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Change Management Unit 14
Sikkim Manipal University Page No. 296
Unit 14 Change Management During Turbulent Times
Structure:
14.1 Introduction
Objectives
14.2 Trends Affecting Organisation Design
14.3 Major Contextual Factors Affecting the Conduct of the Business
14.4 Implications for Organisation Design
14.5 Managing Change during Turbulent Times
Setting clear expectations
14.6 Strengthen Relationship and Maintain Lines of Communication
14.7 Summary
14.8 Glossary
14.9 Terminal Questions
14.10 Answers
14.11 Case Study
14.1 Introduction
After studying the previous units, you are familiar with the concepts of role of
change agents. We have also studied the role of internal consultant, the role
of organisational management and the skills that are required for the role of
change agent. It also makes us to understand the human resource
development in managing change.
Everyone live in turbulent times. The word turbulence began when applied
to corporate change. Turbulence is defined as disorder, violent agitation,
and irregular movement and not stable. According to 1Professors Paul Nautt
and Don Schon turbulence is the absence of clear and stable path, no
guideline to propose and achieve resolutions. In simple terms turbulence is
not easy to understand. It results in disorder or uncertainty, which often
results in lack of clear understanding about the organisation. Thus
turbulence is not affected by any external factors in the environment. In fact,
turbulence plans itself by imposing formal procedures and makes them toget exposed to unexpected changes.
1www.emeraldinsight.com/journals.htm?articleid=1697169&show=pdf
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This unit mainly concentrates on the trends that affect organisation design,
the major contextual factors that affect the conduct of the business, theimplications for organisation design. It also describes how to mange change
during turbulent times, to set clear expectations and to strengthen
relationship and to maintain the lines of communication.
Learning Objectives
After studying this unit, you should be able to:
explain the trends affecting organisation design.
discuss the major contextual factors that affect the conduct of business.
discuss the implications for organisation design.
explain how to mange change during turbulent times and set clear
expectations.
explain how to strengthen a relationship and to maintain the lines of
communication.
14.2 Trends Affecting Organisation Design
An organisational design is formal guided process for information and
technology and integrating various resources such as tasks, and employees
within the organisation. Organisation design is used to match and achieve
the organisation form as expected. The probability of achieving success is
more through the organisation process. Here managers and the members in
the organisation work together to achieve the organisation needs.
Organisation design supports the organisation's structure with its mission.
This implies it should maintain the complex relationship between the tasks,
workflow, duty and authority and to ensure that all support and achieve the
objectives of the organisation. A good organisation design creates the
environment to work effectively. It also assists the organisation in
communication, productivity and innovation.
In the absence of the organisation design or in case of poor organisation
design, an organisation cannot give effective performance even if the
organisation consists of best mission, people and leadership. Most of theproductivity and performance related issues are traced back to poor
organisation design.
For example, in an organisation, the production and sales department work
as different units, they need to communicate with each other to know about
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customers needs but they are not allowed to communicate as a result the
organisations performance comes down.The work done, business processes, information sharing all these factors
directly affects the performance of the organisation. All these factors are a
part of organisation design and each factor is important for an organisation
to be successful.
It was noticed that a report entitled the changing business affects the
industry, lifestyles and social structures that also affects organisations
environment such as the strategies, structures, employment practices, and
the way the organisation functions and are required to work with change.
The major trends affecting organisation design are shown in the figure 14.1and listed:
Figure 14.1: Major Trends Affecting Organisation Design
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Trends affecting organisation design:
Decline in the traditional family forms. Increase in choice of home, work and leisure.
Increase in the mobility of individuals regarding residence, working and
personal relationships.
Increase in variability in personal identities due to the increase in
mobility and transient working arrangements, personal relations and
leisure.
Increase in freedom from traditional obligation leads to more self
centeredness, dissipation, self-indulgence and hedonistic psychologies.
Insecurity, lack of confidence due to anxiety and risk are the high threat
faced by the organisation. Focus on individuality and self-interest leads to personal creativity giving
rise to innovative organisation.
Increase in the international division of labour with higher global
separation between underdeveloped economies and the developed
economies.
Increase in the ability of information and communication technologies
leads to the refusal of traditional form of organisation that includes public
sector and organisations.
Increase in genetic engineering to control the pattern of reproduction,
technology to improve health both physically and psychologically. Increase in socio-economic inequality divergence in cultural, education
and material living standards.
These changes that are mentioned above have an impact in reaching the
nature and design of the organisations across the globe. Thus, these trends
provide the directions to organisations to move in order with the changing
environment and to support the utilisation of information technological
revolution across the globe.
Self Assessment Questions
1. ______________ supports the organisation's structure with its mission.2. Insecurity, lack of confidence due to anxiety and risk are the high threat
faced by the organization. (True/False)?
3. A Socio-economic inequality decreases divergence in cultural,
education and material living standards. (True/False)?
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Activity 1:
Suppose you are hired as a consultant for a traditionally managed Textileand Apparel company. Make a list of trends that can affect the change in
the organisation.
(Hint: Figure 14.1 Major trends affecting Organisational design)
14.3 Major Contextual Factors Affecting the Conduct of the
Business
Globalisation allows the forces to affect the performance of business and
the nature of organisation involved in productive pursuit. These expansions
have led to re-examination and redefinition of the organisation design
principle.
The major contextual factors are:
Organisation deconstruction.
Distributed Intelligence.
Technological connectivity.
Creative destruction.
Disruptive innovation.
Knowledge workers.
Leveraging knowledge.
Social responsibility of business.
Social architecture.
Clash of cultures.
Organisation deconstruction
The significance of the concept of traditional organisation more exists in the
post-industrial world. The post-industrial social order is the process of
transition from a mechanistic, stable and systematic viewpoint to initiate on
the complexity, knowledge and change.
There is a fundamental change in organising the organisation and an
organisation. The organisation is not limited within a border that is separated
from its constituents in its environment. To achieve the objectives of an
organisation the suppliers, vendors, outsourced business processes and
customers are increased and are made as partners. To attain maximum
individual gain at the price of other partners as the whole cost of an
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organisation as lost its accuracy. To achieve a common goal all the partners
in the organisation work effectively together. It is been noticed that theconcept of organisation as undergone change. The geographical space is
no longer a restrictive factor for the growth and expansion of the
organisation. It is seen that the geographical space is assisted through
instant coordination and control of information. The decision making and
real time distributed action have become an order for the day, due to this the
stable organisation have become unstable. The deconstructed organisation
thus is less open to command and control mechanisms.
Distributed intelligence
The domain of operations increases as the organisational space gets
distributed; the workers replace manpower with traditional skills and thebase of the information is enlarged. To make knowledgeable decision that is
essential for an organisation the required information gets extremely
distributed among the members of domain in the organisation. By grouping
together the views, ideas, opinions and perceptions of all the relevant
members in the organisation the distributed intelligence are converted into
collective intelligence. Due to this process of convergence the organisations
learn to create knowledge and utilise it for rethinking strategies and systems
and processes have also brought constant improvement.
Technological connectivity
All over the world, organisations and individuals make the best use of IT in
designing processes, in generating and using knowledge. Latest technology
and new developments are increasing rapidly beyond their area of products
and services. The IT revolutions have changed the way we work. The work
carried out is instantaneous and global. New forms of communities and
interaction are emerging. Many people use cell phones, emails are sent in
abundant and Google searches are done everyday. Geography is no longer
restricted on limits of social and economic organisation.
Creative destruction
Global competitive pressures, emerging economies, saturated markets anddemanding customers are crisis faced by all organisations. The concept of
industrial era fails to give a solution to the emergent problems. The structure,
system and processes that were functional to the environment have
survived their utility. In the changed circumstances, organisations have
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choice instead of systematically destroying the process they had. It is hard
to destroy the process that was created by the organisation and achievedsuccess rate, since new process have to be created. Thus Creative
destruction means to destroy the old structure or edifice and create a new
structure. For the support of organic-non-hierarchical structures the
mechanistic-hierarchical structure are destroyed and external customer
focus are replaced instead of internally focused systems and processes.
Disruptive innovation
Through disruptive Innovation the organisations gain competitive advantage.
The disruptive Innovation is a business model that aims significantly to
transform the demands and requirements of a mainstream market and thus
disrupting its former members. It introduces the product and services thatare required for the emerging market or organisation. Some quality
performances of the products are not acceptable by the mainstream market.
The performance of the product is tested in the emerging or niche market
and the organisation expands its customer base by creating new niche
markets. Understanding a product increases as it influences the sensitivity
of its value in the mainstream markets. The change in the mainstream
markets view acts as a medium to enable the innovation to disrupt and
replace existing services, mainstream products or business models.
For example, the digital communications and transmissions are disrupting
analogue communications and transmission. The mainframe markets are
disrupted by desktop computers.
Knowledge workers
Knowledge workers are the individuals who are valued for their ability to act
and communicate with knowledge within a specific subject area. They
always advance the overall understanding of that subject through focused
analysis, design and development.
The subsequent pressure to raise the productivity of knowledge workers and
the qualitative change in the nature of workforce requires a shift in the work
structure. Production equipment is the primary skill of manual worker. Tomake the manual workers or the employees to be productive the production
equipment are used as a task management and industrial engineering by an
organisation. Manual workers are usually assigned a task and each
knowledge worker possesses individual strengths and needs to have a total
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responsibility for the task, and should be able to manage themselves. The
knowledge workers are viewed as capital asset and manual workers areviewed as costs to be controlled and reduced. This makes the organisations
to develop new performance measures and new strategies.
The industries highlight the need for retaining well-trained talent due to the
shift the knowledge-intensive. This leads to the integration of global labour
markets. For most of the organisations global labour and talent strategies
have become important as global sourcing and manufacturing strategies.
Leveraging knowledge
The access to information anywhere and everywhere is changing the
economies of knowledge. The Knowledge is more and available, at the
same time it is focused. The manifestation of knowledge is the rise of search
engines such as Goggle that has Infinite amount of information available
immediately. To access the knowledge has become universal, but the
transformation is much more reflective than the broad access to the
knowledge.
The economy is uncertain, and knowledge is the only lasting source of
economical advantage. The shift in markets makes the technologies grow,
products are outdated and competitors multiply, to be successful the
organisations constantly create new knowledge, circulate it throughout the
organisation and quickly represent it in new technologies and products.These activities define the knowledge-creating organisation, and their
exclusive business is continuous innovation.
The new models emerging are knowledge production, access, distribution,
and ownership. Individuals are not responsible for innovations; there as
been a rise of open-source approaches in knowledge development as
communities responsible for innovations. Knowledge production is rising
worldwide. The organisations need to leverage or control the new
knowledge creation else there is a risk in drowning of too much information.
Social responsibility of business
As the businesses are global, this results in the mega-corporation that has a
wide range of implications for the legitimacy in organisations that they
operate. The mega-corporations are under inspection by societal and
regulatory mechanisms. Certain people do not accept the present
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organisation concerns of shareholders value, free trade, intellectual
property rights and profit repatriation. There is a threat to global operatorsby the scandal, environmental misfortune, value-conflict and clash of ethical
standards. Thus the business leaders are forcefully required to argue and
demonstrate the intellectual, social and economic case for business in an
organisation and the contributions to social welfare.
Social architecture
Social architecture that is suitable for the organisations should be developed
to connect and synthesise a wide range of unexpected organisational and
contextual forces that are impacting on performance of organisation.
In a comparatively stable environment, the social architecture of
organisation is regarded as ordered arrangement of parts with fixed
positions and roles. The social architecture has to be flexible and adaptive
to emerging concerns as organisations are functioning within a disorganised
environment with complex set of factors.
The organisations with complex systems are governed by a set of principles
that are qualitatively different from those of the simple system with inherent
order.
Organisation needs to constantly reposition and self-organise themselves
with the chaining configuration of environmental forces. Through emergent
structures, process and behaviour the complex systems get adjusted oradapted to the changes in an organisation.
Clash of cultures
The integration of diverse organisational cultures has emerged as a major
concern part due to the increasing trend towards mergers and acquisition of
corporations at the global scale. Outsourcing of business processes in
different parts of the world brings cultures together with various norms,
orientations and practices.
The organisations achieve synergy if the inter-cultural issues are resolved
and the relationships are managed. To attain the achievement towards acommon purpose the strategic alliances and private-public joint ventures are
required to integrate the district organisational cultures.
Various cultural norms and practices have to be managed to understand the
purpose for which organisations go into partnership arrangement. Culture
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provides the direction to responses of organisation members, it also
influences the management processes such as monitoring and controlperformance appraisal, information sharing norms, the like and work
standards. Cultural differences are essential as a significant factor in
developing right designs of an organisation.
It is very important for organisations to incorporate the above mentioned
concerns in the design of structure, process and culture. There is no
particularly best way to respond to the emerging realities suitable options
are necessary to be generated by organisations to develop such designs as
that enable them to gain and maintain economical benefit.
Self Assessment Questions
4. Globalisation has freely allowed the forces to affect the performance of
business and the nature of organisation involved in productive pursuit.
(True/False)
5. The post-industrial social order is the process of transition from a
mechanistic, stable and systematic viewpoint to initiate on the
complexity, knowledge and change. (True/False)?
6. All over the world, organisations and individuals make the best use of
IT in designing processes and in generating and using knowledge
(True/False)?
7. ___________ means to destroy the old structure or edifice and create
a new structure.
8. The ______________ is a business model that aims significantly to
transform the demands and requirements of a mainstream market and
thus disrupting its former members.
9. The integration of diverse organisational cultures as resulted in a minor
concern part due to the increasing trend towards mergers and
acquisition of corporations at the global scale. (True/False)?
Activity 2
Visit any organisation and make a list of factors that affect the conduct of
the business.
(Hint: Contextual factors)
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14.4 Implications for Organisation Design
The focus of organisation design theory needs to continuously expandbeyond the boundaries of the single firm and multi-firm networks to include
the community based organisation design and is the main implication for
organisation design. The identification and description of designs that
develop combined behaviour among firms without restricting the ability of
the individual firms and to continuously compete within their own
marketplace should be the goal for organisational design. One definite
framework that addresses inter-firm behaviour according to 2Dyer and Singh
are four potential sources of inter organisational competitive advantage they
are relation-specific assets, knowledge-sharing routines, complementary
resources and capabilities and effective governance.The role of community facilitator is the second implication. The
organisations core activity system is not activated by the facilitator but the
facilitator creates and maintains the conditions under which the
organisations survive and grow. The final implication is the anticipation of
future organisational forms to identify the function and characteristics and
plan for their arrival. By exploring the potential and limits of the current
organisational forms, the anticipation of new organisational forms is
approached and the newest form of organising the community-of-firms
model requires to be scanned.
For example, a collaborative community of firms is a powerful means of
producing a wide range of innovative products and services based on a
single technology.
Many organisations are experimenting innovative approaches to structure,
systems, strategy, resource allocation and human resource management
but they have not found a way for the organisations to tackle the turbulence
in the environment. Many forms are evolving as organisations explore to
feasible options to withstand pressures of change. All these have resulted in
the development of new perspectives on management necessitated by a
typical shift in the world of business.
2http://books.google.co.in/books?id=UkHHEXoDJmMC&pg=PA16&dq=implications+for+organisation+de
sign&hl=en&ei=dU-cTM-LA9GxcaqYpMgJ&sa=X&oi=book_result&ct=result&resnum=1&ved=0CDcQ6AEwAA#v=onepage&q&f=false
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The various aspects of organisation that are affected by the emergent
principles of design are shown in the table 14.1:Table 14.1 Emergent Principles of the Organisation Design
Aspects Conventional Principles Emergent Principles
Vision Stable for a longer period Shifts over a shorter time span
Strategy Top down/planned Bottom-up/evolving
Systems Control focused Responsiveness focused
Structure Pre-determined/fixed Emergent/flexible
Culture Strong/monolithic Weak/pluralistic
People Organisation/full-oriented Individual/part-oriented
Due to the uncertainties in the environment and the result of frequent shiftsin technological breakthroughs and market condition the envisioning
process and the articulation of mission requires a shorter time span. To
continuously build the gap between strategies and their execution, the
planned/top down approach is supplemented else it is replaced by bottom-
up approach with active involvement of employees. Thus strategies develop
from the experiences and implicit knowledge of organisation members.
The systems and processes are developed to improve responsiveness to
the changing conditions rather than to regulate and control the behaviour
tightly. The systems are based and guided on principles of self-direction and
self-regulation. The structural forms apart from being fixed with positions
and roles are also allowed to emerge in response to the changing work
demands and stakeholders expectations. The structure has self organising
properties, shared responsibilities and in-built flexibility with interchangeable
roles. The organisations are made to function in multiple socio-cultural
environments with different groups of technology, work practices, standards
and values. Professional, cultural demographic and social ecological
differences necessitate the development of pluralistic culture, essential for
synergising creative potentials required for diversity.
The conventional design was based on the condition that the needs of thepeople should be supportive to the needs of the organisation. The
employees in the organisation should put effort for the welfare of the
organisation. The organisation has a small and limited responsibility to the
human resources. The emergent principle is based on the idea that the most
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valued asset of the organisation is human capital that enables the
organisations to gain and maintain economical advantage. Thus theorganisation should have a strong focus on the welfare of their human
resources in the area of their work, employability, leisure, family and
community on the whole. As a result the major areas of concern for
organisations are that the development of personality and multi-faceted
approach that should satisfy the employees.
Self Assessment Questions
10. To continuously build the gap between strategies and their execution,
the ____________ is supplemented else it is replaced by bottom-up
approach with active involvement of employees.
11. The _____________ was based on the condition that the needs of thepeople should be supportive to the needs of the organisation.
12. The emergent principle is based on the idea that the most valued asset
of the organisation is human capital that enables the organisations to
gain and maintain economical advantage. (True/False)?
Activity 3
Visit an organisation and collect information about principles and
implications of the organisation.
(Hint: emergent principles)
14.5 Managing Change during Turbulent Times
Due to an unhealthy economy, all of us are working in turbulent times and
organisations are under deep pressure, and reacting with aggressive
thriftiness measures such as reducing, restructuring, rescheduling, and
merging with competitors or strategic alliances. They are also closing
unprofitable facilities, moving managers to open work environment from
private offices.
Effective working is very important when few employees are present in an
organisation, it is seen that in the current world only the strongestorganisation survives for a longer period. During the turbulent times the
leaders focus on managing a balance between cost cutting and supporting
the employees to serve in a better way to the organisation.
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The enterprises that emerge from considerable organisational changes are
stronger and more competitive and are more focused on the effectiveness ofthe employee this is done by increasing productivity through teamwork and
collaboration, rising organisational innovation, enforcing responsibility at all
levels, making the workplace to attract, inspire and to retain talent and to
accommodate the needs of multigenerational workforce.
Economic and world events brought unexpected changes inflation,
productivity challenges, technology shifts, and global competition all hit the
business world at about the same time and made the classical planning
methods suddenly outdated. During this time many organisations followed3 Peter duckers suggestions that helped employees managing during
turbulent times and managing the complex work. In the times ofdisorganised changes maintaining productivity is a fundamental necessity of
managers, and it is done for four key resources they are capital, crucial
physical assets, time, and knowledge.
For example, 4 Siemens organisation has successfully beaten their
competition by significantly increasing their productivity of capital or
resources.
Another effective method of managing in turbulent times is strategic
assignment of critical resources. The managers need to be smart about
selecting areas of potential results and allocating resources consequently. Inchaotic times, there is a natural tendency to use resources to solve current
problems, but the top priority should be given to the areas of potential
opportunities. 5Drucker suggested managers to avoid working on problems
that were important in the past and that was not expected to be beneficial in
the future.
3http://books.google.co.in/books?id=vsCeCHxH7jQC&pg=PA148&dq=Managing+Change+during+Turbul
ent+Times&hl=en&ei=2GWcTNyYGcG2ccSC7f4J&sa=X&oi=book_result&ct=result&resnum=8&ved=0CFwQ6AEwBw#v=onepage&q=Managing%20Change%20during%20Turbulent%20Times&f=false4http://books.google.co.in/books?id=vsCeCHxH7jQC&pg=PA148&dq=Managing+Change+during+Turbul
ent+Times&hl=en&ei=2GWcTNyYGcG2ccSC7f4J&sa=X&oi=book_result&ct=result&resnum=8&ved=0CFwQ6AEwBw#v=onepage&q=Managing%20Change%20during%20Turbulent%20Times&f=false5http://books.google.co.in/books?id=vsCeCHxH7jQC&pg=PA148&dq=Managing+Change+during+Turbul
ent+Times&hl=en&ei=2GWcTNyYGcG2ccSC7f4J&sa=X&oi=book_result&ct=result&resnum=8&ved=0CFwQ6AEwBw#v=onepage&q=Managing%20Change%20during%20Turbulent%20Times&f=false
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An exit strategy is essential to be developed so that resources are allocated
to areas with the highest probability of future achievements and success forthe organisation.
For example, the 6organisation GE followed a critical activity called work out
program and was successful. This activity was designed to eliminate work
that did not meet the strategic needs of the organisation. This activity was
suggested by Drucker in the past.
Stimulating innovation during managing change is a critical managerial
competence essential in turbulent times. The most challenging task for
managers is to respond effectively to the task that cannot be planned in
advance to the time. This circumstance is more complicated, when its
function is in global business environment. The leaders or the managers
should be prepared to lead this environment of multidimensional changes
and organise their organisations to function effectively during the
transformations of their organisational culture.
Setting clear expectations
To manage the change in the organisation effectively setting clear
expectation or goals are necessary with in the organisation. The
organisation should provide clarity about the most critical elements of the
change by explicitly bringing out the implications and expectations for the
employees. Reducing uncertainty increases morale and decreasesdistracting emotions of the employees. To Select and postpone the
nonessential projects, and to recognise the importance of making symbolic
changes and to increase or decrease the unrestricted responsibilities in
order to accomplish the heavy lifting associated with major change.
It is important to focus on employees to do the work that is required and it is
essential for the organisation to be clear about the employees needs and to
ensure that the needs of the employees are satisfied. The managers set
their expectations and follow them.
The managers or the leaders should:
Demonstrate strong ethics.
Ensure confidentiality in the organisation.
6http://books.google.co.in/books?id=vsCeCHxH7jQC&pg=PA148&dq=Managing+Change+during+Turbul
ent+Times&hl=en&ei=2GWcTNyYGcG2ccSC7f4J&sa=X&oi=book_result&ct=result&resnum=8&ved=0CFwQ6AEwBw#v=onepage&q=Managing%20Change%20during%20Turbulent%20Times&f=false
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Show empathy for the emotional and personal effects of change and be
available and listen to the employees concerns. Ensure the communication of key event and activities, that is to provide
details on who, what, when, and where as known.
Programme regular updates for all team members in the organisation.
Communicate the decisions and justify and to recognise that individual
have various communication needs.
Manage the change and undertake the obstacles to bring effective
change in the organisation.
Focus on delivering value in running and changing the business.
Stick to fated timelines and processes and act according to the
agreements.
Self Assessment Questions
13. During the turbulent times the leaders focus on managing a balance
between ___________ and supporting the employees to serve in a
better way to the organisation.
14. Another effective method of managing in turbulent times is __________
of critical resources.
15. To manage the change in the organisation effectively setting clear
expectation or goals are necessary with in the organisation
(True/False)?
Activity 4
Suppose you are a manager of an organisation, how do you mange the
change during turbulent times and what steps do you follow to set the
expectations right.
(Hint: Effective working and set expectations)
14.6 Strengthen Relationship and Maintain Lines of
Communication
Many employees feel demoralised and disconnected at turbulent times, so itis essential to strengthen the bonds across the organisation and mostly
within teams of the organisation. The organisation leader or manager should
interact with the employees and must support them in a group and
individually. All these actions are easy to neglect or optional, but they
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support and help employees and make the employees to be as cohesive
and loyal to the organisation. Even if the organisation is facing difficulty ordrowning, ensure to communicate with the employees the possibilities for
growth and personal development this should be followed even if the days
of the organisation are numbered. Involve the employees in discussions
about building the future, balancing reality with confidence.
To determine the confidence and commitment in the change effort, regular
pulse checks of the team and the organisation is established. This is done
formally through surveys or informally through casual conversations and
meetings. These checks recognise concerns faster and are addressed
rapidly and effectively. The feedbacks are often very useful in helping to
shape both business and change-management activities and ensure thatthe surveys are not thrashed completely.
Employees or people in the organisation look for information and leadership
during uncertainty or turbulent times, and the need increases exponentially
at the time of the change effort. Within a sequence of space
misunderstanding within the organisation is possible, its important to reach
the employees repeatedly through any and all means such as town hall
events, meetings, lunches, e-mails, newsletters, web casts, and blogs.
Effective leaders are highly visible in both formal and informal ways.
It is noticed that managing change requires an ongoing focus has newevents occur and due to the change progresses people who have initially
accepted the new direction revert. When ensuring accountability for results,
the managers or leaders recognise and address the emotional dimensions
of change and truly transform their organisations and win assurance of their
employees during the turbulent times.
Self Assessment Questions
16. Many employees feel demoralised and disconnected at ________, so it
is essential to strengthen the bonds across the organisation and mostly
within teams of the organisation.
17. Do not involve the employees in discussions about building the future,balancing reality with confidence. (True/False)
18. The feedbacks are often very useful in helping to shape both business
and change-management activities. (True/False)
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14.8 Glossary
Term Description
Contextual factors The factors of the context.
Disruptive innovation The terms used in the business and technology todescribe innovations and to improve the service in theway the organisation wants.
Knowledge workers The individuals who are valued for their ability to act andcommunicate with knowledge within a specific subjectarea.
Mechanistic-hierarchical structure
A mechanically determined structure having datearranged in many levels like a tree structure form.
Mainstream market The majority of customers in the technology market orproduct.
14.9 Terminal Questions
1. Discuss the major trends affecting the organisation design.
2. Explain briefly any five contextual factors that are affecting the conduct
of the Business.
3. Discuss the implications of organisation design.
4. Explain in brief about managing change during turbulent times and
setting clear expectations.
5. Discuss in brief how to strengthen relationship and maintain lines ofcommunication in an organisation during turbulent times.
14.10 Answers
Answers to Self Assessment Questions:
1. Organisation design
2. True
3. False
4. True
5. True
6. True
7. Creative destruction
8. Disruptive Innovation
9. False
10. Planned/top down approach
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11. Conventional design
12. True13. Cost cutting
14. Strategic assignment
15. True
16. Turbulent times
17. False
18. True
Answers to Terminal Questions:
1. Refer section 14.2 Trends affecting Organisation Design.
2. Refer section 14.3 Major Contextual Factors Affecting the Conduct of
the Business.
3. Refer section 14.4 Implications for Organisation Design.
4. Refer section 14.5 and 14.5.1 Managing Change during Turbulent
Times and Setting clear Expectations.
5. Refer section 14.6 Strengthen Relationship and Maintain Lines of
Communication.
14.11 Case Study
Managing change during turbulent times at XYZ:
A XYZ financial services player with more then 20,000 advisors and 2.5
million clients across the world, requested Sys-Indy organisation to support
in a program aimed at institutionalising service management capability
based on ITIL. The main aim was to improve the availability and
performance of its IT systems during turbulent times and to increase the
overall client satisfaction.
Sys-Indy conducted an assessment across the technology groups to
identify the existing process maturity and improvement opportunities. As
part of the program, detailed roadmaps and communication plans were
developed, training were conducted and detailed cost benefit analyses was
carried out for executing the initiatives.
The initiatives have been prioritised were executed within each process
area, Sys- Indy assisted the program management and execution. This
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service management was very challenging but the transformation had
begun and the client made significant progress, with savings ofRs 9,950,000 within the first eight months.
Questions
1. During the turbulent times what was the main goal of XYZ Financial
services?
(Hint: performance)
2. What was the first step taken by the Sys-Indy to achieve progress and
did it satisfy the client?
(Hint: assessment and program management)
References
Radha R Sharma (2007), Change management - Concepts and
Applications.
E-Reference
http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1074411173&
type=RESOURCES
http://www.allbusiness.com/management/689725-1.html
http://books.google.co.in/books?id=vsCeCHxH7jQC&pg=PA148&dq=Ma
naging+Change+during+Turbulent+Times&hl=en&ei=2GWcTNyYGcG2c
cSC7f4J&sa=X&oi=book_result&ct=result&resnum=8&ved=0CFwQ6AE
wBw#v=onepage&q=Managing%20Change%20during%20Turbulent%2
0Times&f=false
http://books.google.co.in/books?id=vsCeCHxH7jQC&pg=PA148&dq=Ma
naging+Change+during+Turbulent+Times&hl=en&ei=2GWcTNyYGcG2c
cSC7f4J&sa=X&oi=book_result&ct=result&resnum=8&ved=0CFwQ6AE
wBw#v=onepage&q=Managing%20Change%20during%20Turbulent%2
0Times&f=false
http://books.google.co.in/books?id=vsCeCHxH7jQC&pg=PA148&dq=Ma
naging+Change+during+Turbulent+Times&hl=en&ei=2GWcTNyYGcG2ccSC7f4J&sa=X&oi=book_result&ct=result&resnum=8&ved=0CFwQ6AE
wBw#v=onepage&q=Managing%20Change%20during%20Turbulent%2
0Times&f=false