Organizational Change

August 12, 2015

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Organization Change

Agenda of the Presenatation

Managing
Change
Resistance to
Change
Approaches to
Change
Conclusion
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Organizational Change
Organizational change refers to a modification or transformation of the
organisations structure, process or goods for desired future growth.
Organisational changes can be Reactive OR Proactive :
In structure of an organisation
In organisational operation/ size of workforce
In technology & working practices
In the way role are carried out
In terms & condition or environment

Forces for Change

Internal Forces
Crisis

External Forces

Forces

Technology

Managerial Personnel

Marketing Condition

Work Climate/ Environment

Globalization

Deficiencies in existing system

Social & Political Changes

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Case Study

OUR COMPANY VISION GOES BEYOND BUILDING

BETTER VEHICLES

General Motors
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History & Heritage of General Motors

At the turn of the 20th century there were fewer than 8,000 automobiles in America, many of them
powered by steam or electricity, others had gasoline engines.

An unexpected turnout at the first New York Auto Show in 1900, showed the magnitude of the
publics fascination with the automobile.

General Motors was founded by William Billy Durant on September 16, 1908.

At its inception GM held only the Buick Motor Company, but in a matter of years would acquire
more than 20 companies including Oldsmobile, Cadillac, and Oakland, today known as Pontiac.

Change at General Motor

General motor till 1920 it was becoming the world largest motor manufacturing company.
But with emerging of the Japans automakers the company felt threatened, specially the
emerging of Toyota Japan, who with great extent disturbed the profitability of the GM,
especially in the North American market
During 2009 the company had faced a bankruptcy and had closed several brand and sold out
to china based company

REASON AND FORCES FOR CHANGE OF GM

Forces For
Change

External
Forces
Internal Forces

Change Management Process of General Motor

Cost
Cutting

Cultural
Change

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Planned & Unplanned Changes

Planned Changes and Unplanned Change

PLANNED CHANGE

Change resulting from a deliberate decision

to alter the organization
Companies that wish to move from a
traditional hierarchical structure to one that
facilitates self-managed teams must use a
proactive, carefully orchestrated approach.

UNPLANNED CHANGE

Not all changes are planned.

Unplanned change is imposed on the

organization and is often unforeseen. E.g.
Changes in government regulations and
changes in the economy,

Responsiveness to unplanned change

requires tremendous flexibility and
adaptability on the part of the
organizations.

Managers must be prepared to handle both

planned and unplanned forms of change in
organizations.
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Planned Organization Changes

Changes In Product or Services

Changes In Administration System

Changes In Organizational Size & Structure

Introduction Of New Technology

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Unplanned Organization Changes

Changing Employee Behaviour / Demographics

Performance Gaps

Government Regulation

Economic Competition in the Global Arena

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Case Study

Coca-Cola Is Finding a New Fizz

Coca-Cola is changing its culture, and
also adapting its product line to better
satisfy the demand of customers.
What are your thoughts about the
steps they are taking regarding
these changes?
Do you think the new innovations and changes
will have a positive or a negative impact on
their existing brands? Why?
What other changes would you suggest to help
them remain competitive?

Experiencing
Strategic
OB
2015 SAP SE or an SAP affiliate company.
All rights reserved.

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Case Study Planned and Unplanned change

PLANNED CHANGES
General Motors Paid high salaries to his employees to
about $74 as compared to its rival.
UNPLANNED CHANGE:
General Motors was greately affected by Japan based
Toyota. This became sudden & unforeseen threat to
General Motors profitability.

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CUSTOMER DRIVEN CHANGE AT CONTINENTAL AIRLINES

CONTINENTAL AIRLINES EXECUTIVES CREATED AN
URGENCY TO CHANGE BY LISTENING TO CUSTOMERS &
COMMUNICATING THEIR CONCERNS TO
EMPLOYEES.CUSTOMER DRIVEN CHANGE MOTIVATES
EMPLOYEES TO ENGAGE IN CONTINOUS CHANGE.

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Resistance to Change

Resistance to Change in an Organization

Resistance to change is the act
of opposing or struggling with
modifications or transformations
that alter the status quo in the
workplace.

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Resistance to Change in an Organization

Early signs of resistance
Gossip
Testing
Collectivism of resistance
Individual action
Collective action

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Resistance to Change in an Organization

Visibility of resistance
Covert resistance
Overt resistance
Activity of resistance
Passive resistance
Active resistance

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Common reasons why people resist change

Loss of Job
Bad Communication Strategy
Shock and Fear of the Unknown
Loss of Control
Lack of Competence
Poor Timing
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Common reasons why people resist change .

Lack of Reward
Office Politics
Loss of Support System
Former Change Experience
Empathy and Peer Pressure
Lack of trust and support
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Dealing With Resistance

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Case Study

Uber Resistance to Change

Ugly war is being fought by traditional taxi companies against a new form of competition from Uber
and other ride-sharing services

Historically taxis have fought for their place in the urban transportation spectrum by staging strikes
and paralysing citiesEvaluation of the change

Taxi industrys resistance to the rise of Uber and similar services is a futile attempt to put the brakes
on innovation.

Traditional taxi drivers are complaining about Ubers illegal activities, saying their drivers dont have
official permits and cant charge by the kilometre since they dont have meters.

This is a perfect example of industry players being prisoners of an old way of thinking and
entrenched in the defence of an aging system.

Uber succeeding because it is responding to customers needs and offering a unique and
innovative experience.

Investors took notice: the company has an estimated value of $17 billion (R182bn) after an
influx of funds in June.

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Approaches to Change

Approaches - Change Management

Approach for a Change

Appoint Change Agent

Determine what should be changed

Kind of Change

Individual Affected by Change

Evaluation of the change

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Change Vs Stability

Stability and change, both are important

Stability complements change

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Whats changed in an organization?

People attitudes, leadership skills,

communication skills

Structure Organizational Controls, policies

and procedures

Technology types of equipment or process

that assist organization members in
performance if their job

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Kind of Change

Structural Change

People Change

Clarifying and defining jobs

Change Org structure do meet communication needs
De-centralizing organization to meet cost

Organizations development
Training
Reduce Resistance to change

Technological Change

Deploy tool to increase effectiveness

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Evaluation of the Change

To gain insight into how change itself might be modified to further increase organization
effectiveness

To determine where steps taken to make the change need to modified to increase
effectiveness

To watch signs that further indicate change is necessary.

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Case Study

CASE STUDY

MERGER OF ING VYSYA BANK WITH KOTAK

MAHINDRA BANK

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ORGANISATIONAL CHANGE IN CASE OF MERGER

Kotak decided to expand their business by acquiring ING Vysya Bank

since ING Vysya Bank had a stronger presence in South India while
Kotak had an extended franchise in the West and North India.
The merger created a large financial institution with a vast national
footprint.
Together, the new entity will have over 1,200 branches and 1,900 ATMs
across the country and will become Indias 4th largest private sector
bank.

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RESISTANCE FACED FROM ING VYSYA BANK EMPLOYEES

The new management at Kotak

Mahindra Bank does not have a
Union and believes in outsourcing
its work. What will be the fate of
our employees after the merger?

ING employees and officers wanted

internal MoUs to continue postmerger, and also stressed that perks
and benefits decided by industry body
IBA be continued

Threatened to go on strike on
January 7 the day on which
the ING Vysya Bank was to
seek shareholders nod to
approve the Rs 15,000-crore
merger deal.

S A Sridhar from the ING Vysya Bank

officers association said a tripartite agreement between Kotak
Mahindra Bank (KMB), ING Vysya
Bank, and employees and officers, be
signed which will lay out all points in
detail.

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APPROACHES- EFFECTIVE CHANGE MANAGEMENT

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CONCLUSION

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Q&A

Thank you
Gaurav Hajare
Firuza Karwa
Manish Kanojiya
Ekta Bablani
Shreenivas Mahadik
Rakesh Ojha
Shirley Dias
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