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Tata Motors Limited has revenues of US$20.5 billion in 2009-10. The company's 25,000 employees are guided by the vision to be "Best in the manner in which we operate, best in the products we deliver and best in our value system and ethics."
Tata motors was formed in 1945 and till date has expanded across all locations in India. Today around 6 million Tata vehicles run on Indian roads. In 2005 Tata motors had entered a strategic alliance with Fiat to produce power trains and cars. Tata Motors also distributes and markets Fiat branded cars in India.
Tata Motors is the first company to be listed in the New York Stock Exchange (September 2004) belonging to engineering sector of India. Today Tata Motors has
Operations in the UK, South Korea, Thailand and Spain. Jaguar Land Rover, was acquired in 2008 by Tata Motors and it also acquired the Daewoo Commercial Vehicles Company of South Korea in 2004 (http://www.Tatamotors.com)
Task 1: a)
Kurt Lewin's change management model
Today the theory of change management is plays the huge role in most of the business. However, how organisation change in their culture it is depend on the type of industry, change requirement and involvement if the individuals. The key thing in change management is hoe the individuals is recognised or get settled in change process.
To understand the change management process in business Kurt Lewin's developed the change management process model. This model was developed in 1950s and still is most used method in today's modern business. Lewin's change model is going through three stages which is start from Unfreeze - Change - Refreeze and each of these stages is mention below.
In this first stage of change process is preparing to check and requirement of change within the business, which involves identify the key areas which needs to change and try to break it so that you can introduce the new operation.
To organize the business effectively, you need to begin at its nucleus and you need to challenge the viewpoint, ethics, approach, and behaviours that presently define it. With the similarity of a structure, you must study and be planned to modify the existing basics as they may not support add-on storeys unless this is done, the whole building may risk collapse.
Usually the first part of the change process is very difficult because here you need to identify the key areas where you think change should be required. Furthermore, you may face some strong reaction who does not like the change and you should balance everything when cutting down the things.
By forcing the organization to re-evaluate its nucleus, you efficiently make a calamity (which is under control), which in revolve can make a tough inspiration to search for a new balance. Without this inspiration you would not obtain to buy-in and contribution require resulting any significant change.
After all the doubts which is created during the unfreeze stage, the change is the stage where you can try to resolve all the doubts and try to do the things in new different ways. In these stage individuals start considers and thinks in that way so that they support the new course.
The conversion form unfreeze to change takes a bit time it does not happen suddenly, usually individuals take time to get adjust from unfreeze to change process. . A interrelated change model concentrate on the exact problem of individual evolution in a changing atmosphere and is helpful to understand this i will explain in detail below.
Individuals should understand how the change process will help them if you want to create the change successful and acceptable within their employees. You should link the change with the individual benefit they simply did not accept the change only on the basis of the change is essential for the organisation.
The two key elements to success of the change process is Time and Communication which plays the huge role. People should need some time so that they were able to understand the change and this should be highly communicated with in the employees during the change period. This is the best approach you can use while managing the change which requires great deal of time and effort.
Regrettably, some individuals actually affect or harmed by the change mainly those who get the advantage for the past strategy. Others may take a bit long time to accept the change infect they accept it only when they think they will get benefit from the change.
When the changes are get start settle in the business and individuals have accepted the new ways of operational the association is prepared to refreeze. The outcomes signs of the refreeze are a steady business plan reliable work responsibilities and so on. The refreeze stage also needs to help individuals plus the internal matters of the business and try to refreeze it. That means a change should be a continuous process and needs to there in every business. With a new sense of stability, workforce feels positive, secure and motivated in new culture of the organisation.
There is always a big question mark over whether a change is required in the business or not if it is required how far it should be. Although change process is regular and continuous process but this refreeze stage is very important to complete the change process. Furthermore, employees also not been able to adjust with the new culture of the business and they not even know their new role and responsibility in the business. If you did not refreeze the change effectively then it is very difficult to attempt the next change successfully.
The another part of refreezing process is make sure that you should enjoy yourself in the new culture of the organisation which helps the employees to enduring himself from the past stressful and sore time . (Sarah Cook, 2004)
McKinsey 7S framework
The McKinsey 7S model is a vital tool for the detailed study of the strategies that are to amended or to be changed. McKinsey's model is a tool which focuses on the internal factors of an organization and can be implemented on a team or a project as well.
The McKinsey 7S model can be used over various situations where a perspective is may be helpful, such as;
Enhancing organization's performance.
Align departments during the time of mergers and acquisitions.
Implementing the best proposed strategies.
Deciding the future changes in the organization.
The elements in the model can be further categorized as;
'Hard elements' are easy to identify and define and the management of the organization are directly influenced by them. These are the main aspects of all official processes, organizational plans, reports and IT systems.
'Soft elements' are the aspects which are difficult to describe that are less tangible and are more affected by the culture. (Prahalad ,1990)
Strategy: It is a scheme develops for maintaining & constructing competitive advantage over the opposition.
Structure: hierarchy of positions in the company.
Systems: the day today functioning of workforce for getting the job done.
Shared Values: core values of the corporation which are supported in the corporate culture and the general work ethic.
Style: the manner of leadership pattern implemented.
Staff: the workforce and their wide-ranging potential.
Skills: the real skills and competencies of the workforce functioning for the business.
The basis of model is, if a business has to excel then the seven elements have to be arranged in a line and equally strengthen. It is used for identifying what requires to be realigned to get better performance, or for uphold alignment & performance throughout erstwhile kind of change. whatsoever the category of change - whether it be restructuring, mergers & acquisitions, new processes & systems or alteration of leadership, this model is used if comprehending how the business rudiments are interconnected, and also it ensures the wider impact of changes done in one region which is engaged into deliberation.
This model is used for study of the present situation, a projected future situation and for identifying fissure and irregularity flanked by them. By making adjustment and fine tuning of the elements of the 7S model can be, the effective organization mechanism can be ensured. (Sarah Cook, 2004)
John P Kotter's 'eight steps to successful change'
John P Kotter is a Harvard Business School professor and leading thinker and author on organizational change management.
Kotter's suggest a model for change which has eight stages and can be outlined as:
Increase urgency - encourage employees to progress, and make the objectives seem genuine and important.
Assemble the channel team - get hold of the right employees in correct position who have the accurate poignant promise, and the true blend of skills and stage.
Get the vision correct - catch up or the team to set up a uncomplicated vision and strategy, focus on poignant and imaginative characteristic essential to impel service and efficiency.
Communicate for buy-in - engage more and more individuals as possible, correspond the fundamentals, simply, and to request and react to people's requirements, De-clutter the communications. Formulate the technology to work in your favour instead against.
Empowerment of deed - Eliminate barriers, facilitate constructive feedback and plenty of support from leaders, reward and recognise development and accomplishment.
Create short-range Goals - lay down short time goals which are easy to achieve in controllable figures of initiatives. End present stages prior to going for the new stages.
Don't give up - promote and support fortitude and perseverance, give confidence in ongoing development, bring to light the accomplish landmarks and emphasize on the future ones.
Make change fix - strengthen the worth of victorious change via recruitment, promotion and novel change leaders. Intertwine the change into traditions (Sarah Cook, 2004).
Task 1: b)
Change management is done to achieve some overall goal and its not done only for namesake change. More often than not, the factors like significant incise in grant, dealing with main new markets or new clients, requirement for spectacular boost in productivity and services, etc. are the reasons behind a aggravated organizational change.
In general, organizations must carry out enterprise-wide change to develop itself to a different level in its span of lifecycle.
Tata Motors was primarily a maker of commercial vehicles and it is a extremely recurring type of industry. The commercial-vehicle market place in India shrivels in excess of 42 %, with enormous repercussion on top and operational management of organisation. The 110 million US$ deficit was the first time something on this magnitude had taken place in its past, and this actually tremble each one within the organization. Tata Motors struggle to understand what had gone erroneous and hunted to generate a trail for the upcoming days to make certain that they by no means got into such circumstances for a second time. Tata motors determined and implemented a revival plan which had three discrete stages, every one of which was anticipated to last for approximately 1.5 years and 5 years in total.
Stage I was planned to stalk the haemorrhage. Expenses had to be abridged in a gigantic manner, and it was a massive defy for a organisation that was not only the major player in business but had been making use of a cost-plus loom to its value strategy. Stage II two was seen as strengthen their place in India as market leader, and stage III was all about intensifying their business internationally. (http://www.Tatamotors.com)
Task 1: c)
To be an effective leader of an organization requires you to do five things:
Understand and interpret the environment in which he operate
Develop winning strategies
Execute them brilliantly;
Measure the impact of your strategies followers. If you get results, people will support you, systematically, adjusting strategies as often without caring too much about how you got indicated.
Develop organizational, departmental; the world won't retain the support of your followers' team and personal capabilities.
Team building is an application of various techniques of Sensitivity training to the actual work groups in various departments. These work groups consist of peers and a supervisor (Rob Paton, 2008).
Task 2: a)
In current period Tata Motors have counter a lot of confront more than ever from the increasing antagonism and globalization. To tussle back these peripheral problems, Tata Motors arrive out with strategy of expansion and growth to retaliate antagonism via mergers and acquisitions. And also to fight back the effect of globalization it strong-willed to slash expenditure and in that way bring in the worlds cheapest car. But all of these actions had brutal insinuation on its in-house organizational change. This effect of Change was seen both on the top and middle management as well as at the employee level. At the management level, the insurgent change was seen for slashing the expenditure and manufacturing and offering the cheapest car to the world market in stipulated time. At the employee level the change was mainly seen because of the a great deal necessary merger of Daewoo with Tata Motors, which profoundly originated a greater deal of change in its employees (http://www.Tatamotors.com).
Task 2: b)
Organisation-wide change is embarking on as an affair of continued existence. It is not an alternative or nor it is a notion. Change clutches a very huge expenditure in terms of human and physical assets, share prices, stakeholders' lack of confidence, consumer discontent, receivables and cash flow. "The reality is often a painful period of change, during which resistance is high, morale is low, productivity is falling, and confusion is
rampant" (Marsh, 2001). None of the organization accepts this without due consideration. As a matter of fact why does the change fails in spite of its grounds are now right, the need to change is very clear, its substitute are properly assessed, and the path to success is corresponded as such that each one in the organization can distinguish that the change is not discretionary but necessary. The solution or probable reason for this is, "Just being right isn't good enough: you have to win the hearts and minds of the employees who will make the change happen" (Marsh, 2001). There is not such incorporeal organization that can be changed. It is its staff who can craft intended change into realism by altering their behaviours and the conducts they communicate to each other. Putting change into operation in an organization forces employees to adjust how they communicate to each other. It changes the ways in which they deals with one another and changes their approach towards goals, processes and equipments. This may lead to anxiety which further causes resistance for change. "Only people who instigate change enjoy it; other have to suffer it (Marsh, 2001)." A lot of employees feel endangered if they are forced to change supposing that they might go down on power, prestige, competence, and security. They sense that what is occurring is outside their control, beyond their area of authority, and so fright about it. These suspicions may be well high and dry in experience but it also depend upon how the organisation has faced the change in past (Marsh, 2001).
Task 3: a)
The changes that have happen within organizations around the world over the last five years, have revolutionized how organizations will continue to operate for the next five years. Â Businesses have realized that people are more important, whether that be the customer or the employees. Â Employees must be happy, self assured, educated, trained, motivated, and leaders in order to be able to create the type of business that produces quality product. Â The customer must be happy, and if the employees are not happy, they have a hard time making the customers happy (Porter, 1998). Â
Task 3: b)
Stakeholder Analysis is the process that:
Is intended for group stakeholders and Understands what stakeholders expect
from the project and what they need in next of impending risks
It recognizes activities to reduce risks and exploit profit by functioning with the stakeholders.
In stakeholder analysis involvement of employees can be done by using two fundamental approaches, Representation & Delegation. Both of them have certain advantages and disadvantages. (Sarah Cook, 2004)
It endeavours to take in the complete variety of views, interest groups and organisational units as part of the complete judgment making process. It is also characterised by self-governing, committee-type judgment-making process.
Covers full range of views
It has apparent way to achieve extensive approval of judgment
Involves people who may have limited knowledge of the subject area
time-consuming decision-making process
May lead to concession which doesn't symbolize 'best fit' in every meticulous region
Delegation: It pass on liability to those recognized as being best suitable to the job.
Job done by those who have appropriate skills and acquaintance
lets the system or work to progress forward extra swiftly
the acceptance simply relies on faith in those delegated
requires concern about covering of all relevant issues & its proper understanding.
Task 3: c)
A change management strategy helps in identification, prioritisation, engagement and assessment of stakeholders. Explicit region of spotlight contain:
Ensuring of sufficient indulgent of the objectives, timeline and procedure by every key stakeholder.
Ensure that stakeholders who will be significantly impacted by the initiative or the change resulting from it have a clear understanding of how and when they will be affected.
To persuade stakeholder outlook to turn into more optimistic or in any case less pessimistic en route for the proposal and/or the change that it shall fetch in regards.
To ascertain an effectual response sphere between the stakeholder set and the management panel (Rob Paton, 2008)
Task 3: d)
The three greatest barriers to organizational change are most often the following.
Insufficient planning of change of customs.
The majority of organisations are superior at scheduling changes in reporting composition, Job region assignment, work responsibilities, and organizational structure. Organizational charts are usually amended repeatedly. Deadlines are set, yardstick are laid down, changeover group are agreed upon, etc. it is nowadays common to forecast lack of success and arrangement for consequential change. Whilst the planning team is moreover barely defined or is as well determined on purpose investigation and decisive philosophy, it becomes excessively effortless to mislay prospect of the fact that the intended change will have an effect on staff. Even at work, employees formulate a lot of judgment on the basis of opinion and perception. When the opinion of staff ignored, the consequence is over and over again unfathomable bitterness due to a number of unrecognized outlawed or custom has not been suitably valued.
Be short of employee participation.
Employees have an intrinsic terror of change. In the majority of strategic organizational change, in any case a few employees are asked to presume different odd jobs or focus on diverse facet of their Talent and expertise. The larger the change a employee is solicited to make, the more invasive that employees fear might be. As there is fear of failure in new presumed roles there will be fright of change. For triumphant change
Employees should be involve as early as possible and allow them make as much of the change as achievable. As employees appreciate the motive for the change and have a chance to "endeavour the change on for magnitude" they further willingly accept and shore up the change.
Defective Communiqué Strategies.
Idyllic communiqué stratagem in circumstances of noteworthy organizational change must concentrate on the message, the manner of deliverance, the occasion, and the significance of information shared with assorted division of the organization. A lot of leaders think that if they tell their employees what they fell about the change, after that each one shall be committed and prepared to progress forward. In actual fact, employees require to be aware of why the change is being made and also more significantly, how the change is to be expected to have an effect on them. A full-size portrait message from the CEO helps a smaller in employee understanding and accepting the change. They want to hear about the change from their immediate managers. An approach of appealing straight supervision and permitting them to handle the communication process is the solution to a successful change strategy (Patron, 2006, Cook et. al., 2004)
Task 4: a)
RELEVANCE OF THE MODELS OF CHANGE
Kurt Lewin states the three stages to change:
Create motivation/readiness for change
Demonstrate need for change
Communicate desired future
Old principles and procedure must be chucked away and new system must be cultured. Discarding the old procedure can be as complicated as learning the new ones because of behaviour influence. A leader must aid to clear out the old custom before commencement of the new. Throughout this part of the progression a small tad of training is required to be imparted, also a great amount of emotional support is required to smash the old practices.
Identification with new vision of the organization
Benchmark, invent, innovate
Even though there will be great amount of bewilderment, overwork and anguish, there will also be optimism, innovation, and exhilaration. This phase of change necessitate a lot of training as the employees are getting use to new customs and small amount of support for the affect of stimulation congestion.
Link new behavior to self-concept, reward
Create social acceptance of new behavior
The new procedures are now rationally and sensitively acknowledged. The things that were newly learnt are now in fact practiced on the work. Again some training and support is required for setting up further change process as it is continual process upgrading. (Rob Paton, 2008) (Sarah Cook, 2004)
Task 4: b)
Formulation of a strategic vision:
A understandable vision of the organisations new strategy and its shared values is required for carrying out effective change. This vision gives the purpose and course for the transform.
Exhibit Top-management dedication:
It is essential that change is managed from the top-management of the organization, for eagerness to change of the senior management is a central pointer (Cummings & Worley, 2005, page 490). The top management should be in support of the change in way to really execute the change in company.
Model change at the highest level:
The change must be very well-known at its first stage which shows management is in its close favour. It is also significant for management to shows the power of its present culture as well; it should be emphasized that present enterprise does not require sweeping changes, but just a small number of alterations.
Adjust the organization to sustain change:
The fourth step is to rearrange the structure of company to carry out change.
Select and entertain newcomers and remove non co-operators:
A method to put into practice a change is to unite it to organizational partisanship, employees are recruited or removed w.r.t. their fit with the new system.
Enlarge ethical and legal feeling:
Changes in culture go ahead to create nervousness amongst organisation and its staff which leads to ethical and legal trouble. This is predominantly applicable for alter in staff integrity, control, fair treatment and job security. Change in the organizations is very significant and unavoidable. Improvement is bound to be of greater complexity than continuation. Employees over and over again oppose changes therefore it is the responsibility of the management to persuade people for possible gain which shall overshadow the losses. (Porter, 1998)