Managing Change

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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