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Management:
Concepts and
Processes
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Change Management
in Power Distribution 5.1 INTRODUCTION
It is a common saying that change is the only constant in life. Reflect on your
own experiences. How have things changed around you − both in your social
life and your workplace? You will realise that the pace of changes has
increased manifold in the past few decades.
Therefore, we begin this unit by explaining what change is, what factors drive
change and the different types of changes taking place in businesses. We also
describe some relevant models of change. Finally, we discuss various
strategies for bringing about change in a planned manner.
In the next unit, we explain how to manage the people’s responses to change
in an organisation, in particular, their resistance to change.
The state government split the Gujarat Electricity Board into four regional power
generation companies, four regional power distribution companies, one
transmission company and a parent company. GEB restructured loans worth
Rs. 4,130 crore and brought down the interest rates from 9.51% to 8.6%. It
liquidated accumulated losses of Rs. 2,542 crore and announced a net profit of
Rs. 200 crore for 2005-2006 by managing to increase its revenues through strict
supervision of power distribution.
• The enterprise providing the value is able to share economics with the
customer by using as little matter as possible in the preparation of the
goods or services. Today, the use of automation and materials technology
has reduced the amount of processing and actual material required for
providing goods and services. These are being produced more quickly
and cheaply, and with less final bulk and weight. All this competitive
advantage is encapsulated in the phrase ‘no matter’.
‘No matter’ as a concept also includes the role of the disposable, though
we have to watch its impact on the environment. There are throwaway
razors, diapers, cameras, pens, etc. The idea of no matter also covers the
idea of the invisible purpose behind a sale. Perceiving it opens up
opportunities of lateral thinking and further beneficial change. It is all a
question of tangible products fulfilling intangible needs. Such ideas can
transform a business as these emphasise on the effectiveness of
outcomes in addition to the efficiency of inputs.
• Our concern for the environment has also driven change in the way we
Fig. 5.1: Key Change
conduct our business. In this context, power produced by renewable
Themes sources is certainly better than that produced by fossil or nuclear fuels.
However, switching over completely to these resources may not be
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possible in the near future. But the governments and power utilities the Change
world over are aware of these concerns and trying to switch over to Management:
Concepts and
cleaner technologies.
Processes
• Invention and use of newer technologies has the biggest impact on
business, industry and society in determining the pace and nature of
change. We have mentioned here some factors and the changes likely to
take place in future.
We would also like to provide you a glimpse of the changes expected in future
in the world of work.
We are into the age of what is called the ‘shamrock organisation’. Such
organisations are employing three categories of workers:
At different times of their lives, people may find that different work styles suit
them better and switch over from one category to another. People may
actually have a portfolio of approaches to work from which they may invoke
the element which suits a particular part of their life cycle (Fig. 5.2). The
portfolio may include wage work, field work, home work, (domestic, do-it-
yourself, etc.), gift work (for charity or the community) and study work (self-
education). Thus, as the pattern of work changes, lifetime work for one
employer will become increasingly rare, and wider opportunities will emerge.
In addition, the requirements for various kinds of work skills and capabilities
are undergoing a radical change. Now-a-days, the services sector has
become as important as the manufacturing sector. It requires more mental and
interpersonal than manual skills. Most of these brain workers will require
higher education, which enough of them are certainly not getting in most
countries.
As managers, you should be aware of the factors that are bringing about
change in your own business and should be able to cope with them. You will
also need to educate your workforce to appreciate the nature of these
changes for creating a better world of work and life. A proper understanding of
the changes in working methods and their impact on careers and employment
patterns can help people to be less anxious about the apparent insecurity
caused by changing technology, methods and external market forces.
In the world of work, the need for a change mindset (which does not assume
the permanence of the status quo), and of a future mindset (which projects
itself into the future and sees new possibilities) is going to be vital. There are
revolutionary trends at work. It will not be wise to ignore them.
Reflect upon the changes that have occurred in the past few years in your
organisation. Enlist the continuous and intrinsic changes amongst those.
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All changes are not similar in nature. Some changes keep on happening on
their own and some are planned. Three types of change (Fig. 5.3) may be
identified:
• Evolution
• Revolution
• Planned change
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The major benefits of this position are stability, less effort, comfort, less risk
but it also brings no growth, boredom, dissatisfaction, conformity and
stagnation.
• Market changes;
• Technological changes; and
• Organisational changes.
• Market Changes
While such changes are sure to improve quality and bring about customer
satisfaction, small businesses may be affected adversely. It seems that
even political will is succumbing to WTO led forces in developing countries
and this could be detrimental to national interests, in the long run.
• Technological Changes
• Organisational Changes
You must be reading about such changes in national dailies; it has almost
become a rule in the technologically developed economies and is now not
an exception for developing countries. In the first quarter of the year 2007,
Indian business houses have acquired offshore companies and vice versa.
As such, this seems inevitable with little scope for escape but there is no
need to perceive it as a threat; it could also be looked upon as an
opportunity to compete and be a winner.
Factors Changes
Outline the changes in the power distribution sector brought about by the
three categories of drivers of change described in this section.
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Change Management
in Power Distribution 5.4 THE PROCESS OF CHANGE
You have learnt so far that change is the process of moving from the current
state to the desired state (vision) of future (Fig. 5.6). Making a change involves
moving the work force in organisations and its work culture in line with the
strategies, structure, processes and systems to achieve the desired state
(vision).
The existing situation signifies the prevailing status at a point of time of what
the organisations looks like. The desired situation is the status which one
desires to prevail; it is also called the vision. The vision of an organisation
helps in clarifying
1. Unfreezing
• Driving forces, which prompt change and drive away from the status
quo, and
• Restraining forces, which hinder the movement.
This technique, called the force field analysis, is explained in Box 5.3. 19
Change Management Box 5.3: Force Field Analysis
in Power Distribution
4. Identify the forces working for the change, (i.e., driving forces) by way of
individual listing, brainstorming or such other means.
5. Identify and list forces likely to work against the desired change
(restraining forces). These forces can be related to human resource,
time, money, technology, customer requirements or any other internal or
external factors.
6. From the list of driving forces and restraining forces, prioritise the
forces and identify 3-4 most significant forces under both categories.
8. Discuss and list possible action steps for reducing or eliminating the
effect of the restraining forces and for adding or increasing the effect of
the driving forces.
9. Determine the most effective steps under both the categories of forces
and decide on the ones to be implemented.
10. Examine the resources available for carrying out each step.
13. Evaluate.
2. Intervening
The steps to be taken for carrying out the desired change should be
planned considering all aspects: tasks, technology, structure and
human resources. Since any organisation is composed of these four
inter-related and interdependent components, the impact of the changes
should be anticipated and examined. New responses should be developed
by providing new information.
3. Refreezing
The change interventions start making the desired impact in due course of
time and need to be stabilised. Refreezing stabilises a change
intervention by balancing the forces which have created the desired
changes (driving forces) and those, which are inhibiting the changes
(restraining forces). For rapid and deep change, the forces applied should
20 be strong, the direction should be clear and the force should be applied in
the right direction. This stage helps in stabilising and integrating the Change
changes. This is attained by integrating the new responses into persons Management:
Concepts and
and into significant ongoing relationships through reconfirmation.
Processes
At this stage, efforts are made to explore, analyse and identify the
problems and unused opportunities, understanding the causes and
visualising the effects. For this, a climate has to be created where people
share their opinions and experiences openly and the management is
willing to admit the gaps, slippages, wastages and other problems.
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Change Management Otherwise, examine the feasibility of implementation of the next
in Power Distribution preference.
• Ensure the commitment for the change initiatives and resources, and
the commitment of the key persons in the organisation and outside.
These strategies/action plans deal with how the movement from the
existing to the desired state would be accomplished. Thus this stage would
indicate how the results would be accomplished. For this, a wide range of
alternative strategies to reach the new stage or preferred scenario would
be identified. Each of the alternative strategies would be evaluated and the
appropriate strategy would be selected which would help in achieving the
desired outcome. These strategies would next be translated in the form of
workable plans.
The key resource persons and other team members are identified and
team building initiatives taken to ensure shared vision and commitment to
change. The role of each member is clarified. A number of workshops,
training sessions, meetings and presentations are usually held at this
stage.
The objective of this stage is to plan for effecting the desired changes for
achieving the vision. An action plan is prepared indicating the activities,
responsibilities, time frame, counting huge measures and required
resources.
4. Implementation
This is the most crucial stage. The action plan has to be implemented and
the persons involved have to be educated and convinced about the gains.
Extensive communication is required and high orders of leadership skills
especially persuading skills are required. A number of presentations,
meetings, workshops need to be held.
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Change Management Table 5.3: Steps in Action Research
in Power Distribution
Step Description
For attaining enduring results, change cannot be left to chance; rather planned
efforts have to be made. On the basis of various change models (Sec. 5.5),
we can formulate a general approach for carrying out planned change. It
consists of the following steps:
Awareness tends more often than not to create an imbalance and disturb
the status quo. People respond in different ways to the situation.
Awareness may lead to anxiety about creating future scenarios (e.g., likely
gains and problems to be faced) and therefore generates energy in those
who become aware.
Once the awareness spreads, the involved people start feeling the need
for change in the organisation, particularly the need for elimination of
unhealthy situations. They start thinking about ways and means to avoid
such situations and about the consequences if no change is made. The
feeling is intensified when the actual/projected results are not in line with
expectations.
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Change Management of senior people and on the basis of observations or the interaction; s/he
in Power Distribution can get an idea of the readiness to change.
General Considerations
• Growth rate
• Crisis (situation)
• Macro-economic
• OD history
• Culture
Resources
• Time commitment
• Money
• Access to people
• Structural flexibility
People Variables
• Interpersonal skills
• Management development
Source: J.W. Pfeifer and John E Jones, The 1978 Annual Handbook for Group Facilitators
The results of the change initiatives (the gap between the planned and
desired) should be measured periodically. For this, a befitting feedback
mechanism needs to be set up – to gather information by survey, focus
groups, interviews, etc. Usually, it has been found that even if encouraging
results are obtained in the beginning, with the passage of time, the
situation starts deteriorating. Managers can intervene by way of providing
support, appreciation and training, etc. Special meetings, celebrations,
support groups and certain types of reinforcements are needed for
sustaining and enhancing the results.
Cite an organisational example (from the power sector) where massive and
successful change has occurred and discuss the phases of change in that
organisation.
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Change
5.7 STRATEGIES OF CHANGE Management:
Concepts and
Processes
Change has been a matter of great interest to the Sociologists and
Behavioural Scientists. A number of theories and models have been
postulated. These have been compiled in the literature as seven pure If we have good,
strategies of change. We discuss each of these strategies, in brief. warm inter-
personal relations,
1. The Fellowship Strategy all other problems
will be minor.
The assumption underlying this strategy seems to be, “If we have good,
warm inter-personal relations, all other problems will be minor.”
Emphasis is placed on getting to know one another and on developing
friendships. Groups that use this model often sponsor discussions,
dinners, parties and other social events that bring people together.
Political strategists tend to believe that “if all the really influential people
agree that something should be done, it will be done”. They
emphasise a power structure that usually includes not only formally
recognised leaders but informal, unofficial leaders as well. Much of the
work done under the political strategy is the result of the leaders’ informal
relationships.
The basic assumption behind this approach is, “People react to genuine
threats. With enough physical force, people can be made to do
anything.” Therefore, considerable time is spent in learning to use
Fig. 5.15: The Military weapons and to fight. Physical conditioning, strength, and agility are
Strategy valued.
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Membership in military-strategy groups is often determined by one’s Change
physical power and by one’s willingness to submit to discipline. Both Management:
Concepts and
within the group and in its dealings with the external environment,
Processes
influence is exerted primarily through the fear of authority and through the
threat of punishment. Members of military-style groups need control,
status, and security. They often tend to view most problems and
relationships in terms of power, authority, threat and exploitation.
• People really don’t resist change; they resist the pain or threat, which
they anticipate for themselves or others out of it.
• Change agents are required for affecting changes. They must know how
to analyse and manage the restraining and driving forces (Unit 7). High
adaptability helps change agents and change plans.
• Communication
Case Study
Case Study
The persons likely to be affected need to be involved right since the initial
stage. Their active involvement in all stages of the processes will not only
provide valuable ideas at every stage but also inculcate a sense of
ownership. For example, in installing an incentive scheme in a medium
size Engineering company, the line managers and worker representatives
were involved right from the beginning, i.e., from the stage of feeling the
need, identifying the benefits and problems, collection and analysis of
data, designing and developing the system.
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Change Management • Negotiation
in Power Distribution
Negotiation is quite useful in dealing with resistance to change. It is also
useful when resistance comes from a powerful person. Three basic types
of negotiating styles have been described – Tough battler, the
Supportive Facilitator and Cognitive Reasoner.
• Co-opting
• Manipulation
5.9 SUMMARY
1. Consider your present job and indicate which benefits emerging out of an
effective change management are most important to you?
a) Career advancement.
b) Improved prospects.
c) Job security.
d) Increased job satisfaction.
e) Respect and recognition.
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Change Management c) What were your thoughts and feelings before the change? Did you
in Power Distribution have any fears? What were those?
e) What would have helped you to cope with the changes better?
d) What support and tools should be provided to the involved persons for
managing the transition?
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