MGMT628 / HRM628 Assignment No. 1 Solution

Semester “Fall 2010”

“Organizational Development (MGMT628)”

Assignment No. ---1------ Marks: --20--

“Nature Of Planned Change”

Scenario at iGrow Co.

iGrow Co. was an innovative software development company. It was recently acquired by CompSol which is a business solution-oriented software development company. In order to ensure smooth operations after the acquisition to provide unique business solutions, the top management of CompSol decided to distribute part of its resources and costs so that the newly acquired company would easily gel in. Top management at CompSol asked its  department managers to take feedback from their iGrow employees about their reaction to the acquisition. Employees at iGrow were used to open communication necessary for innovation, whereas employees at CompSol were used to providing basic business solutions to its clientele. iGrow employees revealed a sense of tension as they felt more managers would be added to their departments increasing hierarchical levels. They felt they would not be able to get along properly with their “new” colleagues or bring forward innovative ideas and that there might be reduction in their salaries.

REQUIREMENTS:

1. From the above scenario, identify which participative management style has been exhibited by the CompSol managers (1 mark) by quoting 3 justifying reasons from the scenario (in bullet form.1 mark for VALID reason) 4 marks

2. Next, use the following table to plan out the changes (in bullet form) that will be required to make the acquisition run smoothly using Lewin’s Change Model. Use and mention valid assumptions where necessary

Requirement No. 1

Managers of CompSol are using Exploitative Authoritative System. The reasons include:

Reason:

1 There communication is downward and there is no allowance for upward communication.

2. Employees are not involved/ consulted in decision making.

3. Due to authoritative system, workers/subordinates not comfortable about their job prospects due to lack of motivation for innovation.

Applying Lewin’s Model to iGrow and CompSol’s Change Effort


Levels

Individual

Unfreezing


• Firstly, efforts should be made to feel and realize the necessity and need for change.

• Secondly, this necessity may be transpired into all individuals both from iGrow and CompSol.

• Thirdly, individuals may be educated that change is not meant for destruction but for betterment.

• Fourthly, individuals may be allowed to weigh the merits of change and demerits remaining unchanged.

Movement


• Individuals may be allowed time to understand the change and work with it.

• Provide maximum possible support to individuals/ workers.

• Allow them to make mistakes and learn from those mistakes.

• Provide training and coaching to learn new ways of doing things.

Levels

Structures and Systems

Unfreezing

• Identify the need for bringing about a change in the existing structures and systems.


• Structures and systems should be analyzed to identify the pitfalls.

• Identify the pros of introducing change and cons of remaining stagnant to the present structures/ systems.

Movement

• Allow structures and systems to take their course.


• Newly proposed structures and systems may be allowed to accommodate uncertainty in their initial operations.

• Let the benefits of new structures and system be felt and realized.

• Provide continuous feedback without getting impatient.

• Requirement of the whole system.