change management.case study

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Change Management

CASE STUDY

HYUNDAI MOTORS INDIA LTD



A STUDY OF KNOWLEDGE, ATTITUDES AND V ALUES TOW ARDS CH ANGE

M AN AGEMENT AMONG THE EMPLOYEES IN SELECTED INDI AN PRIV ATE

SECTORS AND MULTIN ATION AL COMP ANIES

ZEN HR Consulting India Pvt Ltd.

Under the Guidance of Under the Guidance of DR. E. ILAMATHIAN, MA., Dip. T & D, Ph.D.,DR. E. ILAMATHIAN, MA., Dip. T & D, Ph.D.,

Former Registrar,Former Registrar, AlagappaAlagappa UniversityUniversity

Dr. G.SURJITH SHANKAR

15/12/2008



Gandhian Thoughts on Change Management

Know that all significant change throughout history

has occurred not because of nations, armies, governments and

certainly not committees. They happened as a result of the

courage and commitment of individuals. People like Joan of Ark, Albert Einstein, Clara Barton, Abraham Lincoln, Thomas

Edison and Rosa Parks might not have done it alone, without

courage & commitment.

To be the change you want to see in the world,

you don¶t have to be loud. You don¶t have to be

eloquent. You don¶t have to be elected. You don¶t even

have to be particularly smart or well educated. You do,

however, have to be committed.



CHANGE MANAGEMENT ± AN INTRODUCTION

Henry Bergson (1990) says, ³To exist is to change, to change is to

mature, to mature is to go on creating oneself endlessly.´

Roger (1983) ³Change Management is an organized, systematic

application of the knowledge, tools, and resources of change that

provides organizations with a key process to achieve their business

strategy.

Related jargons are Organisational change, Managing change,

Continuous Improvement (K AIZEN), TQM (Total Quality

Management), BPR (Business Processes Reengineering)

Successful implementation of organizational change depends on how

organizational members react and manage to the change.

± Two main aspects to change management

A) Content of change: Technology, Marketing Strategies, HRM

B) Process: The way in which change is introduced and managed



There are various types of changes:

» Directional change

» Fundamental change

» Operational change

» Total change - Cairn» Planned changes - HRD Interventions

» Happened change ± Market situations

» Transformational change

»Revolutionary change

» Strategic change - Changes in product / Marketdomains

» Anticipatory change



There are various types of changes:

»Reactive change

» Proactive change

» Continuous or incremental change

» Participative change» Directive changes -Swift

» Leadership-driven change

» Process-driven change ± Implementation of balanced score card systems

» Organic change ± Change is part and parcel of life

» Structural Change - Merger of two organizations



Change model developed by Kurt Lewin (1951)

There are Three stage process.

"Unfreezing". It involved overcoming inertia and dismantling the existing"mind set".

In the second stage the Change occurs. This is typically a period of confusion. We are aware that the old ways are being challenged but wedo not have a clear picture to replace them with yet.

"Refreezing". The new mind set is crystallizing and one's comfort level isreturning back to previous levels.



PHASES IN THE CHANGE MANAGEMENT:

Greiner, L.(1992) has defined the phases in ChangeManagement as follows.

Preparation Phase:

1. Contact Stage2. Awareness Stage

Acceptance Phase:

3. Understanding Stage

4. Positive Perception

Commitment Phase:

5. Installation Stage

6. Adoption Stage

7. Institutionalization:

8. Internalization



7 Typical Stages of Change Processes:



NEED FOR CHANGE MANAGEMENT

» Restructuring

» Mergers And Acquisitions

» Integration to achieve economic gains

» Downsizing or rightsizing

» Rationalization or cost-cutting

» Efficiency or effectives

» Decentralization or centralization

» Flattening of the hierarchy

» Change in strategy» New product or service

» Internal market re-alignment

» Change of a senior manager

» Internal or external crisis



CHANGE MANAGEMENT PROGRAMMES

Although a variety of change programmes have been suggested over the

years, three are particularly important.

1. Business process re-engineering (BPR)2. Lean thinking

3. Total Quality Management (TQM)



SCOPE OF CHANGE MANAGEMENT

1. Leadership

2. Strategy

3. Structure4. Managing people

5. Technology

6. Marketing

7. Quality8. Costs



SIGNIFICANCE OF THE STUDY

» Many organizations around the world have not

survived the changes in their business

environments.(Vl Nilakant, 2003) Why have

some organizations succeeded while others

have failed?

The answer is simple. Organizations that

have learnt how to manage change effectively

have succeeded while those that haven¶t have

become victims of change.



SIGNIFICANCE OF THE STUDY

» How can change be effectively managed?

Unfortunately, this question has not been

answered and yet to be explored. Our current

understanding of change management can give

us many useful guidelines by few definitiveanswers. For any manager or administrator in

today¶s world, the most important challenge is

learning how to manage and administer in a

changing world.



SIGNIFICANCE OF THE STUDY (Contd.)

» The formation of attitudes toward the change is

a crucial event in the change process, because,

once formed, attitudes may be extremely difficult

to alter. Hence, Attitude towards the

management of change becomes crucial insuccessful implementation of change

management programmes than any other

external techniques and strategies. This study is

attempted to substantiate this.




» This Study is designed to know and explore the

employees¶ knowledge, Attitude and value

towards change management in their respective

organizations. Further, the influences of

demographic variables also measured in thisstudy. The results of the study may be

considered as important to evolve successful

change management that consider the

importance of attitudinal changes among theemployees. Also, the policy and programme

planners at the top level management may

make use of the study findings plan programmes

that are participative.




» This study was also designed to add the

research, which already reported in the field of

change management, to point out elaborately

the components of change management and to

assist the subject experts to design changemanagement programme accordingly.



OBJECTIVES OF THE STUDY ARE«

1. To study the knowledge on changemanagement among employees andidentifying various dimensions associated with

it.2. To study the attitude of employees towards

change management with special reference tovarious change management programmes andinitiatives in the field.

3. To study the personality dimensions onchange management.

4. To study the challenges and hindrancesinvolved in successful implementation of change management programmes.



OBJECTIVES OF THE STUDY ARE«

5. To study the influence of variousdemographic variables on attitude towardschange management.

6. To examine the extent of preparedness andacceptance towards change in theorganizations.

7. To find out the direct and indirect effect of independent variables(demographic,

personality, knowledge and value ) on attitudetowards change management.



HYPOTHESES:

Based on the review of literature available in thefield, the following hypotheses were formulated.

An extensive review of literature done by theresearch helped to formulate the null hypothesesand alternative hypotheses.

Sex of the employees does not differ significantlyon change management aspects such asknowledge, attitude and value towards changemanagement

Type of companies ie., MNC and Indian

companies, does not differ significantly on theaspects such as knowledge, attitude and valuetowards change management



HYPOTHESES:

Marital status of the employees ie., married and unmarried,does not differ significantly on the aspects such asknowledge, attitude and value towards change management

employees¶ knowledge, attitude and value towards changemanagement does not differ significantly on their level of education ie., Diploma & Degree & others and PostGraduate

The different age groups of employees differ significantly ontheir knowledge towards change management

The different salary level of employees does not differ significantly on their knowledge towards changemanagement

The different duration of years of experience the employeepossess does not differ significantly on their knowledgetowards change management



RESEARCH METHODOLOGY

The previous chapter has dealt with the main objectives andhypotheses of the present study. This chapter is to providea descriptive account of the methodology of the study.

It is aimed to study the knowledge, attitude and value of employees on change management. In order to study this,the researcher has developed three comprehensive andwell-designed scale on µknowledge, attitude and valuetowards change management¶ with god measure of reliability and validity.

The details of the questionnaires used and the samplingprocedure adopted in this study are described in thefollowing pages.



SAMPLING PROCEDURE

The study was conducted among the employees

working in various organizations those primarily fall under two categories, namely,

1. Multi-National Companies(MNC) and 2. Indian companies

in Chennai and around areas in Tamil Nadu. Initially, it wasensured that the respondents(employees) were selectedfrom all the major departments with reference their organization structure concerned.

Later, for the consolidating purposes, those organizations wereclassified into six groups such as

1. HR,2. Finance,

3. Engineering,

4. IT

5. Sales And Marketing And

6. Others.



SAMPLING PROCEDURE

Hence, the stratified simple random technique wasused to categorize the population at two levels. Firstly, thecompanies were classified into two,

1. MNCs and 2. Indian companies.

At the next level, in each organization in both the type

of organizations, the respondents were classified based ontheir department in which they worked at the time of datacollection. Using lottery method, total sample of 164 wasachieved and out this, 131(79.9 per cent) were male and33(20.1 per cent) were female. The age ranges from 20years to 58 years. Their educational status ranges from

Diploma to Doctorate degree. Further, 106 employees(64.6 per cent) were married.



RESEARCH DESIGN

The research has selected the ³Ex-post-facto´ research design

which befits the present study. The main characteristics of the ³Ex-post-

facto´ method is that the researcher has no control over the variable

studied and can only report what has happened or what is happening and

their existing knowledge. The ³Ex-post-facto´ method is also used for

descriptive studies by means of which the research seeks to measure the

variables.



PILOT STUDY

The pilot study was conducted among 20 percent (N = 33)of the employees who have been randomly selected fromthe two types of companies(MNC and India) and fromvarious respective department from the total sample of 164employees. They were administered the following scalesthat are modified in areas pertaining to attitude structuraland system change management and knowledge on role of leaders in change management to suit to the objectives of the present study.

a) Personal data sheet

b) Scale on Knowledge on change management

c) Scale on Attitude towards change managementd) Scale on Value on change management

The collected data have been analyzed by usingstatistical method of Correlation co-efficient(reliability) for the suitability of the present study. While all these scales

have been found highly reliable and applied in the mainstudy.



MAIN STUDY:

In the main study, the researcher has collected

the primary data from 164 employees through well-

designed and tested questionnaires namely, scaleon knowledge level on change management, scale

on attitude level towards change management and

scale on value towards change management.



ANALYTICAL / STATISTICAL TOOLS USED

The collected data were analyzed by using CorrelationCo-efficient, µt¶-test and ANOV A

The present study was carried out among theemployees working in Multi-national Companies(MNCs) andIndian companies in and around Chennai, Tamil Nadu. A total of 164 sample was collected and it consisted of 87(53.0per cent) from MNCs and 77(47.0 per cent) from Indiancompanies.

The researcher individually approached therespondents in the their respective places during their leisure hours. They were also briefed about the purpose of the study. The collected questionnaires along with the

personal data were subjected to appropriate statisticalanalysis namely, Correlation co-efficient, µt¶ test and ANOV A. Later, the results of this study were brieflyinterpreted with the help of formulated hypotheses anddiscussed in detail.



Diagram on Type of Organisation

Type of Organization

INDI ANMNC

P e r c e n t

60

50

40

30

20

10

0



Pie Diagram on Respondents Vs Functions:

15.9%

6.7%

18.9%

22.6%

9.8%

26.2%

S ALES&M ARKETING

OTHER

S

IT

ENGINEERING

FIN ANCE

HR



Pie Diagram on Respondents ± Education vise:

3.0%

65.9%

26.2%

4.9%

Others

Post Graguate

Degree

Diploma



Bar Diagram on Respondents ± Age Vise

Age (in years)

41 Years and Above

36 to 40 Years

31 to 35 Years

26 to 30 Years

20 to 25 Years

P e r c e n t

40

30

20

10

0



SUMMARY OF THE FINDINGS (Pg1):

It was noticed that Sex of the employees does not differ significantly on change management aspects such asknowledge, attitude and value towards changemanagement

It was found that the type of companies ie., MNC and

Indian companies, does not differ significantly on theaspects such as knowledge, attitude and value towardschange management

It was noticed that Marital status of the employees ie.,married and unmarried, does not differ significantly on theaspects such as knowledge, attitude and value towards

change management




It was found that the employees¶ knowledge, attitude andvalue towards change management does not differ significantly on their level of education ie., Diploma &Degree & others and Post Graduate

Significance difference was noticed among the different

age groups of employees on their knowledge towardschange management

Significance difference was noticed among the differentsalary level of employees on their knowledge towardschange management

Significance difference was noticed among the different

duration of years of work experience the employee possesson their knowledge towards change management




The different departments in which the employees work donot differ significantly on their knowledge towards changemanagement

Significant difference was found among the different agegroups of employees on their attitude towards changemanagement.

The different salary level of employees do not differ significantly on their attitude towards change management

The different duration of years of experience the employeepossess do not differ significantly on their attitude towardschange management.

The employees on the basis of various departments they

work do not differ significantly on their attitude towardschange management




The employees on the basis of years of experience do notdiffer significantly on their attitude towards changemanagement

The age group of employees do not differ significantly ontheir value towards change management

The different salary level of employees do not differ significantly on their value towards change management

The different department in which the employees work donot differ significantly on their value towards changemanagement

Significant (positive) association is found among the threeaspects of change management, namely, knowledge,

attitude and value towards change management arepositively correlated with varied strength of association.



CONCLUSION«.

Towards the organization of the study, the threeaspects of change management such as Knowledge, Attitude and value towards change management among theemployees were selected for an in-depth analysis. Further tothis, the result of these analysis were compared for thepossible association with the several demographic

independent variables such as Age, Sex, Salary level, Typeof company, years of experience, Marital status, Educationalbackground and so on.

From the analysis, It can be concluded that with theregard to all the three aspects such as knowledge, attitude

and value towards change management, the employees dodiffer on the basis of their sex, type of organization and inwhich they work(ie., Indian and Multi-national companies)and various departments the employees are attached.



CONCLUSION

Coming back to specific components of changemanagement aspects, it can be concluded that the differentage groups, salary levels and years of experiences of theemployees significantly differ with regard to their knowledgeon change management, while the different department inwhich the employees work do not differ with regard to their

knowledge on change management.

With regard to attitude towards change management, itcan be concluded that the different age groups of employeessignificantly differ on their attitude towards changemanagement, while employees on the basis on their salary,

years of experiences, department do not differ.

With regard to value towards change management, itcan be concluded that employees on the basis of their age,salary, department, years of experiences do not differ ontheir attitude towards change management.



SUGGESTIONS FOR FUTURE RESEARCH

I. It may be suggested to the top management of companies that more emphasis may be given onparticipation of employees in the entire process of planning and implementing of change

management programmes.

II. The change management may be studied with theappropriate tool that incorporates both topmanagement and the employees categories for acomprehensive coverage of all the stakeholders of

a change management programme.



SUGGESTIONS FOR FUTURE RESEARCH

III. It is recommended to pre and post changemanagement programme to record the necessaryimpact and changes occurred during the process

of implementation of change managementprogramme using case study method of research.

IV. In order to give more weightage to theindependent variables for the purpose of verifyingthe dependent variables in an in-depth manner,

separate tools related to personality inventorycould be used.



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