Master of Business Administration- MBA Semester 4 MU0018 Change Management - 4 Credits (Book ID: B1339) Assignment Set- 2 (60

Marks)

Q1. What are the three dimensions of organisational structure?

Answer:

Dimensions of Structure According to Robins, organisational structure has three dimensions. These dimensions are represented in the figure

Dimensions of Organisational Structure Formalisation Formalisation refers to the degree to which the activities, policies, measures, instructions are carried out and how they are defined, mentioned, and standardised in an organisation. The degree of formalisation is higher when compared with the degree of division of labour, the degree of departmentalisation, the degree of span of control, and the level of delegation of authority. Some of the benefits of formalisation are as follows: Formalisation cuts-down the irregularity in the organisation as the activities are standardised.

Formalisation increases coordination as the activities are distinct and specified which ultimately leads to an effective coordination between the managers and the employees. Formalisation reduces the operation cost of the organisation. Formalisation reduces conflicts and uncertainties as most of the activities are standardised. Though formalisation is beneficial, it is not away from criticisms. Some of its criticisms are as follows: As most of the activities are standardised, there is no scope for creativity and flexibility. It is difficult to change the rules that are followed in the organisation. If any new rules are formed and implemented, employees struggle a lot to cope up with it. Though formalisation has certain limitations, it is used in many organisations as it effects in smooth and effective running of organisations. Also, it builds good relationship and efficiency within the organisation. Centralisation Centralisation refers to the degree to which decision-making is given importance in the organisation. Centralisation is one among the fourteen principles stated by [2]Henry Fayol. His principle says Diminishing the role of subordinates in decision-making is centralisation and decentralisation is the opposite of centralisation. In centralisation, control and decision-making are made by the top level of management but they have less power. It is impractical to have absolute centralisation as it would deprive subordinates based on power, authority and duties. The concept of centralisation plays a major role in the survival of small organisations as they face competition in the market. Importance is given to decentralisation only when there is larger organisation as decision making has to be placed in the centre of the operating level. It is because of the complexity of industries in terms of size, interdependence of work flow, complex tasks and physical barriers within and among groups. Decentralisation pushes down the authority and power of decision-making to the lower levels in the organisation. However, it is a systematic effort to hand over power and authority to the lowest levels. The concept of decentralisation can also be related to fundamental principles of democratic management as every individual gets justified admiration for their worth. Complexity

Complexity is referred to the differences among jobs and divisions. Complexity highlights the degree of differentiation that exits inside the organisation. Complex organisational structure comes into force because of variety of jobs and divisions within the organisation. As it is very complex, the management of it becomes very difficult and boring. Complexity of the organisation also refers to the degree of management, communication and control within the organisation. Based on complexity of activities within the organisation, there are three types of differences. If the differentiation is higher, higher will be the complexity. Figure 2.3, represents the three differences based on the complexity.

Differentiation Based on Complexity Horizontal differentiation: It refers to the total number of dissimilar units at the same level in the organisation. Examples: Specialisation, departmentalisation. Vertical differentiation: It refers to total number of levels in the organisation. It reflects the depth of hierarchy in the organisation. The hierarchal increase will improve the complexity in the organisation. By this coordination and communication becomes difficult as they are he important factors of working. Spatial differentiation: It refers to a degree to which location of units and the personnels are distributed. This increases the complexity of organisations in multiple locations as coordination and interaction becomes difficult in the organisation. All these dimensions contribute a lot to efficiency, centralisation, specialisation, centralised authority of functional departments, and monitors span of control. Therefore, all these dimensions are vital and integral part of the organisation to run successfully and economically. Q2. Describe the role of leaders in managing change.

Answer: Role of Leaders in Change The leaders play an important role in the change management. The leaders at different levels in the organisation will have different roles to play. The leaders work towards achieving the goals in the organisation. Whenever the leaders are planning to manage change, it is necessary to follow few principles. They are: Different people react in different way for the changes. Everyone has fundamental needs that have to be met. Change often involves a loss, and people go through the "loss curve". Expectations need to be managed realistically. Fears have to be dealt with. This can be explained in detail as follows: Different people react in different way for the changes: The opinion of different people varies in a different way. Some people like to follow the old system and they want things to be as it is, so they like to be at the stability end of the spectrum. Some other people encourage for the new upcoming change, so they like to be at the change end. Many problems come when the people find that their opinions do not match with the situations. In such a condition the individuals will be dissatisfied, experience stress, and dislike individuals at the other end.

Q3. What are the challenges that managers face in implementing successful change? Answer: Challenges in Implementing Successful Change There are many challenges that have to be addressed for implementing the change. It is human tendency to resist the changes since the change require learning new skills when we are very much comfortable with the old rules. There are many challenges that have to be faced by the organisation that have to be implemented by the organisation. They are:

 There is more competition from other countries in the market of today. In this situation we have to look with our organisation whether the organisation is able to cope with the market after implementing the change. There will be some socio, economic problems like the resource allocations and the impact of the resource allocation like depletion of resources on the environment. There are some changes may effect the life style of the people. There may be extra effort that is needed in the case of change process. There is a need to learn about the learning of new skills in the case of implementation of change that has to be carried out. There are many theories that explain why the people resist the change even when there is a necessity for the change. The resistance to change is the major challenge that is faced in all the organisations of todays world, Q4. What are the requirements for making organisational change? Answer: Requirement for Making Organisational Change The requirements for making successful organisation change involve the five stage process in managing the change. These five stages are commonly present in all the models. These five stages are: 1. Motivating change: This phase includes the readiness that is created for the client organisation and it also defines the approaches that are developed to overcome the resistances that are faced during the change process management. This phase includes few important guidelines. They are: Informing the whole organisation about the need for change. Explaining the status of the organisation about where it is now and where it needs to be in the future. Developing the approaches to develop the changes. Having knowledge about chances of resistances of many employees in the organisation because of various reasons. 2. Creating vision: Leaders in the organisation need to give a clear vision which describes the effort that is required to achieve the goals.

 Two important factors of vision that are to be kept in mind for this phase are: The vision has to give a clear idea about how the achievement of the goal improves the organisation. The realistic nature of the vision. 3. Developing political support: From a political perspective, Organisations can be seen as loosely structured coalitions of individuals and groups having different preferences and interests. Usually the political behaviour in an organisation is going to increase when there are no rules and regulations available in the organisation to govern the activities. When there are no rules and regulations the individuals develop their own rules. The rules made by the individuals are self serving and these individuals reach to higher level. 4. Managing transition: This occurs when the organisation wants to make the actual transition from the current state to future state. This phase is called as the implementation of the action plans. This includes many of the activities. For example, Creation and modifications of major structures and processes in the organisation. 5. Sustaining momentum: This is the most difficult phase in managing the change. The change effort has a lot of hurdles in between the change management process. For example: Strong effort from members of the organisation, sudden removal of the key leader, drastic decrease in the sales. Employee performance management system plays an important role. This role includes the setting goals, sharing feedback about the accomplishment of goals, rewarding the behaviours that are helpful for the successful accomplish of the change and addressing the performance issues. Q5. How do change managers recognize resistance of employees to change? Answer: Recognising Resistance It is important to be able to spot the resistance to change when it occurs rather than get surprised when the change mysteriously fails. Identifying the same will help you to respond appropriately to it. This is one of the biggest challenges faced by the change managers. If you can catch the resistance early, it will then give you a chance to respond to it before it takes hold, hence, effectively nipping it in the bud. Let us first look into some of the early signs of resistance. These can be in the form of: Gossip.

 Testing. Gossip When a change is announced, the tom-toms will start beating loudly and the grapevine will bear fruits of much and varied opinion. Keep your ear to the ground so as to know what is being said around the coffee points. Listen particularly for declarations of intent and attempts to organise resistance. Grumbling and complaints are natural ways of airing discomfort, so you should not try to squash it as this will anyway lead you to failure. The biggest danger happens when it is allowed to ferment in an information vacuum. Respond to the gossip by opening it up, show that you are listening to the concerns and that are taking them seriously. Providing lots of valid information will help to fill the vacuum. Testing Just as a high school class tests a teachers ability to maintain discipline, so will some brave souls test out what would happen when they resist the change. An example, the resisters may not turn up to a meeting or may openly challenge a decision. How you deal with such early resistance has a significant effect on what happens next. For example, you can shout at them and hurt their sentiments, or you can take an adult position, describe what they have done and assertively question their motives. Resistance to change can occur in two ways, namely: Individual action. Collective action. Individual action Individuals, may resist, however, this is generally limited to the extent of their personal power. For those with a lower power, this may include passive refusals and covert action. For those with more power, the resistance may include open challenge and criticism. An individual action must be handled individually. It should be started with those who possess a greater power and then the message gets automatically conveyed to those below.

An example of dealing with an individual who is resisting change: Disciplining a senior executive can send a strong signal to the other resistors. Collective action People generally do not bother of organising unless and until they have serious issues with the change. This gives rise to what is known as organised resistance. Organised resistance is usually a sign of a serious problem. When these people find a common voice in the organised resistance, then their words and actions could create a significant threat to the change, even though they might be individually less powerful. Care should be taken while managing the collectives. It should be done by negotiating with their leaders rather than dealing with a myriad of smaller fires. You may be needed to make some concessions, but you can see to it that at least at the end of the negotiation you should be able to rescue some key elements of the change. You can also use the divide and conquer approach, by striking deals with the individual key players; although this must be done carefully as it can cause a serious backlash. An example of a collective action against resistance to change: Trade Union. Resistance need not always be out in the open, in most cases it often starts out in a more underhand, covert way. Thus, we can conclude that resistance to change is basically expressed in two ways. These include: Covert resistance. Overt resistance. Covert resistance Covert resistance is the deliberate form of resistance to change, but done in a manner such that it allows the perpetrators to seem as though they are not resisting. Covert resistance should be handled by showing that you know what is happening and investigations should be so designed so as to identify the people responsible. When the resistance is covert in nature, you may also be required to resort to covert methods to identify the source and hence take appropriate action. An example of covert resistance being expressed can be through the sabotage of various kinds. Overt resistance

Overt resistance does not try to hide, as it is the result of either of someone comfortable with their power, or someone for whom covert acts are against their values, or someone who may be desperate. Deal with the overt resistance by first seeking to respond openly and authentically. If they are blindly resisting, then you will be left with no alternative but to defend, for example by isolating and disciplining the culprits. Although overt active resistance is potentially damaging, it is at least visible and there is the option of using formal disciplinary actions. An example of overt resistance being expressed can be in the form of an open argument such as refusal or attack. Another aspect of the overt resistance is that it does not necessarily need to take positive action as in some cases it can be passive. Let us read further to understand how overt resistance can be further classified. Overt resistance can be expressed through two types of actions. They are: Passive resistance. Active resistance. Passive resistance Passive resistance occurs when people do not take any specific action. Their main tool will be to refuse to collaborate with the change. They may agree and then do nothing to fulfil their commitments. This could become very difficult to address, as the resisters would have particularly not done anything wrong. One way to address this is by getting the public commitment to an action, and by following it up publicly if required. This will ensure that they complete the action. This process should be repeated until they are either bought in or they give in. For example, during meetings, they may sit quietly and appear to agree with the change. Active resistances Active resistance occurs when people take specific and deliberate action to resist the change. It may be made overt, with public statements and acts of resistance, or it may be made covert, such as organising others to create an underground resistance movement.

Thus, we have seen the different ways of recognising resistance.

Q6. Change management plays an important role in any organisation, as the task of managing change is not an easy one. Justify. Answer: Change Management Overview Change is any variation/alteration/transformation, a passing phase from one state or form to another, for example, a change of countenance; a change in habits or principles. Change implies dissatisfaction with the old one and an urge for the new one. Change can be perceived in two ways-changes as intrinsic and continuous, and extrinsic and discontinuous to the organisation. Change Management is a systematic approach of dealing with change, both from organisation and individual perspective. Change Management can be seen from two perspectives, one is from those implementing change and the other is the recipients perspective. Your view on change management varies if you are an executive who is demanding a change, versus an employee on whom the change is executed. In many cases, neither the executive nor the employee has the knowledge of managing change. First the project managers, consultants, or the members of the project team learn about the necessity for change management. They recognise the two dimensions of change management as the top-down managers perspective and the bottom-up employees perspective. The managers perspective of change is result-oriented. They are always aware of the business issues facing the organisation and are responsible for the financial performance of the company. When a change is needed, managers need to act quickly. In many cases, executives must evaluate the return on investment of this change as compared to other strategic initiatives in the company. Front-line employees (and in some cases, include supervisors and managers) generally do not have a day-to-day view of the business issues. Serving customers, processing orders, getting the job done are the primary areas of interest. When changes are made, many employees lack the knowledge of why the change is being made. They also do not share the same responsibilities as managers. Therefore, they question as to how the change will impact them personally. Many organisations have learnt the hard way through their failed projects that the change management is not something addressed after the fact. Change

management must always start at the beginning of the project and should be included in all facets. So what is change management? Change management is the successful management of a business change, wherein the executive leaders, the managers and the front line employees work in order to successfully implement the needed process, technology, or organisational changes. The goal of change management is to execute these business changes quickly to: Minimise the impact on productivity. Avoid unnecessary turnover or loss of valued employees. Eliminate any adverse impact on your customers. Achieve the desired business outcomes as soon as possible. Managing Change Change management has become a top priority for business executives today. How you manage change in your business will determine your success. Change is something that forces an organisation to advance in a market, reach business goals, and be more efficient. However, change is unavoidable in todays business environment. The managers and organisations have a choice: to be controlled by and be reactive to changes or be proactive and manage the change process. Both managers and employees perspectives for change must be considered here. These two perspectives of change management are referred as: Organisational change management. Individual change management. Figure 1.1 illustrates the process of managing change.

Managing Change The knowledge and skills required to manage change comes from the two perspectives of change: the managers and the employees. Organisational change management is the management of change from the perspective of managers or project teams, and individual change management is the management of change from the perspective of employees.