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ADVANCED
MANAGEMENT
SYSTEMS

BY

BIODUN
ADESINA

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COPYRIGHT
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Any perceived slights of peoples or organizations are
unintentional.
No guarantees of automatic success are made because
WE EXPECT OUR READERS TO BE TRUTHFUL TO
THEMSELVES AND USE THE TECHNIQUES WITHOUT
BIAS,THEN THEY WILL HAVE THE REQUIRED SUCCESS.
The author reserved the right to make changes and
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CONTENTS
1. CORPORATE AND STRATEGIC PLANNING
2. STRATEGIC MANAGEMENT TECHNIQUES
3. TOTAL QUALITY MANAGEMENT
4. MANAGING CHANGE EFFECTIVELY
5. ORGANIZATION DEVELOPMENT
6. PROCESS REENGINEERING TECHNIQUES
7. CORPORATE GOVERNANCE:EFFECTIVE
TECHNIQUES
8. MANAGING CORPORATE POLITICS
CONSTRUCTIVELY
9. SUCCESSION PLANNING TECHNIQUES
10. CORPORATE CULTURE MANAGEMENT
11. TACTICAL THINKING TECHNIQUES
12. CORPORATE PERFORMANCE ANALYSIS
13. WORK CLIMATE MANAGEMENT
14. EFFECTIVE RIGHTSIZING STRATEGIES
15. LATEST MANAGEMENT THOUGHTS

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16. MANAGING WITH COMPUTERS.

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COURSE TITLE-ADVANCE MANAGEMENT SYSTEMS

PERIOD DAY DAY DAY DAY DAY


1 2 3 4 5
9-10.30 AM OPENING Managing Managing Corporate Managing With
-Registration Change Corporate Performance Computers
-Welcome Effectively Politics Analysis
Speeches Constructively
-Course Contents
/Benefits
10.30-11.30 AM TEA BREAK TEA BREAK TEA BREAK TEA BREAK TEA BREAK
11.30-1.00PM Corporate & Organization Succession Work Climate Questions &
Strategic Development Planning Management Answers
Planning Techniques
1-2.00PM LUNCH LUNCH LUNCH LUNCH LUNCH
2.00-3.30PM Strategic Process Corporate Effective Course
Management Reengineering Culture Rightsizing Evaluation
Techniques Techniques Management Strategies Round-Up
3.30-5.00PM Total Corporate Tactical Latest CLOSING
Quality Governance: Thinking Management
Management Effective Techniques Thoughts
Strategies

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1. CORPORATE AND STRATEGIC PLANNING

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2. EFFECTIVE STRATEGIC
MANAGEMENT TECHNIQUES

CONTENTS
1. WHAT IS STRATEGIC MANAGEMENT?

2. STRATEGIC PLANNING PYRAMID

3. STRATEGIC MANAGEMENT MODEL

4. STRATEGIC Vs OTHER TYPES OF PLANNING

5. STRATEGIC PLANNING PROCESS

6. STRATEGIC PLANNING

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7. STRATEGIC ACTION

8. STRATEGIC THINKING

I. WHAT IS STRATEGIC MANAGEMENT?


The most important criteria of any organizational effectiveness is not its
operational efficiency but its ability to adapt to environmental change.
Strategic management is both a process and a philosophy for
determining and controlling the organization’s relationship to its
changing environment. As a process, it defines approaches and
techniques to help organizational management adapt to the dynamics
of today’s situations. Through the use of objectives and strategies,
strategic management endeavors to achieve efficient programmes to
accomplish the organization’s mission. As a philosophy, strategic
management changes how managers look at
competition,customers,markets,and even the organization itself. In the
public sector ,it changes its purpose for maintaining laws and order,
social and economic development, security and defence activities, its
bureaucratic system and principles. Its purpose is to stimulate
management’s awareness of the strategic implications of
environmental events and internal decisions.

Strategic management provides a fresh approach to reemphasizing


responsibilities managers and administrators has always had. This
approach has been necessitated by the rapid redefinition of the entire
political environment. Properly implemented, strategic management
permeates all major activities and decision making by raising the level
of consciousness and providing valuable insights that are otherwise
unobtainable. Overall, strategic management is the best fully
integrated approach we know of for managing change.

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Effective strategic management is characterized by:
• Clear direction and purpose;
• Objectives, goals and strategies consistent with the
organizational mission;
• Continuous monitoring of internal and external environment;
• Integration of operating budgets, profit or development plans
with the strategic plan;
• Continuous monitoring of progress with revision of plans and
programmes as appropriate;
• Creation of strategic atmosphere that fosters a team spirit;
• Commitment of necessary resources and the development of
systems to provide necessary management information.

The resources and effort required to develop a strategic management


philosophy in many organization could be quite significant. It is a major
commitment, which should not be undertaken lightly. Thoughtful consideration
is given not only to the operational requirements, but particularly to the
demands placed upon the organization’s personnel. It will require training and
educating managers and administrators to the new way of making
decisions.And,it most certainly will require that some changes take place in the
existing order of things.

The costs, as material as they could be, must be weighted against the benefits
we have observed in an organization. These benefits from strategic management
include:
• Recognition of potential strategic implications of every major action and
event;
• Better understanding of the organization and its industry or sector;
• More effective decision making;
• Improved objectives, goals and strategies;
• Reduced resistance to change through proper implementation;
• Enhanced communication and mutual understanding.

2.STRATEGIC PLANNING PYRAMID


To realize the full benefits of strategic management, the organization must
blend together three seemingly distinct elements into an integrated process.
These elements are:

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Strategic Planning
Strategic planning is the core of strategic management. It refers to the process
of formulating the organization’s mission, objectives and goals and developing
strategies to achieve them. strategic planning creates a conceptual framework
that incorporates the external environment, characterized by risk, change and
uncertainty, into the organization’s long-term decisions;

• Strategic Action
Strategic action is the implementation phase of strategic management. It
refers to managing the implementation of the strategic plan and translating
the strategies into actions. This requires linking the longer term strategies to
the shorter term measures like budgets and motivating individuals to
accomplish them;
• Strategic Thinking
Strategic thinking represents an integration of strategic planning and
strategic action. We believe strategic thinking must be achieved before any
organization can complete the evolutionary process needed for a sound
strategic management system.

STRATEGIC PLANNING PYRAMID

Strategic
Thinking

Strategic Planning

Strategic action

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The strategic Planning pyramid was used as the graphic medium to show
how these three elements are related. The reasons for choosing a three-
dimensional figure are that each face touches every other face and each face
depends on other faces for stability. This most closely portrays how strategic
management is envisioned. It can be seen as a process that has height, depth
and breadth with a high degree of interdependent between its elements

3.STRATEGIC PLANNING MODEL

Strategic
Planning

Strategic
Pushing Going organizing
Thinking Through Beyond environmental
Constraints scanning

Use of Position
Strategic Assessment
Thinking
Strategic
Information mission, objectives
, goals develop.
System
Strategic strategy
Translation formulation
& Motivation Plan
Development
Linking
Budgeting to controlling
strategy
Strategy implementation

Strategic
Action

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The model shows that the first phase of strategic management is strategic
planning, which is made up of six major topics, namely:
• Organizing;
• Environmental scanning;
• Position Assessment;
• Mission, objectives,goals development;
• Strategy formulation; and
• Plan Development.

The next phase of strategic management is Strategic Action, which concentrate


s on implementation and monitoring the strategic plan.

The last phase of strategic management is Strategic thinking which effectively


integrates the plan into daily decision-making.

Although the size of each “ slice of the pie” appears equal, this is not meant to
imply that the same level of effort or resources is required for each in the
overall process. The actual effort necessary depends on the organization’s size
and sophistication, the results of past efforts, the capabilities of management,
and the unique competitive situation of the individual organization.

4. STRATEGY AND OTHER TYPES OF PLANNING

There is need to settle the confusion with regards to the difference between
strategic planning and other types of planning functions and activities such as
annual budgeting, operating plans, financial planning and tactical programming.
For this reason, it might be well to differentiate strategic planning from other
forms of planning. The table below enumerates the more commonly used
planning terms and offers a definition and selected contrasting characteristics of
each.
The principal attributes differentiating strategic planning include:
• Assessing the future impact of current decisions;
• Providing a structure for dealing with risk and uncertainty;

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• Considering alternative courses of action in response to changing
environmental situations;
• Incorporating a process for determining the organization’s purpose,
direction and expected results.

TYPES OF PLANNING
TYPE DEFINITION CHARACTERISTICS
ANNUAL Represents the specific • Quantitative
goals and action benchmarks for short
programmes for the current time performance;
year of the strategic plan • Prepared by
organizational unit;
• One year time
horizon;
• Monthly detail
compared to actual
results.
FINANCIAL A financial and narrative • Explicit statement of
expression of expected goals;
results • Accounting
orientation;
• Cash flow and cash
budget;
• Financial statement
presentation.
FUNCTIONAL Process of determining • Major areas include
OR specific functional marketing,financial,hu
OPERATIONAL objectives, goals and man resources,
strategies based on overall information
corporate plan processing;
• Typically 1-3 years
planning horizon;
• Could lead annual
planning to strategic
planning.

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TACTICAL Task oriented planning to • Detailed view of
deploy resources to activities;
accomplish one or more • Describe how specific
specific short term strategies are achieved;
objectives • Typically one year
horizon.
LONG Financial extrapolation of • Very stable industries;
RANGE short-term financial plan • Typically 5-20 year
for a long term horizon horizon;
• Corporate orientation;
• Formalized.
STRATEGIC A framework for managers • Long term horizon;
to enable them to make • High degree of
decisions which affect the environmental
future in an environment of uncertainty;
risk and uncertainty • Creative;
• Less detail.

5.STRATEGIC PLANNING PROCESS

The strategic Planning Process is a series of steps beginning with organizing


and initiating.S The major activities in a Strategic plan are :
• Environmental scanning;
• Internal analysis and position assessment;
• Developing mission,objectives and goals;
• Formulating strategy;
• Developing the plan.

OVERVIEW OF STRATEGIC PLANNING PROCESS

CONDUCT
. ENVIRONM
ENTAL
SCANNING
DEVELOP FORMULATE DEVELOP
ORGANISE
MISSION, STRATEGY PLAN
AND
OBJECTIVES,
INITIATE
GOALS
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CONDUCT
INTERNAL
ANALYSIS
AND
POSITION
ASSESSMENT

6.STRATEGIC PLANNING

The Strategic Planning process can be undertaken by the personnels of the


organization or through the assistance of a Strategic Planning consultant
who is expected to facilitate the whole process fro initiation to plan
development.
If a Consultant is used like the case of our NEEDS and SEEDS programmes.
The parts to be played by the two sets of personnels are as follows:
POSSIBLE CONSULTANT ORGANISATION
ASSISTANCE RESPONSIBILITY
ORGANISATION PHASE
• Define planning process • Review and approve work
manual and document with programme;
planning; • Designate:
• Develop work programme; -Planning Committee
• Define characteristics of – members;
-Planning committee; -Planning Officer
-Planning officer -Strategic Business Units;
• Identification of external • Review and revise planning
and internal data; calendar;
• Conduct training seminars. • Assist in developing data
requirement list.
ENVIRONMENTAL ANALYSIS
AND FORECAST
• Identification and analysis of • Evaluation and forecast of
economic factors; environmental factors;
• Analysis of relevant • Preparation of market outlook;
regulations; • Evaluation of opportunities
• Analysis of technological and threats;
trends; • Preparation of final

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• Market studies; environmental forecast report.
• Analysis of market and
segments;
• Analysis of Opportunities and
threats;

INTERNAL ANALYSIS AND


POSITION ASSESSMENT
• Analysis of competitors; • Preparation for competition
• Analysis of customers; and customer profiles;
• Analysis of industry success • Identification of industry key
factors; success factors;
• Profit improvement assistance; • Evaluation of
• Identification of strengths and company/organization
weaknesses; strengths and weaknesses;
• Preparation of final
environmental forecast report.
OBJECTIVES AND GOALS
DEVELOPMENT
• Assist with development of • Develop overall business
overall business mission; mission;
• Assist in consolidating • Consolidate objectives from
objectives from external and internal and external analyses;
internal analyses; • Identify key objectives;
• Provide methodology for: • Assure completeness and
-Identifying key objectives; consistency of objectives;
-Assuring completeness and • Develop quantitative goals for
consistency of objectives; each objective;
• Assist in reviewing, analyzing • Communicate objectives and
and evaluating objectives and goals.
goals.
STRATEGY DEVELOPMENT
• Provide methodology for: • Formulate strategy;
-Identifying and analyzing • Document strategy inputs,
strategies; risks, resources and likelihood
-Documenting and consolidating of success;
strategies; • Evaluate proposed strategies;
-Evaluating strategies; • Document finalized strategies.
• Identify areas for strategy

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formation;
• Survey division/department
for strategies;
• Assist with evaluation of
strategies through the use of
mechanized models;
• Assist with the review of
alternative strategies to
completeness, consistency and
relevance
PLAN DEVELOPMENT
• Preparation of supporting • Content of financial
financial information; projections;
• Financial projections and • Preparation of financial
modeling summaries;
• Preparation of executive
summaries;
• Preparation of final strategic
plan.

7.STRATEGIC ACTION
With the strategic plan finalized, the first step of strategic management has
been completed. The issues most critical to successfully translating
strategies into actions are as follows:
• Controlling implementation;
• Linking budgeting to strategy;
• Strategy Translation and Motivation;
• Strategy information Systems.

Controlling Implementation
Controlling Implementation is the first major issue of strategic action. It focuses
on implementation techniques necessary to direct and control the organization’s
resources as it pursues its strategies. A plan has little effect if you do not or
cannot put it into action.

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Factors used for controlling implementation of the strategic plan include: -
• An adequate mechanism to deal with environmental changes quickly.
Employees being alert to conditions that might alter the plan;
• Major milestones created to show employees’ achievements during plan
implementation that they could take pride in their success as a group and
received recognition and visibility to the implementation;
• The CEO sending periodic memos commending employees for their
efforts. He let them know that the organization appreciated them;
• A management committee that met regularly to deal with implementation
problems;
• Tied the strategic plan to the operating budget;
• Implementation work programmes and time table;
• Fixed responsibility for implementation;
• Providing coaching for employees to keep up enthusiasm during the
implementation phase;
• Consistent follow-up efforts on work programmes for completion of
tasks;
• Revising the strategic plan when it needed to be revised and stuck to it at
other times.

The results expected after close control of implementation include:


• Significant progress made on implementation;
• Readiness to react if there is any unforeseen events that could jeopardize
the organization;
• Key individuals monitoring that the plan is on course;
• Key individuals monitoring competitors’ moves;
• Employees morale very high;
Without control, there is little hope that the strategic plan will have any effect
on the organization.

Implementation Strategy
Implementation strategy is the process of transforming plans, strategies and
policies into results. This phase of strategic management mobilizes the human,
financial and capital resource to accomplish the organization’s mission,
objectives and goals. Hence,it requires careful attention to ensure the effective
implementation of the organization’s strategies.

The ideal approach should minimize unnecessary conflicts between functional


areas and should recognize the interdependencies between individual strategies.

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This requires the careful matching of plans to the organizations structure,
people and environment. Properly done, successful implementation is not left to
chance but managed like any other activity.

The key is to formulate a programme to guide the implementation process. The


programme will serve as the basis for controlling the resources that have been
committed.

The major techniques used to control strategy implementation include:


• Developing an implementation programme;
• Designing responsibility for each activity;
• Estimating start/stop dates and estimated work days;
• Identifying required resources and resource constraints;
• Establishing a system to monitor and report progress.
Some organization also makes use of a critical path or PERT charts to further
identify the interrelationship of implementation activities.

Implementation Programme

An implementation programme is a tool used to organize the organization’s


resources to convert the strategic plan into more specific activities and to
monitor that these tasks are carried out.
You should have an implementation programme for each strategy you
develop. an advantage of preparing such programme is that you can
determine the necessary steps to translate the strategy into action. In
addition the resources required for each strategy can be identified, Since
assignment of responsibility is on a task or step basis, the implementation
programme is organized similarly. The time requirements for
implementation-start/stop date, days required-are estimated along with
benchmarks to monitor progress.

Then, the individual programes are gathered and considered as a whole to


reveal a complete picture. In this way, conflicts can be identified and
resolved. For example, if the organization does not have the personnel to do
everything on a timely basis, then the strategies must be prioritized and the
least important shifted to a slack period.

The individual strategies can be organized and presented in several ways:


• By start and completion dates;

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• By responsible individuals;
• By resources required

Portraying the implementation by various dates allows you to quickly monitor


progress. On a given date, you only have to scan the total program to see what
should be just starting.

Organizing the programmes by individual or other resources required serves


two purposes. First,it shows an individual his total implementation
responsibilities.Second,it reveals unrealistic demands on either an individual or
resource that were not apparent on a strategy-by-strategy basis.

8.STRATEGIC THINKING
Strategic thinking is the elusive ingredient that changes the nature of the
strategic plan from a static document to a dynamic management tool.
What is strategic thinking?
The best way to understand what is strategic thinking is to first understand
what it is not. Strategic thinking is not a:-
• Document;
• One time annual effort;
• Mere articulation of current thinking;
• First step of getting a budget.

Strategic thinking does not manifest itself in any tangible product, but can be
observed through the quality and substance of the products of the strategic
planning process. Without strategic thinking the planning process is lifeless.
Strategic thinking is the ability to direct the mind to see its surrounding from
multiple perspective. Strategic thinkers can look at the same data or situation as
others but see alternative and innovative ways of explaining or solving it. Their
thinking is not bounded by tradition such that they can only see things in the
light of how it is done in the past.Instead,they go beyond and provide the
creative insight that are the essential ingredients to strategic management.

Within public administration practitioners, the boundaries around decision


alternatives are constricted by rigid, traditional beliefs. Many managers and
administrators are reluctant to challenge certain assumptions and methods of
doing business. They continue to take decisions based on what has worked in
the past. Hence, fresh insights and innovations from middle and lower managers
are rare. Strategic thinking, on the other hand requires unlearning many of the

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rules that governed past actions. It can be done. Psychologists find that people
who think are creative, but those that believe they are not creative are not. It is a
self-fulfilling prophecy. A strategic thinker believes he has insights into
problems that others do not have and his fresh ideas will lead somewhere.
Senior management must create an environment where employees believe he
can creatively contribute to the future of their organizations.

Creating the Proper Climate

To get everyone to start thinking strategically, the CEO must establish a climate
that encourages and rewards such behaviour. Initial steps would include:
• Involving all employees in the planning process;
• Soliciting employees’ options on an informal basis;
• Encouraging participation in professional organizations;
• Conducting meetings to discuss such things as competition, customers,
regulations, services, targets, goals, and achievements.

Beyond the se initial steps, a strategic thinking climate also requires that you set
aside a special time, without interruptions, for employees to think about their
business and ways to improve it. These sessions may be as formal as think tanks
and retreats or as informal as backroom brainstorming sessions. By their nature,
these sessions usually provide an opportunity for cross stimulations of ideas
with all the resulting synergistic effects. they produce the kind of thinking that
generally does not occur if an employee were working alone.

To be effective some ground rules should be established. First, participants


should suspend judgments on all ideas until late in the session. A foolish, wild
idea left on the table long enough may stimulate someone else to come up with
a useful idea. Second, everyone enters the meeting on equal footing.
Dominance by senior managers or peer group leaders inhibits participation by
others. Third, there should be no repercussions for being wrong, We often see
too much importance attached to being right all the time. As a result, we find
the fear of being wrong is the biggest impediment to expressing new ideas.

Some techniques proven to be effective in stimulating strategic thinking


include:
• Problem Restatement-restating the problem in a variety of ways may lead
to insights into the nature of the problem that were not obvious
originally;

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• Multiple Solutions-instead of searching for what seems to be one right
answer, employees should look for a second, third and fourth right
answer;
• What if Questions-this allows you to suspend the rules of the game,
adjust some assumptions and establish a germinal frame of mind. The
organization can even have a “What if…” question already on the
agenda. For example, what if the cost of money doubled in the next six
months? The more contrary-to-fact the “What if” questions is, the more
provocative and stimulating is the discussion.

Even with the aid of several techniques, the proper planning culture does not
just happen. It must be created,nurtured,and supported by the CEO.

Post-Plan Strategic Thinking


Often those involved in strategic planning consider strategic thinking completed
when the annual planning process is complete. In reality, a finished plan merely
signals the beginning of a new round of strategic thinking, with the first item on
the agenda being to challenge the current plan;
• What assumptions were correct or incorrect?
• What was successful or unsuccessful about the plan?
This kind of examination stimulates new insights on how the organization
relates to its environment. It generates alternatives for each problem area. These
in turn are evaluated and become inputs to the next planning go-round.

As a continuing effort, employees should be constantly monitoring events in


both the internal and external environments. This helps the employee not only
obtain knowledge of his own organization, but also to develop insights into the
relationships between the organization and its environment. He then can apply
these insights not only to next year’s plan but also to daily decision-making

Benefits Of Strategic Thinking


Strategic thinking is the depth of the planning pyramid. It transforms an
unstable two-dimensional triangle into a stable, upright pyramid. It provides the
stability by ensuring that:
• The mission is sensible and attainable;
• Objectives are realistic;

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• Goals fit with objectives;
• Strategies are innovative

In addition, much of the benefit of strategic thinking lies in the process itself
and not simply in the end result. If properly approached, employees who
participate gain insights into their industry that are otherwise unobtainable.
They begin to see the unique cause-effect relationship between their
organization and the rest of the world. They gradually cultivate their
imaginations. Ideas generate more ideas. Before long, you have a bank full of
people who are thinking strategically. They are subconsciously monitoring all
elements in their environment trying to determine their strategic implication.

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3. TOTAL QUALITY MANAGEMENT

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4. MANAGING CHANGE EFFECTIVELY

CONTENTS
1. INTRODUCING CHANGE

2. CHANGE AND THE ADAPTIVE ORGANISATION

3. ORGANISATIONAL DECLINE AND CHANGE

4. PLANNING TO CHANGE

5. RESISTANCE TO CHANGE

6. OVERCOMING RESISTANCE TO CHANGE

7. THE CHANGE PROCESS

8. THE KEYS TO SUCCESSFUL CHANGE

9. ACCEPTANCE OF CHANGE

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1. INTRODUCING CHANGE

The ability to introduce change with minimum resistance is a key managerial


skill since change is a necessary way of life for all organization. Even if an
organization intrinsically does not want to change, it must eventually respond to
movements in the social and economic environment if it is to survive.
Although it is relatively easy and straightforward to implement change on
machine or materials, or even on animals, it is however, much more arduous to
cope with people because their responses are far less programmed or much less
programmable.
The following points should therefore be borne in mind:-
a. Change is one of those situations in which the ‘them/us’ conflict arises in
its most virulent form,unless steps are deliberatively taken to dampen
down the issues.Many employees apparently lack any internal
commitment to change and are therefore extremely reluctant to take any
initiative necessary for the change to be successful;
b. Change takes time to plan and operationalise.If the change is required
for the solution of a specific and defined problem,it is quite likely that the
problem itself will have changed bt he time the cgange process is
completed;
c. Some degrees of participation in the change process nearly always helps
to reduce levels of conflict,stress and tension.

Yet even if the participative methods are used,their effectiveness may be


jeopardized if they are not presented properly at the initial stage,because first
impression arecrucial in determining individuals’subsequent attitudes,not
only to the proposed change,but also to the trustworthiness of management
as the change process unfolds.

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The meaning of change
When we discuss change,we might be discussing:
a. The original source of change-usually,an environmental change; or
b. A change within the organization which is made in response to another
change.
In other word,one change can lead to another and another and
another.Buckly and Perkins (1984) made a distinction between change and
transformation.
a. Change is gradual and small;
b. Transormation is change on a significant scale.
1. Organisational transformation includes major changes in job
definition,reporting lines(lines of authority etc );
2. Transformation is the way the system operates involves major
changes in communication patterns and working relationships
and processes;
3. Transformation in employee consciousness involves major
changes in the way that things are viewed, involving shifts in
attitudes, beliefs and myths.

The nature of change


Changes can be brought about in a variety of different ways, such as new
technology, and so forth. Here are some examples of the different types of
change.
a. New Technology
1. Computerization;
2. New Products;
3. New working methods;
4. Better management information systems.
b. Reorganisation
1. A company is taken over, and so has to adopt the organization
policies of the new parent company;
2. Growth causes reorganization into divisions,or more specialist
functional departments;
3. Divestment of business;
4. A drive to keep down costs leads to cost cutting measures (job
losses);

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5. The incoming of a new political leadership in Government may
lead to massive reorganization that lead to changes.

c.Working Conditions
1. New offices;
2. Shorter working week;
3. More varied work times;
4. More outplacement of work, i.e. giving work to outsiders;
5. Greater emphasis on occupational health.

d.Personnel policies
1. Changes in rules and procedures-e.g. about smoking at work;
2. Promotions,transfers,separation of employees, training and
development.

e.Philosophy of management (relations between management and


employees)
1. New senior manager introduces new style of leadership;
2. Attitudes of managers and employees change over time-e.g.
with greater participation of subordinates in decision-making;
3. Communication with employees becomes more open;
4. Greater collaboration between management and trade unions in
labour relations.

Peter Drucker’s view is that there are certain kinds of change which are
specially relevant for organization today:
a. The explosion of new technologies, producing new industries and
service sectors, whilst simultaneously ensuring the collapse of
others;
b. The move from a national to an international and ultimately to a
global economy;
c. The emergence of new pluralistic institutions: to pose political,
philosophical and spiritual challenges for the continuance of the
status quo.
d. The new universe of knowledge based on mass education and its
implication for work, leisure and leadership.

2.CHANGE AND THE ADAPTIVE ORGANISATION

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How Do Organization Change?
Most organizations exist in a changing environment and must adapt in order to
survive. although formalization and bureaucratic organization helps a small
company to develop into a large one, it may be insufficient to enable the
organization to survive continuing environmental changes.

An organization adapts to change in one of three ways:


a. By Deliberation:-The organization seeks to reinforce the formal structure
by more formal structures. companies or governments might establish
committees with powers to investigate, recommend or even to make
decisions. special project teams might be created, or new departments
established (for example the corporate planning department or economic
advisory section);
b. By Reproduction:-Large national organizations might delegate authority
(decentralize) to regional headquarters.Unfortunately,decentrialisation of
this sort usually results in regional which duplicate the former national
structure: bureaucracy in the same form, but on a smaller scale. Unless
the environment is fairly stable, such adaptation is likely to be inefficient;
c. By Differentiation:- The organization employs different structures with
different cultures, in separate parts of the organization, using a
contingency approach-choosing the most suitable structure for each
particular situation:
1. stable, routine work will be performed in a formalized bureaucratic
manner (role culture);
2. adaptation to change (development of new products and new
market, or meeting environmental threats) should be organized on
a task basis (task culture);
3. any sudden crisis might have to be dealt with by key individuals
with emergency powers (power culture);
4. Overall policy decisions of the organization should be set by a
ruling body of key individuals (board of directors, the Cabinet of
government ministers, or the supreme policy-making councils of
other organizations) (power culture).
One culture should not be allowed to swamp the
organization.However,where differentiation, on a contingency basis,
is applied in an organization structure, there is a potential for conflict.
Project teams might resent policy decisions of senior managers
because they believe them to be inappropriate to the problems of the
organization; line managers might resent ‘free-wheeling’

30
undisciplined’ members of project teams. The management of an
organization must be capable of reconciling differences and
integrating the work of all employees towards a common aim.

3.ORGANISATIONAL DECLINE AND CHANGE

SYMPTOMS OF CORPORATE DECLINE


a. Declining profitability;
b. Decreasing sales volume;
c. Restrictions on the dividend policy;
d. Financial engineering (e.g. changes in accounting policies and
periods, delays in publishing accounts, sudden changes in
Auditors);
e. Frequent changes in senior executives;
f. Falling market share;
g. Evidence of a lack of planning;
h. Over bloated manpower structure;
i. General and obvious laxity in operational systems.

WARNING SIGNS ABOUT ORGANISATIONAL DECLINE

a. Excess Personnel-often coupled with too many levels in the


hierarchy and too many jobs whose titles begin with words
like ‘assistant’ or’ Deputy’ ( a clear indication that such jobs
do not add value);
b. Tolerances of incompetence-Poorly performing individuals
are shunted around the organization or are given non-
essential roles within an ‘elephants’ graveyard’.
c. Cumbersome administrative procedures-with excessive
paperwork and slow approval systems before anything
substantive can be done;
d. Disproponate staff power- with departments like the
personnel function having too much influence in the
development of strategies;
e. Replacement of substance with form- so that formal
adherence to procedures becomes more important than the
achievement of performance outcomes;
f. A scarcity of goals and benchmarks-Because of a lack of
common vision, decision making becomes a lengthy process,

31
with most of the time spent in sorting out the criteria for the
decision;
g. Fear of embarrassment and conflict-An emphasis on mistake-
avoidance and not rocking the boat leads to’ group link’ and
the suppression of dissent;
h. Loss of effective communication-Essential information is
withheld;
i. Outdated organizational structure-especially with a strong
emphasis on status,titles,differentials and centralized
decision-making.

CAUSES OF DECLINE AND STRATEGIES TO DEAL WITH THEM


a. Poor management-This should be dealt with by the introduction of new
management and perhaps organization restructuring;
b. Poor Financial Controls-This can be dealt with by new management and
financial control systems which are tighter and more relevant;
c. High Cost Structure-Cost reduction is important in improving margins in
the long term. New products-market strategies should be adopted for the
short term (to boost profitably and cash flow);
d. Poor marketing: The firm’s activities can be deployed;
e. Competence weakness-This is countered by cost reduction, improved
marketing, asset reduction (e.g. disposing of subsidiaries, selling
redundant fixed assets etc)even acquisition, and of course, a suitable
product-market strategy;
f. Big projects acquisitions-acquisitions can go bad or there can be a failure
of a major project (e.g. Rolls Royce aerospace once went into
receivership because of thye cost of developing a particular engine).s

PLANNING FOR CHANGE


Organizational changes need careful planning. This is true of all but the
smallest changes, and it is specially true of major changes. A systematic
approach should be established for planning and implementing changes. a
step- by step model for change is shown below:-
A MODEL FOR CHANGE
1. Determine the need or desire for change in a particular area;
2. prepare a tentative plan
Brainstorming sessions are a good idea, since alternatives for
change should be considered;
3. Analyze probable reactions to change;

32
4. Make a final decision from the choice of alternative options
The decision should be taken either by group problem solving
(participative) or by a manager on his own (coercive);
5.Establish a timetable for change
• ‘Coerced’ changes can probably be implemented faster,
without time for discussion;
• The speed of implementation that is achievable will depend
on the likely reactions of the people affected all in
favour,half in favour,all against etc;
• Identify those in favour of the change and perhaps set up a
pilot programme involving them. Talk with those who resist
the change;
6.Communicate the plan for change
This is really a continuous process, beginning at step 1 and going
through to step B;
7.Implement the change. Review the change
Continuous evaluation and modification is needed.

FORCE FIELD ANALYSIS


Force field Analysis is a technique for visualizing the change
processIt is based on the idea that in any group or organizational
situation,there is an interplay of restraining and driving forces that
keeps things as they are.s force Field analysis maps the forces that
are pushing toward the preferred state and the restraining forces
which are pushing back to the current state.They can then be
presented in a chart.
The example below describes a public sector organization whose
management are introducing a performance review system:

Driving Forces Current state Restraining Ideal


(for change) forces Position
(resistance)

A requirement Cynicism about


Of new legislation change another
Fad

Existing systems

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Are sufficient

Professional Trade Union concern


Commitment over effects on
To report to jobs and working
Controlling the conditions
Organization

Requirement to
Report to
External agencies Complexity of
Producing such
Reviews

A concern for
Quality Cost of carrying
Out reviews.

Forces can be impersonal(e,g. a new law,new technology),personal


(the commitment of a new leader),institutional (trade unions),or
environmental (competitors).lines of varying thickness represent
the probable strength of different forces.

The Force field model suggests two ways of dealing with change:-
a. Overcoming resistance,through strengtheneing driving
forces.people associated with the driving forces can be
coopted to educate opponents;
b. Weakening the restraining forces by:

34
1. persuasion (e.g. getting endorsement by a supposedly
neutral consultant,although vested interests will have
to be addressed directly);
2. Concession-buying people off;
3. Involving people ind diagnosing problem situations
(e.g. in quality circles),which wins over hearts and
minds;
4. Coercion.

Champion Of Change Model:The Role Of The Change Agent

The champion of change model recognizes the importance of change


being led by a change agent,who may be an individual or occasionally a group.
a. Senior management decide on broad terms what is to be done;
b. They appoint a change agent to drive it through. Senior Management
must: -
1. Support the change agent, if the change provoke s conflict between the
agent and interest groups in the organization;
2.Review and monitor the progress of change;
3.Endorse and approve the changes, and then ensure that they are publicized
c.The change agent has to win the support of functional and operational
managers,who have to introduce and enforce the changes in their own
departments.The champion of change has to provide advice and
information,as well as evidence that the oldways are nolonger acceptable;
c. The change agent galvanizes managers into action and gives them any
necessary support. The managers ensure that the changes are
implemented operationally, in the field. Where changes involve say a
new approach to customercare,it is the workers who are responsible for
ensuring the effectiveness of the change process.

It is only after change has been implemented at operational level that the
change agent’s role becomes of little importance.

5.RESISTANCE TO CHANGE

Change may affect individuals in several areas :-


a) There may be physiological changes in a person’s life, both as the natural
product of development, maturation and ageing, and as the result of
external factors.( A change in the pattern of shift working, for example,

35
may temporarily throw the individual’s eating, waking and sleeping
routine out of tune with the body’s ‘clock’, or sense of time);
b) Circumstantial Changes:-living in a new house, stabilizing new
relationships, working to new routines-will involve letting go of things,
perhaps unlearning old knowledge, and learning new ways of doing
things;
c) Above all change affects s individuals psychologically:-
1. It may create feelings of disorientation before new circumstances
have been assimilated: you may have felt this on waking up in an
unfamiliar room, or performing a familiar task in an unfamiliar
setting at college or at work;
2. Uncertainty may lead to insecurity, especially in changes involving
work and or fast acclimatization(a short learning curve);
3. The business of forging new relationships can be fraught with
personal insecurity, risk of rejection, the feeling of being an
outsider.

Resistance To Change At Work


Resisting change means attempting to preserve the existing state of affairs
against pressure to alter it .despite the possibly traumatic effects of change per
se,as discussed above, most people do not in fact resist it on these grounds
alone. Many people long for change, and have a wealth of ideas about how it
should be achieved.

Sources of resistance to change itself may include age and inflexibility,strong


needs for security,emotional stability etc.Sources of resistance toparticular
proposed changes (e.g. in location, methods of working,pay structure) may
include the following:-
a) Attitudes or beliefs,perhaps arising from cultural,religious or class
influences (for example resistance to changes in the law on Sunday
trading);
b) Loyalty to a group and its norms,perhaps with an accompanying rejection
of other groups,or outsiders’ (for example in the case of a relocation so
that two departments share office space).Groups tend to close ranks if
their independent identity is threathened;
c) Habit or past norms.This can be a strong source of clinging to old
ways,whether out of security needs,respect for tradition,or the belief that
you can’t teach an old dog new tricks (for example resistance to the
introduction of new technology);

36
d) Politics-in the sense of resisting changes that weaken the power base of
the individual or group or strengthen a rival’ position.Changes involving
increased delegation may be strongly resisted by senior management,for
example.

Common Causes Of Resistance


a) Self Interest: If the status quo is perceived to be comfortable,or
advantageous to the individual or the group;
b) Misunderstanding and distrust:If the reasons for,or the nature and
consequences of the change have not been made clear.This aggravates
uncertainty and suspicion about the perceived threat;
c) Contradictory assessments:Different individuals’evaluation of the likely
costs andbenefits of some change,Resistance arises from individuals
perception of the undesirability of change;
d) Low tolerance of change itself:Differences in tolerance of
ambiguity,uncertainty,etc.

Reaction To Proposed Change


a.Acceptance-(whetherenthusiastic espousal,cooperation,grudging cooperation
or resignation);
b.Indifference-(usually where the change does not directly affect the individual
apathy,lack of interest,inaction);
d. Passive resistance(refusal to learn,working to rule);
e. Active resistance-(deliberate spoiling,go slows,deliberate
errors,sabotage,absenteeism or strikes).

Staff Reactions That subtly reinforce resistance to change


Managers should learn to recognize the following esponses that may look like
resistance on the face of things:
a) Pleas of ignorance (I need more information);
b) Delayed judgements ( let’s wait and see…),perhaps stalling for time with
comparisons(There are other ways…);
c) Defensive stances (This isn’t going to work;It ‘d be tooexpensive;It’s the
wrong time to…);
d) The display of various personal insecuritiesI won’t be able to
cope,Iwon’t see my team anymore,we won’t have control over our
planning anymore;Why can’t we just go on as we are?)fear
anxiety,resentment at the manner of change,frustration at perceived
losses;

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e) Withdrawal ,or disowning of the change( Oh well,on their heads be it;I’m
not interested in flexitime anyway).

6.OVERCOMING RESISTANCE TO CHANGE


When dealing with resistance to changes,managers should consider
the pace,manner and scope of change.
Pace Of Change
The more gradual the change, the more time is available for questions
to be asked, reassurances to be given and retraining (where necessary)
embarked upon. Many information systems are implemented slowly;
e.g. via pilot testing, to iron out bugs and let staff be acclimatized to
the new system.
Presenting the individual concerned with a fait accompli (let’s get it
over with-they ‘ll just have to get used to it)may short circuit
resistance at the planning and immediate implementation stages. But
it may cause a withdrawal reaction if the change is radical and
perceived as threatening and is likely to surface later, as the change is
consolidated.

The manner of change


The manner of change in which a change is put across is very
important: the climate must be prepared, the need made clear, fears
soothed and if possible the individuals concerned positively motivated
to embrace the changes as their own.
a. Confront Resistance: Talking through areas of conflict may
lead to useful insights and the adapting of the programme of
change to advantage;
b. Keep people informed: Information should be sensible, clear,
consistent and realistic: there is no point issuing information
which will be seen as a blatant misrepresentation of the
situation;
c. Explanatory: The change can be ‘sold’ to the people :people
can be convinced that their attitudes and behaviours need
changing;
d. Skills Training: Learning programme for any new skills or
systems necessary will have to be designed according to the
abilities, previous learning experience etc of the individuals
concerned;

38
e. Empathy: Putting yourself in the shoes of the other person and
getting to know the people involved in and affected by changes
enables their reactions to be anticipated;
f. The degree to which consultation or participation will be
possible(or genuine) will depend on management’s attitude
towards the competence and trustworthiness of its workplace.

Scope Of Change
The scope of change should be carefully reviewed:
a) Total transformation will create greater insecurity-but also greater
excitement, if the organization has the kind of innovative culture that can
stand it-than moderate innovation;
b) There may be hidden changes to take into account: a change in
technology may necessitate changes in work methods, which may in turn
result in the breaking up of work groups;
c) Management should be aware of how many different aspects of their
employees lives they are proposing to alter-and therefore on how many
fronts they are likely to encounter resistance.

7.THE CHANGE PROCESS


The three –stage approach to changing human behaviour are as follows:

UNFREEZE attitudinal/ REFREEZE


Existing behaviour behavioural CHANGE new behaviour

Unfreeze is the most difficult (and in many cases neglected) stage of the
process, concerned mainly with selling the change, with giving individuals or
groups a motive for changing their attitudes,values,behaviour,systems or
structures.
a) If the need for change is immediate, clear and perceived to be associated
with the survival of the individual or group (for example, change in
reaction to an organizations crisis) the unfreeze stage will be greatly
accelerated. Routine changes may be harder to sell than transformational
ones, if they are perceived to be unimportant and not survival based.
b) Culture change is perhaps the hardest of all.

Change is the second stage, mainly concerned identifying what the new,
desirable behaviour or norm should be, communicating it and encouraging
individuals and groups to own the new attitude or behaviour,To be successful,
the new ideas must be shown to work.

39
Refreeze is the final stage, implying consolidation or reinforcement of the new
behaviour.Positive reinforcement (praise, reward etc.) or negative
reinforcement (sanctions applied to those who deviate from the new
behaviour)may be used.

8.THE KEYS TO SUCCESSFUL CHANGES


The three keys to successful change are empathy, communications and
participation.
Empathy
Empathy means putting yourself in the shoes of the other person and getting to
know the people involved in and affected by changes. The manager should
consider each person’s (or groups) reaction to change accordingly. In other
words: If I were in their shoes, what would I be thinking and how would I be
reacting”
Communication
Communication is not just telling subordinates what to do, it is also the process
of creating an understanding. The aspects of communication, which might be
particularly relevant to change, are as follows:
a) Who needs to know who else will want to know? The people should be
told.
b) When should the information be given about planned change?
1) Bosses ought to be told before subordinates;
2) Trade Unions officials ought to be told before workers.
c) How should the information be given? Should it be given verbally,face-
to-face?Or in writing? Or a mixture of both?
1) If emotions are likely to run wild, the communication ought to be
verbal and face-to-face .If individuals need persuading, the
manager must give himself the opportunity to talk to them, and try
to persuade them;
2) If the changes are complex, and individuals need time to study
them, or to refer to them later,(e.g. proposed changes t the
company pension scheme) they should be set out in writing;
3) The information should be communicated directly, not via a go
between or middleman.
d) Feedback from the people affected should be obtained. Employees should
be encouraged to ask questions and voice any doubts or worries they
might have.

40
Participation
A participative approach is needed for innovation; otherwise new ideas will
be stifled and discouraged. Examples of a participative approach to change
include:
a) Quality circles;
b) Talk forces; and
c) Problem solving groups
The practical difficulties with achieving participation in change are that:
a) Managers might pay lip service to participation, but do not believe in it;
b) Employees have suspicion about the consequences of their ideas, perhaps
that their good idea will result in lost jobs;
c) If there is no current culture of participation, it would be difficult to
introduce suddenly.Partcipation would have to be introduce gradually,
perhaps starting with one or two plot groups;
d) Participation is sometimes impossible.

9.ACCEPTANCE OF CHANGE
It takes time for change to get accepted. The three phases and eight stages in the
process of accepting change are as follows:
a) Phase 1:Preparation phase
Stage 1 Contact-First knowledge that a change is in the air;
Stage 2 awareness-Knowledge that change will happen;
b) Phase 2: acceptance phase
Stage 3 Understanding-Gaining an understanding of the nature and purpose
of the change;
Stage 4 Positive perception-Developing a positive view towards the
change, and accepting the need for it;
c)Phase 3: Commitment phase
Stage 5 Installation-The change becomes operational;
Stage 6 Adoption-The change has been in force for long enough and its
value has become apparent;
Stage 7 Institusionalisation-Yhe change has been in for long enough to
become routine and the norm;
Stage 8 Internalization-Individuals are highly committed to the change
because it is now congruent with their personal interests, goals and value
systems.

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42
5. ORGANIZATION DEVELOPMENT

• WHAT IS ORGANISATION DEVELOPMENT?


• CHARACTERISTICS OF ORGANISATION DEVELOPMENT
PROGRAMMES
• THE PROCESS OF ORGANISATION DEVELOPMENT PROGRAMME
• TECHNIQUES AND APPROACHES OF ORGANISATION DEVELOPMENT
• OTHER STRATEGIES FOR ORGANISATION CHANGES
• EVALUATION AND EXPECTATIONS AFTER ORGANISATION
DEVELOPMENT PROGRAMMES

ORGANISATION DEVELOPMENT IS:


• ANY PLANNED ACTIVITY DIRECTED TOWARDS HELPING MEMBERS
OF AN ORGANISATION TO INTERACT MORE EFFECTIVELY IN THE
PURSUIT OF THE GOALS OF THE ORGANISATION.
• ANY EFFORT THAT ATTEMPTS TO INTERGRATE THE INDIVIDUAL’S
GOALS WITH THE ORGANISATIONAL GOALS
• A PROCESS FOR DEVELOPING SOLUTIONS AND ACTION PLANS FOR
CHANGE BASED ON A PROPER DIAGNOSIS OF THE ORGANISATION
• ANY COORDINATED EFFORTS AIMED AT UNCOVERING AND
REMOVING ATTITUDINAL,BEHAVIORAL PROCEDURAL POLICY AND
STRUCTURAL BARRIERS TO EFFECTIVE PERFORMANCE
• A LONG TERM PLANNED INTERVENTIONS TO IMPROVE UPON
ORGANISATIONAL PERFORMANCE THROUGH THE APPLICATION OF
BEHAVIORAL KNOWLEDGE TO THE ORGANISATIONAL PROCESS
AND ORGANISATIONAL CHANGE

ASSUMPTIONS

ORGANISATION DEVELOPMENT IS BASED ON THE ASSUMPTIONS THAT :


• ORGANISATIONS INFLUENCE HUMAN BEHAVIOR AND INDIVIDUALS
INFLUENCE ON AN ORGANISATION’S BEHAVIOR
• BOTH INDIVIDUAL BEHAVIOR AND ORGANISATIONAL BEHAVIOR
CAN BE IDENTIFIED AND DONE SO WITH SKILLFUL INTERVENTION

OUTCOMES OF ORGANISATION DEVELOPMENT EFFORTS

43
• INCREASED EFFECTIVENESS
• PROBLEM SOLVING
• ADAPTABILITY
• OPPORTUNITIES TO BE ‘HUMAN’
• INCREASE AWARENESS
• PARTICIPATION
• INFLUENCE

CHARACTERISTICS OF ORGANISATION DEVELOPMENT PROGRAMMES

• PLANNED CHANGE:
Organisation Development programmes are usually systematic and planned
• COMPREHENSIVE CHANGE:
Organisation Development programmes ensure that all parts of the
organization are well coordinated
• GROUP PROCESSES:
Organisation Development relies on group processes such as group
discussions,inter-group conflicts,confrontations and procedures for cooperations.It
attempts to improve inter personal relations,open communication channels,build
trust and encourage responsiveness to others
• LONG RANGE CHANG:
Organisation Development process takes months or even years to
implement.Although there may be pressure for quick results,the organization
Development process is not intended to be a stop gap measure
• USE OF A CHANGE AGENT-ORGANISATION
Organisation Development uses one or more change agent who are people with
the role of stimulating and coordinating change within the group e.g. Consultants
from outside
• PROBLEM SOLVING AND ACTION RESEARCH-
Organisation Development emphasizes problem solving.It seeks to solve problem
rather than to discuss them theoretically,as in a classroom.Organisation
Development focuses on real outgoing problems,not artificial ones-this is called
Action Research
• CONTIGENCY ORIENTATION
Organisation Development is usually situational and contingency oriented.It
does not emphasise only one way to deal with a problem.It is flexible and
pragmatic,adapting actions to fit particular needs.
• FEEDBACK
Organisation Development relies heavily on feedback to participants so that they
will have concrete facts to base their decisions.Organisation Development

44
encourage staff to understand a situation and take self-correcting action rather
than wait for someone to tell them what to do

THE PROCESS OF ORGANISATION DEVELOPMENT

STEP
1. DIAGNOSIS
Identification and analysis of problems by both the Management and a
Consultant. It is the process by which they find out what is wrong and what
needs action within the organization.They examine :
• Corporate Strategy
• Critical tasks of the organization
• Examination of organization structure whether it meets the demands of
the tasks
• Patterns of individual and group behaviour
1. characteristics of individual organizational practices that affects
individual behaviour(design,reward system,conditions of service)
2. design and management of work group
2.DATA COLLECTION
Surveys on organizational climate and behavioural problems.
Consultant meet with groups at work and/or away from work to collect
information using various in-depth questions and methods.

3.DATA FEED-BACK AND CONFRONTATION


Work groups are assigned to review data collected to mediate among themselves
areas of disagreement and to establish priorities for change

4.ACTION PLANNING AND PROBLEM SOLVING


Group use the data to develop specific recommendations and plans for
change.Discussion focuses on actual problems in the organization.Plans are specific
including who is responsible and when the action should be completed.

5. TEAM BUILDING
Consultant helps the group to examine how they work together.He helps them see
the value of open communication and trust as prerequisites for improved group
functioning.Individual managers and their subordinates may be encouraged to work
together in team building.

6.STABILISATION AND EVALUATION


The results of the change are evaluated.The aim of evaluation is to determine the
extent of success as well as provide a basis for stabilization or refreezing.

7.TERMINATION AND FOLLOW-UP

45
At the end of the effort, a different project may be taken on or additional
programmes developed for areas where additional results are needed.

ORGANISATIONAL DEVELOPMENT TECHNIQUES AND APPROACHES

• SURVEY FEEDBACK
• SENSITIVITY TRAINING
• JOB ENRICHMENT
• TRANSACTIONAL ANALYSIS
• MANAGEMENT BY OBJECTIVE

A.SURVEY FEEDBACK

Survey Feedback involves the gathering of data relative to the organization, analysis of
the data and the feeding back of the data to the appropriate group for action.

The purpose of Survey Feedback is to assist the organization in diagnosing problems


and development action plans for problem solving.

Steps in implementing The Survey Feedback Approach

STEP

1. Obtain the commitment of top management to both the framework and the data
gathering.
2. Gathering the data –by questionnaires, interviews or process observation. Closed-
end questionnaires is the most popular.
3. Analysis of the data
4. Feed the data back to the members of the organization. In some cases group
meetings are held
5. Develop plans of action based upon the implications of the data to the members.
This leads to implementation of individual and/or group approaches to change.

Survey Feedback can lead to attitudinal changes by participants.

Satisfaction,positive attitudes to work and one’s supervisor, and involvement in the


organization have been shown to increase as a result of group discussion surrounding
the survey results.

B.SENSITIVITY TRAINING (T-GROUP)

46
Sensitivity Training is aimed at individual change but generally takes place in T-
Groups where individusls interact in a structured manner.
OBJECTIVES
The objective of Sensitivity Training are to provide the subjects with increase
awareness of their own behaviour and how others perceive them, greater sensitivity to
the behaviour of others and increased understanding of group processes.
SPECIFIC RESULTS
The Specific Results sought in Sensitivity Training include:
• Increased ability to emphatise with others
• Improved listening skills
• Greater openness
• Increase tolerance of individual differences
• Improved conflict resolution skills.

STAGES OF SENSITIVITY TRAINING


STAGE
1. An intended lack of formal leadership,power and status.There is no
agenda,stated goals or purpose.This situation creates a vacuum which members
will fill with examples of traditional behaviour.
2. The trainer evaluates how he/she feels in the group in a non-evaluative
manner.The trainer becomes open and emphatetic. This behaviour will induce
others in the group to describe their feelings about what they feel is occurring.
3. In this stage, following a period of give and take between
members,interpersonal relationships develop.Each member is exploring with
new interpersonal behaviour.
4. This stage tries to help the members explore how to use their understanding of
interpersonal and group behaviour when they return to their organization.
BENEFITS
Successful Sensitivity Training can effect
• More realistic self perceptions
• Greater group cohesiveness
• Reduction in dysfunctional interpersonal conflicts
• Result in a better intergration of the individual and the organization.

RISKS
There have been cases of personality damage to those who were not adequately
screened prior to participation.

C. JOB ENRICHMENT

Job Enrichment is directed primarily towards increasing job meaningfulness by


allowing the worker to have a greater share in the “ownership” of the job.
Job Enrichment is
• concerned with designing jobs that include a wide variety of work content

47
• ;require a higher level of knowledge and skill
• give the worker more autonomy (independence) and responsibility for
planning, directing and controlling his own performance, and
• provide the opportunity for personal growth and meaningful work experience.
• An organization Development technique that will allow a worker to be involved
in planning, directing and controlling how a job is done.
MAJOR STIMULUS
The major stimulus to Job Enrichment was Hertzberg’s Two Factor Theory of work
satisfaction.According to the Theory, propounded in 1959,there are Two Factors,
corresponding to Satisfaction and Disatisfaction.After an empirical study of
Accountants and Engineers, it was found that the good seemed to be brought about by
achievement,recognition,the work itself,responsibility and advancement.
Bad experiences appeared to be due to Supervisors,fellow workers,company
policy,working conditions and personal life,
Salary

48
6. PROCESS REENGINEERING TECHNIQUES

CONTENT

1. THE REENGINEERING ‘MANIFESTO’;

2. METHODOLOGY OF BPR;

3. REACTIONS TO THE CHANGES;

4.THE OLD CULTURE BEFORE BPR;

5.CORPORATE CULTURE CHANGE PROJECT;

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6. SUGGESTIONS FOR COPING WITH CORPORATE CULTURE
CHANGE PROBLEMS;

1. THE REENGINEERING ‘MANIFESTO’


The essential features for the new world of work have been eloquently
discussed by Michael Hammer and James Champy in Reengineering the
Corporation: A Manifesto for Business Revolution (1993). Hammer and
Campy envisage the following trends.
a) Jobs-From simple tasks to multi-dimensional work. The old model
(represented by Taylorism) offered simple tasks for simple people,
whereas the new approach reflects complex jobs for smart people;
b) Roles-From’ controlled’ or’ empowered’. In a process team
environment, people have the chance to learn more about the work
process as a complete entity, performing the role becomes more
satisfying with a greater sense of completion, closure and
accomplishment, and more learning and growth built in. The
corollary is that jobs are more challenging and difficult as the
older-style routine work is eliminated or automated;
c) Values-From protective to productive. People in organization have
to believe that they work for their customers, not for their bosses;
d) Managers-From supervisors to coaches;
e) Executives-From storekeepers to leaders;
f) Structures-From hierarchical to flat.

2. METHODOLOGY OF BPR;

The chief tool of BPR is a clean sheet of paper. Reengineers start from
the future and work backwards. They are unconstrained by existing
methods, people or departments. In effect, they ask,; If we were a new
company, how would we run the place? hammer points out that ‘At the
heart of reengineering is the notion of discontinuous thinking-of
recognizing and breaking away from the outdated rules and fundamental
assumptions that underlie operations’

Reengineers ask two fundamental questions about everything that


happens in organizations:’ why?’ And ‘What if’. Only when they receive

50
satisfactory answers to these questions do they then begin to explore
better ways of doing things. The critical questions they asked then are:
a) What is done?
b) How is it done?
c) Where is it done?
d) When is it done?
e) Who does it?
f) Why do it?
g) Why do it that way?
h) Why do it there?
i) Why do it then?
j) Why that person?
The difference between traditional approaches to efficiency improvement
and BPR is that BPR more typically breaks away from conventional wisdom
and the constraints of organizational or departmental/functional boundaries.
BPR is more concerned, too with exploiting the power of information
technology-not to automate existing procedures, but to facilitate new ones.

It is against this background of meticulous, and radical change of processes that


we shall examine the change in the Bank’s corporate culture and work climate
especially as it affected the staff of the bank. Obviously, there will be
organizational culture shock especially for the bulk of the staff who had been
used to ‘doing business as usual’

3.0 POSSIBLE REACTIONS TO CHANGES;

3.1 ORGANISATIONAL DECLINE AND CHANGE

SYMPTOMS OF CORPORATE DECLINE


j. Declining profitability;
k. Decreasing sales volume;
l. Restrictions on the dividend policy;
m. Financial engineering (e.g. changes in accounting policies and
periods, delays in publishing accounts, sudden changes in
Auditors);
n. Frequent changes in senior executives;
o. Falling market share;
p. Evidence of a lack of planning;

51
q. Over bloated manpower structure;
r. General and obvious laxity in operational systems.

WARNING SIGNS ABOUT ORGANISATIONAL DECLINE

j. Excess Personnel-often coupled with too many levels in the


hierarchy and too many jobs whose titles begin with words
like ‘assistant’ or’ Deputy’ ( a clear indication that such jobs
do not add value);
k. Tolerances of incompetence-Poorly performing individuals
are shunted around the organization or are given non-
essential roles within an ‘elephants’ graveyard’.
l. Cumbersome administrative procedures-with excessive
paperwork and slow approval systems before anything
substantive can be done;
m. Disproponate staff power- with departments like the
personnel function having too much influence in the
development of strategies;
n. Replacement of substance with form- so that formal
adherence to procedures becomes more important than the
achievement of performance outcomes;
o. A scarcity of goals and benchmarks-Because of a lack of
common vision, decision making becomes a lengthy process,
with most of the time spent in sorting out the criteria for the
decision;
p. Fear of embarrassment and conflict-An emphasis on mistake-
avoidance and not rocking the boat leads to’ group link’ and
the suppression of dissent;
q. Loss of effective communication-Essential information is
withheld;
r. Outdated organizational structure-especially with a strong
emphasis on status, titles, differentials and centralized
decision-making.

CAUSES OF DECLINE AND STRATEGIES TO DEAL WITH THEM


g. Poor management-This should be dealt with by the introduction of new
management and perhaps organization restructuring;
h. Poor Financial Controls-This can be dealt with by new management and
financial control systems which are tighter and more relevant;

52
i. High Cost Structure-Cost reduction is important in improving margins in
the long term. New products-market strategies should be adopted for the
short term (to boost profitably and cash flow);
j. Poor marketing: The firm’s activities can be deployed;
k. Competence weakness-This is countered by cost reduction, improved
marketing, asset reduction (e.g. disposing of subsidiaries, selling
redundant fixed assets etc)even acquisition, and of course, a suitable
product-market strategy;
l. Big projects acquisitions-acquisitions can go bad or there can be a failure
of a major project (e.g. Rolls Royce aerospace once went into
receivership because of thye cost of developing a particular engine).s

PLANNING FOR CHANGE


Organizational changes need careful planning. This is true of all but the
smallest changes, and it is specially true of major changes. A systematic
approach should be established for planning and implementing changes. a
step- by step model for change is shown below:-
A MODEL FOR CHANGE
5. Determine the need or desire for change in a particular area;
6. prepare a tentative plan
Brainstorming sessions are a good idea, since alternatives for
change should be considered;
7. Analyze probable reactions to change;
8. Make a final decision from the choice of alternative options
The decision should be taken either by group problem solving
(participative) or by a manager on his own (coercive);
5.Establish a timetable for change
• ‘Coerced’ changes can probably be implemented faster,
without time for discussion;
• The speed of implementation that is achievable will depend
on the likely reactions of the people affected all in
favour,half in favour,all against etc;
• Identify those in favour of the change and perhaps set up a
pilot programme involving them. Talk with those who resist
the change;
6.Communicate the plan for change
This is really a continuous process, beginning at step 1 and going
through to step B;
7.Implement the change. Review the change

53
Continuous evaluation and modification is needed.

FORCE FIELD ANALYSIS


Force field Analysis is a technique for visualizing the change
process It is based on the idea that in any group or organizational
situation, there is an interplay of restraining and driving forces that
keeps things as they are. Force Field analysis maps the forces that
are pushing toward the preferred state and the restraining forces
which are pushing back to the current state. They can then be
presented in a chart.
The example below describes a public sector organization whose
management are introducing a performance review system:

Driving Forces Current state Restraining Ideal


(for change) forces Position
(resistance)

A requirement Cynicism about


Of new legislation change another
Fad

Existing systems
Are sufficient

Professional Trade Union concern


Commitment over effects on
To report to jobs and working
Controlling the conditions
Organization

Requirement to
Report to
External agencies Complexity of
Producing such
Reviews

54
A concern for
Quality Cost of carrying
Out reviews.

Forces can be impersonal (e.g. a new law, new


technology),personal (the commitment of a new
leader),institutional (trade unions),or environmental
(competitors).lines of varying thickness represent the probable
strength of different forces.

The Force field model suggests two ways of dealing with change:-
c. Overcoming resistance, through strengthening driving
forces. People associated with the driving forces can be co-
opted to educate opponents;
d. Weakening the restraining forces by:
1. Persuasion (e.g. getting endorsement by a supposedly
neutral consultant, although vested interests will have
to be addressed directly);
2. Concession-buying people off;
3. Involving people ind diagnosing problem situations
(e.g. in quality circles),which wins over hearts and
minds;
4. Coercion.

Champion Of Change Model: The Role Of The Change Agent

The champion of change model recognizes the importance of change


being led by a change agent, who may be an individual or occasionally a group.
f. Senior management decide on broad terms what is to be done;

55
g. They appoint a change agent to drive it through. Senior Management
must: -
1. Support the change agent, if the change provokes s conflict between the
agent and interest groups in the organization;
2.Review and monitor the progress of change;
3.Endorse and approve the changes, and then ensure that they are publicized
c. The change agent has to win the support of functional and operational
managers, who have to introduce and enforce the changes in their own
departments. The champion of change has to provide advice and
information, as well as evidence that the old ways are no longer acceptable;
d.The change agent galvanizes managers into action and gives them any
necessary support. The managers ensure that the changes are implemented
operationally, in the field. Where changes involve say a new approach to
customercare,it is the workers who are responsible for ensuring the
effectiveness of the change process.

It is only after change has been implemented at operational level that the change
agent’s role becomes of little importance.

3.3 RESISTANCE TO CHANGE

Change may affect individuals in several areas: -


d) There may be physiological changes in a person’s life, both as the natural
product of development, maturation and ageing, and as the result of
external factors.( A change in the pattern of shift working, for example,
may temporarily throw the individual’s eating, waking and sleeping
routine out of tune with the body’s ‘clock’, or sense of time);
e) Circumstantial Changes:-living in a new house, stabilizing new
relationships, working to new routines-will involve letting go of things,
perhaps unlearning old knowledge, and learning new ways of doing
things;
f) Above all change affects s individuals psychologically:-
1. It may create feelings of disorientation before new circumstances
have been assimilated: you may have felt this on waking up in an
unfamiliar room, or performing a familiar task in an unfamiliar
setting at college or at work;
2. Uncertainty may lead to insecurity, especially in changes involving
work and or fast acclimatization (a short learning curve);

56
3. The business of forging new relationships can be fraught with
personal insecurity, risk of rejection, the feeling of being an
outsider.

Resistance To Change At Work


Resisting change means attempting to preserve the existing state of affairs
against pressure to alter it .despite the possibly traumatic effects of change per
se,as discussed above, most people do not in fact resist it on these grounds
alone. Many people long for change, and have a wealth of ideas about how it
should be achieved.

Sources of resistance to change itself may include age and inflexibility, strong
needs for security, emotional stability etc.Sources of resistance to particular
proposed changes (e.g. in location, methods of working, pay structure) may
include the following:-
e) Attitudes or beliefs, perhaps arising from cultural, religious or class
influences (for example resistance to changes in the law on Sunday
trading);
f) Loyalty to a group and its norms, perhaps with an accompanying
rejection of other groups, or outsiders’ (for example in the case of a
relocation so that two departments share office space).Groups tend to
close ranks if their independent identity is threatened;
g) Habit or past norms. This can be a strong source of clinging to old ways,
whether out of security needs, respect for tradition, or the belief that you
can’t teach an old dog new tricks (for example resistance to the
introduction of new technology);
h) Politics-in the sense of resisting changes that weaken the power base of
the individual or group or strengthen a rival’ position. Changes involving
increased delegation may be strongly resisted by senior management, for
example.

Common Causes Of Resistance


e) Self Interest: If the status quo is perceived to be comfortable, or
advantageous to the individual or the group;
f) Misunderstanding and distrust: If the reasons for, or the nature and
consequences of the change have not been made clear. This aggravates
uncertainty and suspicion about the perceived threat;
g) Contradictory assessments: Different individuals’ evaluation of the likely
costs and benefits of some change, Resistance arises from individuals
perception of the undesirability of change;

57
h) Low tolerance of change itself: Differences in tolerance of ambiguity,
uncertainty,etc.

Reaction To Proposed Change


a. Acceptance- (whether enthusiastic espousal, cooperation, grudging
cooperation or resignation);
b. Indifference-(usually where the change does not directly affect the individual
apathy, lack of interest, inaction);
h. Passive resistance (refusal to learn, working to rule);
i. Active resistance-(deliberate spoiling, go slows, deliberate
errors,sabotage,absenteeism or strikes).

Staff Reactions That subtly reinforce resistance to change


Managers should learn to recognize the following responses that may look like
resistance on the face of things:
f) Pleas of ignorance (I need more information);
g) Delayed judgments ( let’s wait and see…),perhaps stalling for time with
comparisons(There are other ways…);
h) Defensive stances (This isn’t going to work; It ‘d be tooexpensive;It’s the
wrong time to…);
i) The display of various personal insecuritiesI won’t be able to cope,
won’t see my team anymore, we won’t have control over our planning
anymore; Why can’t we just go on as we are?)fear anxiety, resentment at
the manner of change, frustration at perceived losses;
j) Withdrawal ,or disowning of the change( Oh well, on their heads be it;
I’m not interested in flextime anyway).

3.4 OVERCOMING RESISTANCE TO CHANGE


When dealing with resistance to changes, managers should consider
the pace, manner and scope of change.
Pace Of Change
The more gradual the change, the more time is available for questions
to be asked, reassurances to be given and retraining (where necessary)
embarked upon. Many information systems are implemented slowly;
e.g. via pilot testing, to iron out bugs and let staff be acclimatized to
the new system.
Presenting the individual concerned with a fait accompli (let’s get it
over with-they ‘ll just have to get used to it)may short circuit
resistance at the planning and immediate implementation stages. But

58
it may cause a withdrawal reaction if the change is radical and
perceived as threatening and is likely to surface later, as the change is
consolidated.

The manner of change


The manner of change in which a change is put across is very
important: the climate must be prepared, the need made clear, fears
soothed and if possible the individuals concerned positively motivated
to embrace the changes as their own.
g. Confront Resistance: Talking through areas of conflict may
lead to useful insights and the adapting of the programme of
change to advantage;
h. Keep people informed: Information should be sensible, clear,
consistent and realistic: there is no point issuing information
which will be seen as a blatant misrepresentation of the
situation;
i. Explanatory: The change can be ‘sold’ to the people :people
can be convinced that their attitudes and behaviours need
changing;
j. Skills Training: Learning programme for any new skills or
systems necessary will have to be designed according to the
abilities, previous learning experience etc of the individuals
concerned;
k. Empathy: Putting yourself in the shoes of the other person and
getting to know the people involved in and affected by changes
enables their reactions to be anticipated;
l. The degree to which consultation or participation will be
possible(or genuine) will depend on management’s attitude
towards the competence and trustworthiness of its workplace.

Scope Of Change
The scope of change should be carefully reviewed:
d) Total transformation will create greater insecurity-but also greater
excitement, if the organization has the kind of innovative culture that can
stand it-than moderate innovation;
e) There may be hidden changes to take into account: a change in
technology may necessitate changes in work methods, which may in turn
result in the breaking up of work groups;

59
f) Management should be aware of how many different aspects of their
employees lives they are proposing to alter-and therefore on how many
fronts they are likely to encounter resistance.

3.5 THE CHANGE PROCESS

The three –stage approach to changing human behaviour are as follows:

UNFREEZE attitudinal/ REFREEZE


Existing behaviour behavioural CHANGE new behaviour

Unfreeze is the most difficult (and in many cases neglected) stage of the
process, concerned mainly with selling the change, with giving individuals or
groups a motive for changing their attitudes,values,behaviour,systems or
structures.
c) If the need for change is immediate, clear and perceived to be associated
with the survival of the individual or group (for example, change in
reaction to an organizations crisis) the unfreeze stage will be greatly
accelerated. Routine changes may be harder to sell than transformational
ones, if they are perceived to be unimportant and not survival based.
d) Culture change is perhaps the hardest of all.

Change is the second stage, mainly concerned identifying what the new,
desirable behaviour or norm should be, communicating it and encouraging
individuals and groups to own the new attitude or behaviour,To be successful,
the new ideas must be shown to work.

Refreeze is the final stage, implying consolidation or reinforcement of the new


behaviour.Positive reinforcement (praise, reward etc.) or negative
reinforcement (sanctions applied to those who deviate from the new
behaviour)may be used.

3.6 THE KEYS TO SUCCESSFUL CHANGES


The three keys to successful change are empathy, communications and
participation.

60
Empathy
Empathy means putting yourself in the shoes of the other person and getting to
know the people involved in and affected by changes. The manager should
consider each person’s (or groups) reaction to change accordingly. In other
words: If I were in their shoes, what would I be thinking and how would I be
reacting”
Communication
Communication is not just telling subordinates what to do; it is also the process
of creating an understanding. The aspects of communication, which might be
particularly relevant to change, are as follows:
e) Who needs to know who else will want to know? The people should be
told.
f) When should the information be given about planned change?
1) Bosses ought to be told before subordinates;
2) Trade Unions officials ought to be told before workers.
g) How should the information be given? Should it be given verbally,face-
to-face?Or in writing? Or a mixture of both?
1) If emotions are likely to run wild, the communication ought to be
verbal and face-to-face .If individuals need persuading, the
manager must give himself the opportunity to talk to them, and try
to persuade them;
2) If the changes are complex, and individuals need time to study
them, or to refer to them later,(e.g. proposed changes t the
company pension scheme) they should be set out in writing;
3) The information should be communicated directly, not via a go
between or middleman.
h) Feedback from the people affected should be obtained. Employees should
be encouraged to ask questions and voice any doubts or worries they
might have.

Participation
A participative approach is needed for innovation; otherwise new ideas will
be stifled and discouraged. Examples of a participative approach to change
include:
d) Quality circles;
e) Talk forces; and
f) Problem solving groups
The practical difficulties with achieving participation in change are that:
e) Managers might pay lip service to participation, but do not believe in it;

61
f) Employees have suspicion about the consequences of their ideas, perhaps
that their good idea will result in lost jobs;
g) If there is no current culture of participation, it would be difficult to
introduce suddenly. Partcipation would have to be introduce gradually,
perhaps starting with one or two plot groups;
h) Participation is sometimes impossible.

3.7 ACCEPTANCE OF CHANGE


It takes time for change to get accepted. The three phases and eight stages in the
process of accepting change are as follows:
c) Phase 1:Preparation phase
Stage 1 Contact-First knowledge that a change is in the air;
Stage 2 awareness-Knowledge that change will happen;
d) Phase 2: acceptance phase
Stage 3 Understanding-Gaining an understanding of the nature and purpose
of the change;
Stage 4 Positive perceptions Developing a positive view towards the
change, and accepting the need for it;
c)Phase 3: Commitment phase
Stage 5 Installation-The change becomes operational;
Stage 6 Adoption-The change has been in force for long enough and its
value has become apparent;
Stage 7 Institutionalization-The change has been in for long enough to
become routine and the norm;
Stage 8 Internalization-Individuals are highly committed to the change
because it is now congruent with their personal interests, goals and value
systems.

4.0 THE OLD CULTURE BEFORE BPSR;


The culture of an organization manifests in the employees’ code of ethics
and conduct and more importantly, the ways of doing things in that
organization. First Bank’s culture is formally codified in the staff Handbooks
and serves as a guide to harmonize the behavioural patterns amongst all staff
and also to endanger team spirit.

Culture is defined as “the set of values, beliefs, understanding and norms that
members of first Bank share and which determines in large degree, how
members act.

62
Before the introduction of BPR, First bank’s organization culture can be
described as a mixture of:
o Written rules in the Staff Handbooks;
o Unwritten rules of conducts inherited from the long years of existence in
Nigeria and the way things are conventionally done in the old days;
o Pervading attitudes of its personnel; and
o Work practices adopted by the personnel.

WRITTEN RULES
The written rules of First bank before the introduction of BPR-This is
contained in all the staff handbooks and it includes such issues as the Vision
and mission of the bank, the personnel philosophy, the banks expectations from
the staff and the staff expectations from the bank.

CORE VALUES
The core values of the bank were:
o Integrity;
o Professionalism;
o Customer focus (Arm-chair banking);
o Team work and
o Conservative conventions.
Thesevalues can be better expanded as follows:
o Integrity-Fidelity,confidentiality,promoting virtues,honesty and
transparency;
o Professionalism-Ethics of banking,’courtesy’,respect and transparency
in business practice;
o Customer focus-He was seen as the king but before BPR, there was a
culture of arm-chair banking in which the bankers expected the
customers to chase them rather than the other way round;
o Teamwork-The success of one is the success of everyone;

ATTITUDES AND PRACTICES

First bank recognized the divergence in culture of Nigerians emanating from


their diverse background; this informed the guidelines for employees
concerning the following attitudes and practices within and sometimes outside
the bank:

63
o Dress Code for male and female divided into –business, corporate and
business casuals;
o Verbal and non-verbal communication within and outside the bank;
o Banking environment ethics;
o Personal hygiene;
o Customer service-as best as possible to satisfy the customers;
o Conduct at meetings
o Management style;
o Employee profile;
o Interpersonal relationships;
o Reward system-to be in line with collective agreements;
o Evaluation method-the old system oif staff appraisal that are highly
impersonal and of doubtful integrity;
o Structure Pattern-that are highly hierarchical and based on regional/zonal
arrangement and empowerment;
o Physical environment-just as in the old ways with good structures but not
contemporary and not near what the new generation banks are offering;

5.0 CORPORATE CULTURE CHANGE PROJECT;

The Time Table of the implementation of the century II project shows the
followings:
1) New organization structure was approved by the Board of Directors and
implemented with effect from 1st January, 1998;
2) By December, 1997,the following milestones had been achieved
-The respective Strategic business Units (SBUs) and Strategic
-Resource Functions (SRFs) were put in place;
key appointments made to the SBUs and SRFs;
-A number of Branch Reengineering (3) Niger House, Ikeja Industrial
Estate and Abuja branches were reengineered;
-Positions to new manning levels were filled;
3) By January 1998,Mr D.O. Abas, erstwhile AGM, Financial Control were
appointed as the new Coordinator of the Century II project.
-Two more branches,NIJ House and marina branches were reengineered
on 15th,December 1997, and 2nd January,1998;
-Customers in the reengineered branches enjoy prompt and efficient
services provided by courteous and well equipped staff operating in a
customer friendly environment;

64
-Waiting time for all banking activities has been reduced while on-the –
counter transactions now take an average time of three minutes;
ten branches were strategically planed to be reengineered
4) By February,1998-series of early retirement incentive packages for
members of staff who have served the bank meritoriously over the years and
wish to opt for early retirement were announced;
-Branch reengineering process now being handled by First bankers

5)By December 1998,the management of the bank were quite satisfied that the
bank’s restructuring project through reengineering techniques is yielding
effectiveness and efficiency and realized that in order to achieve maximum
effectiveness, it is necessary to start a new phase of the project which was titled
the CULTURE CHANGE PROJECT.
Series of courses were undertaken in order to sensitize the senior and junior
staff of the new programme.The four Consultants were appointed to conduct a
diagnostic report.
The project was designed to reorientate work attitudes amongst staff members
towards providing- more qualitative service to the bank’s customers.
By January 1999,various employees Focus Sessions had been held for different
cadres of staff at both Head Office and Regional operations.
The objectives of these sessions were:
o To assess the strength of First Bank’s current culture;
o To explore the cultural issues which staff members consider as crucial
factors for the culture of the bank;
o Identify or synthesize a desired culture for CenturyII.

After the series of seminars and workshops on the Employee Focus Sessions,
reports by the Consultants were written and submitted and by October 1999,the
Culture Confirmation Retreat for Staff members of different Regional offices
were held. The last of the sessions was held at Enugu.at the sessions, the
findings of the diagnostic reports were presented by the Consultants and the
conclusions in the report generated a lot sensitive reactions from participants as
issues raised were analyzed thoroughly in a bid to revalidate and reconfirm the
attributes of the desired culture for the Bank.
Thereafter, participants were placed in groups to further deliberate on the
findings of the Consultants during the breakout sessions.

65
At the end of the sessions, a presentation of each group’s deliberation was made
.The highlights are presented below as a summary of the feedback from the East
Banking Operations:-
o The 5% forced exit policy should be abolished in order to allay fears of
job insecurity;
o Medical benefits for junior staff and Pensioners should be reviewed
upwards;
o Retirement Ages for male and female employees should be uniform;
o Recruitment of middlr management personnel into the bank should be
done sparingly and only for positions requiring high technical skills;
o Salaries and allowances should be increased in order to enhance staff
esteem and productivity;
o Permanent Drivers should be employed in order to prevent contract
Drivers from driving special vans because of the security risks involved;
o An appropriate dress code for members of staff should be implemented
immediately;
o Pay-For Performance should exist alongside profit sharing;
o Appraisal review committees should be courageous enough to overturn
biased appraisals in order to enthrone meritocracy;
o Staff found to be resistance to change should be sanctioned.

In pursuant of the project a Culture Implementation Committee was constituted


in November 199 to facilitate the prompt implementation of the Exco decisions
on recommendations by the Culture Change Consultants. The four-man
committee was headed by the Executive Director (Strategic Resource). Other
members are the Head, human Capital management, Chief Inswpector,
Principal Manager, manpower Planning/career Development who is the
Secretary of the committee.
So far so good, the dress code was emphasized on a pilot scheme. Front line
staff in 25 selected branches was to wear approved uniforms. Dress code were
to be specified for Relationship managers and all officers were expected to be
as usual dress smartly pending when the dress code will cover all staff.

With the above enumeration of the steps taken to change and reform ythe
culture of First Bank Plc,there is no doubt that the management of the Bank had
performed wonderfully and whichever of the staff who wants to oppose the
changes had better find another employment because these changes had come to
stay.

66
Although ,the planning and implementation had been professionally thorough,
there are still some complaints by staff over recruitment of staff of some banks
over their head and usages of staff that are junior to them handling higher
responsibility over their heads. these issues are such that the personnel
functionaries can handled as part of their routine assignment as it is very
difficult to satisfy everybody

6.0SUGGESTIONS FOR COPING WITH CORPORATE CULTURE


CHANGE PROBLEMS;

In view of the foregoing, the only suggestions that we could give is for the
management of the bank to continue to conduct more attitude survey
programmes so that they can be aware of staff attitude to work and be able to
make any correction where possible.
The conduct of work climate survey could be done every three years so as to be
able to be comprehensively informed of the corporate culture of the bank.

7. CORPORATE GOVERNANCE:EFFECTIVE
TECHNIQUES

67
8. MANAGING CORPORATE POLITICS
CONSTRUCTIVELY

68
9. SUCCESSION PLANNING TECHNIQUES

69
10. CORPORATE CULTURE MANAGEMENT

THE CULTURE OF AN ORGANISATION

70
The culture of an organization manifests in the employees’ code of ethics
and conduct and more importantly, the ways of doing things in that
organization.
First Bank’s culture is formally codified in the staff Handbooks and serves as a
guide to harmonize the behavioral patterns amongst all staff and also to
endanger team spirit.

Culture is defined as “the set of values, beliefs, understanding and norms


that members of an organisation share and which determines in large
degree, how members act.

Before the introduction of BPR, First bank’s organization culture can be


described as a mixture of:
o Written rules in the Staff Handbooks;
o Unwritten rules of conducts inherited from the long years of existence in
Nigeria and the way things are conventionally done in the old days;
o Pervading attitudes of its personnel; and
o Work practices adopted by the personnel.

WRITTEN RULES
The written rules of First bank before the introduction of BPR-This is
contained in all the staff handbooks and it includes such issues as the Vision
and mission of the bank, the personnel philosophy, the banks expectations from
the staff and the staff expectations from the bank.

CORE VALUES
The core values of the bank were:
o Integrity;
o Professionalism;
o Customer focus (Arm-chair banking);
o Team work and
o Conservative conventions.
Thesevalues can be better expanded as follows:
o Integrity-Fidelity,confidentiality,promoting virtues,honesty and
transparency;
o Professionalism-Ethics of banking,’courtesy’,respect and transparency
in business practice;

71
o Customer focus-He was seen as the king but before BPR, there was a
culture of arm-chair banking in which the bankers expected the
customers to chase them rather than the other way round;
o Teamwork-The success of one is the success of everyone;

ATTITUDES AND PRACTICES

First bank recognized the divergence in culture of Nigerians emanating from


their diverse background; this informed the guidelines for employees
concerning the following attitudes and practices within and sometimes outside
the bank:
o Dress Code for male and female divided into –business, corporate and
business casuals;
o Verbal and non-verbal communication within and outside the bank;
o Banking environment ethics;
o Personal hygiene;
o Customer service-as best as possible to satisfy the customers;
o Conduct at meetings
o Management style;
o Employee profile;
o Interpersonal relationships;
o Reward system-to be in line with collective agreements;
o Evaluation method-the old system oif staff appraisal that are highly
impersonal and of doubtful integrity;
o Structure Pattern-that are highly hierarchical and based on regional/zonal
arrangement and empowerment;
o Physical environment-just as in the old ways with good structures but not
contemporary and not near what the new generation banks are offering;

5.0 CORPORATE CULTURE CHANGE PROJECT;

The Time Table of the implementation of the century II project shows the
followings:
4) New organization structure was approved by the Board of Directors and
implemented with effect from 1st January, 1998;
5) By December, 1997,the following milestones had been achieved
-The respective Strategic business Units (SBUs) and Strategic
-Resource Functions (SRFs) were put in place;
key appointments made to the SBUs and SRFs;

72
-A number of Branch Reengineering (3) Niger House, Ikeja Industrial
Estate and Abuja branches were reengineered;
-Positions to new manning levels were filled;
6) By January 1998,Mr D.O. Abas, erstwhile AGM, Financial Control were
appointed as the new Coordinator of the Century II project.
-Two more branches,NIJ House and marina branches were reengineered
on 15th,December 1997, and 2nd January,1998;
-Customers in the reengineered branches enjoy prompt and efficient
services provided by courteous and well equipped staff operating in a
customer friendly environment;
-Waiting time for all banking activities has been reduced while on-the –
counter transactions now take an average time of three minutes;
ten branches were strategically planed to be reengineered
4) By February,1998-series of early retirement incentive packages for
members of staff who have served the bank meritoriously over the years and
wish to opt for early retirement were announced;
-Branch reengineering process now being handled by First bankers

5)By December 1998,the management of the bank were quite satisfied that the
bank’s restructuring project through reengineering techniques is yielding
effectiveness and efficiency and realized that in order to achieve maximum
effectiveness, it is necessary to start a new phase of the project which was titled
the CULTURE CHANGE PROJECT.
Series of courses were undertaken in order to sensitize the senior and junior
staff of the new programme.The four Consultants were appointed to conduct a
diagnostic report.
The project was designed to reorientate work attitudes amongst staff members
towards providing- more qualitative service to the bank’s customers.
By January 1999,various employees Focus Sessions had been held for different
cadres of staff at both Head Office and Regional operations.
The objectives of these sessions were:
o To assess the strength of First Bank’s current culture;
o To explore the cultural issues which staff members consider as crucial
factors for the culture of the bank;
o Identify or synthesize a desired culture for CenturyII.

After the series of seminars and workshops on the Employee Focus Sessions,
reports by the Consultants were written and submitted and by October 1999,the

73
Culture Confirmation Retreat for Staff members of different Regional offices
were held. The last of the sessions was held at Enugu.at the sessions, the
findings of the diagnostic reports were presented by the Consultants and the
conclusions in the report generated a lot sensitive reactions from participants as
issues raised were analyzed thoroughly in a bid to revalidate and reconfirm the
attributes of the desired culture for the Bank.
Thereafter, participants were placed in groups to further deliberate on the
findings of the Consultants during the breakout sessions.
At the end of the sessions, a presentation of each group’s deliberation was made
.The highlights are presented below as a summary of the feedback from the East
Banking Operations:-
o The 5% forced exit policy should be abolished in order to allay fears of
job insecurity;
o Medical benefits for junior staff and Pensioners should be reviewed
upwards;
o Retirement Ages for male and female employees should be uniform;
o Recruitment of middlr management personnel into the bank should be
done sparingly and only for positions requiring high technical skills;
o Salaries and allowances should be increased in order to enhance staff
esteem and productivity;
o Permanent Drivers should be employed in order to prevent contract
Drivers from driving special vans because of the security risks involved;
o An appropriate dress code for members of staff should be implemented
immediately;
o Pay-For Performance should exist alongside profit sharing;
o Appraisal review committees should be courageous enough to overturn
biased appraisals in order to enthrone meritocracy;
o Staff found to be resistance to change should be sanctioned.

In pursuant of the project a Culture Implementation Committee was constituted


in November 199 to facilitate the prompt implementation of the Exco decisions
on recommendations by the Culture Change Consultants. The four-man
committee was headed by the Executive Director (Strategic Resource). Other
members are the Head, human Capital management, Chief Inswpector,
Principal Manager, manpower Planning/career Development who is the
Secretary of the committee.
So far so good, the dress code was emphasized on a pilot scheme. Front line
staff in 25 selected branches was to wear approved uniforms. Dress code were

74
to be specified for Relationship managers and all officers were expected to be
as usual dress smartly pending when the dress code will cover all staff.

With the above enumeration of the steps taken to change and reform ythe
culture of First Bank Plc,there is no doubt that the management of the Bank had
performed wonderfully and whichever of the staff who wants to oppose the
changes had better find another employment because these changes had come to
stay.
Although ,the planning and implementation had been professionally thorough,
there are still some complaints by staff over recruitment of staff of some banks
over their head and usages of staff that are junior to them handling higher
responsibility over their heads. these issues are such that the personnel
functionaries can handled as part of their routine assignment as it is very
difficult to satisfy everybody

6.1SUGGESTIONS FOR COPING WITH CORPORATE CULTURE


CHANGE PROBLEMS;

In view of the foregoing, the only suggestions that we could give is for the
management of the bank to continue to conduct more attitude survey
programmes so that they can be aware of staff attitude to work and be able to
make any correction where possible.
The conduct of work climate survey could be done every three years so as to be
able to be comprehensively informed of the corporate culture of the bank.

75
76
11. TACTICAL THINKING TECHNIQUES

77
12. CORPORATE PERFORMANCE ANALYSIS

78
13. WORK CLIMATE MANAGEMENT

79
14. EFFECTIVE RIGHTSIZING STRATEGIES

80
15. LATEST MANAGEMENT THOUGHTS

81
16.MANAGING WITH COMPUTERS.

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CHANGE
MANAGEMENT

83
CONTENTS
10.INTRODUCING CHANGE

11.CHANGE AND THE ADAPTIVE ORGANISATION

12.ORGANISATIONAL DECLINE AND CHANGE

13.PLANNING TO CHANGE

14.RESISTANCE TO CHANGE

15.OVERCOMING RESISTANCE TO CHANGE

16.THE CHANGE PROCESS

17.THE KEYS TO SUCCESSFUL CHANGE

18.ACCEPTANCE OF CHANGE

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2. INTRODUCING CHANGE

The ability to introduce change with minimum resistance is a key managerial


skill since change is a necessary way of life for all organization. Even if an
organization intrinsically does not want to change, it must eventually respond to
movements in the social and economic environment if it is to survive.
Although it is relatively easy and straightforward to implement change on
machine or materials, or even on animals, it is however, much more arduous to
cope with people because their responses are far less programmed or much less
programmable.
The following points should therefore be borne in mind:-
d. Change is one of those situations in which the ‘them/us’ conflict arises in
its most virulent form,unless steps are deliberatively taken to dampen
down the issues.Many employees apparently lack any internal
commitment to change and are therefore extremely reluctant to take any
initiative necessary for the change to be successful;
e. Change takes time to plan and operationalise.If the change is required
for the solution of a specific and defined problem,it is quite likely that the
problem itself will have changed bt he time the cgange process is
completed;
f. Some degrees of participation in the change process nearly always helps
to reduce levels of conflict,stress and tension.

Yet even if the participative methods are used,their effectiveness may be


jeopardized if they are not presented properly at the initial stage,because first
impression arecrucial in determining individuals’subsequent attitudes,not
only to the proposed change,but also to the trustworthiness of management
as the change process unfolds.

85
The meaning of
change
When we discuss change,we might be discussing:
c. The original source of change-usually,an environmental change; or
d. A change within the organization which is made in response to another
change.
In other word,one change can lead to another and another and
another.Buckly and Perkins (1984) made a distinction between change and
transformation.
c. Change is gradual and small;
d. Transormation is change on a significant scale.
1. Organisational transformation includes major changes in job
definition,reporting lines(lines of authority etc );
2. Transformation is the way the system operates involves major
changes in communication patterns and working relationships
and processes;
3. Transformation in employee consciousness involves major
changes in the way that things are viewed, involving shifts in
attitudes, beliefs and myths.

The nature of change


Changes can be brought about in a variety of different ways, such as new
technology, and so forth. Here are some examples of the different types of
change.
b. New Technology
1. Computerization;
2. New Products;
3. New working methods;
4. Better management information systems.
b. Reorganisation
6. A company is taken over, and so has to adopt the organization
policies of the new parent company;

86
7. Growth causes reorganization into divisions,or more specialist
functional departments;
8. Divestment of business;
9. A drive to keep down costs leads to cost cutting measures (job
losses);
10.The incoming of a new political leadership in Government may
lead to massive reorganization that lead to changes.

c.Working Conditions
6. New offices;
7. Shorter working week;
8. More varied work times;
9. More outplacement of work, i.e. giving work to outsiders;
10.Greater emphasis on occupational health.

d.Personnel policies
1. Changes in rules and procedures-e.g. about smoking at work;
2. Promotions,transfers,separation of employees, training and
development.

e.Philosophy of management (relations between management and


employees)
5. New senior manager introduces new style of leadership;
6. Attitudes of managers and employees change over time-e.g.
with greater participation of subordinates in decision-making;
7. Communication with employees becomes more open;
8. Greater collaboration between management and trade unions in
labour relations.

Peter Drucker’s view is that there are certain kinds of change which are
specially relevant for organization today:
a. The explosion of new technologies, producing new industries and
service sectors, whilst simultaneously ensuring the collapse of
others;
b. The move from a national to an international and ultimately to a
global economy;
c. The emergence of new pluralistic institutions: to pose political,
philosophical and spiritual challenges for the continuance of the
status quo.

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d. The new universe of knowledge based on mass education and its
implication for work, leisure and leadership.

2.CHANGE AND THE ADAPTIVE ORGANISATION

How Do Organization Change?


Most organizations exist in a changing environment and must adapt in order to
survive. although formalization and bureaucratic organization helps a small
company to develop into a large one, it may be insufficient to enable the
organization to survive continuing environmental changes.

An organization adapts to change in one of three ways:


d. By Deliberation:-The organization seeks to reinforce the formal structure
by more formal structures. companies or governments might establish
committees with powers to investigate, recommend or even to make
decisions. special project teams might be created, or new departments
established (for example the corporate planning department or economic
advisory section);
e. By Reproduction:-Large national organizations might delegate authority
(decentralize) to regional headquarters.Unfortunately,decentrialisation of
this sort usually results in regional which duplicate the former national
structure: bureaucracy in the same form, but on a smaller scale. Unless
the environment is fairly stable, such adaptation is likely to be inefficient;
f. By Differentiation:- The organization employs different structures with
different cultures, in separate parts of the organization, using a
contingency approach-choosing the most suitable structure for each
particular situation:
1. stable, routine work will be performed in a formalized bureaucratic
manner (role culture);
2. adaptation to change (development of new products and new
market, or meeting environmental threats) should be organized on
a task basis (task culture);
3. any sudden crisis might have to be dealt with by key individuals
with emergency powers (power culture);
4. Overall policy decisions of the organization should be set by a
ruling body of key individuals (board of directors, the Cabinet of
government ministers, or the supreme policy-making councils of
other organizations) (power culture).

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One culture should not be allowed to swamp the
organization.However,where differentiation, on a contingency basis,
is applied in an organization structure, there is a potential for conflict.
Project teams might resent policy decisions of senior managers
because they believe them to be inappropriate to the problems of the
organization; line managers might resent ‘free-wheeling’
undisciplined’ members of project teams. The management of an
organization must be capable of reconciling differences and
integrating the work of all employees towards a common aim.

3.ORGANISATIONAL DECLINE AND CHANGE

SYMPTOMS OF CORPORATE DECLINE


s. Declining profitability;
t. Decreasing sales volume;
u. Restrictions on the dividend policy;
v. Financial engineering (e.g. changes in accounting policies and
periods, delays in publishing accounts, sudden changes in
Auditors);
w. Frequent changes in senior executives;
x. Falling market share;
y. Evidence of a lack of planning;
z. Over bloated manpower structure;
aa. General and obvious laxity in operational systems.

WARNING SIGNS ABOUT ORGANISATIONAL DECLINE

s. Excess Personnel-often coupled with too many levels in the


hierarchy and too many jobs whose titles begin with words
like ‘assistant’ or’ Deputy’ ( a clear indication that such jobs
do not add value);
t. Tolerances of incompetence-Poorly performing individuals
are shunted around the organization or are given non-
essential roles within an ‘elephants’ graveyard’.
u. Cumbersome administrative procedures-with excessive
paperwork and slow approval systems before anything
substantive can be done;

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v. Disproponate staff power- with departments like the
personnel function having too much influence in the
development of strategies;
w. Replacement of substance with form- so that formal
adherence to procedures becomes more important than the
achievement of performance outcomes;
x. A scarcity of goals and benchmarks-Because of a lack of
common vision, decision making becomes a lengthy process,
with most of the time spent in sorting out the criteria for the
decision;
y. Fear of embarrassment and conflict-An emphasis on mistake-
avoidance and not rocking the boat leads to’ group link’ and
the suppression of dissent;
z. Loss of effective communication-Essential information is
withheld;
aa. Outdated organizational structure-especially with a strong
emphasis on status,titles,differentials and centralized
decision-making.

CAUSES OF DECLINE AND STRATEGIES TO DEAL WITH THEM


m. Poor management-This should be dealt with by the introduction of new
management and perhaps organization restructuring;
n. Poor Financial Controls-This can be dealt with by new management and
financial control systems which are tighter and more relevant;
o. High Cost Structure-Cost reduction is important in improving margins in
the long term. New products-market strategies should be adopted for the
short term (to boost profitably and cash flow);
p. Poor marketing: The firm’s activities can be deployed;
q. Competence weakness-This is countered by cost reduction, improved
marketing, asset reduction (e.g. disposing of subsidiaries, selling
redundant fixed assets etc)even acquisition, and of course, a suitable
product-market strategy;
r. Big projects acquisitions-acquisitions can go bad or there can be a failure
of a major project (e.g. Rolls Royce aerospace once went into
receivership because of thye cost of developing a particular engine).s

PLANNING FOR CHANGE


Organizational changes need careful planning. This is true of all but the
smallest changes, and it is specially true of major changes. A systematic

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approach should be established for planning and implementing changes. a
step- by step model for change is shown below:-
A MODEL FOR CHANGE
9. Determine the need or desire for change in a particular area;
10.prepare a tentative plan
Brainstorming sessions are a good idea, since alternatives for
change should be considered;
11.Analyze probable reactions to change;
12.Make a final decision from the choice of alternative options
The decision should be taken either by group problem solving
(participative) or by a manager on his own (coercive);
5.Establish a timetable for change
• ‘Coerced’ changes can probably be implemented faster,
without time for discussion;
• The speed of implementation that is achievable will depend
on the likely reactions of the people affected all in
favour,half in favour,all against etc;
• Identify those in favour of the change and perhaps set up a
pilot programme involving them. Talk with those who resist
the change;
6.Communicate the plan for change
This is really a continuous process, beginning at step 1 and going
through to step B;
7.Implement the change. Review the change
Continuous evaluation and modification is needed.

FORCE FIELD ANALYSIS


Force field Analysis is a technique for visualizing the change
processIt is based on the idea that in any group or organizational
situation,there is an interplay of restraining and driving forces that
keeps things as they are.s force Field analysis maps the forces that
are pushing toward the preferred state and the restraining forces
which are pushing back to the current state.They can then be
presented in a chart.
The example below describes a public sector organization whose
management are introducing a performance review system:

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Driving Forces Current state Restraining Ideal
(for change) forces Position
(resistance)

A requirement Cynicism about


Of new legislation change another
Fad

Existing systems
Are sufficient

Professional Trade Union concern


Commitment over effects on
To report to jobs and working
Controlling the conditions
Organization

Requirement to
Report to
External agencies Complexity of
Producing such
Reviews

A concern for
Quality Cost of carrying

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Out reviews.

Forces can be impersonal(e,g. a new law,new technology),personal


(the commitment of a new leader),institutional (trade unions),or
environmental (competitors).lines of varying thickness represent
the probable strength of different forces.

The Force field model suggests two ways of dealing with change:-
e. Overcoming resistance,through strengtheneing driving
forces.people associated with the driving forces can be
coopted to educate opponents;
f. Weakening the restraining forces by:
1. persuasion (e.g. getting endorsement by a supposedly
neutral consultant,although vested interests will have
to be addressed directly);
2. Concession-buying people off;
3. Involving people ind diagnosing problem situations
(e.g. in quality circles),which wins over hearts and
minds;
4. Coercion.

Champion Of Change Model:The Role Of The Change Agent

The champion of change model recognizes the importance of change


being led by a change agent,who may be an individual or occasionally a group.
j. Senior management decide on broad terms what is to be done;
k. They appoint a change agent to drive it through. Senior Management
must: -

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1. Support the change agent, if the change provoke s conflict between the
agent and interest groups in the organization;
2.Review and monitor the progress of change;
3.Endorse and approve the changes, and then ensure that they are publicized
c.The change agent has to win the support of functional and operational
managers,who have to introduce and enforce the changes in their own
departments.The champion of change has to provide advice and
information,as well as evidence that the oldways are nolonger acceptable;
l. The change agent galvanizes managers into action and gives them any
necessary support. The managers ensure that the changes are
implemented operationally, in the field. Where changes involve say a
new approach to customercare,it is the workers who are responsible for
ensuring the effectiveness of the change process.

It is only after change has been implemented at operational level that the
change agent’s role becomes of little importance.

5.RESISTANCE TO CHANGE

Change may affect individuals in several areas :-


g) There may be physiological changes in a person’s life, both as the natural
product of development, maturation and ageing, and as the result of
external factors.( A change in the pattern of shift working, for example,
may temporarily throw the individual’s eating, waking and sleeping
routine out of tune with the body’s ‘clock’, or sense of time);
h) Circumstantial Changes:-living in a new house, stabilizing new
relationships, working to new routines-will involve letting go of things,
perhaps unlearning old knowledge, and learning new ways of doing
things;
i) Above all change affects s individuals psychologically:-
1. It may create feelings of disorientation before new circumstances
have been assimilated: you may have felt this on waking up in an
unfamiliar room, or performing a familiar task in an unfamiliar
setting at college or at work;
2. Uncertainty may lead to insecurity, especially in changes involving
work and or fast acclimatization(a short learning curve);
3. The business of forging new relationships can be fraught with
personal insecurity, risk of rejection, the feeling of being an
outsider.

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Resistance To Change At Work
Resisting change means attempting to preserve the existing state of affairs
against pressure to alter it .despite the possibly traumatic effects of change per
se,as discussed above, most people do not in fact resist it on these grounds
alone. Many people long for change, and have a wealth of ideas about how it
should be achieved.

Sources of resistance to change itself may include age and inflexibility,strong


needs for security,emotional stability etc.Sources of resistance toparticular
proposed changes (e.g. in location, methods of working,pay structure) may
include the following:-
i) Attitudes or beliefs,perhaps arising from cultural,religious or class
influences (for example resistance to changes in the law on Sunday
trading);
j) Loyalty to a group and its norms,perhaps with an accompanying rejection
of other groups,or outsiders’ (for example in the case of a relocation so
that two departments share office space).Groups tend to close ranks if
their independent identity is threathened;
k) Habit or past norms.This can be a strong source of clinging to old
ways,whether out of security needs,respect for tradition,or the belief that
you can’t teach an old dog new tricks (for example resistance to the
introduction of new technology);
l) Politics-in the sense of resisting changes that weaken the power base of
the individual or group or strengthen a rival’ position.Changes involving
increased delegation may be strongly resisted by senior management,for
example.

Common Causes Of Resistance


i) Self Interest: If the status quo is perceived to be comfortable,or
advantageous to the individual or the group;
j) Misunderstanding and distrust:If the reasons for,or the nature and
consequences of the change have not been made clear.This aggravates
uncertainty and suspicion about the perceived threat;
k) Contradictory assessments:Different individuals’evaluation of the likely
costs andbenefits of some change,Resistance arises from individuals
perception of the undesirability of change;
l) Low tolerance of change itself:Differences in tolerance of
ambiguity,uncertainty,etc.

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Reaction To Proposed Change
a.Acceptance-(whetherenthusiastic espousal,cooperation,grudging cooperation
or resignation);
b.Indifference-(usually where the change does not directly affect the individual
apathy,lack of interest,inaction);
m. Passive resistance(refusal to learn,working to rule);
n. Active resistance-(deliberate spoiling,go slows,deliberate
errors,sabotage,absenteeism or strikes).

Staff Reactions That subtly reinforce resistance to change


Managers should learn to recognize the following esponses that may look like
resistance on the face of things:
k) Pleas of ignorance (I need more information);
l) Delayed judgements ( let’s wait and see…),perhaps stalling for time with
comparisons(There are other ways…);
m) Defensive stances (This isn’t going to work;It ‘d be tooexpensive;It’s the
wrong time to…);
n) The display of various personal insecuritiesI won’t be able to
cope,Iwon’t see my team anymore,we won’t have control over our
planning anymore;Why can’t we just go on as we are?)fear
anxiety,resentment at the manner of change,frustration at perceived
losses;
o) Withdrawal ,or disowning of the change( Oh well,on their heads be it;I’m
not interested in flexitime anyway).

6.OVERCOMING RESISTANCE TO CHANGE


When dealing with resistance to changes,managers should consider
the pace,manner and scope of change.
Pace Of Change
The more gradual the change, the more time is available for questions
to be asked, reassurances to be given and retraining (where necessary)
embarked upon. Many information systems are implemented slowly;
e.g. via pilot testing, to iron out bugs and let staff be acclimatized to
the new system.
Presenting the individual concerned with a fait accompli (let’s get it
over with-they ‘ll just have to get used to it)may short circuit
resistance at the planning and immediate implementation stages. But
it may cause a withdrawal reaction if the change is radical and

96
perceived as threatening and is likely to surface later, as the change is
consolidated.

The manner of change


The manner of change in which a change is put across is very
important: the climate must be prepared, the need made clear, fears
soothed and if possible the individuals concerned positively motivated
to embrace the changes as their own.
m. Confront Resistance: Talking through areas of conflict may
lead to useful insights and the adapting of the programme of
change to advantage;
n. Keep people informed: Information should be sensible, clear,
consistent and realistic: there is no point issuing information
which will be seen as a blatant misrepresentation of the
situation;
o. Explanatory: The change can be ‘sold’ to the people :people
can be convinced that their attitudes and behaviours need
changing;
p. Skills Training: Learning programme for any new skills or
systems necessary will have to be designed according to the
abilities, previous learning experience etc of the individuals
concerned;
q. Empathy: Putting yourself in the shoes of the other person and
getting to know the people involved in and affected by changes
enables their reactions to be anticipated;
r. The degree to which consultation or participation will be
possible(or genuine) will depend on management’s attitude
towards the competence and trustworthiness of its workplace.

Scope Of Change
The scope of change should be carefully reviewed:
g) Total transformation will create greater insecurity-but also greater
excitement, if the organization has the kind of innovative culture that can
stand it-than moderate innovation;
h) There may be hidden changes to take into account: a change in
technology may necessitate changes in work methods, which may in turn
result in the breaking up of work groups;
i) Management should be aware of how many different aspects of their
employees lives they are proposing to alter-and therefore on how many
fronts they are likely to encounter resistance.

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7.THE CHANGE PROCESS
The three –stage approach to changing human behaviour are as follows:

UNFREEZE attitudinal/ REFREEZE


Existing behaviour behavioural CHANGE new behaviour

Unfreeze is the most difficult (and in many cases neglected) stage of the
process, concerned mainly with selling the change, with giving individuals or
groups a motive for changing their attitudes,values,behaviour,systems or
structures.
e) If the need for change is immediate, clear and perceived to be associated
with the survival of the individual or group (for example, change in
reaction to an organizations crisis) the unfreeze stage will be greatly
accelerated. Routine changes may be harder to sell than transformational
ones, if they are perceived to be unimportant and not survival based.
f) Culture change is perhaps the hardest of all.

Change is the second stage, mainly concerned identifying what the new,
desirable behaviour or norm should be, communicating it and encouraging
individuals and groups to own the new attitude or behaviour,To be successful,
the new ideas must be shown to work.

Refreeze is the final stage, implying consolidation or reinforcement of the new


behaviour.Positive reinforcement (praise, reward etc.) or negative
reinforcement (sanctions applied to those who deviate from the new
behaviour)may be used.

8.THE KEYS TO SUCCESSFUL CHANGES


The three keys to successful change are empathy, communications and
participation.
Empathy
Empathy means putting yourself in the shoes of the other person and getting to
know the people involved in and affected by changes. The manager should
consider each person’s (or groups) reaction to change accordingly. In other
words: If I were in their shoes, what would I be thinking and how would I be
reacting”

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Communication
Communication is not just telling subordinates what to do, it is also the process
of creating an understanding. The aspects of communication, which might be
particularly relevant to change, are as follows:
i) Who needs to know who else will want to know? The people should be
told.
j) When should the information be given about planned change?
1) Bosses ought to be told before subordinates;
2) Trade Unions officials ought to be told before workers.
k) How should the information be given? Should it be given verbally,face-
to-face?Or in writing? Or a mixture of both?
1) If emotions are likely to run wild, the communication ought to be
verbal and face-to-face .If individuals need persuading, the
manager must give himself the opportunity to talk to them, and try
to persuade them;
2) If the changes are complex, and individuals need time to study
them, or to refer to them later,(e.g. proposed changes t the
company pension scheme) they should be set out in writing;
3) The information should be communicated directly, not via a go
between or middleman.
l) Feedback from the people affected should be obtained. Employees should
be encouraged to ask questions and voice any doubts or worries they
might have.

Participation
A participative approach is needed for innovation; otherwise new ideas will
be stifled and discouraged. Examples of a participative approach to change
include:
g) Quality circles;
h) Talk forces; and
i) Problem solving groups
The practical difficulties with achieving participation in change are that:
i) Managers might pay lip service to participation, but do not believe in it;
j) Employees have suspicion about the consequences of their ideas, perhaps
that their good idea will result in lost jobs;
k) If there is no current culture of participation, it would be difficult to
introduce suddenly.Partcipation would have to be introduce gradually,
perhaps starting with one or two plot groups;

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l) Participation is sometimes impossible.

9.ACCEPTANCE OF CHANGE
It takes time for change to get accepted. The three phases and eight stages in the
process of accepting change are as follows:
e) Phase 1:Preparation phase
Stage 1 Contact-First knowledge that a change is in the air;
Stage 2 awareness-Knowledge that change will happen;
f) Phase 2: acceptance phase
Stage 3 Understanding-Gaining an understanding of the nature and purpose
of the change;
Stage 4 Positive perception-Developing a positive view towards the
change, and accepting the need for it;
c)Phase 3: Commitment phase
Stage 5 Installation-The change becomes operational;
Stage 6 Adoption-The change has been in force for long enough and its
value has become apparent;
Stage 7 Institusionalisation-Yhe change has been in for long enough to
become routine and the norm;
Stage 8 Internalization-Individuals are highly committed to the change
because it is now congruent with their personal interests, goals and value
systems.

100
101
COPING
WITH
CORPORATE
CULTURE
AND

102
EMPLOYEE
PROBLEMS
UNDER BPR

CONTENT
3. THE REENGINEERING ‘MANIFESTO’;

4. METHODOLOGY OF BPR;

3. REACTIONS TO THE CHANGES;

4.THE OLD CULTURE BEFORE BPR;

5.CORPORATE CULTURE CHANGE PROJECT;

7. SUGGESTIONS FOR COPING WITH CORPORATE CULTURE


CHANGE PROBLEMS;

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3. THE REENGINEERING ‘MANIFESTO’
The essential features for the new world of work have been eloquently
discussed by Michael Hammer and James Champy in Reengineering the
Corporation: A Manifesto for Business Revolution (1993). Hammer and
Campy envisage the following trends.
a) Jobs-From simple tasks to multi-dimensional work. The old model
(represented by Taylorism) offered simple tasks for simple people,
whereas the new approach reflects complex jobs for smart people;
b) Roles-From’ controlled’ or’ empowered’. In a process team
environment, people have the chance to learn more about the work
process as a complete entity, performing the role becomes more
satisfying with a greater sense of completion, closure and
accomplishment, and more learning and growth built in. The
corollary is that jobs are more challenging and difficult as the
older-style routine work is eliminated or automated;
c) Values-From protective to productive. People in organization have
to believe that they work for their customers, not for their bosses;
d) Managers-From supervisors to coaches;
e) Executives-From storekeepers to leaders;
f) Structures-From hierarchical to flat.

4. METHODOLOGY OF BPSR;

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The chief tool of BPR is a clean sheet of paper. Reengineers start from
the future and work backwards. They are unconstrained by existing
methods, people or departments. In effect, they ask,; If we were a new
company, how would we run the place? hammer points out that ‘At the
heart of reengineering is the notion of discontinuous thinking-of
recognizing and breaking away from the outdated rules and fundamental
assumptions that underlie operations’

Reengineers ask two fundamental questions about everything that


happens in organizations:’ why?’ And ‘What if’. Only when they receive
satisfactory answers to these questions do they then begin to explore
better ways of doing things. The critical questions they asked then are:
k) What is done?
l) How is it done?
m) Where is it done?
n) When is it done?
o) Who does it?
p) Why do it?
q) Why do it that way?
r) Why do it there?
s) Why do it then?
t) Why that person?
The difference between traditional approaches to efficiency improvement
and BPR is that BPR more typically breaks away from conventional wisdom
and the constraints of organizational or departmental/functional boundaries.
BPR is more concerned, too with exploiting the power of information
technology-not to automate existing procedures, but to facilitate new ones.

It is against this background of meticulous, and radical change of processes that


we shall examine the change in the Bank’s corporate culture and work climate
especially as it affected the staff of the bank. Obviously, there will be
organizational culture shock especially for the bulk of the staff who had been
used to ‘doing business as usual’

3.0 POSSIBLE REACTIONS TO CHANGES;

3.1 ORGANISATIONAL DECLINE AND CHANGE

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SYMPTOMS OF CORPORATE DECLINE
bb.Declining profitability;
cc. Decreasing sales volume;
dd.Restrictions on the dividend policy;
ee. Financial engineering (e.g. changes in accounting policies and
periods, delays in publishing accounts, sudden changes in
Auditors);
ff. Frequent changes in senior executives;
gg.Falling market share;
hh.Evidence of a lack of planning;
ii. Over bloated manpower structure;
jj. General and obvious laxity in operational systems.

WARNING SIGNS ABOUT ORGANISATIONAL DECLINE

bb.Excess Personnel-often coupled with too many levels in the


hierarchy and too many jobs whose titles begin with words
like ‘assistant’ or’ Deputy’ ( a clear indication that such jobs
do not add value);
cc. Tolerances of incompetence-Poorly performing individuals
are shunted around the organization or are given non-
essential roles within an ‘elephants’ graveyard’.
dd.Cumbersome administrative procedures-with excessive
paperwork and slow approval systems before anything
substantive can be done;
ee. Disproponate staff power- with departments like the
personnel function having too much influence in the
development of strategies;
ff. Replacement of substance with form- so that formal
adherence to procedures becomes more important than the
achievement of performance outcomes;
gg.A scarcity of goals and benchmarks-Because of a lack of
common vision, decision making becomes a lengthy process,
with most of the time spent in sorting out the criteria for the
decision;
hh.Fear of embarrassment and conflict-An emphasis on mistake-
avoidance and not rocking the boat leads to’ group link’ and
the suppression of dissent;
ii. Loss of effective communication-Essential information is
withheld;

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jj. Outdated organizational structure-especially with a strong
emphasis on status, titles, differentials and centralized
decision-making.

CAUSES OF DECLINE AND STRATEGIES TO DEAL WITH THEM


s. Poor management-This should be dealt with by the introduction of new
management and perhaps organization restructuring;
t. Poor Financial Controls-This can be dealt with by new management and
financial control systems which are tighter and more relevant;
u. High Cost Structure-Cost reduction is important in improving margins in
the long term. New products-market strategies should be adopted for the
short term (to boost profitably and cash flow);
v. Poor marketing: The firm’s activities can be deployed;
w. Competence weakness-This is countered by cost reduction, improved
marketing, asset reduction (e.g. disposing of subsidiaries, selling
redundant fixed assets etc)even acquisition, and of course, a suitable
product-market strategy;
x. Big projects acquisitions-acquisitions can go bad or there can be a failure
of a major project (e.g. Rolls Royce aerospace once went into
receivership because of thye cost of developing a particular engine).s

PLANNING FOR CHANGE


Organizational changes need careful planning. This is true of all but the
smallest changes, and it is specially true of major changes. A systematic
approach should be established for planning and implementing changes. a
step- by step model for change is shown below:-
A MODEL FOR CHANGE
13.Determine the need or desire for change in a particular area;
14.prepare a tentative plan
Brainstorming sessions are a good idea, since alternatives for
change should be considered;
15.Analyze probable reactions to change;
16.Make a final decision from the choice of alternative options
The decision should be taken either by group problem solving
(participative) or by a manager on his own (coercive);
5.Establish a timetable for change
• ‘Coerced’ changes can probably be implemented faster,
without time for discussion;

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• The speed of implementation that is achievable will depend
on the likely reactions of the people affected all in
favour,half in favour,all against etc;
• Identify those in favour of the change and perhaps set up a
pilot programme involving them. Talk with those who resist
the change;
6.Communicate the plan for change
This is really a continuous process, beginning at step 1 and going
through to step B;
7.Implement the change. Review the change
Continuous evaluation and modification is needed.

FORCE FIELD ANALYSIS


Force field Analysis is a technique for visualizing the change
process It is based on the idea that in any group or organizational
situation, there is an interplay of restraining and driving forces that
keeps things as they are. Force Field analysis maps the forces that
are pushing toward the preferred state and the restraining forces
which are pushing back to the current state. They can then be
presented in a chart.
The example below describes a public sector organization whose
management are introducing a performance review system:

Driving Forces Current state Restraining Ideal


(for change) forces Position
(resistance)

A requirement Cynicism about


Of new legislation change another
Fad

Existing systems
Are sufficient

Professional Trade Union concern


Commitment over effects on
To report to jobs and working

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Controlling the conditions
Organization

Requirement to
Report to
External agencies Complexity of
Producing such
Reviews

A concern for
Quality Cost of carrying
Out reviews.

Forces can be impersonal (e.g. a new law, new


technology),personal (the commitment of a new
leader),institutional (trade unions),or environmental
(competitors).lines of varying thickness represent the probable
strength of different forces.

The Force field model suggests two ways of dealing with change:-
g. Overcoming resistance, through strengthening driving
forces. People associated with the driving forces can be co-
opted to educate opponents;
h. Weakening the restraining forces by:
1. Persuasion (e.g. getting endorsement by a supposedly
neutral consultant, although vested interests will have
to be addressed directly);
2. Concession-buying people off;

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3. Involving people ind diagnosing problem situations
(e.g. in quality circles),which wins over hearts and
minds;
4. Coercion.

Champion Of Change Model: The Role Of The Change Agent

The champion of change model recognizes the importance of change


being led by a change agent, who may be an individual or occasionally a group.
o. Senior management decide on broad terms what is to be done;
p. They appoint a change agent to drive it through. Senior Management
must: -
1. Support the change agent, if the change provokes s conflict between the
agent and interest groups in the organization;
2.Review and monitor the progress of change;
3.Endorse and approve the changes, and then ensure that they are publicized
c. The change agent has to win the support of functional and operational
managers, who have to introduce and enforce the changes in their own
departments. The champion of change has to provide advice and
information, as well as evidence that the old ways are no longer acceptable;
d.The change agent galvanizes managers into action and gives them any
necessary support. The managers ensure that the changes are implemented
operationally, in the field. Where changes involve say a new approach to
customercare,it is the workers who are responsible for ensuring the
effectiveness of the change process.

It is only after change has been implemented at operational level that the change
agent’s role becomes of little importance.

3.3 RESISTANCE TO CHANGE

Change may affect individuals in several areas: -


j) There may be physiological changes in a person’s life, both as the natural
product of development, maturation and ageing, and as the result of
external factors.( A change in the pattern of shift working, for example,
may temporarily throw the individual’s eating, waking and sleeping
routine out of tune with the body’s ‘clock’, or sense of time);
k) Circumstantial Changes:-living in a new house, stabilizing new
relationships, working to new routines-will involve letting go of things,

110
perhaps unlearning old knowledge, and learning new ways of doing
things;
l) Above all change affects s individuals psychologically:-
1. It may create feelings of disorientation before new circumstances
have been assimilated: you may have felt this on waking up in an
unfamiliar room, or performing a familiar task in an unfamiliar
setting at college or at work;
2. Uncertainty may lead to insecurity, especially in changes involving
work and or fast acclimatization (a short learning curve);
3. The business of forging new relationships can be fraught with
personal insecurity, risk of rejection, the feeling of being an
outsider.

Resistance To Change At Work


Resisting change means attempting to preserve the existing state of affairs
against pressure to alter it .despite the possibly traumatic effects of change per
se,as discussed above, most people do not in fact resist it on these grounds
alone. Many people long for change, and have a wealth of ideas about how it
should be achieved.

Sources of resistance to change itself may include age and inflexibility, strong
needs for security, emotional stability etc.Sources of resistance to particular
proposed changes (e.g. in location, methods of working, pay structure) may
include the following:-
m) Attitudes or beliefs, perhaps arising from cultural, religious or class
influences (for example resistance to changes in the law on Sunday
trading);
n) Loyalty to a group and its norms, perhaps with an accompanying
rejection of other groups, or outsiders’ (for example in the case of a
relocation so that two departments share office space).Groups tend to
close ranks if their independent identity is threatened;
o) Habit or past norms. This can be a strong source of clinging to old ways,
whether out of security needs, respect for tradition, or the belief that you
can’t teach an old dog new tricks (for example resistance to the
introduction of new technology);
p) Politics-in the sense of resisting changes that weaken the power base of
the individual or group or strengthen a rival’ position. Changes involving
increased delegation may be strongly resisted by senior management, for
example.

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Common Causes Of Resistance
m) Self Interest: If the status quo is perceived to be comfortable, or
advantageous to the individual or the group;
n) Misunderstanding and distrust: If the reasons for, or the nature and
consequences of the change have not been made clear. This aggravates
uncertainty and suspicion about the perceived threat;
o) Contradictory assessments: Different individuals’ evaluation of the likely
costs and benefits of some change, Resistance arises from individuals
perception of the undesirability of change;
p) Low tolerance of change itself: Differences in tolerance of ambiguity,
uncertainty,etc.

Reaction To Proposed Change


a. Acceptance- (whether enthusiastic espousal, cooperation, grudging
cooperation or resignation);
b. Indifference-(usually where the change does not directly affect the individual
apathy, lack of interest, inaction);
q. Passive resistance (refusal to learn, working to rule);
r. Active resistance-(deliberate spoiling, go slows, deliberate
errors,sabotage,absenteeism or strikes).

Staff Reactions That subtly reinforce resistance to change


Managers should learn to recognize the following responses that may look like
resistance on the face of things:
p) Pleas of ignorance (I need more information);
q) Delayed judgments ( let’s wait and see…),perhaps stalling for time with
comparisons(There are other ways…);
r) Defensive stances (This isn’t going to work; It ‘d be tooexpensive;It’s the
wrong time to…);
s) The display of various personal insecuritiesI won’t be able to cope,
won’t see my team anymore, we won’t have control over our planning
anymore; Why can’t we just go on as we are?)fear anxiety, resentment at
the manner of change, frustration at perceived losses;
t) Withdrawal ,or disowning of the change( Oh well, on their heads be it;
I’m not interested in flextime anyway).

3.4 OVERCOMING RESISTANCE TO CHANGE


When dealing with resistance to changes, managers should consider
the pace, manner and scope of change.

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Pace Of Change
The more gradual the change, the more time is available for questions
to be asked, reassurances to be given and retraining (where necessary)
embarked upon. Many information systems are implemented slowly;
e.g. via pilot testing, to iron out bugs and let staff be acclimatized to
the new system.
Presenting the individual concerned with a fait accompli (let’s get it
over with-they ‘ll just have to get used to it)may short circuit
resistance at the planning and immediate implementation stages. But
it may cause a withdrawal reaction if the change is radical and
perceived as threatening and is likely to surface later, as the change is
consolidated.

The manner of change


The manner of change in which a change is put across is very
important: the climate must be prepared, the need made clear, fears
soothed and if possible the individuals concerned positively motivated
to embrace the changes as their own.
s. Confront Resistance: Talking through areas of conflict may
lead to useful insights and the adapting of the programme of
change to advantage;
t. Keep people informed: Information should be sensible, clear,
consistent and realistic: there is no point issuing information
which will be seen as a blatant misrepresentation of the
situation;
u. Explanatory: The change can be ‘sold’ to the people :people
can be convinced that their attitudes and behaviours need
changing;
v. Skills Training: Learning programme for any new skills or
systems necessary will have to be designed according to the
abilities, previous learning experience etc of the individuals
concerned;
w. Empathy: Putting yourself in the shoes of the other person and
getting to know the people involved in and affected by changes
enables their reactions to be anticipated;
x. The degree to which consultation or participation will be
possible(or genuine) will depend on management’s attitude
towards the competence and trustworthiness of its workplace.

Scope Of Change

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The scope of change should be carefully reviewed:
j) Total transformation will create greater insecurity-but also greater
excitement, if the organization has the kind of innovative culture that can
stand it-than moderate innovation;
k) There may be hidden changes to take into account: a change in
technology may necessitate changes in work methods, which may in turn
result in the breaking up of work groups;
l) Management should be aware of how many different aspects of their
employees lives they are proposing to alter-and therefore on how many
fronts they are likely to encounter resistance.

3.5 THE CHANGE PROCESS

The three –stage approach to changing human behaviour are as follows:

UNFREEZE attitudinal/ REFREEZE


Existing behaviour behavioural CHANGE new behaviour

Unfreeze is the most difficult (and in many cases neglected) stage of the
process, concerned mainly with selling the change, with giving individuals or
groups a motive for changing their attitudes,values,behaviour,systems or
structures.
g) If the need for change is immediate, clear and perceived to be associated
with the survival of the individual or group (for example, change in
reaction to an organizations crisis) the unfreeze stage will be greatly
accelerated. Routine changes may be harder to sell than transformational
ones, if they are perceived to be unimportant and not survival based.
h) Culture change is perhaps the hardest of all.

Change is the second stage, mainly concerned identifying what the new,
desirable behaviour or norm should be, communicating it and encouraging
individuals and groups to own the new attitude or behaviour,To be successful,
the new ideas must be shown to work.

Refreeze is the final stage, implying consolidation or reinforcement of the new


behaviour.Positive reinforcement (praise, reward etc.) or negative

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reinforcement (sanctions applied to those who deviate from the new
behaviour)may be used.

3.6 THE KEYS TO SUCCESSFUL CHANGES


The three keys to successful change are empathy, communications and
participation.
Empathy
Empathy means putting yourself in the shoes of the other person and getting to
know the people involved in and affected by changes. The manager should
consider each person’s (or groups) reaction to change accordingly. In other
words: If I were in their shoes, what would I be thinking and how would I be
reacting”
Communication
Communication is not just telling subordinates what to do; it is also the process
of creating an understanding. The aspects of communication, which might be
particularly relevant to change, are as follows:
m) Who needs to know who else will want to know? The people should be
told.
n) When should the information be given about planned change?
1) Bosses ought to be told before subordinates;
2) Trade Unions officials ought to be told before workers.
o) How should the information be given? Should it be given verbally,face-
to-face?Or in writing? Or a mixture of both?
1) If emotions are likely to run wild, the communication ought to be
verbal and face-to-face .If individuals need persuading, the
manager must give himself the opportunity to talk to them, and try
to persuade them;
2) If the changes are complex, and individuals need time to study
them, or to refer to them later,(e.g. proposed changes t the
company pension scheme) they should be set out in writing;
3) The information should be communicated directly, not via a go
between or middleman.
p) Feedback from the people affected should be obtained. Employees should
be encouraged to ask questions and voice any doubts or worries they
might have.

115
Participation
A participative approach is needed for innovation; otherwise new ideas will
be stifled and discouraged. Examples of a participative approach to change
include:
j) Quality circles;
k) Talk forces; and
l) Problem solving groups
The practical difficulties with achieving participation in change are that:
m) Managers might pay lip service to participation, but do not believe in it;
n) Employees have suspicion about the consequences of their ideas, perhaps
that their good idea will result in lost jobs;
o) If there is no current culture of participation, it would be difficult to
introduce suddenly. Partcipation would have to be introduce gradually,
perhaps starting with one or two plot groups;
p) Participation is sometimes impossible.

3.7 ACCEPTANCE OF CHANGE


It takes time for change to get accepted. The three phases and eight stages in the
process of accepting change are as follows:
g) Phase 1:Preparation phase
Stage 1 Contact-First knowledge that a change is in the air;
Stage 2 awareness-Knowledge that change will happen;
h) Phase 2: acceptance phase
Stage 3 Understanding-Gaining an understanding of the nature and purpose
of the change;
Stage 4 Positive perceptions Developing a positive view towards the
change, and accepting the need for it;
c)Phase 3: Commitment phase
Stage 5 Installation-The change becomes operational;
Stage 6 Adoption-The change has been in force for long enough and its
value has become apparent;
Stage 7 Institutionalization-The change has been in for long enough to
become routine and the norm;
Stage 8 Internalization-Individuals are highly committed to the change
because it is now congruent with their personal interests, goals and value
systems.

116
4.0 THE OLD CULTURE BEFORE BPSR;
The culture of an organization manifests in the employees’ code of ethics
and conduct and more importantly, the ways of doing things in that
organization. First Bank’s culture is formally codified in the staff Handbooks
and serves as a guide to harmonize the behavioural patterns amongst all staff
and also to endanger team spirit.

Culture is defined as “the set of values, beliefs, understanding and norms that
members of first Bank share and which determines in large degree, how
members act.

Before the introduction of BPR, First bank’s organization culture can be


described as a mixture of:
o Written rules in the Staff Handbooks;
o Unwritten rules of conducts inherited from the long years of existence in
Nigeria and the way things are conventionally done in the old days;
o Pervading attitudes of its personnel; and
o Work practices adopted by the personnel.

WRITTEN RULES
The written rules of First bank before the introduction of BPR-This is
contained in all the staff handbooks and it includes such issues as the Vision
and mission of the bank, the personnel philosophy, the banks expectations from
the staff and the staff expectations from the bank.

CORE VALUES
The core values of the bank were:
o Integrity;
o Professionalism;
o Customer focus (Arm-chair banking);
o Team work and
o Conservative conventions.
Thesevalues can be better expanded as follows:
o Integrity-Fidelity,confidentiality,promoting virtues,honesty and
transparency;
o Professionalism-Ethics of banking,’courtesy’,respect and transparency
in business practice;

117
o Customer focus-He was seen as the king but before BPR, there was a
culture of arm-chair banking in which the bankers expected the
customers to chase them rather than the other way round;
o Teamwork-The success of one is the success of everyone;

ATTITUDES AND PRACTICES

First bank recognized the divergence in culture of Nigerians emanating from


their diverse background; this informed the guidelines for employees
concerning the following attitudes and practices within and sometimes outside
the bank:
o Dress Code for male and female divided into –business, corporate and
business casuals;
o Verbal and non-verbal communication within and outside the bank;
o Banking environment ethics;
o Personal hygiene;
o Customer service-as best as possible to satisfy the customers;
o Conduct at meetings
o Management style;
o Employee profile;
o Interpersonal relationships;
o Reward system-to be in line with collective agreements;
o Evaluation method-the old system oif staff appraisal that are highly
impersonal and of doubtful integrity;
o Structure Pattern-that are highly hierarchical and based on regional/zonal
arrangement and empowerment;
o Physical environment-just as in the old ways with good structures but not
contemporary and not near what the new generation banks are offering;

5.0 CORPORATE CULTURE CHANGE PROJECT;

The Time Table of the implementation of the century II project shows the
followings:
7) New organization structure was approved by the Board of Directors and
implemented with effect from 1st January, 1998;
8) By December, 1997,the following milestones had been achieved
-The respective Strategic business Units (SBUs) and Strategic
-Resource Functions (SRFs) were put in place;
key appointments made to the SBUs and SRFs;

118
-A number of Branch Reengineering (3) Niger House, Ikeja Industrial
Estate and Abuja branches were reengineered;
-Positions to new manning levels were filled;
9) By January 1998,Mr D.O. Abas, erstwhile AGM, Financial Control were
appointed as the new Coordinator of the Century II project.
-Two more branches,NIJ House and marina branches were reengineered
on 15th,December 1997, and 2nd January,1998;
-Customers in the reengineered branches enjoy prompt and efficient
services provided by courteous and well equipped staff operating in a
customer friendly environment;
-Waiting time for all banking activities has been reduced while on-the –
counter transactions now take an average time of three minutes;
ten branches were strategically planed to be reengineered
4) By February,1998-series of early retirement incentive packages for
members of staff who have served the bank meritoriously over the years and
wish to opt for early retirement were announced;
-Branch reengineering process now being handled by First bankers

5)By December 1998,the management of the bank were quite satisfied that the
bank’s restructuring project through reengineering techniques is yielding
effectiveness and efficiency and realized that in order to achieve maximum
effectiveness, it is necessary to start a new phase of the project which was titled
the CULTURE CHANGE PROJECT.
Series of courses were undertaken in order to sensitize the senior and junior
staff of the new programme.The four Consultants were appointed to conduct a
diagnostic report.
The project was designed to reorientate work attitudes amongst staff members
towards providing- more qualitative service to the bank’s customers.
By January 1999,various employees Focus Sessions had been held for different
cadres of staff at both Head Office and Regional operations.
The objectives of these sessions were:
o To assess the strength of First Bank’s current culture;
o To explore the cultural issues which staff members consider as crucial
factors for the culture of the bank;
o Identify or synthesize a desired culture for CenturyII.

After the series of seminars and workshops on the Employee Focus Sessions,
reports by the Consultants were written and submitted and by October 1999,the

119
Culture Confirmation Retreat for Staff members of different Regional offices
were held. The last of the sessions was held at Enugu.at the sessions, the
findings of the diagnostic reports were presented by the Consultants and the
conclusions in the report generated a lot sensitive reactions from participants as
issues raised were analyzed thoroughly in a bid to revalidate and reconfirm the
attributes of the desired culture for the Bank.
Thereafter, participants were placed in groups to further deliberate on the
findings of the Consultants during the breakout sessions.
At the end of the sessions, a presentation of each group’s deliberation was made
.The highlights are presented below as a summary of the feedback from the East
Banking Operations:-
o The 5% forced exit policy should be abolished in order to allay fears of
job insecurity;
o Medical benefits for junior staff and Pensioners should be reviewed
upwards;
o Retirement Ages for male and female employees should be uniform;
o Recruitment of middlr management personnel into the bank should be
done sparingly and only for positions requiring high technical skills;
o Salaries and allowances should be increased in order to enhance staff
esteem and productivity;
o Permanent Drivers should be employed in order to prevent contract
Drivers from driving special vans because of the security risks involved;
o An appropriate dress code for members of staff should be implemented
immediately;
o Pay-For Performance should exist alongside profit sharing;
o Appraisal review committees should be courageous enough to overturn
biased appraisals in order to enthrone meritocracy;
o Staff found to be resistance to change should be sanctioned.

In pursuant of the project a Culture Implementation Committee was constituted


in November 199 to facilitate the prompt implementation of the Exco decisions
on recommendations by the Culture Change Consultants. The four-man
committee was headed by the Executive Director (Strategic Resource). Other
members are the Head, human Capital management, Chief Inspector, Principal
Manager, manpower Planning/career Development who is the Secretary of the
committee.
So far so good, the dress code was emphasized on a pilot scheme. Front line
staff in 25 selected branches was to wear approved uniforms. Dress code were

120
to be specified for Relationship managers and all officers were expected to be
as usual dress smartly pending when the dress code will cover all staff.

With the above enumeration of the steps taken to change and reform ythe
culture of First Bank Plc, there is no doubt that the management of the Bank
had performed wonderfully and whichever of the staff who wants to oppose the
changes had better find another employment because these changes had come to
stay.
Although, the planning and implementation had been professionally thorough,
there are still some complaints by staff over recruitment of staff of some banks
over their head and usages of staff that are junior to them handling higher
responsibility over their heads. these issues are such that the personnel
functionaries can handled as part of their routine assignment as it is very
difficult to satisfy everybody

7.0SUGGESTIONS FOR COPING WITH CORPORATE CULTURE


CHANGE PROBLEMS;

In view of the foregoing, the only suggestions that we could give is for the
management of the bank to continue to conduct more attitude survey
programmes so that they can be aware of staff attitude to work and be able to
make any correction where possible.
The conduct of work climate survey could be done every three years so as to be
able to be comprehensively informed of the corporate culture of the bank.

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EFFECTIVE
STRATEGIC
MANAGEMENT

CONTENTS
9. WHAT IS STRATEGIC MANAGEMENT?

10.STRATEGIC PLANNING PYRAMID

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11.STRATEGIC MANAGEMENT MODEL

12.STRATEGIC Vs OTHER TYPES OF PLANNING

13.STRATEGIC PLANNING PROCESS

14.STRATEGIC PLANNING

15.STRATEGIC ACTION

16.STRATEGIC THINKING

I. WHAT IS STRATEGIC MANAGEMENT?


The most important criteria of any organizational effectiveness is not its
operational efficiency but its ability to adapt to environmental change.
Strategic management is both a process and a philosophy for
determining and controlling the organization’s relationship to its
changing environment. As a process, it defines approaches and
techniques to help organizational management adapt to the dynamics
of today’s situations. Through the use of objectives and strategies,
strategic management endeavors to achieve efficient programmes to
accomplish the organization’s mission. As a philosophy, strategic

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management changes how managers look at
competition,customers,markets,and even the organization itself. In the
public sector ,it changes its purpose for maintaining laws and order,
social and economic development, security and defence activities, its
bureaucratic system and principles. Its purpose is to stimulate
management’s awareness of the strategic implications of
environmental events and internal decisions.

Strategic management provides a fresh approach to reemphasizing


responsibilities managers and administrators has always had. This
approach has been necessitated by the rapid redefinition of the entire
political environment. Properly implemented, strategic management
permeates all major activities and decision making by raising the level
of consciousness and providing valuable insights that are otherwise
unobtainable. Overall, strategic management is the best fully
integrated approach we know of for managing change.

Effective strategic management is characterized by:


• Clear direction and purpose;
• Objectives, goals and strategies consistent with the
organizational mission;
• Continuous monitoring of internal and external environment;
• Integration of operating budgets, profit or development plans
with the strategic plan;
• Continuous monitoring of progress with revision of plans and
programmes as appropriate;
• Creation of strategic atmosphere that fosters a team spirit;
• Commitment of necessary resources and the development of
systems to provide necessary management information.

The resources and effort required to develop a strategic management


philosophy in many organization could be quite significant. It is a major
commitment, which should not be undertaken lightly. Thoughtful consideration
is given not only to the operational requirements, but particularly to the
demands placed upon the organization’s personnel. It will require training and
educating managers and administrators to the new way of making
decisions.And,it most certainly will require that some changes take place in the
existing order of things.

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The costs, as material as they could be, must be weighted against the benefits
we have observed in an organization. These benefits from strategic management
include:
• Recognition of potential strategic implications of every major action and
event;
• Better understanding of the organization and its industry or sector;
• More effective decision making;
• Improved objectives, goals and strategies;
• Reduced resistance to change through proper implementation;
• Enhanced communication and mutual understanding.

2.STRATEGIC PLANNING PYRAMID


To realize the full benefits of strategic management, the organization must
blend together three seemingly distinct elements into an integrated process.
These elements are:

Strategic Planning
Strategic planning is the core of strategic management. It refers to the process
of formulating the organization’s mission, objectives and goals and developing
strategies to achieve them. strategic planning creates a conceptual framework
that incorporates the external environment, characterized by risk, change and
uncertainty, into the organization’s long-term decisions;

• Strategic Action
Strategic action is the implementation phase of strategic management. It
refers to managing the implementation of the strategic plan and translating
the strategies into actions. This requires linking the longer term strategies to
the shorter term measures like budgets and motivating individuals to
accomplish them;
• Strategic Thinking
Strategic thinking represents an integration of strategic planning and
strategic action. We believe strategic thinking must be achieved before any
organization can complete the evolutionary process needed for a sound
strategic management system.

STRATEGIC PLANNING PYRAMID

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Strategic
Thinking

Strategic Planning

Strategic action

The strategic Planning pyramid was used as the graphic medium to show
how these three elements are related. The reasons for choosing a three-
dimensional figure are that each face touches every other face and each face
depends on other faces for stability. This most closely portrays how strategic
management is envisioned. It can be seen as a process that has height, depth
and breadth
Strategic with a high degree of interdependent between its elements

Thinking

Pushing
3.STRATEGIC Going MODEL
PLANNING organizing
Through Beyond environmental
Constraints scanning
Strategic
Use of Position
Planning
Strategic Assessment
Thinking
Strategic
Information mission, objectives
, goals develop.
System
Strategic strategy
Translation formulation
& Motivation Plan
Development
Linking
Strategic Budgeting to controlling
Action strategy
Strategy implementation
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The model shows that the first phase of strategic management is strategic
planning, which is made up of six major topics, namely:
• Organizing;
• Environmental scanning;
• Position Assessment;
• Mission, objectives,goals development;
• Strategy formulation; and
• Plan Development.

The next phase of strategic management is Strategic Action, which concentrate


s on implementation and monitoring the strategic plan.

The last phase of strategic management is Strategic thinking which effectively


integrates the plan into daily decision-making.

Although the size of each “ slice of the pie” appears equal, this is not meant to
imply that the same level of effort or resources is required for each in the
overall process. The actual effort necessary depends on the organization’s size

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and sophistication, the results of past efforts, the capabilities of management,
and the unique competitive situation of the individual organization.

4. STRATEGY AND OTHER TYPES OF PLANNING

There is need to settle the confusion with regards to the difference between
strategic planning and other types of planning functions and activities such as
annual budgeting, operating plans, financial planning and tactical programming.
For this reason, it might be well to differentiate strategic planning from other
forms of planning. The table below enumerates the more commonly used
planning terms and offers a definition and selected contrasting characteristics of
each.
The principal attributes differentiating strategic planning include:
• Assessing the future impact of current decisions;
• Providing a structure for dealing with risk and uncertainty;
• Considering alternative courses of action in response to changing
environmental situations;
• Incorporating a process for determining the organization’s purpose,
direction and expected results.

TYPES OF PLANNING
TYPE DEFINITION CHARACTERISTICS
ANNUAL Represents the specific • Quantitative
goals and action benchmarks for short
programmes for the current time performance;
year of the strategic plan • Prepared by
organizational unit;
• One year time
horizon;
• Monthly detail
compared to actual
results.
FINANCIAL A financial and narrative • Explicit statement of
expression of expected goals;
results • Accounting

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orientation;
• Cash flow and cash
budget;
• Financial statement
presentation.
FUNCTIONAL Process of determining • Major areas include
OR specific functional marketing,financial,hu
OPERATIONAL objectives, goals and man resources,
strategies based on overall information
corporate plan processing;
• Typically 1-3 years
planning horizon;
• Could lead annual
planning to strategic
planning.
TACTICAL Task oriented planning to • Detailed view of
deploy resources to activities;
accomplish one or more • Describe how specific
specific short term strategies are achieved;
objectives • Typically one year
horizon.
LONG Financial extrapolation of • Very stable industries;
RANGE short-term financial plan • Typically 5-20 year
for a long term horizon horizon;
• Corporate orientation;
• Formalized.
STRATEGIC A framework for managers • Long term horizon;
to enable them to make • High degree of
decisions which affect the environmental
future in an environment of uncertainty;
risk and uncertainty • Creative;
• Less detail.

5.STRATEGIC PLANNING PROCESS

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The strategic Planning Process is a series of steps beginning with organizing
and initiating.S The major activities in a Strategic plan are :
• Environmental scanning;
• Internal analysis and position assessment;
• Developing mission,objectives and goals;
• Formulating strategy;
• Developing the plan.

OVERVIEW OF STRATEGIC PLANNING PROCESS

CONDUCT
. ENVIRONM
ENTAL
SCANNING
DEVELOP FORMULATE DEVELOP
ORGANISE
MISSION, STRATEGY PLAN
AND CONDUCT OBJECTIVES,
INITIATE INTERNAL GOALS
ANALYSIS
AND
POSITION
ASSESSMENT

6.STRATEGIC PLANNING

The Strategic Planning process can be undertaken by the personnels of the


organization or through the assistance of a Strategic Planning consultant
who is expected to facilitate the whole process fro initiation to plan
development.
If a Consultant is used like the case of our NEEDS and SEEDS programmes.
The parts to be played by the two sets of personnels are as follows:
POSSIBLE CONSULTANT ORGANISATION
ASSISTANCE RESPONSIBILITY
ORGANISATION PHASE
• Define planning process • Review and approve work
manual and document with programme;
planning; • Designate:

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• Develop work programme; -Planning Committee
• Define characteristics of – members;
-Planning committee; -Planning Officer
-Planning officer -Strategic Business Units;
• Identification of external • Review and revise planning
and internal data; calendar;
• Conduct training seminars. • Assist in developing data
requirement list.
ENVIRONMENTAL ANALYSIS
AND FORECAST
• Identification and analysis of • Evaluation and forecast of
economic factors; environmental factors;
• Analysis of relevant • Preparation of market outlook;
regulations; • Evaluation of opportunities
• Analysis of technological and threats;
trends; • Preparation of final
• Market studies; environmental forecast report.
• Analysis of market and
segments;
• Analysis of Opportunities and
threats;

INTERNAL ANALYSIS AND


POSITION ASSESSMENT
• Analysis of competitors; • Preparation for competition
• Analysis of customers; and customer profiles;
• Analysis of industry success • Identification of industry key
factors; success factors;
• Profit improvement assistance; • Evaluation of
• Identification of strengths and company/organization
weaknesses; strengths and weaknesses;
• Preparation of final
environmental forecast report.
OBJECTIVES AND GOALS
DEVELOPMENT
• Assist with development of • Develop overall business
overall business mission; mission;
• Assist in consolidating • Consolidate objectives from

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objectives from external and internal and external analyses;
internal analyses; • Identify key objectives;
• Provide methodology for: • Assure completeness and
-Identifying key objectives; consistency of objectives;
-Assuring completeness and • Develop quantitative goals for
consistency of objectives; each objective;
• Assist in reviewing, analyzing • Communicate objectives and
and evaluating objectives and goals.
goals.
STRATEGY DEVELOPMENT
• Provide methodology for: • Formulate strategy;
-Identifying and analyzing • Document strategy inputs,
strategies; risks, resources and likelihood
-Documenting and consolidating of success;
strategies; • Evaluate proposed strategies;
-Evaluating strategies; • Document finalized strategies.
• Identify areas for strategy
formation;
• Survey division/department
for strategies;
• Assist with evaluation of
strategies through the use of
mechanized models;
• Assist with the review of
alternative strategies to
completeness, consistency and
relevance
PLAN DEVELOPMENT
• Preparation of supporting • Content of financial
financial information; projections;
• Financial projections and • Preparation of financial
modeling summaries;
• Preparation of executive
summaries;
• Preparation of final strategic
plan.

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7.STRATEGIC ACTION
With the strategic plan finalized, the first step of strategic management has
been completed. The issues most critical to successfully translating
strategies into actions are as follows:
• Controlling implementation;
• Linking budgeting to strategy;
• Strategy Translation and Motivation;
• Strategy information Systems.

Controlling Implementation
Controlling Implementation is the first major issue of strategic action. It focuses
on implementation techniques necessary to direct and control the organization’s
resources as it pursues its strategies. A plan has little effect if you do not or
cannot put it into action.
Factors used for controlling implementation of the strategic plan include: -
• An adequate mechanism to deal with environmental changes quickly.
Employees being alert to conditions that might alter the plan;
• Major milestones created to show employees’ achievements during plan
implementation that they could take pride in their success as a group and
received recognition and visibility to the implementation;
• The CEO sending periodic memos commending employees for their
efforts. He let them know that the organization appreciated them;
• A management committee that met regularly to deal with implementation
problems;
• Tied the strategic plan to the operating budget;
• Implementation work programmes and time table;
• Fixed responsibility for implementation;
• Providing coaching for employees to keep up enthusiasm during the
implementation phase;
• Consistent follow-up efforts on work programmes for completion of
tasks;
• Revising the strategic plan when it needed to be revised and stuck to it at
other times.

The results expected after close control of implementation include:


• Significant progress made on implementation;

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• Readiness to react if there is any unforeseen events that could jeopardize
the organization;
• Key individuals monitoring that the plan is on course;
• Key individuals monitoring competitors’ moves;
• Employees morale very high;
Without control, there is little hope that the strategic plan will have any effect
on the organization.

Implementation Strategy
Implementation strategy is the process of transforming plans, strategies and
policies into results. This phase of strategic management mobilizes the human,
financial and capital resource to accomplish the organization’s mission,
objectives and goals. Hence,it requires careful attention to ensure the effective
implementation of the organization’s strategies.

The ideal approach should minimize unnecessary conflicts between functional


areas and should recognize the interdependencies between individual strategies.
This requires the careful matching of plans to the organizations structure,
people and environment. Properly done, successful implementation is not left to
chance but managed like any other activity.

The key is to formulate a programme to guide the implementation process. The


programme will serve as the basis for controlling the resources that have been
committed.

The major techniques used to control strategy implementation include:


• Developing an implementation programme;
• Designing responsibility for each activity;
• Estimating start/stop dates and estimated work days;
• Identifying required resources and resource constraints;
• Establishing a system to monitor and report progress.
Some organization also makes use of a critical path or PERT charts to further
identify the interrelationship of implementation activities.

Implementation Programme

An implementation programme is a tool used to organize the organization’s


resources to convert the strategic plan into more specific activities and to
monitor that these tasks are carried out.

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You should have an implementation programme for each strategy you
develop. an advantage of preparing such programme is that you can
determine the necessary steps to translate the strategy into action. In
addition the resources required for each strategy can be identified, Since
assignment of responsibility is on a task or step basis, the implementation
programme is organized similarly. The time requirements for
implementation-start/stop date, days required-are estimated along with
benchmarks to monitor progress.

Then, the individual programes are gathered and considered as a whole to


reveal a complete picture. In this way, conflicts can be identified and
resolved. For example, if the organization does not have the personnel to do
everything on a timely basis, then the strategies must be prioritized and the
least important shifted to a slack period.

The individual strategies can be organized and presented in several ways:


• By start and completion dates;
• By responsible individuals;
• By resources required

Portraying the implementation by various dates allows you to quickly monitor


progress. On a given date, you only have to scan the total program to see what
should be just starting.

Organizing the programmes by individual or other resources required serves


two purposes. First,it shows an individual his total implementation
responsibilities.Second,it reveals unrealistic demands on either an individual or
resource that were not apparent on a strategy-by-strategy basis.

8.STRATEGIC THINKING
Strategic thinking is the elusive ingredient that changes the nature of the
strategic plan from a static document to a dynamic management tool.
What is strategic thinking?
The best way to understand what is strategic thinking is to first understand
what it is not. Strategic thinking is not a:-
• Document;
• One time annual effort;
• Mere articulation of current thinking;
• First step of getting a budget.

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Strategic thinking does not manifest itself in any tangible product, but can be
observed through the quality and substance of the products of the strategic
planning process. Without strategic thinking the planning process is lifeless.
Strategic thinking is the ability to direct the mind to see its surrounding from
multiple perspective. Strategic thinkers can look at the same data or situation as
others but see alternative and innovative ways of explaining or solving it. Their
thinking is not bounded by tradition such that they can only see things in the
light of how it is done in the past.Instead,they go beyond and provide the
creative insight that are the essential ingredients to strategic management.

Within public administration practitioners, the boundaries around decision


alternatives are constricted by rigid, traditional beliefs. Many managers and
administrators are reluctant to challenge certain assumptions and methods of
doing business. They continue to take decisions based on what has worked in
the past. Hence, fresh insights and innovations from middle and lower managers
are rare. Strategic thinking, on the other hand requires unlearning many of the
rules that governed past actions. It can be done. Psychologists find that people
who think are creative, but those that believe they are not creative are not. It is a
self-fulfilling prophecy. A strategic thinker believes he has insights into
problems that others do not have and his fresh ideas will lead somewhere.
Senior management must create an environment where employees believe he
can creatively contribute to the future of their organizations.

Creating the Proper Climate

To get everyone to start thinking strategically, the CEO must establish a climate
that encourages and rewards such behaviour. Initial steps would include:
• Involving all employees in the planning process;
• Soliciting employees’ options on an informal basis;
• Encouraging participation in professional organizations;
• Conducting meetings to discuss such things as competition, customers,
regulations, services, targets, goals, and achievements.

Beyond the se initial steps, a strategic thinking climate also requires that you set
aside a special time, without interruptions, for employees to think about their
business and ways to improve it. These sessions may be as formal as think tanks
and retreats or as informal as backroom brainstorming sessions. By their nature,
these sessions usually provide an opportunity for cross stimulations of ideas

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with all the resulting synergistic effects. they produce the kind of thinking that
generally does not occur if an employee were working alone.

To be effective some ground rules should be established. First, participants


should suspend judgments on all ideas until late in the session. A foolish, wild
idea left on the table long enough may stimulate someone else to come up with
a useful idea. Second, everyone enters the meeting on equal footing.
Dominance by senior managers or peer group leaders inhibits participation by
others. Third, there should be no repercussions for being wrong, We often see
too much importance attached to being right all the time. As a result, we find
the fear of being wrong is the biggest impediment to expressing new ideas.

Some techniques proven to be effective in stimulating strategic thinking


include:
• Problem Restatement-restating the problem in a variety of ways may lead
to insights into the nature of the problem that were not obvious
originally;
• Multiple Solutions-instead of searching for what seems to be one right
answer, employees should look for a second, third and fourth right
answer;
• What if Questions-this allows you to suspend the rules of the game,
adjust some assumptions and establish a germinal frame of mind. The
organization can even have a “What if…” question already on the
agenda. For example, what if the cost of money doubled in the next six
months? The more contrary-to-fact the “What if” questions is, the more
provocative and stimulating is the discussion.

Even with the aid of several techniques, the proper planning culture does not
just happen. It must be created,nurtured,and supported by the CEO.

Post-Plan Strategic Thinking


Often those involved in strategic planning consider strategic thinking completed
when the annual planning process is complete. In reality, a finished plan merely
signals the beginning of a new round of strategic thinking, with the first item on
the agenda being to challenge the current plan;
• What assumptions were correct or incorrect?
• What was successful or unsuccessful about the plan?

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This kind of examination stimulates new insights on how the organization
relates to its environment. It generates alternatives for each problem area. These
in turn are evaluated and become inputs to the next planning go-round.

As a continuing effort, employees should be constantly monitoring events in


both the internal and external environments. This helps the employee not only
obtain knowledge of his own organization, but also to develop insights into the
relationships between the organization and its environment. He then can apply
these insights not only to next year’s plan but also to daily decision-making

Benefits Of Strategic Thinking


Strategic thinking is the depth of the planning pyramid. It transforms an
unstable two-dimensional triangle into a stable, upright pyramid. It provides the
stability by ensuring that:
• The mission is sensible and attainable;
• Objectives are realistic;
• Goals fit with objectives;
• Strategies are innovative

In addition, much of the benefit of strategic thinking lies in the process itself
and not simply in the end result. If properly approached, employees who
participate gain insights into their industry that are otherwise unobtainable.
They begin to see the unique cause-effect relationship between their
organization and the rest of the world. They gradually cultivate their
imaginations. Ideas generate more ideas. Before long, you have a bank full of
people who are thinking strategically. They are subconsciously monitoring all
elements in their environment trying to determine their strategic implication.

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THE BUSINESS
OF GOVERNMENT AND GOVERNANCE

CONTENTS

1. GOVERNMENT, ITS ARMS, FUNCTIONS AND


PROCESSES;

139
2. GOVERNANCE:ITS MEANING, SCOPE AND
CONTENTS;

3. PUBLIC ADMINISTRATION AND


ADMINISTRATORS;

4. THE BUSINESS OF THE BUREAUCRACY;

5. MAKING THE BUREAUCRACY TO BE MORE


EFFECTIVE

6. BUREAUCRACY AND STRATEGIC PLANNING;

7. THE SEEDS PROGRAMME.

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1. GOVERNMENT :ITS ARMS, STRUCTURE,
PROCESSES AND FUNCTIONS.
DEFINITION
Government is the art, science, technology or system of
ruling over a society, village, township, local government
Area, State or the nation. Government is defined as the
machinery through which a country achieves its aims and
objectives. It consists of group of people that make law,
enforce the law and punish anybody that breaks the law of the
community, state or country they govern.
TYPES
The types of government in practice around the world are as
follows:
• Democracy- Government of the people by the people and
for the people;
• Militarism-Government by soldiers;
• Federalism-Government in which power is shared
between central and state governments;
• Monarchy-Government headed by kings and Queens;
• Episcopacy-Government control by the church, Pope or
body of Bishops;
• Theocracy-Government by divine guidance from God;
• Evolution-An anarchious changes in government;
• Anarchy-Lawlessness in government;

141
• Capitalism-System of government in which the means of
production is owned by individuals or business
association;
• Socialism-Government that gives equal rights to all
citizens and also the means of production is owned by
the public
TIERS
The there three tiers of Government in Nigeria.They are:
• Federal Government-Headed by The President of The
Federation of Nigeria;
• State Government-Headed by the state
Governors.There are thirty-six states in Nigeria;
• Local Government-Headed by Chairmen. There are
774 Local Government Areas in Nigeria.
FUNCTIONS/DUTIES
The functions/duties of government to its citizens amongst
others include:-
• DEFENCE
The Government helps to protect our lives and property.
Defend us from the hands of armed robbers, internal and
external aggressors;
• EDUCATION
The Government provides schools for learning to
develop the citizens’ minds. Build block of classrooms,
introduces free education to University levels with
modern techniques;
• TRANSPORT AND COMMUNICATION

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The Government provides good motorable roads,
airports,inland waterways, telephones and postal
services;
• HEALTH
The Government provides, equipped hospitals, health
centres, doctors and nurses that take care of patients (sick
people);
• AGRICULTURE
The Government through the Ministry of Agriculture
provides agricultural services including tree and crops
development of farm settlement schemes, loans to small
scale farmers and fisherman, agricultural research and
planning, soil and water conservation, wild life
preservation
• HOUSING
The Government provides low-income housing scheme
and grant loan to her citizens to help them own houses;
• WATER AND ELECTRICITY
The Government provides water and electricity at very
reasonable rates;
• MAINTENANCE OF LAW AND ORDER
The Government establishes various arms of the civilian
forces to maintain law and order and to punish people
that break the law;
• SOCIO- ECONOMIC FUNCTIONS
The Government establishes institutions to create
employment, reduce poverty, manage the economy,
finance laudable projects and conduct programmes that
will improve the socio economic lives of her citizens.
ARMS

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In whatever society, Government has three arms as follows:
• The Legislature –which exists: -
a) To make laws for the peace, order and good
government of the nation/states of the
federation with respect to any matter included
in the exclusive legis- lative list (National
Assembly);
b) To make laws on matter in the concurrent
legislature list (National and State
assemblies);
c) To make laws on matter in the exclusive list
(National Assembly);
d) Approve Budgets
• The Judiciary which exists to
a) Interprete the laws made to govern the people;
b) Apply the laws;
c) Adjudicate on cases; and
• The Executive-which is saddled with the basic
responsibility of
a) Implementing the laws and rules approved to
govern the people;
b) Execute and enforce laws passed by the National
Assembly;
c) Formulates policies for good governance

2.GOVERNANCE:ITS MEANING AND SCOPE


DEFINITION
Governance is the ability to translate all Government policies
and intention into practice. It is the establishment of
institutions, rules and processes that ensures that the packages
of whoever is ruling are implemented for the good of all.

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INSTRUMENTS
The instruments foe governance is the Nigerian Public
Service comprising of the Civil Service in the different
Ministries and the specialized agencies, corporations, forces
and parastatals of Government.
BUSINESS
The business of governance is to execute policies of the
current Government in power. The Public Servants have
certain codes that guide them on the performances of their
duties.
ETHICS
The codes of ethics in Government business are as follows:
• Discipline;
• Loyalty;
• Honesty;
• Courage;
• Courtesy;
• Cooperation;
• Helpfulness;
• Kindness; and
• Efficiency.
MOTIVATORS
The factors that will motivate public officers are:
• Job Security;
• Staff Welfare;
• Freedom from intimidation;
• Enhanced salary package and other pecks;
• Opportunity to improve one’s worth;
• Fulfillment of ambition being able to reach the peak of
carrier.

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QUALITIES
The average Public servant should possess the following
qualities:
• Discipline;
• Punctuality;
• Loyalty;
• Tenderness.
FACTORS FOR GOOD GOVERNANCE
• Freedom of expression;
• Strong political rules;
• Free Press;
• Vibrant Civil Society;
• Independent Judiciary;
• Open and dynamic policymaking.
PURPOSES OF GOOD GOVERNANCE
• To create a conducive environment for foreign
investors;
• To increase the efficiency and effectiveness of
developing programmes;
• To create a conducive climate for political and social-
economic development.
3.PUBLIC ADMINISTRATION AND
BUREAUCRACY
DEFINITION
Public Administration has been defined as “decision-making,
planning the work to be done, formulating objectives and
goals, establishing and reviewing organizations, directing and
supervising employees, exercising controls and other
functions performed by government executives and

146
supervisors. It is the action part of government; the means by
which the purposes and goals of government are realized”.
BUREAUCRACY
According to Max Weber (1864-1920), who is the
Organization Theorist most closely associated with the
analysis of bureaucracy, it is the ideal form of
organization, because it is impersonal and rational based
on a set pattern of behaviour and work allocation, and not
allowing personality conflicts to get in the way of
achieving goals.
Weber regarded an organization as an authority structure. He
specified several general characteristics of bureaucracy,
which he described as a continuous organization of official
functions bound by rules:
a) Hierarchy: -Each lower office is under the control and
supervision of a higher one;
b) Specialization And Training: -There is a high degree of
specialization of labour. Employment is based on ability
not personal loyalty;
c) Impersonal nature: -employees work full time within
the impersonal rules and regulations and act according to
formal, impersonal procedures;
d) Professional nature of employment: -An organization
exists before it is filled with people. Officials are full
time employees, promotion is according to seniority and
achievement; pay scales are prescribed according to the
position or office held in the organization structure;
e) Rationality: -The jurisdictional areas of the organization
are determined rationally. The hierarchy of authority and
office structure is clearly defined. Duties are established
and measures of performance set;

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f) Uniformity: -in the performance of tasks is expected,
regardless of whoever is engaged in carrying them out;
g) Technical competence in officials, which is rarely
questioned within the area of their expertise;
h) Stability.

Compared with other types of organization, the potential


advantages of bureaucracy may seem apparent.
4.THE BUSINESS OF THE BUREAUCRACY
The basic business of the bureaucracy are: -
1) To maintain laws and order;
2) Protect the society from danger internally (internal
security) and externally (external aggression);
3) Provide services that will enhance the socio-economic
values of the citizenry;
4) Assist the political headship in formulating and initiating
policies for good governance of the nation/the states;
5) Implement all policies approve by the different arms of
government.

MAINTENANCE LAWS AND ORDER


The basic instrument for maintaining laws and order in
Nigeria is the Nigerian Police Force. Other forces that act as
auxiliary to the police include the Road Traffic Agency and
the Road safety commission.
DEFENCE ACTIVITIES
The basic instruments for defending the Nigerian state are the
Armed Forces comprising of the Nigerian Army, Nigerian
Navy and the Nigerian Air Force.

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PUBLIC SERVICES
The Nigerian Public services comprising the Federal and State
Civil Services and the Public Corporations, Agencies and
Commissions are the instruments for achieving the socio-
economic progress, assisting the political headships to initiate,
formulate and implement policies.

CONTEMPORARY NATIONAL PROBLEMS


The current national problems that the bureaucracy should
address in line with the priority of the Political Class are as
follows:-
• Corruption;
• Unemployment;
• Poverty ;
• Diseases;
• Cultism in schools;
• Examination Malpractices;
• International conspiracy and isolation;
• Low level of education and awareness;
• High rate of violent crimes such as assassination, armed
robbery, smuggling etc.

5.0 THE NIGERIAN CIVIL SERVICE SYSTEM


THE PUBLIC SERVICE
The Nigerian Civil Service system is the Public service
comprising of the Civil services and other public servants
of parastatals, commissions and agencies of the executive
arm of government. It is the bureaucratic instrument of
the Executive arm of governance, which is responsible for
practically implementing all aspects of the laws as enacted

149
by the Nigerian Legislature and as interpreted by the
Nigerian Judicial system. It includes the non-political staff
and employees of the Legislature and the judiciary arms
of Government.
FOUNDATION
It was practically founded by Lord Lugard (1912-1919)
after the merger of the Northern and the Southern
Protectorates of Nigeria during the colonial rule of Britain
over Nigeria.
MODEL
The Public service of Nigeria was modeled along the
British Civil service during the colonial days. Then the
Civil service was primarily set up to maintain laws and
order and some development activities that impact
directly or indirectly on the interest of the colonial
masters.
CHARACTERISTICS
a) Permanence:-The Civil service is a permanent
appointment rather than temporary.It is subject to
promotion, gratuity and pension after retirement;
b) Professionalism:-Civil servants are experts in public
administration unlike ministers and other political
appointees;
c) Impartiality:-They are generally impartial. They are non-
political and are expected to be impartial in the
performance of their duties;
d) Anonymity:-The Civil servant cannot be invited to the
parliament to answer questions concerning their
Ministries and Department. this principle was violated
during the military rule.

150
FUNCTIONS

a) The civil service ensures continuity of government


especially when there is change of government;
b) The civil service keep the records of government;
c) The civil service formulates and execute government
policies;
d) The civil service advice their political heads who are
Ministers and Commissioners;
e) They take part in the preparation of bills and annual
budgets;
f) They serves as a link between the government and the
people;
g) They give required information from the government to
the people like distribution of lettetrs,circulars and
posters.

COMPARISON BETWEEN MINISTRY AND PUBLIC


CORPORATION
S/No MINISTRY PUBLIC
CORPORATION
1. There is a Minister or There is a Chairman as the
Commissioner as the political Head
political Head
2. Permanent General Manager is the
Secretary/director si the Head of Administration
Head of Administration
and Accounting Officer
3. There is an There is a management
Administrative/Executiv class and non-
e class management class

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4. They render service with Organization to provide
no profit motive services, to break even,
meet up with the cost of
production and make little
profits
5. Ministry is directly The Board of Directors
controlled the control the Public
Federal/State Corporation
government
6. Obtains finance from the Independently financed
annual budget and not subject to the
legislative annual budget
7. Appointments are made With the exception of the
by the Public Service Managing Director and a
Commission of the few key official who are
Federal/State appointed by the
government executive all other
appointments are made by
the Board of Directors.

5.MAKING THE BUREACRACY TO BE MORE


EFFECTIVE

The problems of the Civil service in Nigeria can be


summarized as below:
PROBLEMS
a) Low productivity;
b) Red Tapism or unnecessary bureaucracy;
c) Inefficiency;
d) Lateness to work by civil servants;

152
e) Official corruption and embezzlement of public funds
with the collaboration of politicians and top military
officers;
f) Ethnicity.

Most of the problems identified of the civil service are


being tackled head on by the current regime of President
Obasanjo through the use of largely foreign consultant
and the encouragement of high flying technocrats into the
political leadership of some of the sensitive ministries and
Agencies.

Some of the efforts that had been made had included:


• The introduction of Due Process programme –to
remove the perennial problem of awarding contracts
on ‘the rule of thumb’ to contractors. this led to the
establishment of SERVICOM, an agency that
establish and monitor that the due process is followed
accordingly;
• The introduction of the NEEDS, SEEDS, and LEEDS
programmes –to establish a new robust national
strategic oriented planning that will not only reduce
poverty to a barest minimum but will empower the
people towards economic wealth, increase public
participation and transparency in government and
enable the government and the people to monitor and
evaluate the development progress of each
community in Nigeria;
• The introduction of the Economic and Financial
crimes Commission-to monitor all types of economic
crimes and prosecute perpetrators of economic

153
crimes that are responsible for official corruption and
bribery in the polity. So far, hitherto untouchables
had been prosecuted, convincted and disgraced.
Hopefully with more vigour, the perpetrators will
change their mind towards their grand design to
pauperized the nation;
• The Bureau of Public Service Reforms –that is
working relentlessly to remove the deadwood in the
civil service, retrain the competent and potentially
effective public servants and recommend ways for
improving public service efficiency and effectiveness;
• The Privatization programme that had been
privatizing some public service corporations and
businesses so that they can be better managed and
make profit apart from realizing the efficiency
targets of the businesses.

6.THE BUREAUCRACY AND STRATEGIC


PLANNING

6.1WHAT IS STRATEGIC MANAGEMENT?


The most important criteria of any organizational
effectiveness is not its operational efficiency but its ability
to adapt to environmental change.
Strategic management is both a process and a
philosophy for determining and controlling the
organization’s relationship to its changing
environment. As a process, it defines approaches and
techniques to help organizational management adapt
to the dynamics of today’s situations. Through the use

154
of objectives and strategies, strategic management
endeavors to achieve efficient programmes to
accomplish the organization’s mission. As a
philosophy, strategic management changes how
managers look at competition, customers, markets,
and even the organization itself. In the public sector, it
changes its purpose for maintaining laws and order,
social and economic development, security and
defence activities, its bureaucratic system and
principles. Its purpose is to stimulate management’s
awareness of the strategic implications of
environmental events and internal decisions.

Strategic management provides a fresh approach to


reemphasizing responsibilities managers and
administrators has always had. This approach has been
necessitated by the rapid redefinition of the entire
political environment. Properly implemented, strategic
management permeates all major activities and
decision making by raising the level of consciousness
and providing valuable insights that are otherwise
unobtainable. Overall, strategic management is the
best fully integrated approach we know of for
managing change.

Effective strategic management is characterized by:


• Clear direction and purpose;
• Objectives, goals and strategies consistent with
the organizational mission;
• Continuous monitoring of internal and external
environment;

155
• Integration of operating budgets, profit or
development plans with the strategic plan;
• Continuous monitoring of progress with revision
of plans and programmes as appropriate;
• Creation of strategic atmosphere that fosters a
team spirit;
• Commitment of necessary resources and the
development of systems to provide necessary
management information.

The resources and effort required to develop a


strategic management philosophy in many organization could
be quite significant. It is a major commitment, which should
not be undertaken lightly. Thoughtful consideration is given
not only to the operational requirements, but particularly to
the demands placed upon the organization’s personnel. It will
require training and educating managers and administrators to
the new way of making decisions. And,it most certainly will
require that some changes take place in the existing order of
things.

The costs, as material as they could be, must be weighted


against the benefits we have observed in an organization.
These benefits from strategic management include:
• Recognition of potential strategic implications of every
major action and event;
• Better understanding of the organization and its industry
or sector;
• More effective decision making;
• Improved objectives, goals and strategies;

156
• Reduced resistance to change through proper
implementation;
• Enhanced communication and mutual understanding.

6.2.STRATEGIC PLANNING PYRAMID


To realize the full benefits of strategic management, the
organization must blend together three seemingly distinct
elements into an integrated process. These elements are:
Strategic Planning
Strategic planning is the core of strategic management. It
refers to the process of formulating the organization’s
mission, objectives and goals and developing strategies to
achieve them. strategic planning creates a conceptual
framework that incorporates the external environment,
characterized by risk, change and uncertainty, into the
organization’s long-term decisions;

• Strategic Action
Strategic action is the implementation phase of strategic
management. It refers to managing the implementation of
the strategic plan and translating the strategies into actions.
This requires linking the longer term strategies to the
shorter term measures like budgets and motivating
individuals to accomplish them;
• Strategic Thinking
Strategic thinking represents an integration of strategic
planning and strategic action. We believe strategic thinking
must be achieved before any organization can complete the

157
evolutionary process needed for a sound strategic
management system.
STRATEGIC PLANNING PYRAMID

Strategic
Thinking
Strategic Planning

Strategic action

The strategic Planning pyramid was used as the graphic


medium to show how these three elements are related. The
reasons for choosing a three-dimensional figure are that
each face touches every other face and each face depends
on other faces for stability. This most closely portrays how
strategic management is envisioned. It can be seen as a
process that has height, depth and breadth with a high
degree of interdependent between its elements

6.4. STRATEGY AND OTHER TYPES OF PLANNING

158
There is need to settle the confusion with regards to the
difference between strategic planning and other types of
planning functions and activities such as annual budgeting,
operating plans, financial planning and tactical programming.
For this reason, it might be well to differentiate strategic
planning from other forms of planning. The table below
enumerates the more commonly used planning terms and
offers a definition and selected contrasting characteristics of
each.
The principal attributes differentiating strategic planning
include:
• Assessing the future impact of current decisions;
• Providing a structure for dealing with risk and
uncertainty;
• Considering alternative courses of action in response to
changing environmental situations;
• Incorporating a process for determining the
organization’s purpose, direction and expected results.
TYPES OF PLANNING
TYPE DEFINITION CHARACTERISTICS
ANNUAL Represents the • Quantitative
specific goals benchmarks for
and action short time
programmes for performance;
the current year • Prepared by
of the strategic organizational
plan unit;
• One year time
horizon;
• Monthly detail

159
compared to
actual results.
FINANCIAL A financial and • Explicit statement
narrative of goals;
expression of • Accounting
expected results orientation;
• Cash flow and
cash budget;
• Financial
statement
presentation.
FUNCTIONAL Process of • Major areas
OR determining include marketing,
OPERATIONAL specific financial, human
functional resources,
objectives, information
goals and processing;
strategies based • Typically 1-3
on overall years planning
corporate plan horizon;
• Could lead annual
planning to
strategic planning.
TACTICAL Task oriented • Detailed view of
planning to activities;
deploy • Describe how
resources to specific strategies
accomplish one are achieved;
or more specific • Typically one-year
short term horizon.

160
objectives
LONG Financial • Very stable
RANGE extrapolation of industries;
short-term • Typically 5-20
financial plan year horizon;
for a long term • Corporate
horizon orientation;
• Formalized.
LONG Financial • Very stable
RANGE extrapolation of industries;
short-term • Typically 5-20
financial plan year horizon;
for a long term • Corporate
horizon orientation;
• Formalized.
STRATEGIC A framework • Long term
for managers to horizon;
enable them to • High degree of
make decisions environmental
which affect the uncertainty;
future in an • Creative;
environment of • Less detail.
risk and
uncertainty

6.5.STRATEGIC PLANNING PROCESS

The strategic Planning Process is a series of steps


beginning with organizing and initiating The major
activities in a Strategic plan are :

161
• Environmental scanning;
• Internal analysis and position assessment;
• Developing mission, objectives and goals;
• Formulating strategy;
• Developing the plan.
OVERVIEW OF STRATEGIC PLANNING PROCESS

CONDUCT
ENVIRONM
. ENTAL
SCANNING

DEVELOP FORMULATE DEVELOP


ORGANISE
MISSION, STRATEGY PLAN
AND
OBJECTIVES,
INITIATE
CONDUCT GOALS
INTERNAL
ANALYSIS
AND
POSITION
ASSESSMENT

6.6 NIGERIAN BUREAUCRACY AND STRATEGIC


PLANNING
The Nigerian bureaucracy had for a long time been familiar
with Long range, medium range and budgeting. Several
National Development Plans had been conceived and
implemented where the development objectives and goals of
the Nation had been well articulated but poorly implemented.
That is why the Nation is still suffering from contemporary
confusion in plan implementation. Past implementation of
National and perspective plans had resulted in gross

162
underdevelopment and abject poverty. At the last count it was
acknowledge that close to 89 million Nigerians are still very
poor. The unemployment situation is still very very high. The
inflationary trend is yet to be controlled; the exchange range
of the Naira is still abnormally high.

The recent introduction of strategic planning on a National


scale through the National Economic Empowerment
Development Strategy (NEEDS). The State Economic
Empowerment Development Strategy (SEEDS), and the yet to
be implemented Local Economic Empowerment
Development Strategy (LEEDS) are yet to bear the fruits of
the objectives and goals of the planners so it should be the
mandate of this forum to reflect on the availability of these
programmes so that when we reach our offices we should
renew our commitment to move the nation and this state
forward by increasing our vigour to make things happen. If it
is the rules of the civil service or the convention or the
political class that are impeding these current efforts to
improve performances, we should take positive actions to
clear the impediments and show that the bureaucracy of the
state can perform and realize better life for our people.

7.THE SEEDS PROGRAMME


The State Economic Empowerment and Development
Strategy (SEEDS) programme was a copy of the National
Economic Empowerment and Development Strategy
(NEEDS) programme of the Federal Government, which
can best be described as the foremost strategic planning
and management effort to actually turn around the
fortunes of Nigerians.

163
GENESIS AND CONTENTS
In September 2003,the Federal Government launched the
concept of SEEDS to compliment the NEEDS. Many states
have now completed drafts of their strategies and many had
started implementing their SEEDS programmes to the extent
that some of them had started launching the LEEDS
programmes.
SEEDS are more than just a strategy. It sets challenging
targets to reduce poverty, promote economic growth and
change the way government works. Planning and
implementing programmes to meet those targets will be a
multi-annual process; one which may run all the way to the
Millennium development Goal deadline of 2015.

NEEDS and SEEDS have four goals:-


• Wealth Creation;
• Employment Generation;
• Poverty Reduction; and
• Value Reorientation.
Nigeria’s strategy to achieve these is organized in three
pillars:-
 Pillar 1: -Empowering people through health and

other services including safety nets and pensions;


 Pillar 2: -Promoting private enterprise through the

rule of law, infrastructure investment, finance,


privitisation and deregulation and sectoral
strategies;
 Pillar 3: -Changing the way government works

through public sector reforms, budget and

164
expenditure reforms, and transparency and
anticorruption and good governance.

THE SEEDS FRAMEWORK


The SEEDS framework gives a structure of a state’s vision for
development, which allows the people to see how that vision
can be achieved. The SEEDS manual of a state
• States an outline for a State’s SEEDS by assembling
concise information on
Geography,People,Settlements,Organisations,Infrastruct
ure and Economy;
• The five steps of the SEEDS Framework: -Setting
Targets, Developing Strategies, Allocating Resources,
Implementing SEEDS and Monitoring and Evaluating
Performance;
• The core responsibilities of the Federal, State and Local
Governments as assigned by the 1999 constitution, and
how the overall success of NEEDS and SEEDS depends
upon the implementation of LEEDS;
• The need for a SEEDS team of politicians and senior
state officials who can direct the implementation of
SEEDS; and
• The benchmarks against which performance of SEEDS
will be assessed.
SEEDS FRAMEWORK AND THE BENCHMARKS
The SEEDS Framework will help states with the
benchmarks against which the federal government is
asking them to measure their performance. Each step
round the framework, from Setting Targets (step 1) to

165
Monitoring and Evaluation (Step 5), will contribute to the
benchmarks.
The first set of benchmarks is designed:
“To ensure that the state government develops, publishes
and implements a strategy that advances its targets”
Step 2 of the SEEDS Framework sets out how to develop
strategies that will truly advance the Targets, while Step 3 and
4 describe how those can be taken forward into a reasoned
and fully costed strategy.

The second set of benchmarks is:


“To ensure a responsible public financial management
and a comprehensive and transparent budget process”

Step 3 on Resource Allocation and Public Financial


Management directly address this group of benchmarks. Some
of theses financial benchmarks have to do with government-
wide public expenditure reforms.

The third group of Benchmarks is:

“To ensure that government strategies to improve service


delivery both in term of quality and in terms of reach are
developed and can be implemented”

The SEEDS Framework, with its emphasis on measurable,


achievable and realistic targets and on selecting effective
strategies to deliver them is specifically designed to
contribute to this.

166
The fourth set of Benchmarks seeks:

“To ensure that policies are planned and implemented in


a transparent and accountable manner”

In the first set of Benchmarking exercise that was conducted


by the National Planning Commission,(as published in the
Vanguard newspaper of !!th November,2005) Enugu State
came first, while Bayelsa State came last(37th position).Lagos
State came 7th.with a total of 41.40 points.

167
168
169
ABOUT THE AUTHOR

BIO-DATA

B.A. ADESINA: Managing Consultant,


B.A. Consultants Ltd

QUALIFICATIONS: Master of Industrial & Labour Relations (1983)

B. Sc (Geography)
University of Ibadan, Nigeria (1978)

Member, Institute of Personnel Management of Nigeria.

Member, Nigerian Industrial Relations Association

Member, Institute of Management Consultants of Nigeria.


Consultants of Nigeria

Registered Consultant (Bureau of Management Consulting,


Canada)

170
Member, Nigerian Institute for Training and Development

Fellow, Institute of Business And Management Studies.

YEAR OF BIRTH: 1954

LANGUAGES: English and Yoruba.

KEY WORKING EXPERIENCE

Mr. Biodun ADESINA established B.A. Consultants Limited in 1991 following over
fifteen years of administration, teaching, research and consultancy experience in
Organization and Human resources management in the public and private sectors. Before
forming the firm, he worked as a consultant with Coppers & Lybrand Associates and
KPMG Peat Marwick Ani Ogunde Consultants. He is a specialist in Organization

171
Studies. Manpower Studies, Manpower Development, Business Process Reengineering
and Educational Consultancy.

PROFESSIONAL WORKING EXPERIENCE – 1987 – 2006

1991 – PRESENT: B.A. CONSULTANTS LIMITED

I established B.A. Consultants Ltd in September 1991 after 15 years


of experience in general Administration, Business Management, and
Consulting. Assignments handled under B.A. Consultants Ltd are as
follows:

BUREAU FOR PUBLIC REFORMS-2006


Participated in the training of retiring public servants for social assistance and
entrepreneurial development.
FIRST BANK OF NIGERIA PLC-2006.
Participated in the Business Process Review Workshop for the staff of the Systems
Department of the Bank as a means of improving the gains of the programme and

172
identifying the challenges so that suggestions can be made on the solutions to identified
problems.
NIGER DELTA DEVELOPMENT COMMISSION-2006
Participated in the NDDC Procedures Manual Workshop under the PM Global
Consulting.Specifically,I handled the procedures manual for the Corporate Affairs
Department.

SEEDS PRACTITIONERS TRAINING WORKSHOP-2005


Participated as a SEEDS TRAINERS for SEEDS PRACTITIONERS in such topics as
Public Participation, Communication, Involvement and Transparency; and Public
Administration aspects of the workshop. The Workshop was organized by the State and
Local Government and National Planning Commission and was facilitated by Phillips
Consulting.

EVANS MEDICALS PLC-2005


Participated in the Organization review, rightsizing and strategic benchmarking
assignment for Evans Medicals Plc, under the auspices of Deloitte Akintola Williams
Consulting

NAL BANK PLC

173
Participated in the Human Resource Due Diligence review of Nal Bank Plc (under the
auspices of Deloitte Akintola Williams Consulting) during the 2005 consolidation
exercise carried out under the instance of the central Bank of Nigeria

AFRIBANK PLC-2005
Participated in the Human Resource Due Diligence review of the Trade Bank Limited for
Afribank Plc (under the auspices of Deloitte Akintola Williams Consulting) during the
consolidation exercise carried out under the instance of the Central Bank of Nigeria.

PORT HARCOURT REFINERY LIMITED-2005


Participated in the team that analyzed the Human Resource aspects of the strategic plan
of the Refinery in the process of being privatized by the Bureau for Public Enterprises,
under the auspices of the Deloitte Akintola Williams Consulting. Specifically, I handled
the Capacity Building Review and Gratuity components of the privatization exercise.

DELTA STATE HOSPITALS MANAGEMENT BOARD-2005


Led a team of Consultants to carry out organization Structure review, Manpower
planning review, Rightsizing, Competency and Manpower development and
Training review under the auspices of Deloitte Akintola Williams Consulting, for
the Delta State Hospitals Management Board, Asaba

174
BOULOS GROUP OF COMPANIES 2005

Led a team to conduct an Organization, Job Evaluation and Salary Structure review for
the Boulos Group of Companies comprising of Boulos Enterprises Limited (Motor
cycle /Spare- parts marketing), Bel- Papyrus Limited Bel- Impex Limited (Paper
converters, Ogba/Oregun, Lagos.

NIGERIAN COLLEGE OF AVIATION TECHNOLOGY 2004

Led a team to conduct Organization Structure and Manpower Rightsizing review for the
Nigerian College of Aviation Technology, Zaria.

NIGER DELTA DEVELOPMENT COMMISSION 2004

175
Led a team of Human Resources and Organization Development Consultants to develop
and present Job Descriptions and Job specification manuals for 6 Directorates of the
Nigeria Delta Development Commission, Port Harcourt.

INTERNATIONAL PACIFIC SCHOOL (IPS)


LAGOS OUTREACH CENTRE OF ONDO POLYTECHNIC
OWO – YEAR 2000/2001

Developed up to eight Lecture notes and Instructional materials in courses such as


introduction to Business, Introduction To Insurance, Introduction To Banking,
Introduction To Management, Contemporary Social Problems of Nigeria, outline History
of Nigeria, Introduction To Law and Introduction To Public Administrator for the take
off of the Lagos Study Centre of Ondo State Polytechnic, Owo IPS Centre, Sanya
Grammar School, Sanya off Oshodi Apapa Expressway, Lagos. Taught most of the
courses listed above to the students and counseled students on their future careers.

ADVANCED SCHOOL OF MANAGEMENT


AND TECHNOLOGY, IDIMU, LAGOS – 1999/2000

176
Assisted in Developing Lecture notes and other Instructional materials for the take
off of study center, which is a branch of the Ondo State Polytechnic Owo network, in
Lagos. Delivered lectures, designed marking schemes and counseling students of the
study center.

UNION BANK OF NIGERIA PLC-


KPMG CONSULTING – 1998

Participated as the Head of the Human Resources focus Area Team of KPMG consulting
in the strategic. Planning and Process Reengineering assignment of the Union bank Plc.
Helped to design new organization structure, New Human Resources Management
strategies and systems. Manpower Planning and Audit Systems as well as Reengineering
the Human Resources Functions of the Bank.

INSTITUTE FOR BUSINESS AND


MANAGEMENT STUDIES – 1997

Facilitated the operational and Administrative Plans of the new professional Institute,
Assisted the Board of the Institute in designing forms, brochures, operational systems and
in establishing the Lagos study center for Ondo State University, functioned as the
Director of Studies at the inception of the institute.

177
Nigerian Planning Commission Lagos – 1992

Participated actively in the team, which assisted the commission to put in place the
necessary requirements for effective take off and performance of the commission. He
headed the sub-team that handled Organization Plan and Structure; Manpower Plan,
Training Plan, Job Description Manual and Recommendations for Redeployment of staff
of the commission.

Merchant Bank of Commerce - 1991

Performed Executive Selection and search services for the Bank and assisted
management in the final selection process for managerial positions of the Bank.

Nigerian Reinsurance Corporation Lagos – 1995

Participated actively in the review of manpower utilization of the corporation with a view
to conducting a staff Audit which recommended the ideal manpower requirements of the
Corporation. Also established the Job Description Manual for key positions in the
Corporation.

178
Taju Industries Nigeria Limited – 1994

Led the team that undertook a comprehensive work-study for the industry. The aim of the
assignment was to improve manpower utilization, reduce wastage, improve general
performance of staff and increase productivity in the firm.

Fowobi Group Of Companies – 1991/92

Performed several Human Resources assignments for this indigenous conglomerate. The
assignments include Manpower Planning, Executive Selection and Search Services,
Training Programmes and Remuneration Studies.

Ikeja Sauna And Health Centre – 1991/92

Assisted the company to manage its operations on contract basis. Also performed
advisory services for staff Recruitment and Selection.

Nigerian Institute of Management – 1991/94

179
Participated extensively as Guest Lecturer for NIM Courses in General and Human
Resources Management. Delivered over 30 lectures in Business and Personnel
Management for NIM between 1991 and 1994.

1990 – 1991 COOPERS & LYBRAND ASSOCIATES LIMITED

Joined Coopers & Lybrand Associates in April 1990 as a Senior


Consultant.

Nigerian Mining Corporation, Jos – 1990

Led a team, which reviewed the Manning levels and conducted a Personnel Audit of
the strategic Federal Government Parastatal with branches in 20 States of the country.

Mobil Producing (Nigeria) Plc – 1990

Participated in an Upward Feedback (subordinate) assessment of supervisory and


managerial class of the major oil producing company.

Nigerian Deposit Insurance Corporation – 1991

180
Led a team, which reviewed and compiled Job Description and Job Specification
Manuals for the Corporation.

Chartered Institute of Bankers of Nigeria – 1991

Participated in the data collection, data analysis and report writing for a Ten year
Strategic development plan for the major professional bodies in the financial sector of
the Nigerian Economy.

1987 – 1990 KPMG PEAT MARWICK ANI OGUNDE


CONSULTANTS

SCOA Nigeria Plc – 1985-1987

Handled the review and development of the personnel policies and practices
At divisions of a major publicly quoted multinational conglomerate group in Nigeria.

Mercantile bank of Nigeria


Plc – 1987

181
Led a team of consultants that conducted a review of and developed the organization
structure, manning levels and personnel policies for the well-established commercial
bank having about forty branches in Nigeria.

SBM Services Limited – 1987

Performed advisory services on industrial relations and assisted management in


negotiating with workers’ unions of the medium sized oil servicing company based in
Nigeria.

Benne Brewery Limited, Makurdi – 1988

Led a team which reviewed and developed the personnel and General Administration
procedures manual.

Benue Links Limited, Makurdi – 1988

Led a team which reviewed and developed the administrative system for the state
parastatal .

182
Gamji Bank Limited, Sokoto – 1988

Led a consulting team, which reviewed the organization structure and manning levels
at the senior management level.

New African Merchant Bank, Kaduna – 1989

Led the consulting team which designed a Job Specification, Job Description,
conditions of services and a remuneration structure .

Federal Mortgage Bank, Lagos – 1989

Led in a consulting sub-team which performed a review of the organization structure,


management audit, personnel politics, remuneration structure, performance appraisal
system and industrial relations activities of the development bank (in Nigeria) in its
preparation for privatization.

Industrial Bank Ltd (Merchant Banker) Lagos – 1989

183
Led a team, which reviewed the Manpower Utilization, conducted a personnel Audit
and determined the appropriate manning levels.

George Cohen Nigeria Limited, Apapa Lagos – 1989

Member of the team, which reviewed and developed the business plans, corporate
structure, manning levels and job description manual of the leading steel stocking and
crane hiring company.

George Cohen Nigeria Limited, Apapa Lagos – 1989

Served in a consulting team, which designed the personnel procedures, staff


performance analysis, purchasing, marketing and operations manual for this steel
marketing company.

Arewa Ceramics Ltd Misau, Bauchi State – 1989

184
Member of a team which reviewed the conditions of service and manning levels of the
newly established medium-size ceramics company based in the northern part of
Nigeria.

Bible Society of Nigeria – 1987

Member of a team, which reviewed and developed the personnel policies and
procedures of a religious organization.

Access Bank Plc – Apapa Lagos - 1989

Led the team that reviewed the administrative procedures and compiled job
Descriptions/Specifications manual.

Miscellaneous

Served on teams, which carried out the following assignments.

- Survey of Organization Structure and manning levels of


merchant banks in Nigeria; (1988)

185
- Survey of remuneration principles and practices of
professional/management consultancy firms in Nigeria;
(1989)

- Survey of conditions of services amongst the breweries in


Nigeria (1988)

Training Seminar - (1988 – 1989)

Played active role in the designing and execution of training programmes (for clients’
participants) organized by Peat Marwick’s Manpower Development Division.

Executive Selection (1988 – 1989)

Played active role in the designing and execution of training programmes (for clients’
participants) organized by Peat Marwick’s Manpower Development Division.

Executive Selection (1987 – 1989)

186
Served on teams which handled over 100 executive selection assignments for various
clients in financial, commercial, manufacturing and public sector.

1985 – 1987 SCOA ( Group)-1985-1987


Manager (Personnel)

1985 Ogun State Liaison Officer – Responsible for management of Liaison office, protocol,
general personnel administration of the liaison office’s staff.

– Nov. 1984 Zonal Schools Board, Ijebu Ode

Secretary – Responsible for personnel management of about 5,000 teaching and non-
teaching staff of secondary and primary educational institutions in Ijebu-Ode, Ogun
State, and administration of staff Payroll running into N1 million for about 1000 staff
monthly.

1984 Department of Establishments and Training Abeokuta

Administrative officer (Grade VI) Responsible for interpretation of Administrative


rules, industrial relations and examination matters.

187
Office of Head of Service, Abeokuta

Acting Administrative Officer (Grade V) He was Secretary to Ad-hoc Commission.

Ministry of Lands and Housing, Abeokuta

Administrative Officer (Grade VII) – responsible for establishment and general


matters for Lands & Housing staff of the State Government.

1982 Central Schools Board/Teaching Service Commission Abeokuta

Administrative Officer Grade VII – Functions as Head of Recruitment and Selection of


over 500 Secondary School Teachers in Ogun State for the free Education Programme
of the State Government.

978 – July 1979 National Youth Services Corps

Functions as a Secondary School Teacher of Geography, Social Science and


Government at Federal Government College Ilorin for the National Service.

188
POWER DEVELOPMENT AND TRAINING
SES ATTENDED BY ME

nduction Course for Newly Recruited Administrative Officers –


gun State Government Service – 1979

Management Trainees Course – SCOA Nigeria Plc – 1985/1986.

ndustrial Relations Forum – Institute of Chartered Accountants of Nigeria – 1989.

nagement Consultancy Workshop – Institute of Chartered Accountants of Nigeria– 1989.

ffective Report Writing Course – Coopers & Lybrands Associates - 1990

6. Effective Presentation Course – Coopers & Lybrands Associates - 1990

7. Time Management and Delegation Techniques – Folio Consultants - 1986

8. Effective Staff Performance Appraisal Court – Folio Consultants – 1986.

189
9. Training Function workshop – Industrial Training Fund - 1986

10. Train – The - Trainers Course – Mac Tay Tack Training Consultants – 1987

11. Personnel Management Conference – SCOA Nigeria Plc – 1987


12 Wages Determination and National Development-National Productivity Workshop-
1993.
13.Entrepreneurship Projects Skills Workshop-University Of Ibadan Consultancy
Workshop-2005.
SEEDS FACILITATORS WORKSHOP-SLGP/DFID WORKSHOP (Facilitated
By Phillips Consulting)—2005
15.Internet Wealth Creation Workshop-Triotech Consulting-2006

MERITS HONOURS AND ACCOMPLISHEMENT

1. Won the Ogun State Merit Scholarship for Geography Course – 1976.

2. Won the University of Ibadan Merit Scholarship in Geography – 1977.

190
3. Won the Head of Service Commendation Letter for excellence in the compulsory
examinations for Administrative Officers examination in which I passed Five
Papers – General Principles of Law, Public Service Commission Regulations,
Financial Regulations, General Orders and Local Government Law with Distinctions.

MANPOWER DEVELOPMENT AND TRAINING PROGRAMMES DESIGNED


FOR NIGERIAN PUBLIC AND PRIVATE SECTOR ORGANISATIONS

1. Corporate and Strategic Planning Workshop

2. Strategic Thinking and Tactical Management

3. Manpower Developments and Planning

dgeting and Budgetary Control

191
vance Management Course

in – The – Trainers workshop

anizations and Management Course

naging Interpersonal Relations Effectively

naging Change Constructively.

anaging Meetings Effectively

fective Staff Performance Appraisal Course

nducting Manpower Audit Objectively

fective Public Policy Formulation Strategies

fective Maintaining of the Current Rolling Plans and Programmes.

fective Management of Public Financial Resources

192
ategies for improving Re-payment Audit of Public Resources.

actical Problems Solving and Decision Making Process.

tting Realistic and Measurable Performance Standards for Public Servants.

proving Revenue Generation Strategies for Local Governments

mputerization of Public Service Operations

anaging Inter-Governmental Relationship Effectively

oject Management Strategies for Local Government

orkshop on Improving Tax and Revenue Administration in Nigeria

anaging Public Debts Effectively

sic Administrative Skills Course

193
sic Management Course.

SOME OF THE LECTURE NOTES WRITTEN AND DELIVERED BY ME

Nigerian Economy: A Contemporary Analysis

velopment of Industrial Relations in Nigeria

lysis of Positions/Job Descriptions – The inter – relationships.

ormance Standard

nagement by Objectives

ctive Performances Appraisal

eloping Office and Public Relations

194
oduction to Industrial Relations

ctive Decision Making

ganization Development

naging Executive Time Effectively

adership and Motivation in Management

ng Techniques and Information

e Concept of Management Auditing

nciples of Good Human Relations

ganization and Methods: Nature and Purpose

diting the Control Function

recasting Techniques for Effective Planning Function

195
anagerial Work Simplification and Productivity Improvement

twork Analysis Techniques

anaging C
s Effectively

ecutive Appraisal

llective Bargaining & Negotiation Techniques

fective Communication

fective Manpower Planning

fective Delegation Techniques

roduction to Corporate Planning

28. Corporate Strategic: Formulation and Implementation

196
29. Human Relations for Effective Management

30. The Training Function.

31 Sourcing and managing Funds by SMEs

32 Basic Accounting Skills For Skill

33 Basic Business Skill

34 Basic Management Skill

35 Basic Selling Skill

36 Internet Wealth Creation Workshop

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