Organizational Change 25

LEARNING OBJECTIVES

After studying this chapter, you will be able to:1.Define the sequential process of organizational change

2.Identify the main roles in change management

3.Elaborate the dynamics of the implementation of change in organizations

4.Suggest ways of ensuring effective implementation

5.Explain the phenomenon of resistance to change and suggest ways of dealing with it

Organizational change is a complex phenomenon and has several dimensions. We shall take up a few critical ones in this chapter, namely, the sequential process, the main roles in change, the dynamics of implementation, and resistance to change.There have been several models of the process of organizational change. All these models envisage change as a continuous process involving several stages. Eight stages are identified and detailed here:1.Initiation Initiation is the stage for the vocalization of the need to change. Organizational change starts when someone at the level of the corporate management, where the concern for a certain dimension of organizational functioning is shared and discussed, takes the initiative of proposing that something has to be done. The idea is mooted at the level of the corporate management, either being based on observations or recommen dations from some other level of the organization or being a result of discussion at the corporate management level. This usually leads to the hiring of a consultant or discussion with the appropriate set of people within the organization.2.Motivation Motivation is the stage where people are involved in detailed consideration of the proposed change. At this stage, both the corporate management and the expert who helps with organizational change takes the necessary steps to involve a large section of the organization in thinking about the various dimensions of the change.

468 The Organization3.Diagnosis Diagnosis is the attempt to search for the main cause underlying the symptoms encountered.4.Information collection At this stage, detailed information is collected about the dimension indicated by the diagnosis and alternative approaches are developed in relation to the problems or issues.5.Deliberation The deliberation stage is concerned with evaluating various alternatives generated for dealing with the problem or the issues related to the change.

6.Action proposal This is the stage for framing a proposal in relation to the problems or issues identified.

7.Implementation Implementation is concerned with translating the proposed ideas into action.8.Stabilization Stabilization is the stage of internalizing the change and making it a part of the organization's normal life.It may be useful to pay attention to the details of these processes as reflected in the various stages of change in the beginning. This makes it possible to pay less attention to the process as organizational change proceeds further and reserve more attention for the main task of implementing change.

THE MAIN ROLES Several roles are involved in organizational change and these can help ensure a smooth and speedy transition. These include both internal and external roles. Organizational change is a collaborative effort in which several roles and individuals are involved. Various roles perform various functions. They make their specific contributions to the design and implementation of organiz-ational change. The six main roles are discussed below in this connection.The Corporate ManagementThe corporate management includes the chief executive and several top executives who are involved in making policy decisions. The following are the main functions of the corporate management in relation to organizational change:The legitimizing function The corporate management legitimizes the change being planned, recommended, and implemented. The more actively the corporate management promotes the change, the more legitimate it becomes and the quicker it is likely to be accepted. If the corporate management does not clearly indicate its interest in and support for the

Organizational Change 469change, the implementation is likely to be slowed down. Concern on the part of the corporate management and the visibility of such concern are very important for smooth organizational change.The energizing function Organizational change is a very difficult process. It may be slowed down at several stages. Often, enthusiasm flags. Sometimes difficulties arising in the natural course of the process may discourage members of the organization, who may find it difficult to deal with problems and prefer to take the course of least resistance by reverting to older methods or ways of management. The role of the corporate management is crucial at such critical points. The management revives the slackening pace and interest by taking up problems for discussion and by showing concern.The gate-keeping function The corporate management helps in establishing a relationship between the consultants and the various groups in the organization. This is usually done by calling meetings in which the purpose of the change is explained and the consultants are invited into the organization.The Consultant(s)A consultant or a team of consultants usually comes from outside to help with the change, but they can also be insiders. The consultants' role is that of experts who have both knowledge and experience in the field in which change is proposed. There are some advantages in having outside consultants for some time. Internal members, even if they have the necessary expertise, are likely to be biased by their own perceptions of the problem. Also, they may be restrained by internal dynamics. This may make them less effective. Therefore, even organizations with high-quality expertise in a particular field initially invite outside consultants. The following functions are performed by the consultant(s):The implanting function The consultant does not supplant available internal expertise but supplements and implants such expertise. It is necessary that the consultant carries the various people along with him or her during the different stages of organizational change. Then the consultant is able to make change a part of the organization.The transcending function One great advantage of having an external consultant is that he or she is not bound by the constraints governing members of the organization. He or she takes an independent overall view. The consultant transcends both the ecology of the organizationthat is, the various units and departmentsto be able to take this overall view of the organization as well as transcending time and the people not yet attuned to the future of the organization. This transcending function makes the role of the consultant more creative. He or she thinks about the organization as a

470 The Organizationwholenot only as it is now but as it is likely to be in the future. This helps to give a wider perspective to the organizational understanding of the change.The function of generating alternatives The consultant is not there as much to work out a specific solution as to help the organization develop the capability of evolving solutions. The consultant does this by generating several alternatives, out of which the organization can choose one or two. The more the consultant generates and helps to generate various alternatives, the more creative and useful his or her role becomes and the more the organization develops the ability to design interventions and ways of solving problems on its own.The process-facilitating function The consultant is primarily a process facilitator. He or she has to be perceptive of the reality in the organization. There is no ideal or best solution. Even if one solution is technically the best, a consultant may see the repercussions of the solution and wish to make the necessary modifications to suit the situation. The consultant also helps in developing various roles as the programme of change proceeds and change begins to be implemented. The process-facilitating role helps the consultant to move towards self-liquidation. He or she also helps the relevant people in the organization to take over the role of consultant when the programme is being implemented.The shock absorbing function During the planning of change and making of necessary recommendations, much unpleasant feedback may have to be given to the organization. It is sometimes difficult for internal people to do so. They cannot take the risk necessary to make certain things explicit. An external consultant can take such a risk. He or she can afford to absorb the shock created by the change and help the system to confront reality and discuss certain processes, which may be quite unpleasant but without which it may not be possible to move towards the solution.The resource-sharing function The consultant brings with his or her background the latest knowledge and a wide variety of experience, which he or she uses in making organizational change effective. The consultant collects these resources and shares them with internal members so that the knowledge can be utilized for making the change effective.The resource-building function The consultant helps in generating resources within the organization by building the necessary expertise as he or she works with the organization. This does not mean that the consultant makes people dependent on him or her. By sharing his or her knowledge and experience and by continuously discussing issues with the concerned people, he or she helps in building internal resources.

Organizational Change 471The self-liquidating function By building internal expertise and resources, the consultant is working towards withdrawal from the organization and liquidating his or her role and indispensability. In many cases, the consultant enjoys the influencing function so much that he or she may continue to play this role in the organization. This is bad both for the organization and the consultant. The consultant must hence deliberately refrain from using undue influence on internal executive decisions.As the work of the organizational change draws to a close, he or she takes definite and deliberate steps to withdraw and wean the organization off depending on him or her. The self-liquidating function is very difficult to carry out. Once a consultant is successful and effective, he or she faces the temptation to continue to influence organizational decisions. If the consultant is not perceptive enough, in his eagerness to be helpful, he or she may make the organization dependent on him or her. If he or she enjoys this dependency, the results may be bad for the organization as well as for the consultant.The organization should have the capacity to assimilate the influence and expertise of the outside consultant; necessary preparations should be made to make use of the consultant in the organization. It is important that continuous communication is maintained with the consultant at all the stages of the process of change.The CounterpartEven if the expert is from outside, some people from the organization must work with him or her. They represent the same expertise the consultant has or, at least, they propose to develop that expertise. This role we shall call the counterpart role. This may already exist in an organization or may be created. For example, if a new management information system is to be introduced, people with technical experience and expertise need to be involved. If such expertise does not exist in the organization, new people may have to be recruited.The counterpart helps in implementing the policies and activities worked out and accepted and in stabilizing these in the organization. It is only through the counterpart that the change becomes a part of the organization. Several issues need to be explored in relation to the counterpart: whether the counterpart should be an independent individual or group; whedier members from different groups constitute a team which functions as the counterpart; how to legitimize the counterpart role in the system; the length of time required for the counterpart to develop the necessary expertise, etc. In many cases, jealousy develops when the counterpart becomes successful and effective. His or her success may produce some threat to other members of the organization, leading to various prejudices and jealousies. All such issues require careful attention and proper handling.

472 The OrganizationThe Implementation TeamThe implementation team consists of a group of people from various departments or areas of the organization who have been given the responsibility for monitoring, deliberating on, and making recommendations on the programme from time to time. The team must ensure proper motivation of people throughout the organization and take steps to ensure effective implementation. The following are the main functions of the implementation team.The collaboration-building function The implementation team helps to build collaboration amongst various sections and departments of the organization. It should therefore be a cohesive team, every member having respect for the others and collectively evolving a consensus in spite of differences in views. An effective team is one which has a representation from various kinds of expertise and diverse experiences relevant for the change. Yet people in this team must be prepared to listen to each other and take collective decisions which are not necessarily unanimous or even endorsed by the majority although consensus is developed.The gate-keeping function The implementation team helps keep the communication channels between those who are planning and implementing change and the rest of the organization open. This is done by developing a liaison between all the various departments and sections of the organization. Since the team has representatives from these departments and sections, it is able to convey various matters to the departments and raise various questions there. Similarly, it receives feedback from the departments for discussion with the implementation team in its entirety.The reviewing function The implementation team reviews the progress of the change programme from time to time and makes the necessary adjustments so that the implementation is efficient. The reviewing function involves both stock-taking as well as making the necessary modifications so that implementation is not hampered.Policy-formulating function The implementation team makes recommendations and formulates policies in the light of the review to ensure that the programme of change is both effective and smooth. This helps in making the programme more realistic.The Chief ImplementerOrganizational change need not be implemented by those who are working in one particular area. In fact, it is much better to make such implementation independent of functional responsibility in an organization. The chief implementer is usually the chairperson of the implementation team. But his

Organizational Change 473or her responsibility is not confined only to discussing the problems and making recommendations. The chief implementer takes the responsibility of monitoring the programme and ensuring proper implementation. The main difference between the role of the chief implementer and the implementation team is that a group can never take on executive responsibility. This can be taken on only by an individual. However, the group can help the chief implementer to perform his or her function more effectively in several ways. The following are the main functions of this role:The monitoring function The chief implementer monitors the programme of change. He or she has to be a tough person, a go-getter, in order to relentlessly keep the programme on schedule. He or she ensures that the programme design and the time schedule are followed.The diagnostic function The chief implementer reviews the programme from time to time to find out whether anything is preventing its smooth functioning and progress. This is the diagnostic function of the chief implementer. He or she collects the necessary information through specially designed questionnaires or interviews and uses these to discuss the need to either modify the programme or provide additional input for its proper progress with the implementation team.The executive function The chief implementer has the responsibility of implementing the programme. This is an executive function. It involves not only making recommendations but ensuring that action is taken on whatever has been decided. He or she thus mobilizes the necessary resources and works on the implementation of the programme.The chief implementer should be systematic in his or her approach and should concern himself or herself with systematic planning, going into the details of the various steps planned. At the same time, he or she should be flexible. If the individual has strong views and ideas and so finds it difficult to accept others' points of view, he or she would not make a good implementer.The chief implementer needs to be creative and imaginative. He or she will come across several problems and have to find solutions for them. He or she should search for various ways of dealing with problems, sometimes unconventional ones. He or she should also be resourceful and should be known for the ability to implement and for concern for the organization and the people.Task ForcesTask forces are set up for specific purposesto prepare material, collect information, generate ideas, and take on a specific responsibility, which is

474 The Organizationtime-bound. Many task forces get dissolved as soon as their particular task is over. Task forces make use of the various kinds of expertise and skills available in the organization.The relationship between these roles and their involvement in organizational change is presented in Exhibit 25.1. As the exhibit shows, all the roles contribute to the process and to the task. For example, the corporate management and the consultant are primarily contributing to the process: their major function is to facilitate the process so that the necessary movement towards organizational change is possible. The counterparts also contribute to the process, although they experience increasing preoccupation with the task. The maximum concern for and involvement in the task is that of the task forces and implementation team. The chief implementer of the organizational change is certainly involved in the achievement of the task; he or she i? also involved in smoothening the process.Every role is concerned, to some degree, with the process as well as with the task. However, there are differences in terms of relative emphasis: some roles are primarily involved in the process while others are involved in the task. It would, for example, be dysfunctional if the chief executive or the corporate management were concerned directly with the task. Similarly, the focus of the external consultant may be on developing the necessary understanding of the process through diagnosis and preparation of recommendations but his or her involvement in implementation of the task may not be useful. This does not mean that the corporate management and the consultants are indifferent to the task or the implementation of recommendations. They are not directly involved in taking action nor do they take the primary responsibility for implementation but they do provide the necessary climate and support.Exhibit 25.1 also indicates the relative involvement of the different roles in process or in task that is likely to make them effective at different stages of the change process.In the initial phases, the involvement required with the process is much greater than that in the subsequent phases when, gradually, greater involvement in the task may become possible. When the process of change has begun, all the roles concerned with it should pay more attention to processes. If this is properly done, task performance becomes easier. Towards the end, all roles can pay attention to the task. The exhibit also indicates that, even towards the end, the top management has to be concerned with the process, though the intensity and the time spent will be less. As a matter of fact, the involvement of the top management will always be predominantly with the process whereas the task force(s) would need to pay attention mainly to the emergent tasks.

Organizational Change 475Exhibit 25.1 Key Roles in the Sequential Process of Organizational ChangeInvolvement in taskInvolvement in ProcessDiagnosisMotivationCorporate managementConsultantCounterpart Chief implementerImplementation teamTask forceinitiationInformation collectionDeliberationAction proposalImplementation StabilizationKey RolesThe Sequential ProcessEFFECTIVE IMPLEMENTATION Change is alien to an organization yet needs to be accepted. Unless a change is internalized and integrated, it remains 'alien'. Introduction of change in an organization is akin to the transplantation of an organ in a body. An organism (a body) and an organization have some common features. The transplanted part in a body has to be integrated with that body. It may be rejected and so a watch has to be kept to ensure that it is not and steps taken to facilitate integration. The same applies to an organization: it is necessary to ensure that the change gets integrated into the organization, is stabilized, and becomes a part of the working of the organization. This is a part of the implementation process.Implementation can be defined as the institutionalization and internal-ization of a change after it has been accepted by an organization and a decision has been taken to accept and make it an ongoing activity. Implementation starts after a decision has been taken to plan a programme of change. Several contextual factors have been found significant to the success of implementation.Fullen and Pomfret (1997) have suggested four different dimensions of implementation. These relate to the characteristics of the innovation (its explicitness and the complexity, or degree and difficulty, of change), strategies

476 The Organizationand tactics (in-service training, resource support, feedback mechanisms, and participation in decision-making), characteristics of the adopting unit (the adoption process, the organizational climate, environmental support, and demographic factors), and characteristics of macro socio-political units (design issues, incentive system, evaluation, and political complexity). Implementation has been treated as an issue of control versus decentralization and facilitation of change through participation.Implementation may be seen as a multidimensional process. Paul (1980) has proposed the concept of strategic management for the implementation of public programmes as an interaction between four dimensions environment (opportunity, needs, constraints, threats, scope, diversity, and uncertainty), strategy (service-client-sequence and demand-supply-resource mobilization), process (planning and allocation, monitoring and control, human resource development, and motivation-compliance), and structure (differentiation-integration of tasks, structural forms, degree of decentralization, and degree of autonomy).The end result of implementation is the institutionalization and stabilization of change. Institutionalization implies making the change a permanent part of an organization; internalization means stabilization of the change so that it becomes a natural part of an organization's working stylethe former is more structural and the latter more processual.In order to achieve the end results, one starts with planning the whole process of implementation. Implementation primarily consists of monitoring the change, taking action in relation to the change, and making the necessary adjustments in the programme which has been accepted for implementation (which may be called adaptation). This three-phase implementation process (monitoring-action-adoption) is possible if the necessary support is provided at the various stages. This gives us a basic model of the implementation process, which is shown in Exhibit 25.2. As the exhibit indicates, planning is the initial process followed by the circular process of implementation, in which the feedback loop goes from adaptation to monitoring. This leads to institutionalization and stabilization of change. The various aspects of this process are briefly discussed in this section.PlanningThe main purpose of planning is to have an overall understanding of the nature of implementation. Here, 'planning' refers to the planning of the implementation process after a decision has been taken on making a change. Reviewing several Asian experiences in implementation of curriculum change, a group of experts have suggested that the preparation should include broad-based participation by people involved in the implementation of the programme itself, public support, and adequate resources for implementation of the programme. The following three dimensions are involved in planning.

Organizational Change 477Phasing Planning may be focused on the phasing of implementation. Implementation may be a short-term or a long-term programme. Depending on the nature of the change, the implementation process may have to be phased. Phasing may be either temporal (in terms of time) or spatial (in terms of the various parts or locations of an organization).Temporal phasing would involve preparation of a plan in which some elements of the innovation may be introduced later. For example, in some organizations, when a new system of human resource management is introduced, performance appraisal is implemented first; then, after it gets stabilized, the potential appraisal system is implemented. Thus the whole system may not be implemented at one time. Phasing allows some elements of the change programme to stabilize before the next elements are introduced.Phasing can also be in relation to the various parts of the organization. For example, the programme of change may be implemented in some parts of the organization first, followed by implementation in other parts later. If the organization is a large one, it may be a good idea to implement the programme in that part of the organization where acceptability is high first. Experience may be collected from that part to see what new changes and modifications are needed in the programme. Such attention to phasing is necessary in the beginning.Processes Planning should also play attention to the various processes involved in implementation. Often these processes are neglected. Most of the time, the processes underlying implementation are taken for granted, which can lead to several difficulties. Attention needs to be paid to the process of collaboration, increasing the capability of the organization to cope with problems as they arise, establishing norms of openness and various other values which are necessary for the implementation of the change, developing creative relationships to deal with problems, self-reliance, etc. If attention is paid to these processes in the beginning, implementation will become easier. It may be useful to understand which human processes and values are critical and therefore will require special attention to ensure effective planning.Strategies The strategy of implementation needs attention in the beginning, at the planning stage. The following questions, for instance, need to be included in the strategy: Will any help be taken from outside agencies? Who will be put in charge of the implementation programme? When will a more or less permanent structure be evolved (institutionalization) and set up in the organization? Which parts of the organization will be selected for experimentation and initial implementation if phasing is used? How will support be ensured for the various groups involved in implementation? What interlinkages need to be built for effective implementation? All such questions need to be answered before a plan of implementation is finalized.

Exhibit 25.2Model of Implementation of Change in an OrganizationSupportTrainingResourceCommitmentlinkagePlanningPhasesProcessesstrategies

MonitoringImplementation teamMinimum controlReview and feedbackcommunication

ActionAdaptationGeneral and localCoping with consequences

Institutionalization

Stabilization

Organizational Change 479

Havelock and Huberman (1977), analysing the responses of 81 experts to several questions on implementation of educational innovations, came up with five factors of effective strategy formulation: (i) participative problem-solving (innovation should be controlled by localpeople, responsive to their needs, and emphasize local resources andself-help) (ii) open input (innovation should be flexibly designed to make maximumuse of all ideas and resources from inside and outside) (iii) power (innovations should be clearly directed from above using laws,formal procedures, a chain of command, and designated agents fortechnical assistance) (iv) diffusion (innovation should be spread through maximum use of themedia and informal networks), and (v) planned linkage (innovation should be carefully planned, based onclear and realistic objectives, dialogue between innovators and all relevantothers, and high sensitivity to the user's actual situation).MonitoringA World Bank document from 1977 defines 'monitoring' as 'the gathering of information on the utilization of project inputs, on unfolding of project activities, on timely generation of project outputs, and on circumstances that are critical to the effective implementation of the project'. A document issued by the United Nations in 1978 on monitoring and evaluation defines the concept of monitoring as follows: 'The term monitoring usually refers to the process of routine periodic measurement of programme inputs, activities and outputs undertaken during programme implementation. Monitoring is normally concerned with the procurement, delivery and utilization of programme resources, adherence to work schedules or progress made in the production of outputs.' Both these definitions agree that the function of monitoring is to provide early warnings concerning shortfalls in inputs or outputs in order to enable the programme management to undertake timely corrective measures.Monitoring is necessary to make implementation effective. Monitoring means ensuring that a plan proceeds according to the original design. It is necessary to set up a mechanism of monitoring and reviewing a programme of change and its implementation.Monitoring and institutionalization may be kept independent for some time in an organization. Further, the monitoring function may precede institutionalization of the change (in the form of setting up a permanent or semi-permanent unit to take over the programme) so that the advantages of monitoring may be fully utilized. There are several reasons why monitoring and institutionalization should be kept independent for some time. While a monitoring group may be a temporary system, the group that takes over

480 The Organizationthe programme of change and through which the programme is institutionalized in the organization will be a permanent or a semi-permanent system.First, it is necessary to involve a wide cross-section of people in the monitoring function. This is not possible if the programme is institutionalized too quickly and a permanent unit or department takes over this function and the monitoring function. In order to make the monitoring broad based, it may be useful to have a representation of various groups in the implementation team, which should be a temporary system.Second, if the function is institutionalized too early, the new department or unit will have a need to justify its existence and may therefore not pay attention to several factors which can create problems in the implementation of the change. An independent and temporary group, not having any vested interest in the programme, is more likely to pay attention to acknowledging and sorting out these difficulties.Third, if the monitoring group continues to be an independent one, it may be able to attend to the several dimensions which require continuous attention that might be neglected by a permanent or semi-permanent group (because it would be too busy with day-to-day activities and may thus neglect some important dimensions in favour of the urgent issues, hoping to come back to those later and never finding time).Lastly, being a broad-based group, the implementation team may be able to garner support from others in the organization more easily.The following dimensions of monitoring require attention.The implementation team A broad-based task group or implementation team should be set up to implement and to monitor such a programme effectively. It is useful to have an almost whole-time coordinator for such a group. This group may have representation from several parts of the organization. It should include people who are known for their creativity, who are positive while critical, and who are interested in providing support to new ideas. The convenor of the team should have a high enough status in the organization to be able to garner the necessary support for the group. He or she should also enjoy high acceptance in the organization, should have high task concern with an eye to being effective, should enjoy creative work in which there is no authority involved, and should be interested in the field of the change in question.In one organization where a new human resource development system was being implemented, a task group for implementation was set up even before the new department was created. This task force continued for some time. The convenor of the task force was well known for his implementation skills and for his high task orientation. The task group had representation from several units of the organization. After the task group had functioned for some time, a new department was created in order to institutionalize the HRD system and a senior person, a director, was put in charge of this new

Organizational Change 481function (the convenor of the task group was a general manager). However, the task group still continued to function and the chief of the new department attended the meetings of the task group as a permanent invitee. Although he was from a senior grade, he continued to attend the meetings and provide the necessary information about the functioning of the HRD system while the implementation team continued to work on new dimensions and transfer to the HRD department those dimensions on which stability had been reached.The above experience indicates that in some organizations it is acceptable to continue to have a parallel temporary system for some time in order to provide support and critical feedback to a new permanent unit.Minimum control Monitoring will be most effective when it is able to keep track of what is happening at various levels in the organization, provide support for local experimentation, and make any necessary modifications in the programme. Monitoring is a delicate affair. In one sense it is a control function, getting feedback from time to time in order to take decisions, ensuring that the programme is carried out according to the design, and reminding people and communicating to them the need to meet schedules; on the other hand, it also attempts to develop new norms of creativity, diversity, and experimentation. This combination is possible if the implementation team uses minimum formal controls and yet is able to keep control of the implementation of the programme.Review and feedback Implementation requires getting data and experiences about the use of a particular innovation. Periodic reviews may be based on continuous feedback. Monitoring also involves providing feedback to people on how well they are implementing the programme. The function of a review is to know what difficulties people are experiencing in implementing a programme so that the necessary support can be provided.Dissemination of information As a result of review and feedback, the implementation team collects information about what is happening in various parts of the organization with regard to the change being implemented. It may prepare its own strategies of collecting information and disseminating information on experiences of success to reinforce confidence and optimism in other people. Information which is needed to implement the programme may also be disseminated from time to time. The implementation group may wish to prepare a programme of how such information is to be disseminated and what will be the form of the dissemination in advance. It may issue written instructions and send written communication. It may also convene special seminars and meetings in order to discuss problems and experiences.

482 The OrganizationActionA programme of change requires certain steps to be taken. 'Action' covers all the details of actual implementation, which involves various phases and the steps people take.AdaptationFullen and Pomfret (1977) have suggested two main dimensions of implementationwhat they call fidelity (the actual use corresponding to the intended or the planned use) and mutual adaptation (flexibility, so that a programme develops and changes during the process of implementation). Adaptation has been suggested as being one of the two main criteria for the effectiveness of implementation of a change. A programme in which no modifications are introduced later does not indicate effective implementation. Implementation requires understanding and analysis of the experiences people have with the programme as well as learning from them. This should be reflected in the modifications which are made in the programme. Adaptation may be both general (in the sense that some modifications may be made in the original plan) and some may be local (indicating that while the programme is being implemented throughout the organization, some units in the organization may make the necessary modifications in it to suit their own requirements). Such an approach gives flexibility.Dealing with the consequences of change Change introduces an alien element and causes some disturbance. When a change is introduced in an organization, it may produce a threat for some people. Such threats are more imaginary than real. It may also produce some 'negative' results in the short term. For example, the introduction of a job enrichment programme or work redesign programme may result in an initial fall in productivity, initial dissatisfaction among people who have to learn new things, and initial concern among the supervisors about their functions. (The term 'initial' has been used to indicate that these are temporary symptoms of the disturbance which is a necessary part of change.) The organization has to deal with such consequences. If attention is not paid to the consequences, the symptoms may accumulate and contribute to a rejection of the change.This is once again similar to the problem of organ transplantation in a human body. Transplantation produces some disturbances, shown in the form of a high temperature, change in blood pressure, etc. These symptoms have to be controlled. If the early post-operative period can be managed properly, the transplantation may be successful.It has been reported in cases of new job enrichment and work redesign systems that immediately after the change is introduced in the organization, there is a fall in production. In work redesigning efforts, the dissatisfaction of supervisory staff increases gradually when they perceive that their roles

Organizational Change 483are becoming redundant. Unless the new programme does something about this dissatisfaction (e.g., redesigning their roles, involving them in critical decisions, etc.), the change may not succeed as the supervisory staff create obstacles.In one organization, a new human resource system was introduced which included a new performance appraisal system. As a result of open discussion of the employees' objectives with their managers and later discussion of favourable and unfavourable factors for performance (which were part of the new appraisal system), the employees wanted to know more about ratings. Some managers felt uneasy and thought that the new system was increasing 'indiscipline'. The problem was solved by organizing training programmes for employees (appraisees) and managers (appraisers) on how to receive and give feedback and counselling (coaching). In another organization, similar consequences were anticipated and similar action was taken as a preventive prior to the introduction of the new system. This helped to reduce the problem considerably.SupportSupport of various kinds is required for the implementation of a programme. The main sources of support are administrative and managerial groups. Some important dimensions of support are suggested below:Training New skills are needed for the implementation of a programme. It is necessary to provide training for such skills. This may include process skills such as collaboration, openness, problem-solving, and decision-making, or these may be specific technical and work-oriented skills such as those of planning and using information and collecting information for specific purposes.Resources Implementation requires support in terms of various types of resources, such as human, financial, and material resources. The implementation team provides such support by identifying needs from time to time. Resource support may be needed for all the three aspects of managing organizational changefor monitoring, for implementing an action, and for bringing about modifications and adaptations.The top management's commitment A critical dimension is support from the top management. The involvement of the top management is necessary for effective implementation of change. This may come about as signals from the top management that they consider the change important, that they are interested in its implementation, and that they themselves are involved in the change.In one organization where a new HRD system was being implemented, there was little enthusiasm during the first year. Next year, it was reported that the chief executive had sat down with his secretary himself and had

484 The Organizationhelped him to prepare the next year's plan and spent some time on performance review; the implementation of the HRD system was much faster this year. This was a mode of top management support where the top management does what it wants other managers to do. In another instance, the chief executive attended seminars organized to discuss the problems in the implementation of the HRD system. This sent a signal of support from the top management.Linkages Support may also be required in terms of building linkages both with external experts and various other agencies and with internal departments and groups who may provide the necessary help in the implementation of the programme. While the programme may officially be the responsibility of one group, it should be the responsibility of the whole organization to implement it. The development of internal linkages between the implementation team and the permanent department or unit, between the implementation team and the line management, between the implementation team and top management, etc., helps to provide the necessary support for the change.Linkages are also needed between the internal people (or the internal facilitator) and the external consultants. An external consultant does not work alone. The implementation team depends to a great extent on vital linkages between the external consultant and internal people.RESTRUCTURING THE STATE BANK OF INDIAA caselet on effective planning and implementation of change in a large organization illustrates several of the points discussed above.'The Stale Bank is India's largest bank. The old Imperial Bank was nationalized in 1955 to promote rural development, broadbase entrepren-eurship, and provide finance to the public sector. The State Bank grew phenomenally after its rationalization, and by 1970 it had increased the number of its offices from about 400 to over 2100 (in the early eighties it had some 6000 offices and over 100000 employees). In 1969, several other banks were nationalized, and from having a monopoly over public sector business, the State Bank was suddenly confronted with a lot of competition for this sector of business. Huge size, bureaucratic structure, the lack of expert staff support to the branch manager lost near the bottom of the vast managerial hierarchy, and having to compete compelled the State Bank of to reorganise its structure with the help of outside consultants. The objective was to devise a structure that could facilitate the pursuit of profitability and growth but keeping in mind the bank's social responsibility.

* Reproduced with permission from Khandwalla, 1992

Organizational Change 485'A SWOT analysis was performed to identify the strengths and weaknesses of the organization and it was agreed that organization change should be implemented to improve the bank's competitive position, facilitate decentralization (with accountability for performance), develop resilience and challenge taking [sic] capacity in the organization, and bring about greater clarity in the staff about the bank's tasks, thus facilitating the development of managers. Several "principles" of reorganization were articulated, such as greater emphasis on catering to different market segments, increasing performance orientation by adopting performance based budgeting and review of performance, bringing about greater unity of command over the branch managers, and the separation of operations from planning and staff function.'A participative process was used to usher in the changes. The following major changes were made:Accounting was now done on market segment basis and managers of market segment divisions were appointed to report to each branch manager. These included the commercial and institutional banking, small industries and small business, agricultural banking, and personal banking divisions.

Annual budgeting was introduced with monthly performance reporting and review from branch level upwards.

A unified chain of command was introduced starting from managers of divisions reporting to branch manager, who in turn reported to the regional chief, who in turn reported to the general manager (operations) at the local head office, who in turn reported to the chief general manager of the local head office, who in turn reported to the managing director at the central office. A regional manager controlled about 75 branches and a general manager (operations) controlled 5-6 regional managers. There were 12 local head offices.

Specialized staff and functional support at local head offices was provided under a general manager (planning). Development managers who were specialists in each market segment, a planning manager, a personnel manager, specialists like the organization and methods officer, and other service functionaries reported to this general manager. At the central office, the managing director was assisted by deputy managing directors (in charge of operations, development and planning, personnel and services, and associate banks) and these were assisted, in their functional areas, by specialists in their fields.

Overall corporate coordination was provided by the Central Manage ment Committee consisting of the chairman, managing director, and deputy managing directors. Similarly, at each local head office there was a "Circle" management committee consisting of the chief general manager, general manager (planning), general manager (operations), and chief regional managers as invitees, and a "Circle" Coordination

486 The OrganizationCommittee of the same officials. At each branch there was a Branch Management Committee consisting of the branch manager, managers of sectoral divisions, and accounts manager.'A RADICAL APPROACH: DOMAIN RESHUFFLINGOrganizations operate in an environment with which they have a close relationship in terms of getting human, material, technological, and financial resources. When the operating environment of an organization becomes unfavourable or hostile (e.g., due to a change in the governmental policy of not using a particular raw material or a High/Supreme Court ruling that bans mining), the organization may resort to what Khandwalla (1992) has called 'domain reshuffling'. This is the strategy of giving up some domain (area of business) and adopting some other(s) that seem to be favourable. The following examples (reproduced from Khandwalla, 1992, p. 163 with permission) demonstrate how Third World organizations were able to manage change.'Organizational sickness is frequent in the Third World. A common response to sickness in the West is for sick organizations to exit from depressed domains and enter buoyant domains. But in many Third World countries there are legal and other restrictions on choosing what domains or business the organization can operate in. And yet, there are many examples, some ingenious ones, of how sick Third World organizations have successfully sought to get into more buoyant environments and/or out of unfavourable environments:Gambia Produce and Marketing Board owned by the government of Gambia, Africa, was originally set up to trade in oilseeds, cotton, rice, etc. It also operated oil mills and river transportation facilities, and traded in fertilizer, lime, soap, etc. The company began to make losses. As part of its turnaround effort, it withdrew from the loss-making import of rice and fertilizers and from dealing in other loss-making products.

Richardson and Cruddas, India, a producer of structurals and various machineries, began to make losses in the mid-seventies. As part of its turnaround strategy, it sought to get out of the highly competitive and loss-making low-valued structurals business, reversed its proposed expansion of structurals making capacity, and moved more aggressively into high-valued structurals. It also doubled sales of scrap, moved aggressively into foreign markets, capitalizing in part on Indian aid to other countries, and pressured various government bodies for orders.

Jamaica Railway Corporation, operating in Jamaica, West Indies, was a loss-making railway. It sought to make its environment more buoyant by helping to reopen a port, and by organizing luxury and educational

Organizational Change 487tours and excursion trips. It also aggressively sought to carry greater passenger traffic and bulk cargo, such as petroleum products.Sylvania and Laxman, an Indian producer of lamps and bulbs, began to lose money in the mid-seventies. It aggressively penetrated the hitherto neglected rural market as part of its turnaround strategy.

Standard Motors, an Indian producer of cars and a loss-making unit, moved away from producing vehicles that used petrol, and into vehicles using the much cheaper diesel, the latter being a growth segment of the automobile industry.

Enfield, an Indian producer of two-wheelers and agro-engines, sought to diversify into the high growth chemicals and electronics industries. Based in South India, Enfield had hitherto neglected North Indian markets. Enfield aggressively sought to penetrate these markets.

State Timber Corporation, owned by the Government of Sri Lanka, a producer of timber, sought forward vertical integration into such buoyant product markets as teak paneling, doors and window frames, and charcoal.

Tinplate, India contracted with its holding company, Tata Steel, a giant steel maker, to galvanize the latter's steel sheet.

Air India embarked on a major image revamping exercise to turn into a truly international airline from being mainly an ethnic airline catering mostly to Indian passengers. It aggressively sought to tap the first class and business class travellers businesses, and also sought new routes.

Bharat Heavy Plate and Vessels, a Government of India owned producer of sophisticated heat exchangers, pressure vessels, and cryogenic equip-ment, and loss making since its inception did an ABC analysis of its orders, and found that small orders contributed the bulk of its losses. Accordingly it decided not to take small orders. It sought to expand business in the lucrative area of systems selling (as opposed to marketing pieces of equipment).

Bharat Heavy Electricals, a producer of electrical equipment, another Government of India undertaking, made losses in the early seventies. As part of its revival strategy, it set up an exports division, and sought and landed foreign turnkey projects. It began to emphasize the marketing of energy systems rather than of just electrical equipment.'

DEALING WITH RESISTANCE TO CHANGEAn organization often has to deal with resistance to change. There may be several reasons for resistance to change. If these reasons are understood, effective steps can be taken to reduce resistance. Most of these steps can be of a preventive nature, reducing resistance to a great extent. Some action can also be taken when resistance is experienced. We present below some ideas on dealing with resistance to change. Exhibit 25.3 summarizes the sources of resistance and the steps that can be taken to deal with such resistance.

488 The OrganizationExhibit 25.3Sources of Resistance and Coping Mechanisms

Sources of ResistanceCoping Mechanisms1Perceived peripherality of changeParticipation in diagnosis2Perception of impositionParticipation and involvement3Indifference of the top managementActive support from the top4Vested interestsFait accompli5Complacency and inertiaFait accompli6Fear of large-scale disturbancePhasing of change7Fear of inadequate resourcesSupport of resources8Fear of obsolescenceDevelopment of skills9Fear of loss of powerRole redefinition and re-orientation10Fear of overloadRole clarity and definitionPerceived peripherality of change If executives perceive that the change being introduced in the organization is not critical for them or their units, they are likely to resist such a change. Implementation of change can be effective if the change introduced is seen as critical and useful. This can be achieved by involving the concerned managers in the diagnosis of the issues or problems so that they appreciate the need for change. The attitude to the innovation introduced will then be positive.Perception of imposition Similarly, if the managers in an organization see the change as being imposed upon them by the corporate management or the head office, they are likely to resist the change. Such resistance can be reduced by involving them in the introduction of change at several stages. This can be done through seminars, work groups to evolve the various parts of the strategy, task forces to work out details of implementation, etc. Participation of managers at the various stages increases their commitment to the change.Indifference of the top management The behaviour and attitudes of the top management are critical factors in the implementation of change. If the top management do not show much enthusiasm or interest in the change, people at the lower levels will have increased resistance to it. The top management can show their interest by frequently requesting information and feedback on the progress of the programme, participating in seminars organized to discuss experiences with the new system, meeting the occupants of new roles created as part of the change, providing positive strokes (encouragement and appreciation) on success experiences, mentioning the experiment in significant documents such as the annual report, etc.Vested interests Change produces some disturbances, and sometimes some dislocations. For example, if an organization creates new units which are located in small towns, people moving there from capital cities will face

Organizational Change 489problems and experience some inconvenience. As a result, they are likely to resist the change. They may, of course, formally give other reasons which appear logical. However, once they go and work in the small towns, they may find they enjoy the change and see its positive aspects.Complacency and inertia As a general rule, change produces discomfort. People develop a complacency from being in one state. A change of state is somewhat painful. The solution to the problem is to introduce the change and help people experience the new conditions. Then the resistance usually goes down.Fear of large-scale disturbances Resistance may also increase if the implementation of a change requires additional resources in the form of new skills, additional recruits, or a considerable budget. Provisions for such resource support may reduce resistance. However, it is necessary to examine whether there is a genuine need for the resources. For example, if a new unit is created with considerable autonomy, the support of planning, personnel, and technology must be provided to help the unit to succeed in meeting its objectives.Fear of obsolescence Resistance to change may also be high if the change requires new skills. Existing employees may feel that they may become obsolete because of the lack of these skills. This may be a real threat. Resistance can be partly reduced if the concerned people are given an orientation and are trained in the new skills needed. For example, introduction of HRD may succeed if the existing functionaries in the personnel or organizational planning departments are given enough training in the new functions so that they feel confident in carrying these out effectively.Fear of loss of power Sometimes resistance to a change is high because there is a feeling that, as a result of the change, some roles will lose power. For example, creation of new planning roles may raise such a fear as the planning functionaries may not get operational powers. Creating a new unit may 'deprive' the existing top managers of the operational powers being delegated to the units. Such resistance can be reduced if the roles are redefined and redesigned so that the concerned role occupants can perceive that they may have different kinds of power that may be of a higher order, although different in nature. The involved roles may be helped to realize their potential power, and develop ways of effectively using the power.Fear of overload If some people feel that the change will increase their workload, they are likely to resist change. This may happen if they perceive new functions being assigned to their roles. However, if their roles are defined, and they are able to prioritize the functions, and decide which

490 The Organizationfunctions can be delegated to their subordinates, the resistance can be reduced. This would require seminars on role definition and clarity, and negotiation for delegation of some functions.SUMMARYOrganizational change is a complex and continuous process, having several sequential aspects. In the process of planned change, several actors are involvedthe corporate management, the external consultant(s), the counterpart, the implementation team, the chief implementer, and the task forces. Every actor performs specific functions.The investment of time and energy in the process work in the beginning helps to smoothen progress on task achievement later. The implementation of change is itself a complex process and requires a great deal of attention. Planning is followed by action, leading to the institutionalization and stabilization of change. The monitoring of progress is necessary and forms a small feedback loop in correcting action (adaptation).There is always resistance to any change being introduced. Sometimes resistance plays a positive role in warning the organization of possible consequences. Generally, resistance is caused by various kinds of fear and lack of attention to the actual process. Effective strategies for coping with resistance can be achieved by understanding and dealing with the sources of resistance.GLOSSARYdeliberation stage evaluating the various alternatives generated for dealing with the problems or issues associated with the changediagnosis an attempt to search for the main cause of the symptoms encountereddomain reshuffling giving up certain domains (areas of business) and adopting others which fidelity actual use corresponding to the intendedor the planned use implementation translating the proposed ideasinto action initiation the stage of vocalization of the need fora change stabilization internalizing a change and making ita part of the systemREFERENCESFullen, M. and A. Pomfret (1977), 'Research on curriculum and instruction implementation', Review ofEducational Research, 47 (2), pp. 337-97.Havelock, R.G. and A.M. Huberman (1977), Solving educational problems, Paris: Unesco, p. 308. Paul, Samuel (1980), 'Strategic management of public programmes', Cambridge, Mass.: Harward University,Kennedy School of Government (mimeographed).

Organizational Change 491EXERCISESConcept Review Questions1.What are the main sequential phases of organizational change?

2.List the functions of the external consultant and the implementation team in managing organizational change.

3.What are the main aspects of the process of implementing change?

4.Who are involved in monitoring an effort to make a change and how can it be made more effective?

5.What are the sources of resistance to an effort to implement change?

6.Take any two sources of resistance and suggest ways of dealing with them.

Classroom Projects1.In groups of two or three, identify one recent change which has been successfully accepted/adopted at your institution and prepare a note on the process elements of its success.

2.The idea of student participation in the management of institutions has been much discussed but rarely implemented. Form groups of three and prepare a plan of implementation for your institution. Give a brief outline of the sequential process you would adopt.

Field Projects1.All the banks are now computerized. Interview the manager of a bank in your neighbourhood to find out how this change (computerization) was introduced and how it got institutionalized. Trace the whole process of successful implementation of this change.

2.VAT (value-added tax) has been proposed as a major economic change. Interview some businesspersons to 'find' out why there has been resistance to this change. Find out which processes were overlooked in the introduction of this change.