Assignment on Change Management

8/2/2019 Assignment on Change Management

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Assignment on ChangeManagement

Submitted ByAnindita Buragohain

M.A. Human Resource Management, FourthSemester

Department of Social WorkJamia Millia Islamia

Submitted To:

RR Patil

Department of Social WorkJamia Millia Islamia


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CHANGE MANAGEMENT-A BRIEF DESCRIPTION

Selecting and implementing significant change is one of the most challenging undertakings that

faces an organization. If the change involves the entire organization and also requires new

paradigms that will replace established ways of doing business the challenge is daunting.

Research shows that the success rate for implementing major organizational change is quite low,

for several reasons. First, asking organizations to change the way they conduct their business is

similar to asking individuals to change their lifestyle. It can be done but only with the greatest

determination, discipline, persistence, commitment and a clear plan for implementing the

change.

Second, resistance to change is a natural human phenomenon. All people resist change, some

more than others. Managing that resistance is an essential part of the process.

Third, change creates uncertainty. Organizations generally achieve fairly predictable results with

their existing business model. Their outcomes may not be the desired results, but they are

predictable. Change is unpredictable. The results may be far better but they may also be far

worse. And success often looks and feels like failure until the change is very nearly completed.

Staying the course of implementing a change which is essential for its success meets with

continuing human and organizational resistance and pressure to pull the plug before the process

is completed.

The Change Management Methodology

Step One - Confirming the Compelling Need to Change

It is not uncommon for the process to begin with significant discussion about whether broad-

based systemic change is needed, or whether smaller incremental improvements will do the job.

This often requires some external data (market share, competitive information, etc.) as well as

objective internal data (how long does it take to complete projects vs. plan; are costs per unit


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increasing or decreasing; is our organization getting better at what it does; is competitive

positioning weakening, etc.).

Step Two - Identifying the Boundary Conditions

Boundary conditions define the limits (or playground) within which change might be

considered. When senior teams begin their discussion some large topics usually emerge very

quickly. Issues such as mergers, acquisitions, international or global initiatives, large capital

investments, strategic alliance partners, equity situations, private vs. public ownership, etc. maybe debated.

Step Three - Creating the Vision of the Desired End State

A group of people aligned around a common vision are a very powerful force. John Kennedys

vision of "put a man on the moon by the end of the decade" spurred NASA to unprecedented

performance. Martin Luther Kings vision in his "I have a dream" speech energized the civil

rights movement. Jack Welchs vision for GE in which he said that "We will be number one or

number two in every category or we wont be in it" drove incredible energy and focus through

GE. The vision of Mercedes Benz to "always make the best engineered car in the world" has

been the hallmark of its focus for decades.

Step Four - Developing the Core Work Processes

The mention of work processes typically creates mixed reactions. Everyone agrees that some

degree of process is required. Without defined processes a company would not be able to

produce a consistent payroll. It would not be able to hire people. It would not have any

consistent methodologies for its work. It could never assure any consistency or reliability.

The problem for most cross-functional work processes is in the hand-offs. When processes cut

across functions there are typically miscues and conflicting expectations or requirements

between functional groups. Most companies have only a few core processes about five that

drive their entire business. Everything else is an enabler. These core processes are virtually

always cross-functional. Therefore, they must be developed by the entire senior management


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team together. And that is the next step of the process of creating breakthrough change. Once

these major cross-functional processes are developed at a fairly high level they can then be

handed down to the next levels of the organization for more detailed implementation. One

member of the senior management team must then be designated as the owner of the entire

process throughout the organization.

This step typically surfaces the strongest points of contention in the entire breakthrough change

process. If this step is addressed seriously, issues of organizational structure begin to resolve

themselves. After all, the structure should be designed to support how the work gets done. Form

follows function.

Step Five - Defining Key Roles and Responsibilities

Every company has a relatively small number of key roles that are central to its business. There

are usually a number of people who perform these roles, and they are the linking pins for one or

several core processes. Some examples of such key roles are: project director, lead engineer,

national account manager, customer service representative, senior consultant, systems engineer,

account executive, etc.

The next step is to identify the few key roles in the organization that are central to how the

companys work gets done and then for the senior team collectively to define them.


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Step Six - Modifying the Organizational Structure

Most changes begin with a modification of the organizational structure. Unfortunately, most

changes end there as well which is precisely why most large scale change is unsuccessful. Step

six represents the point where examining and possibly modifying the organizational structure is

both appropriate and necessary.

Structure should exist to support what an organization is trying to accomplish (vision and

strategy); how it is trying to do it (core work processes) and the requirements people have fortheir work (key roles). Now that these have been identified, the structure should be reviewed

and, if necessary, re-designed.

The fundamental question is: Does the existing structure enhance or at least not interfere with

how the work needs to get done? If the structure is helpful or neutral, the general guideline is to

leave it alone. Structural changes are very disruptive. They should only be made if they are truly

necessary.

If the structure is a barrier to the work that needs to be done, then it should quickly be re-aligned

to meet its new requirements. This analysis and re-design should be a collaborative effort by the

senior team. If individual team members cannot "check their positions and their egos at the

door" then it may be necessary for the President to impose the new organization. This step

should be reviewed and implemented quickly, in its entirety, based on what best serves the

needs of the whole organization. This is not the time to allow the "right of infinite refusal" to

stall the change process.

Step Seven - Establishing the Key Performance Measures

Every organization measures its performance. Unfortunately, most organizational measures have

two fundamental flaws. First, there is a disproportional emphasis on financial measures.

Financial measures are not direct performance measures. They are the consequences of company

performance achieved or not achieved. By themselves, they indicate very little. Second, most

performance measures cause the company to look through its rear view mirror. These measures


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indicate past performance and do little to help guide future performance or have a positive

impact on organizational results.

This next step calls for the creation of a balanced scoreboard or dashboard of the key

internal and external measures that provide a comprehensive view of the organizations

performance, with as much insight as possible regarding their implications for the future.

At the completion of this process by the senior management team you should have a limited set

of defined measures that provide a balanced understanding of current performance, guidelines

for improving short-term results, and the ability to assess and improve long-term organizational

performance.

Step Eight - Reviewing System-Wide Tools

Tools are powerful forces in defining how an organization behaves. An enterprise-wide tool can

be one of the most dramatic vehicles to create (or force) organizational change.

Enterprise software systems have become very powerful forces for driving organizational

behavior, and potentially creating highly value increased productivity. Such tools require an

organization to define how it conducts its business, and impose a discipline on all individuals

and functional areas to conform to the standards and processes defined by the tools. However, if

the tool is not sufficiently flexible or does not match how business is actually conducted, the

effect will be disastrous. Tools that impose their way of working in conflict with established

business norms or practices will be strongly resisted.

Step Nine - Develop Training that Enables Performance

Training is an integral part of organizational design and behavior. It is essential to ensure that

individuals have the knowledge and skills to perform in their current jobs and prepare for new

ones.

Training is also perceived by employees as a measure of the organizations commitment to

them. In the current marketplace employees are encouraged to think of themselves as

independent contractors selling their services for the best opportunity. Training (as a part of

continuous learning) is an essential ingredient for retaining a nimble workforce.


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Training is one of the most powerful vehicles for a company to create breakthrough change. It

can achieve three simultaneous results. First, it builds alignment to the desired change. Second,

it provides individuals with the knowledge and skills to implement the change. Third, it creates

the opportunity for cross-functional communication in the implementation of company-wide

initiatives.

Step Ten Aligning the Reward Systems

Traditionally reward systems have been approached conservatively in the form of salaries for

professional employees, and hourly wages for non-exempt employees. In some companies

annual bonuses or profit-sharing programs have been added, tied to organizational performance

for that year.

Companies have now started to use more sensitive vehicles to align reward systems to

individual, team and organizational performance. Commissions for a sales force have long been

in place. More recently, defined bonuses for the achievement of individual quarterly goals has

become fairly widespread. Team rewards tied to specific project completion has also become

common. Annual bonuses based on the achievement of specific performance goals is becoming

the new norm.

Though the techniques may differ, two dominant themes emerge. The first is the trend toward

broad band job classification, providing much more flexibility in establishing individual

compensation. The second is a much higher degree of at risk compensation tied to individual,

team and organizational performance.

If possible, reward systems should to be tied to the desired breakthrough change. Employeeswill pay great attention to adjustments in the reward system, especially if it is modified to focus

on the desired behaviors and effects of the breakthrough changes.


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POWERGRID, in line with its mandate, is discharging its responsibilities efficiently in

Construction and Operation & Maintenance of inter-State transmission system and operation of

Regional Power Grids. It has been notified as the Central Transmission Utility (CTU) of the

country. Based on its impeccable performance in a short span of time, POWERGRID was

recognized as the Miniratna CategoryI PSU by GoI w.e.f. Oct98. POWERGRID achieved

many milestones & established benchmarks in various areas of its business operations and is

playing a strategic role in Indian Power Sector in establishing & maintaining transmission

infrastructure. Recognising POWERGRIDs sterling performance, Government of Indiaconferred the status of Navratna to POWERGRID w.e.f 1st May, 2008.

POWERGRID has planned to create a strong and vibrant National Grid in the country in a

phased manner to ensure optimum utilization of generating resources, conservation of eco-

sensitive right of way and for having flexibility to accommodate uncertainty of generation plans.

Towards this, a perspective transmission plan has been evolved for strengthening the regional

grids and to support the generation capacity addition program of about 78,000 MW during XI

Plan. A framework for inter-regional interconnection has been evolved to establish National

Grid in a phased manner. In line with the perspective plan, various inter-regional transmission

schemes have been commissioned/ undertaken for implementation/ planned by POWERGRID.

Inter-regional power transfer capacity of National Grid has been enhanced to about 17,000 MW

in FY 2007-08. Four major power regions of the country namely, North-Eastern, Eastern,

Western and Northern are now operating as one synchronous grid (same frequency). Southern

Regional grid is connected to this synchronous grid through HVDC links.


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In the last couple of years Southern Regional Grid(the southern region of POWERGRID

CORPORATION OF INDIA LIMITED) has undergone steadfast changes in terms of

quantity and quality of power supply and remarkable improvement has been achieved on

the system security and stability front. The stable system operation in the region made it

possible for the RLDC and SLDC operators not only to pay more attention on the

important issues like voltage and frequency control, but also to concentrate on means of

energy conservation by way of optimization of power transfer through parallel paths and

reduction of transmission losses. This Paper aims at discussing the specific problems that

SR grid was experiencing earlier, brief details of the cardinal events which were mainly

responsible for bringing about the improvements and the specific actions taken by theload dispatchers for improving system voltages and reducing the transmission losses in

order to achieve energy conservation in the grid.

Southern Regional Grid is a large power system comprising of more than 32000 MW

installed capacity covering approximately 651000 sq.km. area. The major bulk power

consumers of Southern Region (SR) are the States of Andhra Pradesh, Karnataka, Kerala, Tamil

Nadu and Union Territory of Pondicherry which are interconnected mainly through 400 kV

network and a few 220 kV inter-State lines. In SR, the two major Central Generating Stations

connected to the 400 kV grid are Ramagundam STPS (2600 MW in Andhra Pradesh) and

Neyveli Thermal Power Station (2490 MW in Tamil Nadu), located in the northern and southern

parts of SR. Two Nuclear Power Stations of 440 MW each are located at Kalpakkam (Tamil

Nadu) and Kaiga (Karnataka) of SR. The Thermal-Hydro mix in the SR is in the ratio of 67:33

and currently the SR grids peak demand is in the range of around 22500 MW. A large

component of the load in SR is predominantly agricultural in nature. The HVDC Transmission

Capacity of SR with Eastern Region (ER) through the HVDC Gajuwaka back-to-back is 1000

MW and through Talcher-Kolar bi-pole is 2000 MW. Similarly the capacity with Western

Region (WR) through Chandrapur back-to-back is 1000 MW.


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SR GRID TYPICAL ISSUES IN THE PAST

In the past, for most of the time the Southern Regional grid used to operate at

precariously low frequency at 48 Hz. and around. The system voltages also used to operate

at very low levels leading to severe insecurity

in the grid operation. The load centres like

Bangalore used to experience the voltages at

400 kV bus as low as 300 kV and some of the

main tie lines in the Region used to get over

loaded, dropping the system voltages and

causing high losses in the grid.

The instability caused due to the low

frequency and low voltage operation very frequently used to trigger grid contingencies very

frequently resulting into system separation and grid disturbances. This insecure and

unstable grid operation caused not only immense financial loss to the industry but also the

inefficient operation of the electrical equipment leading to increased electrical losses. Thus

in the past, as depicted in Fig. 1.0, for most of the time, the grid operators used to focus on

fire fighting rather than optimization and economy and the end result being costly and low

quality power supplied to the consumer.

Fig. 1.0 - Typical issues of Grid

operation

2.0 SR GRID OPERATION PRESENT STATUS

The present system operation in SR has

seen dramatic turn around, particularly after the

implementation of commercial schemes under

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ABT, Transmission augmentation, Generation capacity addition and state-of-the-art ULDC

scheme. Fig. 2.0 shows the typical frequency duration curves of SR for the years 2002,

2003 and 2004 and from this, it is very clear that the frequency profile in Southern Region

has improved over the period phenomenally.

Fig. 2.0 - Frequency

duration curve - SR

The voltages in the Region also have

been lifted to the permissible band. Fig. 3.0

shows improvement in Bangalore Voltage by

comparing the voltage trend for a typical day

during the years 2002, 2003 and 2004. This

improvement had not only provided quality of

power to the consumers but also reduced the

electrical losses in the various electrical applications and in the industries. In addition to

improvement in the frequency and voltages, to a large extent the follow-up of the merit

order operation in SR has also resulted in reduction in the overall net cost to the end

consumer.

CARDINAL EVENTS

The dramatic change in the system operation in SR was mainly made possible by

the following cardinal events in the last two-three years:

1.Implementation of new scientific commercial mechanism, i.e. ABT not only brought

merit order operation but also grid discipline, thereby giving quality supply to the

consumers.

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TIME IN HRS --->

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WORKSIMPROVED!

COMPARISION OF BANGALORE VOLTAGE -TYPICAL DAY

VOLTAGE PROFILE MEANS LESS

ELECTRICAL LOSSES

BETTER


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2.There was remarkable system strengthening of the transmission network, most notably

with the commissioning of the Talcher-Kolar HVDC link and its associated 400 kV AC

lines.

3.Substantial generation capacity addition took place with the commissioning of Talcher

STPP Stage II which was embedded in ER but dedicated entirely to SR beneficiaries. The

capacity addition of Neyveli TPS-I expansion, STCMS, Simhadri TPS, Ramagundam

expansion and Almatti, etc. also gave rise to considerable growth in the capacity.

4.The state-of-the-art technology, Unified scheme for Load Despatch and Communication

in SR increased the visibility of the complete grid to the operators. Apart from assisting in

real time operation, the ULDC scheme also helped the system operator to carry out on-line

as well as off-line load flow studies to assess the losses and other critical parameters like

line loading, frequency and voltage, etc. under different operating conditions and take

corrective actions as and when required.

5.With the reforms taking place all over the country, the State power utilities started

focusing more on commercial priorities and in the process took various measures like (a)

shifting their loads for flattening load curves, (b) managing the hydro resources optimally

and (c) utilizing pumped hydro wherever available.

6.RLDC had effected the grid management not only through operational means but also

through systematic, reliable and timely implementation of the commercial settlement

system, i.e. ABT.

CONCLUSION


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The power sector in India is undergoing radical changes and from the era of

shortages/load interruptions, we are moving fast towards adequacy and quality supply. This

has been made possible mainly due to reforms at all possible levels of power sector, viz.

accelerated expansion in generation, transmission and distribution; restructuring of different

organizations/utilities with the ultimate goal of making them self sustaining and objective

oriented; changes in the legislations to bring in efficiency and economy; implementing a

scientific and rationalized commercial mechanism which is specially designed to suit the

conditions of Indian grid and encouraging the era of transparency and competition. If we

look into the changes in the system parameters and other grid related indices it would be

evidently clear that Southern Regional Grid as a whole as well as all the constituents of the

Region have been immensely benefited due to the fact that most of the players of the grid

have responded towards the change favourably.The implementation of similar mechanism

and economics at intra-state level will further optimize the utilization of resources and

energy conservation.

Assignment on Change Management

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