and change by itself. systems. groups/teams. release the potential for change and not autocratic who drive changes. 1997). · Subsystems interdependency within the organisation and their influence on each other subsystem. Some of the examples include a new government policy. · Facts about the leaders showing that they are democratic i. 1980). and systems maintenance in the organisation. These strategies help to bring in team work. Some of the examples are technology. . etc. performance management systems. functions. Both process and structural intervention strategies should be simultaneously handled to guarantee effective team characteristics. and accounting control systems. Such systems allow both individual learning and social interactions. problem solving. According to systems approach. The adaptation model focuses on the role of external factors in bringing about changes in the organisation. These models are categorised based on their nature of change. cultural change. People will find new ways of organising things by this. The other features of this approach help us to understand the: · Assumptions made in any organisation are always dynamic. Process intervention strategies focus on changing people’s behaviour. successful change needs to prepare the necessary structural details and introduce them systematically.

Roles of a leader in change process: According to Senge.  Integrated models. The five dimensions are:  The aesthetic culture deals with the ideas about the change. Communication or being straight: The leader communicates directly to the people about the present and future changes and keeps the people well informed.They are:  Process-based models. The role model leader provides the confidence to manage the change process and demonstrates some of the characters which play an important role in the change process.  . Leader communicates both the good and the bad news with the people. This involves the practices that are followed around in the environment.  The political culture deals with the meaning of change and involves putting ideas into the words. Some local leaders have to transfer the vision into an action. Counselling: The leader counsels the individuals who are undergoing change and respects the individuals change by understanding their emotions.  Content-based models. This is the sensate.  The formative culture deals with the structures those are in change. This involves some ethics that have to be followed in the organisation.  The action culture involves the translations from cultural meanings into the cultural practices. They are:    Wider context: The leader has the ability to deal the changes in wider way since it is not only limited to the organisation strategy but it is spread to the team. This involves the structures around the change. ideational and idealistic culture. Some leaders have the traditional hierarchical leadership they are more formal. Empathy: The leader has the ability to see others and understand and acknowledge others for managing the change process. Discuss in brief about the role of leaders in the change process. This is the species culture.  The ethical culture deals with the standards in the change and involves the guiding of learning process. Bate has given the list of roles of leaders according to his idea of five dimensions of cultural leadership. Leader will be honest in terms of the change and the consequences of the change on the individual as well as the team. Ans4. Q4. division and the organisation. This involves the architecture of culture. Network leaders have the job of connecting different parts of an organisation that are involved in the change. This gives the ownership to that political idea of the community. Leadership occur at different locations in an organisation.

gain knowledge and the behaviours. either by means of lower prices or by providing greater benefits and service that justifies higher prices. Reframing: The leader has the ability to see the situation from different perspectives and encourages others to do in the same way. The lowest cost producer is its main aim. the organisation can develop the special strategy to meet the needs of the customers. Recognitions set a positive environment so it is necessary to give positive feedback for the individuals as well as the group when they achieve their objectives. Explain the strategies for competitive advantage. Michael Porter has given four generic business strategies that are analysed by him on his work in the competitive industry. Enable learning: The leader enables the people to learn new skills. . Even the market segments suggest the same thing. Reviewing: The leader ensure that the certain reviews are done on regular basis for the proper management process. Majority of the customers prefers the perfect product with the minimum differentiation. This helps to create solutions in order to put the situations in a coherent framework. Strategy: Cost leadership The main aim of this strategy is to provide the product with the less cost in the market. Q5. Figure 9. This often involves the product with the premium price to demonstrate the production costs and the value added features that are present for the customer needs. According to the criteria’s. He has given four strategies taking consideration of the scope of a business versus the degree of product differentiation. Usually this type of strategy is associated with the large scale industries which aim at offering the standard products with a minimum differentiation and perfect product. This will work out particularly when there is much of competition on the market.     Challenging: The leader identifies the unacceptable attitudes and behaviours and suggests for the acceptable attitudes and behaviours and maintains the comfort among the individuals and groups. The low cost leader always tries to put the discount on the products with the goal of maximising the sales. The Competitive Strategies Strategy: Differentiation These are the strategies which include the selection of one or more criteria that can be used by the customers for taking the product in the market.3 illustrates the competitive strategies. Ans: A competitive advantage is an advantage over competitors gained by offering consumers greater value. Involving: The leader encourages the individual and team to involve fully in the change process and make sure that the change is successful. The lowest cost producer will be benefited when the product rate is at minimum equal to the average price in the market. This strategy gives the clear idea about the product and what is the advantage of using this product compared to the other product in the market for the benefit of the consumer.

There are few factors that are needed for learning organisation to deal with. Strategy: Cost focus This strategy focusses on the cost of the product which is the base for the business of the organisation. This resulted in the starting of many activities like TQM (Total Quality Management) and BPR (Business Process Reengineering).  Expect the changing situations. . Need for learning organisations Many of the companies in the world focus on improving the existing products and services. There are some products. it will be very helpful if the organisation provides the product with the.Strategy: Differentiation focus This strategy aims at differentiating the product with a minimum number of target market segments. he defines Learning Organisation as "a group of people continually enhancing their capacity to create what they want to create. and innovating things to excel in the business strategy. The competitive advantage mainly depends on the rate at which the organisation can learn. less cost and the specific needs that are required for the customers. which have features that are not needed for the customers." We can define learning organisation as the organisation which has embedded the philosophies like anticipating. That time the sale will also be less since the cost is more." Also. This strategy is applicable to the special needs of the customer. The customer well in advance informs the industry for the production of the special with the needs that will be differentiated with the already existing product in the market. Ans. Learning Organisation: Senge defines Learning Organisation as the “organisation in which you cannot ‘not’ learn because learning is so insinuated into the fabric of life. They are to:  Face sudden and unexpected changes where there are no responses for the existing programmes. attitudes and organisation culture. which is not worth according to their needs. Define learning organization.  Allow the staff to respond to the customer needs in a proper way. Q6. complexity and uncertainty. There is a valid factor for the differentiation and the existing competitor products are not meeting those needs. reacting and responding to change. depending on some factors likes individual skills. Explain the need for learning organization. During that time. These programmes can be successful or a failure.