1. MANAGING ORGANIZATIONS
Session 13: Organizational Change
Sourav Mukherji
PGP 2012-14 Section C & E
Associate Professor of Organization & Strategy
Term 1:June-September 2012 Indian Institute of Management Bangalore, India

2. 2
REVISITING APPEX CORPORATION
Why did Shikhar Ghosh make so many structural changes in Apex Corporation ?
Were all the changes in structure necessary ?
What did he achieve or fail to achieve with so many changes ?
© S Mukherji

3. 3
STRUCTURAL CHANGES AT VFM SOLUTIONS
If VFM solution decides to sell computers to corporate customers
(option 1), what kind of change should it bring about in its
organization structure ?
© S Mukherji

4. 4
CORPORATE SALES – OPTION 1
VIKAS
MANISH FRANCIS
PARTHA
SOHO CALL
SALES CENTRE
© S Mukherji

5. 5
CORPORATE SALES – OPTION 1
VIKAS
MANISH FRANCIS
PARTHA
NEW
APPOINTEE
CORPORATE
SALES
SOHO CALL
SALES CENTRE
© S Mukherji

6. 6
CORPORATE SALES – OPTION 2
VIKAS
MANISH FRANCIS
PARTHA NEW APPOINTEE
CORPORATE
SALES
SOHO CALL
SALES CENTRE
© S Mukherji

7. 7
CORPORATE SALES – OPTION 3
VIKAS
MANISH FRANCIS
NEW APPOINTEE PARTHA
CORPORATE
SALES
SOHO CALL
SALES CENTRE
© S Mukherji

8. 8
CORPORATE SALES – OPTION 4
VIKAS
MANISH FRANCIS
NEW
PARTHA APPOINTEE
CORPORATE
SALES
SOHO CALL
SALES CENTRE
© S Mukherji

9. 9
CORPORATE SALES – OPTION 5 ADVANTAGES
1. No senior level appointment
Less risky, less resources
VIKAS 2. Using existing resources, knowledge
3. Promotion for Partha
Succession planning
MANISH FRANCIS DOUBTS / CHALLENGES
1. Is Partha ready for this role yet ?
2. Does he need to be trained ?
3. What is the size of opportunity ?
PARTHA
4. Will the new opportunity get
adequate focus from VFM ?
SOHO CALL CORPORATE
SALES CENTRE SALES
© S Mukherji

10. THREE DIMENSIONS FOR CONSIDERATION 10
DURING STRUCTURAL CHANGES
1 Strategic Objective • What is the size of proposed business ?
• How does the proposed change enable / facilitate
the objective of the organization / business unit
• Is the change consistent with business objective ?
• What are the interdependencies with current job ?
Are there any conflict of interests ?
2 Job Content Are there complementarities ?
• Can the new job be done through existing set of
skill sets and competencies ?
• What is the extent of education and training necessary
for existing employees to make this transition ?
• Have we addressed the aspirations and apprehensions
3 Human dimension of
of existing employees ?
change • Has there been adequate communication to set expectations?
• What are the implications for political and informal
relations in the organization ?
• What is likely to be the relationship between new recruits
and existing employees of the organization ?
© S Mukherji

11. 11
SERVICES – VARIOUS OPTIONS
VIKAS
MANISH FRANCIS
PARTHA
SERVICE
MANAGERS
SERVICE
SOHO CALL ENGINEERS
SALES CENTRE
© S Mukherji

12. 12
SERVICES – VIABLE OPTION ? ADVANTAGES
1. Less conflict of interest
2. Similar nature of job / role
VIKAS 3. Manish has capacity to take
additional responsibility
MANISH FRANCIS DOUBTS / CHALLENGES
1. Integration between sales
& service
2. Conflict resolution
PARTHA
SOHO CALL
SERVICE
SALES CENTRE
MANAGERS
SERVICE
ENGINEERS
© S Mukherji

13. 13
A PROCESS MODEL OF ORGANIZATIONAL CHANGE
Integrate as regular
organizational practices
INSTITUTIONALIZATION Evaluate, monitor impact
Fine tuning
Refreeze
Level of Planning specific steps
Support for IMPLEMENTATION Identify change agents
Change Identify potential resistance
Address apprehensions
Preparation for hardships
PREPARATION Creating the need for change
Unfreeze
Disturbing the status quo
Time
© S Mukherji

14. 14
ORGANIZATIONS AND INDIVIDUALS SEEM TO RESIST CHANGE
INTERDEPENDENT
SUBSYSTEMS
STRUCTURAL
INERTIA
SECURITY / HABIT
ECONOMIC FACTORS GROUP NORMS
Individual Organizational
resistance resistance to
to change change
SELECTIVE FEAR OF
INFORMATION UNKNOWN THREAT TO
POSITION THREAT TO
PROCESSING
OF POWER EXPERTISE
THREAT TO
RESOURCE
ALLOCATION
© S Mukherji

15. OVERCOMING RESISTANCE IS CRITICAL FOR 15
MANAGING CHANGE
Different ways of overcoming resistance to change
 Evangelize and communication
 Address apprehensions, increase transparency, articulate rational,
temporary sacrifice / inconvenience for greater good
 Participation
 Increases “felt-need”, collective responsibility, process fairness, means to
a desired goal
 Facilitation and support
 Education, training, re-skilling, counseling
 Negotiation
 Addresses the power equations, reward packages
 Cooptation
 Peer pressure
 Coercion
© S Mukherji