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CHANGE
MANAGEMENT
PRACTICES IN
INDIAN IT
INDUSTRY

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ABSTRACT
Organizational change is important because global and societal change is both
pervasive and persistent. We live in a rapidly changing world. These changes have
transformed and are continuing to transform the businesses and organizational
environments around the world. The winds of change that have swept organizations
across the world reached the Indian subcontinent in 1991. Prior to 1991, the idea of
Indian organizations becoming world class producers would have evoked cynicism and
derision. Yet, this is precisely what many Indian organizations hope to become in the
coming years. But very few Indian organizations are moving in this direction
systematically managing the critical factors that determine success in the new globally
competitive environment.
Managing change is probably the single most important issue today for all those
who have undertaken the difficult task of managing organizations. The complexity and
dynamic nature of the environment has placed greater demands on organization to be
flexible, responsive and efficient. Around the world, organizations big or small face the
inevitable prospect of change. The intriguing question is why have some organizations
succeeded while others failed? This intriguing question has thrown a good opportunity to
study change management practices in IT industry. The IT industry occupies the major
share of service sector in this country. The reform process started in 1991 posing
challenges to the corporate people as never before. After liberalization, various
companies have joined the IT industry in India. The environmental pressures control the
change management practices and advances through changes in the organization over a

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period of time. It is generally believed that the efficiency of employees will be affected
through changes in environment and organization. Different companies respond to
changes in different ways depending upon the implementation of strategies with respect
to environmental pressures. As a result they contribute differently to industry and
economy. These differences in responding to changes paved a good opportunity to
evaluate the change management practices across companies in this movement.
The present study is carried out in a period in which changes in the environment
control the change management practices and advances through changes in the
organization over a period of time. Employee response towards prevalent change
management practices is collected through both primary and secondary data.

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The primary data is collected by distributing a well designed questionnaire to employees
and asking for their genuine responses. Also it is collected by conducting face to face
interviews. The secondary data is collected from company’s websites, published annual
reports, journals and articles.
IT companies in Bangalore and Hyderabad are contacted through emails. In
response to this employees of 12 companies have positively responded and permitted to
do research. Among them six companies are selected for study as good number of
employees with full information is responded from only six companies. Two companies
each according to size are selected i.e., two large, two medium and two small by
following purposive sampling.
This research thesis on Change Management Practices in Indian IT industry has
studied the prevalent change management practices, measured the employee response to
these practices, assessed the changes brought about in the organization, analyzed the
causative factors, identified the factors influencing the readiness to change, studied the
impact of organizational change measures on individual change mechanism, measured
the growth in individual performance and satisfaction of post change process.
The hypothesis is estimated and confirmed by using specific statistical tools viz.,
Chi-Square, ANOM and ANOVA to meet the objectives. The period of the study is from
2012-2015. The descriptive and analytical research design is adopted for the study. It lays
particular emphasis on analysis and interpretation of information.

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It is found that there is no much difference in change management practices
across the companies but there is difference in change management practices within
companies. It is also found that there is a significant relationship between support for
change and resistance to change. It is also found that there is a significant relationship
between support for change and image of change manager. Along with this it is
concluded that there are five factors of readiness for change namely change management
system, organic structure, market driven innovations, employee motivators and
reengineering effort. Apart from this it is also concluded that readiness for change
depends on causative factors of change, diagnosis for change, support for change,
resistance to change, communication of change, linking vision and change, impact of
organizational change measures on individual change mechanisms, individual change
initiatives and post change process.

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CHAPTER 1
1.1 INTRODUCTION
Change is a word that bewilders some but welcomed by others who see the
opportunity in it to make things better. Change is that activity without which individuals
or organizations would stagnate and risk their future. Change, innovation, task alignment,
progress, continuous improvement – no matter what name is given to it. Organizations
are changing.
Change is the only constant. Change is all pervasive. Change is happening
continuously and at different speeds at different times in different organizations and in
individuals. Change comes from all directions. Corporate restructuring, new
technologies, improvements in data analytics etc. contribute to the change and result in
improved financial success, customer and employee satisfaction and loyalty &
commitment.
Organizations dream of bettering themselves. To accomplish this they have to
change themselves. To survive in the long run they need to adapt themselves to the
external and internal changes continuously. The question is how the change

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implementation is done because many of the change implementation programs are not
successful and are not pursued till the end.
Any implementation of the change program should be in such a way that in the
post implementation, employees work more committed to the organization, certain of
their own contributions, and exhibit greater readiness to change. [1]

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1.2 Economic & Social forces driving the need for major change in
organizations:
Flow chart 1.1: Economic & Social forces driving the need for major change in
organizations: [2]

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But managing change is not the easiest task at all. The task is difficult because
organizations have to become flexible, responsive and efficient to adapt to the
complex and dynamic nature of the environment. Globally, organizations face the
inevitable prospect of change irrespective of their size. [3]

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Organisations may resist change but that will inevitably invite wider exposure
to risks and losses. [4]
Organisations initiate management system and strategy that maintains their
capability, strength and competitiveness. Organisations should always be open for
changes that they might come across to cope and adapt to the external environment
changes. With changes happening in every field, employees find themselves normally
adapting as change brings many improvements and developments slowly and steadily
in their activities. Change paves way for growth and development, for future
innovations and improves people‟s lives.
But the change process is complicated and involves the consideration of
multifarious dimensions. With many strategies for implementation available the
change manager‟s discretion is very crucial. [5]
Organizations need to understand how and why some organizations succeed
and some fail. They need to study the processes and practices of the organizations
which have successfully implemented change. Change is important to be studied
because changes across the globe and in the society is both pervasive and persistent.
These changes have transformed and are continuing to transform the businesses and
organizational environments around the world7. The winds of change that have swept
organizations globally reached the Indian subcontinent in 1991. Prior to 1991, it
would evoked cynicism and derision at the idea of Indian organizations becoming
world class producers.
Yet this is precisely what most of the Indian organizations hope to become.
But very few Indian organizations are moving in this direction systematically
managing the critical factors that determine the success in the new globally

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competitive environment. Is it possible for other Indian companies to achieve similar
success? This requires change – change in the way we think about the organizations,
products and people.
Why do organisations undergo changes? Can we identify the causative factors
and outcomes of undertaking it? We are in a period of time where organisations are
continuously undergoing major changes. Mergers & Acquisitions, Corporate
Restructuring, Downsizing, Outsourcing etc., have become the routine in an

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organisational life. Stability has become as exception. Managing the required change
has become the need of the hour for any organisation‟s survival.
Research shows that the way the change is implemented influences the results
of changes and to a greater extent and will have negative effects on the work
environment of the employees, health and their well-being if they do not accept the
change and demonstrate readiness to change. [6]
1.3 Factors and reasons behind organizational change
The most influential factor for organisations to bring about change is the
external environment. This external environment instigates reaction for the
organisations to bring about change. Given below are some of the external
environment factors which trigger changes in the organisation:
1.3.1 External factors & reasons [7]
Flow chart 1.2: External factors & reasons

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The other factor triggering change in the organisations is the changes taken up
internally, either proactively or reactively taken up in response to the external
changes. The following are some of the factors that contribute to the internal changes,

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1.3.2 Internal factors & reasons
Flow chart 1.3: Internal Factors and Reasons

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Change happen in the organisations when they act proactively to the expected
risks and difficulty. When an organisation foresees the problems and devises plans to
combat and the impact of those problems, it is basically forecasting the external
factors that would influence its business and brings about changes internally before
the external forces take over. [8]
1.4 Definitions of Change Management
Change management is a structured and strategic approach to initiate and
manage the change process in the organization structure and culture as well as the
individuals/teams behavior and attitude towards the change transition in the field of
the business processes, technology implementation or any other policies of an
enterprise. [9]
The systematic approach and application of knowledge, tools and resources to
deal with change. Change management means defining and adopting corporate
strategies, structures, procedures and technologies to deal with changes in external
conditions and the business environment. [10]

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Change management is the process, tools and techniques to manage the
people-side of business change to achieve the required business outcome and to
realize that business change effectively within the social infrastructure of the
workplace.
The above definition allows to:
 Separate change management from business improvement techniques.

 View change management as an essential competency to overlay and integrate
with these techniques. [11]
Change Management: Activities involved in (1) defining and instilling new
values, attitudes, norms, and behaviors within an organization that support new ways
of doing work and overcome resistance to change; (2) building consensus among
customers and stakeholders on specific changes designed to better meet their needs;
and (3) planning, testing, and implementing all aspects of the transition from one
organizational structure or business process to another. [12]
A systematic approach to dealing with change, both from the perspective of an
organization and on the individual level...proactively addressing adapting to change,
controlling change, and effecting change. [13]
Change management is a systematic approach to dealing with change, both
from the perspective of an organization and on the individual level. [14]

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Change 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. [15]
The systematic management of a new business model integration into an
organization and the ability to adapt this change into the organization so that the
transformation enhances the organizational relationships with all its constituents. [16]
Change Management: the process, tools and techniques to manage the people-
side of change processes, to achieve the required outcomes, and to realize the change
effectively within individuals, teams, and the wider systems.

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Change management is a structured approach to transitioning individuals,
teams, and organizations from a current state to a desired future state. The current
definition of Change Management includes both organizational change management
processes and individual change management models, which together are used to
manage the people side of change. [17]
Minimizing resistance to organizational change is through involvement of key
players and stakeholders. [18]
Change management is a style of management that aims to encourage
organizations and individuals to deal effectively with the changes taking place in their
work. [19]
“Change Management is applying techniques and tools to manage the people-
side of change to achieve the desired results with minimal disruption or negative side
effects.” [20]
Change Management can be defined as the controlled transformation of an
organization from its current operational state to a future operational state. [21]
Change Management is the art and science of knowing how to change the
day-to-day behavior and thinking of people in an organization to achieve desired
results. [22]

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Management of change is perceived differently by different organisations.
Several tools and techniques have been proposed and implemented to bring out
success. New procedures, structures, technologies have been developed not only to
overpower the resistance to change, but also to building up strength and involvement
among the employees in the transformation. With this perspective change
management is now concerned with leadership ability rather than merely being
responsive in handling resistance. [23]
Change management system, which includes changes in their operations,
activities and implementation is necessary as the management encounters problems in
their current management systems or when they deliberately bring in new changes

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both for enhancing and improving the overall performance of the organisation.
Change is caused by both internal or external drivers (1998), innovations can be taken
at different levels in the organisational structure (1997) and these changes can be
universal or limited (1994) in nature.
Management of change is the key activity in ensuring the goals and objectives
of the organization. Employees and the interpersonal communications among them
lead to the successful execution of the change process and sustainable mechanisms
make sure the achievement of the development and improvement of the procedures.
The diagnosis of the areas for improvement is the first step in change process,
followed by the integration of all the possible solutions to remove resistances if any.
1.5 Change Management Overview
People are living in a period of constant change. The idea of change is always
associated with that of progress, which need not necessarily be always. Every "change
for the better" may require change. [24]
Many organizations still have the motto: "if it isn’t broke, don't fix it".
Sometimes changes introduced can become the source for new problems, and change
should never be made unreasonably with no evaluation of the consequences properly.
It can be dangerous to be stagnated with obsolete services and technologies.
The prime objective of Change Management is projected to be in the
evaluation and planning the change process to be implemented in the most efficient
way possible.

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The field of change management is bewildering and more often than not
complex to research and study. It is because change calls for the application of
multiple and diverse ideas from engineering, business and psychology fields. As
change management is being implemented in organizations more frequently for their
survival, the body of knowledge known as “change management” also has grown to
include more skills and knowledge from each of these fields of study.
Change projects more often than not fail from lack of effective change
management than any other single reason. [25]

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This is one of the “most important lessons learned” during their project for
those who have ignored change. Teams that use change management techniques have:
 Reduced turnover and the loss of valued employee

 Accelerated the implementation of the change

 Reduced productivity loss and employee resistance
Organizations lack the understanding of the essence of change management
and how to implement change management tactics. [26]
1.6 History of Change Management:
Change is one of the few constants of recorded history. Often the leaders in
the society, both historical and contemporary, are characterized by their ability to
effectively manage and exploit change situations.
Genghis Khan (1162-1227), of the Mongol tribes tried to unify a distressed
people, but conquered most of china, and other countries by revolutionizing from the
perspective of the conquered the „art‟ of war. For the changing circumstances, he
adopted highly mobile troops, operating with a significant degree of autonomy,
directed by leaders who were made aware of the need to adopt, become flexible and
apply progressive tactics and strategies, to sweep the opposition aside.

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The Venetian traveler Marco polo (1254-1324) „explored the far east in
thirteenth century, developed awareness on the trade and culture and returned to the
west with the „recipe‟ for gun powder.
The two points worth mentioning are firstly, the originators of gunpowder, the
Chinese saw it basically as „harmless‟, and entertaining, concoction that can release
impressive forces if managed properly. However, developments in the west dwelt
upon the destructive properties of the substance. The west especially during the last
quarter of the nineteenth century and the early twentieth century, repackaged gun
powder and exported to the east, which gave them a very good „commercial‟ success.
Secondly, Marco polo‟s endeavors, the travels of Marco polo, served more of
literary product but has failed to „exploit‟ the region‟s resources for many years. The

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change in perspective which has brought a big commercial success could not be
diagnosed by the „managers‟ of the day.
History shows us that mere diagnosing the „trigger‟ for change does not lead
to success. It requires:
 Knowledge of the circumstances surrounding a situation

 Understanding of the interactions

 Awareness of the potential impact of associated variables
In early September 1513 the king of Scotland, James IV, closed his summer
campaigning season against the English with the battle of Flodden. After initial
maneuverings, James organized his foot soldiers armed with six meter pikes (long
spears), into well organized, tightly compacted, units or phalanxes. To the charging
cavalry, or advancing foot soldiers, such phalanxes would appear as impenetrable
forests of spears resembling a hedgehog or porcupine. The Swiss employed the
phalanx in the battle of Nancy in 1477 and triumphed over superior numbers; they
went onto the future refine and tactic through the Italian wars of the late fifteenth
century. James intended to emulate their triumphs, but unfortunately for himself, and
indeed Scotland, he failed to execute his battle plan. The intended tactics were sound
but when enacted on rough and uneven marshland, while advancing downhill, the
Scots‟ phalanxes disintegrated and exposed the pike man to the English troops. When
situations change little knowledge is proved to be dangerous.
The major event that accelerated the rate of change to a greater extent is the
industrial revolution. Other economies have followed it and the rate of change has
never declined after that; The spear and sword gave way to the gun; the scribe to the

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printing press; manpower to the steam engine of James Watt; the horse and cart to the
combustion engine; the type writer to the word processor; and so the list goes on. [27]
For comprehending change management today, one needs to consider two
converging and predominant fields of thought: an engineer's approach to improving
business performance and a psychologist's approach to managing the human-side of
change.

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1.7 Nature of Change Management
Change management is not just an event but is a continuous process, not an event.
Change is to be broken down into discrete process elements.
Nature of Change [28]
Flow chart 1.4: Nature of Change
Where you
want to be
Change
Where you
are today

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Time
Change occurs in two dimensions
 Business

 Individual
Change management would be successful only when both dimensions of change
occur simultaneously.

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Phases of Change Employees [29]
Flow chart 1.5: Phases of Change Employees
Post-
Sustainable
Change
Implementation
Implementation ChangePhases
of
ChangeChange
Project Concept &
ChangeDesign
Business
Change
Need
Aw areness Desire Know ledge Ability Reinforcement

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The Change Road Map – “The road ahead is full of landmines [30]
Flow chart 1.6: The Change Road Map – “The road ahead is full of landmines

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1.8 Theories of Change Management:
There are two types of theories in change management, the individual change
management, and the organizational change management.
These theories are the result of the work of scholars and academics in
universities who are more interested in studying organizational change rather than
changing organizations. In addition there is no single unified and coherent theory of
organizational change. There is instead, a bewildering array of mutually incompatible
perspectives, each claiming to be superior to others in its explanation of
organizational change. Nevertheless, theories are important. Without a theory or a set
of theories, we cannot hope to get an in-depth and comprehensive understanding of a
complex phenomenon such as Individual change and organizational change.
1.8.1 Individual Change Management - Individual change management is the
process in which the company provides the necessary tools, techniques and training to
impart the skills to its employees enabling them to handle their personal transition
through change. The ADKAR Model, according to Hiatt and Creasey can be used for
individual change management. The four objectives of the model are:
Flow chart 1.7: Individual Change Management

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The model developed by ProSci with the co-operation from many world wide
organizations highlights five stages of an individual undergoing through the process
of change:

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Flow chart 1.8: Stages of an individual undergoing through the process of
change
Organizational Development depends on Individual development and
individual development refers to the process of continuous improvement and so is
Organisation development. Organisations must be aware of the present situations and
continuously review them for the betterment of people for their overall development.
(includes Employees, employers, clients, customer and also their families)
Organisations must be bold enough to initiate this process and to make it a part
of the lives all its stakeholders. That is the challenge. It takes more time, as employees
involved in the change process might be having busy schedules - be it home or office
and to take time off for 'CHANGING" may not be considered by them as worthwhile.

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A few of the employees would like to believe that they are already in that state
and hence might not want to review it at all. For them to understand that "Always
reviewing the present and analyzing its effects on the future" is what continuous
improvement is all about. To initiate the process of CHANGE, the manager or the
employee both need to be structured and patient. Expecting miracles over night is a
myth. It‟s a slow and steady process. The point most important is that "Business
Goals" and "individual Goals" need to be kept in focus all the time. No way can
performance be discounted
The successful implementations of the changes in the organisations are due to
the strict reinforcement of changes in the organisation. [31]
1.8.2 Organisational Change Management:- Although we know a great deal about
organizational change our knowledge is highly fragmented. Our current understanding of
how and why organizations change and, more important, how to bring about

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productive change in organizations is scattered across different areas of
management[32]
This theory details a broad procedure for managing the change in the
employee side at an organisational level (1996). Organisational change management
consists of three phases [33]
 Preparing for change,

 Managing change and

 Reinforcing change.
According to Kippen Berger there are two theories of change. They are
 „Theory E’ and

 „Theory O’

A. Theory E: Economic
Flow chart 1.9:Theory E: Economic

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Flow chart 1.10: Theory O: Goal is to Change
B. Theory O: Goal is to change

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1.9 Comparing Theories of change [34]
Flow chart 1.11: Comparing Theories of Change
1.10 The convergence of two fields of thought

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The mechanical system perspective tries to identify observable, measurable
business elements that can be changed or improved. This includes business strategy,
processes, systems, organizational structures and job roles.
Change can be gradual or radical.
process improvement methods such as TQM.
business process reengineering.
Gradual change is seen in continuous
Change can be radical as advocated in
Companies embracing the mechanical approach to change management start
only after they encounter resistance or face serious problems during the
implementation of change. This approach to change management is short term and
lacks a strategic, long term framework for actively managing change. There is a
tendency in this engineer's perspective to isolate the "people" problem by trying to
eliminate it or design the change implementation in such a way that this perceived
obstacle is removed through the design itself.
The psychologist‟s system perspective often focuses on how an individual
employee thinks and behaves in a particular situation. Employees are regularly

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exposed to change, and hence psychologists try to study how these employees would
react to change.
The following table differentiates the two approaches.
1.11 Key differences and contrasts of the two approaches
Flow chart 1.12 Key differences and contrasts of the two approaches

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Extreme application of any of these two approaches, in isolation, will be
unsuccessful. An exclusively “engineering” approach to change management will
have effective solutions which are not properly implemented, while an exclusively
“psychologist” approach may miss out what must be changed for the business to
succeed.
Different authors at different times have presented different ideas on change
management. Daryl Conner in his book Managing at the Speed of Change,
emphasises „understanding the psychology of change and then a structured change
process‟. Ackerman and Anderson present „change management concepts in
combination with business improvement activities‟. John Kotter, presents an 8-step
model for leading change initiatives in his book Leading Change.

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But contributions from both these fields (engineering and psychology) have
produced the convergence of thought which is crucial for the implementation of
change. Change process must be monitored by the organization for its performance,
strategy, processes and systems to diagnose what changes need to be made further for
its success. Rapidly changing external and internal factors make it mandatory for
survival. The organization also has to understand the repercussions of these changes
on its employees given their culture, values, history and capacity for change. It is not
the systems, processes but the front-line employees who ultimately execute the new
day-to-day activities and make the new processes and systems come to life in the
business.
The business improvement methodology must integrate these two disciplines
(engineering & psychological aspects) into a comprehensive model for change.
Finally, one must be sure to identify how the term change management is used so that
the same can be applied to the current body of knowledge.
Today, the term “change management” takes on a variety of meanings. The
most practical and useful definition is:
Change management is a process consisting of tools and techniques which
manage the people-side of business change in achieving the required business
outcome and realizing that business change effectively within the social infrastructure
of the workplace.
Change management is a competency which is to be held inevitably by
organizations today. There is a shift in the core values of employees with regard to
employee empowerment, ownership, and accountability. This has created a work

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force which embraces change so long as they are involved in the change process.
With the introduction of today‟s new business values, employee resistance ought to
be expected. In the absence of a thorough change management process, this resistance
can cripple a business change. [35]
The effective and progressive change management process can help in shaping
the future of the organization which may better serve its survival prospects.

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1.12 Change management can be viewed from two perspectives: –
Change management can be viewed from two different perspectives. First
from those implementing the change and Second from the employees involved in the
change process. The view of change management for the executive demanding the
change varies dramatically from the front line employee who is quite uncertain as to
why a change is ever needed.
When an altogether a new change is planned to be implemented, neither the
executive nor the front-line employee will be knowledgeable about managing change.
While the executives expect the change to happen immediately, the front line
employees are simply doing their job without an understanding of the imminence of
the change. It is the project managers, consultants or members of the project team that
first learn about the requirement for change. They need to realize the two dimensions
of change management: the top-down managers‟ perspective and the bottom- up
employees' perspective.
1.12.1. The Managers’ perspective of change:
Any implementation of the change incurs expenditure and expects results.
Managers are very much aware of the business issues facaing the organization and
they are accountable for the financial performance of the company. Further there is a
time bound result expected by the manager. Change implementation is measured by
the return on investment of the change as compared to other strategic initiatives in the
organization.
Flow chart 1.13: Primary Concerns of Change

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Their primary concerns are:
I Need Results

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Managers would move ahead in the implementation of the change
management if the answers to these questions are favorable.
1.12.2 The Employees’ perspective of change:
When changes are made, most of the employees fall short to the broader
context or knowledge base of why the change is being made. They do not share the
same accountabilities as their managers do. Their question therefore is how the
change will impact them personally. "What will this change mean to me?"
Change consultant or project team who is responsible for designing and
implementing the change has his own agenda acting on behalf of the business leaders
who designed the change. A potentially dangerous mix of different priorities,
knowledge sets and driving forces would emerge. If the change is not managed
properly, these different values and driving forces clash resulting in unfortunate
outcomes for the business as given below.
 Employees resistance to the change

 Valued personal leaving the organization

 Delay in the critical projects

 Upset employees impact the customers indirectly

 Decline in the productivity
Many organizations have learned the art of change management in a hard way
from the projects which have failed. They learned that change management should

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start much before the beginning of the project and must be integrated into all
components of the business. Both perspectives of change management must be
addressed by the managers and the employees.
1.12.3 The Two perspectives
These two perspectives of change management can be referred to as:
 Organizational change management

 Individual change management

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The goal of change management is to implement the new initiatives in the business
quickly to:
 Reduce the impact on productivity

 Avoid loss of valued employees

 Eliminate any adverse impact on customers

 Achieve the desired business outcomes as soon as possible
1.12.3.1 Organizational change management is the management of change from the
perspective of a manager. It is the perspective of “business leadership” from the “top”
looking down into the organization. They focus on the broad change management
practices and skills which help the organization to understand, accept and support the
much required business change. Primarily it is on change management strategies,
communication plans and training programs. The parties to the change include project
team members, employees and key business leaders who have sponsored the change.
Organizational change management imbibes throughout the organization the
required knowledge and skills to implement change through a systemataic
methodology.
1.12.3.2 Individual change management is the management of change from the
perspective of the employees. Employees are the ones who ultimately implement the
change. The emphasis is on the tools and techniques which help an employee
transition through the change process. The primary concerns are the coaching
required to help employees understand their role and the decisions they make in the

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change process through certain tools that they can use to navigate their way through
the change.
1.12.3.3 Critical Elements for managing change:
For organizational change management, the manager will need to build
knowledge and abilities in the following areas: [36]

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Flow Chart 1.14: Critical Elements for managing change
For individual change management, the manager will need to build knowledge in the
following areas: [37]
Flow Chart 1.15: Areas required to be addressed for Individual Change
Management

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1.13 Change ManagementPrinciples [38]
Flow chart 1.16:Change ManagementPrinciples
Adopting a principled approach that displays integrity and engenders openness
and trust will see the change program through the hard times. The five key principles

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of successful change management which if adopted in both spirit and practice will
enhance significantly the organization chances of success.
1.13.1 The five principles are: [39]
Flow chart 1.17: The five principles

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1.14 Scope of Change Management
1.14.1 Components of change management include:
Flow chart 1.18: Components of change management
1.15 Change Management Content and Process

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Organizations are highly specialized systems. They can be classified into
different schemed and groups. They are said to be in the retail, automobile, OEM,
health care, financial services, banking, insurance, brokerage, manufacturing,
distribution, profit-oriented, not for profit, public sector, private sector, regulated,
unregulated etc. Some face stiff competition, some do not. They also could be
foreign-owned, foreign-based, corporations, partnerships, sole proprietorships,
publicly held and some are privately held. Some have been around a long time and
some are newcomers. Some have been built up over the years while others have been
pieced together through mergers and acquisitions. No two are exactly alike.
The change problems found in organizations, have both content and a process
dimension. Sometimes new claims processing system is to be introduced and another
time a total focus on product lines and market segments, reliance on matrix structure,
different values/cultures and languages etc.
The change management process engages the assignment of managing change.
For this, one should have well designed organizational communication system by
means of a principled and skilled approach with an adequate information and common
sense alongwith a control mechanism. From the Management side, it is very important

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to guess the level of effect of change on the employee behavior patterns/motivation,
work processes, technological requirements and finances.
In order to implement the change process according to the vision of the
enterprise, management should plan the change process by reviewing the responses of
the workforce to seek their assistance and access the financial as well as technology
resources. Also management should effectively supervise the usefulness of change
and alter, if and where necessary. Across the company‟s and industries there is no
much difference between change process and change management. This basic
similarity forms a basis for making change management a task, a process, and an area
of professional practice.

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Flow chart 1.19: Change Management Content and Process

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1.15.1 Critical points in the Change Process:
Flow chart 1.20: Critical points in the Change Process

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1. Readiness assessments
Organization's readiness to change can be assessed by a change management
team using assessment tools. Readiness assessment can consider managerial, customs
and history, workforce and sponsor. During the process of change, what problems and
benefits change team is going to face would be provided by above mentioned tools.
The specific tools of readiness assessment are given below:
Flow chart 1.21: Readiness assessments

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2. Communication and communication planning:
Most of the managers think that their job is finished once they communicate
clearly with their workforce. There are many reasons for the workforce not listening
or understanding initially what their managers are saying. In fact, managers should
strive a lot by repeating the same message 6 to 7 times for smooth transfer of message
in to brains of workforce. This is why, individual workforce readiness to listen
depends on many factors. Three components are carefully considered by effective
communicators, the audience, what is said and when it is said.
For example, to manage a change initially we should create awareness about
necessity for change among employees and bring about a sort of desire for change.
Therefore, preliminary discussions are usually intended to specify business reasons
for change and also to explain drawbacks of not changing. In the similar manner at
every step in the process right messages should be designed to communicate at the
right time.
Communication planning, thus, starts by keeping in mind suspicious
examination of who are our target audience, what is the message to be delivered to
them and how much of time to be given for delivering those messages. A
communication plan that represents the needs of front-line employees, supervisors
and executives must be designed by change management team. Based on role of the
employees in execution of the change each employee is having his own requirement
for data.
3. Coaching and manager training for change management

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Managers play a key role in managing the change. Most often, the direct
supervisor has more influence over an employee‟s motivation to change than any
other person at work. But sadly, supervisors as a group can be the most difficult to
convince of the need for change and can be a source of resistance. Change
management team hence has to gain the support of supervisors and to build change
leadership. Individual change management activities should be used to help these
supervisors through the change process.

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Once managers and supervisors are on board, the change management team
must prepare a coaching strategy. Training need to be provided for supervisors on
how to use individual change management tools with their employees.
4. Training and training development
Training is essential for building knowledge about the change and the required
skills. Training needs based on the skills, knowledge and behaviors necessary to
implement the change are to be developed. These training needs shall be the starting
point for the training group/project team to develop training programs.
5. Sponsor activities and sponsor roadmaps
Business leaders and executives play a critical sponsor role in change
management. The change management team must develop a plan for sponsor
activities and help key business leaders carry out these plans. Sponsorship should be
viewed as the most important success factor.
Sponsorship involves active and visible participation by senior business
leaders throughout the process. A change agent's or project leader's role would be
helping senior executives do the right things to sponsor the project.
6. Resistance management

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Resistance from employees and managers is normal. Persistent resistance,
however, can threaten a project. The change management team needs to identify,
understand and manage resistance throughout the organization. Resistance
management is the processes and tools used by managers and executives with the
support of the project team to manage employee resistance.
7. Data collection, feedback analysis and corrective action
Employee involvement is a necessary and integral part of managing change.
Managing change is not a one way street and hence employee involvement can be
assessed from the regular feedback received from employees on the change

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management process. Analysis and corrective action based on this feedback provides
a robust cycle for implementing change.
8. Celebrating and recognizing success
Early successes and long-term wins must be recognized and celebrated.
Individual and group recognition and apt awards and rewards by the change
management team would cement and reinforce the change in the organization.
The final step in the change management process is the after-action review
which involves evaluating successes and failures, and identifying process changes for
the next project. This is part of the ongoing, continuous improvement of change
management for an organization and ultimately leads to change competency. [40]
1.16 Change Approach [41]
Flow chart 1.22:Change Approach Phases
This approach consists of six phases that successful change programs progress through.
Create Harnes Articulate Nominate Grow Entrench
Tension s Goals Roles Capabilit Changes

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1.17Why change management?
Change management is a structured approach to transitioning individuals,
teams, and organizations from a current state to a desired future state. Change
management is the process during which the changes of a system are implemented in
a controlled manner by following a pre-defined framework/model with reasonable
modifications. [42]
Below is a table that outlines some of the most common implications of either
effective or ineffective change management. These come from study participants,
client experiences and input from hundreds of training participants. [43]
Flow chart 1.23: Implications ofeither effective or ineffective change management

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1.17.1 Why change management now?
The traditional management tools and techniques were developed for static,
not a dynamic world. Change management as a discipline has grown tremendously
over the last five years. Given below are some of those reasons. [44]
Flow chart 1.24: Reasons for Change Management

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1.17.2 Why Organisational Change Fails?
"There is nothing more difficult to take in hand, more perilous to conduct, or
more uncertain in its success than to take the lead in the introduction of a new order of
things”. The following are some of the most common reasons identified why
organizational change fails.

Misstarts

A misstart occurs when a change is ill-advised hastily implemented or
attempted without sufficient commitment. This kills leadership credibility.

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
Making change an option

When leadership commits to a change, the message must be that the change is
not an option. But the message that often comes across is "We'd like you to change,
we're asking you to change, we implore you to change, please change..." Whenever
people have the option not to change, they won't.

A focus only on process

Leaders can get so caught up on planning and managing the process that they
don't notice that no tangible results are being achieved. The activity becomes more
important than the results

A focus only on results

This stems from a belief that the end justifies any means. Organizations tend
to fail miserably in this regard: they downplay or ignore the human pain of change. It
is this insensitivity to people‟s feelings that not only prevents the change but destroys
morale and loyalty in the process.

Not involving those expectedto implement the change

A great deal of resentment is aroused when management announces a change
and then mandates the specifics of implementation. Employees need to be involved in
two ways. First, their input and suggestions should be solicited when planning the
change. Secondly, after a change has been committed to, they should be involved in

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determining the means. Leadership needs to communicate, "Here's what must happen.
How do you think it can best be done?"

Delegatedto "outsiders"

Change is an inside job. Although outsiders like consultants might provide
valuable ideas and input, people inside the systems must accept responsibility for the
change. Scape goating and passing the buck are not an option.

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
No change in reward system

If you keep rewarding employees for what they've always done, you'll keep
getting what you've always gotten. Make sure that rewards, recognition and
compensation are adjusted for the desired change.

Leadership doesn't walk the talk

For change to happen, everybody involved must buy-in. Leadership, however,
must take the first steps. Change is aborted whenever leadership doesn't demonstrate
the same commitment they expect from others.

Wrong size

In this instance, the change is too massive to be achievable or too small to be
significant. Like a good goal, a change program should be neither too easy nor too
impossible.

No follow-through

The best planning is worthless if not implemented, monitored and carried out.
Responsibility must be clearly defined for making sure that follow-through is timely
and intense.
1.18 Eight errors common to organizational change Efforts and their
consequences:

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Flow chart 1.25: CommonErrors to organizational change Efforts

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Flow chart 1.26: Consequences of Errors to organisational change efforts
These change errors would not be that costly in a slower moving and less
competitive world. Handling new initiatives quickly is not an essential component of
success in relatively stable or cartel - like environments. But today stability is no
longer the norm. And, over the next few decades the business environment will
become more volatile.
Making any of the eight errors common to transformation efforts can have
serious consequences. In slowing down the new initiatives, creating unnecessary
resistance, frustrating employees endlessly and sometimes completely stifling needed
change, any of these errors could cause an organization to fail to offer the products or
services people want at prices they can afford. Budgets are then squeezed, people are
laid off, and those who remain are put under great stress. The impact on families and
communities can be devastating.

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With awareness and skill, these errors can be avoided or at least greatly
mitigated. The key lies in understanding why organizations resist needed change,
what exactly is the multi stage process that can overcome destructive inertia, and,
most of all, how the leadership that is required to drive that process in a socially
healthy way means more than good management. [45]
1.19 How one can manage change?
Managing change in the organization is pretty much the same way as of
managing anything else of a turbulent, messy, chaotic nature. That is, if one doesn‟t
really manage it, and grapple with it, it‟s more a matter of leadership ability than
management skill.

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Flow chart 1.27: Managing change in the Organization

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
The task of change management is to bring order to a messy situation, not
pretending that it‟s already well organized and disciplined. [46]

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1.20 Eight Factors for Successful Change Management
1.20.1 John P Kotter's eight steps to successful change
Understanding the importance and managing change in an effective and
efficient manner is vital for smooth flow of operations in any form of organization.
Kotter‟s eight steps model is a significant one which explains key principles relating
to people's response and approach to change, in which people see, feel and then
change. [47]
Flow chart 1.28: Kotter’s Eight Steps to Successful Change

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1.20.2 The Eight Stage Process of Creating Major Change [48]
Flow chart 1.29: The Eight Stage Process ofCreating Major Change

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1.21 Management’s role in Organizational change
Management's first responsibility is to perceive trends in the macro and
microenvironment to identify changes and initiate programs. Change impact on
employee behavior patterns, work processes, technological requirements, and
motivation need to be estimated as it plays a very significant role. Management must
assess the employee responses and suitably craft a change program that provides
support to workers as they go through the process of accepting change. Making
required regulations, the change process need to be taken up throughout the
organization with periodic monitoring. [49]
1.22 Change management as a vibrant element in an organization
Change management plays an important role in any organization; however the
task of managing change is not an easy one. Change as a process should be
implemented systematically. Changes in the organization can be initiated within the
organization or externally. For example a product that is popular among the customers
may undergo a change in design based on the triggering factor like a competitive
product from some other manufacturer. This is an example of external factor that
triggers a change within the organization. Organizations response to these changes is
vital for survival and managing these internal and external environmental factors for
change will come under change management.
Reactive and proactive responses to these changes are possible from an
organization when a change management system is followed in an organization.
Modifications to the existing change processes may not be an easy task. Sometimes a
single organization may have diverse SBU‟s and changes in one SBU may affect the
other. There are different types of organizations having their operations spread across

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the globe and considering the varied cultures, implementing a change in such
organizations is a tough task.
Change is easier said than implemented. Stopping a current process is fatal for
that organization hence it has to be implemented in phases with minimal effect on the
existing processes and at the same time implementing these changes should not
consume longer time in the organization causing disaster for the organization. The

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involvement of the staff is considered very important for the change process to be
implemented smoothly.
The change process can be considered as a problem solving situation also. The
change that is taking place could be the result of a problem that has occurred. A
problem is a situation that requires some action to be taken positively to handle that
situation. This positive action is known as problem solving. The change process could
be problem solving for a particular situation. In this process there is a move from one
stage to another so that the problem gets solved. The change process leaves the
current state and moves to the final state through some structured organized process.
Managing the changes in an organization requires a broad set of political,
analytical, people, system, and business skills. Good analytical skills will act as good
change agent to evaluate the financial and political impacts of the changes that can
take place. Adopting a particular process at that instance would fetch immediate
financial effects. The workflow, operations and systems have to be changed and
configured in such a manner to reflect on the financials in a desired manner. Hence
the role of change management is very important in an organization. Organization
gives a reactive or a proactive response to the changes that happen internally or
externally. Knowledge of the change management and its process would help an
organization to be stable. [50]
Flow chart 1.30: The Spiral of Individual Change
The Spiral of Individual Change [51]

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Maintenance:
Sustaining behavior
change until
Action: Making the
integrated into
change
lifestyle
Preparation: Getting
ready to make
Pre-contemplation:
Not aware of need
for change
Pros vs.
Cons
Contemplation:
Thinking about
change

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1.23 Benefits of change management to the organization [52]
Flow chart 1.31:Benefits ofchange management to the organization
Conformance
Doing
We will do it
Absorbing
Perceived Threat
Implications
How it will affect us?
Alignment / Commitment
Performing
Adapting & Integrating
Accepting & Supporting
Opportunities Perceived
Implications
How it will affect us?
Comp rehen sion
Realization
What will happen and why?
Realization
Somethin g is going to chan ge
Somethin g is going to chan ge

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Flow chart 1.32: Benefits of change management

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1.23.1 Benefits of change management for individuals / staff:
Flow chart 1.33: Benefits of change management for individuals / staff

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1.24 The future direction of change management
Unceasing changes in the corporate world for over a decade sensitized the
organizations to think from a customer perspective. The transition of "change
management" from being viewed as a soft and fuzzy waste of time to a critical
success factor has been dramatic. Change management is drawing every body‟s
attention these days due to tremendous changes that the organization experiencing at
all levels. Many programs are initiated to bring awareness at every functional level.
Industry publications are focusing on leading the people side of change. Interest in
change management is at an all-time high.
Change management has certainly created a buzz in businesses and
organizations across the globe. But what direction will change management take in
the future is the question to answer.

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1.25 Top Ten Best Practices for Implementing Organizational Change
How to overcome the barriers of change and make the organizational initiative
successful, has attracted the attention of every senior manager dealing with change
It‟s a million dollar question which has kept the so called big and small organizations
thinking. The following list of ten most influential change drivers will provide a high
level overview of key requirements and suggestions for bringing about effective
organizational change.
These practices are not new to the industry or specially destined for selective
industry where as these practices can be employed by any organization operating at
any level. Internationally markets today are driven by high end competition driving
organizations to foresee change for pioneer advantage. Customers, suppliers, and
partners are key stakeholders in change.
 Identify and agree on key change drivers: Organizational change
should be determined by a key business concern (time to market,
quality, efficiency, etc.) that is substantial, well understood, and
articulated throughout the organization. If people perceive that making
a change simply for change's sake, then it causes more problems that
could be solved. If employees perceive that there's a real problem or
opportunity and understand the negative effects of not taking action,
however, then stakeholders will support the change initiative.

 Create demand for change; don't mandate or force it: If everyone
in organization to adopt a change, organization must create demand for
it at every level. Each person must understand the issues that are
addressed and should have a feeling of ownership for the solutions

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proposed. This "buy in" is required if stakeholders are to drive change
and withstand setbacks and hurdles. When managers give orders
demanding change, they meet with resistance, halfhearted attempts to
adopt the change, false starts, enormous amounts of wasted time and
money, and sagging morale. Change may not benefit all stakeholders
involved -- some may suffer reductions in territory, budgets, or titles --

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it is best to address issues instantly and formulate agreements with
these stakeholders concerning their new roles and responsibilities.
 Exercise consistent leadership and communication practices: Lack
of leadership and vision may cause the change effort to stall and lose
integrity. Changes to plans that are inevitable/critical need to be
informed to the employees. Simultaneously when and why to make
changes also to be communicated. In environments with poor top-
down communication, people consistently look for signals or signs that
would let them know how things are going. Often, they identify the
wrong signals or misinterpret correct ones. For example, if a project
start is delayed, or if management is holding more "closed door"
meetings than usual, then employees may incorrectly assume that
things are not going well for the project.

 It is important for the management team to communicate in all
directions and to behave as a cohesive unit with a consistent message.
If managers appear to be fractured and out of synch, then team
members will quickly become concerned. A consistent regime of
talking openly, sharing information, and helping others understand the
common vision will ensure cohesiveness across the organization. It is
also critical to keep the message simple so that it can remain consistent
over time and not promote confusion or misinterpretation.

 If managers deviate from the path they were on and pursue another,
then they need to re-seek support and buy-in from other parts of the
organization. If they fail to do this, then much time and money will be
wasted trying to get everyone on the same page.


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 Continually update and fine tune the vision and project plan: In
the initial planning phase, creating the vision and project plan helps
managers identify key issues and risks, establish good communication
and strong relationships among stakeholders, and fix a starting point
that everyone can agree on. The vision and project plan are living
artifacts, not static documents. They provide a roadmap for change, but
it is necessary to correct the course and validate the direction

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throughout the implementation. Also, as new employees and
teammates come on board, it is important that they understand and
adopt the vision and plan.
 Achieve incremental, demonstrable success. Nothing can stall an
effort like starting with an overly ambitious plan that tries to address
every issue or project at once. Instead, the best strategy is to strive for
incremental, demonstrable success as one implements the plan in
stages. This will help stabilize the environment and build the
confidence, credibility, and experience needed at each phase to manage
chaos and sustain performance. The same approach works well for
adopting a new process, including the Rational Unified Process. It
must start with a few key areas or workflows and more may be added
as the organization's confidence and capability evolve.

 For the first success, it's strategically important to choose a fairly
complex project that management regards as highly important. In the
course of such a project, one can identify dependencies, risks, and
unforeseen problems up front. Plus, involving top players will not only
increase the project's chances for success but also ensures more
management attention and support.

 Find champions for solutions at all levels: It is always expedient to
identify champions at all levels who support the solutions and can get
the change process moving forward on the right track. These people
can also provide valuable insights on the working environment and
team morale. One should remember that potential champions may take
different forms and hold various titles, and be sure to do a little digging
for the right people.


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 Acquire and develop new employee skill sets. Change creates
demand for modern techniques, skills, and mindsets. As vision and
plan is formulated, it's important to identify what new skills will be
required to facilitate change and operate in the new environment. Very
likely, a training program is needed to keep the skills of current and

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46
future employees up to date. In addition to strong technical skills, top-
level project, business, and personnel management skills are required.
Software organizations often lack depth in these non-technical areas,
but their importance should not be underestimated.
 Establish a collaborative environment. At the inception of any
change initiative, it is essential to establish a collaborative working
environment among all stakeholders and partners. Successful
organizational change requires risk sharing, a collective sense of
ownership, and the ability to leverage the knowledge and skill sets of
people across the organization. For example, Technical change
requires bilateral knowledge transfer in disciplines such as domain
expertise and modern software development techniques. Throughout
the project, teams should strive to maintain a high-trust environment
that fosters collaboration. If they employ on-site contractors to do the
bulk of the process work, they can invite them to collaborate, but
employees must retain ownership of the change process. After all, the
organization's success is on the line, and employees have a far greater
stake in the outcome.

 Collect and use metrics to monitor progress.

Too often, organizations spend an enormous amount of time planning
how they are going to implement change, but too little on
understanding which metrics are critical to monitor a project's
performance. It is important to capture the right metrics (schedule
performance, open/closed discrepancy reports, action items, cash burn
rate, manpower profiles, EVA analysis, etc.) on a regular basis and use
this data to perform course corrections as needed.

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
 An initial metrics assessment can help team members identify which
metrics are of value, learn how they are typically collected and
analyzed, and understand what they reveal about an organization's
current state. Then, this assessment can be used as a benchmark for
moving forward and to get people thinking about how metrics can help
their effort.

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 Overhaul incentives before beginning

Organizations should examine themselves before asking employees to
adopt a change that will require modifications in behavior, skill sets,
and responsibilities. Making changes to incentive programs before the
change process begins will generate the energy and behaviors critical
to success. This includes providing incentives for those who may lose
something in the transition to keep their motivation and self-esteem
intact. Incentives are to be structured around achieving milestones on
or before schedule, a certain level of quality, or other specific goals,
for example.
1.26 Find the Right Pace
How long will change take? Organizations move at different speeds when
adopting new technologies or processes. The pace of change depends on many things,
including how well management internalizes & implements best practices, and create
an environment conducive to continual change. And even within an organization, the
speed of individual projects will be different. Although it's important to move as
quickly as possible to achieve time-to-market goals and competitive advantages, it's
also important to determine the correct pace for each team. Moving too fast would
make the quality suffer; teams will get frustrated and lose confidence. Moving too
slowly the window of opportunity will close; plus, teams may begin to question the
value of change and lose patience.
As with any learning experience, you can expect to encounter setbacks and
hurdles. View these as opportunities to gain knowledge that the organization can build
on, and don't allow your teams to get discouraged and lose focus. Make an effort to

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create an environment that advocates and rewards some level of risk taking. Without
this, people will not be bold enough to propose new ideas and push for innovation.
When change ceases, so does improvement and growth.

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48
1.27 Few more change management implementation techniques:
Flow chart 1.34: Change management implementation techniques
FINDINGS, SUGGESTIONS & CONCLUSIONS:
FINDINGS:
 Change is key and sensitiveelement for any organization. Change is
essential for long term sustainability of organizations in the market.
Changing organizationskeep on exhilarating by satisfying their
customersthrough creative productsand processes. IT organizations
often undergo changebecause of the demand from clientsfor newer
softwareservices, financial muscleof the organization and employee’s
interest towardsnewer things. These make the employeesof IT
organizationsto experiencemajor changes in their job routine.
Employeesof ADP, Cognizant, GE and TCSare experiencing changes
frequently compared to Capgeminiand L&T infotech.
 Employee’sawarenesson change is felt very essential for successful
implementation of change which occursthrough both environmentalas
well as organizationalpressures. Employeesof IT organizationsfelt that

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