Professional Documents
Culture Documents
CHANGE MANAGEMENT
Individual Assignment (BSB20134-M)
HAND OUT DATE-17/10/2011 HAND IN DATE-16/12/2011
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CERTIFICATE
This is to certify that is PRERNA SHREE Roll No. PTM 1101002 of MBA stream had completed her assignment on MANAGING CHANGE IN LEADERSHIP on 16 DECEMBER 2011.
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ACKNOWLEDMENT
I am very Thankful to Ms. Amita Pasricha to providing such opportunity to prepare such type of assignment which helped me to enhance my skills. I had a lot of difficulty during my assignment but she guided me continuously and also helped me out to solve them. I would like to thank to A.P.I.I.T SD INDIA for giving me an opportunity to work on this project. At last but not the least I would like to thank to everyone who helped me out to accomplish this project.
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TABLE OF CONTENTS
Sr. No.
1. Executive summary 2. 3. 4. 5. Introduction Change focus of ICICI Change management process at ICICI and BOM merger Importance of Leadership 6 8-10 11-13 14-19
Title
Page No. 5
6. 7.
Conclusion Reference
20 21-22
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INTRODUCTION
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution and was its wholly-owned subsidiary. ICICI Bank is Indias #2 banks. But only after state bank of India and its largest private bank, with some 2500 branches and 6000 ATMs national wide. It also has locations in about 20 other countries. ICICI's retail banking group offers lending and deposit services to small businesses and individuals; larger businesses are served by the corporate banking group, which offers finance services and treasury products. The rural and government banking unit offers micro-loans and agricultural banking. Foreign operations, as well as services related to international trade finance and expatriate Indians, fall under the international banking group. Other offerings include online banking, asset management, and insurance. The chair man of ICICI is kundapur v. (k.v) kamath.Managing director and ceo is Mr. Chandra D.kochhar.executive director and cfo is N.S kannan. It is a financial sector and industry of foreign banks.
ICICI Bank has taken up specific initiatives to ramp up financial literacy as well as
Intermediation to the underserved and under banked segments in both rural and urban.
PART- A
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THE ORGANISATION CULTURE AND GOALS.ANALYZE THE CHANGES IMPLEMENTED BY KAMATH IN MID-1990S AND COMMENT BRIEFLY ON THE NECESSITIES AND EFFICIENCY OF THESE CHANGES.
In 1996, when kamath took charge over ICICI, he introduced massive changes in the organization structure. He wanted to charge the development bank into a market driven
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around its customers i.e. they wanted to be customer oriented. For this ICICI set up 3 new departments: Major client group. Growth client group. Personal finance group Necessity: - It was necessary to make such changes because previously the customers had to approach the relevant departments separately which was ultimately time consuming. This step also resists the customers to move to other competitors.
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7. Reconstructed its business: - ICICI reconstructed its business based on the recommendations of Mc Kinsey& Co in 1998. Necessity: - It had the vision of becoming a universal bank. Efficacy: - It had much better structured business that allowed it to take advantage of being a Universal bank.
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PART- B
COMPARE AND CONTRAST THE CHANGE MANAGEMENT PROCESS AT ICICI INITIATED AFTER KAMATH BECAME THE CEO WITH THE ONE FOLLOWING THE ICICI-BOM MERGER. ALSO EXPLAIN THE RATIONALE BEHIND THE EMPLOYEE RESISTANCE IN BOTH THE CASES.
A Change Process, or Change Management Process, is a set of procedures that help teams to control change effectively. It's not that you have to prevent change from happening; it's how you manage change once it occurs that really matters. This is where a Change Process is invaluable. The Change Process allows you to record change requests, and review and approve those requests, before implementing them. This Change Process makes change management easy.
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became CEO) 1. ICICI reorganization the perception of their diminished importance was not 1. BOM merger the company ensured that the importance of employees was preserved by upgrading the technological standards of the BOM banks to that of ICICI ones.
addressed (when they picked people for the new group creation IIG, O&G etc.)
2. ICICI never conducted behavioral 2. In this case post-BOM merger stages they pattern studies when implementing conducted the fears these and studies to understand typically apprehension
experienced by their employees. 3. ICICI did not established HR blue print before the merger to ensure a smooth integration of Human resources. 3. A clear HR blue-print was established to ensure a smooth integration of Human resources after merger. After merger there were a lot of
communication channels to avoid any kind involvement of employee participation and of wrong message. decrease resistance to change. A clear communication channels were established by management to avoid any kind of wrong messages. 5. Training programs were not conducted to upgard skills of employees before merger. 5. Training programs were conducted to upgrade skills of the employees after merger.
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MANAGING CHANGE AND LEADERSHIP Effective management of the people dimension of change requires managing five key goals that form the basis of the ADKAR model:
1. Awareness of the need to change 2. Desire to participate and support the change 3. Knowledge of how to change (and what the change looks like) 4. Ability to implement the change on a day-to-day basis 5. Reinforcement to keep the change in place
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MANAGING CHANGE AND LEADERSHIP Rational behind ICICI merger resistance toward change:1. Economic factor: - Employees were dependent upon productivity. They had fear that if productivity will low then their pay scale will also come down. 2. Habit: - To cope up with the complexity of life each one rely on habits like in ICICI atrophy was deep rooted in the organization. As they encountered with change, they resist to it as per their tendency to respond in their accustomed way. 3. Fear of unknown: - They had fear from unknown and change substitutes ambiguity and uncertainty. 4. Inconsistency: - They did not want any inconsistency in work or in organization. 5. Conflict: - conflict may arise in group or between the management people and employees. 6. Technological Factors:-The technological factors represent the conditions created by man which have a profound influence on his life. They had fear that if there is change in technology then they need to put afford for training and seminars. 7. Cultural Factor:Cultural Factor influences the direction and character of technological change Culture not only influences our social relationships, it also influences the direction and character of technological change.
Rational behind BOM merger resistance toward change:1. Security- Employees had feared to lose their job. BoM employees feared that their positions would come in for a closer scrutiny. 2. Authority- Employees felt that their responsibilities were not being suitably upgraded and they were also not being paid fairly. 3. Self-satisfaction They were not satisfied with change. 4. Sense of loss and Confusion 5. Fear of letting-go-off the experience which led to success in the past 6. High uncertainty, Low stability, high emotional stress.
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PART-C
THE VERY ESSENCE OF LEADERSHIP IS THAT YOU HAVE TO HAVE VISION. WITH REFERENCE TO THE ABOVE CASE, ENUNCIATE THE IMPORTANCE OF IMPORTANCE OF LEADERSHIP IN MANAGING CHANGE IN THE ORGANIZATION AND JUSTIFY YOUR REASONING.
The very essence of leadership is that you have to have vision. According to this statement a leader must have a good vision. If a leader does not have vision, then he/she cannot be a successful leader. So, this is one of the important characteristics of leader.
Leadership:It is defined as Process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task.
Leadership is an important function of management which helps to maximize efficiency and to achieve organizational goals. Similarly Kamath was also a successful leader who has increases the efficiency of ICICI.
Importance of Leadership
Initiates action- Leader is a person who starts the work by communicating the policies and plans to the subordinates from where the work actually starts. Motivation- A leader proves to be playing an incentive role in the concerns working. He motivates the employees with economic and non-economic rewards and thereby gets the work from the subordinates.
Providing guidance- A leader has to not only supervise but also play a guiding role for the subordinates. Guidance here means instructing the subordinates the way they have to perform their work effectively and efficiently. ASIA PACIFIC INSTITUTE OF INFORMATION TCHNOLOGY Page XV
Building morale- Morale denotes willing co-operation of the employees towards their work and getting them into confidence and winning their trust. A leader can be a morale booster by achieving full co-operation so that they perform with best of their abilities as they work to achieve goals.
Builds work environment- Management is getting things done from people. An efficient work environment helps in sound and stable growth. Therefore, human relations should be kept into mind by a leader. He should have personal contacts with employees and should listen to their problems and solve them. He should treat employees on humanitarian terms.
Confident:This could be the most important characteristic of a leader. If you dont believe in yourself and the success of your Venture, no one else will. Show others that you are dedicated, intelligent, and proud of what you are doing.
Co-ordination- Co-ordination can be achieved through reconciling personal interests with organizational goals. This synchronization can be achieved through proper and effective coordination which should be primary motive of a leader.
Focused:Constantly remind yourself and the group of your Ventures goals and mission. If you stay on track and keep others on track, the team will stay motivated and be more productive. As leader of the group, it is important that you schedule time to meet with your Venture Team to establish and check-in about the goals you hope to achieve.
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Available:As a leader, youre responsible for a lot and youre probably going to be very busy at times. However, you still need to find time to talk with your team. A good way to do this is to set frequent group meetings, so that no question or concern goes too long without attention.
Include others:A leader should not do all the work. Doing everything yourself is a poor use of time and prevents your Venture from growing. Instead, a leader should work with his/her teammates and learn how to delegate responsibility while being mindful of everyones interests, goals, and strengths.
Decisive:Mr.Chadha involved listening to the people around him, remember that they are not always going to be able to reach a compromise.
Required at all levels- Mr. Chadha was involved at all levels of management. In the top level, it is important for getting co-operation in formulation of plans and policies. In the middle and lower level, it is required for interpretation and execution of plans and programmers framed by the top management.
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Books
.A. Church and W. Burke,T 2005, Practitioner Attitude about the Field of Organization Development,Greenwich, JAI Press. Burnes, B. , T 2004, Managing Change (4th edn), Harlow: Pearson Education. Burnes, T. and Stalker, G. M. , T 1961, The Management of Innovation, London: Tavistock. Carnall, C.A., T 2003, Managing Change in Organizations (4th edn), Harlow: Pearson Education. D. Goleman, T 1995, Emotional Intelligence, Bantam Books, New York. Furze, D. and Gale, C., T 1996, Interpreting Management: Exploring Change and Complexity, London: Thompson International. Hayes, J., T 2002, The Theory and Practice of Change Management, Chippenham: Palgrave M. McCaskey, T 1997, Framework for Analyzing Work Groups, Harvard Business School Boston.
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Michelle Marks, M. Sabella, C. Shawn Burke, and Stephen Zaccaro, T 2002, The
Impact Of Cross- Training on Team Effectiveness, Journal of Applied Psychology.
Manz and Sims,T 2007, The Effects of Team Diversity on Team Outcomes: A Meta- Analytic Review of Team Demography, Journal of Management.
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APPENDIX
ADKAR MODEL:The image below shows the connection between the change management tools developed in the organizational change management process and the phases of individual change described by the ADKAR model. This picture is the essence of effective change management and is the core of Prosci's change management methodology.
The democratic leadership:The democratic leadership style is a very open and collegial style of running a team. Ideas move freely amongst the group and are discussed openly. Everyone is given a seat at the table, and discussion is relatively free-flowing. The democratic leadership style means facilitating the conversation, encouraging people to share their ideas, and then synthesizing all the available information into the best possible decision. The democratic leader must also be able to communicate that decision back to the group to bring unity the plan is chosen. When situations change frequently, democratic leadership offers a great deal of flexibility to adapt to better ways of doing things. Unfortunately, it is also somewhat slow to make a decision in this structure, so while it may embrace newer and better methods; it might not do so very quickly. ASIA PACIFIC INSTITUTE OF INFORMATION TCHNOLOGY Page XXI
1. Democratic leadership style can bring the best out of an experienced and professional team. It capitalizes on their skills and talents by letting them share their views, rather than simply expecting them to conform.
2.If a decision is very complex and broad, it is important to have the different areas of expertise represented and contributing input this is where democratic leader shines.
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