Transcript
1. Introduction
Change is a big hurdle that people have to cross in the work situation. The very fact of doing
of something in a new way, or learning new management policies is enough to create stress
and as management our responsibility is to make this change acceptable in a smooth manner
(Mclynch, 2007). According to Poole and Van de Ven (2004), change can take many forms;
it can be planned or unplanned, incremental or radical, and recurrent or unprecedented.
Trends in the process or sequence of changes can be accelerating or decelerating in time, and
they can move toward equilibrium, osculation, chaos, or randomness in the behaviour of the
organisational entity being examined. Change management is the effective process of a
business change such that executive leaders, managers and front line employees work in
consonance to successfully implement the technology or organizational changes. Every
organization in the recent time is facing the pressure for change may be due to globalisation,
government initiatives, or any other reason in order to improve productivity, achieve better
results. The pace of change is increasing day by day and it is an art to develop the skill of
living with the change and also managing the change.
According to Lorenzi and Riley (2000), Change management is the process by which an
organization gets to its future state, its vision. While traditional planning processes delineate
the steps on the journey, change management attempts to facilitate that journey. Therefore,
creating change starts with creating a vision for change and then empowering individuals to
act as change agents to attain that vision. To really understand organizational change and
begin guiding successful change efforts, the change agent should have at least a broad
understanding of the context of the change effort. This includes understanding the basic
systems and structures in organizations, including their typical terms and roles. This
requirement applies to the understanding of leadership and management of the organizations,
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as well. That is why graduate courses in business often initially include a course or some
discussion on organizational theory (McNamara, 2009).
Question 1 Identify and research an organisation that has to change its business strategy
because of recession. First, you should provide a summary of the organisational profile,
including its activities, the scale of operations and the problems they are facing.
2. Organisational Background
The Institute of Agriculture and Animal Science (IAAS) is the only one agriculture institute
of Nepal. IAAS began as a School of Agriculture under the Ministry of Agriculture in 1957
to train Junior Technical Assistants (JTAs) in agriculture. At present the institute has its
central campus at Rampur and two branch campuses. The Lamjung Campus, located at
Sundar Bazar in Lamjung District was established in 1975 and The Paklihawa Campus
located at Bhairahawa in Rupandehi District was established in 1978 (IAAS, 2009).
At present, the institute offers B.Sc. Agriculture (Bachelor of Science in Agriculture),
B.V.Sc. & A.H. (Bachelor of Veterinary Science and Animal Husbandry), M.Sc. Agriculture,
M.Sc. Animal Science, M.V.Sc., M.Sc. Aquaculture and Doctor of Philosophy (Ph.D.)
programs at Rampur (IAAS, 2010). The two branch campuses at Lamjung and Paklihawa
also offer initial two years of B. Sc. Agriculture course. Started with a few permanent faculty
positions in 1972, the IAAS now implements teaching, research and extension programs
through a core of over 150 trained and dedicated faculty members at its central and the
branch campuses.
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2.1 Objective of Institute:
The mission of IAAS is to train competent manpower in agriculture and allied disciplines,
and to promote research, development and technology dissemination in agriculture (IAAS,
2010). The objectives of IAAS are as follows:
To design and implement educational programs in agriculture in order to obtain an
appropriate balance among established and emerging needs of the agricultural sector
in Nepal.
To promote excellence in teaching, research and technology dissemination in
agriculture.
To develop technically competent agricultural graduates ready to apply the knowledge
and skills in technical agriculture, agricultural extension, agricultural education,
agribusiness and agricultural and rural development programs.
To encourage and support faculty members and students for research and scholarly
activities relevant to the needs of Nepalese agriculture and farmers.
To foster students self-development, commitment and responsibility for the welfare of
Nepalese society.
2.2 Impact of Recession:
A recession is a prolonged period of time where a nation's economy is slowing down or as the
economists usually put it contracting. This slow down is actually characterized by a number
of different trends, some of those trends are:
People buying less things
Decrease in factory production
Growing unemployment
Fall in personal income
An unhealthy stock market
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Recessions cause significant declines in resources available to the firm because customers
spend less, lenders lend less, and competitive rivalry increases. Initially, the behaviour of
consumers changes during recessions. They have less money to spend and cut back personal
spending in response to the overall decline in economic activity. Typically, they are more
deliberate in their purchases, more sensitive to price, and, because of increased anxiety over
personal finances. In case of IAAS, recession affected its student enrolment procedure. The
institute had usually enrolled 25 % student through donation system by taking certain money
that depends up on the degree offered but it drastically cut the quota of donation which
facilitated to increase the free student enrolment. It ultimately affected the running cost of the
organisation and other operating costs.
2.3 Strategy to fight the recession:
Recessions usually affect one region of the world more than another (McClenahen, 2003
McClenahen, 2003 J.S. McClenahen, Disappointingly slow growth, Industry Week (2003)
(1), pp. 15–16. View Record in Scopus | Cited By in Scopus (1)). It means the impact of
recession differ country to country. In addition, recessions do not affect all places equally or
simultaneously.
2.3.1 Introduce new product
New product introductions may be especially effective during a recession. At such a time,
competitors are relatively quiet, and the availability of advertising and distribution may help a
fledgling product capture customer loyalty early. Here for the IAAS the new product is offer
of new subject, change in teaching system and guarantee the job after completion of the
course. Due to these reasons the pressure of new commerce has not been decreased till now.
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2.3.2 Maintain advertising
An advertisement is generally a public announcement designed to attract public attention or
bring in custom. Advertisements include, but are not limited to, newspaper advertisements,
radio or television advertisements, handbills or flyers, business cards, vehicle sign writing,
building or directional signs, statements and similar business paperwork. Successful
advertisements usually adhere to the following structure Attention, Interest, Desire, and
Action. Advertisement is advantageous for every company. For example, A study by a
British industry group found that smaller grocery brands that maintained higher ad levels than
their larger competitors increased share during the recent recession, with some gaining as
much as a 15% increase in market share( Buck, 2002)Buck, 2002 S. Buck, True cost of
cutting adspend: The impact on premium brand shares, 1997–2001, World Advertising
Research Centre, Oxfordshire, England (2002).. IAAS also adopting the massive
advertisement through local FM, local magazine and national daily magazine. So that more
people can know about the institute and they can join the institute.
2.3.3 Attract new student
In order to offset the loss of existing customers during recessionary periods, attracting new
customers should be a priority. The customer for institute of agriculture and animal science
are student and local people who are using the farm (animal, agronomical, and horticultural)
product. So lots of awareness campaigns regarding its degree quality are still conducting to
the target area. The target people are the middle class family especially of eastern region and
far western region of the country.
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2.3.4 Efficient use of land resources:
Though IAAS has hundreds hectare of land as it resource, it had been useless till the last year.
But from last year, the institute’s administration has started to use such useless land
efficiently. This has been done by giving the responsibility to different academic department
and give right to mobilise all funds. This strategy encourages the staff to do better for the
publicity and show their capacity to conduct the different farm so that they may get more
opportunity in coming future.
2.3.5 Control running cost:
Running cost means all the operating cost that has taken place in the institute. The reduction
in unnecessary bonus for each meeting of the high officials, reduction in unnecessary
transport, reduction of misuse of vehicle, offer tender for the different printings, offer tender
for furniture and constructions are still conducting to reduce the operating cost.
Question 2 A: Identify change that an organization has to undergo on today’s economy.
3. Organisational change
Organisational change is a process that can be facilitated by perceptive and insightful
planning and analysis and well crafted, sensitive implementation phases, while
acknowledging that it can never be fully isolated from the effects of serendipity, uncertainty
and chance (Dawson, 1996).
Ackerman (1997) has distinguished between three types of change: developmental,
transitional and transformational.
3.1 Developmental change
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Developmental change may be either planned or emergent; it is first order, or incremental. It
is change that enhances or corrects existing aspects of an organisation, often focusing on the
improvement of a skill or process.
3.2 Transitional change
Transitional change seeks to achieve a known desired state that is different from the existing
one. It is episodic, planned and second order, or radical. The model of transitional change is
the basis of much of the organisational change literature. It has its foundations in the work of
Lewin who conceptualised change as a three-stage process involving:
• unfreezing the existing organisational equilibrium
• moving to a new position
• refreezing in a new equilibrium position.
3.3 Transformational change
Transformational change is radical or second order in nature. It requires a shift in
assumptions made by the organisation and its members. Transformation can result in an
organisation that differs significantly in terms of structure, processes, culture and strategy. It
may, therefore, result in the creation of an organisation that operates in developmental mode
– one that continuously learns, adapts and improves.
Fig. Perspective of change
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Source: (Iies and Sutherlands, 2001)
Most of the company goes under such type of change. There are lot of factors i.e. social,
political, economic, technological, and organisational culture, which has been changed in the
recession period. They all play the vital role either positively or negatively to the
performance of the any company.
In case of IAAS, due to the recession, more people lose their jobs which ultimately decrease
the income level of the family that hinder the investment of the money to study for their
family. Secondly, political factor is another main factor in Nepal. Nepal is in transition phase
since last four years. The new constitution will be made soon. So the political instability and
rules and regulation in the education sector is main factor for the organisational growth.
Question 2 b) Discuss their approach to change, the rational for the chosen approach,
and the ways of involving appropriate stakeholders in the change process.
4. Change Approach
The study of Organizational change is concerned with the task to be undertaken, the process
of management, the behaviour of people, the external environment etc. If organization follow
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the right approach and change their attitude, behaviour, change organization working,
environment, good management system, change planning process according to rescission
situation, organization can exist in recession. When organization changes their tactics and
company approach according to the external and internal stimuli, it can easily handle the
recession condition. there are different types of change approach for the change management
in any organisation.
Classical Approach
Human Relation Approach
System Approach
Contingency Approach
4.1 Classical Approach:
The classical approach reflects the age in which it emerged, portrays organisations as
machines, and those in them as mere parts which respond to the correct stimulus and whose
action are based on the scientific stimulus (Burnes, 2009). The classical approach or the
scientific rational approach as it is sometimes called whilst not being homogenous is
characterised by three common propositions.
Organisations are rational entities: they are collectivises of individuals focused on the
achievement of relatively specific goals through their organisation into highly formalised,
differentiated and efficient structure.
The design of organisations is a science: through experience, observation and experiment, it
has been established that there is not best universal organisational form for all bodies. This is
based on the hierarchical and horizontal division of labour and functions, whereby
organisations are conceived of as machines which one set motion, inexorably and efficiently
will pursue and achieve their pre-selected goals.
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Peoples are the economic being: they are solely motivated by money. This instrumental
orientation means that they will try to achieve the maximum reward for the minimum work,
and will use whatever bargaining power their skills or knowledge allow to this end.
Therefore, jobs must be designed and structured in such a way as to minimise an individual’s
skill and discretion, and to maximise management control. In my opinion this approach is not
suitable to IAAS because it does not the performance of the individual as well as the overall
organisation. It is also has lots of limitations that the recent approach has been cover.
4.2 The systemic approach:
This approach sees strategy as linked to dominant features of the local social system within
which it takes place. The core argument of this perspective is that strategy can be deliberate
process, and planning and predictability are possible, but only if the conditions with the host
society are favourable. Therefore to an extent, this is a contingency approach to strategy
which can accommodate situations where firms do not seek to maximise profit or markets can
be manipulated, financial considerations can become a secondary issue, and stability and
predictability can be achieved. Also under such conditions, the objectives managers seek to
pursue may be related more to their social background, degree of patriotism or even
professional pride, than to profit maximisation. Therefore, form the systemic perspective, the
strategy and organisation adopts and the interests managers pursue reflect the nature of the
particular social system within which it operates.
This approach is suitable for IAAS. As mentioned earlier there is no sound system to operate
the administration, research program, exam schedule, internal assessment and so on. The
other main problem is that nobody is under the rules and regulation. So a sound system to
implement the rules and regulation should implement so that the institute can geared up
immediately.
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4.3 Contingency theory approach
This theory is the rejection of the one best way approach previously sought by manager and
propounded by academics. Contingency theorist adopted a different perspective which
created a clear distinction between them and proponents of the classical approach and human
relations school (Burnes, 2009). The contingency approach can be considered much more a
cohesive school of thought than either the classical or human relations approach. According
to Burnes (2009) it has three unifying themes:
Organisations are open system;
Structure, and therefore performance, is dependent upon the particular circumstances,
situational variables, faced by each organisation;
There is no one best way for all organisations but there is a one best way for each
organisation.
Contingency theory focuses on determining the best management approach for a given
situation. Most appropriate structure and system of management is dependent upon the
contingencies of the situation for the particular organisation. This is also applicable to IAAS
because it describe the organisation structure and its performance. It also describes the
situational variation of organisational change management.
4.4 Human relations approach
People are emotional rather than economic-rational being: human needs are far more
diverse and complex than the one dimensional image that Taylor and his fellow travellers
conceded. People’s emotional and social needs can have more influence on their behaviour at
work than financial incentives.
Organisations are cooperative, social systems rather than mechanical ones: people seek
to meet their emotional needs through the formation of informal but influential workplace
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social groups.
Organisations are composed of informal structure, rules and norms as well as formal
practices and procedures. These informal rules, patterns of behaviour and communication,
norms and friendship are created people to meet their won emotional needs. Because of this,
they can have more influence on individual behaviour and performance, and ultimately on
overall organisational performance, than the formal structure and control mechanism laid
down by management.
Question 3: Examine the change process, including the change program and projects
carried out. You may want to discuss and evaluate change models that are relevant to
the change process.
5. Change process:
The change process consists of a series of three overlapping phases: initiation,
implementation, and institutionalisation which is mentioned in the figure below. These
phases often co-exist in practice. It is particularly important to understand what happens
during each phase and what behaviours within each phase make for success.
5.1 Initiation:
The initiation phase is about deciding to get on innovation, and of developing commitment
towards the process. The key activities in the initiation phase are the decision to start, and a
review of the organisation’s current state as regards the particular change. There are some
factors that believe make for successful initiation:
the innovation should be tied to a local agenda and high profile local need
a clear, well-structured approach to change
an active advocate or champion who understands the innovation and supports it
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active initiation to start the innovation
good quality innovation.
5.2 Implementation:
Implementation is the phase of the process that has received the most attention. It is the phase
of attempted use of the innovation. The key activities occurring during implementation are
the carrying out of action plans, the developing and sustaining of commitment, the checking
of progress and over-coming problems. The key factors making for success at this stage are:
clear responsibility for co-ordination (head, coordinator, external consultant)
shared control over implementation; good cross-hierarchical work and relations;
empowerment of both individuals and the school
mix of pressure, insistence on `doing it right', and support
adequate and sustained staff development and in-service training
rewards for teachers early in the process (empowerment, collegiality, meeting needs,
load reduction, supply cover, expenses, resources).
Figure: The three overlapping phases of the change process
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Source: http://www.liverpool.gov.uk/Images/tcm21-61948.pdf
5.3 Institutionalisation:
Institutionalisation is the phase when innovation and change stop being regarded as
something new and become part of the organisation's usual way of doing things. The move
from implementation to institutionalisation often involves the transformation of a pilot
project, often without the advantage of the previously available funding. Key activities at this
stage are:
an emphasis on `embedding' the change within the organisation's structures, and
resources
the elimination of competing or contradictory practices
strong and purposeful links to other change efforts
widespread use in the organisation and local area
Many change efforts fail to progress beyond early implementation because those involved do
not realise that each of these phases have different characteristics and require different
strategies for success to be achieved.
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6. Resistance to Change
People resist change because it is seen as a threat to familiar patterns of behaviour as well as
to status and financial rewards. According to Armstrong (2006), the main reasons for
resisting change are as follows:
The shock of new
Economic fears
Inconvenience
Symbolic fears
Threat to interpersonal relationships
Threat to status or skill
Competence fears
Uncertainty
IAAS could not develop its organisation and improve its performance till now. as we know
that, there will always be a new demand by the customer as the time passes. So each
organisation should concentrate on the new innovation. There should always be the potential
staff, effective leadership and other factor to launch the new product. The organisation did
not employ any specific change programme. They are just maintaining the existing resource.
So, to improve the IAAS effectively, Kotter’s 8 step change model should implement.
Kotter (1996) stress that his eight stages are a process and not a checklist and that successful
change of any magnitude goes through all eight stages. Skipping even a single step or getting
too far ahead without a solid base almost always creates problems. He also points out most
major change efforts comprise a host of small and medium-sized change projects which at
any one point in time, can be at different points in the process.
1. Establishing the sense of urgency: the leadership of the organisation should aware to all
staff regarding its performance and market competition. They should justify the change
process so that all the staff in the organisation becomes ready for new change.
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2. Education and communication: In this stage we need to give lots of education about
change. This helps to reduce the effect of change in an organization.
3. Build the guide team: in this stage we need to put right person at right job at right time.
4. Facility and support: after different types of change in an organization employee may
face the problem so, the organisation needs to give different types of training suitable to
that situation. For an example, if something new technology introduce in an
organization we need to give information and training to employee.
5. Negotiation and agreement: specially this types of approach is suitable where those
resisting change are in position power.
6. Manipulation and Co-optation: in this stage we need to select the leader of the people
who are resisting the change to participate in change effort.
7. Make change stick: Reinforce the value of successful change via recruitment,
promotion, new change leaders. Weave change into culture.
8. Anchoring new approach in the future: The change model which the organisation
adopted recently may also applicable for the future for lesion. It is sure that it not
applicable as such in the future but the company can learn more lesson from the
previous activities.
Task 4: Analyze and discuss the key issue of change process implementation. You
should provide some suggestions or recommendations for the organization you have
researched.
The key issues of change process implementation have been mentioned under the following
headings:
1. Leadership
2. Clear statement of vision and mission
3. Comprehensive perspective
4. Process for adverse opinions
5. Persistence
6. Flexibility
Leadership: Leadership is a central feature of organizational performance. According to
(Mullins) 2005 leadership can be defining as “An essential part of management is co-
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coordinating the activities of people and guiding their efforts towards the goals and objectives
of the organization. This involves the process of leadership and the choice of an appropriate
form of action and behaviour. The manager must understand the nature of leadership
influence and factors which determine relationships with other people, and the effectiveness
of the leadership relationship” leader looks the organization future. Those leader which are
treated as a good by history had listening power, take responsibility, based on vision. In an
organization, change occurred by external and internal environment, leader must have
capability to tackle or to run their business according to change.
Clear statement of vision/mission: Every organization has mission, a purpose for being,
often the mission is why the organization was first created to meet a need identified year ago.
A good mission statement should accurately explain why your organization exists and what it
hopes to achieve in the future. Organizational failed some time due to lake of clear vision and
mission. Sometime leader don’t have plan, and leader plan is so complex which is very
difficult to understand. Clear statement of vision and mission is important in an organization.
In recession employee must know what they are going to do, how to get the goal in recession.
Comprehensive perspective: Organization must know what types of employee they have
select. Organization must put right person at right place at right time at right job to get the
goal of an organization. They must recruited right employee which skill is similar to the goal
of an organization.
Process for adverse opinion: Every employee in organization is for some reason. They are
hiring for organization need. Every employee is important for the success of an organization.
Persistence: persistence is the act of persisting or persevering; continuing or repeating
behaviour. In an organization sometime there is delay in work, confusion e.t.e. Manager
should give information about the current situation of organization so that they can do their
job according to the situation. Any change must have persistency.
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Flexibility: Because of change in external and internal factor, organization had to change
their plan. Sometime because of economic problem they have to change their plan. Specially
in recession many organization had change their plan.
7. Conclusion and Recommendation
Institute of Agriculture and Animal Science could not develop as the time demanded though
it is only the agricultural institute in Nepal. It could not utilize its huge resource. The reason
behind it has lots of managerial and technical factors which are also called change factors.
There is main problem in system and leadership. The system includes the political system,
thinking of the people, administration system, and research system. the Dean of the institute
who drive the organisation has been selected on the basis of political approach rather than the
academic competency, seniority and leadership skills. However, the institute can solve all of
its problem if they can hit their weakness. The common activities for change are strong short
term vision, long-term reachable vision, employee motivation, employee resourcing, job
rotation, strong implementation of rules and regulations, change in current course of study,
and focus practical activities rather than theoretical class.
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