Name -Abhishek Chakraborty

Sub- Organisational effectiveness development and change

Sec - A , Roll No - 5 , MBA DAY.

Change Management Types and Case let Analysis

Strategic types of change:

1. Technology Change:​ It refers to the changes in production process including
knowledge and skill base that enables distinctive competence.
2. Products & Service Change:​ It is the adaptations of existing products or entirely new
product lines to increase the market share or to develop new markets customers and
clients.
3. Strategy & Structure Change: ​It pertains to the administrative domain (Organization
structure, strategic management, policies, reward systems, labor relations,
coordination devices, MIS, accounting and budgeting) in an organization.
4. Culture Change: ​It is the change in values, expectations, behavior of employees;
these are the changes in the mindset rather than technology, structure or products

Examples of different types of change in organizations:

Technology Change:

Situation: ​XYZ Motors have long history of producing cars in USA. They have been producing large
cars and because of the size these cars have low mileage. XYZ’s production process was most
efficient. Their per unit cost of production was cheapest in the industry and so no one could
compete with them in past. In recent years the oil prices have gone up considerably and the sales of
large cars have gone down. XYZ have been trying further to reduce per unit cost of production of
their car.

Solution​: XYZ Motors needs a technological change in the organization to tackle the above problem
which should lead to innovation in the production process. Small teams within the production dept.
should be made who will promote and encourage newer ideas to modify the production process and
manufacture more fuel-efficient cars to stay relevant.

Products & Service Change:

Situation​: Pharmaceutical company ABC over the years have grown very rapidly with thousands of
employees, number of departments, products. The R& D department has also grown in size and was
put at headquarters. Because of the headquarters location, there was some politicization in the R& D
department. So, R& D department was divided in to specific therapeutic areas and clear process and
reporting structure and authority was laid down. However, the rate of new drug discovery is going
down.

Solution​: For the above situation, the organizations need to reinvent itself and may go for open
innovation and crowdsourcing of ideas. Separate teams having boundary spanning roles could be set
up, in order to get the pulse of the environment in which it is operating.

Strategy & Structure Change:

Situation: ​Airlines XYZ is struggling to make profits. The industry is very competitive and profit
margins in airlines are very low due to lack of differentiation and high price competition. Airline XYZ
planes compare to others spend more time on ground rather than air. No of ticket sales have been
going down because of the higher prices of tickets at XYZ. One of the biggest cost drivers is cost of
aircraft.

Solution: ​The above situation calls for a strategy and structural change within the
organization. Due to increased competitiveness within the business operating environment,
large number of companies are now moving towards a flat and horizontal organizational
structure. Decision making in this case could be more decentralized in a horizontal
hierarchy, which leads to faster and agile business. Aircrafts remaining on the ground should
be tackled by giving more power to teams on the ground who can formulate newer
strategies and implement them keeping the margins high.

Culture Change:

Situation: ​Japanese Car Manufacture ABC merged with American company XYZ. Post the merger, the
efficiency of the company has gone down considerably. Disputes between employees, departments
have escalated considerably on minor issues. Production has been suffering and quality has gone
down because of the lack of coordination between employee groups.

Solution: ​The above situation calls for a learning organization, where the congruence between
culture, strategy, structure and environment enhances organizational performance. Diversity should
be welcomed in the above case, taking the positives from both American and Japanese cultures and
blend into one which would foster harmony and progress of working teams.