Change Management

Unit 2

Unit 2

Organisational Aspects of Change Management

Structure: 2.1 Introduction Objectives 2.2 Organisational Structure 2.3 Dimensions of structure 2.4 Organisational Design 2.5 Components of Organisational Design 2.6 Managing Environment 2.7 Dimensions of Environment 2.8 Summary 2.9 Glossary 2.10 Terminal Questions 2.11 Answers 2.12 Case Study

2.1 Introduction
By now you may be familiar with the concept of change management and its importance. We have discussed the imperative and impact of change. Managing of change through individual change management and organisational change management is discussed. Roles of change management are also discussed in the previous unit. As you are now familiar with the basic idea of change management, let us now discuss about organisational aspect of change. An organisational aspect in the current context includes structure and design of the organisation. An organisational structure is a framework that provides a specific space for a specific department and shows its relationship with other departments. Organisational design is a process to improve the prospect of an organisational success. Environmental structure deals about managing the organisational environment through Environmental Management System. Change management can be viewed from organisational perspective and individual perspective. This unit defines the organisation structure. It explains the dimensions of structure and also describes the organisational design. It explains the

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components of organisation design. It describes managing environment in change and the dimensions of environment. Learning Objectives After studying this unit, you should be able to: define organisation structure. explain dimensions of structure. explain organisational design. elucidate components of organisation design. describe managing environment in change and the dimensions of environment.

2.2 Organisational Structure

All the organisations comprise of certain components. These components perform various functions and are interdependent on each other for the smooth functioning of the organisation. An organisational structure is a framework that provides a particular space for a particular department and shows its relationship with other departments. Organisational structures are of many types. The common of these are the hierarchical and the flat organisational structures. A hierarchical organisational structure is the traditional structure or the bureaucratic structure, where there are different levels between the most junior and the senior most employees. This of course helps in proper distribution of work but sometimes can be harmful in terms of efficiency and decision making. A flat organisation is more relaxed and modern in its approach where everyone directly reports to a single boss. The advantage is that this provides more speed in the decision making process but the boss takes care of a lot of things which makes delegations difficult. The figure 2.1 provides a clear picture of a hierarchical organisational structure.

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MANAGING DIRECTOR

QUALITY MANAGER

MARKETING MANAGER

OPERATIONS MANAGER

ACCOUNTANT/ FINANCE MANAGER

PROJECT MANAGER

ESTIMATOR / ADMINISTRATOR

BUILDING CADETS

SITE FOREMEN

OFFICE ADMINISTRATOR

SUBCONTRACTORS

SITE EMPLOYEES

Figure 2.1: Organisational Structure

Organisational structure also involves how a business organises, categorises, and decides tasks to achieve a specific goal. A company's organisational structure reveals how business decisions are drawn and implemented at all levels of the business. The organisational structure includes the following: Organisational chart: An organisational chart shows how the departments and divisions at various levels interact with each other in an organisation. They are the visual illustrations or outlines.
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Chain of command: The main purpose of an organisational structure is to recognise who all are involved in the decision-making process and how those decisions are implemented. Distribution of authority: Organisational structure plays a major role in shaping out how a structure distributes authority throughout the organisation. Important factors must be addressed by an organisation to effectively reach its goal such as whether subordinates are involved in the decision-making or if it is reserved for a few authoritative figures within the departments. Departmentalisation: Organisational structure helps to distribute specific tasks and activities to their respective departments. For example, all sales representatives will be grouped into sales department. Span of control: It defines the number of employees controlled by a manager and has complete authority over employees. For example marketing manager has span of control over marketing assistant, market researcher, telesales supervisor, and customer care assistant. Self Assessment Questions 1. A ___________ is a framework that provides a particular space for a particular department and shows its relationship with other departments. 2. A ___________________ is the traditional structure or the bureaucratic structure where there are different levels between the most junior and the senior most employees. 3. A ___________ is more relaxed and modern in its approach where everyone directly reports to a single boss. Activity 1: The link provides an article on Organisational structure and function of a business. Analyse the functioning of any one organisation based on the article. (Hint: http://www.123helpme.com/view.asp?id=122725)

2.3 Dimensions of Structure

According to 1Robins, organisational structure has three dimensions. These dimensions are represented in the figure 2.2:
1

http://www.indiastudychannel.com/resources/70026-Dimensions-organisational-structure.aspx

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Dimensions of Organisational Structure

Formalisation

Centralisation

Complexity

Figure 2.2: Dimensions of Organisational Structure

Formalisation Formalisation refers to the degree to which the activities, policies, measures, instructions are carried out and how they are defined, mentioned, and standardised in an organisation. The degree of formalisation is higher when compared with the degree of division of labour, the degree of departmentalisation, the degree of span of control, and the level of delegation of authority. Some of the benefits of formalisation are as follows: Formalisation cuts-down the irregularity in the organisation as the activities are standardised. Formalisation increases coordination as the activities are distinct and specified which ultimately leads to an effective coordination between the managers and the employees. Formalisation reduces the operation cost of the organisation. Formalisation reduces conflicts and uncertainties as most of the activities are standardised. Though formalisation is beneficial, it is not away from criticisms. Some of its criticisms are as follows: As most of the activities are standardised, there is no scope for creativity and flexibility.
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It is difficult to change the rules that are followed in the organisation. If any new rules are formed and implemented, employees struggle a lot to cope up with it. Though formalisation has certain limitations, it is used in many organisations as it effects in smooth and effective running of organisations. Also, it builds good relationship and efficiency within the organisation. Centralisation Centralisation refers to the degree to which decision-making is given importance in the organisation. Centralisation is one among the fourteen principles stated by 2Henry Fayol. His principle says Diminishing the role of subordinates in decision-making is centralisation and decentralisation is the opposite of centralisation. In centralisation, control and decision-making are made by the top level of management but they have less power. It is impractical to have absolute centralisation as it would deprive subordinates based on power, authority and duties. The concept of centralisation plays a major role in the survival of small organisations as they face competition in the market. Importance is given to decentralisation only when there is larger organisation as decision making has to be placed in the centre of the operating level. It is because of the complexity of industries in terms of size, interdependence of work flow, complex tasks and physical barriers within and among groups. Decentralisation pushes down the authority and power of decision-making to the lower levels in the organisation. However, it is a systematic effort to hand over power and authority to the lowest levels. The concept of decentralisation can also be related to fundamental principles of democratic management as every individual gets justified admiration for their worth. Complexity Complexity is referred to the differences among jobs and divisions. Complexity highlights the degree of differentiation that exits inside the organisation. Complex organisational structure comes into force because of variety of jobs and divisions within the organisation. As it is very complex, the management of it becomes very difficult and boring. Complexity of the
2

http://www.indiastudychannel.com/resources/70026-Dimensions-organisational-structure.aspx

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organisation also refers to the degree of management, communication and control within the organisation. Based on complexity of activities within the organisation, there are three types of differences. If the differentiation is higher, higher will be the complexity. Figure 2.3, represents the three differences based on the complexity.
Differentiation Based on Complexity

Horizontal Differentiation

Vertical Differentiation

Spatial Differentiation

Figure 2.3: Differentiation Based on Complexity

Horizontal differentiation: It refers to the total number of dissimilar units at the same level in the organisation. Examples: Specialisation, departmentalisation. Vertical differentiation: It refers to total number of levels in the organisation. It reflects the depth of hierarchy in the organisation. The hierarchal increase will improve the complexity in the organisation. By this coordination and communication becomes difficult as they are he important factors of working. Spatial differentiation: It refers to a degree to which location of units and the personnels are distributed. This increases the complexity of organisations in multiple locations as coordination and interaction becomes difficult in the organisation. All these dimensions contribute a lot to efficiency, centralisation, specialisation, centralised authority of functional departments, and monitors

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span of control. Therefore, all these dimensions are vital and integral part of the organisation to run successfully and economically. Self Assessment Questions 4. What are the three dimensions of organisational structure according to Robins? 5. The degree of formalisation is lower when compared with the degree of division of labour (True/False)? 6. Importance is given to _________ only when there is larger organisation as decision making has to be placed in the centre of the operating level. Activity 2: Visit an organisation and collect information on the various dimensions that are followed in their organisational structure. To know more about organisational dimensions refer to the following link. (Hint:http://kartiksubbarao.com/organizational-dimensions-personalitytypes-and-development)

2.4 Organisational Design

Organisational design is a process to improve the probability of an organisational success. Specifically, it is a formal and guided process for integrating people, information and technology of an organisation. It is used to match the present form of the organisation as closely as possible to the target the organisation wants to reach and be successful. Through the design process, organisations proceed to improve the probability of the collective efforts of members to be successful. Normally, design is perceived as an internal change under the supervision of an external facilitator. Managers and members work together to classify the needs of the organisation, then create systems to meet those needs successfully. The facilitator assures that an organised process is carried out and encourages creative thinking. Hierarchical systems Western organisations are highly influenced by the command and control structure of ancient military organisations, and todays Scientific Management. Most of the organisations today are designed in the form of
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bureaucracy in which authority and accountability are arranged in a hierarchy. Within the hierarchy the rules, policies, and measures are equally and impersonally applied to exercise control over the behaviour of members. Activities are organised within the sub-units or the departments in which people perform particular functions such as manufacturing, sales, or accounting. People who perform similar tasks are put together. The same old basic organisational form is believed to be appropriate for any organisation. For example: It can be a government, school, business, church. It is common, expected, and realistic. Functional hierarchy though looks very familiar and rational, has some distinct disadvantages. It can not be applied blindly on all purposeful groups within the organisation. In order to understand the problem, first, begin to observe that different groups desire to achieve different outcomes. Second, observe that different groups have different and unique members, and that each group has a different culture. These differences in required outcomes, and in people, should alert us about the hazard of assuming there is any single best way of organising. To be complete, you should also observe that different groups will choose different methods through which they will achieve their purpose. Service groups will choose different methods than that of manufacturing groups, and both will choose different methods than the groups whose purpose is mainly social. One single structure cannot be carried on and will not fit all. Purpose for organising The purpose for which a group exists should be the institution for the whole thing its members do which also includes the choice of an appropriate way to organise. The idea here is to create a way of organising that suits the purpose to be accomplished, without considering the way in which other dissimilar groups are organised. Only when there are very close similarities in needed outcomes, culture, and methods then the basic form of one organisation can be applied to another but with careful and fine tuning. The danger is that the methods of activity that help one group to be successful may not function properly for another group, and finally reduces group effectiveness. In order to optimise
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effectiveness and be successful, the form of organisation must be matched with the purpose it likes to achieve in the future. Design process Organisational design starts with the creation of a strategy a set of decision guidelines or plans and by following it members will perform appropriate actions. The strategy is derived from clear, crisp statements of purpose, and vision, and from the organisations fundamental values. Strategy unifies the purpose of the organisation and persuades its members to focus towards actions designed to achieve desired outcomes. The strategy encourages actions that maintain the purpose and discourages those that do not. Creating a strategy means planning and not organising. To organise we must connect people with each other in significant and purposeful ways. Further on, we must connect people with the information and technology which are needed for them to be successful. Organisational structure defines the recognised relationships among people and specifies both their roles and responsibilities. Administrative systems manage the organisation through guidelines, measures and policies. Information and technology defines the process through which members achieve outcomes. Each element should support each other elements and together they must support the organisations purpose. Choice exercising Humans developed organisations. They are manufactured social systems through which groups seek to exercise control or achieve a stated purpose. People choose to organise when they become aware that by acting without any aid from others they are limited in their ability to achieve. We sense that by acting in group we may overcome our individual limitations. When we organise we try to direct the activities of a group of people towards a common outcome. How this pattern is designed and implemented influences effectiveness greatly. Patterns of activity that are harmonising and interdependent result in the achievement of intended outcomes. In contrast, activity patterns that are dissimilar and independent produce unpredictable and often unintended results.

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The process of organisational design matches people, and information and technology to the purpose, idea, and strategy of the organisation. Structure is designed to improve communication and information flow among all the people within the organisation. Systems are designed to support individual responsibilities and decision making. Technology is used to improve human capabilities to accomplish meaningful work. The end product is an integrated system of people and resources that are personalised to the specific direction of the organisation. Figure 2.4, shows the organisational design model.
Business Climate

Set the Stage

Gather Data

Design Transformation

Implement & Evaluate

People Figure 2.4: Organisational Design Model

2.5 Components of Organisational Design

All organisations exist with internal rules for the organisational design. The owners of the organisation design the basic principles and components of the organisation. The owners of the organisations also have to set certain basic rules for the present condition of the organisation and to its future organisational development. The rules play a vital role in the growth of the organisation as the rules set the basic and main logic behind the growth of the organisation.

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The rules are focused in the following areas: The foremost component of organisational design is span of control. The creators have to choose about span of control in the organisation. It is very much connected with the responsibilities of the individual members of the organisation. When the span of control is broad, the responsibilities also should be broad and vice versa. Another important component of the organisational design is the authority. The authority of the individual members is another rule to be decided in the beginning. The creators can leave all their authority at their level. All decisions about the growth and organisational development have to be made at the top level or they can even delegate the authority and responsibilities to the lower levels of the organisation. When the authority is not delegated, the people in the organisation are just asked to make the orders. When the responsibility is delegated, the people can be responsible for the outcomes. The accountability is one the most important components of the organisation. The accountability allows people to feel their full involvement in the life and growth of the organisation. The top level of the organisation focuses on the strategic issues and strategic decisions of the organisation. All the other levels focus on the full responsibility of the individual members who take help of the management. Self Assessment Questions 7. What is organisational design? 8. Organisational design starts with the creation of a ________. 9. Administrative systems manage the organisation through guidelines, measures and policies (True/False)?

Activity 3: The link provides an article about Organisational Design and Change. Go through the article to briefly understand organisational design. (Hint: http://www.fao.org/docrep/w7503e/w7503e05.htm)

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2.6 Managing Environment

A single set of constructs and a single set of measures of the organisational environment are not widely accepted. This in turn is making it difficult to build a broad literature on the impact of the environment on the firm. The three constructs- complexity, instability, and resource availability are common to most environmental research. Environmental Management System (EMS) is the management of an organisations environmental programs in a planned, systematic, comprehensive, and documented manner. Organisations structure, planning and resources for developing, implementing and maintaining policy for environmental protection are all included in this. An Environmental Management System (EMS): Serves as a tool to improve environmental performance Provides a systematic way of managing an organisations environmental issues Addresses quick and long-term effects of its products, services and processes on the environment as an aspect of the organisations overall management structure Gives order and consistency for organisations to face environmental issues through allocation of resources, assignment of responsibility; and ongoing evaluation of practices, procedures, and processes Focuses on continuous improvement of the system EMS Model An EMS follows a Plan-Do-Check-Act (PDCA) Cycle. The EMS model first develops an environmental policy, planning the EMS, and then implementing it. This process also includes checking the system and acting correctly on it. The model is continuous as an EMS is a process of continuous improvement in which an organisation constantly reviews and revises the system. This model can be used by a wide range of organisations from manufacturing facilities to service industries to government agencies.

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Some of the key elements of an EMS are as follows: Statement of policy. Identification of significant environmental impacts. Development of objectives and targets. Implementation of plans. Training for employees regarding environmental responsibilities. Management review. The existing environmental management activities can be merged with the EMS as it is flexible and does not need any organisations to retool their existing activities. An organisations effect on the environment can be systematically identified and reduced as an EMS establishes a management framework. For example, many organisations have active and effective pollution prevention activities underway. These could be incorporated into the overall EMS. An EMS can also be used to assist in maintaining compliance. For example, the Massachusetts DEP (Department of Environmental Protection) has chosen to assist about the use of EMS in compliance cases. The Environmental Protection Agency (EPA) also provides guidance on the use of EMS in enforcement. ISO, ISO 14000, and ISO 14001 ISO (International Organisation for Standardisation) is located in Geneva, Switzerland. It is a non-governmental organisation established in 1947. It functions to develop technical standards that aim at making the development, manufacturing and supplying of goods and services more efficiently and safely. ISO 14000 is a family of voluntary standards and guidance documents that help organisations to address environmental issues. This family includes standards for Environmental Management Systems, environmental and EMS auditing, environmental labelling, performance evaluation and lifecycle assessment. ISO published the first edition of ISO 14001, the EMS standard in September 1996. This standard describes specific requirements for an EMS. ISO 14001 is a specification standard for which an organisation can receive
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certification or registration. ISO 14001 is considered as a foundation document for the entire series. A second edition of ISO 14001 was published in 2004. Development of these standards All the ISO standards are developed through a voluntary, consent-based approach. ISO has different member countries all over the globe. Each member country develops its own standards and these standards are then discussed with other member countries. Draft versions of the standards are sent for formal comment to be put on paper and each country casts its official vote on the drafts at the appropriate stage of the process. Within each country, various types of organisations can participate in the process. These organisations include industry, government both federal and state, and other interested parties, like various non-government organisations. For example, EPA and US participated in the development of the ISO 14001 standard and are now examining its usefulness through a variety of pilot projects. The 17 requirements of the ISO 14001:2004 standard are as follows: Environmental policy: develops a statement of the organisations commitment to the environment Environmental aspects and impacts: identifies environmental dimensions of products, activities and services, and their effects on the environment Legal and other requirements: identifies and ensures access to relevant laws and regulations Objectives and targets, and environmental management program: sets environmental goals for the organisation and plans actions for achieving objectives and targets Structure and responsibility: establishes roles and responsibilities within the organisation Training, awareness and competence: ensures that employees are made aware and capable of their environmental responsibilities Communication: develops processes for internal communication on environmental management issues and external

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EMS documentation: maintains information about the EMS and related documents Document control: ensures effective management of procedures and other documents Operational control: identifies, plans and manages the organisations operations and activities in accordance with the policy, objectives and targets, and significant aspects Emergency preparedness and response: develops procedures for preventing and responding to potential emergencies Monitoring and measuring: monitors key activities and tracks performance including periodic compliance evaluation Evaluation of compliance: develops procedure to periodically evaluate compliance with legal and other requirements Non conformance and corrective and preventive action: identifies and corrects problems and prevents recurrences Records: keeps adequate records of EMS performance EMS audit: periodically verifies that the EMS is effective in achieving objectives and targets. Management review: reviews the EMS. Legislation and standards 3 The Environmental Liability Directive [ELD] 2004/35/EC is one of the vital instruments that your business will need to comply with and must be included in your EMS. It came into force in Europe during 2009. For example it became a law on the 1st March 2009 which started converting the various national Pollution Prevention Guidelines (PPGs) such as the UK PPG11, PPG18 and PPG21 into requirements. If failed to comply, it resulted in fines which ran into many millions of Euros. Within this Directive, it is essential to reduce the effects of events such as spills and firewater, the latter is runs out from fires. The Directive clearly states that it is the site owners responsibility to contain spills and firewater on site using some form of policy setup such as sealing the drains.
3

http://en.wikipedia.org/wiki/Environmental_management_system

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Within the European Union (EU) legislation was introduced to promote businesses to voluntarily adopt ISO 14000. Voluntary involvement by organisations in a Community eco-management, and audit scheme EcoManagement and Audit Scheme (EMAS) was granted by Regulation (EC) No 761/2001 of the European Parliament and of the Council of 19 March 2001. The implementation of a strong EMS that incorporate ISO 14001, should lead to an improvement of environmental performance, including better and consistent legal compliance. The ISO 14000 standards reflect various aspects of environmental management. 5The following list describes the broader coverage of each: Environmental Management Systems: 14001-2004, 14002, 14004. Environmental Auditing: 19011. Environmental Labelling: 14020, 14021, 14022, 14023, 14024, 14025. Life Cycle Assessment: 14040, 14041, 14042, 14043. All the standardisation of goods and services contribute to the organisational change. This helps in standardisation of manufactured goods and thereby increases efficiency. This in turn helps in organisational growth. Self Assessment Questions 10. Which are the three constructs that are common to most environmental research? 11. EMS is the management of an organisations environmental programs in a planned, systematic, comprehensive, and documented manner (True/False)? 12. ISO published the first edition of _________ in September 1996. 13. Expand EPA __________________.

2.7 Dimensions of Environment

All the different terms used to describe the environment fall generally into three categories:

4 5

http://en.wikipedia.org/wiki/Environmental_management_system http://en.wikipedia.org/wiki/Environmental_management_system

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Complexity: It is the level of complex knowledge that helps to understand what the environment requires Instability or dynamism: It is the rate of unpredictable environmental change Resource availability: It is the level of resources available to firms from the environment. All these terms are used in the stream of environmental research from March and Simon (1958) to Dess and Beard (1984). Thompsons (1967) two environmental dimensions are: Heterogeneity/homogeneity: It describes whether the elements in the environment are similar to or different from one another. Stability/dynamism: It deals with whether the elements are changing unpredictably or are stable.
6

Child (1972) used similar dimensions in his research, named them complexity and variability. He added a third dimension called illiberality, which reflects the availability of resources in the environment, and it is similar to open handedness (March & Simon, 1958).
7

Mintzberg (1979) proposed three dimensions of the environment similar to that of Child, but added new facets for each. He introduced the term market diversity to reflect what Thompson meant by heterogeneity and Child by complexity. However he reserved the term complexity for the degree of sophisticated knowledge that is essential to operate in a given environment of a technical or scientific nature. Market diversity and the degree of sophisticated knowledge appear to be distinct aspects of complexity, representing the breadth and depth of knowledge needed. Mintzberg's concept of stability included both market and technological stability, recognising that firms must be up-to-date about developments in both areas. Finally, he proposed environmental hostility in terms of availability of resources (Child's illiberality) and competition for resources.

http://www.google.com/search?q=%22latter%20deals%20with%20whether%20the%20elements%20are %20changing%20unpredictably%20or%22 7 http://www.google.com/search?q=%22latter%20deals%20with%20whether%20the%20elements%20are %20changing%20unpredictably%20or%22

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Aldrich (1979), drawing from the other sources and the ecology literature, also attempted to enumerate the dimensions of the environment. In his synthesis of the two literatures, Aldrich proposed that six environmental dimensions include all others; geographic concentration and heterogeneity, stability and turbulence (unpredictability based on environmental interconnection), and domain consensus (similar to competition) and capacity. Self Assessment Questions 14. Complexity the level of complex knowledge that helps to understand what the environment requires (True/False)? 15. Thompsons two environmental dimensions are ___________ and __________________ 16. Childs third dimension is called ______________

2.8 Summary
In this unit, we learnt about the organisational aspects of change management. Organisational aspects basically include structure and design of organisation. The organisational structure forms a framework that comprises several components performing various functions. These components are interdependent and operate effectively. An organisation can have hierarchical organisational structure or flat organisational structure. In hierarchical organisational structure, employees are placed at different levels based on their experience or role. In flat organisational structure, employees report only to a single boss. We have also discussed about the various dimensions of structure, which include formalisation, centralisation and complexity. Formalisation shows us to what extent activities, policies, measures and instructions are executed in an organisation. Centralisation shows us that the decision-making is given top priority in an organisation. Complexity explains the differences among jobs and divisions. Organisational design forms a guided process that basically integrates people and technology to bring in collective efforts. Thus it creates a chance for organisational success. The organisational design involves creating a strategy, which will be followed by the employees to meet the vision of the organisation.
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We have also discussed about the Environmental Management System (EMS), which manages the organisations environmental programs in an organised way. It usually follows Plan-Do-Check-Act (PDCA) Cycle. There are different dimensions of environment which include complexity, instability or dynamism and resource availability. These dimensions provide the level of knowledge and resources required by the organisation.

2.9 Glossary
Term Compliance Eco-Management and Audit Scheme (EMAS) Environmental Protection Agency (EPA) Massachusetts DEP (Department of Environmental Protection) PDCA (Plan-Do-Check-Act) cycle Description It is an act of conforming. It is one of the management tools for organisations to evaluate, report, and improve environmental performance. It is an agency for environmental protection. It is an agency for administering environmental laws. It is four step problem solving process used in business process improvement.

2.10 Terminal Questions

1. 2. 3. 4. 5. Explain the organisational structure. Describe the benefits and criticisms of formalisation. Explain the differentiations based on complexity. Explain briefly the components of organisational design. State briefly the 17 requirements of ISO 14001:2004 standard.

2.11 Answers
Answers to Self Assessment Questions 1. Organisational structure 2. Hierarchical organisational structure 3. Flat organisation 4. Formalisation, centralisation, complexity 5. False 6. Decentralisation 7. It is a process to improve the probability of an organisational success.
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8. 9. 10. 11. 12. 13. 14. 15. 16.

Strategy True Complexity, instability, resource availability True ISO 14001 Environmental Protection Agency True Heterogeneity/homogeneity, stability/dynamism Illiberality

Answers to Terminal Questions 1. Refer section 2.2 Organisational Structure 2. Refer section 2.3 Dimensions of structure 3. Refer section 2.3 Dimensions of structure 4. Refer section 2.5 Components of Organisational Design 5. Refer section 2.6 Managing Environment

2.12 Case Study

ABC'S Experience in Implementing ISO 14001 ABC was involved in the ISO 14001 process from its foundation by providing technical expertise to ISO's Technical Committee that is responsible for drafting and the other standards within the environmental management series. After understanding the benefits of ISO 14001, ABC's top management made its decision in November, 1996, that the company would not only rely on implementation and registration to ISO 14001, but also obtain a single worldwide registration. After making this decision, ABC began the implementation process. It was an easy task for it since it had a strong, centralised EMS in place for over 25 years. Working within ABC's existing EMS structure, the implementation process included three distinctive steps. The first step ABC took in implementation process was to conduct a global gap analysis. This gap analysis revealed that most ABC locations already had the basics of the elements required by ISO 14001 in place. Areas for improvement included employee awareness of the environmental policy, document control, and complete EMS audits.

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As a second step, ABC developed and published a Worldwide EMS Manual applicable to activities, products, and services which formally aligned ABC's existing environmental management processes with ISO 14001. As a third step, common solutions were developed and incorporated into ABC's EMS to close any remaining gaps to ISO 14001 requirements. These solutions include a common procedure for identifying significant environmental aspects, common training materials for executives, managers, and employees on ISO 14001, an EMS internal audit methodology. Although the worldwide EMS is designed to guarantee that common requirements are met worldwide, specific business activities and environmental operations vary markedly from location to location. After implementing ISO 14001 and achieving a worldwide registration, ABC experienced tangible benefits. It made ABC's EMS system dependent rather than person dependent and provided the impetus to document important requirements, procedures, and processes thus strengthening the system. Employees and on-site contractors now become knowledgeable of the company's environmental policy and their role in supporting it. They learnt environmental aspects and impacts of the company's activities, products, and services; company's documented objectives and targets. It helped in setting environmental objectives and targets and also the designation of a person responsible for meeting the objectives and targets. This fostered accountability and laid emphasis on environmental goals. By single worldwide registration, ABC is now able to conduct surveillance audits using a sampling process. Global registration to ISO 14001 has enabled ABC to handle customer inquiries about environmental responsibility efficiently. The essential element of ISO 14001 is that the EMS must continuously improve. This has provided power and uniformity to the overall environmental posture of the company. Questions 1. Explain the implementation process that includes three distinctive steps. (Hint: Conduct global gap analysis) 2. What are the benefits ABC had after implementing ISO 14001 and worldwide registration? (Hint: System dependent)
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References Radha R Sharma (2007), Change management Concepts and Applications. V. Nilakant and S. Ramnarayan (2006), Change Management. E-References http://www.ehow.com/facts_5154515_importance-organizationalstructure.html http://hrmadvice.com/hrmadvice/hr-organizational-structure/theorganizational-design-theory/important-components-of-theorganizational- design.html http://kartiksubbarao.com/organizational-dimensions-personality-typesand-development http://en.wikipedia.org/wiki/Environmental_management_system http://www.google.com/search?q=%22latter%20deals%20with%20wheth er%20the%20elements%20are%20changing%20unpredictably% 20or%22

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