MS 25 question 5

What is turnaround management? Describe various steps to be followed in using turnaround management. Give an example where turnaround was used. Briefly describe the organization you are referring to

TURNAROUND MANAGEMENTis a process of devising , executing and managing a plan of corporate renewal. The process involves identifying the key driversof an unstable business and implementing a sustainable recoverychange strategies which rapidly improves the business.THE TURNAROUND MANAGEMENT involves a number of steps:STEP 1.INDENTIFY THE ROOT CAUSES.-sales down due to weak economy.-overly optimistic sales projections-poor strategic choices-high operating costs-high fixed costs that decrease flexibility-insufficient resources-unsuccessful R&D projects-high successful competitor-excessive debt burden-inadequate financial controls.----------------------------------------------STEP 2CONDUCT A SITUATION AUDIT / ANALYSIS.-------------------------------------------------STEP 3DEVELOP A STRATEGIC CORPORATE OBJECTIVE--------------------------------------------------------STEP 4DEVELOP A CORPORATE STRATEGY--------------------------------------------------------------STEP 5DEVELOP A CORPORATE BUSINESS RESTRUCTURING PLANStrategic restructuring: The focus lies on core markets and promising business segments. Corporate divisions destroying value are divested. Operational restructuring: It focuses on leaner organization and leaner processes, on the simplification of manufacturing networks and corporate structures, as well as on maximizing efficiency and effectiveness. Financial restructuring: A combination of cost reduction, more flexible structures, and the development of a sustainable financial concept. -------------------------------------------------------------STEP 6DEVELOP A CHANGE MANAGEMENT PROGRAM--------------------------------------------------------------STEP 7DEVELOP AN EMERGENCY ACTION PLAN.-------------------------------------------------------------STEP 8DEVELOP AN IMPLEMENTATION PLAN.------------------------------------------------------------------THINGS TO REMEMBER:the overall financial situation is as transparent as possible and that the influence of the identified restructuring measures becomes clear, rapid analysis and concept development considering the information needs of the stakeholders are conducted, the most relevant people from the organization are involved in order to achieve acceptance for the implementation of improvements, consistent project management and controlling are established during the implementation phase to ensure that the pursued improvements are actually achieved, all stakeholders are continuously informed and involved in order to identify risks and avoid counterproductive conflicts. ================================================================TURNAROUND MANAGEMENT --CASE STUDYThe organisation I am referring to, was facinga problem of declining sales/ market share for 2 consecutive year.The organization, I am familiar with is a -a large manufacturer/ marketer of safety products-the products are used as [personal protection safety] [ industrial safety]-the products are distributed through the distributors as well as sold directly-the products are sold to various industries like mining/fireservices/defence/as well as to various manufacturing companies.-the company employs about 235 people.-the company has the following functional departments*marketing*manufacturing*sales*finance/ administration*human resource*customer service*distribution*warehousing/ transportation*TQM ==============================================STEP 1.INDENTIFY THE ROOT CAUSES.-poor strategic choices-high operating costs-insufficient resources-high successful competitor-inadequate financial controls.----------------------------------------------STEP 2CONDUCT A SITUATION AUDIT / ANALYSIS.-the demand for the market was growing at 13%-the company sales was growing at 7%-the company was selling directly to the customers, using the salesforce.-lack of adequate product range.-lack of market coverage-lack of skills among the salesforce-demand for technical productsetc etc-------------------------------------------------STEP 3DEVELOP A STRATEGIC CORPORATE OBJECTIVE -go for 20% growth ----per annum over the next 5 years.-enter new market segments. [ 15% additional sales volume]-offer new product [ 15% additional sales volume ]--------------------------------------------------------STEP 4DEVELOP A CORPORATE STRATEGY-restructure the marketing department [ 3 product group management]-to achieve 80% sales through distributors in 5 years time.-to conduct more marketing development for new products.-to train all staff in the product knowledge.etc--------------------------------------------------------------STEP 5DEVELOP A CORPORATE BUSINESS RESTRUCTURING PLANStrategic restructuring: The focus lies on core markets and promising business segments. Corporate divisions destroying value are divested. -3 new product groups.-development a new salesdepartment to develop distributor sales.--------------------------------Operational restructuring: It focuses on leaner organization and leaner processes, on the simplification of manufacturing networks and corporate structures, as well as on maximizing efficiency and effectiveness. Financial restructuring: A combination of cost reduction, more flexible structures, and the development of a sustainable financial concept. -reorganizing the sales territories.-appointment of new distribtors --geographically.-pay for performance systems.-------------------------------------------------------------------------------------------STEP 6DEVELOP A CHANGE MANAGEMENT PROGRAM-implementation of the change management programover the 6 months period.--------------------------------------------------------------STEP 7DEVELOP AN EMERGENCY ACTION PLAN.which included-new product sourcing-new product development-new sales policies development-new distributors policies development-new training for salesforce - to manage the distributors.-new training for customer service staff.-new order processing / servicing system.etc etc-------------------------------------------------------------STEP 8DEVELOP AN IMPLEMENTATION PLAN.A PHASED PROGRAM OF IMPLEMENTATION.==========================================OVER THE NEXT 5 YEARS, THE COMPANY -MAINTAINED A 20 % GROWTH-IMPROVED THE MARKET SHARE SIGNIFICANTLY.-IMPROVED THE CUSTOMER COVERAGE BY 100%-MAINTAINED A STEADY SALES / PROFIT GROWTH.

MS 25 question 4

Describe various sources of resistance to change. Discuss how one can overcome resistance to change. Discuss with reference to an organization you are familiar with and the mechanisms they had used in overcoming resistance to change. Briefly describe the organization you are referring to.

WHY PEOPLE RESIST CHANGEIt used to be an accepted fact that everyone resists change. We now know that it is not true. There are many reasons why a person resents (negative attitude) and/or resists (active opposition to) a particular change. Likewise, there are many reasons why a person accepts (neutral attitude) and/or welcomes (positive attitude) a particular change.Why People Resent or Resist ChangeThere are many reasons why employees of all sizes/ shapes may react negatively to change.Personal Loss. People are afraid they will lose something. They might be right or they might be wrong in their fear. Some of the things they might lose are as follows:Security. They might lose their jobs through areduction in force or elimination of their jobs.Automation and a decline in sales often bring aboutthis feeling.Money. They might lose money through a reduction in salary, pay, benefits, or overtime. Or, expenses such as travel may be increased because of a move to another location that is farther from their home.Pride and satisfaction. They might end up with jobs thatno longer require their abilities and skills. Friends and important contact. They might be moved to another location where they will no longer have contact with friends and important people. This loss of visibility and daily contacts is very serious for people who are ambitious as well as those with a strong need for love and acceptance.Freedom.They might be put on a job under a boss whono longer gives them freedom to do it "their way."Closer supervision that provides less opportunityfor decision making is a dramatic loss to somepeople.Responsibility.Their jobs might be reduced to menialtasks without responsibility. This may occur when anew boss takes over or through changes in methods orequipment.Authority. They might lose their position of power and authority over people. This frequently happens when re‑organization takes place or when a new boss decides to usurp some of the authority that an individual had.Good working conditions. They might be moved from a large private office to a small one or to a desk in a work area with only a partition between people.Status.Their job title, responsibility, or authoritymight be reduced from an important one to a lesserone with loss of status and recognition from others.This also happens when another layer of managementis inserted between a subordinate and manager.No Need.The typical reaction is, "What's the matter with the way things are now?" Or, "I don't see any reason why we should change."More Harm Than Good.This is even stronger than the previously mentioned "No Need". People really feel it is a mistake ‑ that it will cause more problems that it is worth. Sometimes this reaction is justified. It is particularly common when people at the "bottom" of an organization feel that top management makes changes without knowing what is going on "down on the line."Lack of Respect.When people have a lack of respect and/or negative attitude toward the person responsible for making the change, there is a strong tendency to resent and even resist it. Their feelings do not allow them to look at the change objectively.Objectionable Manner.Sometimes change is ordered in such a way that the people resent and/or resist because they do not like being told what to do.Negative Attitude.People with a negative attitude toward the organization, the job and/or the boss are very apt to resent or resist change no matter what it is.No Input.One of the most significant reasons is the fact that the people who felt they should have been asked were not asked for their ideas concerning the change.Personal Criticism.Whether or not the change is actually criticizing the things that were previously done or the way in which they were done, people may look upon the change as a personal criticism.Creates Burdens.Some changes add more work and with it confusion, mistakes and other negative results.Requires Effort.The change will obviously require more effort. Much of the effort accomplishes very little, if anything. Whenever changes require more time and effort, people are apt to resent and even resist them, particularly if no rewards accompany the extra effort.Bad Timing.The timing of a change is very important to its acceptance. If it comes at a time when people are already having problems, the change is usually resented and probably resisted by those who are supposed to implement it.Challenge to Authority.Some people are testing their power and influence by simply refusing to do it.Secondhand Information.Some people are very sensitive about the way they learned of the change. If they found out about if from a secondhand source, they might resist it until they hear it "from the horses mouth."What is the Real Reason for Resentment or Resistance?Managers often have difficulty in determining the real reason why subordinates resent and/or resist a change. They may feel that the subordinates are just being stubborn or that they are afraid they will lose something. The real reason may be entirely different.------------------------------------------------------------------WHY PEOPLE ACCEPT ORWELCOME CHANGEWhile some people resent and/or resist change, others accept and welcome it. The degree to which these opposites occur depends on many factors. Some of the reasons for positive reaction to change are described in this section.Personal Gain.When changes are made, some people may gain such things as the following:Security.They feel more secure in their job because of the change. Perhaps more of their skills will be used.Money.They may get a salary increase, more benefits, an incentive or profit‑sharing programme, or more overtime.AuthorityThey may be promoted to a position of greater authority, or they may get a new boss who gives them more authority than they had under the previous boss.StatuslPrestige.They may get a new title, a new office, or a new responsibility, their boss may have assigned more responsibility, or they may have a new boss who assigns more responsibility than the previous one did. Better working conditions.They may get a new working schedule, new equipment, or other conditions that make the job easier or more enjoyable.Self‑satisfaction.They may get new satisfaction or feeling of achievement because of the change. Perhaps the new job gives them more of a change to use their abilities, or the boss may eliminate some of the obstacles that had prevented them from doing their best.Better personal contacts.They might be located in a place where they will have closer contact with influential people. Their visibility is very important to some people.Less time and effort.The change may make their job easier and require less time and effort.Provides a New Challenge.While some people look at a change negatively because it requires effort and perhaps risk, others will be eager for it because it provides a new challenge.Likes/Respects the Source.If people have a positive attitude toward the person or the department they represent, they will probably accept and even welcome the change. Likes Manner.People who are asked to do things instead of told to do them may react very positively. Someone described the most important words in the English language as follows:Five most important words:"I am proud of you."Four most important words:"What is your opinion?"Three most important words:"If you please."Two most important words:"Thank you."One most important word:"You (or possibly We)."The tone may have much to do with resentment or acceptance.Reduces Boredom.Changes that are designed to reduce boredom will be welcomed by some.Provides Input.One of the most powerful approaches to get acceptance is to ask for input before the final decision is made.Desires Change.Some people will react to change by thinking or saying, "It's about time." In other words, they have been anxious for the change to occur.Improves Future.Some changes will open up new avenues for future success in the organization. People will be provided with opportunities to show what they can do. Future possibilities include promotion, more money, more visibility, more recognition and more self­satisfaction.Right Time.Some changes come at just the right time. If more money is needed to pay current bills or to buy a luxury item like a video recorder or a boat or to take a vacation, the change will be welcomed.===============================The organisation I am referring to, where we introduced ERP software for managing the supplychain management system, with the objective of -improving the efficiency-improving the effectiveness of the supply chain operation.The organization, I am familiar with is a -a large manufacturer/ marketer of safety products-the products are used as [personal protection safety] [ industrial safety]-the products are distributed through the distributors as well as sold directly-the products are sold to various industries like mining/fireservices/defence/as well as to various manufacturing companies.-the company employs about 235 people.-the company has the following functional departments*marketing*manufacturing*sales*finance/ administration*human resource*customer service*distribution*warehousing/ transportation*TQM ==============================================HOW did we INITIATE CHANGEOften it is easier to carry out a job if there is a specific plan to follow. When major changes are to be installed, careful planning and preparation are necessary. Strengthening the forces promoting the change and weakening resistance to it are the main tasks.CREATE A CLIMATE FOR CHANGEHow people react to proposed changes is greatly influenced by the kind of climate for change that the manager/supervisor has created in the department.HOW IS THE RIGHT KIND OF CLIMATE CREATED?Supervisors and managers who have enthusiasm for progress and change build a healthy climate.Creating the right climate is more than just passing on changes. It involves:Encouraging employees to seek ways of improving their jobs.Seeking suggestions and ideas from employees.This requires the manager/supervisor to listen and seriously consider suggestions. It is easy to see that there is a great deal of ego involvement in coming forth with an idea for improvement. Change can become an exciting and dynamic way of life. The manager/supervisor determines the climate in which they initiate change.GET READY TO SELLMuch of the difficulty in getting co‑operation stems from the employees lack of understanding of how the change will affect them. With a little effort, managers/supervisors can find most of the answers to employees' questions before they are even asked. Answers to these questions would be useful.What is the reason for the change? Whom will it benefit and how? Will it inconvenience anyone, if so, for how long? Will training or re‑training be necessary? When does it go into effect?Armed with the answers to these questions a manager/supervisor can head off many objections and can develop a plan to present the change.IDENTIFY THE SOURCES OF HELPWhy should you, the managers and supervisors, shoulder the burden alone? Staff can frequently be a great help in preparing to sell a change by explaining technical aspects and demonstrating new techniques.One of the most overlooked sources of help in introducing changes are the informal leaders in the work group. With their help the job becomes easier. Giving recognition to informal leaders puts them in a co‑operative frame of mind.Since union stewards are often informal leaders, their co‑operation ought to be solicited. The backing of union stewards makes the job easier.ANTICIPATE OBJECTIONSChange that upsets routines, requires new knowledge or skills, or inconveniences people are bound to meet with some objections or resistance. Looking at a change from the employees point of view will usually be enough to help determine what their objections are likely to be. Knowing the objections, we can, with a little creative thought, turn these objections into advantages.Showing the staff with reason or logic will not do the job. Managers/supervisors have to convince people that the change is really best for them and that will not happen until their objections are dealt with seriously.SELL BENEFITSEveryone is concerned with, "What's in it for me?""Will the change mean more satisfying work. greater security. opportunity to show what I can do. more responsibility. more pay. less fatigue. less confusion. greater independence?"The benefits used to motivate people to co‑operate should be put on as personal a level as possible. It would be dishonest, however, not to recognise any disadvantages that a change may bring. These can usually be countered with long range benefits.One of the techniques that is helpful in identifying the characteristics and values of the proposed changed condition is a "Word Picture". The picture makes the new condition desirable in the minds of the staff.A)One of the ways this concept of "word picture" is used, is the physical change in office layout or new equipment or any other physical changes.B)To picture or model a change in policy, organization or operation is more difficult than the physical change. The principle is the same. The picture can help in communicating the desirability of the change and in fine tuning the change because it makes it possible to discuss how things will operate. It may take the form of a flow chart, an organization chart or a description of relationships.To use this approach for deciding whether to initiate a change, you can take the following steps:Describe as clearly as possible the present situation.Describe as clearly as possible the desired situation.Analyse what specific changes will have to take place in the key factors involved to produce the desired situation. Look at such key factors as bosses, employees, equipment, physical environment, policies and procedures, work methods, materials and time. Identify the relevant factors.Assess the strengths of the forces promoting the desired situation and of those resisting it.Determine what action to take. Choices are:A)Do nothing, the resistant forces are stronger than the forces promoting change.B)Act to strengthen the promoting forces and/or to weaken resistance, by concentrating one's efforts on the key factors.LISTEN IN DEPTHEmployees have a right to be heard. If employees are treated with respect, they probably will respond in kind. They will feel better too, if they know their concerns have been considered.FOLLOW‑UPAfter having conscientiously sold the benefits of a change, it is tremendously important that the managers/supervisors see that their promises have materialized. A sincere interest in how the change has affected the employee and a willingness to make adjustments, help build the climate in which future changes will be initiated.AS A MOTIVATION, WE INTRODUCE AN INCENTIVE SYSTEM,WHERE ALL MANAGERS/ STAFF WOULD GAIN A BONUSOF 50% OF THE PRODUCTIVITY GAIN DURING THE FIRST2 YEARS OF IMPLEMENTATION.---------------------------------------------------------------------------------CHANGES AND COMMUNICATIONThe following steps will help you to minimize resistance:1.Explain why. Provide all the facts about the reason for changing. If there are risks, acknowledge them but explain why the risk is worth taking.2.Objectively explain the benefits that could result from the change.3.Seek questions/clarifications and answer them.4.Invite participation and ask for suggestions because the people involved know the situation best.5.Avoid surprise because this stirs unreasoning opposition more than any other factor.6.Acknowledge the rough spots and explain how you plan to smooth the change.7.Set standards and explain your expectations.8.Contact the informal leaders and use their resources.9.Acknowledge and reinforce the staff's co‑operation and give them feedback on the progress.10.Keep the two way communications open for suggestions and corrections.=============================================CONCLUSIONHow do you manage change? The honest answer is that you manage it pretty much the same way you’d manage anything else of a turbulent, messy, chaotic nature, that is, you don’t really manage it, you grapple with it. It’s more a matter of leadership ability than management skill. The first thing to do is jump in. You can’t do anything about it from the outside. A clear sense of mission or purpose is essential. The simpler the mission statement the better. “Kick ass in the marketplace” is a whole lot more meaningful than “Respond to market needs with a range of products and services that have been carefully designed and developed to compare so favorably in our customers’ eyes with the products and services offered by our competitors that the majority of buying decisions will be made in our favor.” Build a team. “Lone wolves” have their uses, but managing change isn’t one of them. On the other hand, the right kind of lone wolf makes an excellent temporary team leader. Maintain a flat organizational team structure and rely on minimal and informal reporting requirements. Pick people with relevant skills and high energy levels. You’ll need both. Toss out the rulebook. Change, by definition, calls for a configured response, not adherence to prefigured routines. Shift to an action-feedback model. Plan and act in short intervals. Do your analysis on the fly. No lengthy up-front studies, please. Remember the hare and the tortoise. Set flexible priorities. You must have the ability to drop what you’re doing and tend to something more important. Treat everything as a temporary measure. Don’t “lock in” until the last minute, and then insist on the right to change your mind. Ask for volunteers. You’ll be surprised at who shows up. You’ll be pleasantly surprised by what they can do. Find a good “straw boss” or team leader and stay out of his or her way. Give the team members whatever they ask for — except authority. They’ll generally ask only for what they really need in the way of resources. If they start asking for authority, that’s a signal they’re headed toward some kind of power-based confrontation and that spells trouble. Nip it in the bud! Concentrate dispersed knowledge. Start and maintain an issues logbook. Let anyone go anywhere and talk to anyone about anything. Keep the communications barriers low, widely spaced, and easily hurdled. Initially, if things look chaotic, relax — they are Remember, the task of change management is to bring order to a messy situation, not pretend that it’s already well organized and disciplined.

MS-25 QUESTON 3

QUES 3 :Describe any two types of interventions and their use in bringing organizational change. Discuss with reference to your organization or an organization you are familiar with where change has taken place and the intervention used. Briefly describe the organization you are referring to.


OD INTERVENTIONS DO CREATE BOTH POSITIVE
AND NEGATIVE IMPACT.

THIS IMPACT IS CREATED BY THE CHANGE.

THOSE WHO SHOW THE NEGATIVES,

often show behaviors like
-BECOME LESS PRODUCTIVE
-LACK OF INTEREST IN THE JOB.
-DEMOTIVATED
-argue
-blame
-criticise
-avoid communication
-delay everything
-provide lots of exccuse
-sulk
-resign / go
-show indifference
-tension
-show outbursts
-remain silent
-sarcastic remarks
-show inflexibility


People react negatively due to
-reduction in responsibility
-reduction in authority
-dent in pride
-loss of contact with important people
-loss of freedom
-loss of good working conditions
-loss of status
-feels there is no need to change
-no need for change
-bring more harm then good
-lack of consultation
-creates more burden
-could not provide any input.
-requires extra effort without reward.
-poor timing
===============================================
THOSE WHO SHOW THE POSITIVES,

often show behaviors like


-ARE MORE PRODUCTIVE
-MORE MOTIVATED
-TAKE GREATER INTEREST IN THE JOB.
-asking questions about change
-listen intensively
-analyse the situations
-compromise
-agree
-make decisions
-discuss openly
-find alternative solutions
-show creative problem solving
-take action
-show optimism
-cooperate
-show enthusiasm
-make action plans



People react positively due to

-more responsibility
-added authority
-gain in status
-more contact with important people
-more freedom
-gain good working conditions
-gain in prestige
-feels the need to change
-desire for change
-bring more good
-gains more respect
-creates more satisfaction
-could provide input.
-good timing for change
-a new challenge



MODEL FOR CHANGE [ Trying to influence your own mind]

1.Study the nature of the change.

2.Monitor the external factors that are positive on change
and negative impact on change.

3.Study the reasons for change / benefits.

4.Identify the positive reasons, such as challenge/opportunities
/ benefits.

5.Prepare a tentative plan.

6.Analyze the probable reactions.

7.Prepare a carefully constructed , cohesive plan.

8.Establish the time table.

9.Identify means to overcome obstacles / short comings.

10.Create a clear picture of future situation.

11.Implement your plan.
12. Keep evaluating the change program.



WHY PEOPLE RESIST
CHANGE

It used to be an accepted fact that everyone resists change. We now know that it is not true. There are many reasons why a person resents (negative attitude) and/or resists (active opposition to) a particular change. Likewise, there are many reasons why a person accepts (neutral attitude) and/or welcomes (positive attitude) a particular change.

Why People Resent or Resist Change

There are many reasons why employees of all sizes/ shapes may react negatively to change.

Personal Loss. People are afraid they will lose something. They might be right or they might be wrong in their fear. Some of the things they might lose are as follows:

Security. They might lose their jobs through a
reduction in force or elimination of their jobs.
Automation and a decline in sales often bring about
this feeling.

Money. They might lose money through a reduction in salary, pay, benefits, or overtime. Or, expenses such as travel may be increased because of a move to another location that is farther from their home.

Pride and satisfaction. They might end up with jobs that
no longer require their abilities and skills.
Friends and important contact. They might be moved to another location where they will no longer have contact with friends and important people. This loss of visibility and daily contacts is very serious for people who are ambitious as well as those with a strong need for love and acceptance.

Freedom.They might be put on a job under a boss who
no longer gives them freedom to do it "their way."
Closer supervision that provides less opportunity
for decision making is a dramatic loss to some
people.

Responsibility.Their jobs might be reduced to menial
tasks without responsibility. This may occur when a
new boss takes over or through changes in methods or
equipment.

Authority. They might lose their position of power and authority over people. This frequently happens when re‑organization takes place or when a new boss decides to usurp some of the authority that an individual had.

Good working conditions. They might be moved from a large private office to a small one or to a desk in a work area with only a partition between people.

Status.Their job title, responsibility, or authority
might be reduced from an important one to a lesser
one with loss of status and recognition from others.
This also happens when another layer of management
is inserted between a subordinate and manager.

No Need.

The typical reaction is, "What's the matter with the way things are now?" Or, "I don't see any reason why we should change."
More Harm Than Good.

This is even stronger than the previously mentioned "No Need". People really feel it is a mistake ‑ that it will cause more problems that it is worth. Sometimes this reaction is justified. It is particularly common when people at the "bottom" of an organization feel that top management makes changes without knowing what is going on "down on the line."

Lack of Respect.

When people have a lack of respect and/or negative attitude toward the person responsible for making the change, there is a strong tendency to resent and even resist it. Their feelings do not allow them to look at the change objectively.

Objectionable Manner.

Sometimes change is ordered in such a way that the people resent and/or resist because they do not like being told what to do.

Negative Attitude.

People with a negative attitude toward the organization, the job and/or the boss are very apt to resent or resist change no matter what it is.

No Input.

One of the most significant reasons is the fact that the people who felt they should have been asked were not asked for their ideas concerning the change.

Personal Criticism.

Whether or not the change is actually criticizing the things that were previously done or the way in which they were done, people may look upon the change as a personal criticism.


Creates Burdens.

Some changes add more work and with it confusion, mistakes and other negative results.

Requires Effort.

The change will obviously require more effort. Much of the effort accomplishes very little, if anything. Whenever changes require more time and effort, people are apt to resent and even resist them, particularly if no rewards accompany the extra effort.

Bad Timing.

The timing of a change is very important to its acceptance. If it comes at a time when people are already having problems, the change is usually resented and probably resisted by those who are supposed to implement it.

Challenge to Authority.

Some people are testing their power and influence by simply refusing to do it.

Secondhand Information.

Some people are very sensitive about the way they learned of the change. If they found out about if from a secondhand source, they might resist it until they hear it "from the horses mouth."

What is the Real Reason for Resentment or Resistance?

Managers often have difficulty in determining the real reason why subordinates resent and/or resist a change. They may feel that the subordinates are just being stubborn or that they are afraid they will lose something. The real reason may be entirely different.
------------------------------------------------------------------
WHY PEOPLE ACCEPT OR
WELCOME CHANGE

While some people resent and/or resist change, others accept and welcome it. The degree to which these opposites occur depends on many factors. Some of the reasons for positive reaction to change are described in this section.

Personal Gain.

When changes are made, some people may gain such things as the following:

Security.

They feel more secure in their job because of the change. Perhaps more of their skills will be used.

Money.

They may get a salary increase, more benefits, an incentive or profit‑sharing programme, or more overtime.

Authority

They may be promoted to a position of greater authority, or they may get a new boss who gives them more authority than they had under the previous boss.

StatuslPrestige.

They may get a new title, a new office, or a new responsibility, their boss may have assigned more responsibility, or they may have a new boss who assigns more responsibility than the previous one did.
Better working conditions.

They may get a new working schedule, new equipment, or other conditions that make the job easier or more enjoyable.

Self‑satisfaction.

They may get new satisfaction or feeling of achievement because of the change. Perhaps the new job gives them more of a change to use their abilities, or the boss may eliminate some of the obstacles that had prevented them from doing their best.

Better personal contacts.

They might be located in a place where they will have closer contact with influential people. Their visibility is very important to some people.

Less time and effort.

The change may make their job easier and require less time and effort.

Provides a New Challenge.

While some people look at a change negatively because it requires effort and perhaps risk, others will be eager for it because it provides a new challenge.

Likes/Respects the Source.

If people have a positive attitude toward the person or the department they represent, they will probably accept and even welcome the change.
Likes Manner.

People who are asked to do things instead of told to do them may react very positively. Someone described the most important words in the English language as follows:

Five most important words:"I am proud of you."
Four most important words:"What is your opinion?"
Three most important words:"If you please."
Two most important words:"Thank you."
One most important word:"You (or possibly We)."

The tone may have much to do with resentment or acceptance.

Reduces Boredom.

Changes that are designed to reduce boredom will be welcomed by some.

Provides Input.

One of the most powerful approaches to get acceptance is to ask for input before the final decision is made.

Desires Change.

Some people will react to change by thinking or saying, "It's about time." In other words, they have been anxious for the change to occur.

Improves Future.

Some changes will open up new avenues for future success in the organization. People will be provided with opportunities to show what they can do. Future possibilities include promotion, more money, more visibility, more recognition and more self­satisfaction.

Right Time.

Some changes come at just the right time. If more money is needed to pay current bills or to buy a luxury item like a video recorder or a boat or to take a vacation, the change will be welcomed.



CHANGES AND COMMUNICATION

The following steps will help you to minimize resistance:

1.Explain why. Provide all the facts about the reason for changing. If there are risks, acknowledge them but explain why the risk is worth taking.

2.Objectively explain the benefits that could result from the change.

3.Seek questions/clarifications and answer them.

4.Invite participation and ask for suggestions because the people involved know the situation best.

5.Avoid surprise because this stirs unreasoning opposition more than any other factor.

6.Acknowledge the rough spots and explain how you plan to smooth the change.

7.Set standards and explain your expectations.

8.Contact the informal leaders and use their resources.

9.Acknowledge and reinforce the staff's co‑operation and give them feedback on the progress.

10.Keep the two way communications open for suggestions and corrections.

==================================

======================================================================
WHEN YOU MAKE OD INTERVENTION IN YOUR ORGANIZATION,
IT SHOULD INCLUDE '' CULTURE CHANGE'' .

HERE IS A SIMPLE APPROACH/GUIDELINE FOR Creating Culture Change

1. Establish a sense of urgency
Communicate the business situation or reason for implementing the culture change —why is it necessary?
--------------------------------------------------------
2. Create the guiding coalition
Establish a team with the knowledge to initiate change and the power to make the change happen.
------------------------------------------------------------------
3. Develop a vision and strategy
Develop the organization ’s vision for the change and the strategies for implementation.
------------------------------------------------------------------------
4. Communicate the change vision
Share the vision and how it will affect the participants
-----------------------------------------------------------------------------
5. Empower broad-based action
Give the CHANGE team the authority to initiate the changes
----------------------------------------------------------------------------------
6. Generate short-term wins
Work with the practice groups that are mostly likely to
accept THE CHANGE and celebrate their achievements
---------------------------------------------------------------------------------------
7. Consolidate gains and produce more change
Use success to create more success.
-------------------------------------------------------------------------------------
8. Anchor new approaches in the culture
Make the CHANGE initiatives a part of the daily work process of the firm.
============================================================
THE MOST IMPORTANT POINT TO NOTE IN CHANGING ''CULTURE''
IS THE ''TRANSITION'' .

WHY? because transition occurs in the course of every attempt at change.

Transition is the state that change puts people into.
The change is external (the different policy, practice, or structure that the leader is trying to bring about),
while transition is internal (a psychological reorientation that people have to go through before the change can work).

A Method to Managing Transition

Although the details of a transition management plan are unique to each situation, the adviser must help a leader with the following essential steps:
Learn to describe the change and why it must happen, and do so succinctly -- in one minute or less. It is amazing how many leaders cannot do that.
Be sure that the details of the change are planned carefully and that someone is responsible for each detail; that timelines for all the changes are established; and that a communications plan explaining the change is in place.
Understand (with the assistance of others closer to the change) just who is going to have to let go of what -- what is ending (and what is not) in people's work lives and careers -- and what people (including the leader) should let go of.
Make sure that steps are taken to help people respectfully let go of the past. These may include "boundary" actions (events that demonstrate that change has come), a constant stream of information, and understanding and acceptance of the symptoms of grieving, as well as efforts to protect people's interests while they are giving up the status quo.
Help people through the neutral zone with communication (rather than simple information) that emphasizes connections with and concern for the followers,. To keep reiterating the "4 P's" of transition communications:
The purpose: Why we have to do this
The picture: What it will look and feel like when we reach our goal
The plan: Step-by-step, how we will get there
The part: What you can (and need to) do to help us move forward.
Create temporary solutions to the temporary problems and the high levels of uncertainty found in the neutral zone. For example, one high-tech manufacturer, when announcing the closing of a plant, made interim changes in its usual reassignment procedures, bonus compensation plans, and employee communications processes to make sure that displaced employees suffered as little as possible, both financially and psychologically. Such efforts should include transition monitoring teams that can alert the leader to unforeseen problems -- and disband when the process is done.
Help people launch the new beginning by articulating the new attitudes and behaviors needed to make the change work -- and then modeling, providing practice in, and rewarding those behaviors and attitudes. For example, rather than announcing the grandiose goal of building a "world-class workforce," leaders of transition must define the skills and attitudes that such a workforce must have, and provide the necessary training and resources to develop them.


Checklist for change management
Give maximum warning of the change
Explain the reasons
Involve people in the plan and implementation
Communicate, communicate, communicate
Introduce gradually with activities which will show quick results
Training orientation - offer people the chance to develop new, relevant skills
Sell benefits - "what's in it for them" matter more than the organisation!
Take the present situation into account
Always remember the effects on individuals, think of the change curve
Check on how individuals are coping and remember to support them!
=====================================================================================================
MODEL FOR CHANGE [ Trying to influence your own mind]

1.Study the nature of the change.

2.Monitor the external factors that are positive on change
and negative impact on change.

3.Study the reasons for change / benefits.

4.Identify the positive reasons, such as challenge/opportunities
/ benefits.

5.Prepare a tentative plan.

6.Analyze the probable reactions.

7.Prepare a carefully constructed , cohesive plan.

8.Establish the time table.

9.Identify means to overcome obstacles / short comings.

10.Create a clear picture of future situation.

11.Implement your plan.
12. Keep evaluating the change program.


MODEL FOR CHANGE [ Trying to influence others]
1.Explain the reason for change with facts. If there are risks ,
acknowledge them but explain why it is worth taking the risks.

2.Objectively explain the benefits that could result from the
change.

3.Get ready and sell the benefits at all times.

4.Anticipate objections.

5.Listen in depth.

6.Seek questions and clarifications / answer them.

7.Invite participation and ask for suggestions .

8.Avoid surprise because this stirs up unreasoning opposition.

9.Acknowledge the rough spots and show you plan to
manage them.

10.Establish a timetable.

11.Set standards and explain your expectations.

12.Contact the informal leaders and use their resources.

13. Acknowledge the staff cooperation / support.

14.Provide feedback on the progress.

15.Reinforce the positive .
16.Keep the two way communication open.
============================================

CASE ONE

The organisation I am referring to, where we
introduced ERP software for managing the supply
chain management system, with the objective of
-improving the efficiency
-improving the effectiveness
of the supply chain operation.

The organization, I am familiar with is a
-a large manufacturer/ marketer of safety products
-the products are used as [personal protection safety] [ industrial safety]
-the products are distributed through the distributors as well as sold directly
-the products are sold to various industries like mining/fireservices/defence/
as well as to various manufacturing companies.
-the company employs about 235 people.
-the company has the following functional departments
*marketing
*manufacturing
*sales
*finance/ administration
*human resource
*customer service
*distribution
*warehousing/ transportation
*TQM
==============================================
HOW did we INITIATE CHANGE

Often it is easier to carry out a job if there is a specific plan to follow. When major changes are to be installed, careful planning and preparation are necessary. Strengthening the forces promoting the change and weakening resistance to it are the main tasks.

CREATE A CLIMATE FOR CHANGE

How people react to proposed changes is greatly influenced by the kind of climate for change that the manager/supervisor has created in the department.

HOW IS THE RIGHT KIND OF CLIMATE CREATED?

Supervisors and managers who have enthusiasm for progress and change build a healthy climate.

Creating the right climate is more than just passing on changes. It involves:

Encouraging employees to seek ways of improving their jobs.

Seeking suggestions and ideas from employees.

This requires the manager/supervisor to listen and seriously consider suggestions. It is easy to see that there is a great deal of ego involvement in coming forth with an idea for improvement. Change can become an exciting and dynamic way of life. The manager/supervisor determines the climate in which they initiate change.
GET READY TO SELL

Much of the difficulty in getting co‑operation stems from the employees lack of understanding of how the change will affect them. With a little effort, managers/supervisors can find most of the answers to employees' questions before they are even asked. Answers to these questions would be useful.

What is the reason for the change? Whom will it benefit and how? Will it inconvenience anyone, if so, for how long? Will training or re‑training be necessary? When does it go into effect?

Armed with the answers to these questions a manager/supervisor can head off many objections and can develop a plan to present the change.

IDENTIFY THE SOURCES OF HELP

Why should you, the managers and supervisors, shoulder the burden alone? Staff can frequently be a great help in preparing to sell a change by explaining technical aspects and demonstrating new techniques.

One of the most overlooked sources of help in introducing changes are the informal leaders in the work group. With their help the job becomes easier. Giving recognition to informal leaders puts them in a co‑operative frame of mind.

Since union stewards are often informal leaders, their co‑operation ought to be solicited. The backing of union stewards makes the job easier.
ANTICIPATE OBJECTIONS

Change that upsets routines, requires new knowledge or skills, or inconveniences people are bound to meet with some objections or resistance. Looking at a change from the employees point of view will usually be enough to help determine what their objections are likely to be. Knowing the objections, we can, with a little creative thought, turn these objections into advantages.

Showing the staff with reason or logic will not do the job. Managers/supervisors have to convince people that the change is really best for them and that will not happen until their objections are dealt with seriously.

SELL BENEFITS

Everyone is concerned with, "What's in it for me?"

"Will the change mean more satisfying work. greater security. opportunity to show what I can do. more responsibility. more pay. less fatigue. less confusion. greater independence?"

The benefits used to motivate people to co‑operate should be put on as personal a level as possible. It would be dishonest, however, not to recognise any disadvantages that a change may bring. These can usually be countered with long range benefits.

One of the techniques that is helpful in identifying the characteristics and values of the proposed changed condition is a "Word Picture". The picture makes the new condition desirable in the minds of the staff.

A)One of the ways this concept of "word picture" is used, is the physical change in office layout or new equipment or any other physical changes.
B)To picture or model a change in policy, organization or operation is more difficult than the physical change. The principle is the same. The picture can help in communicating the desirability of the change and in fine tuning the change because it makes it possible to discuss how things will operate. It may take the form of a flow chart, an organization chart or a description of relationships.

To use this approach for deciding whether to initiate a change, you can take the following steps:

Describe as clearly as possible the present situation.

Describe as clearly as possible the desired situation.

Analyse what specific changes will have to take place in the key factors involved to produce the desired situation. Look at such key factors as bosses, employees, equipment, physical environment, policies and procedures, work methods, materials and time. Identify the relevant factors.

Assess the strengths of the forces promoting the desired situation and of those resisting it.

Determine what action to take. Choices are:

A)Do nothing, the resistant forces are stronger than the forces promoting change.

B)Act to strengthen the promoting forces and/or to weaken resistance, by concentrating one's efforts on the key factors.
LISTEN IN DEPTH

Employees have a right to be heard. If employees are treated with respect, they probably will respond in kind. They will feel better too, if they know their concerns have been considered.

FOLLOW‑UP

After having conscientiously sold the benefits of a change, it is tremendously important that the managers/supervisors see that their promises have materialized. A sincere interest in how the change has affected the employee and a willingness to make adjustments, help build the climate in which future changes will be initiated.

AS A MOTIVATION, WE INTRODUCE AN INCENTIVE SYSTEM,
WHERE ALL MANAGERS/ STAFF WOULD GAIN A BONUS
OF 50% OF THE PRODUCTIVITY GAIN DURING THE FIRST
2 YEARS OF IMPLEMENTATION.
---------------------------------------------------------------------------------
CASE TWO

As this is a company, which manufactures/ markets technical
products, the management decided to train every staff member
in the features/ benefits/ applications of all the core products.

-the company used the ''intranet'' to provide the knowledge.

-the staff were guided through a classroom session initially.

-the course was self study.

-for any clarifications, the staff could approach the respective product manager.

-the staff were given a monthly test --online.

-at the end of the sixth month,

MS 25 Question 2

Question 2 Describe various emerging organizational forms and structures and their advantages and disadvantages. Discuss with reference to your organization or an organization you are familiar with which requires restructuring. What type of structure do you choose and why? Describe the relevance of it.

TYPES OF ORGANIZATION

HORIZONTAL ORGANIZATION
Horizontal organizations consist of teams which are organized around business processes and which are responsible for the results they generate. By flattening portions of the organization and holding the team members accountable for results, it asserts that decisions will be made more quickly and more consistently with business objectives. This tool seeks to reduce problems with cross-functional coordination by ensuring that the team members have the necessary skills to have end-to-end accountability for the process.
Approach
The following steps are critical to creating a horizontal organization:
Organize teams around the most critical business processes.
Give team members ownership of the process and assign a clear process leader.
Cross-train team members for the range of skills needed for their process.
Tie performance measures directly to customer requirements for the process, and reward individuals for individual and team contributions.
Create career development paths consistent with developing team consistent with developing team skills.
Redefine managers' roles to focus on enabling teams to perform through training, coaching, sharing, information, and setting strategic direction.
Benefits
Horizontal organizations are often used to structure processes which requires extensive cross-functional coordination. This tool increases the responsiveness and productivity of an organization. Additionally, horizontal organizations can be used to balance local and global needs within a multinational corporation by creating a network linking the disparate operations.
[these types of organization structure are still very popular with the
''brick and mortar '' type of manufacturing / marketing cos.
these organization are visible and can be seen in types like
-product divisions
-business divisions
-geographical divisions
-functional divisions
etc etc
==========================================###
virtual organization

A virtual organization or company is one whose members are geographically apart, usually working by computer EMAIL and GROUPWARE while appearing to others to be a single, unified organization with a real physical location.

But there is more to virtual organizations then simply replacing the location where people work.
What makes a virtual organization different?
It removes many barriers - especially that of time and location.
It emphasizes concentrating on new services and products, especially those with intensive information and knowledge characteristics, rather than concentrating on cost savings made possible by removing the barriers.
It goes beyond outsourcing and strategic alliances and is more flexible in:
that it has continuously changing partners,
the arrangements are loose and goal oriented,
emphasizes the use of knowledge to create new products and services,
its processes can change quickly by agreement of the partners.
What are the steps to a virtual organization?
Often the steps here go through:
outsourcing mainly to reduce costs where there is some experience in working at a distance, but three is one dominant party and high certainty of what everyone must do.
forming strategic alliances to share the work and gain experience in developing and sharing common goals. Here there is no dominant party although the parties are fixed. and
then becoming virtual organizations to achieve flexibility. Now the partners themselves can quickly change, with greater emphasis on the use of knowledge to create new and innovative products.
Why virtual?
What are the reasons for organizations becoming virtual. These include:
Globalization, with growing trends to include global customers,
Ability to quickly pool expert resources,
Creation of communities of excellence,
Rapidly changing needs,
Increasingly specialized products and services,
Increasing required to use specialized knowledge

[these types of organization structure are becoming very popular with the
''SERVICE '' type of cos.
these organization are visible and can be seen in types like
-insurance
-financial
-consulting
-professional services
etc etc
=========================================================###

INVERTED PYRAMID

Many of today's leaders view their organization as a pyramid, with senior leadership atop the apex, disseminating orders and snapping the proverbial finger expecting immediate responses. Below him or her reside lower echelon leaders and workers organized in subordinate tiers.

This construct is irrespective of your organization's size. If you want to succeed you need to get to the top. Your organization then succeeds because you pulled them to victory.

This perception of leadership has been the norm in nearly every military, governmental and civilian organization.

We grew up in it, we're comfortable with it and we expect to lead in the same structure. Control often rests with one individual. Leaders view workers as personnel to be positively or negatively persuaded to achieve the desired goals of the unit or organization.

THIS ABOVE IS A PYRAMID STRCUTURE.

Consider for an instant, a notion that subordinate tiers are not meant to be supporting of those above them, but instead supported by those placed in leadership positions below them. Envision the organizational pyramid inverted.

The leader stands at the bottom of the organization, supporting those who actually make the mission happen. In this organization the leader doesn't ask, "What are you doing for me?" but instead correctly queries the subordinate, "What can I do to help you?" or "What do you need to be successful?"

This simple variation of a leader's perspective creates an enormous difference in a leader's efficacy. The subordinate, doing the work, is empowered with the resources and the freedom to make the best decision for the particular process or task assigned to them. The individual now thrives in the environment where they are entrusted to make their process, system or task more effective. The organization's leader is successful because his or her personnel push, pushed the unit and its mission to achieve its goals.


To dispose of this misconception, visualize a leader pivoting the inverted pyramid around its point. The leader's actions project a new direction for the top or base of the pyramid. This shift in orientation is the leader's vision. He or she projects the desired course for the unit but the organization itself finds the most effective means and completes the journey.

THIS IS THE INVERTED PYRAMID STRUCTURE.
[these types of organization structure are popular with the
''DIRECT MARKETING '' type of cos.
these organization are visible and can be seen in types like
-COSMETIC DOOR TO DOOR SELLING.
-DOMESTIC APPLIANCES DOOR TO DOOR SELLING
etc etc
========================================================###
Boundaryless Organization:
What are the boundaries?
Vertical - Boundaries between layers within an organization
Classic Example: Military organization
Problem: Someone in a lower layer has a useful idea; "Chain of command" mentality
Horizontal - Boundaries which exist between organization functional units.
Each unit has a singular function.
Problem: Each unit maximize their own goals but not the overall goal of the organization
External - Barriers between the organization and the outside world (customers, suppliers, other government entities, special interest groups, communities).
Customers are the most capable of identifying major problems in the organization and are interested in solutions.
Problem: Lose sight of the customer needs and supplier requirements
Geographic - Barriers among organization units located in different countries
Problem: Isolation of innovative practices and ideas
What is a boundaryless organization?
One that makes all of these barriers much more permeable than they are now; loosen boundaries
Let information/ideas/resources/energy flow throughout the organization and into others.
Can an organization be completely boundaryless? No -- there will always have some hierarchy, functional divisions, geographic boundaries, limits between organization


BENEFITS

Quick Market Intelligence - direct customer feedback .
SPEEDY New Product Introduction.
RAPID Advanced Manufacturing Techniques.
Quality initiatives .
Quality focused CULTURE
OPERATION Benefits
Speed
Flexibility
Integration
Innovation

[these types of organization structure are with the
'' IT COS '' type of SOFTWARE/ SOLUTIONS cos.
these organization are visible and can be seen in types like
-IT
-ITES
-BPO SERVICES
etc etc
===================================================
Matrix structure

Different structures can be combined together. When one has two parallel
organizational structures this is called a matrix structure. The idea is to combine the
advantages of two structures, but this has the obvious disadvantage of being harder to
coordinate and introducing more potential conflict.
In the past most large companies were centralized – that is, involved structures in
which decisions were taken at the centre or upper levels of organization. Just as there
has been a move to flatter organizations, so there has been a move to decentralized
ones.
**MATRIX STRUCTURE
Reinforces & broadens technical excellence
Facilitates efficient use of resources
Balances conflicting objectives of the organization
Increases power conflicts
Increases confusion & stress for 2-boss employees
Impedes decision making
###############################################################
MECHANISTIC ORGANIZATION
mechanistic organizations are often appropriate in stable environments and for routine tasks and technologies. In some ways similar to bureaucratic structures, mechanistic organizations have clear, well-defined, centralized, vertical hierarchies of command, authority, and control. Efficiency and predictability are emphasized through specialization, standardization, and formalization. This results in rigidly defined jobs, technologies, and processes. The term mechanistic suggests that organizational structures, processes, and roles are like a machine in which each part of the organization does what it is designed to do, but little else.

The term "organic" suggests that, like living things, organizations change their structures, roles, and processes to respond and adapt to their environments. Organic structures are appropriate in unstable, turbulent, unpredictable environments and for non-routine tasks and technologies. For organizations coping with such uncertainty, finding appropriate, effective, and timely responses to environmental challenges is of critical importance. Organic organizations are characterized by:
decentralization
flexible, broadly defined jobs
interdependence among employees and units
multi-directional communication
employee initiative
relatively few and broadly defined rules, regulations, procedures, and processes
employee participation in problem solving and decision making, often interactively and in groups
#######################################################################

Discuss the strategies adopted for organizational restructuring in an organisation you are familiar with. Discuss reasons for organizational restructuring?
The organization, I am familiar with is a
-a large manufacturer/ marketer of safety products
-the products are used as [personal protection safety] [ industrial safety]
-the products are distributed through the distributors as well as sold directly
-the products are sold to various industries like mining/fireservices/defence/
as well as to various manufacturing companies.
-the company employs about 235 people.
-the company has the following functional departments
*marketing
*manufacturing
*sales
*finance/ administration
*human resource
*customer service
*distribution
*warehousing/ transportation
*TQM
---------------------------------------------------------------
The above company ,initially, operated as a market structures company.
As the company added more technical products, it became necessary
to re-organize the company.
-we conducted customer survey.
-we conducted an in-house operation audit.
-we conducted HR audit.
BASED ON THE FINDINGS, WE REVIEWED THE FOLLOWING

Basic Characteristics of Organizational Structure
Division of labor: dividing up the many tasks of the organization into specialized jobs
Hierarchy of authority: Who manages whom.
Span of control: Who manages whom.
Line vs staff positions
Decentralization
Hierarchy of Authority
Tall vs flat hierarchies
Autonomy and control
Communication
Size
Span of Control
A wide span of control: a large number of employees reporting,
A narrow span of control: a small number employees reporting
The appropriate span of control depends on the experience, knowledge and skills of the employees and the nature of the task.
Line vs Staff Positions
Line vs Staff:
Line positions are those in which people are involved in producing the main goods or service or make decisions relating to the production of the main business.
Staff positions These are positions in which people make recommendations to others but are not directly involved in the production of the good or service
Decentralization
The extent to which decision making is concentrated in a few people or dispersed through out the organization
Advantage: benefits associated with greater participation and moving the decision closest towards implementation
Disadvantage: Lack of perspective and information, lack of consensus

Integration
Hierarchy of authority
Liaison roles
Teams, committees, task forces
Standardization & formalization
Mechanistic & Organic Designs
Mechanistic: tallness in hierarchy, specialization, centralization in authority, formalization. Work best under stable conditions
Organic: flatness, generalization, decentralization flexibility Best fit dynamic conditions and complex technology
Effectiveness Criteria
Output approach
Internal process approach
Systems resource approach
Stakeholder approach
Effectiveness & Structure
Size and structure
Complexity
Differentiation
Decentralization
Formalization
Structure and satisfaction
Decentralization
Span of control
Backwards & Forwards
Summing up: we examined the characteristics of organizational structure, differentiation and coordination. Mechanistic and organic designs were discussed and organizational effectiveness.
==============================================================
BASED ON THE TOTAL FINDINGS, WE DECIDED ON A
-PRODUCT GROUP BASED '' MATRIX'' STRUCTURE. THIS STRUCTURE
GAVE THE COMPANY
-better / effective coordination with R&D.
-better / effective cooperation with SALES TEAM.
-BETTER CUSTOMER SERVICE ON TECHNICAL PRODUCTS.
###########################################################
2. Describe any two types of interventions and their use in bringing organizational change. Discuss with reference to your organization or an organization you are familiar with where change has taken place and the intervention used. Briefly describe the organization you are referring to


OD INTERVENTIONS DO CREATE BOTH POSITIVE
AND NEGATIVE IMPACT.

THIS IMPACT IS CREATED BY THE CHANGE.

THOSE WHO SHOW THE NEGATIVES,

often show behaviors like
-BECOME LESS PRODUCTIVE
-LACK OF INTEREST IN THE JOB.
-DEMOTIVATED
-argue
-blame
-criticise
-avoid communication
-delay everything
-provide lots of exccuse
-sulk
-resign / go
-show indifference
-tension
-show outbursts
-remain silent
-sarcastic remarks
-show inflexibility


People react negatively due to
-reduction in responsibility
-reduction in authority
-dent in pride
-loss of contact with important people
-loss of freedom
-loss of good working conditions
-loss of status
-feels there is no need to change
-no need for change
-bring more harm then good
-lack of consultation
-creates more burden
-could not provide any input.
-requires extra effort without reward.
-poor timing
===============================================
THOSE WHO SHOW THE POSITIVES,

often show behaviors like


-ARE MORE PRODUCTIVE
-MORE MOTIVATED
-TAKE GREATER INTEREST IN THE JOB.
-asking questions about change
-listen intensively
-analyse the situations
-compromise
-agree
-make decisions
-discuss openly
-find alternative solutions
-show creative problem solving
-take action
-show optimism
-cooperate
-show enthusiasm
-make action plans



People react positively due to

-more responsibility
-added authority
-gain in status
-more contact with important people
-more freedom
-gain good working conditions
-gain in prestige
-feels the need to change
-desire for change
-bring more good
-gains more respect
-creates more satisfaction
-could provide input.
-good timing for change
-a new challenge
----------------------------------------------------------------------------------

INTERVENTIONS /CHANGES AND COMMUNICATION

The following steps will help you to minimize resistance:

1.Explain why. Provide all the facts about the reason for changing. If there are risks, acknowledge them but explain why the risk is worth taking.

2.Objectively explain the benefits that could result from the change.

3.Seek questions/clarifications and answer them.

4.Invite participation and ask for suggestions because the people involved know the situation best.

5.Avoid surprise because this stirs unreasoning opposition more than any other factor.

6.Acknowledge the rough spots and explain how you plan to smooth the change.

7.Set standards and explain your expectations.

8.Contact the informal leaders and use their resources.

9.Acknowledge and reinforce the staff's co‑operation and give them feedback on the progress.

10.Keep the two way communications open for suggestions and corrections.

==================================

======================================================================
WHEN YOU MAKE OD INTERVENTION IN YOUR ORGANIZATION,
IT SHOULD INCLUDE '' CULTURE CHANGE'' .

HERE IS A SIMPLE APPROACH/GUIDELINE FOR Creating Culture Change

1. Establish a sense of urgency
Communicate the business situation or reason for implementing the culture change —why is it necessary?
--------------------------------------------------------
2. Create the guiding coalition
Establish a team with the knowledge to initiate change and the power to make the change happen.
------------------------------------------------------------------
3. Develop a vision and strategy
Develop the organization ’s vision for the change and the strategies for implementation.
------------------------------------------------------------------------
4. Communicate the change vision
Share the vision and how it will affect the participants
-----------------------------------------------------------------------------
5. Empower broad-based action
Give the CHANGE team the authority to initiate the changes
----------------------------------------------------------------------------------
6. Generate short-term wins
Work with the practice groups that are mostly likely to
accept THE CHANGE and celebrate their achievements
---------------------------------------------------------------------------------------
7. Consolidate gains and produce more change
Use success to create more success.
-------------------------------------------------------------------------------------
8. Anchor new approaches in the culture
Make the CHANGE initiatives a part of the daily work process of the firm.
============================================================
THE MOST IMPORTANT POINT TO NOTE IN CHANGING ''CULTURE''
IS THE ''TRANSITION'' .

WHY? because transition occurs in the course of every attempt at change.

Transition is the state that change puts people into.
The change is external (the different policy, practice, or structure that the leader is trying to bring about),
while transition is internal (a psychological reorientation that people have to go through before the change can work).

A Method to Managing Transition

Although the details of a transition management plan are unique to each situation, the adviser must help a leader with the following essential steps:
Learn to describe the change and why it must happen, and do so succinctly -- in one minute or less. It is amazing how many leaders cannot do that.
Be sure that the details of the change are planned carefully and that someone is responsible for each detail; that timelines for all the changes are established; and that a communications plan explaining the change is in place.
Understand (with the assistance of others closer to the change) just who is going to have to let go of what -- what is ending (and what is not) in people's work lives and careers -- and what people (including the leader) should let go of.
Make sure that steps are taken to help people respectfully let go of the past. These may include "boundary" actions (events that demonstrate that change has come), a constant stream of information, and understanding and acceptance of the symptoms of grieving, as well as efforts to protect people's interests while they are giving up the status quo.
Help people through the neutral zone with communication (rather than simple information) that emphasizes connections with and concern for the followers,. To keep reiterating the "4 P's" of transition communications:
The purpose: Why we have to do this
The picture: What it will look and feel like when we reach our goal
The plan: Step-by-step, how we will get there
The part: What you can (and need to) do to help us move forward.
Create temporary solutions to the temporary problems and the high levels of uncertainty found in the neutral zone. For example, one high-tech manufacturer, when announcing the closing of a plant, made interim changes in its usual reassignment procedures, bonus compensation plans, and employee communications processes to make sure that displaced employees suffered as little as possible, both financially and psychologically. Such efforts should include transition monitoring teams that can alert the leader to unforeseen problems -- and disband when the process is done.
Help people launch the new beginning by articulating the new attitudes and behaviors needed to make the change work -- and then modeling, providing practice in, and rewarding those behaviors and attitudes. For example, rather than announcing the grandiose goal of building a "world-class workforce," leaders of transition must define the skills and attitudes that such a workforce must have, and provide the necessary training and resources to develop them.


Checklist for change management
Give maximum warning of the change
Explain the reasons
Involve people in the plan and implementation
Communicate, communicate, communicate
Introduce gradually with activities which will show quick results
Training orientation - offer people the chance to develop new, relevant skills
Sell benefits - "what's in it for them" matter more than the organisation!
Take the present situation into account
Always remember the effects on individuals, think of the change curve
Check on how individuals are coping and remember to support them!
=====================================================================================================
MODEL FOR CHANGE [ Trying to influence your own mind]

1.Study the nature of the INTERVENTION / change.

2.Monitor the external factors that are positive on change
and negative impact on change.

3.Study the reasons for change / benefits.

4.Identify the positive reasons, such as challenge/opportunities
/ benefits.

5.Prepare a tentative plan.

6.Analyze the probable reactions.

7.Prepare a carefully constructed , cohesive plan.

8.Establish the time table.

9.Identify means to overcome obstacles / short comings.

10.Create a clear picture of future situation.

11.Implement your plan.
12. Keep evaluating the change program.


MODEL FOR CHANGE [ Trying to influence others]
1.Explain the reason for change with facts. If there are risks ,
acknowledge them but explain why it is worth taking the risks.

2.Objectively explain the benefits that could result from the
change.

3.Get ready and sell the benefits at all times.

4.Anticipate objections.

5.Listen in depth.

6.Seek questions and clarifications / answer them.

7.Invite participation and ask for suggestions .

8.Avoid surprise because this stirs up unreasoning opposition.

9.Acknowledge the rough spots and show you plan to
manage them.

10.Establish a timetable.

11.Set standards and explain your expectations.

12.Contact the informal leaders and use their resources.

13. Acknowledge the staff cooperation / support.

14.Provide feedback on the progress.

15.Reinforce the positive .
16.Keep the two way communication open.
============================================

CASE ONE

The organisation I am referring to, where we
introduced ERP software for managing the supply
chain management system, with the objective of
-improving the efficiency
-improving the effectiveness
of the supply chain operation.

The organization, I am familiar with is a
-a large manufacturer/ marketer of safety products
-the products are used as [personal protection safety] [ industrial safety]
-the products are distributed through the distributors as well as sold directly
-the products are sold to various industries like mining/fireservices/defence/
as well as to various manufacturing companies.
-the company employs about 235 people.
-the company has the following functional departments
*marketing
*manufacturing
*sales
*finance/ administration
*human resource
*customer service
*distribution
*warehousing/ transportation
*TQM
==============================================
HOW did we INITIATE CHANGE

Often it is easier to carry out a job if there is a specific plan to follow. When major changes are to be installed, careful planning and preparation are necessary. Strengthening the forces promoting the change and weakening resistance to it are the main tasks.

CREATE A CLIMATE FOR CHANGE

How people react to proposed changes is greatly influenced by the kind of climate for change that the manager/supervisor has created in the department.

HOW IS THE RIGHT KIND OF CLIMATE CREATED?

Supervisors and managers who have enthusiasm for progress and change build a healthy climate.

Creating the right climate is more than just passing on changes. It involves:

Encouraging employees to seek ways of improving their jobs.

Seeking suggestions and ideas from employees.

This requires the manager/supervisor to listen and seriously consider suggestions. It is easy to see that there is a great deal of ego involvement in coming forth with an idea for improvement. Change can become an exciting and dynamic way of life. The manager/supervisor determines the climate in which they initiate change.
GET READY TO SELL

Much of the difficulty in getting co‑operation stems from the employees lack of understanding of how the change will affect them. With a little effort, managers/supervisors can find most of the answers to employees' questions before they are even asked. Answers to these questions would be useful.

What is the reason for the change? Whom will it benefit and how? Will it inconvenience anyone, if so, for how long? Will training or re‑training be necessary? When does it go into effect?

Armed with the answers to these questions a manager/supervisor can head off many objections and can develop a plan to present the change.

IDENTIFY THE SOURCES OF HELP

Why should you, the managers and supervisors, shoulder the burden alone? Staff can frequently be a great help in preparing to sell a change by explaining technical aspects and demonstrating new techniques.

One of the most overlooked sources of help in introducing changes are the informal leaders in the work group. With their help the job becomes easier. Giving recognition to informal leaders puts them in a co‑operative frame of mind.

Since union stewards are often informal leaders, their co‑operation ought to be solicited. The backing of union stewards makes the job easier.
ANTICIPATE OBJECTIONS

Change that upsets routines, requires new knowledge or skills, or inconveniences people are bound to meet with some objections or resistance. Looking at a change from the employees point of view will usually be enough to help determine what their objections are likely to be. Knowing the objections, we can, with a little creative thought, turn these objections into advantages.

Showing the staff with reason or logic will not do the job. Managers/supervisors have to convince people that the change is really best for them and that will not happen until their objections are dealt with seriously.

SELL BENEFITS

Everyone is concerned with, "What's in it for me?"

"Will the change mean more satisfying work. greater security. opportunity to show what I can do. more responsibility. more pay. less fatigue. less confusion. greater independence?"

The benefits used to motivate people to co‑operate should be put on as personal a level as possible. It would be dishonest, however, not to recognise any disadvantages that a change may bring. These can usually be countered with long range benefits.

One of the techniques that is helpful in identifying the characteristics and values of the proposed changed condition is a "Word Picture". The picture makes the new condition desirable in the minds of the staff.

A)One of the ways this concept of "word picture" is used, is the physical change in office layout or new equipment or any other physical changes.
B)To picture or model a change in policy, organization or operation is more difficult than the physical change. The principle is the same. The picture can help in communicating the desirability of the change and in fine tuning the change because it makes it possible to discuss how things will operate. It may take the form of a flow chart, an organization chart or a description of relationships.

To use this approach for deciding whether to initiate a change, you can take the following steps:

Describe as clearly as possible the present situation.

Describe as clearly as possible the desired situation.

Analyse what specific changes will have to take place in the key factors involved to produce the desired situation. Look at such key factors as bosses, employees, equipment, physical environment, policies and procedures, work methods, materials and time. Identify the relevant factors.

Assess the strengths of the forces promoting the desired situation and of those resisting it.

Determine what action to take. Choices are:

A)Do nothing, the resistant forces are stronger than the forces promoting change.

B)Act to strengthen the promoting forces and/or to weaken resistance, by concentrating one's efforts on the key factors.
LISTEN IN DEPTH

Employees have a right to be heard. If employees are treated with respect, they probably will respond in kind. They will feel better too, if they know their concerns have been considered.

FOLLOW‑UP

After having conscientiously sold the benefits of a change, it is tremendously important that the managers/supervisors see that their promises have materialized. A sincere interest in how the change has affected the employee and a willingness to make adjustments, help build the climate in which future changes will be initiated.

AS A MOTIVATION, WE INTRODUCE AN INCENTIVE SYSTEM,
WHERE ALL MANAGERS/ STAFF WOULD GAIN A BONUS
OF 50% OF THE PRODUCTIVITY GAIN DURING THE FIRST
2 YEARS OF IMPLEMENTATION.
---------------------------------------------------------------------------------
CASE TWO

As this is a company, which manufactures/ markets technical
products, the management decided to train every staff member
in the features/ benefits/ applications of all the core products.

-the company used the ''intranet'' to provide the knowledge.

-the staff were guided through a classroom session initially.

-the course was self study.

-for any clarifications, the staff could approach the respective product manager.

-the staff were given a monthly test --online.

-at the end of the sixth month,

THE TOP 10 SCORERS WERE OFFERED A SHORT HOLIDAY,
ALL EXPENSES PAID BY THE COMPANY.
==============================================

MS 01 Question 3

Describe different types and models of decision-making process. Discuss how decision-making is followed in your organization or an organization you are familiar with. Suggest how it could be improved. Briefly describe the organization you are referring to.

Models of Decision Making
1.
• The Rational Model
– Consists of a structured four-step sequence:
• identifying the problem
• generating alternative solutions
• selecting a solution
• implementing and evaluating the solution

2.
Simon’s Normative Model
- Based on premise that decision making is not
rational
- Decision making is characterized by
* limited information processing
* use of rules of thumb or shortcuts
* satisficing
3.
Assets of Group Decision
Making
• Groups can accumulate more knowledge and facts
• Groups have a broader perspective and consider more
alternative solutions
• Individuals who participate in decisions are more satisfied
with the decision and are more likely to support it.
• Group decision making processes serve an important
communication function as well as a useful political
function.

4.
Liabilities of Group Decision
Making
• Groups often work more slowly than individuals.
• Groups decisions involve considerable compromise that
may lead to less than optimal decisions.
• Groups are often dominated by one individual or a small
clique, thereby negating many of the virtues of group
processes.
• Overreliance on group decision making can inhibit
management’s ability to act quickly and decisively when
necessary.


Individual vs. Group Decision
Making
• In establishing objectives, groups are probably superior to
individuals because of the greater amount of knowledge
available to groups.
• In identifying alternatives, the individual efforts of group
members encourage a broad search in various functional
areas of the organization.
• In evaluating alternatives, the collective judgement of the
group, with its wider range of viewpoints, seems superior
to that of the individual decision maker.
===============================================
THE COMPANY USING THE RATIONAL APPROACH.
Basic Guidelines Decision Making
1. Define the problem
This is often where people struggle. They react to what they think the problem is. Instead, seek to understand more about why you think there's a problem.
Defining the problem: (with input from yourself and others)
Ask yourself and others, the following questions:
a. What can you see that causes you to think there's a problem?
b. Where is it happening?
c. How is it happening?
d. When is it happening?
e. With whom is it happening? (HINT: Don't jump to "Who is causing the problem?" When we're stressed, blaming is often one of our first reactions. To be an effective manager, you need to address issues more than people.)
f. Why is it happening?
g. Write down a five-sentence description of the problem in terms of "The following should be happening, but isn't ..." or "The following is happening and should be: ..." As much as possible, be specific in your description, including what is happening, where, how, with whom and why. (It may be helpful at this point to use a variety of research methods. Also see http://www.managementhelp.org/research/research.htm.
Defining complex problems:
a. If the problem still seems overwhelming, break it down by repeating steps a-f until you have descriptions of several related problems.
Verifying your understanding of the problems:
a. It helps a great deal to verify your problem analysis for conferring with a peer or someone else.
Prioritize the problems:
a. If you discover that you are looking at several related problems, then prioritize which ones you should address first.
b. Note the difference between "important" and "urgent" problems. Often, what we consider to be important problems to consider are really just urgent problems. Important problems deserve more attention. For example, if you're continually answering "urgent" phone calls, then you've probably got a more "important" problem and that's to design a system that screens and prioritizes your phone calls.
Understand your role in the problem:
a. Your role in the problem can greatly influence how you perceive the role of others. For example, if you're very stressed out, it'll probably look like others are, too, or, you may resort too quickly to blaming and reprimanding others. Or, you are feel very guilty about your role in the problem, you may ignore the accountabilities of others.
----------------------------------------------
2. Look at potential causes for the problem
a. It's amazing how much you don't know about what you don't know. Therefore, in this phase, it's critical to get input from other people who notice the problem and who are effected by it.
b. It's often useful to collect input from other individuals one at a time (at least at first). Otherwise, people tend to be inhibited about offering their impressions of the real causes of problems.
c. Write down what your opinions and what you've heard from others.
d. Regarding what you think might be performance problems associated with an employee, it's often useful to seek advice from a peer or your supervisor in order to verify your impression of the problem.
e.Write down a description of the cause of the problem and in terms of what is happening, where, when, how, with whom and why.
----------------------------------------------------
3.Define the Goal or Objective

In a sense, every problem is a situation that prevents us from achieving previously determined goals. If a personal goal is to lead a pleasant and meaningful life, then any situation that would prevent it is viewed as a problem. Similarly, in a business situation, if a company objective is to operate profitably, then problems are those occurrences which prevent the company from achieving its previously defined profit objective. But an objective need not be a grand, overall goal of a business or an individual. It may be quite narrow and specific. "I want to pay off the loan on my car by May," or "The plant must produce 300 golf carts in the next two weeks," are more limited objectives. Thus, defining the objective is the act of exactly describing the task or goal.
-------------------------------------------------------------------------------------
4. Identify alternatives for approaches to resolve the problem
a. At this point, it's useful to keep others involved (unless you're facing a personal and/or employee performance problem). Brainstorm for solutions to the problem. Very simply put, brainstorming is collecting as many ideas as possible, then screening them to find the best idea. It's critical when collecting the ideas to not pass any judgment on the ideas -- just write them down as you hear them.
-------------------------------------------------------------
5. Select an approach to resolve the problem
When selecting the best approach, consider:
a. Which approach is the most likely to solve the problem for the long term?
b. Which approach is the most realistic to accomplish for now? Do you have the resources? Are they affordable? Do you have enough time to implement the approach?
c. What is the extent of risk associated with each alternative?
-----------------------------------------------------------------------------------------------
6. Plan the implementation of the best alternative (this is your action plan)
a. Carefully consider "What will the situation look like when the problem is solved?"
b. What steps should be taken to implement the best alternative to solving the problem? What systems or processes should be changed in your organization, for example, a new policy or procedure? Don't resort to solutions where someone is "just going to try harder".
c. How will you know if the steps are being followed or not? (these are your indicators of the success of your plan)
d. What resources will you need in terms of people, money and facilities?
e. How much time will you need to implement the solution? Write a schedule that includes the start and stop times, and when you expect to see certain indicators of success.
f. Who will primarily be responsible for ensuring implementation of the plan?
g. Write down the answers to the above questions and consider this as your action plan.
h. Communicate the plan to those who will involved in implementing it and, at least, to your immediate supervisor.
(An important aspect of this step in the problem-solving process is continually observation and feedback.)
--------------------------------------------------------------------------------------------
7. Monitor implementation of the plan
Monitor the indicators of success:
a. Are you seeing what you would expect from the indicators?
b. Will the plan be done according to schedule?
c. If the plan is not being followed as expected, then consider: Was the plan realistic? Are there sufficient resources to accomplish the plan on schedule? Should more priority be placed on various aspects of the plan? Should the plan be changed?
-------------------------------------------------------------------------------------
8. Verify if the problem has been resolved or not
One of the best ways to verify if a problem has been solved or not is to resume normal operations in the organization. Still, you should consider:
a. What changes should be made to avoid this type of problem in the future? Consider changes to policies and procedures, training, etc.
b. Lastly, consider "What did you learn from this problem solving?" Consider new knowledge, understanding and/or skills.
c. Consider writing a brief memo that highlights the success of the problem solving effort, and what you learned as a result. Share it with your supervisor, peers and subordinates
=======================================================

THE ORGANIZATION I AM ASSOCIATED WITH

The organization, I am familiar with is a
-a large manufacturer/ marketer of safety products
-the products are used as [personal protection safety] [ industrial safety]
-the products are distributed through the distributors as well as sold directly
-the products are sold to various industries like mining/fireservices/defence/
as well as to various manufacturing companies.
-the company employs about 235 people.
-the company has the following functional departments
*marketing
*manufacturing
*sales
*finance/ administration
*human resource
*customer service
*distribution
*warehousing/ transportation
*TQM
==============================================
THE COMPANY ANALYSES THE FOLLOWING DATABASE
AND APPLYS THE PROBELM SOLVING/ DECISION
MAKING APPROACH / FINALIZES THE PLAN.


1. External Assessment

Areas for opportunities and threats

* Markets [ what is the market situation, which is forcing the change requirements
*Customers [ how can service the customer -internal / external -better .
* Industry [ is the industry trend ]
* Competition [ is it the competitive situation
*Factors of business [ causing the change]
* Technology [ is it technology change ]

2. Internal Assessment

Areas for strengths, weaknesses, and barriers to success

ORGANIZATION DIMENSIONS
*Culture [ is the working culture change ]
* Organization [ is the organization demanding change ]
* Systems [ is it the systems change ]
* Management practices [ change in managemement process]


OTHER KEY DIMENSIONS

*Cost‑efficiency[ is it for cost efficiency ]
* Financial performance [ is it for financial performance improvement ]
* Quality [ is it for quality performance improvement
*Service [ is it for service performance improvement
*Technology[ is it for technology performance improvement
* Market segments [ is it for sales performance improvement
* Innovation[ is it for performance improvement
*new products[ is it for new product performance improvement
*Asset condition[ is it for financial performance improvement
*productivity[ is it for financial performance improvement

3. Source Strategic objectives and programs

The critical issues that must be addressed if the organization
Is to succeed



Strengths
Weaknesses
Opportunities
Threat

PRIORITY ISSUES

FROM THE ABOVE , DETERMINE THE CORE ISSUES
WHICH NEEDS TO SOLVED WITH YOUR INVESTMENT.

STRATEGIC PROGRAMS

FROM THE ABOVE CORE ISSUES , DETERMINE YOUR
STRATEGIC PROGRAMS.

Mission STATEMENT

VISION STATEMENT

Your CORE PURPOSE

Your CORE OBJECTIVES
Your Core markets;
Your CORE strategic thrusts.

BUSINESS DEFINITION:

The arena of products, services, customers, technologies, distribution methods, and geography in which you'll compete to get results.

VALUES:
Desired attitudes and behavior toward internal and external stakeholders that
will yield the culture and business results you want and that you will execute and turn into
action through

-policy,
-programs,
-processes,
-procedures,
-personnel selection.

­

levels and tiers of strategies

OVERALL FINANCIAL POSTURE
Grow; hold; milk; get out

PRIORITIES AND POSTURES
(Grow; hold; milk)
Market; business unit; product/services


Internal development
Divest
Restructure

COMPETITIVE ADVANTAGE
Cost /Value/ differentiation


EXTERNAL STRATEGIES

Product Convenience
Service Image
Target customer Geography
Distribution Product design
Delivery Quality
Value Reliability
Pricing Advertising/promotion

INTERNAL STRATEGIES

People/skills / Facilities
Organizational / Product
structure / development
Management style /Incentives/rewards
Training Spending
Equipment Sourcing/
manufacturing
technology / Systems
R&D / Service
FINANCING / Quality




Strategy Statement Content

v Priorities and Posture
Business unit
Market
Product
Strategic thrust/competitive advantage
External strategies
Internal strategic thrust
Internal strategies
Strategic fixes

8. Strategic
Program Content

LEADERSHIP: who

OBJECTIVES

KEY STEPS: who, what, when

FINANCIAL AND STRATEGIC
GAIN AND COST

PEOPLE: numbers and skills

COORDINATION REQUIREMENTS:

People and organizational units outside your control who must contribute

LEVERAGE: the high leverage individuals and units who must contribute at lower levels

Strategic
‑Accountability~/Reviews

QUARTERLY: Programs and strategic numbers' progress

INDIVIDUAL OBJECTIVES:
Performance appraisal

REWARDS AND CONSEQUENCES: Based on strategic performance of teams and individuals

MONITORING SYSTEM
=============================================
THE COMPANY ARRIVES AT THE FOLLOWING
DECISIONS AT THE END OF THE SESSIONS:

1.REVENUE BUDGET.
2.GROSS PROFIT BUDGET.
3.NET PROFIT BUDGET.

4.SALES TOTAL FORECAST.
5.SALES BY PRODUCTS.

6.OPERATIONAL EXPENSES BUDGET.
7.FIXED EXPENSES BUDGET.

8.PRODUCTIVITY IMPROVEMENT %
9.PROFITABILITY INCREMENT %
10. RETURN ON INVESTMENT.
==============================================
THE ONLY CHANGE I WOULD MAKE

-seek more time for this workshop exercise,
as we often work in tight time frame.