Page 161 - DMGT520_ORGANIZATION_CHANGE_AND_DEVELOPMENT
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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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