Case studies of managing change in Organisations

Introduction Task 1

The requirements from task 1 are to identify three organizations which have recently changed the way they run their business, the research must include the nature of the organization and its position in the current economy, what changes they bring in the last five years and what are the outcomes of the change.

Objectives of Task 1

Following are the main objectives of Task 1

Investigate a research in 3 organizations which have recently undergone changes in the way the run their business.

What is the nature of these organizations and their current economic climate?

What changes they brought into their organisation.

What are the outcomes of those changes both positive and negative

Produce a report to draw the conclusion of the base of study of these three organisations that how changes effects organization in today’s economy.

Three organisations I have chosen

I have chosen the following three organisations for task 1 of the Unit two “Managing Change in Organization”

Islamic International Medical College Trust (IIMCT)

Paktel GSM (Zong)

Smart Cars

1. Islamic International Medical College Trust (IIMCT)

Islamic International Medical College Trust (IIMCT) was established in 1998 to provide medical education. Initially they start with a medical college at Islamabad Pakistan; they acquire a prominent building at the central location of the city. The trust founder is a retired army general, and a leading cardiologist known worldwide. After two years in 2000 IIMCT opened an Engineering College by the name of Islamic International Engineering College (IIEC) and an institute for the education of computing and information technology by the name of Riphah Institute of Informatics, all these colleges continued their daily activities as individual bodies reporting to trust headquarter; the affiliation of these institutions was with county well-known universities like Hamdard University and University of Engineering and Technology Taxila Pakistan.

Changes in IIMCT

Later on the management of IIMCT feel the need of their own degree awarding body, and this was the point when they decide to go for major change or organizational change. They applied to federal government for the licence of university and received the approval in 2005 by completing all the requirements of having a university licence, and this lead IIMCT to the foundation of Riphah International University.

Now Riphah International University has different departments and faculties, Islamic International Medical College is now known as faculty of medical sciences of Riphah International University (RIU), IIEC is engineering faculty and RII is Faculty of Computing of RIU.

The IIMCT continue its activities under the brand name while Riphah International University is the degree awarding body now.

Recently they have launched different courses in collaboration with University of Bedfordshire UK, and Royal Medical College London. Riphah International University has now 12 faculties with three campuses and three teaching hospitals. Govt of Pakistan have issued them FM radio station and Television licence to the university for educational purposes. RIU have now opened its campus at Dubai in collaboration with Dubai state government.

Outcomes of Change

From above stated details its quite clear that the changes that IIMCT brought into their organization had a very positive impact like

They now have their own degree awarding body

They became eligible to get educational grants for Govt

Have increased the number of faculties / institutes and also the number of students

Govt of Pakistan offers them two govt hospitals and now they are using those as teaching hospitals for their medical students.

Get approval to open overseas campuses.

Able to work in collaboration with UK leading educational institutions.

Have their own FM radio channel and soon will have a TV channel.

Get good job placement for their graduates.

2. Paktel GSM (Zong)

Paktel the pioneer in the telecom industry in Pakistan, start their operation in the mid 90’s. Firstly they provide just ASM services but after the evaluation of GSM technology they also start GSM services. As they were having no competitors in the telecom market, so they were completely dominating the market, a few years after their first competitor came into telecom market an Egyptian company by the name of Orascom Telcom, and the brand name of Mobilink, later on Pakistan telecom also started GSM services by the name of Ufone. The entry of both these companies brought very hard results for Paktel and most of their customers started using services of other companies because of good quality and services, the management of Paktel tried so much to hold their place in the market and for that they offer so many attractive packages but was a hard luck for them and the company goes into completely background when another two companies, Telenor from Norway and Warid Telecom from gulf came into Pakistani market.

Changes in Paktel GSM

After having too much competitors with very good business background and latest technologies it was very hard for Paktel to stay in the current scenario, so the management of the company decide to franchise the company and to sell more than 50 % of the company to the China Mobile Company, which is the universe leading telecom company.

When China Mobile Company became the owner they bring a vast amount of changes in their technology, management, and the way they operate. They changed the brand name from Paktel to Zong, change the company logo, marketing strategy, introduce very attractive packages for customers, and start providing network services in very remote areas of Pakistan, and now they have on third position in having more customers after Mobilink and Ufone.

Outcomes of Change

Following are the impact of change that Paktel management bring into their organization i.e. from Paktel to Zong

Increase in the number of their customers

Now they have updated and latest technology

Have now management team with tons of experience.

Introduce very good and unique ideas and strategies for marketing, and have attracted a big number of customer to use their product

Increase the revenue of the company

Have earn a good name in the telecom sector by providing good services

3. Star Cars

The company is a British company founded in 1994 by a British person Ernie Andreson at Oxford UK. The mission of the company is to provide cars on hiring with good services. By the end of 1999 the company business was amazing and StarCars were having 5 centres at different cities of United Kingdom. And at the end of 2004 the StarCars expanded its business up to 17 centres all over the UK. But as their business increases they were facing problems in carrying out the daily activities. Following is the list of main problems that became the base for change in near future for StarCars.

There was communication problems, the staff members in other centres often found it difficult to sort out wage queries with Oxford. Also when a centre had a problem, such as customer dispute it was difficult to settle because no one seems to have authority at franchise centre, it was the only the founder of the company who make the decisions and was often unavailable.

Because of the distance involved, the mobile mechanic found it difficult to maintain cars all over the country. The mechanics were overworked, and the condition of the cars goes wrong by having no proper attention.

The accountability of each centre was a major problem for the head office.

Because of the geographical distance between centres the staff’s feels isolated, there was often a lack of leadership and some staff became demotivated and staffs turn over also risen.

Change in StarCars

The management of the company decide to organise the company geographically, they divide the company into seven geographical locations and appoint one manager for each region and delegate a lot more responsibilities and power to that individual. The regional manager was assign the responsibility to make daily visits to all the centres in the region, recruit staff and attend a management meeting with the owner and board of directors every two weeks.

They also outsource all car maintenance to another business and allow managers to buy cars for their region based on regional demand, but they must have to provide proper justification for that. They start training programs for mangers and other staff members, and also a good incentive packages.

Outcomes of Change

Following are the main outcomes of change in StarCars

Help the company to maintain their accounts easily

Improve the way they operate, and increase in their business

It became easy for the management to look after the business at all location by consulting the regional manger.

Have a very improved organization structure and good communication among all the regional centres.

Conclusion (Report)

From: Naeem Ullah

To: Board of Directors

Subject: Impact of change in organizations in today’s economy

Date: 02-03-2010

In the current era changes effects the organizations the following ways

Change in organisation can the baseline of the organization

Changes bring alterations or change in the strategy of the organization

Can effect the culture and measurement of the organisation

Can bring increase or decrease to the profit of the organisation if it is a profit organisation.

Change they way they develop, market their product or services

Can reduce or increase the management hierarchies

Introduction Task 2

This task is about the study of the bureaucratic organisations which are well established and large organisations. Many of these organisations have re assessed their strategies and positions. In this task the requirement is to select two bureaucratic organisations and evaluate their strength and weaknesses, the efficiency through which these organisations works, the impact of bureaucratic organisations on their environment and how these organisations react to change.

Objectives of Task

Following are the objectives of this task

Identify two bureaucratic organisations

Evaluate their strengths and weaknesses

Impact of bureaucracy on their environment

How these organisations react to change

Produce a report to evaluate these organisations

Report

From: Naeem Khan (Managing Consultant)

To: Managing Director

Date: 29 Mar. 10

Subject: Investigation on two bureaucratic Organisations

Two Bureaucratic Organisations

To complete this task I have identified the following two bureaucratic organisations.

British Telecom (BT)

Pakistan Telecommunication Company Limited (PTCL)

1. British Telecom

British Telecom (BT) is the world’s oldest communications company, with a direct line of descent from the first commercial telecommunications undertaking in the world. The Electric Telegraph Company incorporated in 1846, was the first anywhere to exploit leading edge telegraphy technology and introduce electrical communications to an astonished world. Within ten years an international network had been developed, making communications possible within minutes and hours instead of days and weeks. The consequences for every aspect of society were dramatic and profound.

British Telecom Provides global telecommunication services in more than 170 countries worldwide; Participates in London and New York Stock Exchange and is listed in the FTSE 100 Index. Provides most British fixed-line telephones with local loop and trunk network connections, and telephone exchanges. It operates more than 28 million UK telephone lines.

Efficiency through which BT is Working

As British Telecom is one of the world’s most popular telecom company, they have very experienced and skilled staff, equipped with latest tools and technology. They provide services in all sector of telecom, from telephonic conversation to fast internet broadband, Ethernet facility, Virtual Private Network VPN, Wireless Local Loops WLL and so many other products and services.

The current assets of BT are more than 49.34 billion pounds, and have more than 28 million customers in UK, the total sales of BT in 2009 was about £21,7235, which show the importance of BT in telecom industry in the country and also its values in producing good revenue for the country’s economy.

British Telecom has about 18 competitors in the market but they have the advantage of having much more customers and a very rich history in the telecom sector of United Kingdom.

Impact of Bureaucratic Environment on BT

As British Telecom is a very big organisation having thousands of employees and dealing with such a big number of customers, they are having a very good organisational structure using the bureaucratic approach to implement their policies. In BT they use the traditional form of bureaucracy, the law, policy and regulations are normally created by the top management or board of executives and then a series of steps Is taken for the implementation in which the superiors pass their subordinates what to do and how to do, and evaluate their performance and then report to his higher authorities.

How BT React to Change

As BT is a bureaucratic organisation and it’s a very long and difficult process to introduce new change to their organisation. They follow a very systematic way to cup up with changes. To bring change into the organisation the decision is taken by the higher authorities and implementation is made on the ground in a series of steps instructed by the top level management.

Pakistan Telecommunication Company Limited (PTCL)

Pakistan Telecommunication Company Limited is Pakistan l largest converged services carrier provide basic telephonic services to data and internet, video and audio conferencing throughout the country.

The vision of PTCL is “To be the leading Information and Communication Technology Service Provider in the region by achieving customer satisfaction and maximizing shareholders’ value”. While the mission of the company is to achieve their vision by having “An organizational environment that fosters professionalism, motivation and quality , An environment that is cost effective and quality conscious, Services that are based on the most optimum technology,  “Quality” and “Time” conscious customer service, Sustained growth in earnings and profitability”.

According to financial report of PTCL published in June 2009 the net income of PTCL is 9.1 billion Pakistani Rupees. By nature PTCL is a bureaucratic organisation from its start, In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL monopoly over basic telephony in the country. And in 1996 PTCL was listed in all the stock exchanges of the country.

Efficiency through which PTCL is working

PTCL is the largest telecom service provider in Pakistan and also part of the consortium of submarine communications cables network. They provide best communication services to their customers at their door step. PTCL have about 2000 telephone exchange round the country providing largest fixed line network, GSM, CDMA and Wireless Local Loop (WLL).

Impact of Bureaucratic Environment on PTCL

Impact of bureaucratic type of management is same on PTCL as like other bureaucratic organisation, they are very systematic and structured in bringing any change into their organisation and the way they are working. As in telecom sector in Pakistan PTCL is having the monopoly but in 2003 the post-monopoly era came with Pakistan’s Liberalization in Telecommunication. On the Government level, a comprehensive liberalization policy for telecoms sector is was offered. Which bring the concept of privatizing the public sector organisations and PTCL was one among those.

How PTCL React to Change

As PTCL is a bureaucratic organisation but it has very strong labour union and employee union which is very influential within and outside organisation. When in 2005 the govt of Pakistan decide to privatise the company and sell about 26 % of its share to a gulf based company Etisalat there was country wide protest and strike by PTCL workers. They even disrupted Phone lines of some big Government institutions like Punjab University Lahore and many lines of public sector were also blocked. And a very tense situation was created when the technicians of PTCL refuses the repair of undersea optical fibre line to Singapore, at last military forces take over the control of all offices and make a success transition of the process.

Conclusion

Bureaucratic organisations are very systematic and well structured

They work efficiently in big organisational structures

To bring change in organisation is very lengthy and time consuming process, it also takes more efforts as compared to other types of organisations.

The bureaucratic organisation management may face saviour problems in bringing change in organisation.

Introduction to Task 3

In today’s world most organisations use the concept of Fordism to have more advantages over the competitors; they need to respond to the situations quickly and efficiently by providing good products and services to their customers. To have competitive advantages organisations needs to adapt to newer and better methods of organisational management. In this task the focus is on how organisation can work more effectively by using alternative forms of organisational development except that they are using.

Objectives of Task 3

Following are the main objectives of this task

Definition of the concept of Fordism and its importance

Importance of Fordism in modern management

Comparison of two organisations between alternative forms of organisational development.

Fordism

Manufacturing philosophy that aims to achieve higher productivity by standardizing the output, using conveyor assembly lines, and breaking the work into small de-skilled tasks. Whereas Taylorism (on which Fordism is based) seeks machine and worker efficiency, Fordism seeks to combine them as one unit, and emphasizes minimization of costs instead of maximization of profit., the concept of Fordism was introduced by US automobile pioneer Henry Ford (1863-1947).

Fordism was a method used mainly in the automotive industry; it improved productivity, but it was also ‘a model of economic expansion and technological progress based on the mass production: the manufacture of standardized products in huge volumes using special purpose machinery and unskilled labor’. This principle could be applied to any kind of manufacturing process and for a time it was. Major success stemmed from three major principles:

The Standardization of the product

The use of Special-purpose tools and/or equipment via the assembly line

The Elimination of skilled labor in direct production, while simultaneously paying the worker higher wages.

Fordism is a production process that standardized the production for a lower price and for a larger production. The factories were built on places where labor or raw materials for the product were available. The companies were in this way dependent of the place they were built. Besides that the city was dependent of the companies, because they served employment.

Important of Fordism in modern management

By using the concept of Fordism in modern management organizations can benefits from it in various ways, some of them are stated below

Fordism helps in modern management to do jobs quicker and cheaper both Fordism and Scientific Management share common themes yet also display some significant differences. They both encourage looking at the fastest way work can be completed and impose strict guidelines upon employees and their job descriptions. This has led to a great deal of dissatisfaction among employees in production lines with alienation and monotony of workers that encouraged a high turnover of employees at organizations that imposed these techniques. Henry Ford developed much of his conceptions upon Taylor’s ideas of scientific management. These theories imply that contemporary organizations and their managers should take into consideration the ideas of employees to avoid division. Managers today often see workers as multi-skilled and more involved in the process of production via teamwork, the reintegration of manual and mental labor, and the empowerment of production workers. Today’s mass production has seen technology wiping out many of the jobs once held by these employees. There is a movement towards a more flexible workplace in the wave of this new technology away from strict guidelines imposed upon workers and their job descriptions, they are now encouraged to learn about other areas of the workplace. Fordism and scientific management have greatly influenced our workplace today and their theories will continue to be built upon for years to come. 

Comparison of BT and PTCL in light of above discussion

Both these companies are public sector organization with big revenue generation each year and thousands of employees providing telecom services to their customers throughout their respective countries.

Following is the comparison between these two organizations on the basis of their growth, processes, expansions, procedures and they way they introduce changes into their organization.

PTCL

BT

PTCL has lunched WLL (prepaid & postpaid) through this customer can connect where landline scarce.

Provide high speed broadband, telephony services and TV on a single wire

Provide their customers the facility of smart TV

According to Annual report 2009 the net income of PTCL is 9.1 billion Pakistani Rupees

Have about 2000 telephone exchange

Practicing bureaucratic in their organization.

Having current assets of 49.34 billion pounds

Have 28 million customers in UK

They are competing with about 18 competitors in the market

Providing products and services like internet broadband, Ethernet facility, Virtual Private Network VPN, Wireless Local Loops WLL and so many other products and services.

According to the annual report of 2009 the total revenue generated by BT was about £21,7235

Is a bureaucratic organization from start and still practicing bureaucracy to bring change within the organization.

Conclusion

Fordism is the concept which helps organizations in the development of the

Standardization of the product

Help organizations in developing goods and services in as assembly line

Fordism helps organizations in modern management to produce good services to their customers.

Introduction to Task 4

This task it is assumed that one of the organisation hired me and they require from me to come up with a clearer idea of the available models for change and come up with a presentation to the management of the describing the various models available for the organisation during the exchange from ‘shop’ environment to ‘internet sales’, and advise the management which model to use, which is the best, and appropriate for the organisation.

Pakistan Tele communication Company Limited has hired me and they demands from me to produce the following work.

Objectives of Task 4

Following are the main objectives of the task 4

Describe various models for organisation

Describe the appropriate model for change from shop environment to internet sale

What is organisation change model

When organisation tends to bring change into their organisational structure and operation they need to follow certain procedure which minimise the cost of change, it means that they should follow a certain steps of pre defined procedure. So change model is a set of pre defined procedure to ensure the secure change within organisation.

Organisation change model in organisational development from the perspective of change in from top level management changes to the operational level changes.

Available Change Models for PTCL

Following are the available models of change for PTCL

Dynamic Conservatism

Dynamic conservatism model is focused on the increasing need due to increasing change of pace for the change process. This model was produced by Schon. The intention of this process model is to make the change process in organizations more flexible and dynamic.

Kubler-Ross Model

Kubler-Ross Model is also known as five stages of grief. It describes five discrete stages, she describes how people deal with grief and tragedy. Five stages of Kubler-Ross are

Denial “I feel fine” “This can’t be happening, not to me”

Anger “How can this happen to me?”

Bargaining “I will do anything for a few more years”

Depression “I am going to die what is the point?”

Acceptance “it is going to be okay”

Dynamic Conservatism

This model was described by Schon. He explores that inherent nature of the organizations can be conservative and protect them from constant change. Schon recognizes the increasing need due to the increasing change of pace for this process to become far more flexible.

ADKAR

ADKAR is a goal-oriented change management model that allows change management team to focus their activities on specific business results. ADKAR is a useful framework for change management teams in planning and execution of their work.

Awareness

Desire

Knowledge

Ability

Reinforcement

Appropriate Model for PTCL

Bringing change in organization is very tough and complex problem, the management of the organization need to have deep look different aspects of the current position and the position of organization after change. Advising a change model to organization is a difficult job to do, because of the different factors involvement in the change process. So I will suggest PTCL to go for the two change models parallel from above defined models.

Individual Change Model

Dynamic Conversion

I suggest these two models because of the very speedy changes in organization of PTCL and the way they perform their operations. So these two models will help PTCL to have a successful transition from their present state to where they want in future.

Introduction to Task 5

In previous tasks a detail overview of the change models and process are provided, now in this task the focus is on the implementation of the change process and its activities, as I have done task 4 for PTCL, so in this task its required to show the implementation process of the change model for PTCL, because without proper and good implementation planning is just waste of resources and time.

Objectives of Task 5

Following are the main objectives of this task

Measure the efficiency of the change models for PTCL

Plan the implementation process of change for PTCL

Implementation of the change process

Organisational change is a very complex and difficult task to accomplish, it needs to be properly planed and structured to make a secure transition from starting point of change till end. The organisational change involve different factors which need to be addressed when planning implementation of change. Following are the most common and important elements in change process

Recognition of the need for change that why change is needed

Establishment of goals for the change, means what goal you have decided to achieve

Diagnoses of relevant variables, what factor are involve in bringing change

Selection of appropriate change technique, what technique you are going to use for change

Planning for implementation of the change, are you able to plan the change?

Actual Implementation, implement what you have planned

Evaluation and follow up, are you successful in bringing a secure transition (change) in your organisation

Implementation Steps for Organisational Change

There are eight main steps involve in the implementation of a change plan in an organisation, all these are important to follow, otherwise organisation management will be unable to yield the results they want from change.

Establishing Sense of Urgency

It is important to bring change whenever it is necessary or the management want to introduce the new ways of organisation operations.

Powerful Guiding Coalition

Organisational change is not a single or individual person responsibility, it involve the power of coalition of the people working in organisation.

Creating a vision

Without a vision it’s not possible to have a positive change

Communicating the Vision

Management should decide and discuss the vision for change with other staff members in the organisation.

Empowering Others

Give responsibility and power to the persons involve in change process

Short Term Wins

Break the problem statement into different achievable steps

Consolidating Improvements

Have some mile stone / check points to evaluate the performance

Institutionalizing

Change process must be within standard procedures.

Issues with implementation of Change

When organisation goes for change they may face certain problems and issues which need to be properly addressed time by time. These problems may occur at initial stages, at middle or may be at late stages of the implementation process, but the management of the organisation and individuals responsible for change must be aware of those and have the ability of quick response to the situation.

Management may face some of these issues in implementation of change process

Some manager unaware of change process and models

Difficulties in getting support from staff members

Lack of leadership

Internal and external resistance to the change

Difficulties in communication the change with stockholders

Influence of govt rules and regulations

Some economical and sociological problems

Resistance to implementation of change

Organisation may face two types of resistance to the change in organisation

Individual Resistance

Organisational Resistance

Individual resistance may be Economic Reason, Obsolescence of Skill, Personal Reason, Ego defensiveness, Status Quo, Fear of Un-Known, Social Displacement, and Peer Pressure. While organizational resistance may be Threats to Power & Influence, Organizational Structure, and Resource Constraint.

Conclusion

To implement a change process organisation needs to have looked at certain issues related with this process. This problem may be individual based or organisational base. The management of organisation need to discuss the change process with their employees, stakeholders and give the mangers responsibilities and decide how to evaluate the change process.

Introduction to Task 6

Whenever organisation plan to change, they look and to different issues and perspectives associated with change, the impact of change of the organisation structure, economy and the way they do their business. To bring change in organisation it is important that all stakeholders are fully aware of and involved in this challenging exercise. In this task it is required to look into the current position of the organisation and develop a system to involve all the stakeholders in the introduction of change process.

Objectives of Task 6

Following are the main objectives of this task

Identification of key stakeholder of PTCL

Development of a system to involve the major stakeholders in the change process

Current Situation of PTCL

PTCL is the largest telecom service provider in Pakistan and also part of the consortium of submarine communications cables network. They provide best communication services to their customers at their door step. PTCL have about 2000 telephone exchange round the country providing largest fixed line network, GSM, CDMA and Wireless Local Loop (WLL).

According to financial report of PTCL published in June 2009 the net income of PTCL is 9.1 billion Pakistani Rupees. By nature PTCL is a bureaucratic organization from its start, In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL monopoly over basic telephony in the country. And in 1996 PTCL was listed in all the stock exchanges of the country.

Stakeholders involved in change process

The main stakeholders of PTCL involved in change process are

Govt of Pakistan

Eitesalat UAE

Employee Union of PTCL

PTCL have the opportunity to bring change into their organistion by keeping in streamline the above three stakeholders, we remember that in 2002 when the mangamgent of PTCL decide to sell some shares of the company to Eitesalat which is a UAE company, the employee union start protests against the decision country wide and go on strike, while in some areas they create some technical problems in the telephone exchanges and the communication services in some areas of the country was terminated, they refuse to repair the undersea optical fiber line between Karachi and Singapore and due to that the internet services were badly effected in the whole country. The main reason for all this was the lack of communication between the top management of the company and employees union of PTCL, the employees union was not considered as stakeholder and their problems and reservation was not taken into account properly, and they also feel that by privatizing the company the employee’s rights may be affected.

So I will suggest the top management of PTCL to take into account all the three main or key stakeholders and provide them enough information on the company current situation, the change which they have planed the way they want to implement those changes, what benefits PTCL will have after the change, what are the possible threats to change, is there any negative factor which will incur during change and after that, if yes the will be approach to the solution of that.

Activities / Systems to Involve Stakeholders in change process

PTCL may do the following activities to ensure that all the stakeholders are aware completely of the change process; the current situation at PTCL and the future of the organization after the change is done. And if the management faces any hurdles during the change process the stakeholders should take initiatives to solve the problem.

Formal meeting of all stakeholders

Presentation from the management to stakeholders

Employees workshops on change management

Distribution of duties and responsibilities for introducing change process

Team building, contain members from all the three key stakeholders

Conclusion

All they key stakeholders must be part of organizational change

Proper activities should be organized with all stakeholders to create awareness about the change

Everyone in organization must know that why change is needed

Vision of change must be developed and evaluate time by time

There should be some contingency plan before starting the change process.