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Organization Change and Development
Notes Lack of innovativeness in bringing about congruence with other programmes.
Top management support and involvement for long duration as persons may change.
There are problems in measuring attitude change.
According to Nadler there are four factors i.e., resistance, power, control and task
redefinition represents the major hurdles to effective organisational change.
Caselet Mangalore Metals Ltd.
angalore Metals Ltd is a manufacturer of light and medium weight metal products
such as metal frames, metal sheets, metal containers and boxes and prefabricated
Mcabinets. Its primary customers were civil contractors and hardware wholesalers.
From the modest beginning, the company had steadily expanded and enjoyed a large
volume of sales in Mangalore and Kerala. The company is located in the Bikampady
industrial estate and employed three hundred persons.
Over the years, the ownership and senior managerial control of the company had remained
in the hands of the D'souza family. Mr. Charles D'souza, the founder of the company had
become one of the wealthy citizens of Mangalore as a result of the company's profits.
Largely through the civil projects and members of the Konkani Catholic Community who
supported Mangalore Metals (M. M. L).
Nearly two-thirds of the company's personnel worked in the production department.
A large majority of jobs in M. M. L were held by the Catholic Community, many of whom
had considerable seniority in the company. The catholics in the production department
seemed to cherish working in M. M L as they enjoyed freedom under the supervisors who
were fellow members of the community.
M. M. L had begin to face keener price competition since 2000, although sales had continued
at their high level, profits began to drop off noticeably because of reduced margins. The
D'Souza family headed by Mr. Charles D'Souza had become more anxious to improve the
profitability of the company but they were unsure as to how this might be done. Mr Arun
Frenandes, a M. B. A from Mangalore University who joined the company some 10 years
back and the only person in the top management who was not a member of the D'souza
family concluded as a result of the study that cost and procedural controls throughout the
organisation were lacking. According to him, if the company was to improve its profits
and maintain its market position, some of the organisational "vacuums" would have to be
filled. He further stated that organisational vacuums can be created by having additional
specialised staff in personnel, in accounting, marketing and other areas.
The management felt that Mr Arun's analysis of organisational vacuum did make sense.
They wanted to start with the accounting first. They appointed a chartered account
Mr. Ralph Mascharnhas. According to organisational plans, the administrative service
department was to include, as a start, all the existing accounts functions. The primary
function of the Accounts Section was to lighten up controls throughout the company but
more particularly in "those areas where the potential for new economies was greatest".
After the successful implementation of the accounts section, it was decided to open two
more new departments within the administrative service department, one was the
budgeting section to install and administer a more sophisticated company wise budgeting
program and the second section was a systems section to conduct procedures program
Contd...
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