Models of Change Tasks at Tata Motors

Tata Motors Limited is Indias major automobile company, with consolidated revenues of US$20. 5 billion in 2009-10. It's the leader in commercial vehicles in each segment, and among the most notable three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth most significant truck manufacturer, and the world's second major bus manufacturer. The company's 25, 000 employees are guided by the vision to be "Best in the way where we operate, best in the products we deliver, and best in our value system and ethics. "

Established in 1945, Tata Motors' occurrence indeed cuts over the length and breadth of India. Over 5. 9 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. Carrying out a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles to produce both Fiat and Tata cars and Fiat powertrains. The business's dealership, sales, services and spare parts network comprises over 3500 touch points; Tata Motors also distributes and markets Fiat branded cars in India.

Tata Motors, the first company from India's engineering sector to be listed in the NewYork Stock Exchange (September 2004), in addition has emerged as an international

automobile company. Through subsidiaries and associate companies, Tata Motors has

operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar Land

Rover, a business comprising the two iconic British brands that was acquired in 2008.

In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's

second largest truck maker.

Task 1: a)

Kurt Lewin's change management model

The idea of "change management" is a familiar one in most businesses today. But, how businesses manage change (and how successful they are at it) varies enormously depending on nature of the business enterprise, the change and individuals involved. And a key part of this depends on how far people within it understand the change process.

One of the cornerstone models for understanding organizational change was developed by Kurt Lewin, a physicist as well as social scientist, Back in the 1950s, but still holds true today. His model is recognized as Unfreeze - Change - Refreeze, refers to the three-stage procedure for change he describes.

Unfreeze

This first stage of change involves preparing the business to accept that change is essential, which involves break down the existing status quo before you can build up new way of operating.

To prepare the business successfully, you will need to start at its core - you need to challenge the beliefs, values, attitudes, and behaviours that currently define it. Using the analogy of the building, you must examine and become ready to change the existing foundations as they could not support add-on storeys; unless this is done, the complete building may risk collapse.

This first part of the change process is usually the most difficult and stressful. When you start cutting down the "way things are done", you put everyone and everything off balance. You may evoke strong reactions in people, and that is exactly what needs to done.

By forcing the organization to re-examine its core, you effectively make a (controlled) crisis, which in turn can create a strong motivation to search out a fresh equilibrium. Without this motivation, you will not obtain the buy-in and participation essential to effect any meaningful change.

Change

After the uncertainty created in the unfreeze stage, the change stage is where people get started to resolve their uncertainty and look for new ways to do things. People learn to believe and act in ways that support the new direction.

The transition from unfreeze to improve will not happen overnight: People remember to embrace the new direction and participate proactively in the change. A related change model, the Change Curve, targets the specific issue of personal transitions in a changing environment and pays to for understanding this specific aspect in more detail.

In order to accept the change and contribute to making the change successful, people need to comprehend the way the changes will benefit them. Not everyone will fall in line because the change is essential and will benefit the business. This is a standard assumption and pitfall that needs to be avoided.

Time and communication are the two keys to success for the changes that occurs. People need time to comprehend the changes plus they also need to feel highly connected to the business throughout the transition period. If you are managing change, this can require a great deal of time and effort and hands-on management is usually the best approach.

Unfortunately, some individuals will genuinely be harmed by change, particularly those who benefit strongly from the status quo. Others might take a long time to recognize the huge benefits that change brings. You need to foresee and manage these situations.

Refreeze

When the changes are taking form and folks have embraced the new ways of working, the organization is ready to refreeze. The outward signs of the refreeze are a stable organization chart, constant job descriptions, and so on. The refreeze stage also needs to help people and the business internalize or institutionalize the changes. This means making sure that the changes are used all the time; and they are incorporated into everyday business. With a new sense of stability, employees feel confident and comfortable with the new ways of working.

The rationale for creating a new sense of stability in our every changing world is often questioned. Even though change is a regular in many organizations, this refreezing stage continues to be important. Without it, employees get caught in a transition trap where they aren't sure how things should be achieved, so nothing ever gets done to full capacity. In the absence of a fresh frozen state, it is very difficult to tackle the next change initiative effectively. How do you start convincing individuals who something needs changing if you haven't allowed the newest changes to sink in? Change will be regarded as change for change's sake, and the motivation necessary to implement new changes simply won't be there.

As part of the Refreezing process, make sure that you celebrate the success of the change - this helps visitors to find closure, thanks them for enduring an agonizing time, and helps them believe future change will be successful.

McKinsey 7S framework

The McKinsey 7S model involves seven interdependent factors that happen to be categorized as either "hard" or "soft" elements:

Hard Elements

Soft Elements

Strategy

Structure

Systems

Shared Values

Skills

Style

Staff

"Hard" elements are easier to define or identify and management can directly influence them: These are strategy statements; organization charts and reporting lines; and formal processes and IT systems.

"Soft" elements, on the other hand, can be more difficult to describe, and are less tangible plus more influenced by culture. However, these soft elements are as important as the hard elements if the business is likely to be successful.

The way the model is presented in Figure 1 below depicts the interdependency of the elements and indicates what sort of change in a single affects all others.

http://www. mindtools. com/media/Diagrams/mckinsey. jpg

Let's look at each one of the elements specifically:

Strategy: the plan devised to keep and build competitive advantage over the competition.

Structure: the way the organization is structured and who reports to whom.

Systems: the day to day activities and procedures that workers take part in to get the job done.

Shared Values: called "superordinate goals" when the model was initially developed, they are the core values of the company that are evidenced in the corporate culture and the general work ethic.

Style: the design of leadership adopted.

Staff: the employees and their general capabilities.

Skills: the actual skills and competencies of the employees working for the business.

Placing Shared Values in the center of the model emphasizes that these values are central to the development of all other critical elements. The business's structure, strategy, systems, style, staff and skills all stem from why the organization was at first created, and what it stands for. The initial vision of the company was formed from the values of the creators. As the values change, so do all the other elements.

The model is based on the theory that, for a business to perform well, these seven elements have to be aligned and mutually reinforcing. So, the model may be used to help identify what must be realigned to improve performance, or even to maintain alignment (and performance) during other styles of change.

Whatever the type of change - restructuring, new processes, organizational merger, new systems, change of leadership, and so forth - the model can be used to understand how the organizational elements are interrelated, therefore ensure that the wider impact of changes manufactured in one area is taken into consideration.

You can use the 7S model to help analyze the existing situation (Point A), a proposed future situation (Point B) and identify gaps and inconsistencies between them. It's then a question of adjusting and tuning the elements of the 7S model to make sure that your organization works effectively and well once you reach the required endpoint.

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

American John P Kotter (b 1947) is a Harvard Business School professor and leading thinker and author on organizational change management. Kotter's respectable books 'Leading Change' (1995) and the follow-up 'The Heart Of Change' (2002) describe a helpful model for understanding and managing change. Each stage acknowledges an integral principle recognized 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 summarised as:

Increase urgency - inspire people to move, make objectives real and relevant.

Build the guiding team - find the right people in place with the right emotional commitment, and the right mix of skills and levels.

Get the vision right - obtain 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 it can be, communicate the essentials, simply, and to appeal and react to people's needs. De-clutter communications - make technology do the job rather than against.

Empower action - Remove obstacles, allow constructive feedback and a lot of support from leaders - reward and recognise progress and achievements.

Create short-term wins - Set aims that are easy to accomplish - in bite-size chunks. Manageable numbers of initiatives. Finish current stages prior to 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 worthiness of successful change via recruitment, promotion, new change leaders. Weave change into culture.

Task 1: b)

Change should not be done with regard to change -- it's a strategy to perform someoverall goal. Usually organizational change is provoked by some major outside

driving force, e. g. , substantial cuts in funding, address major new markets/clients,

need for dramatic increases in productivity/services, etc. Typically, organizations

must undertake organization-wide change to evolve to a different level in their life

cycle, e. g. , going from an extremely reactive, entrepreneurial organization to more stable

and planned development. Transition to a new leader can provoke organization-wide change when his / her new and unique personality pervades the

entire organization.

Tata Motors was predominantly a manufacturer of commercial vehicles, and that is clearly a very cyclical business. The commercial-vehicle market in India shrank by more than 40 percent, with massive consequences for both the top and, more particularly, underneath lines of the company. The 110 million US$ loss was the first time something on this scale had happened in the company's history, and it really shook everybody within the organization. They tried to understand what had opted wrong and wanted to make a path for future years to ensure that they never got into such a situation again. So they chosen a recovery strategy that had three distinct phases, each of which was intended to last for about one and half years and 5 years in every.

Phase one was intended to stem the bleeding. Costs had to be reduced in a big way, and this was going to be considered a huge challenge for a business that was not only the market leader but had been used to operating in a seller's market and having a cost-plus method of pricing. Phase two was to be about consolidating their position in India, and phase three was to involve going outside India and expanding procedures internationally.

Task 1: c)

To be a powerful leader of an organization requires that you do five things:

Understand and interpret the surroundings where 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 normally without caring too much about how exactly you got indicated.

Develop organizational, departmental; the planet won't retain the support of your followers' team and personal capabilities.

Team building can be an application of various techniques of Sensitivity training to the actual work groups in various departments. These work groups contain peers and a supervisor.

Task 2: a)

In recent times Tata Motors have faced a lot of challenge especially from the growing competition and globalization. To fight these external evils, Tata Motors came out with plans of expansion to fight back competition via mergers and acquisitions and to fight back globalization it made a decision to spend less and thereby introduced the worlds cheapest car. But each one of these activities had severe implications on its internal organizational change. Change was seen both on the management and at the employee level. With the management level change was seen for cutting costs and providing the cheapest car to the world market with the employee level change was seen because of the essential Tata Motors to merge with Daewoo, which caused a lot of change in its employees.

Task 2: b)

Enterprise-wide change is undertaken as a matter of survival. It is not an option

and it is not a whim. Change carries high costs in terms of human and physical

resources, share prices, stakeholder insecurity, customer dissatisfaction,

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. " (Calvello & Seamon, 1995) No organization undertakes this lightly.

So, the question is, if the reason is just, the need is clear, the alternatives

evaluated, and the road to success communicated so that anyone in the

organization can easily see that the change is not optional but essential, why does the

change fail? The response, "Just being right isn't enough: you have to win the

hearts and minds of individuals who'll make the change happen. " (Marsh,

2001) There is absolutely no disembodied organization that may be changed. Only the

people within an organization can make planned change a reality by changing

their behaviours and the ways they relate with each other.

Implementing change within an organization forces visitors to alter the way they relate to

one another. Not merely do their goals, processes, equipment, and reality change

but the way they deal with others in the organization changes. This causes

anxiety and anxiety causes resistance. "only people who instigate change enjoy

it; other have to suffer it. " (Marsh, 2001)

Faced with forced change many employees feel threatened believing that they

will lose power, prestige, competence, and security. They believe that what is

happening is beyond their control, outside their sphere of influence, plus they fear

it. Depending on how this organization has managed past change, the

fears may be well grounded in experience.

Task 3: a)

The changes that contain happen within organizations around around the world the last five years, have revolutionized how organizations will continue steadily to operate for the next five years. Businesses have realized that folks are definitely more important, whether that be the client or the employees. Employees must be happy, self assured, educated, trained, motivated, and leaders in order to be able to create the sort of business that produces quality product. The client must be happy, if the employees are not happy, they have a hard time making the clients happy.

Task 3: b)

Stakeholder Analysis is the procedure that:

Is designed for group stakeholders and Understands what stakeholders expect

from the project and what they need with regards to potential risks

Identifies actions to reduce project risks and maximize benefits by working

with the stakeholders.

This covers organisational stakeholder analysis but you might ask 'What do I really do about directly involving people?' You will discover two basic approaches to this that can be summed up as Representation v Delegation. Both have advantages and drawbacks.

Representation:

Attempts to take the full range of views, interest groups and organisational units as part of the full decision making process. Characterised by democratic, committee-type decision-making.

Advantages

Disadvantages

Covers full range of views

An obvious path to gain widespread acceptance of decisions

Involves people and also require limited knowledge of the topic area

Slows decision-making

Can lead to compromises which don't really represent 'best fit' in virtually any particular area

Delegation: Delegates responsibility to prospects identified to be suitable to the job.

Advantages

Disadvantages

Work completed by those with appropriate skills and knowledge

Permits project to go forward more rapidly

Acceptance relies on trust in those delegated - may be an alien approach in the education culture

Needs care to ensure that relevant issues are properly understood and covered

Task 3: c)

A change management strategy identify, prioritise, engage and evaluate stakeholders. Explicit areas of spotlight include:

Ensure that key stakeholders come with an adequate understanding of the objectives, timeline and process.

Ensure that stakeholders who'll be significantly impacted by the initiative or the change resulting from it have a knowledge of how so when they will be affected.

Influence stakeholder attitudes to be more positive (or at least less negative) for the initiative and/or the change that it'll create.

Establish a highly effective feedback loop between the stakeholder group and the project team.

Task 3: d)

The three greatest barriers to organizational change 're normally the following.

Inadequate Culture-shift Planning. Most companies are proficient at planning

changes in reporting structure, workshop placement, job responsibilities, and

administrative structure. Organizational charts are generally revised over and over.

Timelines are established, benchmarks are set, transition teams are appointed, etc.

Failure to foresee and arrange for resultant cultural change, however, is also common.

When the planning team is too narrowly defined or too centered on objective analysis

and critical thinking, it becomes too easy to reduce sight of the fact that the planned

change will affect people. Even at the job, people make many decisions on the foundation of

feelings and intuition. When the feelings of employees are overlooked, the effect is

often deep resentment because some unrecognized taboo or tradition hasn't been

duly respected.

Lack of Employee Involvement. People have an inherent concern with change. In most

strategic organizational change, at least some employees will be asked to assume

different duties or concentrate on different aspects of these knowledge or skill. The

greater the change a person is asked to make, the more pervasive that person's fear

will be. You will see fear of change. More important, however, you will see fear of

failure in the new role. Involving employees as quickly as possible in the change effort,

letting them create as a lot of the change as is possible and practical is key to a

successful change effort. As employees understand the reasons for the change and

have an opportunity to "try the change on for size" they more readily accept and

support the change.

Flawed Communication Strategies. Ideal communication strategies in situations

of significant organizational change must attend to the message, the method of

delivery, the timing, and the value of information distributed to various parts of

the organization. Many leaders believe that if indeed they tell people what they (the leaders)

feel they have to know about the change, then everyone will be up to speed and ready to

move forward. In reality, people need to understand why the change is being made,

but moreover, how the change is likely to affect them. An enormous picture

announcement from the CEO does little to help people understand and accept change.

People want to listen to about differ from their direct supervisor. A technique of engaging

direct supervision and permitting them to manage the communication process is the key

to an effective change communication plan.

Task 4: a)

RELEVANCE IN THE TYPES OF CHANGE

Kurt Lewin theorized that we now have three stages to change:

Unfreezing:

Old ideals and processes must be tossed aside so that new ones may be learned. often, getting rid of the old processes is just as difficult as learning new ones due to the

power of habits. Equally a teacher erases the old lessons off of the chalkboard before beginning a fresh lesson, so must a leader help to clear out the old practices before you begin the new. In this part of the process you will need to provide just a little coaching because they are unlearning not learning and a lot of cheerleading (emotional support) to break the old habits.

Changing:

The steps to the new ideals are learned by practicing:

W h a t I h e a r, I f o r g e t.

W h a t I s e e, I r e m e m b e r.

W h a t I d o, I u n d e r s t a n d.

Although you will see confusion, overload and despair, there will also be hope, discovery, and excitement. This period takes a lot of coaching as they are learning and just a little bit of cheerleading due to the affect of Arousal Overloading.

Refreezing:

The new processes are actually intellectually and emotionally accepted. What has been learned is now actually being practiced on the job. Just a little bit of coaching is required and a lot of cheerleading is utilized to set up the next change process. . . remember it is c o n t i n u o u s process improvement!

Task 4: b)

1. Formulation of your clear strategic vision: To make a cultural change effective an obvious vision of the firm's new strategy, shared values and behaviours is needed. This vision supplies the intention and direction for the culture change.

2. Display Top-management commitment: It is vital to bear in mind that culture change must be managed from the top of the business, as willingness to improve of the senior management is an important indicator (Cummings & Worley, 2005, page 490). The very best of the organization should be very much towards the change to be able to actually implement the change in the rest of the organization. De Caluw & Vermaak (2004, p 9) give a framework with five different ways of considering change.

3. Model culture change at the highest level: To be able to show that the management team is towards the change, the change has to be notable initially as of this level. The behaviour of the management must symbolize the types of values and behaviours that needs to be realized in the rest of the company. It is important that the management shows the strengths of the existing culture as well, it must be produced clear that the current organizational does not need radical changes, but just a few adjustments.

4. Modify the organization to support organizational change: The fourth step is to modify the organization to aid organizational change.

5. Select and socialize newcomers and terminate deviants: A way to implement a culture is to connect it to organizational membership, people can be selected and terminate in terms of their fit with the new culture.

6. Develop ethical and legal sensitivity: Changes in culture can lead to tensions between organizational and individual interests, which can bring about ethical and legal problems for practitioners. This is particularly relevant for changes in employee integrity, control, equitable treatment and job security. Change of culture in the organizations is very important and inevitable. Culture innovations will be since it entails introducing something new and substantially different from what prevails in existing cultures. Cultural innovation is bound to become more difficult than cultural maintenance. People often resist changes hence it is the duty of the management to convince people that likely gain will outweigh the losses. Besides institutionalization, deification is another process that will occur in strongly developed organizational cultures. The organization itself will come to be thought to be precious in itself, as a way to obtain pride, and in some sense unique. Organizational members start to feel a solid bond with it that transcends material returns distributed by the organization, plus they begin to identify with in. The organization turns into sort of clan. Marsh, Christine. (2001, March). Examples of Change - Resistance or

Resilience. Performance Improvement, v40 n3 pp 29-33.

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