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Satyam computer services is a leading industry in global business and information technology business that holds a big company and a service of function with special skill and modern technology practices and worldwide deliverance which help their clients from highest value business process to improve their business performance. The company professionally focuses on business process quality, supply chain management, enterprise solution client relationship management, infrastructure services, engineering and product lifecycle management.

This is one of the biggest worldwide consulting IT services company that provides IT solutions and many other facilities including financial service insurance and lot more. The total numbers of workers are 50000. It has global network including companies in 55 countries. The company was started in June 1987 as a private company and in may it got the certification. In 1999 it was the first internet company. In may 2000 it was declared as first organization to introduce customer oriented project. In May 2001 Satyam was scheduled on New York Stock Exchange


Change management includes change in environment and called as organizational change management. It is a planned approach to change in the organization. It deals with human phase as well as psychology of industry.

For example Information technology, many scientific disciplines have developed similar approaches to officially control the process of making the changes to environments. Change management can be also 'reactive', in which case management is answering to changes in the microenvironment (that is, external source of change), or proactive, in which case management is making the change in order to attain a desired goal (that is, internal source of change). Change management can be concluded on a continuous basis, one regular schedule or when deemed necessary on a program-to-program basis.


John P Kotter's 'eight steps to successful change'

John Kotter's highly regarded books 'Leading Change'(1995) and the follow-up 'The Heart of Change' (2002) describes a helpful model for understanding and managing change. Each stage acknowledges a key principle identified by Kotter relating to people's response and approach to change, in which people see, feel and then change. Kotter's eight step change model can be summarized as

Increase urgency-

Inspire people to move, make objectives real and relevant.

Build the guiding team

Get the right people in place with the right emotional commitment, and the right mix of skills and levels.

Get the vision right

Get the team to establish a simple vision and strategy focus on emotional and creative aspects necessary to drive service and efficiency.

Communicate for buy-in

Involve as many people as possible, communicate the essentials, simply, and to appeal and respond to people's needs. De-clutter communications - make technology work for you rather than against.

Empower action

Remove obstacles, enable constructive feedback and lots of support from leaders - reward and recognize progress and achievements.

Create short-term wins

Set aims that are easy to achieve - in bite-size chunks. Manageable numbers of initiatives. Finish current stages before starting new ones.

Don't let up

Foster and encourage determination and Persistence - ongoing change - encourage ongoing progress reporting - highlight achieved and future milestones.

Make change stick

Reinforce the value of successful change via recruitment, promotion, and new change leaders. Weave change into culture.


This theory is all about principals of sport for follower which helps to change the case in positive way

According James Macgregor Burns first had brought this definition------

Consciousness rising are there in the leader tasks to raise a wide plan. the leader's act fundamentally act to induce people to be conscious or aware about what they feel and also feel true needs of people so that they meaningfully define their values and then can moved to their purposeful action.

Why Satyam fail


Maytas acquisition

In 2008, Satyam attempted to acquire (Maytas Infrastructure and Maytas Properties.

Founded by family relative of company founder ramalinga raju for $1.6

billion despite concerns raised by independent board directors. Both companies are owned by Raju's sons. This ultimately led to a review of the deal by the government, an indirect criticism by the vice president of India and Satyam's clients re-evaluating their relationship with the company. Satyam's investors lost about INR 3,400 crore in the related panic selling. The USD $1.6 billion (INR8, 000 crore) acquirement was met with disbelief as Satyam's shares fell 55% on the New York Stock Exchange.

World Bank

The World Bank had banned Satyam from doing business with it for 8 years due to inappropriate payments to the World Bank's staff. The World Bank accused Satyam of

giving improper benefits to its (the Bank's) staff and of failing to maintain documentation to support fees charged for its subcontractors. However, it clarified that Satyam was not involved in incidences of data theft or malicious attacks that had been made on the Bank's information systems

Accounting scandal of 2009

In addition to other controversies involving Satyam, on January 7, 2009, Chairman Raju resigned after publicly announcing his involvement in an accounting fraud..Ramalinga Raju is currently in Hyderabad prison along with his brother and former board member Rama Raju, and the former CFO Vadlamani Srinivas.

Clearly, the biggest sufferers in this case will be employees, shareholders and investors. But its repercussions on the market cannot be underestimated. Citing the example of UK prime minister, Gordon Brown extending help to save jobs as a consequence of credit crisis.

Consequences before merger:

Tech Mahindra, a worldwide systems integrator and business alteration consulting firm has recently attained 31 percent stake in the 'fraud hit' Satyam Computers after a long process of bidding, which ended on 13th April, 2009. Finally, the three month long ordeal was broken, and thus ended the bidding session of the beleaguered Satyam, with Tech Mahindra emerging as the top bidder, with an offer of Rs 58 per share. 

TM is to acquire the stake in an all cash deal, and also has plans to offer a 20% stake for the management control of the company as well. Presently, the board of Satyam Computers is a government appointed one and is also a subsidiary controlled by TM LTD. as it is the highest bidder to attain a controlling stake in the company. 

The Satyam board selected Tech Mahindra through a global competitive bidding process launched by the company on 9th march, 2009, which was designed in accordance with the orders of the Company Law Board, approved by the Securities & Exchange Board of India and conducted under the supervision of Justice Barouche. 

Why change required at Satyam

Downfall Of Satyam (A satyam SAGA)

Styam became in problem from here company CO MARALINGA RAJA GAVE this statement that board of directors are took a deacon that they have to purchase 55 percents Maytas properties. Maytas origination and company run by his family members it was the big surprise to share holders worldwide and the ADR cut down by 50% on the same day in the American market and the stock cut down by 30% in the Indian stock market on next day.

Then the Ramalinga Raju had taken decision immediately to extract the idea of purchasing the Maytas infra and Maytas properties. Satyam was plunged into a crisis in January 2009 after its founder, B. Ramalinga Raju, said that the company's profits had been overstated for several years. Finance professionals, however, say that the scam could not have happened without the complicity of company auditors. Satyam had engaged Pricewaterhouse Coopers as its auditors over past 10 years. The company's accounts are being restated.


Implementation of change model:

Had commercial problem because of his co's scandal so styam was in such a big loss that company could not afford expenses. There is need to do merging in another company.

Styam's employees stressed after this issues they also wanted change and satisfaction .Their leader also wanted to maintain his company reputation.

After this problem employees wanted a right way and worked in right direction.

Leader commutating to his employees emonationaly and took help for merging his company. And the vision why is he merging company?

Leader console s his employees for merging who dined for merging

Leaders should use short term action he should give his employees small targets for achieving and it will be for long tram. And should not highlight in current process.

Leader should rewarded employees for their best. Determined their problems.

Leader should promoted other leaders and make a part of his planning.


Organizational change is very important part of business phase. In many cases generally organizational changes do not succeed and promises cannot be fulfilled. A common reason is due to not understanding the culture and behavior of people in the organization. Failure of changes impact the organization in both long and short terms

Direct implication shows that objectives are not achieved all resources are diminished. Long term implications are generally resistance to change in the organization. when organization needs any change the whole focus is on reality.

It consists of values, attitudes, beliefs, feelings, habits, assumptions, emotions, norms and culture.

1. A customized approach to nature of project and prevailing organizational context.

2. Tracks interwoven with project implementation track.

3. Leadership buy in and preparation of written statement of future state early in the project.

4. Early identification and timely involvement of stakeholders.

5. The formation of change management network across the organization, involving managers, supervisors and informal leaders as change agents. 6. A real time change management approach involving careful diagnosis and periodic risk assignment.

7. Team building between client and vendor teams.



In recent context Mahindra is in a good position to compete the market. The company's financial information increase confidence in the customers but it had problems with outsourcing and the financial status was unstable so big organizations were not thought of. Mahindra Satyam today is in a much better shape to bid competitively in the market..

New Management At Mahindra Satyam

On 5th February 2009, the six-member board appointed by the Government of India named A. S. Murthy as the new CEO of the firm with immediate effect. Murthy, an electrical engineer, has been with Satyam since January1994 and was heading the Global Delivery Section before being appointed as CEO of the company. The two-day long board meeting also appointed (formerly with Tata Chemicals) and Partho Datta, a Chartered Accountant as special advisors


Satyam on Wednesday declared a loss of Rs 125 core for FY10 on a total turnover of Rs 5,481 core. For the previous year -FY09, Satyam had a turnover of Rs 8,813 core - but took a whopping loss of Rs 8,177 core. The loss was the result of years of overstated revenues, over-invoicing and other mal-practices. One positive inference that can be drawn from the numbers is the operating margin of 8.3 per cent for FY10 - which means that Satyam at an operational level now is making money. However, operating profit is usually at a much higher 20-22 per cent for large IT companies.

The future course for Satyam also seems mapped out. That Satyam and Tech Mahindra merger is a foregone conclusion to most observers. "After that, we shall come up to AP and Bombay High Courts for approval, which would officially boot start the merger process," Mr. Nayyar said.

The merging process involves determining swap ratio and ratification of the proposal at both companies' AGMs. Nine to twelve months could take in entire process," he said.