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Objectives 

Upon successful completion of the Unit 8 Case Study, students will be able to:

  • describe the significance and advantages of implementation of change program with team environment;
  • examine the role of management and employees of an organization in facilitating planned change;
  • explore how implementation of change program in an organization can influence the Project management Office (PMO);
  • analyze how managerial practices and employee behaviour can affect the PMO; and
  • examine the steps to over resistance of change in the PMO.
Brief Description

This case focuses on understanding the process of change management within a team environment and examines the role of management and in facilitating change.

Read the case study below and answer the questions at the end of the case.

Case Study

Sridevi, C., Aarathy, M., & Madhubala, B. (2004). Improving performance through change management. IBS Center for Management Researchhttps://casecent.re/p/20108

Submission Instructions
  • Submission should be a maximum of 3 pages double-spaced (excluding title page and reference page) and should follow APA referencing style.
  • All submissions should be done through Turnitin with a similarity level of no greater than 15%.

Evaluation

Unit Case Study 3 will be marked in its entirety out of 100. The following rubric indicates the criteria students are to adhere to, and their relative weights to the assignment overall. Grades and/or feedback will be made available to students no later than one week after submission.

Activity/Competencies Demonstrated% of Final Grade1. Application of Case Analysis Methodology/Content  (60%) a. Identified and clearly/concisely stated the problem, including the decision to be made within the context of the case./10b. Summarized the pertinent facts in the case to describe the background/10c. Demonstrated a thorough analysis supported by evidence from the case. The analysis should be guided by the case questions and should apply course concepts./10d. Identified a viable set of alternatives to solve the stated problem and effectively evaluated the identified alternatives./10e. Recommended the most viable solution./10 f. Defined a clear action plan./102. Format and Writing (40%) a. Included all components of report (title page, all 6 case study analysis methodology steps with headings, references page)/20b. Spelling and grammar/10c. APA formatting (title, headings, references)/10 Total/100 

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ICMR Center for Management Research

Improving Performance through Change Management

This case was written by Aarathy M and Madhubala B, under the direction of Sridevi C, ICMR

Center for Management Research (ICMR). It was compiled from published sources, and is

intended to be used as a basis for class discussion rather than to illustrate either effective or

ineffective handling of a management situation.

2004, ICMR Center for Management Research

ICMR, Plot # 49, Nagarjuna Hills, Hyderabad 500 082, India

Email: [email protected]

www.icmrindia.org

Distributed by The Case Centre North America Rest of the world
www.thecasecentre.org t +1 781 239 5884 t +44 (0)1234 750903
All rights reserved f +1 781 239 5885 f +44 (0)1234 751125

e [email protected] e [email protected]
case centre

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Improving Performance through

Change Management

CASELET 1

The new CEO of Symphony Technologies (Symphony), Anish Vaidya (Vaidya), found

himself confronted with the most challenging phase of his 26-year-old career in the

industry. The liberalization of the Indian economy and the resultant increase in

competition from foreign companies had hit the company’s sales and revenue badly. The

early 1990s saw Symphony’s profits plummeting to an all-time low since its establishment

about three decades earlier.

Established in 1956, Symphony began as a manufacturer of a variety of electrical

appliances, and gradually spread its operations into various other industries such as

consumer products, power generation, automobiles and insurance. Within four decades, it

grew to become a global company serving customers across the world.

In his first meeting as CEO of the company, Vaidya invited employees from the middle

and top management level to pool in their ideas to identify and address the problems faced

by the organization. The meeting brought to the forefront the following areas of concern:

The bureaucratic and hierarchical structure of the organization was stifling the

creativity of its employees as a result of which, they were no longer motivated to come

up with ideas pertaining to new products or improvements in the existing

organizational practices.

Competition from multinational companies was eating into Symphony’s market share

as the technology of these companies was far better than that of Symphony.

Symphony’s very survival was at stake as most of its subsidiaries were facing serious

financial crises and increasing losses.

The productivity of these subsidiaries was disproportionate to the number of

employees they had.

The inability of Symphony’s generic products to effectively penetrate the highly

competitive market eventually resulted in blocking the capital.

Most important of all, Symphony failed to adapt to the changes in the external

environment. Because of this, it not only lost market leadership in various sectors, but

also failed to maintain a decent market share in the industry.

Realizing that continuous change and adaptation were lacking in the organization, Vaidya,

in consultation with his team members introduced the following measures to pull

Symphony out of a probable debacle:

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Areas with new and substantial market potential were explored and strategies to

implement them were developed.

Vaidya endeavored to change the bureaucratic style of management in the organization

to enable easier and faster decision making. This resulted in the formation of a lean

and effective organizational structure and helped enhance employee participation, and

thereby improve employee productivity.

All the subsidiaries and business units that were making losses were shut down so that

the company could compete only in those areas in which it had proved and tested

competence. This helped it tap the capital that was being invested in units that were

not productive.

Vaidya also took the difficult decision of cutting down on excess staff, to cut down on

operational costs. Excess but efficient staff were retrained and deployed suitably.

Employees at Symphony were asked to undergo training programs at regular intervals

to remain updated with the latest developments in the external environment, so that

they could adapt to technological changes and remain competitive.

Initially, there was stiff resistance in the company to the tough measures taken by the new

CEO. However, Vaidya was able to gradually persuade the employees to accept the changes

and within a short period of time, a sea change was noticed in the organizational processes.

These revolutionary changes brought about a dramatic rise in Symphony’s profits, and soon,

Vaidya’s bold decisions made Symphony a market leader in various fields of business.

QUESTIONS FOR DISCUSSION:

1. Taking the example of Symphony Technologies, describe the importance of change
management in organizations.

2. Briefly outline the role played by the management and employees in bringing about a
planned change in Symphony Technologies.

CASELET 2

Global Real Estates (Global), a Mumbai-based real estate company, had several franchises

across the country. The company facilitated buying and selling of plots in all those

localities where its franchises were operating. The company had been established in 1920,

and it had more than 60 franchises spread across the country by the year 2003.

Some franchises were single office establishments while some were multiple office

establishments. Global provided all its franchises with technical support, business assistance

and advertising, and offered training to their sales personnel. Global initiated a change

program to improve its support and the productivity and profitability of its franchises.

As a part of the change program, the head of each office had to submit to the corporate

office, a detailed report of operations in his office. Also, individual employees, especially

salespeople in each office, were given an ‘opinion survey questionnaire’ by Global. The

questionnaire sought to know the employees’ opinions regarding the organization’s work

environment. Each employee had to fill it and submit it directly to the HR department at

the corporate office either in person or by mail.

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The executives of Global’s operations department and HR department analyzed the data
collected from managers and salespeople of all the offices and produced reports pertaining
to organization-wide performance. After the senior management of Global reviewed the
reports, the changes suggested by them were incorporated in the reports. The final reports
were then given as feedback to the head of the unit in case of small organizations, and to
the management team in case of large organizations. The managers shared the data with
their salespeople and both worked together to identify the problem areas in sales
personnel’s performance and to come up with measures to improve their performance. The
managers encouraged the salespeople to participate actively in the discussions. The
salespeople were also required to develop action plans to address the problem areas, and
the managers intervened only when the salespeople found the problem too complex to
resolve on their own. The reports also helped the franchises recognize their strengths and
weaknesses so that they could act on them.

The opinion surveys collected data on various management practices (rules and
regulations, creating conducive work environment and motivating employees). The
responses obtained were presented in the form of colored graphs which enabled easy
comparison of the productivity and performance of the franchises. The graphs helped
identify the best performing franchise so that it could be made the benchmark for all other
franchises to match their performance against.

The section of the questionnaire which contained questions pertaining to managerial
practices was designed to test the managerial practices of franchises for effectiveness and
consisted of three areas – organizational climate, service orientation and fundamental
attitudes. Questions on ‘organizational climate’ tried to evaluate the perceptions of
employees about the work environment and the style of management. These questions
sought to learn whether employees perceived their peers and superiors as cooperative or
not, and also to find out whether the employees felt a sense of pride in working for their
organization. Questions on ‘service orientation’ aimed to understand the extent to which
employees at each office were committed to customer service. Questions on ‘fundamental
attitudes’ tried to identify pessimism in employees and help them overcome it.

Research and analysis at Global indicated that there existed a strong relationship between
the attitudes of employees and the performance of the franchise. The research also
identified the other behaviors, managerial policies and practices that were directly related
to organizational performance. This enabled Global to help its franchises improve the
performance of their employees. The management from the corporate office visited each
franchise and explained to employees how the changes in market conditions made old
beliefs and attitudes obsolete and irrelevant, and they emphasized the need for employees
to adopt new beliefs and attitudes. External consultants were hired to help bring about this
change in the employees.

The feedback offered by Global proved a valuable source of development for the managers of
the franchises. The managers of these franchises could now concentrate on developing and
implementing business plans and enhance the profitability of their franchises.

QUESTIONS FOR DISCUSSION:

1. Global initiated a change program to improve its services, and the profitability of its
franchises. Is it similar to any of the standard OD interventions used by change agents?
Substantiate your answer. One of the objectives of the change program was to obtain a
positive change in employee behavior. Explain how such a change can be achieved.

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2. What are the advantages of the change program that Global adopted? The change

program used by Global was aimed at achieving improvement in employee behavior.

In what ways are employees required to cooperate with the change agent in the

implementation of such change programs?

CASELET 3

Bank of Hyderabad (BOH) was a small bank established in Hyderabad in 1990. The bank

slowly established its branches throughout Andhra Pradesh and became the most trusted

bank in the private sector. The hard work and management expertise of the founder and

CEO of the company, Satyanarayana Murthy (Murthy), was the main reason for BOH’s

success. BOH grew rapidly and soon spread its branches across India. BOH also entered

into the non-banking financial services sector. Murthy wanted BOH to be a one-stop shop

for all financial products and services. With the help of its committed staff, BOH

performed well in the area of non-banking financial services also, and earned profits. But

Murthy wanted BOH to be a leading financial services provider in India, and not just one

of the profitable organizations.

Therefore, Murthy analyzed the strengths and weaknesses of the company. He noted that

BOH was neither a low-cost player nor had it differentiated itself from the other players in

terms of customer service. He immediately identified two leading banks in the industry to

serve as benchmarks for BOH to follow. While one bank raised funds at the lowest cost,

the other understood customers’ needs and developed customized solutions for them.

Murthy directed his managers to strive to outperform these leading banks. Managers were

rewarded based on their efforts to improve the performance of the bank.

Another fact identified by Murthy was that BOH did not offer convenience to customers.

In the existing system, if a client had three different requirements from BOH, he had to

approach the relevant departments separately. The process was time-consuming, and there

was a danger that the client would take a portion of that business elsewhere. To tackle this

problem, Murthy, set up three departments – Corporate Clients Group (CCG), Individual

Clients Group (ICG) and Non-Performing Assets Group (NPAG). Employees in these

groups helped the client to get his job done without having to make several visits to

different departments.

The employees in NPAG complained that they always dealt with lower-end clients and

that this affected their ability to compete with their colleagues in the other departments for

performance ratings. As the chances of recovering bad debts were always less, the revenue

of NPAG was always lower than that of other departments. The bonus for BOH employees

was based on the performance of individual profit center/department rather than the entire

organization. This affected the appraisal ratings and career growth prospects of employees

in NPAG.

While the employees were still struggling with internal problems, Murthy took a major

decision. He decided to merge BOH with a small financial services provider, Akhira

Finances (Akhira). Murthy faced stiff resistance to his decision from his employees who

feared that the merger would result in job losses. But Murthy was confident that the

merger would benefit BOH and went ahead with it.

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BOH had a much larger workforce than Akhira. There was also a vast difference in

salaries, profiles and designations of the employees of the two banks. Akhira paid uniform

salaries to employees in similar positions while BOH paid salaries to employees based on

their individual performance and performance of their department. BOH concentrated on

urban marketing whereas Akhira was a rural-oriented organization. Murthy had a tough

time implementing the merger of the two unequal organizations. However, with support

from the HR department and an external consultancy, A22 HR solutions, Murthy

completed the merger successfully.

QUESTIONS FOR DISCUSSION:

1. What were the various changes initiated by Murthy? Was he right in his decisions and
actions in each of these change initiatives? Substantiate your answer.

2. Were the apprehensions of BOH’s employees during the merger justified? What steps
can be taken by the management at BOH to overcome employee resistance to

change?

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