A PROJECT REPORT

ON
PLANNING CHANGE IN EMPLOYEES

Submitted in partial fulfillment of the award of the degree of

Bachelor of Business Administration

SUBMITTED BY:
ATUL
ROLL NO.:

UNDER THE GUIDANCE OF:

JIMS

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL

NEW DELHI
 CERTIFICATE

Certified that this project report “Planning Change in Employees”is

the bonafide work of “Atul” who carried out the project work under the
supervision of ___________.

SIGNATURE SIGNATURE

HEAD OF THE DEPARTMENT Project Incharge

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 DECLARATION

I hereby declare that the project work entitled “Planning Change in Employees”
submitted to the GURU GOBIND SINGH INDRAPASTHA UNIVERSITY, is a
record of an original work done by me under the guidance of Mr. _____________, and
this project work has not performed the basis for the award of any Degree to the best of
my knowledge.

ATUL

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 ACKNOWLEDGEMENT

I acknowledge the sincere assistance provided to me from several rather unexpected

quarters during the course of execution of this study. It would be a mammoth task to
place on record my gratitude to each and every one of them but a whole hearted attempt
would be made nevertheless, least I be branded ungrateful.

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 TABLE OF CONTENTS
Content Page No.

Certificate 2

Declaration 3

Acknowledgement 4

Summary 6

1. Introduction 8

2. Objectives 21

3. Research Methodology 22

4. Literature Review 30

5. Finding and Data Analysis 53

6. Recommendation  59

7. Conclusion 61

8. Limitation 63

9. Bibliography 64

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 SUMMARY

Organizational change practice and research aims at the improvement and development
of organizations for the purpose of enhancing effectiveness and responsiveness to
external changes through better people management, competence, communications,
systems and structures. It is not a discipline that has more practical relevance in one
sector than in another: the methods and approaches of the discipline are being applied in
business and government alike.

Because of increasingly dynamic environments, organizations are continually confronted

with the need to implement changes in strategy, structure, process, and culture. Many
factors contribute to the effectiveness with which such organizational changes are
implemented. Whether the change processes are essentially unplanned and discontinuous,
planned and strategic, or incremental or revolutionary, they have profound implications
for people management and development. Change of any sort evokes the need for
innovation, creativity, learning and culture change, all of which lie legitimately within the
sphere of interest of personnel and development.

Professionals working in personnel and development can be central actors in the

management of change in such matters as people resourcing, learning and development,
reward structures and the development of new sorts of employee relations all in a
strategic context. Personnel and development professionals at a senior level need to
demonstrate the contribution they can make in helping people in the organization to:

• Recognize and interpret the relationship between organizational vision, capability

and the internal and external environments

• Mobilize processes that enable change processes at the appropriate level for the
requirements of the organization.

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There are seven aspects of change readiness according to researches, which include
perception toward change efforts, vision for change, mutual trust and respect, change
initiatives, management support, acceptance, and how the organization manage the
change process. At its core, change readiness involves a transformation of individual
cognitions across a set of employees. It is the people who are the real source of, and the
vehicle for, change because they are the ones who will either embrace or resist change
Therefore, it is vital to assess individual’s readiness perception prior to any change
attempt.

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 1. INTRODUCTION

Definition and importance of Planning change in employees:

Planning is nothing but using the available assets for the effective implementation of the
production plans. After the preparing the plans, people are grouped together to achieve
organizational objectives. Planning is concerned with coordinating, motivating and
controlling of the various activities within the organization. Time required for acquiring
the material, capital and machinery should be taken into account. Manager has to
reasonably predict future events and plan out the production. The basic purpose of the
management is to increase the production, so that the profit margin can be increased.
Manager has to guess the future business and to take timely and correct decisions in
respect of company objectives, policies and cost performances. The plans need to be
supported by all the members of the organization. Planning is making a decision in
advance what is to be done. It is the willpower of course of action to achieve the desired
results. It is a kind of future picture where events are sketched. It can be defined as a
mental process requiring the use of intellectual faculty, imagination, foresight and sound
judgment. It involves problem solving and decision making. Management has to prepare
for short term strategy and measure the achievements, while the long term plans are
prepared to develop the better and new products, services, expansion to keep the interest
of the owners.

Definition and importance of Planning:

Planning is nothing but using the available assets for the effective implementation of the
production plans. After the preparing the plans, people are grouped together to achieve
organizational objectives. Planning is concerned with coordinating, motivating and
controlling of the various activities within the organization. Time required for acquiring
the material, capital and machinery should be taken into account. Manager has to
reasonably predict future events and plan out the production. The basic purpose of the

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management is to increase the production, so that the profit margin can be increased.
Manager has to guess the future business and to take timely and correct decisions in
respect of company objectives, policies and cost performances. The plans need to be
supported by all the members of the organization. Planning is making a decision in
advance what is to be done. It is the willpower of course of action to achieve the desired
results. It is a kind of future picture where events are sketched. It can be defined as a
mental process requiring the use of intellectual faculty, imagination, foresight and sound
judgment. It involves problem solving and decision making. Management has to prepare
for short term strategy and measure the achievements, while the long term plans are
prepared to develop the better and new products, services, expansion to keep the interest
of the owners.

Background of planning for change in people:

In the early 1970s many companies were planning significant expansion. During this
period such companies were quick to realize that the key to success was an adequate
supply of appropriately skilled people. This led to the emergence of human resource
planning as a personnel management tool. Planning change is the process of ensuring that
the correct number of human resources is available at the right time at the right place.
Companies attempt to forecast their human resource requirements for the medium to long
term. Much effort was devoted to developing tools and techniques to assist managers
with their planning. Many of these were based on the theory of stochastic processes and
more specifically the concept of Markov chains. In large organizations the flow of
individuals between the various ranks is a task which requires careful and detailed
monitoring. Over a number of years patterns of behaviour may emerge and in many cases
the role of planning change is to build a picture of such resource flows. In a stable
environment where the features and characteristics of product and labour markets are
expected to evolve in a predictable and orderly fashion, a model of long-term patterns of
employment within the organisation would emerge. This would show the expected
number of retirements, the expected turnover of staff, within departments and the average
number of staff which leave for involuntary reasons. This can give a broad and rather

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basic picture of staff turnover. Hence it can also be used to provide valuable information
on timings and rates for replenishing staff.

Steps in planning change:

 Predict manpower plans

 Design job description and the job requirements

 Find adequate sources of recruitment.

 Give boost to youngsters by appointment to higher posts.

 Best motivation for internal promotion.

 Look after the expected losses due to retirement, transfer and other issues. \

 See for replacement due to accident, death, dismissals and promotion.

Factors which affect the efficiency of labor:

 Inheritance: Persons from good collection are bound to work professionally. The
quality and rate of physical as well as mental development, which is dissimilar in
case of different individuals is the result of genetic differences.
 Climate: Climatic location has a definite effect on the efficiency of the workers.

 Health of worker: worker’s physical condition plays a very important part in

performing the work. Good health means the sound mind, in the sound body.

 General and technical education: education provides a definite impact n the

working ability and efficiency of the worker.

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  Personal qualities: persons with dissimilar personal qualities bound to have
definite differences in their behaviour and methods of working. The personal
qualities influence the quality of work.

 Wages: proper wages guarantees certain reasons in standard of living, such as

cheerfulness, discipline etc. and keep workers satisfy. This provides incentive to
work.

 Hours of work: long and tiring hours of work exercise have bad effect on the
competence of the workers.

Downsizing of manpower:

Downsizing of manpower gives the correct picture about the number of people to be
employed to complete given task in the predetermined period. It is used for achieving
fundamental growth in the concern. It can work out the correct price by the resource
building or capacity building. It aims at correct place, correct man on a correct job. Thus
planning change is must to make the optimum utilization of the greatest resource
available i.e. manpower for the success of any organization.

Objectives and Nature of Change Management:

Manpower and HR planning’s involves applying the basic planning process to the human
resource needs of the organization. To be effective any MP/ HR plan must be derived
from the CORPORATE strategic plan of the organization. The success of the MR/HR
depends largely on how closely the HR department can integrate effective people
planning with the organization's business planning process. Corporate business planning
seeks to identify various factors critical to the success of the organization. It also focuses
on how the organization can become better positioned and equipped to compete in the
market. This provides

 A clear statement of the organization's mission.

 A commitment from senior management to the mission.

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  An explicit statement of assumptions.

 A statement of objectives / strategies.

 A plan of action in light of available or acquirable resources, including human

resources.

MP/HR planning contributes significantly to the corporate business process by providing

the means to accomplish the outcomes desired from the planning process. In essence
the HR demands and needs are derived from the corporate strategic business plan and
then compared with HR availability.

Planning Change System:

Once the corporate objectives, strategies and plans are outlined, the directions are filtered
down to the business units and departments, involving all levels of management in the
organizational planning process. The business unit’s management and departments
management work closely with the HR management to determine the people
requirements to achieve their objectives.

Planning change has five essential elements:

 Analyzing the current manpower resource

 Reviewing employee utilization
 Forecasting the demand for employees
 Forecasting supply
 Developing a manpower plan

This is what makes planning change a dynamic process. For instance, a manufacturing
function might want to introduce new machinery that will do a job to a better standard
and more quickly. To justify the expenditure, the manufacturing manager will be
expected to show a saving on labour, which may translate into fewer people. In another

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case, a downturn in business may provoke an urgent drive to reduce overheads and cuts
in office staff. The point is that manpower decisions have been triggered outside the
HRM function, and most certainly outside the hands of anyone who carries the title of
manpower planner. The other point that the two examples highlight is that planning can
have a short, medium-, and long-term aspect. The long term is necessary to provide a
framework for managing broad trends. Long-term planning should be done regularly and
systematically, and plans kept under review. The short to medium term, however, is what
matters to most managers.

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Planning change-need and importance:

There is no denying the fact that the continual positive development of a business is
owing to its effective planning. Making preparations and arrangements on the basis of
what is expected to happen and performing tasks in an organized and capable way is one
of the important roles of management in that it involves effective planning process. It is
through the process of planning as well as designing the organizational structure by
assigning an assortment of responsibilities to the employees that business organizations
may accomplish their set objectives. The concept that the right person should be
employed at the right place and at the right time is vitally important to a business as it
includes a wide and comprehensive range of activities in relation to “the management of
man” while it entails man power planning, at the same time, being focused on the
effective utilization of existing human element as well as fulfilling future needs of
manpower in the organizations whenever the situations necessitate. Man power planning
is “the process of determining manpower requirements and the means for meeting those
requirements in order to carry out the integrated plan of the organization.” Man power
planning is indispensable for an organization to perform the activities efficiently as well
as in a way that produces desired results.

It should be apparent that the organizational development as well as the success of the
business is on account of highly competent people that a business organization keeps.
Man power planning is one of the key functions of human resource management that
manages to maintain the good will of a business while giving duly importance to the ‘M’
(for Men or human element) than that no other ‘M’ (Machine, Material or Money) is
more valuable. It endeavors to the organizational development in totality as well as the
success of the business respecting the skills of the employees, their knowledge,
experience and talents. It is concerned with effective recruitment and selection process in
order that the skilled workers may be made available each and every time that a business
requires. Planning change is of great significance for various reasons necessitating the
process, at the same time, contributing significantly to the achievement of organizational
objectives.

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Many factors will continue to drive man power planning need in the organizations. It is
essential when turnover of labor is to be determined and the situations become inevitable.
There are times when the situations give rise to replace the employees who have grown
old, who are forced to remain in bed because of illness, weakness, injury, mental
disorders or a medical condition involving disturbance to usual functioning of the mind
or body. While executing effectively, man power planning process entails analyzing the
requirement of present and future vacancies. These situations take place when some
employees get retirements, when they are transferred or they are promoted to higher
positions. Similarly, it deals with the situations that arise at the time that employees avail
their leaves or in case of their absences. In order that the tasks being assigned may be
carried out in a way as has been planned or intended, business organizations need
personnel possessing necessary qualifications and experience and that is, to all intents
and purposes, accomplished through man power planning. In its positive form, it is of
great importance to identify the surplus as well as the shortage of the employees so as to
move the man power from one area or activity to another in case of the former, whereas
latter indicates providing required personnel.

Some of the important tasks concerning the process of planning change are man power
demand, supply and manpower audit. It involves analyzing total man power requirement
and planning accordingly. Subsequently, there is a need of man power supply which is
done in both ways, internally and externally. It is needed internally when the employees
are transferred or promoted, while the need of external supply arises from the
requirement of new workers when a business goes for expansion or changing technology
or adopts new methods of production. In addition, the process entails man power audit
which is carried out through “Skills inventory”. It encompasses detailed information
about each employee. It is through this activity that the overall value of an employee to
the organization is determined while it involves analyzing the factors such as, which type
of workers, need to be hired; whether the remuneration is as good as or slightly better or
lesser than others. Adding emphasis on sustaining the skilled workers, man power audit
also analyses the factors that interest the employees to leave the current jobs and move

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elsewhere in order that the necessary measures may be taken leading to the maximum
utilization of human resources.

Planning change is vital to be in employees’ best interests as well as organizations’. In

addition to undertake proper recruitment methods while implementing appropriate
selection procedures for the right candidates and preserving the talents of the employees,
it focuses on the requirement and the arrangement of training and development programs
for the employees who need so as to equip them with their jobs’ requisites and activities.
It is focused on the promotion procedures for those who are skilled and can take
challenge of doing more advanced tasks than that are being performed currently. It is by
means of planning change process that the inefficiencies of the employees are observed
that necessary training may be provided, while it maintains morale of the employees. The
process of planning change produces such results that improve productivity; the
employees may become more efficient and their performance may be more effective. In
this way, they can contribute greatly to the total organizational development and the
success of a business that depends upon quantity and quality of human resources.

Planning change: Important Steps to be done

When we discussed about Planning change, the first time must be understood that the
process is conducted to support of operations or production processes associated with
labor. The most fundamental in this process is the goal to be achieved by the organization
within one year ahead, such as: increasing production, efficiency, increase profits, or
increase the market. After that HR Division just adjusting to manpower needed so that
organizational goals can be achieved.

Planning change is not the process that can be done only within the Human Resources
Division. Communication is very intensive, should be made to other parties, such as the
Division of Operations / Production, Finance, and other divisions are also directly related.

Planning change process requires information such as:

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  Employee Master Data: information workers, with the full criteria (number,
gender, age group, service year, demographic / location)
 Organization / Position Management: information on existing organizational
structures with rank and position information. The important thing is the person
who responsible for the position / job.
 Competency / Skill Management: information skills or even the ability of people
working in the position or office.
 Budget: The financial ability of the organization that had been planned earlier to
the needs of the workforce.

From the information above then we can get a complete picture about the current state of
our organization. After that we can translate the new achievements that we will do for the
next one year.

One process that is usually done in this process is "Profile Matching", in the form of
process simulation to see the organizations needs of manpower availability. 
Some steps that eventually we produce after Planning change process are:

 Describes the need for organizational structure and manpower completely.

 Placing the right employees in the organization. Step into the future can be a
process: Recruitment, Career & Succession Planning, or even People
Development.
 Prepare the necessary budget.

All this process will be very easy and possible if the organization has a comprehensive
HR system and integrated.

Planning change – the key to value

In a practice, people are the engine room and without them nothing happens, no profit, no
value. As a consequence, HR strategy needs to be at the centre of the total business
planning process. The current value of a practice and its ability to be profitable will be
based on how successful it has been in managing the ‘people element’ of its practice in

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the past. Developing and refining an integrated HR strategy can significantly improve
future profitability.

In overall terms the HR strategy needs to be flexible and able to deal with issues affecting
the short term (next 12 months), the medium term (2-3 years), the longer term (4+ years).

In the short term, the key issues will be to resource the immediate workflow and balance
the work demands against the resources available.

In times of economic slow down, firms will find that resignations drop and this will need
to be factored in to the forward plan. In the worst-case scenario, firms will have difficult
decisions to make about potential redundancies.

In the medium term, the business plan and manpower plan will need to identify projected
workflows and manpower needs. The underlying assumptions should be written down as
this will help future evaluation of changes and facilitate an accurate review of
requirements.

Long-term issues will involve the future strategic direction of the business, its ownership
and structure. Whatever the objectives, a sound HR strategy will assist in achieving them.

The HR strategy should be dynamic and iterative and capable of adjustment as actual
events unfold. Crucial to any strategy is knowing where the process started and where it
is headed.

Identifying the requirements

At the centre of the HR strategy is the manpower plan. This document should draw on
past experience and staff utilization and also the business plan and objectives for the
future. It may be useful to develop the plan in four dimensions:

1. Current clients - projected recurring work;

2. Current clients - projected non-recurring work;
3. Business development - targeted recurring work;

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 4. Business development - targeted non-recurring work.

The process should be broken down in sufficient detail to enable a specific comparison to
be made against the manpower plan as time progresses, thus enabling the firm to revise
and remodel the plan based on the actual outturn of events.

For current client work, there should be an individual manpower plan broken down as
follows:

 By work type;
 By grade level;
 By timing;
 By hours

The value of the hours should be automatically linked to the financial plan and capable of
being modelled. Specific staff/partners should be allocated against the plan and after the
first comparison the overall surplus or deficit and the impact of timing differences
assessed. The process then moves to the planning stage in an attempt to balance resources
against needs. Crucial gaps or surpluses in skills and resources can be identified early and
action plans implemented to provide a solution.

Impact of technology:

In the current climate of dramatic changes in IT, the impact of new technology on the
business plan and the manpower plan is critical. The rationale for introducing a particular
system may be to reduce manpower levels and improve efficiency. This needs to be
factored in. In a business that relies on revenue generated through hours charged by
professional staff, the impact and benefits of technology need to be carefully evaluated to
ensure that the benefit accrues to the firm and that revenue is not lost. It is likely that the
skills required by staff may need to be upgraded. The training and familiarization time
will need to be factored in to the manpower plan. They may require additional resources
to manage the IT support. Whatever the scenario, a major change to IT or the
introduction of any major new systems will have a dramatic impact on the manpower
plan

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Staff planning and succession planning:

As a parallel exercise, individual staff plans for each member of chargeable staff
should be prepared anticipating known events e.g. study leave, holidays,
retirements. Promotions and grade changes should also be factored in to create a
forward staff profile. It is very difficult to factor in to the forward staff profile
potential leavers from the practice. Some firms prepare the plan without
incorporating this data, knowing that their profile is the optimum and any
unforeseen leavers will have an immediate impact on the manpower plan. In some
cases, firms may wish to plan actively for people reaching a certain grade as a
maximum. Firms should also be actively planning to improve the quality mix of staff
by keeping an ‘open door’ policy on recruitment in line with their strategic objectives.
The potential costs of recruitment need to be factored into the financial budgets.

For this reason, you should never ‘turn off’ the supply of potential recruits. You should
maintain a dialogue with recruitment consultancies on a regular basis. All that should
change is the specification of the type of person you would be prepared to recruit.

When the staff profile plan is compared to the manpower plan this will identify a number
of issues including:

 Wrong mix of staff;

 Seasonal peaks and troughs;
 Wrong skill sets for short, medium or longer-term needs of the practice;
 Future gaps at certain grades, particularly partner level.

All of these could have a damaging impact on the profitability and value of your practice
and your HR strategies should be designed to minimize the operational impact and
smooth their financial impact.

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Manpower models:

Manpower models can belong to a variety of categories. Traditionally manpower models

were thought as mathematical representations of the relationships of a manpower system.
The representations are normally in the form of mathematical equations, which they
express the manpower process. Manpower systems are normally considered as complex
systems in which their counterparts interact with each other in order to accomplish the
desired outcome. Rectangles represent “stocks” and arrows represent movements
between the various entities of the system and they are known as “flows”. “Stocks”
accumulates data of the same type and “flows” are pipelines of data that belong to the
same type. In practice, manpower systems are considerably more complicated than the
one shown. A more realistic model is shown, which represents an organization’s
management structure. Subsystems also can and need to be identified so it becomes
necessary to distinguish between the system by age, length of service or by department
and section. The result is what managers are faced with, an extremely complex dynamic
system of interrelationships. Even if the flows are stable, which they never are, the people
themselves are continuously changing and as a result changing the jobs as well. Due to
the complexity of such systems managers need assistance to understand them first and
then manage them.

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 2. RESEARCH OBJECTIVES

 To identify the concept of planning change in employees

 To examine the process of planning change in employees

 To study the steps of planning change in employees

 To identify the challenges included with the planning change in employees

 To identify the key success factors in planning change in employees

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 3. RESEARCH METHODOLOGY

Research Methodology:

Research is defined as human activity based on intellectual application in the

investigation of matter. The primary purpose for applied research is discovering,
interpreting, and the development of methods and systems for the advancement of human
knowledge on a wide variety of scientific matters of our world and the universe. Research
can use the scientific method, but need not do so.

Scientific research relies on the application of the scientific method, a harnessing of

curiosity. This research provides scientific information and theories for the explanation of
the nature and the properties of the world around us. It makes practical applications
possible. Scientific research is funded by public authorities, by charitable organizations
and by private groups, including many companies. Scientific research can be subdivided
into different classifications according to their academic and application disciplines.

Historical research is embodied in the historical method.

The term research is also used to describe an entire collection of information about a
particular subject.

Secondary data are easily accessible, relatively inexpensive, and quickly obtained. Some
secondary data are available on topics where it would not be feasible for a firm to collect
primary data. Although it is rare for secondary data to provide all the answers to a non-
routine research problem, such data can be useful in a variety of ways. Primary data is
collected for the specific purpose of addressing the problem at hand. The collection of
primary data involves various steps. Thus obtaining primary data can be expensive and
time consuming. These suggest that primary data are those data that are collected for the

23
particular purpose of research in hand. The disadvantage of collecting primary data is that
it is lengthy and resource and time consuming process, but the advantage of primary data
is that they are first hand information and comparatively more reliable. A researcher
originates primary data for the specific purpose of addressing the problem at hand. The
collection of primary data involves all six steps of the marketing research process.
Obtaining primary data can be expensive and time consuming.  

The selection of the particular research approach depends on the kind of information
required. Qualitative research collects, analyzes, and interprets data that cannot be
meaningfully quantified, that is, summarized in the form of numbers. For this reason,
qualitative research is sometimes referred to as soft research. “Quantitative Research”
calls for very specific data, capable of suggesting a final course of action. A primary role
of quantitative research is to test hunches or hypotheses. These suggest that qualitative
approach is a soft research approach in which collected data cannot be meaningfully
quantified and more importantly in this approach non-structured research is conducted.
But so far as quantitative research approach is concerned, through this approach
structured research is conducted with approaching larger respondents and the collected
data can be meaningfully quantified. Research data can be collected either in the form of
secondary or primary or both. Secondary Data usually factual information can be
obtained through secondary data that has already been collected from other sources and is
readily available from those sources. The definition and characteristics of secondary data
presented above suggest us that secondary data are data that have already been collected
for purpose other than the problem in hand. Before detailing as how and what secondary
data were collected in this research, in would be worth to examine the advantages and
disadvantages of such data.

Historical:

The historical method comprises the techniques and guidelines by which historians use
historical sources and other evidence to research and then to write history. There are
various history guidelines commonly used by historians in their work, under the headings

24
of external criticism, internal criticism, and synthesis. This includes higher criticism and
textual criticism. Though items may vary depending on the subject matter and researcher,
the following concepts are usually part of most formal historical research:

 Identification of origin date

 Evidence of localization
 Recognition of authorship
 Analysis of data
 Identification of integrity
 Attribution of credibility

Research Funding:

Most funding for scientific research comes from two major sources, corporations
(through research and development departments) and government (primarily through
universities and in some cases through military contractors). Many senior researchers
(such as group leaders) spend more than a trivial amount of their time applying for grants
for research funds. These grants are necessary not only for researchers to carry out their
research, but also as a source of merit.

Some faculty positions require that the holder has received grants from certain
institutions, such as the US National Institutes of Health (NIH). Government-sponsored
grants (e.g. from the NIH, the National Health Service in Britain or any of the European
research councils) generally have a high status.

The goal of the research process is to produce new knowledge, which takes three main
forms (although, as previously discussed, the boundaries between them may be fuzzy):

 Exploratory research, which structures and identifies new problems

 Constructive research, which develops solutions to a problem
 Empirical research, which tests the feasibility of a solution using empirical
evidence

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Research is often conducted using the hourglass model Structure of Research. The
hourglass model starts with a broad spectrum for research, focusing in on the required
information through the methodology of the project (like the neck of the hourglass), then
expands the research in the form of discussion and results.

Research in common parlance refers to a search for knowledge. Once can also
define research as a scientific and systematic search for pertinent information on a
specific topic. In fact research is an art of scientific investigation. The Advanced
Learner’s Dictionary of Current English lays down the meaning of research as “a
careful investigation or inquiry especially through search for new facts in any
branch of knowledge,” Rcdman and Mory define research as a “systematized effort to
gain new knowledge.”2 Some people consider research as a movement, a movement from
the known to the unknown; It is actually a voyage of discovery. We all possess the vital
instinct of inquisitiveness for, when the unknown confronts us, we wonder and our
inquisitiveness makes us probe and attain full and fuller understanding of the
inquisitiveness is the mother of aN knowledge and the method, which man employs for
obtaining the knowledge of whatever the unknown, can be termed as research. Research
is an academic activity and as such the term should be used in a technical sense.
According to Clifford Woody research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organising and evaluating data;
making deductions and reaching conclusions; and at last carefully testing the conclusions
to determine whether they fit the formulating hypothesis. D. Slesinger and M. Stephenson
in the Encyclopedia of Social Sciences define research as ‘he manipulation of things,
concepts or symbols for the purpose of generalizing to extend, correct or verify
knowledge, whether that knowledge aids in construction of theory or in the practice of an
art.”3 Research is, thus, an original contribution to the existing stock of knowledge
making for its advancement. It is the pursuit of truth with the help of study, observation,
comparison and experiment. In short, the search for knowledge through objective and
systematic method of finding solution to a problem is research. The systematic approach
concerning generalization and the formulation of a theory is also research. As such the
term ‘research’ refers to the systematic method consisting of enunciating the problem,

26
formulating a hypothesis, collecting the facts or data, analyzing the facts and reaching
certain conclusions either in the form of solutions(s) towards the concerned problem or in
certain generalizations for some theoretical formulation.

Motivation in Research:
What makes people to undertake research? This is a question of fundamental importance.
The possible motives for doing research may be either one or more of the following:

 Desire to get a research degree along with us consequential benefits;

 Desire to face the challenge in solving the unsolved problems, i.e., concern over
practical problems initiates research;
 Desire to get intellectual joy of doing some creative work;
 Desire to be of service to society;
 Desire to get respectability.

However, this is not an exhaustive list of factors motivating people to undertake research
studies, Many more factors such as directives of government, employment conditions,
curiosity about new things, desire to understand causal relationships, social thinking and
awakening, and the like may as well motivate (or at times compel) people to perform
research operations.

Research Approaches:
The above description of the types of research brings o Light the fact that there arc two
basic approaches to research, viz,, quantitative approach and the qualitative approach.
The former involves the generation of data in quantitative form which can be subjected to
rigorous quantitative analysis in a formal and rigid fashion, This approach can be further
sub classified into inferential, experimental and simulation approaches to research. The
purpose of inferential approach to research is to form a data base from which to infer
characteristics or relationships of population. This usually means survey research where a
sample of population is studied (questioned or observed) to determine its characteristics,

27
and ii is then inferred that the population has the same characteristics. Experimental
approach is characterized by much greater control over the research environment and in
this case some are manipulated to observe their effect on other variables. Simulation
approach involves the construction of an artificial environment within which relevant
information and data can be generated. This permits an observation of the dynamic
behaviour of a system under controlled conditions, The term ‘simulation’ in the
context of business and social sciences applications refers to operation of a
numerical model that represents the structure of a dynamic process. Given the
values of initial conditions, parameters and exogenous variables, a simulation is run to
represent the behaviour of the process over simulation approach can also be useful in
building models for understanding future conditions.
Qualitative approach to research is concerned with subjective assessment of attitudes,
opinions and behaviour, Research n such a situation is a function of researcher’s insights
and impressions. Such an approach to research generates results either in non quantitative
form or in the form which are not subjected to rigorous quantitative analysis. Generally,
the techniques of focus group interviews, projective techniques and depth interviews are
used. This entire arc explained at length in chapters that follow.

Significance of Research:
“All progress is born of inquiry. Doubt is often better than overconfidence, far it leads to
inquiry, and inquiry leads to invention” is a famous Hudson Maxim in context of which
the significance of research can well be understood. Increased amounts of research make
progress possible. Research inculcates scientific and inductive thinking and it promotes
the development of logical habits of thinking and organization. The role of research in
several fields of applied economics, whether related to business or to the economy as a
whole, has greatly increased in modem times. The increasingly complex nature of
business and government has focused attention on the use of research in solving
operational problems. Research, as an aid to economic policy, has gained added
importance, both for government and business. Research provides the basis for nearly all
government policies in our economic system. For instance, government’s budgets rest in
pan on an analysis of the needs and desires of the people and on the availability of

28
revenues to meet these needs. The cost of needs has to be equated to probable revenues
and this is a field where research is most needed. Through research we can devise
alternative policies and can as well examine the consequences of each of these
alternatives.

Decision-making may not be a part of research, but research certainly facilitates the
decisions of the policy maker. Government has also to chalk out programmes for dealing
with all facets of the country’s existence and most of these will be related directly or
indirectly to economic conditions, The plight of cultivators, the problems of big and
small business and industry, working conditions, trade union activities, the problems of
distribution, even the size and nature of defence services are matters requiring research.
Thus, research is considered necessary with regard to the allocation of nation’s resources.
Another area in government, where research is necessary, is collecting information on the
economic and social structure. Such information indicates what is happening in the
economy and what changes arc taking place. Collecting such statistical information is by
no means a task, but it involves a variety of research problems, These day nearly all
governments maintain large staff of research technicians or experts to carry on this work,
Thus, in the context of government, research as a tool to economic policy has three
distinct phases of operation, viz., (i) investigation of economic structure through
continual compilation of facts; (ii) diagnosis of events that arc taking place and the
analysis of the forces underlying them; and (iii) the prognosis, i.e., the prediction of
future developments.
Research has its special significance in solving various operational and planning
problems of business and industry. Operations research and market research, along with
motivational research, are considered crucial and their results assist, in more than one
way, in taking business decisions. Market research is the investigation of the structure
and development of a market for the purpose of formulating efficient policies for
purchasing, production and sales. Operations research refers to the application of
mathematical, logical and analytical techniques to the solution of business problems of
cost minimization or of profit or what can be termed as optimization problems.
Motivational research of determining why people behave as they do is mainly concerned

29
with market characteristics. In other words, it is concerned with the determination of
motivations underlying the consumer (market) behaviour; All these are of great help to
people in business and industry who are responsible for taking business decisions.
Research with regard to demand and market factors has great utility in business. Given
knowledge of future demand, it is generally not difficult for a firm, or for an industry to
adjust its supply schedule within the limits of its projected capacity. Market analysis has
become an integral tool of business policy these days. Business budgeting, which
ultimately results in a projected profit and loss account is based mainly on sales estimates
which in turn depends on business research. Once sales forecasting is done, efficient
production and investment programmes can be set up around which arc grouped the
purchasing and financing plans. Research, thus, replaces intuitive business decisions by
more logical and scientific decisions.

Research is equally important for social scientists in studying social relationships

and in seeking answers to various social problems. It provides the intellectual
satisfaction of knowing a few things just for the sake of knowledge and also has
practical utility for the social scientist to know for the sake of being able to do
something better or in a more efficient manner. Research in social sciences is
concerned both with knowledge for its own sake and with knowledge for what it can
contribute to practical concerns double emphasis is perhaps especially appropriate in the
case of social science. On the one hand, its responsibility as a science is to develop a
body of principles that make possible the understanding and prediction of the whole
range of human interactions, On the other hand, because of its social orientation, it is
increasingly being looked to for practical guidance in solving immediate problems of
human relations.’

30
 4. LITERATURE REVIEW

Need for Change:

Over the past decade, the chemical industry has been increasingly commoditized. Cost
pressures have been abundant and the ability to succeed has become dependent upon
highly efficient internal processes and better customer service. To better compete in this
environment, one Omega chemical determined they needed to re-engineer their global
ordering processes and the systems that support them. Their aim was to create the perfect
order process The perfect order process would yield the following benefits:

 Increase customer loyalty by creating easy, flexible and reliable interactions with
the company.

 Provide the competitive edge of a Six Sigma capable order management process.

 Eliminate the cost of rework.

 Maximize employee productivity and satisfaction by providing the right data and
the right tools. The technology was available.

The perfect order would assure that it is integrated to work more smoothly.
This process had many components to it:
 An integrated desktop that would provide customers with the information they
need in the shortest possible time.

 Technical service representatives armed with knowledge of many topics and

access to many types of information - everything from product specifications to
product data sheets and regulatory information.

31
  Easy access to all the information sales representatives need to more quickly
address customer goals and needs.

 A cross-business view of an account, to help them leverage relationships. A portal

to the many people who contribute to serving the account, such as marketing,
customer service representatives, to allow them to more easily share information.

 Customer service representatives empowered with all the information they need
about a customer or an account from one starting point. Data from SAP, Siebel or
other sources would be only a click away.

In addition to speeding service to customers, the processes and systems would improve
personal productivity of employees as a result of reduced systems look-up, seamless
movement across multiple business systems and a consistent interface across multiple
communication channels.

Integrating customer segmentation and customer service rules facilitates on-the-spot

decisions by front-line employees. Training time could also be reduced as a result of an
intuitive customer interface and simplified screen navigation. Thus Organisational change
was inevitable.

Key components for organizational change for Omega Chemicals:

 Communication channel control intelligently routes and manages

inbound/outbound voice, fax and e-mail communications

 Fast access to enterprise applications such as SAP, Siebel, Rail

 Fleet Management System

 Access to Intranet/Internet and other internal databases

 Customer Account and Contact Profiles in Siebel

32
  Activity assignment with sales, technical support and Customer Information
Group

 Customer surveys

 Reporting

DESCRIPTION OF THE PROCESS:

Brief Assessment:

Establishing a Sense of Urgency

• Examining market and competitive realities
• Identifying and discussing crises, potential crises, or major opportunities

Forming a Powerful Guiding Coalition

• Assembling a group with enough power to lead the change effort
• Encouraging the group to work together as a team

Creating a Vision
• Creating a vision to help direct the change effort
• Developing strategies for achieving that vision

Communicating the Vision

• Using every vehicle possible to communicate the new vision and strategies
• Teaching new behaviors by the example of the guiding coalition

Empowering Others to Act on the Vision

• Getting rid of obstacles to change
• Changing systems or structures that seriously undermine the vision
• Encouraging risk taking and nontraditional ideas, activities and actions

Planning for and Creating Short-Term Wins

• Planning for visible performance improvements
• Creating those improvements
• Recognizing and rewarding employees involved in the improvements

Consolidating Improvements and Producing Still More Change

33
• Using increased credibility to change systems, structures, and policies that
don’t fit the vision
• Hiring, promoting, and development employees who can implement the vision
• Reinvigorating the process with new projects, themes, and change agents

Institutionalizing New Approaches

• Articulating the connections between the new behaviors and corporate
success
• Developing the means to ensure leadership development and succession

Our analysis finds out that there are specifically the seven aspects of an organization
readiness for change. Organisation Change Process should analyse all these aspects
strategically:

1. PERCEPTION TOWARD CHANGE EFFORTS

Employees’ perception toward change efforts that take place within the company Omega
is an important aspect of change readiness. Moreover, employees’ perceptions of the
organization’s readiness for change have been identified as one important factor in
understanding sources of resistance to large-scale change (Eby, et al., 2000). These
perceptions can facilitate or undermine the effectiveness of a change intervention
(Armenakis, et al., 1993; Lewin, 1951). Employees as the target of change are central to
the success of the change efforts because their attitudes, skills, motivations and basic
knowledge form a significant component of the organizational environment in which
change is to be attempted (Smith, 2005).

Perception influences employees’ attitudes and behavior intention in facing the

impending change. Past experiences, on the other hand, influence perception process in
interpreting information that pass through individual cognitive process. Employees’
perceptions toward the success of previous change efforts also influence change
readiness. Information related to change will be associated with the individual’s past
experiences by giving particular attribute toward the initiated change. Individuals have
preconceived notions about the extent to which the organization is ready for change.
These perceptions are likely to evolve over time as individuals develop a history within

34
the organization (Eby, et al., 2000). McDonald and Siegal (1993), Iacovini (1993), and
McManus, et al. (1995) suggested that employee’s attitudes toward a pending change can
impact morale, productivity and turnover intentions (Eby, et al., 2000).
Moreover, employees’ perception toward company’s flexibility in facing change is also
crucial. Employees’ perceptions of the organization’s ability to accommodate changing
situations by altering policies and procedures was strongly related to perceived readiness
for change (Eby, et al., 2000). Employee’s perceptions of the degree to which their
organization has the flexibility to achieve change, and the extent to which they can
actively and genuinely participate in the process, are important factors in achieving
successful change (Smith, 2005). Thus first step that Omega Chemicals need to take is to
analyse and let their employees know the need for the organizational change to the
company and their betterment by the organizational change strategies. Management need
to let them know that overall benefit of this change management or organizational change
will lead to organizational betterment and in turn their growth and betterment.

Here Omega Chemicals needs to be very careful as it has been observed in past that
employees believe that if there are organizational changes these would not benefit them,
else these would be designed to get more work from them or to reduce their numbers in
terms of employees size and strength. Thus Management need to draft these strategy very
tactically that they can influence the employees and there betterment with these changes.

2. VISION FOR CHANGE

A vision states and clarifies the direction in which an organization needs to move.
Without a sensible vision, a transformation effort can easily dissolve into a list of
confusion and incompatible project and can take the organization in the wrong direction
or nowhere at all (Kotter, 1995). Therefore, employees’ understanding and
comprehension toward company’s vision and change’s vision is very vital. Kotter (1995)
also suggested the importance of creating a vision of what the change is about, tell people
why the change is needed and how it will be achieved (Smith, 2005). Martin (1993) as
well as Terry (2001) pointed out that a vision is an important part of a change process but

35
leaders of organizations need to be aware that a vision should only give a direction to
employees (Stadtlander, 2006).

People within an organization have to have the same aspiration toward the imminent
change. Strebel (1996) noticed that many change efforts fail because executives and
employees see change differently. For example, for many leaders, change means
opportunity – both for the business and for themselves. But for many employees,
change is seen as disruptive and intrusive (Stadtlander, 2006). Through active,
ongoing and meaningful involvement in the change process people can be helped
to see the connections between their personal work and attitudes and overall
organizational performance and employees can be encouraged to embrace personal
responsibility for achieving change (Smith, 2005). Personal valence, which
clarifies the intrinsic and extrinsic benefits of the changes, can help develop
momentum for change. Specifically, when employees see how the change will
benefit them, they will begin to seek out ways to improve the transition (Bernerth,
2004).

However Management Team must have answers for the query or questions raised by the
employees. Therefore they should analyse under mentioned points with respect to Omega
Chemicals:

Operational indicators
Practitioners must be able to:

1 Identify the influence of the political, social and economic environment on the
organisation and change as a reactive or proactive response.

2 Undertake diagnosis of the influence of such events and processes as mergers,

acquisitions, strategic alliances, downsizing, delayering.

Knowledge indicators

36
Practitioners must be able to understand, explain and critically evaluate:

1 The implications of globalisation, mergers, take-overs, acquisitions and strategic

alliances in the development of organisations as dynamics in the change and
transformation processes.
Indicative content
1 The emergence of the virtual and network organisation.

2 The influence of concepts such as best value and changing stakeholder requirements.

3 The identification of triggers for change within the organisation.

4 The relationship between change and innovation in organisations.

Change and transformation challenges:

accountability for different work & results

What’s in it for our

Corporate citizenship & Organisation organisation ?
competitive advantage
Good - Great

team
Strategic – operational What’s in it for my
execution & team ?
optimisation Independence –
Interdependence

Making it happen – me What’s in it for me ?

delivering agreed Survival -
results Significance

37
38
Change Process and Their Implications:

Operational indicators
Practitioners must be able to:

1 Identify the relevance of the major models of planned change and the different levels of
risk they carry, and relate them to different organisational situations.

2 Help to build those processes, routines and systems that ensure transfer of information
and understanding from individuals and small groups to the organisation as a whole, to
influence strategic decisions and produce the foundations for new capabilities.

3 Judge what will and will not work in the change management context and ensure that
the personnel and development role in the change management process is clearly adding
value by helping to drive organisational improvements.

4 Make informed choices between large- and small-scale approaches to change

management.

5 Assess the level of change required at different epochs in the organisation’s life cycle;
issues of style and speed of change.

6 Analyse the elements for successful change at each stage of the process.

Knowledge indicators
Practitioners must be able to understand, explain and critically evaluate:

1 Different levels and types of the strategic change process:

• from ‘light touch’ to radical, transactional to transformational, continuous to

discontinuous

• and the ways each level and type of change is likely to have different effects on people
and organisational performance.

39
2 The ways organisation members understand, identify and use different triggers of
change and transformation, both internal and external.

3 Processes for the evaluation of success, failure and risk in the change process,
recognising the implications of success or failure for future change processes in the
organisation.

4 Strategies and techniques for the successful implementation of the change -

management effort – project management, participation and process management.

Indicative content
1 The dynamics of change and:

• the strengths and limitations of Lewin’s fundamental change model

• the assumptions that underlie different approaches to change.

2 The strengths and weaknesses of the planned change approach.

3 The distinctions between emergent, planned and discontinuous approaches to change.

4 The role of the senior management group and the chief executive officer in the change
process.

5 The scope of managerial decision-making in relation to change, transition and

transformation.

6 Issues of ‘top down’ and ‘bottom-up’ change and reconciling them both.

7 Risk assessment/management in change and transformation situations.

8 Processes that mature, successful organisations can use most effectively in the change
processes.

9 The critical significance of diagnosis to identify the need for, and the processes of,
change, transition and transformation.

3. MUTUAL TRUST AND RESPECT

Individual and organizational readiness and capacity for change needs to be based on a
sound foundation of mutual trust and respect. It is important that a sufficient amount of
trust is established to allow staff members to openly express dissenting views and

40
compromise democratically. According to Cummings and Huse (1989), for change
efforts to be successful, employees must trust not only the management, but also their co-
workers (Eby, et al., 2000).
Mutual respect and trust are the important foundations for an effective work team.
Sundstrom, et al. (1990) revealed that organizations are increasingly implementing work
teams for many different reasons; to better meet customer needs, to increase innovation,
and to improve organizational productivity (Eby, et Al., 2000). He, and also Goodman, et
al. (1988) found evidence that work teams can enhance a variety of important
organizational outcomes under appropriate conditions. While Goodman, etal. (1988), as
well as Cohen and Bailey (1997) found outcomes associated with the use of work teams
include more favorable employee attitudes and other quality of work life indicators, as
well as enhanced productivity and overall organizational effectiveness (Eby, et al., 2000).

4. CHANGE INITIATIVE
Organizations are continually confronted with the need to implement changes in strategy,
structure, process, and culture (Armenakis, et al., 1993). This is because the world has
grown increasingly complex, resulting from the greater interdependence among world
economies. At the same time, the world has become increasingly dynamic, resulting from
the information explosion and worldwide communications (Zeffane, 1996). Without
undertaking change, organization will lose its ability to compete. Without introducing
adequate change in a timely and ethical manner, organizations will face difficult times
and significantly reduce their chances of long-term survival (Christian and Stadtlander,
2006).
Most successful change effort begin when some individuals or some groups start to look
at the company’s competitive situation, market position, technological trends, and
financial performance. They then try to communicate their findings, especially those that
are related to crisis, potential crisis, or great opportunity that may arise This first step is
essential because just getting a transformational started requires the cooperation of many
individuals (Kotter, 1995).

41
All members of the organization should have the privilege to propose or initiate
necessary change. But at the end it is the organization’s leader who has to decide or
initiate the necessary changes. Organization leaders become leaders because of their
planning skills and their abilities to envisage and communicate a better future (Zeffane,
1996). However, people in the organization must be given the opportunity to be involved
in all aspects of the change project and they must be given the opportunity to provide
feedback (Waddel and Sohal, 1998).
It is people who make up organizations and it is they who are the real source of, and
vehicle for, change. They are the ones who will either embrace or resist change. Actually,
people do not resist change per se, rather they resist the uncertainties and the potential
outcomes that change can cause (Waddel and Sohal, 1998). If Organizational change is to
take hold and succeed then organizations and the people who work in them must be
readied for such transformation (Smith, 2005).

5. MANAGEMENT SUPPORT

Management support for change efforts is an essential factor in creating change

readiness. Armenakis, et al. (1993) revealed that the degree to which organizational
policies and practices are supportive of change may also be important in understanding
how an employee perceives the organization’s readiness for change (Eby, et al., 2000).
This, according to Beckhardt and Harris (1987), and also Schneider, et al. (1992), in Eby
et al. (2000), may include flexible policies and procedures, and logistics and systems
support (for example, quality equipment, monetary resources). In addition, Armenakis, et
al. (1993), as well as McManus, et al. (1995) also found that the level of trust in
management may foster perceptions that the organization can withstand rapid
organizational change (Eby et al., 2000).
Supports for change should be reflected in an effective change leadership. An effective
leadership involves monitoring change, making the necessary mid-course corrections,
and knowing when to initiate a new vision. Leading and managing strategic change
requires that leaders have the capacity to learn from and adapt to change. In that process,
organization learning is fostered in an environment of openness and mutual trust that

42
allows people to embrace change and experiment without feeling threatened (Zeffane,
1996).
One form of management support toward organization’s change effort can be reflected by
forming a special team. The team is responsible to conduct analysis toward influencing
internal and external conditions, plan change process in more detail, identify possible
risks and anticipated actions, and to control implementation including progress evaluation
and conduct adjustment toward real situation.
Management support can also be reflected from how change is accommodated by
management through realignment of performance evaluation and employee
compensation with change initiative program. Change demands sacrifice from
employee. During change process, employee will feel uncomfortable with the new
surrounding. Thus, sacrifice, participation and commitment from members of
organizations have to be rewarded through performance evaluation and compensation.
Management action toward any obstacle in dealing with change process reflects the
extent of management support. Confidence that management has taken optimal steps to
face any obstacle reflects the change readiness level.

6. ACCEPTANCE

Change should be able to improve the organization’s overall performance. However, for
many employees, change can create feelings of uneasiness and tension, and as the change
begins to take shape, organizational members may feel a sense of uncertainty and
confusion (Bernerth, 2004). Because organizational change typically impacts how work
is accomplished, an employee’s reaction to the specific type of pending change may also
be important (Eby, et al., 2000).
Employees are willing to accept change if they are convinced that the change is beneficial
for them. However, many employees do not realize the benefit and advantage of change.
They are only concern about the immediate result. On the other hand, the benefit of most
change can be enjoyed over a period of time. Developing understanding of the nature of
and reasons for change in the early stages can provide a sound base for subsequent

43
changes and a greater willingness to take risks and extend beyond current boundaries
(Smith, 2005).
A well planned change would not be accomplished without the support of capable and
committed change agent. Beckard and Harris (1987) argued that reshaping capabilities
involves the knowledge, skills, and abilities of the organization as a whole to carry out
the necessary requirements for successful change implementation (Jones, et al., 2005).
Turner and Crawford (1998) discussed organizational capabilities needed for change.
They proposed a taxonomy consisting of engagement, development, and performance
management capabilities. Engagement is based on informing and involving
organizational members in an attempt to encourage a sense of motivation and
commitment to the goals and objectives of the organization. Development involves
developing all resources and systems needed to achieve the organization’s future
directions. Proactively managing the factors that drive the organization’s performance to
ensure it consistently and effectively achieves the intended change is the capability
Turner and Crawford label performance management (Jones, et al., 2005).
Changes always involve risks. Change involves moving from a known state to an
unknown one, of ending the way things are done and doing things in new ways, of letting
go. Thus, to reduce this risk, change readiness is mandatory. A failure to assess
organizational and individual change readiness may result in managers spending
significant time and energy dealing with resistance to change. An investment in
developing change readiness can achieve a double benefit. Positive energy goes into
creating preparedness for the changes and, in turn, there can be a significant reduction in
the need for management of resistance once organizational revival is underway (Smith,
2005).

7. MANAGING CHANGE – TRANSFORMATION PROCESS

Following are the few vital steps which Omega Chemicals need to take
for Organisational Change:

Step 1 Getting organised

Have a strong policy

44
Make senior-level managers accountable
Have a clear change-management
procedure
Communicate and include everyone
Review and challenge

The organisation should have a clear policy for management of organisational change.
This should set out principles, commitments and accountabilities in relation to impact on
health, safety and the environment. Ideally the policy should commit to proportionate
consideration of all organizational changes, large and small; as even those not at first
connected to safety need to be given consideration to confirm whether or not they may
have indirect impacts on safety.

Commitment and resources

Although the motivation for the change may be commercial, and not obviously connected
with safety, major accident prevention must be regarded as core business, not a side
issue. Senior management need to demonstrate a clear commitment to safety by their
actions, from the outset.
There should be a distinct safety focus within overall change processes, with positive
objectives. Make a senior, highly influential manager the sponsor or champion for this.
They should ensure the safety aspects of the change receive an appropriate level of
resource and attention.

The effort and resource put in must be proportionate to:

the complexity of the change; the scale of the hazards concerned; and the degree to
which the change may impact on the management of major hazards. This can be by
categorising of changes, with greater importance and a higher level of management
approval for more safety-significant categories.

Clear systems
Organisational change should be planned in a thorough, systematic, and realistic way.
You should follow a documented and structured procedure for each element of

45
organisational change management. This is similar to the processes for managing plant
change.

The following should be clear:

_ Identify the processes or activities that are to be carried out (to ensure that risks arising
from the change are identified, assessed and reduced to as low as is reasonably
practicable).

_ Set out the protocols to be followed.

_ Who is accountable and who is responsible for these activities?

Getting organised checklist

Don’t make too many simultaneous changes, resulting in inadequate attention to some or
all.
Don’t delay or defer safety issues compared to other aspects considered more pressing,
because:

_ it is seen as a side issue;

_ it is delegated to people with inadequate influence;

_ it is not considered early enough in the change process;

_ inadequate time or resource is allocated to the assessment;

_ teams making decisions are too inward looking;

_ there is lack of objectivity;

_ objectives are passive, maintaining rather than improving standards;

_ appropriate management controls are missing.

STEP 1: GETTING ORGANISED
_ Who else is involved, and how?

_ What potential risk factors are to be considered?

_ Who reviews the change process, when and how?

The design of the procedure should take into account:

46
_ this guidance;

_ previous experience of change;

_ the experiences of other organisations, where feasible.

As change can be almost constant for larger organisations, it is helpful to maintain a

register of individuals and their tasks, roles and responsibilities related to the major
hazard. This eases assessment of the frequent changes (large and small) that bigger
organisations experience, rather than starting the process ‘from scratch’ with each
change. This is a legal requirement for nuclear licensees.

All stages of the process should be adequately recorded, including all relevant factors,
questions, assessments, responses, decisions and reasons for decisions. This has a number
of benefits:

_ transparency;

_ easier to audit and assess under quality assurance;

_ accountability of decisions and their authorization can be traced.

A clear implementation plan, such as a project plan, must be produced and approved at a
senior level of management. This should be reviewed on a regular basis. Avoid trying to
do too much too quickly.

Participation and communication

The process of organisational change should involve all those concerned from an early
stage. This is not only for industrial relations reasons, staff at all levels will have unique
knowledge of what their own work involves and how it is really done; this may include
contractor and agency staff. This knowledge is often crucial and must be given proper
consideration. This is sometimes difficult given the emotions and agendas involved.
Those making decisions should be careful to analyse all information and views carefully,
and be made aware of their own potential lack of objectivity through an independent

47
challenge process (see below). Involvement in this context means active participation in
decisions, not just passive consultation. The HSE publication Involving employees in
health and safety gives examples of active involvement. Wide participation can also help
to ensure a higher level of acceptance of the changes.

Review and challenge

Senior management need to be given adequate information to review progress regularly.
The organisation should be prepared to change plans if risk assessment shows a potential
risk. Preparation of contingency plans can be helpful, HSE requires contingency planning
by nuclear licensees.

It can often be very difficult to be objective during organisational change. This might be
because of enthusiasm for a particular plan, pressures from a parent company, budgetary
pressure, or simply the stress of high workload and uncertainty. Reviews of plans and
assessments by independent internal or external experts should be used to reduce such
problems.

Step 2 Risk assessment

Identify the people involved
Identify all changes
Assess the risks
Consider human factors, competence and
workload
Test scenarios

Step 3 Implementing and monitoring

Provide enough resources to make the change safely
Monitor risks during change
Keep your plan under review, track actions
Monitor performance after change
Review your change policy

Change would be hindered if there is conflicting programs in organization’s environment.

Through program realignment, all programs and initiatives within an organization have to
be managed to align with the ongoing change program.

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Conviction that leaders within the organization are able to manage a changing
organization is a crucial foundation for growing employees’ confidence toward a
successful change program. According to Armenakis and Harris (2001), implementing
organizational change is the most important, but also is the least understood, skill of
leaders. Gilmore, et al. (1997) found that numerous organizations have experienced less
than desirable performance improvement and unfavorable employees’ reactions to
needed organizational changes (Armenakis and Harris, 2001).
Confidence that organization is able to deal with a challenging change is the
reflection of change readiness. Sources of potential obstacle during change process
have to be identified and anticipated. Pardo del Val and Fuentes (2003) have
identified five fundamental sources, namely direct costs of change (Rumelt, 1995);
cannibalization costs, that is to say, change that brings success to a product but at the
same time brings losses to others, so it requires some sort of sacrifice (Rumelt, 1995);
cross subsidy comforts, because the need for a change is compensated through the high
rents obtained without change with another different factor, so that there is no real
motivation for change (Rumelt, 1995); past failures, which leave a pessimistic image for
future changes (Lorenzo, 2000); and different interests among employees and
management, or lack of motivation of employees who value change results less than
managers value them (Waddell and Sohal, 1998).

ANALYSIS AND EVALUATION

After going through the above mention analysis Management of Omega Chemicals need
to address the people aspects of the solution – which were many.

How could you raise awareness to what was being done and why?

How do you manage training on a global level? What is the roll of

technology?

The starting point was getting all employees to understand and buy into the change. The
goals of raising interest, creating excitement and educating end users about the initiative

49
were the foundations for an Awareness Video presentation and a planned E-mail
campaign Starting with the Analysis phase. Management need to work to identify
obstacles to success.

The following key gaps that existed in prior rollouts of similar systems were identified:
 No communication of corporate sponsorship of the Initiative, therefore it
competes with many other activities.

 Missing direct management involvement.

Business and Operation Managers did not actively participate and needed a means to
communicate their objectives.

The initiative needed a “branding” that would include consistent, look-alike messages
that could be personalized

The team then partnered to create a two-part solution to address these gaps:

The first piece was an awareness video that included corporate sponsorship and a
“generic” scenario that showed how various roles interact with the technology to better
serve a customer.

The video was capable of widespread distribution to allow multi-lingual editing

capability. A specialized, four step E-mail campaign which included flash graphics and
the use a “funneltype” approach was component two. This method began the awareness
process at the corporate level and moved though a timed process to provide
individualized messages sent by “the closest appropriate business manager” on a personal
level.

The two components were highly reusable assets that could be leveraged across all the
interrelated initiatives. They contained a message from the CEO and an exciting scenario
that painted a picture of current and future technology in an appealing way.

The strategy and approach to using the campaign successfully was placed on the
initiatives website and was available to all implementation leaders, trainers and managers
to use. These messages could be customized to fit the specific business/area audience
while carrying the overall global change management message. The flash graphics

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allowed the E-mail to stand apart from other communications and helped raises the level
of interest in the Initiative.

Anatomy of change
V 5-10 Strategy: ‘Deep dialogue about the ‘why’ LT vision ‘transformational’

Strategic – Operational: Translate strategy into operational execution

IV 3-5 Project team vs. Business Manager performance accountability
Operational: Implementation & embedding of change outcomes
III 1-3 Middle management accountability vs. Delegation support teams
Service: Ensure application in day to day work
II 6-12 Supervisors get bombarded with multiple initiatives
Quality: Work within given organisational rules
I 1-6 m Will do what is clearly established in rules & procedures

Implementation
Implementation actions
actions Project
Project team get
team get going
New New Decline
going
initiative initiative
introduced introduced

The Effect of Change on People:

Operational indicators

Practitioners must be able to:

1. Develop strategies and techniques for the successful implementation of change, by

helping to develop and sustain across the organisation a framework for generating
stakeholder commitment to transition and change while maintaining current operations
where appropriate.

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2 Develop strategies to deal with issues around resistance to change and:

 resistance as a political label and/or a positive contribution to change

 contingency approaches to dealing with resistance

 the differences between resistance and apathy.

3 Identify and evaluate the advantages and problems associated with the ambiguity of the
change process.

Knowledge indicators

Practitioners must be able to understand, explain and critically evaluate:

1 The relationship between individual and collective learning at a strategic level and:

 the development of the organisational knowledge bases as a key aspect of

organisational survival and advance

 the contribution of the personnel and development professional to the development of

this process.

2 The cycle of adjustment models and the role and contribution of personnel and
development professionals at each of the stages.

3 Personal mastery of change as a key aspect of the learning organisation in order to

create and sustain change.

Indicative content

1 Emotional intelligence, emotional capability and spiritual knowledge – fads or enduring

aspects of the change and transformation processes.

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2 The levers for change; surfacing dissatisfaction with the status quo.

3 Ethical issues in the management of change, transition and transformation.

The personnel and development role

Operational indicators

Practitioners must be able to:

1 Identify and secure the commitment of the necessary internal and external resources,
including internal and external expertise, process consultants and organisational
consultants.

2 Develop champions of change, including line and other functional managers, who are
sensitive to:

 changing needs and the dynamics of the organisation

 the organisation’s environment in the context of:

 intra- and inter-organisational politics and power

 the organisations’ stage of growth and strategic direction.

3 Identify personnel and development priorities in the change management process and
their relationship to the priorities of other stakeholders.

Knowledge indicators

Practitioners must be able to understand, explain and critically evaluate:

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1 The strategic and value-adding role of personnel and development in managing the
psychological, emotional, spiritual and sociological processes involved in the different
stages of the change process.

2 The role of personnel and development professionals in managing and implementing

planned change, transition and transformation – acting as executive, expert, adviser and
consultant.

3 The ethical issues for the personnel and development professional in the management
of change, transition and transformation.

4 Techniques for understanding the likely impact of change, transition and transformation
on HR systems, culture and practice.

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 5. FINDINGS AND ANALYSIS

Manpower, for many companies, is their most important source of production capacity.
Simply look at healthcare, mail delivery or the retail business. According to the Fortune
500, Wal-mart is the world’s biggest employer, employing over 2 million people.
Number 4 is US postal. Both are examples of industries where the demand for manpower
will vary over time. Identifying the best staffing levels to meet the requested manpower
at each moment in time is a challenge for them, one that can be addressed effectively
with the use of Operation Research. I have performed various projects on this, in a wide
variety of industries. In this blog entry I will explain how I addressed this challenge. I
will focus on the question of how to determine the staffing levels; in a later entry I will
address the challenge of generating good shift schedules. First step in identifying the right
staffing levels is to have a good estimate on the required manpower. As mentioned
before, the required manpower varies over time, sometimes due to seasonal influences,
like in agriculture or for airlines, but it can also vary on a very short term, like in call
centres. A clear understanding of how the work is organized helps in identifying the right
levels of staffing. In the airline business for example most of the activities performed are
depended on the schedule of the aircraft. At a hub of an Express company the activities to
be performed are depended on the arrival and departure of trucks or aircraft, also at
railways, bus companies, etc. Focussing on the airline example, when an aircraft arrives
at the airport all kinds of activities need to be performed before it can depart again. It
needs to have a technical check up (to make sure it doesn’t fall apart), small repairs are
performed, it needs to be cleaned, refuelled, etc. Also the baggage handling, passenger
check in, airport security checks and boarding are all processes that are depended on the
airline schedule. Scheduling these activities is a challenge in itself, also because in most
cases special skills are required to perform them. As you can imagine the scheduling of
these activities influences the demand for manpower a lot. When you do a bad job at this,
for example by scheduling them all at the same time, it will create a peak in the required
manpower. When you are able to create a flat as possible manpower requirement profile,
it is much easier to create efficient staffing levels, for each skill, as you can imagine.
Sometimes the company that hires you supplies you with the required manpower and is

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therefore taken as given. An easy job, you might be tempted to think. However my
experience indicates that having a detailed look at it and trying to influence the
organisation of work is worthwhile to consider, before identifying the best staffing levels.

A typical picture of the required manpower looks like the profile of the toughest stage in
the Tour the France, many peaks and valleys that need to be covered with a set of shifts
of certain lengths. The objective can either be to cover the peaks at all time, or at a certain
ambition level. Part of the work is then covered with hired workers. Identifying a new set
of shifts involves taking into account a vast number of conditions. Collective labour
agreements and governmental regulation give guidelines on the minimal and maximum
duration of shifts, the number of breaks in a shift and appropriate start times of shifts.
Last but not least also employee preferences or scheduling principles applied influence
the shift set to be modelled. Each of these conditions needs to be translated into formal
restrictions of the model, most of the time leading to a mixed integer programming
model. I usually solve this kind of models by generating all possible shifts using different
start times, breaks required and duration of the shifts and breaks and let the management
and employee representation of the company review them. After approval I feed the shifts
that are acceptable to both management and employees into the model that identifies the
best set. Sometimes new shift times are out of the question, because the shifts are part of
the collective agreement. In that case it is still possible to improve, since the amount of
shift can still be optimized. The same model as before can be used but now the shift set is
fixed to the shifts now in use. The objective function needs some attention, especially

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when you want to use the model also for less than 100% coverage of the required
manpower. I have some good experience with an objective function that minimizes the
absolute difference between the required and available manpower.

The result of the optimization could look like this. Possible savings due to better shift
times or number can be large. The savings obtained varied between 5% - 30% in the
projects I performed. In case of variable demand for manpower, it pays of to regularly
run the analysis to see if the current shift times and number still fits the required
manpower

Recorder:
Planning change for people is based entirely on information concerning the current state
of the organisation. Information is needed regarding internal as well as external
influences of the organisation. Internal information such as the current number of
employees in each rank, the age distribution of each rank, the performance of each
employee, absenteeism factors and so forth. Information such as the age distribution in an
organisation influences the absenteeism factor due to increased illness probability due to
age. Length of employment influence the wastage rate, since employees which are new to
an organisation are more likely to leave rather those who have been employed for long
time. Moreover external factors such as the decree of unemployment will influence the
wastage factors. Information such as the economic and political would probably influence
the recruitment rate. Organisation plans for expansion or the initialization of a new

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marketing product, if not taken into consideration regarding the manpower levels, can act
as an obstructing factor for the successful operation of the organisation. Each rank (level)
of the organisation corresponds to a business object in the operational model. Ranks
interact with the employee business object in order to accumulate all the necessary
information concerning the current workforce of the organisation. This information is
subsequently passed to the recorder which records them into the database. In addition the
recorder extracts from collaborating objects information concerning the wastage rates,
current vacancies, and recruits. Business objects also incorporate the necessary
functionality for the operational aspects of the rank that they represent. These could be
the tasks that employees assigned to the particular rank are responsible to perform.
Completing these tasks enables the recorder to record the performance of each employee.

This can be achieved in cases where the tasks are performed on the computer. In these
cases the system monitors the time spent by each employee on each task. For manual
tasks, alternative techniques could be applied. Information concerning the performance is
recorded for simulation purposes by the recorder. Such information is provided by

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collaborating business objects which concentrate on issues external to the organisation
(labour market, unemployment rates etc).

Business Rules:
In order to enforce the organization’s policies on the operational and simulation
processes, the “Business Rule” object is employed, so that the managers can specify the
policies that they wish to apply to their manpower. Policies such as the maximum and
minimum numbers of employees in each rank, the maximum and minimum numbers of
years in a rank before promotion, and so forth are incorporated into the “business rule”
object and are passed to the rank business object during operation and simulation.
Policies are initially converted into their equivalent numerical format and subsequently
passed to the simulation model.

Simulation Model:

The simulation co-model incorporated in the business objects is based on system

dynamics. Each co-model interacts with other co-model of collaborating business objects.
Figure 5 depicts a generic model of a typical organisation. Each level (rank) of the
organisation is divided into a number of years. These years denote the length of time that
employees stay at a certain level. Employees flow from year to year until they reach the
maximum number of years that they can remain at the same level before being promoted.
Wastage is denoted by employees leaving the organisation voluntarily or compulsorily.
The model represents a generic representation for planning change for people.

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 A high level representation of a planning change for people model

Strategic significance of workforce plan:

 What makes workforce plan very critical is the possible negative repercussions
that excess and under recruitment can lead to. It is people who build the
organisation, consequently any mismatch in employee-related statistics, whether
in terms of number, skill set or core competencies may upset the whole
organisation dynamics and its objectives
 The employee head count has direct impact on cost but indirect impact is far more
sensitive. Workforce planning has a direct link with employee development,
multi-skilling and succession planning
 An organisation must forecast its business and expansion strategy correctly and
also have its workforce planning in place. There are various management
approaches in use for determining either shortage or surplus
 Apart from forecasting, an organization’s capability to sustain the current
business and to grab the new business makes a big difference
 A pharma company should consider factors like current business needs, future
plans, growth areas, addition/deletion of business, change in technology, attrition
trends and talent availability in the market to ensure that they recruit the right
amount of workforce

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 6. RECOMMENDATION
Any solution, to be effectively executed, must be “plugged into” the performance
management process. Performance management is the primary means organizations have
for executing their strategy through their people. For a solution to happen, someone (or
some group of people) will need to be held accountable for taking the actions necessary
for the solution to succeed and for achieving the results for which the solution has been
initiated. Establishing expectations and defining accountability for carrying out actions
and achieving results is what performance management does.

• Rewards and Recognition

An effective rewards and recognition program is a key component of a
performance culture. Simply put, if there is no means of recognizing top
performance, there is little incentive to achieve it. Employees need tangible
feedback in order to know when they’re doing a good job. When organizations
have a “culture of recognition,” employee job satisfaction and retention improve.
This section features tools, techniques and tips to help HR professionals and
managers implement a culture of recognition.

• Work Environment
The work environment has a significant impact upon employee performance
within any organization. A model of a high-performing work environment has
been developed, using the acronym, “PERFORM”. It identifies the attributes
found in such an environment, and provides tools to help managers perform self-
assessments to identify and increase their awareness of the primary obstacles
affecting performance management within their unit. In addition, tools are
provided to assist agencies in developing strategies to remove the barriers and
obstacles that can block or slow performance.
This initiative provides tools to measure employee engagement, which has been
proven to have a positive effect on productivity. Managers will receive guidance
on how to focus on the primary issues affecting employee engagement and how to

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 take corrective steps to move their organization toward becoming a high-
performing work environment.

• Career Development:

A career development program is a self-managed program that allows employees

to make informed decisions about their work lives. This program provides tools
and resources to help employees assess their knowledge, skills and competencies,
personality traits and characteristics, work environment, values, leadership and
managerial skills, and communication skills. Career development also includes
helping employees to set goals, explore career options and create a strategic
development plan that formalizes goals, creates action steps for achievement, and
sets dates for completing the steps. “Development opportunity” is an
organizational attribute that drives employee commitment and retention.

• Leadership Development

Organizations succeed to the extent that they have effective leaders – individuals
who thrive on meeting challenges, solving problems, taking the initiative,
implementing needed change, and influencing others to make the right things
happen. And not just at the top of the agency, but throughout - from the visionary
agency head to the insightful frontline worker, from the dynamic operations
supervisor to the resourceful administrative support person. Leader development
is about building leadership skills at all levels of the agency as well as assuring
that there are people being developed today who will be prepared to step into
leadership roles to meet the challenges of tomorrow.

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 7. CONCLUSION

Planning change is the business process for ensuring that an organization has suitable
access to talent to ensure future business success. Access to talent includes considering
all potential access sources (employment, contracting out, partnerships, changing
business activities to modify the types of talent required, etc.). By talent is meant the
skills, knowledge, predisposition and ability to undertake required activities including
decisions making. Strategic Planning considers the business risks concerning insufficient,
disrupted, mis-deployed talent on the organization's business priorities. Planning change
is analogous to the treasurer role which is concerned with ensuring the organization has
suitable access to working capital. This role also looks at multiple sources for access and
similar risks to those mentioned above. One of the more restrictive and potentially
dangerous assumptions is that Strategic Planning is only about talent in the form of
employees. Hiring is a strategy for accessing talent and will often be the superior one.
However, the use of employees to meet talent needs carries with it unique risks that can
be mitigated using alternative access sourcing arrangements. Regardless of the access
source used, insightful assessment of the strategy's attendant business risk is prudent. The
process for starting out Planning change is link with the organization's strategy. This
means identifying the critical talent needs that if not met can materially adversely impact
business success. Once the business risks are fully appreciated then attention turns to
schedule and timing. Assessing current internal capability and assessing its relative
position when it will be called upon in the future. Implementation and execution follow.
Attention to periodically reviewing the "sanity" of the current plan is prudent.

The integration of business objects with system dynamics has proven to be beneficial in
the area of planning change. The incorporation of business rules to guide each business
object and its embedded system dynamics co-model enables the co- ordination of both
operational and simulation models. Due to the employment of a recorder object in each
business object, important information concerning the manpower model could be
collected during operation and subsequently supplied to the simulation model for

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processing. The co-operation of the various business objects and the exchange of
information concerning their embedded simulation models enable the utilization of a
variety of information types concerning the simulation. The application of the
methodology in planning change revealed considerable benefits compared to monolithic
simulation models, such as elimination of continuous re- informing sessions concerning
the current state of organization’s manpower. Intelligent decisions can be made by the
governing business objects during the simulation process which identifies the most
appropriate sequence of actions to be followed by the practicing managers. Since the
operation and simulation of manpower is conducted in the same framework there is no
redundancy of information and no information gathering and transfer costs.

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 8. LIMITATIONS

1 Restrictive analysis is conducted due to the lack of study period.

2 Lack of inadequate information due to information sources.

3 Lack of information about banking sector for carrying out deep analysis. 

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