Page 53 - DMGT520_ORGANIZATION_CHANGE_AND_DEVELOPMENT

Organization Change and Development

Notes
terms of their current perception on this particular dimension and what should be the
most ideal position that we should aim at. The second dimension that was looked at was
whether we should be forthright in communications and without vagueness, for the timely
accomplishments or milestones is more important than being a perfectionist. Do we have
a climate where people can get things done? Do whatever they wanted to do to get success
for the company. If you do not have the authority you have the freedom to find out. Now,
these are some of the dimensions that were looked at in order to establish where the
company was in terms of speed and style of the changed effort because it is very crucial to
keep using dip sticks to see how things were being experienced. On the basis of all this,
each business and function received their group score as well as company’s scores. Each of
the division was encouraged and views were sought as how to empower and how to deal
with the blockages towards empowerment and how to provide enabling conditions for
them to contribute. These processes got cascaded down involving people at all levels.

To sum up in this section, there are dozen experiences that have been gained. “People first,
everything is next” is often said but rarely practiced. Review and revise as we go along a
major restructuring. The human responses and human implications, manifestations undergo
several changes and human implications, manifestations undergo several changes and
therefore, there have to be midcourse corrections and very sensitive handling of those
developments as we go along. Do not hesitate to over resource when called for. Equally,
continue to recruit quality resources because sometimes major restructuring gives you a
mindset. Look, we are far too many people, let us stop recruitment. And, that is the major
crime that one can commit, because macro level surplus should not be confused with
micro-level skill requirements and hence the need for recruiting high quality resource
wherever it is found necessary. Planning for speed is important, and, equally closely
monitor and be vigilant about the expected synergies. In a merger situation, one plus one
which is producing two is not satisfactory. It has always to be more than two.
Caution on Change in System
Sometimes in our anxiety to bring structural changes we might in fact end up throwing
the baby with the bath water. So, one has to be very clear before one dispenses with
systems and before we introduce changes rapidly. We must really be very sure as to what
is the benefit with the change. Reward system needs to recognize not only results but also
efforts because in a transition situation, results will come but there is a hell of a lot of effort
which is put into the process. Often we tend to lose sight of the effort and we only look at
the result as if the business is on a stable course. Obviously a degree of realism of budget
expectations is important because if one over-estimates it becomes unrealistic and if one
becomes an underachiever, it can have a tremendous effect on the morale of the entire
work group.
From Functional to Process Organization
The beverages business is approximately a 1000 crore business. Hitherto, indents from
sales management traveled all the way from the Corporate Office at Bangalore to various
manufacturing locations in and around the countryside and obviously one can appreciate
there is a time lag and also it lacked flexibility. So a few questions were asked as to why
there is a need for change into a process type of an organization as regards this business
was concerned. That it should in fact contribute to improve customer service at the stock-
keeping level. Obviously, there is a financial advantage if you can lower the working
capital resources, but tighter supply chain is needed to ensure stock freshness because we
are in the business of tea and coffee and we cannot deliver a product much older and stale
and, therefore, we have to reach out fresh stock to the consumers, minimize avoidable loss
Contd...

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