A STUDY ON CHANGE MANAGEMENT PRACTICES

(An assessment of Contributing factors and obstacles for organizational and individual change through employees)

ABSTRACT Introduction: Managing change is probably the single most important issue today for all those who have undertaken the difficult task of managing organizations. The complexity and dynamic nature of the environment has placed greater demands on organizations to be flexible, responsive and efficient. Around the world, organizations big or small face the inevitable prospect of change. The study of organizational change is important because global and societal change is both pervasive and persistent. We live in a rapidly changing world. These changes have transformed and are continuing to transform the businesses and organizational environments around the world. The winds of change that have swept organizations across the world reached the Indian subcontinent in 1991. Prior to 1991, the idea of Indian organizations becoming world-class producers would have evoked cynicism and derision. Yet, this is precisely what many Indian organizations hope to become in the coming years. But very few Indian organizations are moving in this direction systematically managing the critical factors that determine success in the new globally competitive environment. Can other Indian companies achieve similar success? This requires change change in the way we think about the organizations, products and people. The intriguing question is why have some organizations succeeded while others have failed? The answer is simple. Organizations that have learnt how to manage change effectively have succeeded while those that havent have become victims of change. How can change be effectively managed? This, given the knowledge base available is a difficult question to answer. The traditional management tools and techniques were developed for static, not a dynamic world. Earlier Studies: A study has been undertaken on the best practices in change management by Change management learning center with Four hundred and twenty-six participants from 59 different countries took part in the 2007 Change Management Best Practices study. This report compares the most recent data with the results from the four previous studies (2005, 2003, 2000, 1998) to provide the most comprehensive body of knowledge on change management over the past nine years. This study uncovers the 5 greatest contributors to the success of a change management program and the 4 biggest obstacles. (Contributors - Active and visible executive sponsorship, Structured change management approach, Frequent and open communications around the need for change, Dedicated resources for change management, Employee participation. Obstacles - Fear of the unknown, Lack of job security, Lack of sponsorship, Lack of awareness). In all, the studies on change management have been limited and are more focused on identifying the contributors/obstacles to success of change management. Need for the Study: Almost all theories and models of organizational change have evolved in the west, particularly in the United States. Are these models applicable in other parts of the world? We believe that the general 1

principles of change are the same all over the world. However, in what ways are Indian organizations different? If we were to build a theory or model of change based on the Indian experience, how different would it be? In India, the studies on change management have not attracted the attention of the organizations nor the academicians in a big way, though the winds of change have swept the Indian business environment since 1991. There are many questions in change management that are unanswered. Why and how do organizations change? Are there different types of change? Are some types of change better than others? What are the processes that characterize change? What are the organizational levers that managers can access to influence these processes? Are there limits to adaptation? Is change always messy and painful? These and other questions confront anyone wishing to comprehend and influence the ways in which organizations adapt to changing circumstances. Statement of the problem: Organizations also differ in their change management practices with respect to the ownership, industry, size, region etc. These factors do play a significant role in the way the organizations respond to the change management initiatives. Change can be at the organizational level and at the individual level. In this research an attempt is being made to study existing practices adopted by the Indian organizations that are contributing to the success of the organizations. The specific factors that need to be addressed in implementing change in the Indian context would be analyzed. A detailed analysis of organizational change, individual change would be taken up in the research. Methodology: The researcher proposes to conduct the study among multi-segmented Indian business houses, with factors of ownership, industry, size, region etc., with the following objectives. Objectives: 1. To study the prevalent change management practices adopted in organizations and their advantages and disadvantages if any. 1. To measure the employee response to these practices being implemented. 2. To assess the changes brought about in the organization and analyse the causative factors. The study is to be conducted in 20 organizations with the questionnaire being personally administered to approximately to 50 key managers and employees in each organisation. Sampling Unit: Sample Size: Employees of Indian organizations across industries 20 organizations and 1000 employees across organizations.

Sampling Procedure: Multistage sampling procedure would be adopted. 20 organizations are proposed to be selected using judgment sampling and size of employees would

be taken from the organization using proportionate stratified sampling. The specific employees are chosen using judgment sampling. Statistical Tools: Statistical tools like chi-square test, t-test, factor analysis would be used to analyze the data, test the hypothesis and present the findings.

The researcher strongly believes that this research brings about meaningful inferences that would contribute not only to the body of knowledge in change management but also draws realistic conclusions for organizations to prosper and benefit by implementing appropriate change management practices without bewilderment, confusion and pain.