BANK OF BARODA

Leadership Challenges

GROUP 5
ASHWARYA BISEN – PGP/24/441
IPSA HARDAHA – PGP/24/446
MUSKAN VALBANI – PGP/24/456
SOURABH GUPTA – PGP/24/474
T M NIVED – PGP/24/482
 Leadership & Change Management
Bank of Baroda

Contents
An Introduction to Change Management....................................................................................................... 2
The Case of Bank of Baroda: Leadership Challenges in Change Management................................................. 2
Why Change Fails? ........................................................................................................................................ 3
No Urgency ............................................................................................................................................ 3
No Coalition ........................................................................................................................................... 4
No Vision ................................................................................................................................................ 4
Poor Communication.............................................................................................................................. 4
Obstacles Not Removed ......................................................................................................................... 4
No Wins ................................................................................................................................................. 5
Premature Victory .................................................................................................................................. 5
No Anchoring ......................................................................................................................................... 5
Change Management Checklist ..................................................................................................................... 5
How to finalize the Checklist................................................................................................................... 5
McKinsey Checklist Transformational Change ......................................................................................... 5
Goals: Progressive Change with Stretch Targets .............................................................................. 6
Structures: Logical Problem ............................................................................................................ 6
Involvement: Ownership and Engagement...................................................................................... 6
Exercising Strong Leadership........................................................................................................... 6
Stage Models of Change Management .......................................................................................................... 6
Kurt Lewin’s 3 stage model of change ..................................................................................................... 6
Kotter’s 8 stage model of change............................................................................................................ 7
The Classic Change Curve ....................................................................................................................... 8
Process Perspectives on Change .................................................................................................................... 8
Changes in Bank of Baroda ................................................................................................................... 10
Comparison between both CMD’s Style ................................................................................................ 11
The Change Kaleidoscope ............................................................................................................................ 11
Contingency Approach to Change Implementation ...................................................................................... 12
The Tannenbaum-Schmidt Continuum.................................................................................................. 13

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An Introduction to Change Management

Organizations in general face an increasingly dynamic environment, both internally and externally, irrespective if
the business they are in, the size of the organization and the parties with which it interacts. Drawing from multiple
disciplines, Change Management is the essential theory that guides the creation and simultaneous implementation
of certain structures, roles, procedures and mechanisms that the groups in an organization use to effectively
manage the people side of a change. Furthermore, this change needs to be integrated with the design of the
organization in a strategic manner requiring a structured approach and high level of cooperation between the
independent entities in an organization. Thus Change management not only involves getting everyone on board,
preparing and supporting employees, and establishing a entire procedure for the change to occur but it also
requires constant pre and post change monitoring for a successful implementation.
The immediate attention is now drawn towards who is involved in this process of change management. Since a
change has usually been witnessed to fail due to human reasons; that being one strong reason and nit the only
reason, it is required that each ‘gear’ of the organization (figure 1) below fulfills their specific role. Evidently, a
leader needs to emerge to drive this change who can effectively communicate the importance and expectations of
the process. A change manager usually assumes the role of a leader in such a case and can facilitate assessments,
indulge in creation of a change management strategy and development of plans for change management however
a gamut of other people are also involved in this process.

Figure 1 Change Management: Key Players

The perspective of ‘change’ is also something which differs. From the organizational point of view, Change
Management is essentially to have in place an extremely structured, strategically planned change management
process that is suitable to the nature of the change. On the other hand, from the point of view of the employees,
the understanding of Change Management takes more of an individualistic view wherein it is important for an
employee to just understand what the change depicts and how it would personally effect the respective employee
in terms of the skill gap that might arise.

The Case of Bank of Baroda: Leadership Challenges in Change Management

Case Facts:

The Indian banking industry was facing a twin challenge in the year of great recession; 2008. Firstly, the continuous
deregulation of the banking industry with changing FDI norms was adding to the uncertainty of the business.
Secondly, the global financial crisis in 2008 created an extremely difficult situations for the banks across the globe

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as most the banks were going bankrupt. To add to the challenges, Indian banks were at an even worse position as
the customer expectations heightened during the period of 2000-2010 as the Indian banking industry saw an influx
of foreign banks offering Personalized Banking Experience, an impressive ambience and courteous services to all
their clients. This created a fierce competitive environment in the banking industry wherein the public banks were
at a risk of losing all due to the competition and rapid technological expansion that was being undertaken by foreign
banks and Indian private banks.

Contrary to the general opinion that public banks were lethargic and lacked the willingness to expand or adapt to
the changing environment, the case discusses Bank of Baroda (BOB), one of India’s largest Public Sector Bank and
the challenges it faced in keeping itself relevant in the modern era between the periods of 2005-2008. The case
mainly elucidates on the work of the 2 CMDs, Anil Khandelwal and Mangalore Devadas Mallya. BOB was ranked
third amongst all other banks in India in 2008 and this was a result of the actions and decisions made by these two
gentlemen. The leadership styles of the two CMDs were totally different but both strived towards the same
objective.

Being an insider to the bank, Dr. Khandelwal was appropriately aware of the bank’s strengths and weaknesses and
wanted to turnaround the bank from its losses as the new CMD in 2005. The following changes were identified as
important to be brought about by Dr. Khandelwal as he recognized the gradual decline in the bank’s growth which
triggered the need to transform, in order to regain the lost glory. Vision 2010 was created by the CMD and a new
brand identity “The Baroda Sun” and a new tagline to associate with the bank “India’s International Bank” were
used. Broadly, the objectives was four dimensional; increasing customer satisfaction and convenience, bringing
efficiency in the sales and marketing function of the bank, simplification of the process for employees, and
Enhancing BoB's competitiveness in the market with increased the profitability, greater market share and improved
process efficiency.
In 2008, the bank employed Devadas Mallya as the new CMD at BoB. An outsider to the bank, his vision for the
bank was very much aligned with that of Khandelwal; to be specific it was two-fold:
(i) To make the bank a customer-centric bank
(ii) To quadruple the bank’s profits

Driven by the passion to bring about this change in the bank, he planned on launching multiple Gen-Next branches
under the organization’s name.

However what both the leaders overlooked was the deep-rooted bureaucratic culture in the organization and thus
the restructuring did not reap the fruits that were expected.

Why Change Fails?

No Urgency
“If employees don’t see the need, then they will not be motivated to change, management must create a sense of
urgency”

The case states that BOB suffered from the typical malaise of large public sector organizations and therefore,
although change was taking place, it was slow. Response times were too long and the bank was operating using
outdated processes and technology. Also, findings from the employee engagement and customer satisfaction
surveys conducted in September 2009 were highly disappointing for Mallya, given his ambition to quadruple the
revenue. This clearly illustrates the need for urgency in the change process.

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No Coalition
“One or two people acting on their own can’t drive big change, management must create a coalition with the
expertise & power to make it happen”

In 2008, Mallya addressed a large number of town-hall meetings comprising 500-1500 employees all over the
country. He took the opportunity to meet and address a large percentage of employees wherever he went. He
addressed people across the board, not just officers or clerks, and in a rare gesture, even members of sub-staff
were called. This clearly indicates that the CMD was trying to form a coalition. Also, in Aug 2008, the CMD organized
two-day meeting in Banglaore in which all the general managers, deputy general managers and area managers
participated. This meet created strong bonds among the members of the top management team. However, there
is still a long way to go as not everyone was on-board with the change process.

No Vision
“Without a picture of the future that is easy to explain & understand, a change program becomes confusing; change
needs a clear vision”

Mallya had an ambitious vision for BOB. He shared his vision of making BOB one of the most in-demand and
customer oriented public-sector bank in India and increasing the profits fourfold, which he aimed to achieve by
launching new initiatives and improving customer service. He was also clear that this would require the bank to
develop a more advanced marketing and sales structure with timely implementation of sales campaigns and
business targets. He was also determined to implement the technology infrastructure strategy laid out by
Khadelwal.

Poor Communication
“Giving people an important message once is not enough; the vision must be communicated repeatedly by
management, in words & actions”
Within the first week, Mallya sent an open letter to the staff sharing his philosophy and vision. He spoke about his
policy of “employees first” and made it clear that every employee was an asset of the bank and that the bank’s
customers would only be happy if the employees were happy. In order to communicate his vision and values, he
deliberately started his tenure in BOB by informally meeting with all of the employees from all levels. Within the
first two months, Mallya looked for every opportunity to listen to and understand BOB staff and the Barodians.
These actions gave a signal to the employees that they were not being ignored in the change process but more
needs to be done in order to be able to communicate the urgency, need and significance of the transformation
process.

Obstacles Not Removed

“Structures, design of jobs, reward and appraisal systems, and key individuals can get in the way; the obstacles must
be confronted and removed”

The general manager of human resources said – “The chairman closely involved himself in this exercise. Each
person’s background, track record, etc. were focussed upon in-depth, and senior officers helped him get a detailed
understanding of each of the candidates. This was subsequently used to give the right postings and promotions to
people.” We can therefore see an effort from the CMD to remove obstacles from the change process and handle
them effectively.

Results, however, clearly indicated low customer responsiveness and low employee engagement. These are some
of the key obstacles that need to be addressed on priority basis to be able to bring about any real change in the
organization.

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No Wins
“Change takes time, and momentum can be lost without interim achievements to celebrate; management should
create and reward short-term wins”

The goal to quadruple the profits of the bank as soon as possible, is not something that can happen overnight. If
people see this goal as far-fetched they may not feel the need and motivation to take necessary action to try to
bring about a change. Therefore, it becomes crucial to break down this goal of quadrupling the profit into smaller
milestones and fulfilment of those milestones must be celebrated. Also, it is crucial to set small periodic goals for
the “Nav Nirman” program.

Premature Victory
“The job is not done when improvements appear; it is a mistake to ‘declare victory’ too soon, before the changes
are embedded”
It is crucial to realize that sustaining and freezing the change in the organization is at least an equally important task
as reaching that change, if not more. Therefore, in the event the bank is able to make a successful transformation,
plans and policies must be set in place to sustain that change and make that the new status-quo in the organization.
Things must not be taken with a lethargic attitude after achievement of the set goals for transformation.

No Anchoring
“Change that is not seen to be beneficial will decay & next generation of managers may not continue the work; the
change must be seen to have worked”

Mallya, in the given case, does see the work of the previous CMD as crucial in bringing about a change and also
talks about taking forward the legacy of the technology infrastructure strategy set out by Khandelwal. It is very
important that all employees of the organization also see the work of previous management to have brought about
a change, otherwise they will see the efforts of the new management also as just a nuisance and a façade.

Change Management Checklist

 Dice Model
 Mckinsey Checklist
 ADKAR change model
 Jeffrey Pfeffer and Robert Sutton

How to finalize the Checklist

Step 1: We can use checklist as a structured format and starting point

Step 2: It is important to check the fit of each and every model with the different situations

Step 3: We can try to apply different approach with the same scenario and can compare the different results

Comparing the transformational change by Mallya the new CMD of the Company. Joined in 2008 at the time of
global economy crises and implement certain changes to improve the financial and working efficiency of bank

McKinsey Checklist Transformational Change

There are four tactics in McKinsey Checklist
• Goals
• Structures
• Involvement
• Leadership

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Goals: Progressive Change with Stretch Targets

Mallya has a fixed growth target to quadruple the profit in short period of time and converting the annual profit
into quarterly profit. Mallya’s key idea behind this is to encourage employees to focus on strengths and
achievements and not just on problems. It is also important to have unambiguous measures of success, using
“stretch targets,” with milestones and information systems to ensure that progress was constantly monitored and
problems could be addressed quickly. They follow the practices to avoid defensive transformations that are reactive
and focus on cost cutting. And Mallya also realized that progressive transformation (going for growth, improved
performance, expansion) succeeded 50 percent more often than the defensive transformation (reactive, cutting
costs).

Structures: Logical Problem

Mallya explained everyone that the success was linked to break the change process down into specific, clearly well-
defined initiatives, with a logical problem, which those who were involved were allowed to shape or to “co-create”.
Almost a quarter of the successful change initiatives had used planning groups of 50 or more, compared with only
6 percent of unsuccessful change programs. Clear roles and responsibilities, so that staff felt accountable for
producing results, were also important success factors. After joining the office Mallya shared his vision and
philosophy. And communicate his policy of “Employee first”. He consider every employee as the asset of the bank.
Involvement: Ownership and Engagement
Mallya made it very clear to the other employee that the success is associated with the high levels of employee
engagement and collaboration. All kind of changes made aby administration are successful only if the frontline
worker felt the sense of responsibility and ownership. Frontline worker should took initiative of what is happening
and drive the changes. This meant high levels of communication and involvement at all stages of the
transformational process. Within the first two months the Mallya looked for every opportunity to listen to and
understand the BOB staff and barodians. He start meeting people formally in small and large groups to understand
the people and bank.
Exercising Strong Leadership
Leadership capabilities are important, along with the personal commitment and visible involvement of the chief
executive. Leaders should “role model” the desired changes, focusing on organization culture and developing
capacity for continuous improvement. Staff gain new capabilities through the transformation process, and
organization cultures because more receptive to further innovation.

Mallya made a good connection between employees with the first few months only. When he conducted the first
business review conference and to everyone’s surprise, he was the only person to present throughout the entire
conference. He also participated the annual promotional exercise of the bank. And also the general manager
highlighted that the Mallya is exercise the each and everyone’s background and focused in-depth and senior officers
helped him to get a detailed understanding of each of the candidates. He had a very strong connections among the
employees, initially he was seen as an outsider, but the average employee of the bank become suddenly motivated
to go the extra mile in whichever area of activity because the staff realized that this is one chairman who is
employee-friendly.

Stage Models of Change Management

Kurt Lewin’s 3 stage model of change
As emphasized on earlier, Change Management is a procedural theory and thus each change that occurs in a
structure, it occurs in phases/stages. The most renowned model that tends to study this the transition of an
organization and its elements as it undergoes a change is the Kurt Lewin’s 3 Staged Model of Change.

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The model is a simplistic representation of the change proxess and entails that a perception which views change
in phases, the first being a need for the change, the second being movement towards the new, desired change
and behavioural patterns, and thirs is the solidification of the new behaviours and norms.
Stage 1: Unfreezing
Before a change can be implemented, it is bound to face resistance from various elements of an organisation that
might get affected by the same. Thus, prior to the change implementation, an initial step of unfreezing aims at
creating an awareness of how the change might be blocked by the status quo; the current levels of acceptability.
This requires a thorough and careful assessment of the existing behaviors, thinking patterns, processes, people
and structures to maintain a competitive advantage in the marketplace. Communication is all the more essential
at this stage to familiarize people with the change, the logic behind it, the effect of the same on people and it’s
urgency/profitability The concept is to create a sense of urgency to motivate people to accept the change
We see how leaders at Bank of Baroda failed to completely execute the most primitive step in the change model;
unfreezing. This is evident from the case as the leaders were so driven by the vision that they failed to work
towards unfreezing the attitude of the employees towards the change. Bureaucracy still remained within the
culture and the vision was not effectively communicated downwards.
Stage 2: Changing
Having been 'unfrozen' people are now ready for the transition phase which is the second stage under this model;
The Changing stage. This dynamic step, is marked by the implementation of change and it emphasizes on the
reality of the change. Consequently this stage is characterized by uncertainty, fear and excitement as people
begin to learn new sets of behaviors and processes. Education, communication and top level support becomes
essential at this stage as it makes the employees prepared for the change and thus much more competitive,
bringing ease at implementing the change. However it must be noted that the reasons for the change and how it
will benefit the employees once fully implemented must be reiterated throughout this stage.
The transition to the change; technological up gradation or customer centric initiaves were not implemented
completed and were still under-way at Bank of Baroda. The necessary plans were not chalked out and the
implementation lacked any structure. The leaders could have taken up
Stage 3: Refreezing
Refreezing, the final stage epitomises the reinforcement, stabilization and solidification of the new behavioural
patterns, thinking processes and procedures after they have been implemented. The adjustments made to
organizational processes, goals, structure, services or human beings are established and refrozen as the brand
new norm or reputation quo. Lewin determined the refreezing step to be mainly critical to make sure that human
beings do now no longer revert again to their vintage methods of questioning or doing previous to the
implementation of the extrade. Efforts ought to be made to assure the extrade is now no longer lost; rather, it
wishes to be cemented into the agencies lifestyle and maintained because the suited manner of questioning or
doing. Positive rewards and acknowledgment of individualized efforts are regularly used to enhance the brand
new nation due to the fact it's far believed that definitely bolstered conduct will possibly be repeated.

Kotter’s 8 stage model of change

Here is an analysis of the 8 stages of change that Bank of Baroda could or could not go through effectively as per
Kotter’s model of change.

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Figure 2 Kotter's 8 Stage Model of Change

The Classic Change Curve

With consistently low customer responsiveness feedback and low employee engagement Levels, BOB was stuck in
Despair

Figure 3 Classic Change Curve

Process Perspectives on Change

Checklists and Stage model covers many issues, but some issues persist, which is addressed with process
perspectives. Process perspectives draw the change manager's attention to problems not considered by either
checklist or stage models. Process thinking increases the change manager to adopt a more comprehensive approach
to designing, planning, implementing and reviewing change activities as making any change will be a complex task.
Processual perspective was established for the first time, i.e. the original architect Andrew Pettigrew had the central
ideology that rather than looking at a single factor of change and simple understanding, multiple factors have to be
kept in check to have a better experience.

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According to Andrew Pettigrew:

"Procedural perspectives have many related factors – organizational, individual, political, group, social that can
affect the nature and outcomes of change."

Pettigrew understood that change will always be complex, including individual perceptions, and it will be mixed
with rationally made decisions. Whenever a change happens, a shift occurs, and this shift mainly has two main
implications.

Pettigrew's two main implications:

 Pay attention to the flow of events and not think of changes as either static or nearly time-bounded with
defined beginning and endpoints.
 Paying attention to the wider context in which change occurs and not thinking about a particular location
in time and geography.

In a nutshell, he wanted to say that to understand a change, one must know how the difference is related to the
context, process and substance over time.

Process perspectives were further looked upon and modified by Patrick Dawson and Andriopoulos. According to
Dawson and Andriopoulos, to understand Change: The time frame, i.e., the past, the present, and the future
contexts in which the organization function, usually affects a change, including a lot of factors like the external and
the internal. The next factor affecting the difference is the substance itself, which can broadly involve any new
technological changes, new designing of a process, a new system to make and accept payments, or any change to
the organization's structure and rule and regulations. Political activities and how the organization is linked to that
or how the change will influence any political agenda will also be another critical factor to understand the change.
This political aspect can be considered as internal as well as external. Other important factors are the different
tasks, activities, timing, decisions, transition process and sequencing. Now the interactions and connections
between these pointed out factors also help to understand the change. According to them, the change manager
should be willing to get included in the political process.

Dawson was able to identify five other central aspects of the internal context, which included the structure, using
technology, history of the company, the human resources and the culture existing. Process perspectives always
ensure that the change manager is made aware of every possible outcome, thus making it in-depth research, but it
simultaneously complexes the task.

Three Strengths of Processual perspectives:

 Change is always recognized as a complex process with all the information about the past, the present,
and the possible future contexts rather than considering it as a simple or a time-bound event.
 The complexity of the change can be easily recognized by paying attention to the connections of all the
factors explained by Dawson and their interactions at various levels, which will help shape, direct, and
look at the possible consequences of the change.
 The political nature of the change and its effect on the stakeholders, including the organization, will be
highlighted. It will also bring the importance of the political skill in the change manager to notice.

Three limitations of Processual Perspectives:

 It is considered that change that happens in process perspectives is vulnerable and dangerous. It can
sometimes be very complex, which will make it challenging to understand to the change manager. It can
confuse the manager, making it not so easy to manage.
 A change involves a lot of characters, but due to the complexity, it is usually portrayed that the characters
are treated as minor characters when it comes to a lot of events, relegated to the role of sense-givers

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who are generally controlled by the forces which may include social, contextual etc. rather than as the
characters who take things in their own hands.
 Pieces of Advice in process perspectives are limited to only a specific set of problems to which change
management is sensitive, which includes different opportunities, political influences, complexity etc.

Changes in Bank of Baroda

Under Anil Khandelwal,

 He focused and started making Bank of Baroda a market-oriented and customer-centric bank, and he
wanted all his employees to target at satisfying the customers.
 He understood that the technology has to be improved to serve multiple customers simultaneously and
plan to upgrade the banks' Technology infrastructure.
 He launched several customer-centric innovations, such as introducing 12-hour banking and an extension
of the automated teller machine networks.
 He wanted to make loan processing easier for the customers, so he redesigned the branches' role and
created a centralized Processing Unit for loan sanctioning.
 He not only marginalized the employee unions but also reduced their role in the decision making
processes.
Under him, employees have struggled as the number of changes that were getting implemented were not normal
for them. Employees were constantly under the pressure of meeting their targets or else they would be transferred.
This caused many employees to take a voluntary retirement scheme and leave the company.

Under Devadas Mallya,

 He was focusing on the ideology of Employees first, i.e. every employee is an asset. He understood that if
the bank has to grow, employees should be given priority, and in return, they will be able to satisfy the
customers' demands.
 He mainly focused on three core values: trust, transparency and togetherness. He believed trusting each
other, having clarity in the decision making, and the feeling of achieving targets together will not only
lead to better results but will also help the employees to share a common goal.
 He started to organize Informal and Formal meetings with all the employees at all levels. Both these
meetings' primary purpose was to understand the employees' point of view and what they want from the
company and understand his perspective and goals.
 He understood the bank's future would be the youngsters as many senior employees were getting retired
soon. So he started the Creation of Next Gen offices, which would help the young minds think and take
the company forward.

In his way of leading the company, he made sure that all the employees are aware of his company's goals and
wanted all the employees to work together to achieve that target. Employees were in a better situation mentally
as they were under Khandelwal. However, the sudden relaxation was seen affecting their work due to which in
2009 survey they were still unable to achieve the targets they had set under the outsider, Mr Mallya.

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Comparison between both CMD’s Style

Khandelwal Mallya

• Customer centric • Employee first

• Forced employee to stretch their working • Motivate employees to go the extra mile and
hours and go for extra mile by linking their become successful in building trust among
salary with individual target. them as employee friendly.

• Khandelwal tries help their employee by • Mallya tries to make personal connection
providing them counselling facilities. with their employee and listen to them.

• Very much focused towards bringing the new • Not that focused on technology try to bring
technologies and providing training to the new things according to the comfort of the
employees. employees.

• Believe in making each employee confident • Believes in collaboration and coordination

enough so that they can make decisions
instead of relying on others
• Directly communicate with only upper level
managers and believe in concentric power.
and try to engage all employees for better
understanding of work culture.
• He addressed people across the board not
only officers but also the member of sub-
stuff.

The Change Kaleidoscope

The Change Kaleidoscope is based upon the 8 pillars:

 Timing – The change in leadership procedure had to be implemented at a faster pace. Hence, to ensure
that the changes have been made thoroughly, they had to be made in such a way so as not to considerably
affect the existing leadership. Since, there was a lot of competition in the market amongst the banks to
improve their rankings, the changes would be needed to be implemented as soon as the layout of the
changes were set.
 Scope – There is a need to change the perception of lazy public sector image among the employees. Public
sectors usually have a negative image regarding their productivity related issues and work culture.
Therefore, employees should try to bring about the difference in the organization to work for the
organization and its changes.
 Need for continuity – Bank of Baroda should continue the legacy of Khandelwal in order to gain success.
Hence, during Mallya’s tenure, he tried his best to develop personal relationships with the board members,
employees and other staff members. He was focussed on achieving revenues and changing the
organizational culture by not taking shortcuts and implementing full proof strategies.
 Capability of those involved – All the stakeholders and employees had to involve their capabilities and
knowledge and work together collectively to change the organisational structure. Employees should
develop a mind-set to accept the new changes under the leadership of Mallya, to bring about a considerable
change in the organization.
 Diversity of attitudes – There was a dire need to change the mind-set of the employees to customer centric.
During Khandelwal’s tenure, employees’ attitude was gradually changing. Earlier they were indifferent

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towards the customers and avoided taking independent decisions, but in Mallya’s tenure, employees
started to take their own decisions and use their own expertise and knowledge to the table.
 Capacity of the organisation – At the end of the article, it is mentioned that Mallya was confused about
the organisational capabilities towards bringing about a change. He pondered upon the thoughts of the
magnitude of the changes that were required to build a customer- centric organization. Mallya thought
that although Bank of Baroda was not the only bank that scored poorly on the customer service ranking, he
still thought that making BOB more customer- focussed would make BOB more competitive.
 Readiness for a change – Mallya worked hard to change the employees’ perception and to bring about a
lot of changes in the organizational culture. With the philosophy of ‘trust, transparency and togetherness’,
Mallya had a very ambitious vision for BOB. Staff members were not much customer savvy, and there was
a much-needed cultural change requirement in order to achieve the goal of quadrupling revenues.
 Power of the change manager – Mallya gained a significant hold on the organization, its employees,
federations and unions and managers. He also interacted with a large number of people in the industry to
know its potential customers.

Contingency Approach to Change Implementation

Contingency approach to change management focusses on the fact that people, organizations and situations might
change over time. Dunphy model of Contingency Approach to Change Implementation focusses on two aspects:

 Leadership styles in order to bring about a change in the organization

 To identify the level of changes and the extent of the same (Style and scale)

This includes 4 pillars – Participative evaluation, Charismatic evaluation, Forced evaluation and Dictatorial
Transformation

Figure 4 Strategies for Change

In the beginning of the BOB case, there is a need for dictatorial transformation among the senior employees
specially, since there is a resistance among them to bring about a cultural change in the organization. Hence, in the
beginning the leadership style can begin with the dictatorial change, then gradually move to charismatic style of
leadership, as Mallya was beginning to develop influence within the organization. He is currently trying to follow
participative management. He believed in collaborating and coordinating with the employees for better
understanding of work culture.

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The Tannenbaum-Schmidt Continuum

There are 4 management styles:

 Tell – The leader informs the employees about the final decision and it it’s up to the team members to
accept it or not.
Disadvantages – In this case, this might cause resentment among the employees since, it doesn’t use their
experience and ideas into account
Advantages – The decisions communicated would be quick and unambiguous
 Tell and Sell – The manager had to tell and persuade the other members to accept the strategies
Disadvantages – Disadvantageous consequences for staff members
Advantages – In this case, management remains in control, and it is easier to convince people to take
decisions with respect to BOB case
 Consult – In this case, the manager consults all the team players and then asks for their opinions and then
decides upon the final result
Disadvantages – If Mallya would resort to this style, it would be time consuming and time was of prime
importance, since it was necessary to implement changes as soon as possible.
Advantages – Staff at BOB, would be more motivated to work, since they would feel that their opinions
would be more valued now. Better decision making would result in better results in this case.
 Participate – The manager asks the team players to join in the decision-making process jointly and results
are shared by all.
Disadvantages – There can be problems of conflicts in accountability and process can be time consuming
as well in case of changing the mind-set of staff.
Advantages – This should lead to best decision-making processes.

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