OD PROGRAM AC ASE STUDY by vGyR3uG

VIEWS: 59 PAGES: 113

									                            A. INTRODUCTION


SITUATION ANALYSIS & PROBLEM DEFINITION:

Today's organizations operate in a rapidly changing environment & hence the
nature and needs of organizations are also changing dramatically. Consequently,
one of the most important assets for an organization is the ability to manage
change -- and for people to remain healthy and authentic. Correspondingly, the
profession of organization development (OD) has also been changing to meet the
changing needs of organizations. The field of Organization Development uses a
variety of processes, approaches, methods, techniques, applications, etc., i.e. "OD
Interventions" to address organizational issues and goals in order to increase
performance. To effectively adapt and thrive in today’s business world,
organizations need to implement effective OD interventions aimed at improving
performance at organizational, group and individual levels. Thus, it is important
to learn about the current changes & emerging trends in the field of OD
Interventions.

Thus, the problem definition is;

“To study & analyze the emerging trends in Organization Development (OD)
Interventions among the Indian firms”.


LITERATURE REVIEW:

Literature review will include and analyze extensively various sources of
Secondary Research. They are mentioned below:

I. BOOKS & MANUALS:

1. Managing Change In Organizations by Nilanjan Sengupta & Mousumi
Bhattacharya.

II. WEBSITES:

http://alumnus.caltech.edu/~rouda/T3_OD.html

http://eravandi.blogspot.com/2009/12/organization-development.html

http://managementhelp.org/org_chng/od-field/OD_defn.htm

http://www.enotes.com/management-encyclopedia/organizational-
development

http://www.chrmglobal.com/Replies/1339/1/OD-Intervention.html

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http://managementhelp.org/org_chng/org_chng.htm

http://www.citehr.com/16421-what-od-intervention-how-hr-go.html

http://en.wikipedia.org/wiki/Organization_development

http://findarticles.com/p/articles/mi_qa5427/is_200004/ai_n21465508/

http://www.mozenter.org/trends11.pdf

http://findarticles.com/p/articles/mi_qa5427/is_200207/ai_n21313518/pg_4/?
tag=content;col1

http://www.lntecc.com/homepage/profile.htm

http://en.wikipedia.org/wiki/Larsen_&_Toubro

http://www.gridinternational.com/

http://findarticles.com/p/articles/mi_qa5427/is_200010/ai_n21460684/

http://www.marico.com/abt_marico/index.html

http://www.commonfloor.com/orbit-corporation-
ltd/builder/f89cd45f18300a38f31a34bcca24b50d

http://www.crmz.com/Report/ReportPreview.asp?BusinessId=9086796

http://en.wikipedia.org/wiki/International_standard

http://www.iso.org/iso/about/discover-iso_what-standards-do.htm

http://www.praxiom.com/iso-9001.htm

http://www.iso.org/iso/iso_catalogue/catalogue_tc/catalogue_detail.htm?csn
umber=46486

http://www.pjr.com/downloads/Transition-Plan.pdf

http://en.wikipedia.org/wiki/ISO_9000

http://www.isoqar.com/iso9001/qualintro.htm

http://www.isoqar.com/uk/standards/iso14001/ISO-14001-About.aspx

http://www.iso.org/iso/catalogue_detail?csnumber=31807


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http://www.iso14000-iso14001-environmental-management.com/iso14001.htm

http://www.isoqar.com/uk/standards/iso27001/ISO-27001-About.aspx

http://www.27000.org/iso-27001.htm

http://www.isoqar.com/uk/standards/ohsas18001/OHSAS-18001-About.aspx

http://www.ohsas-18001-occupational-health-and-safety.com/
http://www.sa-intl.org/

http://www.mallenbaker.net/csr/CSRfiles/SA8000.html

http://www.bsigroup.com/en/Assessment-and-certification-
services/management-systems/Standards-and-Schemes/SA-8000/

http://www.bsdglobal.com/tools/systems_sa.asp

http://www.cbi.eu/marketinfo/cbi/docs/international_management_system_s
a8000_on_social_accountability

http://en.wikipedia.org/wiki/Tata_Consultancy_Services

http://www.tcs.com/about/Pages/default.aspx

http://sumedhas.org/new3cont/The%20OD%20Journey.pdf

http://www.qaiglobal.com/downloads/HCL_PCMM_case_study.pdf

http://www.bpoindia.org/research/pcmm-model.shtml




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METHODOLOGY OF STUDY (PRIMARY DATA COLLECTION PLAN):

I. Method: Primary data collection method used in the report is a “Survey”.
II. Contact Method: Face to face method of contact is used for the collection of
primary data.
III. Instrument of Data Collection: Questionnaire.
IV. Sample Size: 3 Indian Companies i.e. L & T, Marico Ltd & Orbit Corporation
Ltd.


OBJECTIVES OF RESEARCH:


1. To study & analyze the different OD interventions/techniques adopted by the
Indian companies.

2. To study, analyze & understand the emerging trends in OD interventions with
reference to new emerging interventions & their effectiveness among Indian
companies & reasons for the same.

3. To analyze & understand the types, process & importance of OD interventions
with reference to Indian companies.

4. To get an overall understanding of the field of Organization Development
(OD).




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                            B. DATA ANALYSIS

                            OD: AN OVERVIEW


OD DEFINITION:


Richard Beckhard, an authority on organizational development and change
management, defined organizational development as "an effort, planned,
organization-wide, and managed from the top, to increase organization
effectiveness and health through planned interventions in the organization's
processes, using behavioral-science knowledge".

    Planned: OD takes a long-range approach to improving organizational
     performance and efficiency. It avoids the usual "quick-fix".
    Organization-wide: OD focuses on the total system.
    Managed from the top: To be effective, OD must have the support of top-
     management. They have to model it, not just espouse it. The OD process
     also needs the buy-in and ownership of workers throughout the
     organization.
    Increase organization effectiveness and health: OD is tied to the bottom-
     line. Its goal is to improve the organization, to make it more efficient and
     more competitive by aligning the organization's systems with its people.
    Planned interventions: After proper preparation, OD uses activities called
     interventions to make system wide, permanent changes in the organization.
    Using behavioral-science knowledge: OD is a discipline that combines
     research and experience to understanding people, business systems, and
     their interactions.

 In simple terms OD can be understood as a complex strategy intended to change
the beliefs, attitudes, values, and structure of organizations so that it can better
adapt to new technologies, markets, and challenges. OD is neither “anything
done to better an organization” nor is it “the training function of the
organization”; it is a particular kind of change process designed to bring about a
particular kind of end result. OD can involve interventions in the organization’s
“processes,” using behavioural science knowledge as well as organizational
reflection, system improvement, planning, and self-analysis. OD focuses on the
organization as a network of people and as an entity with its own identity and
personality.




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HISTORY OF ORGANIZATIONAL DEVELOPMENT:

In the late 1960s organizational development was implemented in organizations
via consultants, but was relatively unknown as a theory of practice and had no
common definition among its practitioners. Throughout the 1970s and 1980s
organizational development became a more established field with courses and
programs being offered in business, education, and administration curricula. In
the 1990s and 2000s organizational development continued to grow and evolve
and its influences could be seen in theories and strategies such as total quality
management (TQM), team building, job enrichment, and reengineering.



OBJECTIVES OF OD:

As objectives of organizational development are framed keeping in view specific
situations, they vary from one situation to another. In other words, these
programs are tailored to meet the requirements of a particular situation. But
broadly speaking, all organizational development programs try to achieve the
following objectives:

1. To deepen the sense of organizational purpose so as to make the individuals in
the organization aware of the vision of the organization. Organizational
development helps in making employees align with the vision of the
organization.


2. Encouraging employees to solve problems instead of avoiding them.


3. Strengthening inter-personnel trust, cooperation, and communication for the
successful achievement of organizational goals.


4. Encouraging every individual to participate in the process of planning, thus
making them feel responsible for the implementation of the plan.


5. Creating a work atmosphere in which employees are encouraged to work and
participate enthusiastically.




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    6. Replacing formal lines of authority with personal knowledge and skill based
    authority.

    7. Creating an environment of trust so that employees willingly accept change.


    8. Developing a satisfying work experience.



WHY DO OD?

 Human resources– the employees may be a large fraction of a company’s costs
of doing business. They certainly can make the difference between organizational
success and failure. Companies must better know how to manage them.
 Changing nature of the workplace- the workers today want feedback on their
performance, a sense of accomplishment, feelings of value and worth, and
commitment to social responsibility. They need to be more efficient, to improve
their time management. And, of course, if organizations are to continue doing
more work with less people, they need to make their processes more efficient.
 Global markets- Our environments are changing, and so the organizations must
also change to survive and prosper. Organizations need to be more responsible
and develop closer partnerships with their customers. They must change to
survive, and must attack the problems, not the symptoms, in a systematic,
planned, humane manner.
 Accelerated rate of change- Taking an open-systems approach, organizations
can easily identify the competitions on an international scale for people, capital,
physical resources, and information.



RATIONALE AND IMPLEMENTATION OF OD:

Organizational development takes into consideration how the organization and its
constituents or employees function together. It takes into account such questions
as- Does the organization meet the needs of its employees? Do the employees
work effectively to make the organization a success? How can the symbiotic
relationship between employee satisfaction and organizational success be
optimized? Organizational development places emphasis on the human factors
and data inherent in the organization-employee relationship. Organizational
development strategies can be used to help employees become more committed
and more adaptable, which ultimately improves the organization as a whole.




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The organizational development process is initiated when there is a need, gap, or
dissatisfaction within the organization, either at the upper management level or
within the employee body. Ideally, the process involves the organization in its
entirety, with evidenced support from upper management and engagement in the
effort by all members from each level of the organization.

To launch the process, consultants with experience in organizational development
and change management are often utilized. These consultants may be internal to
the company or external, with the cautionary understanding that internal
consultants might be too entrenched in the existing company environment to
effectively coordinate and enforce the action plans and solutions required for
successful change.

Data analysis through task forces, interviews, and questionnaires can illuminate
likely causes for disconnects throughout an organization. These gaps can then be
analyzed, an action plan formed, and solutions employed. This is by no means a
linear process, nor is it a brief one. Feedback from all constituents should be
elicited throughout the process and used to make adjustments to the action plan as
necessary. Constant monitoring during the entire implementation effort is
important for its success and acceptance.



WHO DOES OD?

To be successful, OD must have the buy-in, ownership, and involvement of all
stakeholders, not just of the employees throughout the organization. OD is usually
facilitated by change agents -- people or teams that have the responsibility for
initiating and managing the change effort. These change agents may be either
employees of the organization (internal consultants) or people from outside the
organization (external consultants).

Effective change requires leadership with knowledge, and experience in change
management. The external consultants can manage to affect the power structure in
a way that most internal change agents cannot. Since experts from outside are less
subject to the politics and motivations found within the organization, they can be
more effective in facilitating significant and meaningful changes.



ROLE OF OD PRACTITIONERS:

OD practitioners intend to improve the effectiveness of people and organizations
by:


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1) Establishing relationships with key personnel in the organization (often called
"entering" and "contracting" with the organization);

2) Researching and evaluating systems in the organization to understand
dysfunctions and/or goals of the systems in the organization ("diagnosing" the
systems in the organization);

3) Identifying approaches (or "interventions") to improve effectiveness of the
organization and its people;

4) Applying approaches to improve effectiveness (methods of "planned change" in
the organization);

5) Evaluating the ongoing effectiveness of the approaches and their results.



WHEN IS AN ORGANIZATION READY FOR OD?

There is a formula which we can use to decide if an organization is ready for
change:

Dissatisfaction x Vision x First Steps > Resistance to Change

This means that three components must all be present to overcome the resistance
to change in an organization: Dissatisfaction with the present situation, a vision of
what is possible in the future, and achievable first steps towards reaching this
vision. If any of the three is zero or near zero, the product will also be zero or near
zero and the resistance to change will dominate.

We use this model as an easy, quick diagnostic aid to decide if change is possible.
OD can bring approaches to the organization that will enable these three
components to surface, so we can begin the process of change.



IMPLEMENTING OD PROGRAMS:

OD efforts basically entail two groups of activities: Action Research and
Interventions.

1. Action Research is a process which serves as a model for most OD
interventions. French and Bell describe Action Research as a "process of
systematically collecting research data about an ongoing system relative to some
objective, goal, or need of that system; feeding these data back into the system;
taking actions by altering selected variables within the system based both on the
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data and on hypotheses; and evaluating the results of actions by collecting more
data." The steps in Action Research are:

a. Entry- This phase consists of marketing, i.e. finding needs for change within an
organization. It is also the time to quickly grasp the nature of the organization,
identify the appropriate decision maker, and build a trusting relationship.

b. Start-up and contracting- In this step, we identify critical success factors and
the real issues, link into the organization's culture and processes, and clarify roles
for the consultant(s) and employees. This is also the time to deal with resistance
within the organization. A formal or informal contract will define the change
process.

c. Assessment and diagnosis- Here we collect data in order to find the
opportunities and problems in the organization. This is also the time for the
consultant to make a diagnosis, in order to recommend appropriate interventions.

d. Feedback- This two-way process serves to tell those what we found out, based
on an analysis of the data. Everyone who contributed information should have an
opportunity to learn about the findings of the assessment process. This provides
an opportunity for the organization's people to become involved in the change
process, to learn about how different parts of the organization affect each other,
and to participate in selecting appropriate change interventions.

e. Action planning- In this step we will distill recommendations from the
assessment and feedback, consider alternative actions and focus our
intervention(s) on activities that have the most leverage to effect positive change in
the organization. An implementation plan will be developed that is based on the
assessment data, is logically organized, results- oriented, measurable and
rewarded. We must plan for a participative decision-making process for the
intervention.

f. Intervention- Now, and only now, do we actually carry out the change process.
It is important to follow the action plan, yet remain flexible enough to modify the
process as the organization changes and as new information emerges.

g. Evaluation- Successful OD must have made meaningful changes in the
performance and efficiency of the people and their organization. We need to have
an evaluation procedure to verify this success, identify needs for new or
continuing OD activities, and improve the OD process itself to help make future
interventions more successful.

h. Adoption- After steps have been made to change the organization and plans
have been formulated, we follow-up by implementing processes to ensure that this
remains an ongoing activity within the organization, that commitments for action
have been obtained, and that they will be carried out.


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i. Separation- We must recognize when it is more productive for the client and
consultant to undertake other activities, and when continued consultation is
counterproductive. We also should plan for future contacts, to monitor the success
of this change and possibly to plan for future change activities.


2. OD interventions are plans or programs comprised of specific activities
designed to effect change in some facet of an organization. Numerous
interventions have been developed over the years to address different problems or
create various results. However, they all are geared toward the goal of improving
the entire organization through change. In general, organizations that wish to
achieve a high degree of organizational change will employ a full range of
interventions, including those designed to transform individual and group
behavior and attitudes. Entities attempting smaller changes will stop short of those
goals, applying interventions targeted primarily toward operating policies,
management structures, worker skills, and personnel policies. Typically,
organization development programs will simultaneously integrate more than one
of these interventions.

For successful OD to take place, all of these steps must be followed. It works best if
they are taken in the order described. The consultants must be flexible and be
ready to change their strategy when necessary. Often they will have to move back
and repeat previous steps in light of new information, new influences, or because
of the changes that have already been made.




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                 OD INTERVENTIONS: AN OVERVIEW



OD INTERVENTIONS DEFINITION:

"OD interventions are sets of structured activities in which selected organizational
units (target groups or individuals) engage in a task or sequence of tasks with
the goals of organizational improvement and individual development" .

Interventions constitute the ACTION component of the OD cycle.



POSSIBLE RESULTS OF OD INTERVENTIONS:


    Feedback.
    Awareness of changing socio-cultural norms or dysfunctional current norms.
    Increased interaction and communication.
    Confrontation (surfacing and examining differences).
    Education (knowledge and concepts, beliefs and attitudes, skills).
    Participation (in problem solving, goal setting, idea generation).
    Increased accountability (through clarifying responsibility and monitoring
     performance).
    Increased energy and optimism("the future is desirable, worthwhile and
     attainable").




CONDITIONS FOR OD INTERVENTIONS:

OD programs usually share several basic characteristics. For instance, they are
considered long-term efforts of at least one to three years in most cases. In
addition, OD stresses collaborative management, whereby managers and
employees at different levels of the hierarchy cooperate to solve problems. OD
also recognizes that every organization is unique and that the same solutions
cannot necessarily be applied at different companies—this assumption is
reflected in an OD focus on research and feedback. Another common trait of OD
programs is an emphasis on the value of teamwork and small groups.

In fact, most OD systems use small teams—or even individuals—as a vehicle to
implement broad organizational changes.
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Several conditions that must be present if an OD intervention could have any
meaningful chance of bringing about the desired change are:

      Ownership and all involved personnel needed to be genuinely and visibly
       committed to the effort.
      People involved in OD have to be informed in advance of the nature of
       the intervention and the nature of their involvement in it.
      The OD effort has to be connected to other parts of the organization; this
       is especially true of such areas as the evaluation and reward systems.
      The effort has to be directed by appropriate managers and guided by
       change agents (which, if used, must be competent).
      The intervention should be based on accurate diagnosis of organizational
       conditions.
      Owners and managers should show their commitment to OD at all stages
       of the effort, including the diagnosis, implementation, and evaluation.
      Evaluation is key to success, and should consist of more than asking
       people how they felt about the effort.
      Owners and managers need to show employees how the OD effort relates
       to the organization's goals and overriding mission.



CRITERIA FOR EFFECTIVE INTERVENTIONS:

In OD three major criteria define the effectiveness of an intervention:

1. The extent to which the Intervention fits the needs of the organization:

This criterion concerns the extent to which the intervention is relevant to the
organization and its members. Effective interventions are based on valid
information about the organization's functioning; they provide organization
members with opportunities to make free and informed choices; and they gain
members' internal commitment to those choices.

Valid information is the result of an accurate diagnosis of the organization's
functioning. It must reflect fairly what organization members perceive and feel
about their primary concerns and issues. Free and informed choice suggests that
members are actively involved in making decisions about changes that will affect
them. It also means that interventions will not be imposed on them. Internal
commitment means that organization members accept ownership of the
intervention and take responsibility for implementing it. If interventions are to
result in meaningful changes, management, staff, and other relevant members
must be committed to carrying them out.



2. The degree to which it is based on causal knowledge of intended
outcomes:

Because interventions are intended to produce specific results, they must be
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based on valid knowledge that those outcomes actually can be produced.
Otherwise, there is no scientific basis for designing an effective OD
intervention. Unlike other exact sciences (like medicine or engineering)
knowledge of the effect of OD interventions is in a rudimentary stage of
development. Moreover, few attempts have been made to examine the
comparative effects of different OD techniques. All of these factors make it
difficult to know whether one method is more effective than another.

Despite these difficulties, attempts are being made to evaluate different OD
intervention methods, so that we can gain the ability to predict outcomes of
various interventions and thus be able to use the most appropriate interventions
for specific problems.


3. The extent to which the OD intervention transfers change-management
competence to organization members:

OD interventions can be said to be effective, only if they make the organization
members competent to initiate, implement and monitor change on their own.
The values underlying OD suggest that organization members should be better
able to carry out planned change activities on their own, following the
intervention. They should gain knowledge and skill in managing change from
active participation in designing and implementing the intervention. Competence
in change management is essential in today's environment, where technological,
social, economic, and political changes are rapid and persistent.



FACTORS THAT IMPACT THE SUCCESS OF OD INTERVENTIONS:


I. Factors relating to Change Situation: These relate to the environment of
the organization and include the physical and human environment.

1. Readiness for Change: Intervention success depends heavily on the
organization being ready for planned change. Indicators for readiness for change
include sensitivity to pressures for change (higher sensitivity means greater
readiness to change); dissatisfaction with the status quo; availability of resources
to support change; and, commitment of significant management time.

2. Capability to Change: Managing planned change requires particular
knowledge and skills including the ability to motivate change, to lead change, to
develop political support, to manage transition, and to sustain momentum. If
organization members do not have these capabilities, then a preliminary training
intervention may be needed to prepare the members for the major change.

3. Cultural Context: The national culture within which an organization
is embedded can exert a powerful influence on members' reactions to
change, and so intervention design must account for the cultural values
and assumptions held by organization members. This makes it important
for OD interventions to be adapted to different cultures.
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4. Capabilities of the Change Agent (OD Consultant): The success of OD
interventions depend to a great extent on the expertise, experience and talents of
the consultant. No consultant should undertake to implement interventions that
are beyond their level of competence or their area of expertise. The ethical
guidelines under which OD practitioners operate require full disclosure of the
applicability of their knowledge and expertise to the client's situation.

II. Factors Related to the Target of Change: These relate to the specific
targets at which OD interventions are targeted. The targets of change can be
different issues of the organization and at different levels.

A. Organizational Issues

1. Strategic Issues: Strategic issues refer to major decisions of organizations
such as what products or services to offer, which markets to serve, mergers,
acquisitions, expansions, etc. OD Interventions aimed at these strategic issues are
called strategic interventions and are among the most recent OD interventions
and include, integrated strategic change, mergers and acquisitions, trans-
organizational development, organizational learning, etc.

2. Technology and Structure Issues: These refer to issues relating to how
organizations divide their work amongst departments and how they coordinate
between departments. They also must make decisions about how to deliver
products or services and how to link people to tasks. OD interventions aimed at
these issues are called techno-structural interventions and include OD activities
relating to organizational design, employee involvement and work design.

3. Human Resource Issues: These issues are concerned with attracting
competent people to the organization, setting goals for them, appraising and
rewarding their performance, and ensuring that they develop their careers and
manage stress. OD techniques aimed at these issues are called human resource
management interventions.


4. Human Process Issues: These issues have to do with social processes
occurring among organization members, such as communication, decision-
making, leadership, and group dynamics. OD methods focusing on these kinds
of issues are called human process interventions; included among them are some
of the most common OD techniques, such as conflict resolution and team
building.


B. Organizational Levels

OD interventions are aimed at different levels of the organization: individual,
group, organization and trans-organization (for example different offices of
the organization around the globe; or between organization and its suppliers,
customers, etc.)

OD interventions are usually aimed at specific levels, and must address cross-
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level effects and perhaps integrate interventions affecting different levels to
achieve overall success.



 HOW TO SEQUENCE INTERVENTIONS:


 1. Maximize diagnostic data: Interventions that provide information that will
 be needed in subsequent interventions needs to come first.


 2. Maximize effectiveness: Interventions should be sequenced in such a way
 that early interventions enhance the effectiveness of earlier interventions.


 3. Maximize effectiveness: The sequencing of interventions should be such
 that organizational resources such as time, energy, money are conserved.


 4. Maximize speed: Interventions should be sequenced in such a way that the
 speed with which organizational improvement is attained is maximized.


 5. Maximize relevance: Interventions that will have impact on the
 organization’s performance or task come before interventions that will have an
 impact on the individuals or culture.


 6. Minimize organizational and psychological strain: Create a sequence of
 interventions that are least likely to cause strain or psychological damage.




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THE STAGES IN OD INTERVENTION:

1. Initial Diagnostic Meeting.
2. Detail Problem Design / Research Design (This is usually the Action
Research).
 3. Hypothesis Formulation.
 4. Data Gathering.
 5. Data Analysis.
 6. Result and Recommendation Presenting.
 7. Action Planning.
 8. Follow Up and Adjustments.



SOME OF THE TOOLS EFFECTIVELY USED FOR OD INTERVENTIONS
ARE:

1. FIRO Element B:


Theory & Theorist Will Schutz, a pioneer in the human and organization
development movement in the 1950s and 60s, asserts that discovering the degree
to which you want and exhibit three critical elements of human behavior -
Inclusion, Control, and Openness - will give you great insight into your behavior
with individuals and groups. The most refined and powerful of the series of
FIRO tools on human behavior, the Element B yields useful insights into self-
leadership development, team building, and human interaction.



Applications of FIRO Element B:


a. Allows teams and work groups to predict and diagnose issues causing them to
be ineffective.



b. Provides clues to individuals who are not working effectively together
about what is wrong and how to open up dialogue between them.


c. Helps leaders understand their relationships with individuals and teams, in
particular what messages they are sending to others and why others react as they
do.




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2. Thomas-Kilmann Conflict Mode Instrument:


This tool is rooted in early work of Kenneth Thomas and Blake and Mouton's
Managerial Grid dating back to 1964. It asserts that all behavior in a conflict
situation is comprised of two independent variables: assertiveness and
cooperativeness. Knowing how assertive and cooperative any person or group is
during a conflict will yield both a conflict style and a road map for the conflict's
solution. The model and instrument were created by Kenneth W. Thomas and
Ralph H. Kilmann.


Applications of Thomas-Kilmann Tool:


a. It helps people or groups in conflict to understand how different styles may be
affecting the way the conflict is handled.

b. For teams, it provides a framework to analyze conflict, whether they have
issues at the moment or whether they just want to understand differing
approaches before conflict arises.

c. For managers, it creates a way to frame conflict and identify road maps for
solving it.

d. It gives leaders a sense of what conflict management style they use, and how to
manage conflict and differing styles they may encounter in others.




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TYPES OF OD INTERVENTIONS:



To effectively adapt and thrive in today’s business world, organizations need
to implement effective OD interventions aimed at improving performance at
organizational, group and individual levels. OD interventions involve respect
for people, a climate of trust and support, shared power, open confrontation
of issues, and the active participation of stakeholders. OD interventions are
broader in scope, usually affecting the whole organization (socio-technical
systems). OD interventions are sponsored by the CEO and supported and
“owned” by staff at the different levels of the organization.


OD professionals must have a solid understanding of the different OD
interventions to choose the most appropriate, or “mix and match” them based
on the expected results and a solid analysis of the organization and its
environment.


Major OD Interventions:


OD interventions aim at improving organizational performance and
employees’ well being. According to Robbins, OD integrates a collection of
planned change interventions that relies on humanistic and democratic
values, aimed at improving organizational effectiveness, and employees’ well
being. Kormanik proposes a classification of OD interventions in 5 groups:
large scale, strategic, technostructural, human process & human resource
management interventions.


1. Large-scale interventions:


Large scale interventions typically involve a full-size group of stakeholders,
working toward the definition of a future state. These interventions start from
top levels of the organization, to analyze, plan, and define the intervention’s
outcomes, then, people are involved in the solution, creating with this a
shared commitment, and a “contagious of effect” effort, which will support
the implementation of defined actions in the long term. Some examples

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include the following: appreciative inquiry summit, future search, open space
and real time strategic change. Large scale interventions are highly structured;
each activity is carefully planned beforehand –this is particularly important
since the whole system participates simultaneously, in the same room, at the
same time. Cummings and Worley (2001) describe the three step process
involved in any large scale intervention: 1) the preparation of the large group
meeting, 2) conducting the meeting, and 3) following on meeting outcomes.
Large-scale interventions are quicker, build organizational confidence, give
immediate and broad based information, promote a total organization
mindset, inspire action, and sustained commitment.



2. Strategic interventions:


Strategic interventions contribute to align the organization with its
environment. Cummings and Worley state that these interventions
“link the internal functioning of the organization to the larger
environment; transforming the organization to keep pace with
changing conditions”. Strategic interventions help organizations to
gain a better understanding of their current state, and their
environment, that allow them to better target strategies for competing
or collaborating with other organizations. Kormanik includes under the
umbrella of strategic interventions, the following: mission / vision /
purpose, strategic planning and goal setting, visioning / scenario
planning, benchmarking, SWOT, communication audit / strateg y,
values clarification and commitment, climate survey, and culture
change, business planning, Open Systems Planning, Organizational
Alliances, Organizational Transformation.


3. Technostructural interventions:


Technostructural interventions focus on improving the organizational
effectiveness and human development by focusing on technology and
structure. These interventions are rooted in the fields of engineering,
sociology, and psychology, combined with socio-technical systems and
job analysis and design. These types of interventions rely on a deficit
based approach; the idea is to find problems to solve. According to
Cummings and Worley, technostructural approaches focus on
improving an organization’s technology (for example, task methods
and job design) and structure (for example division o f labor and
hierarchy)”. Kormanik includes as technostructural interventions the
                                                                        20
following: organizational structure, organization systems, business
process redesign, space and physical settings, socio-technical systems,
change management, job design / enrichment, competency -based
management, knowledge management, organizational learning,
Balanced Scorecard, Business process re engineering, downsizing &
outsourcing, ISO 9000, MBO, Organizing staff, Organizing tasks, Jobs &
roles, Six sigma & TQM.




4. Human Process Interventions (Group and Individual Human Relations):

With today's strong emphasis on humanistic values, the following
interventions are getting a great deal of attention and emphasis during
efforts for change. They focus on helping members of the organization
to enhance themselves, each other and the ways in which they work
together in order to enhance their overall organization. Although the
types of interventions selected for a project depend on a variety of
considerations and the interventions in a project often are highly
integrated with each other, the following human process interv entions
might be particularly helpful during change projects in organizations
where there is some combination of the following: many new
employees, different cultures working together, many complaints
among organizational members, many conflicts, low morale, high
turnover, ineffective teams, etc. These interventions are as follows;

Guiding Individuals

-Coaching
-Counseling
-Delegating
-Leading
-Morale Boosting
-Mentoring
-Motivating

Group-Based

-Conflict Management
-Dialoguing
-Group Facilitation
-Group Learning
-Self-Directed Work Teams
-Large-Scale Interventions
-Team Building
-Virtual Teams



                                                                      21
5. Human Resource Management Interventions (Individual and Group
Performance Management):

The following activities aim to enhance overall organizational
performance by improving the performance of individuals and groups
within the organization. Performance is in regard to setting goals,
monitoring progress to the goals, sharing feedback, reinforcing
activities to achieve goals and dissuading those that don't. Performance
also is in regard to developing employees, including by enhancing their
overall sense of well-being. Although the types of interventions
selected for a project depend on a variety of considerations and the
interventions in a project often are highly integrated, the following
human resource interventions might be particularly helpful in th e
following kinds of situations: new organizational goals have been
established, a major new system or technology must be implemented in
a timely fashion, many new employees, plans don't seem to get
implemented, productivity is low, ineffective teams, etc. These
interventions include following:

Employee Performance Management

-Establishing Performance Goals
-Performance Plans
-Observation and Feedback
-Evaluating Performance
-Rewarding Performance
-Recognizing Performance Problems ("Performance Gaps")
-Performance Improvement / Development Plans
-Staffing
-Firing Employees

Employee Development

-Career Development
-Leadership Development Planning
-Management Development Planning
-Personal Development
-Personal Productivity
-Personal Wellness
-Supervisory Development Planning
-Training and Development

Employee Wellness Programs

-Diversity Management
-Drugs in the Workplace
-Employee Assistance Programs

                                                                      22
-Ergonomics: Safe Facilities in the Workplace
-HIV/AIDS workshops in the Workplace
-Personal Wellness
-Preventing Violence in the Workplace
-Safety in the Workplace
-Spirituality workshops in the Workplace




                                                23
OVERVIEW OF OD INTERVENTIONS:

The diagram below summarizes the more popular OD interventions
classified under different categories. The X mark indicates the target/s
at which the interventions are aimed.
                Types of Interventions and Organizational Levels
                      Primary Organizational Level (s) Affected

INTERVENTIONS              INDIVIDUAL         GROUP                ORGANIZATION


Human Process
T - Groups                        X                    X

Process Consultation              X                    X

Third Party Intervention          X                    X

Team Building                     X                    X

Organization                                           X                 X
Confrontation Meeting

Intergroup Relations                                   X                 X

Large-group                                                               X
Interventions

Grid Organization                                      X                 X
Development


Techno Structural
Structural Design                                                        X

Downsizing                                                               X

Reengineering                                          X                 X

Parallel Structures                                    X                 X

High-involvement                  X                    X                 X
Organizations

Total Quality                                          X                 X
Management

Work Design                       X                    X


HR Management
Goal Setting                      X                    X

Performance Appraisal             X                    X


                                                                              24
Reward Systems           X   X   X

Career                   X
Planning/Development

Managing Work Force      X   X
Diversity

Employee Wellness        X

Strategic
Integrated Strategic             X
Change

Trans-organization               X
Development

Mergers & Acquisitions           X
Integration

Culture Change                   X

Self-Designing               X   X
Organizations

Organization Learning        X   X
and Knowledge
Management




                                     25
OD INTERVENTIONS COMMONLY USED IN ORGANIZATIONS:

These are some of interventions that OD practitioners choose from in partnering
with organizational leaders to create "planned change."

The following are a few of most common OD Interventions, that most of the
companies practice:

1. Applying criteria to goals.
2. Establishing inter-unit task forces.
3. Experimentation with alternative arrangements.
4. Identifying “Key Communicators”.
5. Identifying “Fireable Offenses”.
6. In-Visioning.
7. Team Building.
8. Inter-group Problem Solving.
9. Management / Leadership Training.
10. Setting up measurements.
11. Studies of structural causes.
12. Survey-feedback.
13. "Walk-the-talk" assessment.


A brief on each of the above, with examples is as follows:

1. APPLYING CRITERIA TO GOALS:

Here the leadership establishes objective criteria for the outputs of the
organization's goal-setting processes. Then they hold people accountable not
only for stating goals against those criteria but also for producing the desired
results.

Example:
Organizations are implementing the concept of Balanced Scorecard, X-Matrix
etc., to capture the goals of the employees, which in turn is helpful in their
assessment and mid-term correction of their performance.

2. ESTABLISHING INTER-UNIT TASK FORCES:

These groups can cross both functional parts of the organization (the "silos") as
well as employee levels. They are ideally accountable to one person and are
appropriately rewarded for completing their assigned task effectively. Then they
disband.

Example:
Organizations have introduced various schemes for rewarding their employees

                                                                                   26
for their performance, like:
- Introducing the concept of Variable pay in as a part of CTC.
- Spot Recognition Award.
- Project bonus, performance bonus etc.,

3. EXPERIMENTATION WITH ALTERNATIVE ARRANGEMENTS :

Today organizations are subject to "management by best-seller." The goal in these
interventions is to create what is being called a "learning organization," one that
performs experiments on organizational structure and processes, analyzes the
results, and builds on them.

Example:
Organizations today are targeting at streamlining the process of Learning and
Development and encouraging the culture of Learning in the organizations.
- Targeting achieving mandatory man-days of training for their employees.
- Introducing the Competency based practices.

4. IDENTIFYING "KEY COMMUNICATORS”:

This is to carefully determine who seems to be "in the know" within the
organization. These people often do not know that they are, in fact, key
communicators. This collection of individuals is then fed honest information
during critical times, one-on-one and confidentially.

Example:
-Defining the process of Organizational Communication policy.
- Introducing Top – down and Bottom – up Communication approach.
- Introducing Employee Forums and Suggestion Box options for employee
interaction.
- Identifying Critical employees in the organization and making them the Brand
Ambassadors of their company.

5. IDENTIFYING "FIREABLE OFFENSES”:

This intervention deepens the understanding of and commitment to the stated
values of the organization. This facilitates the work of the Top Management to
answer the critical question, "If we're serious about these values, then what might
an employee do that would be so affrontive to them that he/she would be fired?”

Example:
- Publishing and Instilling Values and Beliefs among all employees.
- Introducing Policies like Whistle Blowing, Sexual Harassment etc.

6. IN-VISIONING :

This is actually a set of interventions that help to "acculturate" everyone in the
                                                                                     27
organization into an agreed-upon vision, mission, purpose, and values. The
interventions might include training, goal setting, organizational survey-
feedback, communications planning, etc.

7. TEAM BUILDING:

This intervention can take many forms.

Example:
The most common is interviews and other pre-work, followed by a one- to three-
day offsite session. During the meeting the group diagnoses its function as a unit
and plans improvements in its operating procedures.

8. INTER-GROUP PROBLEM SOLVING:

This intervention usually involves working with the two groups separately
before bringing them together. They establish common goals and negotiate
changes in how the groups interface.

Example:
This is practiced in Product Development Companies and most of the IT and
ITES Companies.
- Focused group discussion are encouraged by the management, for generating
better ideas and concepts

9. MANAGEMENT/LEADERSHIP TRAINING:

Many OD professionals come from a training background. They understand that
organizations cannot succeed long term without well-trained leaders. The OD
contribution there can be to ensure that the development curriculum emphasizes
practical, current situations that need attention within the organization and to
monitor the degree to which training delivery is sufficiently participative as to
promise adequate transfer of learnings to the job.

Example:
Most of the organizations today are focusing at Leadership Management for their
employees. Earlier, this was targeted to the Top Management alone, but now,
organizations are seeing its relevance to inculcate the leadership skills in their
middle management and junior management as well.
- Business Organization Retreat (BOD) is being the most common practice, is a
part of this initiative.

10. SETTING UP MEASUREMENT SYSTEMS:

The total-quality movement emphasizes that all work is a part of a process and
that measurement is essential for process improvement. The OD professional is
equipped with tools and techniques to assist leaders and others to create
                                                                                 28
measurement methods and systems to monitor key success indicators.

Example:
- The concepts like Six Sigma, TQM etc act as Measurements tools for the process
followed in the organization.


11. STUDIES OF STRUCTURAL CAUSES:

"Root-cause analysis" is a time-honored quality-improvement tool, and OD
practitioners often use it to assist organizational clients to learn how to get down
to the basis causes of problems.

12. SURVEY-FEEDBACK:

This technology is probably the most powerful way that OD professionals
involve very large numbers of people in diagnosing situations that need attention
within the organization and to plan and implement improvements. The general
method requires developing reliable, valid questionnaires, collecting data from
all personnel, analyzing it for trends, and feeding the results back to everyone for
action planning.

13. "WALK-THE-TALK” ASSESSMENT:

Most organizations have at least some leaders who "say one thing and do
another." This intervention, which can be highly threatening, concentrates on
measuring the extent to which the people within the organization are behaving
with integrity.




                                                                                  29
OD PROGRAM- A CASE STUDY:

The Cambridge Clinic found itself having difficulty with its internal working
relationships. The medical director, concerned with the effect these problems
could have on patient care, contacted an organizational consultant at a local
university and asked him for help. A preliminary discussion among the director,
the clinic administrator, and the consultant seemed to point to problems in
leadership, conflict resolution, and decision processes. The consultant suggested
that data be gathered so that a working diagnosis could be made. The clinic
officials agreed, and tentative working arrangements were concluded.

The consultant held a series of interviews involving all members of the clinic
staff, the medical director, and the administrator. Then the consultant
"thematized", or summarized, the interview data to identify specific problem
areas. At the beginning of a workshop about a week later, the consultant fed back
to the clinic staff the data he had collected.

The staff arranged the problems in the following priorities:

1. Role conflicts between certain members of the medical staff were creating
   tensions that interfered with the necessity for cooperation in handling
   patients.
2. The leadership style of the medical director resulted in his putting off
   decisions on important operating matters. This led to confusion and
   sometimes to inaction on the part of the medical and administrative staffs.
3. Communication between the administrative, medical, and outreach (social
   worker) staffs on mutual problems tended to be avoided. Open conflicts over
   policies and procedures were thus held in check, but suppressed feelings
   clearly had a negative influence on interpersonal and intergroup behavior.

Through the use of role analysis and other techniques suggested by the
consultant, the clinic staff and the medical director were able to explore the role
conflict and leadership problems and to devise effective ways of coping with
them. Exercises designed to improve communication skills and a workshop
session on dealing with conflict led to progress in developing more openness and
trust throughout the clinic. An important result of this first workshop was the
creation of an action plan that set forth specific steps to be applied to clinic
problems by clinic personnel during the ensuing period. The consultant agreed to
monitor these efforts and to assist in any way he could. Additional discussions
and team development sessions were held with the director and the medical and
administrative staffs.

A second workshop attended by the entire clinic staff took place about two
months after the first. At the second workshop, the clinic staff continued to work
together on the problems of dealing with conflict and interpersonal
communication. During the last half-day of the meeting, the staff developed a


                                                                                30
revised action plan covering improvement activities to be undertaken in the
following weeks and months to improve the working relationships of the clinic.

A notable additional benefit of this OD program was that the clinic staff learned
new ways of monitoring the clinic's performance as an organization and of
coping with some of its other problems. Six months later, when the consultant
did a follow-up check on the organization, the staff confirmed that interpersonal
problems were now under better control and that some of the techniques learned
at the two workshops associated with the OD programs were still being used.




                                                                               31
                    OD: AN INDIAN PERSPECTIVE



HISTORY & BACKGROUND OF OD IN INDIA:

In today's highly turbulent business environment, 'change' has become an
inevitable part of life. Organizations that do not change when needed or are not
sensitive to the need for change do not survive long. The revolution in the form
of IT is reshaping the core competencies needed in a knowledge environment.
Organizations, in order to be successful, need to place a high priority on
proactivity and systematic understanding of organizational issues and on
responding to current and future external customer needs. Workforce mobility
and diversity are creating new employee needs along with new expectations
about the work culture, and these needs, too, have to be systematically
understood and responded to. HR leaders are challenged to become effective
strategic partners in the creation of world class learning culture.

Indian organizations are no exception to these compulsions. Today, they face
numerous challenges and complexities, operating, as they do, in a highly volatile
political and economic environment. For decades, the Indian mindset that has
governed Indian organizations is less systems-driven and more people and
relationship-oriented. With the opening up of the economy, standing up to global
competition with borrowed technologies & insecure and relationship-driven
employees, organizations need to bring in change rapidly; and hence the acute
need for O.D. in Indian organizations.



EVOLUTION OF O.D. IN INDIA:

In India, O.D. and planned change started in the early 1960s. A group of Indian
professionals trained at the National Training Laboratories (NTL) at Bethel,
Maine, USA, brought out a good deal of O.D. technology in India. Grid programs
were initiated and widely used in the Small Industries Extension Training (SIET)
Institute, Hyderabad, State Bank of India and in the Indian Institute of
Management (UM) programs in the mid 1960s. Unfortunately these remained
isolated efforts and did not take O.D. to its logical conclusions.

In the mid-1970s, O.D. was first introduced in India in Larsen and Toubro as a
formal and structured part of the HRD department. It was expected that the
change process would get institutionalized and more O.D. specialists would be
developed. Unfortunately, this did not happen as the corporate sector in the
country has a very protected and secure environment and there were very few
compulsions to change. Hence O.D. remained mostly in academic institutions -
the forte of a few specialists and largely limited to T-group training and other
training based interventions. That it has a slow growth is indicated by the fact
                                                                                   32
that even after 25 years of existence, the Indian Society for Applied Behavioral
Science (ISABS), an associate of NTL, produced less than 100 process specialists
in the vast country.

There have been several efforts to apply O.D. approach and associated
techniques in India but it has not created the desired impact. According to
Srinivas, one plausible explanation for this is that O.D. as it has emerged to date
is culture specific, that it cannot be simply applied to locations outside the US.
The issue of non-transferability of OD technology to cultures such as India has
arisen because of the fear or distrust of its techniques of confrontation. The
general practitioner or the change agent style of informality and an attitude of
openness is also not suited to the Indian context. However, a deeper examination
of values embedded in Indian religion and psycho-philosophy suggests that the
cultural values are indeed largely supportive of organizational renewal and
change. The rich cultural heritage also contains a paradigm of change, based on
which new approaches and designs of O.D. interventions may be possible. And
such designs are likely to be accepted more readily in the country.

The scenario has changed thanks to an increasing number of applied behavioral
scientists and T-group trainers, the HRD movement and establishment of HRD
departments, contributions of multinationals in India and the influence of
Western education. Professional bodies such as ISABS (Indian Society for
Applied Behavioral Sciences), Indian Society for Individual and Social
Development (ISISD), Indian Society for Training & Development (ISTD), and
the HRD Network, and academic institutions such as the IIMs (Indian Institute of
Management) have further facilitated this. In the post liberalization period, every
one has been forced to seek change. As a result, the application of O.D.
technology has increased.

Among the available O.D. interventions and tools, the most prevalent ones and
those that have met with reasonable success in effecting the desired change are:

* Training

* Action research

* Survey feedback

* HRD and HRD Audit

* Role focused interventions

* Person focused interventions




                                                                                   33
A few of the professional bodies In India in the field of OD are: ISABS (Indian
Society for Applied Behavioural Sciences), Indian Society for Individual and
Social Development (ISISD), Indian Society for Training & Development (ISTD),
and the HRD Network, and academic institutions such as the IIMs (Indian
Institute of Management.

The present day scenario is that O.D. has emerged as a specialized function in the
management profession. About two decades ago, when O.D. was introduced in
India, there were only one or two organizations practicing the concept. Today,
one out of ten business organizations has an O.D. department or facilitator, or at
least has institutionalized O.D. mechanisms. Trained O.D. consultants offering
their services for initiating and implementing the O.D. effort are also now
available. Even the voluntary, non-profit and public sector organizations have
realized the importance of O.D. for their survival and growth. While the basic
concepts and mechanisms have been studied in the west, they have been altered
and developed to suit the largely relationship driven culture of Indian
organizations leading to very favourable changes both structurally and culturally
in many of them.




                                                                               34
             EMERGING TRENDS IN THE FIELD OF OD


FIVE MACRO FORCES AND THEIR IMPACT ON ORGANIZATIONS:

The following are the Macro forces that impact the organization’s strategies &
future survivability:



1. CHANGES IN TECHNOLOGY:

Changes in technology is the force that is perceived to have the biggest
current and future impact on organizations.
In today's world technology is evolving at a faster rate than any other time
in history. For example Intel, the world's biggest supplier of computer
chips, tries to double the speed of its chip every eighteen months.
Organizations constantly have to adapt to new technology.
Michael Dertouzos, head of MIT Laboratory of Computer
Science, believes that technology will bring together three powerful
elements: massiveautomation, virtual proximity capabilities, a nd
customization.
Technology is allowing new relationships to form that would have never
happened before. The Internet and Intranet are changing the way we do
work and the way we interact with the customer and with each other.
Companies will use the Internet to improve their processes and to
communicate with their suppliers.

These changes create a need for new competencies such as strong computer
skills, strong communication skills, a need to be more customer friendly,
and a need to react to everything much faster.
Changes in technology have also caused problems such as creating physical
barriers between workers, and creating distracters like e-mail, which
contributes to work avoidance.
Many companies install new technology, but do not prepare the people and
the systems for the appropriate changes. Strategies and cost structures need
to be rethought, and employees and customers need to be much more
computer savvy. The success of every technology initiative depends on
overcoming resistance to change.



2. CONSTANT CHANGE:
As opposed to the past, organizations can no longer depend on what they
do today to be successful tomorrow. Organizations are facing changes on
many frontiers such as increased competition and more complex business
models.

                                                                                 35
Technology has linked the world so that companies are not
geographically confined. Therefore, companies are now dea ling with
increased competition from a global market.

Technology is enabling companies to compete in nontraditional
markets, which further increases competition. This competition has
made it so difficult to survive that the companies have to be continually
changing to keep up with the times. One way of accomplishing this is
by taking advantage of economies of scale by merging and acquiring
other companies. The chaos created by merging companies is also a
cause of constant change.
In order for companies to stay competitive, they must also continually
adapt their products and services to meet the ever-changing evolving
needs of the customer. Constant change not only influences companies
on the organizational level; it also has ramifications on the employe e
level. The employee will no longer serve a singular function. Rather, the
employee will move from project to project to mirror the changes in the
company. The constant change often causes the employee to burn out,
and hence stay with the organization short term as opposed to the
traditional business model of life long employment and job security.
Retention and recruiting are current big issues for companies.
Companies are trying to cope with all the issues caused by constant
change by attempting to learn both individually and as an organization.
They are trying new ways to attract and retain employees. They need to
empower their employees. They also need to have a diverse workforce
in order to compete in today's world. Companies need to be flexible to
be able to constantly adapt.



3. PARTNERSHIPS & ALLIANCES:

The business models for competition is dramatically changing.
Companies are realizing that it is not efficient or profitable to own all
of the stages in their value chain. Thus, companies are forming new
types of relationships with each other to obtain stages of the value
chain that they choose not to own. Partnerships and alliances are two
of these types of relationships.
Partnerships and alliances are temporary relationships between two
or more companies with the goals being to share risk, learn from each
other, leverage each other's strengths, and/or gain a competitive
advantage. Partnerships and alliances present many challenges to
companies.
Cultural integration, whether integrating two different company
cultures or two companies with different nationalities, is the most as
the biggest challenge in making alliances work. Thus, it is crucial to
choose "the right" partner. In order to do this; one must have a clear
sense of their own business and the essential drivers for success.

In managing partnerships there are many boundary issues such as who
owns the project and how do you prevent each partner from stealing
each other's secrets. Other challenges would include governance, the
ability for people to work together from different companies, virtual
                                                                            36
teams, and constant communication.



4. CHANGES IN WORK STRUCTURE:
Changes in work structure, like constant change, is a byproduct of
other forces including changes in technology, globalization, mergers
and acquisitions, and constant change. It refers to the effects these
forces have on how organizations structure their work processes.
Mergers, acquisitions, and downsizing are causing firms to rethink the
way they work. Some firms are radically changing their structure
because they are outsourcing products they once did.

Work structure is also changing on the supply side as supply chains
are now forming around a single project and disassembling when the
project ends. Manufacturing capacity is now being bought and sold on
an open market, as opposed to a traditional manufacturing model in
which the manufacturing plant was owned by the organization.



5. DIVERSITY:
Diversity in the workforce is an organization's ability to successfully
recruit and mange a diverse workforce in order to increase productivity,
improve morale, heighten creativity and enhance decision -making.
Diversity refers to any collective mixture (people, race, gender, sex ual
orientation, education, etc., systems, functions, lines of business, etc.)
Characterized by similarities and differences.
Diversity is going to be an issue due to globalization in that businesses
will be dealing with different countries and different cultures. the
experts see that managing diversity in the workforce is important.



6. CHANGES IN DEMOGRAPHICS:
Societal demographics are changing in a significant manner that is
having major ramifications on organizations. Changing demographics is
becoming a powerful macro force & is greatly impacting toda y’s
organizations due to the following factors: the serious decline in birth
rates around the world, the aging baby boomer generation moving into
leadership positions and retirement, the values of younger generations
conflicting with those of their predecessors, and the rise of ethnic
minorities into leadership positions.
The population has been shrinking in developed countries due to
reduction in birth rates. The population of young people is going down
while the population of old people is going up. Not only will this cause
the well-publicized problem of social security but will effect
organizations as well.

                                                                             37
7. GLOBALIZATION:

More and more companies are selling their products and services on a
global basis. Changes in technology, such as the Internet , freer
international trade laws, and competition are some of the primary factors
driving globalization.

As companies become global, they become more susceptible to
growing interdependencies.




                                                                        38
8. MERGERS & ACQUISITIONS:

Mergers and acquisitions are when multiple companies financially
combine and are then owned by the same shareholders to take
advantage of economies of scale. In the future mergers and acquisitions
would occur more between companies of different nationalities.
Regardless of who is merging the big challenge is making the merger
work. Most people feel successfully combining the different company
cultures is a significant factor in determining the success or failure of
the merger.
The two biggest factors in making mergers work is the culture
compatibility of the two organizations and the way the integration is
managed.


TRENDS IN OD INTERVENTIONS:


As a result of today's macro forces, several trends are emerging in the
field of OD. These trends signal compelling opportunities for OD
practitioners and their clients to partner in building successful 21 st
century businesses.

These new trends include:


1. EXPANDING USE OF OD TO MEET THE CHALLENGES OF TODAY’S
MACRO FORCES:


The easiest of the trends to predict is that OD is rapidly becoming more
accepted as necessary to enhance the productivity and profitability of
organizations and is consequently expanding.

An indication of the growth of OD now and in the near future is the
increase in the number of research articles and books wr itten about OD
related topics.

In order to deal with many of the challenges created by the macro
forces more OD is necessary. Constant change is forcing companies to
become more competent at change management. This constant change
is also burning employees out, which is forcing companies to focus on
the quality of work life in order to retain their best employees .

The level of competition is at an all time high due to changes in
technology and globalization. Since companies can quickly access
the same information through technology and benchmarking,
often the competitive advantage rests in the ability of an
organization's employees to analyze, utilize, and capitalize on
information.
Maximizing employee performance is accomplished by a number
of OD interventions including but not limited to following three
                                                                            39
interventions:

(1) Aligning the following organizational dynamics: vision,
organizational design, culture, compensation, and strategy.

(2) Providing the tools and climate that induce constant
learning.

(3) Helping employees obtain strong interpersonal skills so that they
can work on teams, network, and manage conflict with all portions of
the value chain.


2. COMBINING HARD BUSINESS COMPETENCIES & OD SKILLS:

Business managers need to manage and lead their units on a day to day
basis using OD skills such as implementing an active mission, vision and
value system, managing change, and providing an atmosphere for
continuous learning and employee empowerment.
OD is also influencing the traditional management consulting process.
This has created a great opportunity for OD practitioners to transfer
their competencies through coaching and training, in addition to the
existing collaborative consulting approach.
Simultaneously OD practitioners are beginning to use hard business
skills in their work. OD practitioners of the future are going to need to
measure their interventions in bottom line metrics and all OD
interventions will need to be aligned with business goals and strategies.


3. CREATING A WHOLE SYSTEM CHANGE I.E.ORGANIZATIONAL DESIGN
& CULTURE CHANGE:

Many of the practitioners have moved their practice from one that
worked on symptoms of problems by doing isolated interventions to one
that looks at root causes and therefore changes the who le system.
 The backbone of any company is its organizational design and culture;
thus, these are the major components of a whole system change
intervention. Whole system change projects take longer and are more
expensive, but the results are more effective and longer lasting.
The process involves understanding the strategic business model of the
company and making sure the organizational design, culture, and
compensation are all in alignment. Organizational design and culture
will be important to the strategic success of companies.
While every organization is different, there are some common challenges
for most companies that can be dealt with through similar organizational
designs and cultures. These organizational designs include maximizing
flexibility, retention, globalization, empowerment, implementability, and
learning. This aligning of strategy, organizational design, and culture
also needs to be done during mergers and acquisitions.


                                                                            40
4. USING OD TO FACILITATE PARTNERSHIPS & ALLIANCES:

Partnerships and alliances are currently and will continue to be
important to organizations. Considering that the success of partnerships
and alliances is mostly dependent on relationships, culture,
communication, and design, it is natural that OD interventions wil l play
a crucial role in making them work.
There is a large gap between organizations that need help making their
partnerships and alliances successful and the amount of OD practitioners
who are sufficiently skilled to deal with this challenge. Thus, usin g OD to
facilitate partnerships and alliances is an up and coming trend.

5. ENHANCING CONTINUOUS LEARNING AS A PRE REQUISITE FOR
SUCCESS IN 21ST CENTURY:
Learning is extremely important to the success of an organization.
One of the implications of the macro forces is that in order for
companies to keep a competitive advantage, they will need their
employees at all levels to learn more at a faster rate.

Continual learning allows companies to have a better understanding of
how to change in alignment with the evolving customer needs and
market dynamics. The rate of change is constant, hence it is difficult for
companies to take time out of their schedules to educate their employees.
Therefore, there is a great need to combine the processes of
accomplishing work and learning so that employees can do both
simultaneously.

Furthermore, companies need to speculate about the future so that
they are not caught off guard when change occurs. In addition to the
challenge of learning quickly, companies need to learn to be able to
work through the vast amount of data available. Another challenge
will be learning with/from the customers, suppliers, and partners.
OD practitioners have many interventions that can help organizations
and their employees learn faster traditional training, distance learning,
and computer learning. These interventions include knowledge
management, learning organizations and system thinking, leadership
development, creating and leveraging a community of practice,
improving employees' ability to learn, using diversity to enhance
learning, group reflection, and scenario planning.

The challenge will be knowing which tools to use with which companies
at what times and how to use the learning tools together.




                                                                            41
STUDY OF OD INTERVENTIONS IN INDIAN COMPANIES


               CASE STUDY: 1- LARSEN & TOUBRO LIMITED

INDUSTRY: ENGINEERING, MANUFACTURING & CONSTRUCTION

BRIEF BACKGROUND OF THE COMPANY:

Larsen & Toubro Limited (L&T) is a $8.5 billion,technology, engineering,
construction and manufacturing company. It is one of the largest and most
respected companies in India's private sector.

ECC – the Engineering Construction and Contracts Division of L&T is India’s
largest construction organisation with over 60 years of experience and expertise
in the field. ECC figures among the World’s Top Contractors and ranks 35th
among top global contractors and 60th among international contractors as per the
survey conducted by Engineering News Record magazine, USA (August 2008).

Many of the country’s prized landmarks – its exquisite buildings, tallest
structures, largest airports/ industrial projects, longest flyovers, highest viaducts,
longest pipelines including many other benchmark projects have been built by
ECC. ECC’s leading edge capabilities cover every discipline of construction: civil,
mechanical, electrical and instrumentation engineering and services extend to all
core sector industries and infrastructure projects.


The findings of OD interventions at L & T are mentioned below:

1. In 2004, one of the SBU of L & T started facing product failures due to
ineffective manufacturing process, unfavorable quality of spares & parts supplied
by vendors & rising product defects. The growing number of defective products
were being returned back to the company by the dissatisfied clients which
resulted in mounting losses. The top management started losing confidence &
were planning disinvestment looking at the severity of the problem. The problem
worsened further as the middle management refused to show belongingness to
the dire situation & started playing blame game. Hence there were 3 major issues
facing the company that paved way for OD intervention i.e. to gain the market
share in terms of product demand, to turn around the company & to improve
internal leadership, systems & processes. It was around this time that L & T
appointed the new CEO to take charge of the issue & to turn the business around
within 1yr

2. It was under the leadership & guidance of the new CEO the company adopted
an OD intervention called the “Grid OD”, which is a systematic & structured six-
phase theory-based programme developed by the U.S based Grid International
Inc.
                                                                               42
3. The brief summary about Grid International is as follows;

It is a global company that has been helping organizations build outstanding
relationships and a sound culture through leadership style training, management
skill, and team building seminars for over 40 years, in over 40 countries and in 17
languages. The result is increased creativity and problem solving, and greater
levels of productivity. The company helps teams deploy visionary, committed,
and passionate leadership.

Founded by acclaimed pioneers, Drs. Robert Blake and Jane Mouton, Grid
International’s leadership, management, and team building theories are
supported by 45 years of research and experience in the area of human behavior.

The management of change is the key to growth in today’s competitive
marketplace. Grid International is credited with designing the “Grid Power to
Change” programs offering leadership style seminars, team building workshops,
and organizational development designs is a scientifically crafted and proven
method for empowering individuals, teams, and organizations to embrace and
capitalize on change with results. This program lays the foundation that the
power to change only comes from one place- inside the client’s organization.

Grid's “Power to Change program” of leadership style seminars, team building
workshops, and development designs enable organizations to create the
imperative internal dynamics for real results-oriented change.

The Grid methodology helps people learn by investigating and solving the
problems that directly affect them. The process of self-convincing learning
provides people with greater ownership and commitment to their own solutions,
increased confidence in themselves, and in their organization’s ability to
transform and grow.

4. This intervention was jointly facilitated by internal & external certified OD
consultants. The six step process under the Grid OD intervention implemented
by L & T is as follows;




                                                                                   43
Phase 1 - The Grid Seminar:

The Grid seminar is a weeklong seminar in which managers and organization
leaders examine their own leadership style in comparison with the Grid theory of
styles. Through a series of scored activities, and critique and feedback,
participants learn how their personal behavior impacts the people around them.
The seven styles of leadership are analysed and evaluated as the participants test
their effectiveness against various measurements. Participants also learn specific
skills to increase effectiveness. The synergogic designs make the experience more
lasting than a traditional lecture-notes-test-grading setting. Anxieties relating to
personal performance are reduced by conducting the seminar composed of
"stranger" teams, where no direct co-workers participate in the same team. This
team structure allows members to feel more comfortable in exploring personal
critique and feedback, many for the first time. The synergogic designs also
increase the transfer of learning by accurately re-creating the workplace in the
activities. Team members are forced to deal with diverse personalities,
competition, conflict, time pressure, and competition issues in order to make
progress. By the end of the week, members have enough experience with each
other to provide constructive critique regarding personal performance. Members
also have enough experience to provide concrete and meaningful examples that
often reflect comments heard before but ignored or discounted.



Phase 2 - Grid Team Building:

Phase 2 carries the same learning from the individual setting into the intact work
teams. A series of 3-4 day workshops are held during which teams apply their
Phase 1 Grid Seminar learning to their own team's performance. Key team
structure and process issues such as: mutual trust and respect, problem-solving,
decision-making, building commitment, role definition, performance review,
evaluating culture and so on, are examined in comparison with an agree-upon
model of effectiveness. The motivational "gap" produced by the comparison is
then addressed by the team through designing specific improvement steps. As a
conclusion, team members create an action plan for specific team-effort project
along with criteria for measurement and follow-up.



Phase 3 - Intergroup Development/Interface Conflict Solving:

Phase 3 is aimed at solving conflicts which might occur between two teams,
groups, units, departments or management and unions. Key representatives of
each group engage in a structured process whereby they study the relationship
and structures as they currently exist, analyze the underlying issues and establish
ways of dealing with the areas of disagreement or conflict.

                                                                                  44
Phase 4 - Developing an Ideal Strategic Model:

In the Phase 4 design, senior organizational leaders work towards establishing a
vision of organizational excellence through: (1) specifying key optimum and
minimum financial objectives, (2) clear and explicit definitions of the nature and
scope of organizational activities to be pursued, (3) clear operational definitions
of the nature and scope of markets, customers etc., (4) an organizational structure
which integrates operations, (5) basic policies for organizational decision-making,
and (6) identifying development requirements for growth and avoiding
obsolescence and stagnation. With the organization sharing the "common
language" of what effective leadership looks like, they are in a better position to
begin designing and implementing change strategies. The assumption of the Grid
learning is that strategic planning can only take place when underlying and
unresolved dynamic issues are overcome. The synergogic design used to develop
an ideal strategic model increases commitment by giving people throughout the
organization a sense of personal stake and involvement with in the effort to be
undertaken. This occurs through the structured critique cycles that include
participation across the organization's hierarchy.



Phase 5 - Implementing the Ideal Strategic Model:

Blake and Mouton point out that if the four phases have been completed
successfully, many of the barriers to implementation will have already been
surmounted or reduced. Implementing the strategic model becomes a matter of:
(1) studying the gap between the ideal mode and the existing organization
culture and structure, (2) specifying which parts of the organization are sound
and which parts require change, (3) designing implementation steps from move
from the existing to the ideal, (4) continuing to keep the business in operation
which simultaneously changing towards the ideal model.



Phase 6 - Consolidation of the Model:

The final phase is the systematic effort to assess and evaluate progress by
critiquing the change effort, identifying problems and taking corrective action,
and monitoring changes in the external environment which make forced changes
in the model. As Blake, Mouton and McCanse point out, these six phases are not
a fixed and inviolate sequence. There is a natural flow to them in that insights
from the Grid seminar may be brought to the team building activity, and so on. It
is not uncommon, however, to begin with the Interface Conflict Solving to
resolve an existing impasse, and then move to individual and team development.

5. The Grid OD intervention proved to be successful & effective in improving the
manufacturing & quality processes by improving employee productivity through

                                                                                45
the development of effective internal leadership. This is evident from the fact that
there was a sharp increase in the turnover of L & T from rs.100 crs in 2005 to
rs.350 crs in 2007 & increase in overall market share by 2%. Not only did L & T
manufacture better quality machines & equipments but achieved the target of
producing 3009 machines by 2009 in the year 2007 itself. This was possible also
because of the faith & support of the workers & management in the OD
intervention.

6. The initial obstacles faced during the implementation of OD intervention were
to resolve the fears among the workmen regarding attrition & middle
management’s fear of the successful implementation of OD intervention for
quality improvement. These fears were gradually resolved through detailed
communication exercises reinforcing the company’s vision by the top
management & workers were assured of job protection even during the troubled
times. For continuous & assured quality improvement the middle management
was given detailed targets which also formed a part of their performance
management system.

7. Being an engineering & manufacturing conglomerate, L & T believes that
macro forces like changes in technology, constant change in business
environment & new/existing partnerships & alliances have facilitated emerging
trends in OD interventions & have an influence on their processes/systems,
culture & work.

8. The other OD interventions presently used by L & T include quality, process &
systems improvement interventions like Lean manufacturing technique, Business
excellence models like EFQM, Malcom Baldrige & CII (Indian version of EFQM
model). L & T is also practicing the following OD interventions:

a. Pragati – a suggestion scheme for workmen category

b. Leadership development process – to recognize future leaders of the company

c. Structured training & development activities – for organization wide
improvement

Thus, presently the company practices Technostructural, Management &
leadership development & HR management interventions related to quality
improvement, effective leadership, team building & facilitation through training.

9. L & T looks forward to adopt & implement Behavioral interventions in near
future which it thinks are currently needed.

10. As far as the emerging trends in OD interventions are concerned, there is no
change in the methodology for implementation. However, the classical OD
approach of focusing on behavioral interventions which was believed in leading
to quality/process improvement has receded. Presently the trend has shifted to
change management interventions which focus more on hard systems
                                                                                 46
development i.e. business process re-engineering, implementation of ERP system
throughout the organization. Thus, the emerging trends in OD interventions
include combining hard business competencies & OD skills as well as expanding
use of OD to meet the challenges of today’s macro forces.

11. The rate of effectiveness of implementation of OD interventions w.r.to
achievement of desired objectives in the company is between 91%-100%. The rate
of effectiveness of implementation of OD interventions w.r.to the level of
satisfaction is between 91%-100%.




                                                                            47
                   CASE STUDY: 2- MARICO LIMITED


INDUSTRY: FMCG

BRIEF BACKGROUND OF THE COMPANY:

Marico is a leading Indian Group in Consumer Products & Services in the
Global Beauty and Wellness space. Marico's Products and Services in Hair
care, Skin Care and Healthy Foods generated a Turnover of about Rs. 23.9
billion (about USD 478 Million) during 2008-09. Marico markets well-known
brands such as Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti,
Mediker, Revive, Manjal, Kaya, Aromatic, Fiancee, Hair Code, Caivil, Code
10 and Black Chic. Marico's brands and their extensions occupy leadership
positions with significant market shares in most categories- Coconut Oil,
Hair Oils, Post wash hair care, Anti-lice Treatment, Premium Refined Edible
Oils, niche Fabric Care etc. Marico is present in the Skin Care Solutions
segment through Kaya Skin Clinics (100 in India and The Middle East) and
its soap franchise (in India and Bangladesh).

Marico's branded products are present in Bangladesh, other SAARC
countries, the Middle East, Egypt, Malaysia and South Africa. The Overseas
Sales franchise of Marico's Consumer Products (whether as exports from
India or as local operations in a foreign country) is one of the largest amongst
Indian Companies and is entirely in branded products and services.

Every month, over 70 Million consumer packs from Marico reach
approximately 130 Million consumers in about 23 Million households,
through a widespread distribution network of more than 33 lakh retail
outlets in India and overseas.

Marico's focus on sustainable profitable growth is manifest through its
consistent financial performance - a CAGR of 24% in Turnover and 28% in
Profits over the past 5 years- while setting a record of several consecutive
quarters of year on year growth- 41 for Profits and 37 for Sales.

The Marico scrip is listed on the Bombay Stock Exchange (BSE)
& on the National Stock Exchange (NSE) (Code "MARICO").


The findings of OD interventions at Marico Ltd are mentioned below:

NOTE: the responses & findings below are given by the respondent who
worked with Marico between 1990-99 where he performed 4 different roles.




                                                                                   48
1. The OD approach was adopted by the company in the early 1990’s under
the leadership of Mr. Harsh.C.Mariwala (Chairman & MD of Marico Ltd).
Mr. Harsh started his career with the Bombay Oil Industries Limited (BOIL)
in the year 1971. Taking charge of the Company's Consumer Products
division in 1975. The company has grown from an annual turnover of Rs. 50
Lac to Rs. 1557 crores in the year 2007. The growth curve has been especially
steep since 1990, when the FMCG division of BOIL was hived off into Marico
Industries Ltd. (Marico).

Over the last 3 decades, Harsh has transformed a traditional commodity
driven business into a leading Consumer Products & Services Company in
the Beauty and Wellness space.

Over its history, Harsh's leadership and the powerful experience of invoking
innovative thinking kindled the imagination of Marico's managers. They
signed up for various projects and in the course of their work with various
products and brands, discovered the spin-off benefits of new thought frames.

Under Harsh's leadership, Marico has achieved several recognitions. Rated
as one of India's Most Innovative companies (Business Today-Monitor Group
Innovation Study 2008), Marico was selected as one of eight Indian
companies in the Standard & Poor's Global Challengers List (2007).

Mr. Mariwala has been the founder member of Innovation for India - Marico
Foundation along with Prof. Mashelkar to promote the cause of fueling
innovation in the business, social and education sectors in India.

2. The reason for initiating & implementing the OD interventions was to
make the company more competitive, for better growth & increasing the
overall turnover. Mr. Harsh wanted the company to be perceived as a
prosperous FMCG company making user friendly products like P & G,
Dabur & not just as one of the many commodity players in the Oil industry.

3. This lead to the re-orientation of the company by adopting the Institutional
Building philosophy called the “Mission & Values approach” as the major
OD intervention. This approach implied that the sole purpose of the
company is not only to earn better profits, but also to build a better quality
organization, to become the top & responsible player in the industry.




                                                                                  49
The essence of this approach was the alignment of performance with
Mission & Values of the company. Employee participation was the key in
making this approach successful. Mission refers to the purpose of existence
of the company & its future aspirations, whereas the Values refer to making
right choices for the company. The values of the company made sure that it
would not only culminate into a business oriented organization but also
would be recognized as the employee & consumer centric company. The
old values of the company in 1990 consisted of 3Ps-People, Product,
Profitability in order to blend people coming into a fast-growth
organization from diverse cultures.

4. The process of 3Ps made the culture more explicit & lead to integration of
cultures in the company. It put the responsibility of doing right things on
employees directly without any control & command method. The company
wanted to build its character which was not determined by the man at the
top but by its employees.

5. However the values of the company changed with time due to increased
competition. Despite being a leader in most of the categories it operates in,
Marico sensed the environment around it's bastions get competitive -
locally as globally. The new change taking place at Marico was more
environment led. It realised a high degree of competition in the future. And
it is the pace of change in the industry, which led the company to device a
new culture within.

Competition had sneaked into the Rs 500-crore coconut oils market, where
Parachute was the leader, after Hindustan Lever relaunched Nihar and
Coco Care. ITC Conagra had also become active in edible oils. These
changes triggered the company to fine-tune its culture to strengthen it from
within. While it already followed good HR practices, the company decided
to closely align HR with corporate strategy as a major tool to insulate it
from the evironmental changes. That HR practices would be the enablers to
this change, was certain.

Thus, the old Marico values of 3Ps-People, Product, Profitablity-
transcended into COMEWIN: Consumer, Membership, Excellence, Wealth,
Innovation. The 3P Marico culture had its roots in the past when it was
formed in 1990, to blend people coming into a fast-growth organisation
from diverse cultures.




                                                                                50
But integrating cultures was no longer enough. In mid-90’s Marico realised that
in the new environment speed and innovation will be the key drivers to growth.
And for this, each employee would have to display speed and innovation by
inculcating the three traits: aggressively productive, relentlessly collaborative,
with a path-breaking consumer touch. Innovation was defined as the key factor
in all dealings.

A need for a self-defined, new culture which would help Marico cope with
external changes was felt. The definition of the culture was then broken down
into the new traits which would be needed in every Marico employee.

The idea behind the new traits was clear: to improve the four critical areas of
branding, innovation, cost and distribution. It was realized that if costs are being
pared and targets achieved, then the member is being `aggressively productive'.
If product innovation has gone up, then the member has inculcated the first trait
of `path-breaking consumer touch' and branding. An improvement in
distribution is a logical conclusion that the member is `relentlessly collaborative'.

6. From COMEWIN to win-win situation by driving innovation-

Some Examples:

a. The cost of purchasing cartons is less than one per cent of the company's sales-
but it was still quite a significant sum. The normal practice at Marico was that
each of the company's departments would procure cartons independently and
bargain the costs with the respective suppliers.

One department stumbled across the idea: why not reduce costs by aggregating
the demand for cartons and wield better negotiating power with just one
supplier? This information, which translated into cost reductions, was then
speedily communicated to team members of the other departments . Marico
claims to have considerably pared costs on cartons through this initiative.

b. As the company deals with a lot of liquids, waste on account of spillage or
leakage is a big issue. The waste on account of spillage forms about 0.5 per cent of
the company's sales, which is again substantial. The healthcare division struck
upon a new packaging innovation which was implemented by the R&D team,
and is being replicated by other departments: cartons are typically, stacked one
layer over the other in a truck during transportation.

Inspired by the new aura of innovation, cartons were now redesigned in such a
way so as to reduce the spillage. Moreover, the innovation was done at the barest
minimum cost escalation.




                                                                                   51
Marico decided to bring about consumer innovation much more strongly
through technological innovation coupled with market research and creativity
involving a project-based approach. That means utilising every idea that churns
out from within the Marico psyche. The company thus ushered in a Marico
Innovation Process which converts a consumer insight into reality. This is done in
co-ordination between marketing and R&D. The Marico Innovation Process is
designed to drive the three new traits in employees.

While a marketing person may stumble upon an idea, the R&D department will
see how it can be implemented. A similar set-up is being planned for other
departments also. This ensures that the success rate is high. The process is being
institutionalised within the company.

The new Parachute `tamper-proof' coconut oil with a tamper-resistant sealed cap
which was launched recently, is one of the first few ideas to have bloomed from
the Marico Innovation Process.

In order to usher in the Marico Innovation Process, the company has appointed a
clutch of Innovation Facilitators: each has been hand-picked from a different
division to ensure that ideas on projects are implemented through the right
process.

According to company sources, Marico has been inundated with ideas after this
process was put in place. In order to iron out the rough edges and filter down
selective ideas, Gate Keepers have now been appointed. These Gate Keepers are
usually CEOs who select the best ideas from the innovation-funnel process.

7. Other OD intervention practiced by Marico was Management by Objectives
strategy with a sharp focus on Management by Results (MBR), which is a variable
pay system to reward its employees in order to motivate them to run that extra
mile and inculcate the three newly defined traits.

The total employee strength at Marico was about 600, out of which 200
managerial-level employees were directly covered under MBR. According to this
Gain Sharing Model, 50 per cent of the variable achievements in profits will be
distributed among the managerial-level members including trainees. It raised
levels of enthusiasm and everyone aimed to do better so as to get a better variable
pay.

8. The company also implemented the Structured Problem Solving technology so
as to solve the root causes of the problems & not only the symptoms. This
approach provided a platform for analytical problem solving.

9. In 1995, the company adopted the TQM approach which captured the holistic
performance of employees.


                                                                                 52
TQM is an organizational change intervention that is concerned with quality.
TQM can be defined as “an approach to doing business that attempts to
maximize the competitiveness of an organization through the continual
improvement of the quality of its products, services, people, processes and
environment (Goetsch & Davi, 1995)”.

TQM interventions utilize established quality techniques and programs that
emphasize quality processes, rather than achieving quality by inspecting
products and services after processes have been completed.

10. The present interventions adopted by the company include ERP & SAP
implementation across the company & Internationalization, which is a process of
increasing the revenues by setting up or acquiring units internationally & this
approach is preferred over exports.

Thus, presently the company practices Strategic & Technostructural interventions
related to strategic planning & change management.

11. The obstacles faced by the company in implementing OD interventions to
initiate & manage change process include strong resistance to change among
employees, high level of turnover among employees due to growth stagnation
resulting from flat structure of the organization, lack of convincing power among
the initiators of change to communicate effectively about the change process to
employees, less aggressiveness showcased by Mr. Harsh Mariwala & the
perception among the employees that their day-to-day work was not aligned to
the “Mission & Values approach”.

12. The family owned public limited companies today like Marico Ltd are being
run by professionals & are making an effort to curb inter family conflicts
especially in the bad times. As far as the emerging trends in OD interventions are
concerned, the company today is adopting large scale interactive processes to
help employees participate & get aligned with the change process, executive
coaching & mentoring, employee engagement using social networking &
constant state of learning in the organization. Thus, the emerging trends in OD
interventions include combining hard business competencies & OD skills,
expanding use of OD to meet the challenges of today’s macro forces & enhancing
continuous learning as a pre requisite for success.

13. It was learnt that macro forces like changes in work structure, technology,
changes in demographics & partnerships & alliances have facilitated emerging
trends in OD interventions & have an influence on the processes/systems,
culture & work at Marico Ltd

14. The rate of effectiveness of implementation of OD interventions w.r.to
achievement of desired objectives in the company was between 91%-100%.
The rate of effectiveness of implementation of OD interventions w.r.to the level of
satisfaction was between 81%-90%.

                                                                                  53
           CASE STUDY: 3- ORBIT CORPORATION LIMITED

INDUSTRY: REAL ESTATE

BRIEF BACKGROUND OF THE COMPANY:

Mr Ravi Kiran Aggarwal, the founder of Orbit Steels which is a partnership
trading company established the company in 1973 and is the brain behind
forming Jindal Steels’ countrywide sales and retail network.
In the 80s, Mr. Aggarwal promoted Tasty Bite Eatables Limited followed by a
foray in Real Estate industry in 1989. After meticulously conceptualizing and
executing projects in New Bombay, the Company now pursues
redevelopment opportunities in the Island city of Mumbai.
Year 2000, Orbit Cybertech Limited was formed under which the real estate
development was conducted. This was rechristened Orbit Corporation
Limited in 2006.

Orbit Corporation Limited (OCL) is an India-based real estate construction
and development company. The Company caters to the high-end residential
and commercial properties. The Company focuses primarily on the re-
development of existing properties at prime location in Island city of
Mumbai. Its subsidiaries include Orbit Highcity Private Limited, Orbit
Residency Private Limited and Ahinsa Buildtech Private Limited.


The findings of OD interventions at Orbit Corporation Limited (OCL) are
mentioned below:

1. Being in the business of real estate development, carving the dreams of
people, satisfying the needs of customers & marketing international
standards of quality homes is the company’s forte. This is possible by
identifying the current & future requirements of their customers, by
continually upgrading the benchmarks & norms of quality management
system for effectiveness.

The objectives of developing the quality system for the projects undertaken
by the company are:
a. Customer appreciation & satisfaction of customer expectations
b. To train & retain invaluable resources of talent, expertise & creativity by
cherishing them as family
c. To ensure continuous growth & sharper profitability




                                                                                 54
2. With a view to ensure continuous improvement in quality of their internal
processes & management systems, the company has voluntarily adopted such
interventions like implementation of several international standards. Adopting
such international standards was also aimed at improving the competence of
employees, to enhance company’s image & to align & upgrade the internal
processes to international standards.

3. A brief on International Standards is as follows;

International standards are standards developed by international standards
organizations. They are available for consideration and use, worldwide.

International standards may be used either by direct application or by a process
of modifying an international standard to suit local conditions. The adoption of
international standards results in the creation of equivalent, national standards
that are substantially the same as international standards in technical content, but
may have (i) editorial differences as to appearance, use of symbols and
measurement units, substitution of a point for a comma as the decimal marker,
and (ii) differences resulting from conflicts in governmental regulations or
industry-specific requirements caused by fundamental climatic, geographical,
technological, or infrastructural factors, or the stringency of safety requirements
that a given standard authority considers appropriate.

Standards ensure desirable characteristics of products and services such as
quality, environmental friendliness, safety, reliability, efficiency and
interchangeability - and at an economical cost.

When products, systems, machinery and devices work well and safely, it is
often because they meet standards. And the organization responsible for
many thousands of the standards which benefit the world is ISO.

ISO (International Organization for Standardization) is the world's largest
developer and publisher of International Standards.

ISO is a network of the national standards institutes of 159 countries, one
member per country, with a Central Secretariat in Geneva, Switzerland, that
coordinates the system.

ISO is a non-governmental organization that forms a bridge between the
public and private sectors. On the one hand, many of its member institutes are
part of the governmental structure of their countries, or are mandated by their
government. On the other hand, other members have their roots uniquely in
the private sector, having been set up by national partnerships of industry
associations.

Therefore, ISO enables a consensus to be reached on solutions that meet both
the requirements of business and the broader needs of society.

                                                                                  55
ISO standards:

 make the development, manufacturing and supply of products and services
more efficient, safer and cleaner
 facilitate trade between countries and make it fairer
 provide governments with a technical base for health, safety and
environmental legislation, and conformity assessment
 share technological advances and good management practice
 disseminate innovation
 safeguard consumers, and users in general, of products and services
 make life simpler by providing solutions to common problems

ISO standards provide technological, economic and societal benefits.

For businesses, the widespread adoption of International Standards means
that suppliers can develop and offer products and services meeting
specifications that have wide international acceptance in their sectors.
Therefore, businesses using International Standards can compete on many
more markets around the world.

For innovators of new technologies, International Standards on aspects like
terminology, compatibility and safety speed up the dissemination of
innovations and their development into manufacturable and marketable
products.

For customers, the worldwide compatibility of technology which is achieved
when products and services are based on International Standards gives them
a broad choice of offers. They also benefit from the effects of competition
among suppliers.

For governments, International Standards provide the technological and
scientific bases underpinning health, safety and environmental legislation.

For trade officials, International Standards create "a level playing field" for all
competitors on those markets. The existence of divergent national or regional
standards can create technical barriers to trade. International Standards are
the technical means by which political trade agreements can be put into
practice.

For developing countries, International Standards that represent an
international consensus on the state of the art are an important source of
technological know-how. By defining the characteristics that products and
services will be expected to meet on export markets, International Standards
give developing countries a basis for making the right decisions when
investing their scarce resources and thus avoid squandering them.


                                                                                      56
For consumers, conformity of products and services to International
Standards provides assurance about their quality, safety and reliability.

For everyone, International Standards contribute to the quality of life in
general by ensuring that the transport, machinery and tools we use are safe.

For the planet we inhabit, International Standards on air, water and soil
quality, on emissions of gases and radiation and environmental aspects of
products can contribute to efforts to preserve the environment.


4. Presently the company is an ISO 9001:2000 (internationally recognized
standard for the quality management of businesses) certified company & has
implemented the following International Standards;
a. ISO 9001:2008
b. ISO 14001:2004
c. ISO 27001:2005
d. OHSAS 18001:2007
e. SA 8000:2008

5. A detailed summary on each International Standards is as follows;

a. ISO 9001:2008 (The International Standard for Quality Management):


ISO 9001 is a quality management standard which is the latest & revised version of
the previous standard ISO 9001:2000. ISO 9001, like all standards is subject to
periodic review. Normally the review period is around 5 – 6 years.

The 2008 version of ISO 9001 was officially released on November 13, 2008. ISO
9001:2008 does not introduce any new requirements. It provides clarification to the
existing requirements of ISO 9001:2000 & it introduces changes intended to
improve consistency with ISO 14001:2004. It applies to all types of organizations. It
doesn't matter what size they are or what they do.

It applies to the processes that create and control the products and services an
organization supplies. It prescribes systematic control of activities to ensure that
the needs and expectations of customers are met. It is designed and intended to
apply to virtually any product or service, made by any process anywhere in the
world.

It can help both product and service organizations achieve standards
of quality that are recognized and respected throughout the world.
ISO 9001:2008 specifies requirements for a quality management system where
an organization;



                                                                                   57
 needs to demonstrate its ability to consistently provide product that meets
customer and applicable statutory and regulatory requirements, and
 aims to enhance customer satisfaction through the effective application of the
system, including processes for continual improvement of the system and the
assurance of conformity to customer and applicable statutory and regulatory
requirements.

All requirements of ISO 9001:2008 are generic and are intended to be
applicable to all organizations, regardless of type, size and product provided.

Where any requirement(s) of ISO 9001:2008 cannot be applied due to the
nature of an organization and its product, this can be considered for
exclusion.

The rules are updated, as the requirements motivate changes over time. Some of
the requirements in ISO 9001:2008 include:

 a set of procedures that cover all key processes in the business;
 monitoring processes to ensure they are effective;
 keeping adequate records;
 checking output for defects, with appropriate and corrective action where
    necessary;
 regularly reviewing individual processes and the quality system itself for
effectiveness; and
 facilitating continual improvement.

A company or organization that has been independently audited and certified to
be in conformance with ISO 9001 may publicly state that it is "ISO 9001 certified"
or "ISO 9001 registered". Certification to an ISO 9001 standard does not guarantee
any quality of end products and services; rather, it certifies that formalized
business processes are being applied.

The benefits of implementing ISO 9001:

Implementing a Quality Management System will motivate staff by defining their
key roles and responsibilities. Cost savings can be made through improved
efficiency and productivity, as product or service deficiencies will be highlighted.
From this, improvements can be developed, resulting in less waste, inappropriate
or rejected work and fewer complaints. Customers will notice that orders are met
consistently, on time and to the correct specification. This can open up the market
place to increased opportunities.

Why seek certification to ISO 9001?

Registration to ISO 9001 by an accredited certification body shows committed to
quality, customers, and a willingness to work towards improving efficiency.


                                                                                   58
 It demonstrates the existence of an effective quality management system that
satisfies the rigours of an independent, external audit.
 An ISO 9001 certificate enhances company image in the eyes of customers,
employees and shareholders alike.
 It also gives a competitive edge to an organization’s marketing.




b. ISO 14001:2004 (Environmental Management Standard):

ISO 14001 is the internationally recognized standard for the environmental
management of businesses. It prescribes controls for those activities that have an
effect on the environment. These include the use of natural resources, handling
and treatment of waste and energy consumption. It applies to those
environmental aspects which the organization has control and over which it can
be expected to have an influence.

ISO 14001:2004 specifies requirements for an environmental management
system to enable an organization to develop and implement a policy and
objectives which take into account legal requirements and other requirements
to which the organization subscribes, and information about significant
environmental aspects. It applies to those environmental aspects that the
organization identifies as those which it can control and those which it can
influence. It does not itself state specific environmental performance criteria.

ISO 14001:2004 is applicable to any organization that wishes to establish,
implement, maintain and improve an environmental management system, to
assure itself of conformity with its stated environmental policy, and to
demonstrate conformity with ISO 14001:2004 by

a) Making a self-determination and self-declaration, or

b) Seeking confirmation of its conformance by parties having an interest in the
organization, such as customers, or

c) Seeking confirmation of its self-declaration by a party external to the
organization, or

d) Seeking certification/registration of its environmental management system
by an external organization.

All the requirements in ISO 14001:2004 are intended to be incorporated into
any environmental management system. The extent of the application will
depend on factors such as the environmental policy of the organization, the
nature of its activities, products and services and the location where and the
conditions in which it functions.


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This standard is applicable to any organization that wishes to:

 Implement, maintain and improve an environmental management system.
 Assure itself of its conformance with its own stated environmental policy
(those policy commitments of course must be made).
 Demonstrate conformance.
 Ensure compliance with environmental laws and regulations.
 Seek certification of its environmental management system by an external third
party organization.
 Make a self-determination of conformance.

The Benefits of implementing ISO 14001:

Implementing an Environmental Management System is a systematic way to
discover and control the effects a company has on the environment. Cost savings
can be made through improved efficiency and productivity. These are achieved
by detecting ways to minimize waste and dispose of it more effectively and by
learning how to use energy more efficiently. It verifies compliance with current
legislation and makes insurance cover more accessible.

Why seek certification to ISO 14001?

Once you have an environmental management system in place, you may
choose to have it externally audited. Following a successful audit by an
accredited certification body, you will be issued with a certificate of
registration to ISO 14001. This demonstrates that your organization is
committed to environmental issues and is prepared to work towards
improving the environment. It also gives a competitive edge to the company's
marketing and enhances its image in the eyes of customers, employees and
shareholders.



c. ISO 27001:2005 (Information Security Management Standard):

ISO 27001 is a specification for the management of Information Security. It is
applicable to all sectors of industry and commerce and not confined to
information held on computers. It addresses the security of information in
whatever form it is held.

The information may be printed or written on paper, stored electronically,
transmitted by post or email, shown on films, or spoken in conversation.
Whatever form the information takes, or means by which it is shared or stored,
ISO 27001 helps an organization ensure it is always appropriately protected.

Orbit corporation ltd implements information security management system
w.r.to the following:

                                                                                 60
i. Physical security (for guards).

ii. Electronic security (Access control system, CCTV, fire alarm system, smoke
detection system, gas suppression system).

iii. Patents.

Information security can be characterized as the preservation of:

 Confidentiality - ensuring that access to information is appropriately
authorized.
 Integrity - safeguarding the accuracy and completeness of information and
processing methods.
 Availability - ensuring that authorized users have access to information when
they need it.

The objective of the standard itself is to "provide a model for establishing,
implementing, operating, monitoring, reviewing, maintaining, and improving an
Information Security Management System". Regarding its adoption, this should
be a strategic decision. Further, "The design and implementation of an
organization's ISMS is influenced by their needs and objectives, security
requirements, the process employed and the size and structure of the
organization".

ISO 27001 contains a number of control objectives and controls. These include:

       Security policy
       Organizational security
       Asset classification and control
       Personnel security
       Physical and environmental security
       Communications and operations management
       Access control
       System development and maintenance
       Business continuity management
       Compliance



Why is Information Security Needed?

Information is now globally accepted as being a vital asset for most organizations
and businesses. As such, the confidentiality, integrity, and availability of vital
corporate and customer information may be essential to maintain competitive
edge, cash-flow, profitability, legal compliance and commercial image. ISO 27001
is intended to assist with this task. It is easy to imagine the consequences for an
organization if its information was lost, destroyed, corrupted, burnt, flooded,
sabotaged or misused. In many cases it can lead to the collapse of companies.
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Benefits of Certification to ISO 27001:

Obtaining a certificate from a third party certification body demonstrates that
you have addressed, implemented and controlled the security of your
information. But the benefits don’t stop there. Certification also:

 Comforts customers, employees, trading partners and stakeholders – in the
knowledge that your management information and systems are secure.
 Demonstrates credibility and trust.
 Can lead to cost savings. Even a single information security breach can involve
significant costs.
 Establishes that relevant laws and regulations are being met.
 Ensures that a commitment to Information Security exists at all levels
throughout an organization.



d. OHSAS 18001:2007 (Occupational Health and Safety management standard):

OHSAS 18000 is an international occupational health and safety management
system specification. OHSAS 18001 is an audit/certification specification, not a
legislative requirement or a guide to implementation. OHSAS 18001 defines a set
of occupational health and safety management system requirements. It is used
to establish occupational health and safety management system.

Essentially, OHSAS helps in a variety of respects .i.e. it helps to minimize risk to
employees of the company/labourers of contractors & subcontractors etc;
improve an existing OH&S management system; demonstrate diligence; gain
assurance; etc. The benefits can be substantial.



Why seek certification to OHSAS 18001?

Registration to OHSAS 18001 by an independent, third party, certification body
demonstrates a commitment to implement, maintain and improve the way in
which you manage your Health and Safety system.

Organizations registered to OHSAS 18001 can be more confident about meeting
the requirements of Health and Safety legislation. The setting of targets through
the Health and Safety policy, together with the ongoing measurement against it
ensures a process of continual improvement.




                                                                                   62
How Can OHSAS Help?

The OHSAS specification is applicable to any organization that wishes to:

 Establish an OH&S management system to eliminate or minimize risk to
employees and other interested parties who may be exposed to OH&S risks
associated with its activities.
 Assure itself of its conformance with its stated OH&S policy.
 Demonstrate such conformance to others.
 Implement, maintain and continually improve an OH&S management system.
 Make a self-determination and declaration of conformance with this OHSAS
specification.
 Seek certification/registration of its OH&S management system by an external
organization.



e. SA 8000:2008 (social accountability standard for decent working conditions):

SA8000, or Social Accountability 8000, is a global applied management system for
companies seeking to guarantee the basic rights of their workers. SA8000 is an
international standard for improving working conditions.SA8000 provides a
voluntary workplace certification and is mainly used by Western companies
ensuring their whole supply chain operates on a minimum of social standards.

The system provides social standards that are applicable to all
industries and is based on the principles of international human rights norms
as described in International Labour Organization conventions, the United
Nations Convention on the Rights of the Child and the Universal Declaration of
Human Rights as well as specifies requirements for a management
system which ensures the implementation of these standards in
business policy.

SA8000 is promoted as a voluntary, universal standard for companies interested
in auditing and certifying labour practices in their facilities and those of their
suppliers and vendors. It is designed for independent third party certification.



The SA8000 code of practice measures the performance of companies into nine
key areas:

     Child labour;
     Forced labour;
     Health and safety;
     Freedom of association and collective bargaining;
     Discrimination;

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     Disciplinary practices;
     Working hours;
     Compensation;
     Management systems.



It has been estimated that upwards of 100 million children worldwide are in full-
time labour. The vast majority are in Asia, Africa and South America. Under the
terms of SA8000, companies must not support child labour.

Furthermore, they must also provide their staff with a safe and healthy working
environment, and respect the right of employees to enroll in trade unions.

Discrimination, whether on the grounds of race, nationality, sex, disability or
political affiliation, is not allowed, and neither are corporal punishment and
verbal abuse.

Companies applying for SA8000 certification must ensure that none of their staff,
or those working for their suppliers, is required to work more than 48 hours a
week, or more than six days a week. Moreover, wages must be at least equal to
legal or 'industry minimum' levels, and must be sufficient to leave the employee
with some discretionary income.

The final category covered by SA8000, governing management systems, sets out
the structures and procedures that companies must adopt in order to ensure that
compliance with the standard is continuously reviewed.

Social Accountability 8000 (SA8000) has been developed by Social Accountability
International (SAI), known until recently as the Council on Economic Priorities
Accreditation Agency.

Social Accountability International (SAI) is a non-governmental, multi-
stakeholder organization whose mission is to advance the human rights of
workers by promoting decent work conditions, labor rights, and corporate social
responsibility through voluntary standards.

SAI partners with trade unions, non-governmental organizations (NGOs), multi-
stakeholder initiatives, organic, fair trade, and environmental organizations,
government agencies, and anti-corruption groups to carry out its mission.



6. There were several obstacles encountered while implementing the upgraded
standard each time. There was strong resistance among the management
employees to accept the implementation of new standards. There was also lack of
commitment & support from the employees due to lack of awareness about the
functionality & efficiency of the standards to ensure smooth flow of work &
                                                                                  64
operations. To overcome such challenges the company is conducting rigorous
follow up sessions backed by effective communication among employees.

7. The rate of effectiveness of implementation of OD interventions w.r.to
achievement of desired objectives i.e. Stage I audit in the company is between
51%-60%. The rate of effectiveness of implementation of OD interventions w.r.to
the level of satisfaction among the employees is between 51%-60%.




                                                                              65
                 THE OD JOURNEY AT INDIAN COMPANIES


        COMPANY: TATA CONSULTANCY SERVICES LIMITED

BRIEF BACKGROUND OF THE COMPANY:


Tata Consultancy Services Limited (TCS) is a software services and consulting
company headquartered in Mumbai, India. TCS is the largest provider of
information technology and business process outsourcing services in India. The
company is listed on the National Stock Exchange and Bombay Stock Exchange of
India. The company provides services like IT services, business solutions, and
outsourcing.

TCS is a subsidiary of one of India's largest and oldest conglomerates, the Tata
Group, which has interests in areas such as energy, telecommunications, financial
services, manufacturing, chemicals, engineering, materials, government and
healthcare. TCS has revenues of $6 Billion for FY 2008-09.

The findings of OD interventions at TCS are mentioned below:

INTRODUCTION TO OD INTERVENTIONS AT TCS:

At Tata Consultancy Services Limited, (TCSL), OD interventions have been
instrumental in facilitating change management and bringing about competitive
advantage. OD has contributed to redefining the organization's relationship to
its environment, its markets and key stakeholders.
At TCS, OD has brought about a paradigm shift especially in the cultural
perspective. The structural alignment and commensurate cultural changes
thereof have been facilitated in a deliberate manner to improve the total system
- the relationship and its parts in the context of the larger market environment
with the help of OD interventions.


THE PRE-OD SCENARIO: STRENGTHS AND AREAS OF CONCERN AT TCS:

In the years 1998-99, TCS had grown into the largest Indian software company
with revenues of over Rs. 1600 crores and racing towards achieving its vision of
being global top ten. As pioneers in the industry, TCS's strengths included on
time delivery, premier position in the industry in terms of revenues, focus on
training programs, quality initiatives, use of good technical tools and
procedures and encouragement of individual excellence in performance.

However, TCS was also, at that point in time, grappling with a few areas of
concern with regard to its operational paradigm.

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Mounting revenue pressures: The pressure to retain its strong premier position
led the organization to tend towards short-term revenues, and relatively lesser
efforts were being put into medium and long-term markets and activities (such
as products and building up knowledge). Though TCS built relationships with
individual customers, Relationship Managers largely tended to focus on obtaining
short-term projects - there was lesser investment on aligning to long-term
objectives of customers. The approach, by and large, was of reactive project
management and TCS was yet to espouse the approach of architecting proactive
solutions for the customer.

Selectivity in projects: There was a tangible tension at TCS, between generating
revenues and organizing strategically, on basis of technology and business areas,
impacting selectivity in projects accepted. Pressures from customers on schedules
was resulting in faster delivery and hence, snowballing into further pressure on
future schedules.

Focus on specialization: There was diffusion of expertise and TCS was yet to
focus on building strategic expertise in individual centers. Employees were
rotated across domains and skills in the interest of learn ability as well as for
meeting requirements. In a sense, there was heightened focus on Voice of the
Customer, in comparison to the Voice of Employee.

Efforts on Experimentation & Innovation: The management at TCS felt that by
and large, employees tended to go straight by the book. Though Dr. De Bono's
techniques were introduced and employees trained on these techniques to
encourage innovation, there was a need to scale up on perceived rewards for
experimentation.

Rewards and Recognitions: The reward structure at TCS was, at this point in
time, primarily focused on individual performance and the company was yet to
explore the institutionalization of team based rewards at the organizational level.

Inter group co-ordination & knowledge sharing: Sharing of knowledge was
very centre-oriented, and although, informally, best practices spread by
interaction and word of mouth, TCS was yet to evolve a formal system which
would capture these for ease of replication across projects. Multiple centers
and multiple projects within the same centre ended up resolving the same sort of
issues, resulting in avoidable rework.

Branding and PR: Image building endeavors were not yet an area of focus and,
in a subtle way, this affected the sense of pride of employees. Among
educational institutions, this meant greater difficulty in terms of attracting
quality talent, which further aggravated stress among the few key performers in
the organization.

By the year 2002, management felt the conscious need to bring in changes in their
approach to the aforementioned areas, in order to align more closely with the
customer, business and market requirements at an organizational level.
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ALIGNMENT AND STRUCTURE AT TCS:

With respect to alignment, there was a need to create an environment of
dialogue between system dynamics and human dynamics in the organization.
Strategy comes from the market, form comes from structure; capacity from
technology; and synergy from culture. The organizational design at that point
needed to incorporate this holism and thereby bring in, a coherent
organizational identity. The flow of philosophy to policy to practice and
further to procedure in organizational design, needed to be re-looked at
neutrally.

In the interest of alignment of strategy and culture, the need for a dynamic
process of dialogue between the "Generals and the Scouts" was also felt.

Alignment and Attunement:

As an answer to the above areas of concern, alignment and attunement were
sought to be achieved through integrating and balancing out the
four voices:

• Voice of Wealth
• Voice of Employee
• Voice of Customer
• Voice of Technology

The Organizational Development interventions at TCS focused on balancing
tensions arising from these four voices along dimensions of strategizing,
valuing, serving, energizing, investing and improving.


Scenario Building Workshops:

An internal organization workshop was conducted with top management for
scenario building. This program focused at a larger level, on the "The TCS that
can be ". The idea was to challenge the conventional ways of thinking and to
give shape to the key drivers of change through realistic listening and
dialoguing. These workshops were followed by dissemination and
communication of the scenarios with teams in order to develop a new
language in the organization, consistent with the envisaged future scenario.

As a fallout of this workshop, several representatives of senior
management worked on building scenarios as for e.g. on TCS tools and
approach to high end consulting. These looked at what they were and what
they wished to be, their competition, changes and challenges with regard to
their business models, technologies, products and support functions.

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Further, the factors that would facilitate the desired change and focuses that
needed to be redefined were clearly laid down.

The scenarios addressed the nature of the struggle the organization
would go through and etched out realistic possibilities based on present
factors. The roles and context that would impinge on the following were
detailed:
• Wealth creation
• Factors which will enhance productivity and enhance the feeling of being
valued
• Resource allocation and team-work
• Membership criteria and norms of the group
• Learning opportunities for individuals and teams


Goal Alignment & Balanced Scorecard:
In the interest of better alignment, a need was felt to re-look at a few
organizational processes and systems, as for instance, the performance
management and appraisal system at TCS. A Teach-Train-Transfer workshop
on Goal alignment was conducted, with help from expert OD consultants to
build the context, to think through goal setting at TCS with a systems
perspective to goal alignment & to explore means of institutionalizing goal-
oriented performance management within the organization.

The workshop further introduced the concept of the Personal Score Card, and
clearly outlined what would define goals, outputs, performance management,
Economic Value adds & the ways and means for facilitating goal alignment.

The Balanced Scorecard approach was proposed, introducing corporate
goals, which touched upon the following:

    Voice of the Shareholder - Financial Goals e.g. Wealth creation
    Vector of Technology - Technology Goals e.g. Quality, Cost,
     Delivery dimensions
    Voice of the Customer - Customer/ Market Goals e.g. Customer
     Satisfaction
    Voice of the Employee - Learning & Development e.g. Employee
     Satisfaction

Further the relevance of the corporate goal template at the relationship level
was explored and the subsequent cascading to individual level (Organizational
to Relationship to Personal Scorecard). Goal specification frameworks, derived
from the key performance parameters of the unit were chalked out. While the
goal was treated as a virtual entity, the measurement was extended to
deliverables on a day-to-day basis (outputs). Further, workflow reviews were
done with the objective of deploying an on-line regular review process and
system to track individual performance against stated goals.

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The linkage with incentives and value add drivers, was also thought through to
determine the reward framework, based on published results as against goals.
Hereby, strategic objectives and measures agreed upon by the function/
geography/ delivery and relationship heads would be cascaded to subsequent
roles as appropriate, ensuring performance in alignment with the larger vision
of the organization.

Identification of talent for higher responsibility was also seen as a key focus
area, highlighting the need to have a focused Career Planning and Mentoring
process. The process of role alignment was further thought through, as well as
the need for assessment and coaching for role transitions. Towards employee
satisfaction and towards ensuring sustained availability of sufficient
managerial and leadership talent, the need to create succession plans at all levels
and to track and reward high fliers was brought out.

This further, lead to the formulation of career paths in TCS global services,
consulting and products, supported by HR processes, tools and support staff.
This structure was designed to enable a fair degree of flexibility in rotating at
appropriate levels, which would provide avenues for individual growth.

Besides, there was an exercise to bring out new role definitions in Human
Resources (HR), focusing on alignment, energizing and task facilitation through
HR. Business leaders dialogued to evolve the mission and expectations and
further, to design enablers for continuous change, team work, and individual
growth.


PROPEL - The Intervention: Culture Building at TCS


PROPEL was introduced as a revolutionary intervention with the dual
objectives of facilitating the exchange of ideas and helping in immediate
problem solving, while also encouraging bonding and self-development among
and within teams.

As the organization and its relationships grew, it brought its own challenges,
whereas change remained a constant. PROPEL was introduced as a platform
and a tool to help bring about this change, in consonance with the TCS belief of
"Let us make it a joy for all our stakeholders". Promoting continuous
improvement at a cross-functional level was one of the envisaged objectives.
Change management was enabled through alignment with growth strategy; by
creating platforms for dialogue on the current and emerging experience of the
organization.

PROPEL STANDS FOR:

Professional Excellence:
How do I become a role model and a friend?
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Role Enhancement:
How do I take up new responsibilities and set new directions?

Owning TCS Culture:
How do I influence culture?
Personal Growth:
How do I walk the the journey of self discovery and growth?

Employee Involvement:
How do I enable continuous improvement?
Learning:
How do I enable Team learning?


PROPEL has helped the organization build a culture of collaboration,
creativity and also networks of relationships through its two modes:

1. Confluences: Listening to the voice of the employee in a team
scenario, by creating a platform for open sharing of thoughts on a relevant
theme. This is achieved through a balance of fun, introspection and interaction,
while evoking commitment to self- development.
2. Camps: Platform for problem solving, focus on the Quality, Cost
and Delivery measures of throughput resulting in transfer and
adoption of best practices within and amongst relationships in the organization.


Following is the case of a large relationship which espoused PROPEL
interventions to bring about effective quantifiable results in the interest of
relationship robustness, market agility and a fine balance in the culture
perspective.

The case of a large relationship at TCS:

Team Alignment through PROPEL framework & Spiral Dynamics


Team alignment was a PROPEL application initiated for members of this large
relationship, to reflect on its own state, to build a coherent statement of current
realities and to channel potent restlessness and dissatisfactions within the
relationship, into a convergent blueprint of responsiveness and new levels of
maturity. It looked at redefining desirable role behaviors, and hence conveyed
responsibility for movement at the collective as well as individual levels, for the
team.

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This was brought about through the following stages:

1. Initiation: The Spiral dynamics framework was used to map the
relationship in terms of its evolution. Tools were administered to a group of
Project Managers to identify the gaps between where the team is (current state)
and where it should be (desired state) and the steps to be taken to bridge this
gap.

Spiral Dynamics posits that the evolution of human consciousness can best be
represented by a dynamic, upward spiraling structure that charts our evolving
thinking systems as they arc higher and higher through levels of increasing
complexity. The spiral in spiral dynamics contains the blueprints of patterns for
sequential development of cultures. The spiral's first tier is a set of six memes
(beige, purple, red, blue, orange and green) characterized by existence or
subsistence, or the "survival-level" concerns. Second tier of yellow and
turquoise works to create healthy forms of all the first tier systems, in the
context of an information-rich, highly mobile global community.


2. Awareness sessions & Workshops: Overviews on Spiral Dynamics and its
application to achieve team alignment was shared with the team. In Jan 2005, a
workshop was organized with the team to discuss the findings based on the
analysis of data. A few key observations were:

• Differential perceptions of current reality by leadership and the
  rest of the team

• Need to make a few critical role shifts

• Need to align the broad directions and future steps


This workshop allowed the team to clearly discuss their perceptions of the team's
current situation and the following observations were agreed upon:

• Need to negotiate expectations and sufficiently understand
  interdependence

• Reluctance to confront and bring issues to a head

• Stress

• Results and task oriented disposition

These results were then compared to the leadership's expectations from the
team. Greater the convergence and alignment between leadership and the team
on the current state and the directions for movement, greater the power of
focused deployment of energies, and empowered, autonomous decisions and
actions within the team. Gaps were identified, developmental areas were

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prioritized and broken down and categories identified to pinpoint where the
greatest impact from team development efforts will be achieved.

3. Gap analysis: This was done to enhance understanding of the
different roles for each job position, identify the ones suitable for the different
job positions and come up with action items to address the themes agreed upon.
As a next step, each member had to identify the gaps based on the role selected.

For e.g.: The below roles were identified for a team member job position:
• Self-developer
• Team Player
• Craftsperson
The roles would vary depending on the location as well. Onsite
members would have roles that require higher customer interaction.

4. Implementing improvement plan: Follow-up meetings were held at
6-8 week intervals to monitor progress made as well as to identify areas of
improvement using Deming's Plan-Do-Check-Act (PDCA) cycle. The Team
Alignment tool was created in September 2005 with an aim of cascading the
team alignment concept to the team member level in a shorter span of time.

5. Next steps: The team now has a 30, 60, 90 day implementation plan
for the same. Incorporation of the three high priority action items arising from
the team alignment exercise, as goals in the team was contemplated.
Additionally a PROPEL camp was planned, to agree upon the steps to be taken
to close the action items for each of the roles.


Value Cards at the Large Relationship

Value card for the relationship was a fallout of the analysis of tensions existing
in the four dimensions as represented by Voice of Customer, Strategy,
Employee and Technology. A tool called "Value Card" was used to analyze the
problems faced by the relationship in relation to these tensions and to arrive at
workable solutions to the identified problems, within designated timeframes.
The Value Card helped to effectively capture and track this through the
following steps:

1. The situation summary was charted out
2. Improvement goals, action plans and owners of each plan were identified
3. Success measures were identified against the dimensions of Valuing,
Strategizing, Improving, for each actionable, along with timeframe for closure
4. Impact was analyzed in terms of short term and long-term actions.

Value Card deployment has substantially helped the relationship to retain its
"Account of Choice" status.
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Improvements through Measurements/ Initiatives: Excellence
at the large relationship (AEP)

The Account excellence program ( AEP ) at the large relationship was modeled
on the lines of the Malcolm Baldridge National Quality Award/ Tata Business
Excellence Model (TBEM) , which touches upon 7 key categories viz leadership,
Strategic Planning, Customer and market focus, Measurement, Analysis and
Knowledge Management, HR Focus, Process Management and Business
Results. This was aimed to help the relationship to evolve towards meeting
changing business needs with agility.

The AEP was initiated as a change driver & umbrella for business excellence
initiatives in the relationship to facilitate creation and balancing of value to all
stakeholders - employee, shareholder, customer, supplier and society.


The AEP has also engendered a value creation framework encompassing
quality, service, cost and cycle time through setting benchmarks in the
following:

•    Meeting all customer requirements

•    Minimizing processes variances

•    Reduction in Cost Of Quality

•    Elimination of waste

•    Enhanced Customer Support

•    Efficient Product Service

•    Flexibility to meet Customer demands & Market changes

•    Rework Reduction

•    Continuous Process Improvements

•    On-time delivery of major programs


 A few gaps were identified in the area of HR Focus and thereby, a series of HR
initiatives were rolled out across the relationship, a few of which are
summarized below:

1. Account Excellence Plan- Initiative on the lines of TBEM. Scoring is done under
each of the 7 categories and the score shared across the relationship, to identify
gaps and action on these.


                                                                                       74
2. Nakshaktra Award- This is a Reward and Recognition initiative within the
relationship. Nakshatra is awarded to encourage star performers for each
month within each Business Unit of the relationship. The unique feature of
this initiative is that even team members can nominate their peers.

 3. In Touch- Is an interaction / mentorship initiative with the head of the
relationship, wherein a certain timeframe is decided upon, during which any
employee can walk in to meet the head and discuss out any problems/
suggestions for improvement in the relationship.

4. Fun@ Relationship level- This was initiated to bring in a spirit of team
camaraderie and to act as a stress buster. There are champions within each unit
who drive these fun activities in the relationship.

5. Toast Master Club/Lets Talk- The main objective is to enhance
personality/communication ability of associates in the relationship and to help
them gain confidence through sessions by certified facilitators.

6. Open House/ Town halls- The objective was to encourage strategic
communication, and to discuss the larger vision and achievements at
relationship level with all employees across the Business Units. This also serves
as a platform for recognizing good performers and celebrating milestone
achievements.

7. Associate Satisfaction Survey (Darpan)- To gain an insight into the strengths
and weaknesses in the relationship and identify areas for improvement and next
steps through PROPEL camps.

8. Walk The Talk- A senior associate within the relationship takes any new
joinee to the relationship, on a tour of the facility. The aim of this initiative is to
make the new entrant feel valued. This is followed by a simple quiz to check the
effectiveness of this initiative.


Darpan - Reflect and Improve

With aggressive expansion and dispersion of ever-growing associate strength
in the relationship, communication or the lack of it, had emerged as one of the
biggest bottlenecks in employee motivation and managerial decision-making. In
this context, an associate satisfaction survey at relationship level christened
Darpan, was initiated, with the objective to "Reflect and Improve "at the
relationship level through a better understanding of the explicit and implicit
expectations of associates.

A Questionnaire was used to collect the preliminary data, as a structured
mechanism to capture associate feedback across 5 categories: Career & Job,
Communication, Culture & Pride, Leadership and Supervisor.

                                                                                          75
 The Survey comprised 20 questions related to leadership, communication,
culture and pride, career, supervisor, work environment, competency building,
work-life balance etc. Interestingly, the maximum number of questions revolved
around the single most important entity - the "Supervisor". This was in
consonance with several studies which reveal this as the pivotal factor to
associate satisfaction and aspiration.



Analysis of Darpan Results:

Details such as experience within the relationship, designation, gender and
Business Unit (BU) were taken as the basis for analysis of survey results, to
arrive at focused findings. Analysis was done for the overall relationship, as
well as individual Business Units within the relationship. The results were then
shared with the entire team and actionables evolved through a series of camps
and confluences.



The Cultural Perspective: Outcomes from Darpan

There was a distinct increase in the Associate Satisfaction Index (ASI) in Darpan
06, which, interestingly, corresponded to an increase in Customer Satisfaction
Index (CSI) as well.

In the recent Darpan results, the following findings have emerged:

• 91 % of the team felt proud of being part of the relationship.
• 90% of the team felt that they are now able to see the big picture
  and know how their contributions add value to the customers.
• 90% of the team felt that their supervisors are approachable for any
  kind of guidance and enable them to do their job better.

Team building activities like cricket match, bowling, team lunches/dinners
have been introduced and the team members now feel valued and satisfied. As
a result, the relationship attrition is today, far lower than TCS Average.

A transparent culture was consciously encouraged in the relationship and
strategic communication was institutionalized through initiatives such as In
Touch and periodic Town halls. In November 2005, two PROPEL camps were
organized with the help of branch HR to address some of the areas of
improvement for the relationship that figured in the Darpan results.

The next steps have been identified and shared with all the stakeholders.
Account wide initiatives have been introduced and owners and co-owners
                                                                                76
identified for the same.

Increased communication & sharing between Business Units was factored in,
within the relationship through introduction of a Newsletter and an internal
portal called "Parimas".

There is an increased awareness in the relationship with regard to
different roles and what are the gaps with respect to desired roles.


Further, there is heightened focus on Corporate Social Responsibility (CSR) and
a culture of Fun at Work to enhance team spirit and camaraderie. The team is
now better aligned, committed and focused on agreed objectives.


Improved teamwork has resulted in greater project efficiencies, less hassle and
improvement in cost, schedule, quality et al resulting in higher Customer
Satisfaction.




                                                                               77
     CONCLUSION: TCS -THE PARADIGM SHIFT

POST OD SCENARIO:

Organizational Development interventions have been instrumental in
terms of enhancing value to the customer & employee at Tata
Consultancy Services.

PROPEL as an organization wide intervention, encouraged sharing of
ownership and empowerment to change, as also the sharing of success stories
and best practices across the organization. Valuing of employees was
institutionalized through establishing processes that enable and
enhance individual performance, and lead to empowered project teams.

Issue based mentoring was facilitated, with camps and confluences as enabling
frameworks. While confluences invested in personal transformation for the
employee, camps invested in improving the workspace.

Through Scenario building, a collective transformation of dreams and concerns
into response capabilities was envisaged. Continuous scanning of environment
for opportunities and threats was proactively looked at, to collectively map the
business domain of TCS.

Goal alignment through cascading of Balanced Score Card concept could be
achieved organization wide. There was continuous investment in learning, and
an active sharing of knowledge with the aim to convert learning into action.
Further, the focus shifted to adding knowledge through delighting every
customer.

The earlier tendency of self-sacrificing hard work was replaced by a shift of focus
to teamwork and valuing of the employee. The OD interventions
at TCS helped push self imposed boundaries and limitations through
challenging organizational boundaries and limitations constantly.

 In a nutshell, the OD interventions at TCS have helped build a culture of
fostering systems thinking & creating forums for dialogue, while encouraging
leadership at all levels. For the organization at large, OD helped to reiterate the
merits of valuing enquiry, expressing differences, and constantly generating new
knowledge.




                                                                                   78
        COMPANY: HCL TECHNOLOGIES LIMITED - BPO SERVICES

BRIEF BACKGROUND OF THE COMPANY:


HCL Technologies Limited - BPO Services (or "HCL BPO") is a division of
HCL Technologies Limited, a Global Technology and IT enterprise. HCL is
a 30-year-old enterprise, with US $ 4.1 Billion revenues and 47,000
professionals operating out of 17 countries.

HCL Technologies Limited - BPO Services is one of the early players in
Business Process Outsourcing in the world, having over 12,800
professionals operating out of India and Northern Ireland. HCL
Technologies Limited - BPO Services focus verticals include Telecom,
Retail, Banking/Financial Services, Insurance, Hi-Tech and Manufacturing.

This apart, the company services various areas of operations that include
Supply Chain Management, Order to Cash, Finance and Accounting
Services, Knowledge & Legal Services and Technical Support Services. HCL
BPO follows industry's best practices and metric based Quality norms for
all its processes.

With stringent internal metrics and audit systems, its Quality certifications
include COPC 2000 (CSP Release 4.0), ISO 9001:2000, OHSAS 18001 and ISO
14001:2004 for environmental management; Security Systems certification -
BS 7799, ISO 27001 and audit certification in SAS 70.

HCL Technologies Ltd. - BPO Services is the first Indian and third company
in the world to be COPC certified for Collections Process.


CHALLENGE:
HCL BPO was hassled with the high attrition rates in the BPO industry of
about 40% annually in 2006-07 and the low availability of talent pool with
skills for direct employment without prior training.
HCL BPO could foresee the raise in expenditure on recruitment, training &
development, depriving the BPO industry of its low-cost benefit. Managing
attrition became a strategic priority for HCL BPO.
HCL wanted to create an environment of employee engagement by offering
tangible rewards, quality of work, future growth opportunities, inspiration
values, work-life balance and improved workforce policies.


SOLUTION:

HCL BPO hired the services of external professional OD consultant - QAI
and entered into a service agreement to achieve the desired results.


ORGANIZATIONAL EXCELLENCE USING PEOPLE CMM®:

QAI identified People CMM® as a global and well-structured approach for
                                                                             79
assessing and improving the current people practices. People CMM® was
selected as a business strategy to help HCL BPO retain people and become
an employer of choice.

The organization recognized the potential of the model, and appreciated
the fact that the implementation of this model would augment and enhance
the existing people practices and procedures.

HCL BPO was already reasonably mature in certain workforce practices
(such as Communication, Staffing, Performance Management, Training and
Development) before the People CMM® journey started. But in light of the
best practices in the model, all their people processes and practices were
reviewed, refined and improved.



ABOUT PEOPLE CAPABILITY MATURITY MODEL: PCMM®:

The People Capability Maturity Model® (People CMM®) is a maturity
framework developed at the Software Engineering Institute (SEI) that
guides organizations in improving their ability to attract, develop,
motivate, organize, and retain talent.

Based on the best current practices in fields such as human resources,
knowledge management, and organizational development, the People CMM
guides organizations in improving their processes for managing and
developing their workforces.

The People CMM helps organizations characterize the maturity of their
workforce practices, establish a program of continuous workforce
development, set priorities for improvement actions, integrate workforce
development with process improvement, and establish a culture of
excellence.

It provides an evolutionary 5-level improvement path from ad hoc,
inconsistently performed people (or human resources) practices, to a
mature, disciplined development of the knowledge, skills, and motivation
of the workforce. The practices included in the People CMM® have been
chosen from past global experience because they have significant impact on
individual, team, unit and organizational performance.


Maturity Levels in the People CMM:

A maturity level is an evolutionary plateau at which one of more domains
of the organization's processes have been transformed to achieve a new
level of organizational capability. Thus, an organization achieves a new
level of maturity when a system of practices has been established or
transformed to provide capabilities and results the organization did not
have at the previous level.


 The method of transformation is different at each level, and requires
capabilities established at earlier levels. Consequently, each maturity level
provides a foundation of practices on which practices at subsequent
                                                                                80
maturity levels can be built.



5 maturity levels are:


The Initial Level

Organizations at the Initial Level of maturity usually have difficulty retaining
talented individuals.

Organizations at the Initial Level typically exhibit four characteristics:

 Inconsistency in performing practices
 Displacement of responsibility
 Ritualistic practices
 An emotionally detached workforce

The Managed Level

The workforce practices implemented at the Managed Level focus on activities at
the unit level.

The first step toward improving the capability of the workforce is to get managers
to take workforce activities as high-priority responsibilities of their job.

The Defined Level

Organizations at the Managed Level find that, although they are performing
basic workforce practices, there is inconsistency in how these practices are
performed across units and little synergy across the organization.

By defining process abilities as a component of a workforce competency, the
People CMM becomes linked with the process frameworks established in
other CMMs and with other process-based methods, such as business
process reengineering.

To define the process abilities incorporated in each workforce competency,
the organization defines the competency-based processes that an individual
in each workforce competency would be expected to perform in
accomplishing his or her committed work.

An organization at the Defined Level has established an organizational
framework for developing its workforce.

The Predictable Level

At the Predictable Level, the organization manages and exploits the
capability created by its framework of workforce competencies.
                                                                                   81
    The Optimizing Level

    At the Optimizing Level, the entire organization is focused on continual
    improvement. These improvements are made to the capability of
    individuals and workgroups, to the performance of competency -based
    processes, and to workforce practices and activities.


    PEOPLE CMM® PROCESS AREAS:

    Each maturity level of the People CMM®, with the exception of the Initial
    Level, consists of three to seven process areas. Each process area (PA)
    identifies a cluster of related practices that, when performed collectively,
    achieve a set of goals considered important for enhancing workforce
    capability. The process areas at each level of maturity create an inter-linked
    system of processes that transform the organization's capability for
    managing its workforce.

    Key Process Areas refer to the particular tasks and activities, which must
    be completed in order for an organization to gain maturity and progress
    towards optimizing their training initiatives.

    The following matrix identifies the appropriate Key Process Areas
    necessary to address each of the four themes of the P-CMM, and allow the
    organization to mature.

Maturity
                                                   Process Categories
Levels
                 THEME 1:Developing     THEME 2:Building        THEME 3:Motivating and   THEME 4:Shaping the
                    Capabilities        Teams and Culture        managing performance        workforce
                      Coaching
MATURITY LEVEL
                                                            Continuous Workforce Innovation
  5:Optimizing   Personal Competency
                    Development
                                                                     Organizational
                                                                 Performance Alignment          Organizational
MATURITY LEVEL
                      Mentoring            Team Building                                         Competency
  4:Managed
                                                                                                 Management
                                                                  Team-Based Practices
                    Competency
                    Development                                    Competency-Based
MATURITY LEVEL                                                        Practices
                                        Participatory Culture                                 Workforce Planning
   3:Defined
                 Knowledge and Skills
                                                                  Career Development
                      Analysis
                                                                     Compensation
                       Training
MATURITY LEVEL
                                          Communication         Performance Management             Staffing
  2:Repeatable
                   Communication
                                                                   Work Environment
MATURITY LEVEL
   1:Initial
                                                                                                       82
PEOPLE CMM® BENEFITS:

The strategic objectives of the People CMM® :

1. Improve the capability of the organizations by increasing the
capability of the workforce.
2. Ensure that process capability is an attribute of the organization rather
than of few individuals.
3. Align the motivation of individuals with that of the organization.
4. Retain human assets (i.e. people with critical knowledge and skills)
within the organization.

The People CMM® helps organization to:
1. Characterize the maturity of their human resource practices.
2. Guide a program of continuous human resource management.
3. Focus on improving individual and team capabilities.
4. Integrate people process improvement with business process
improvement.
5. Establish a culture of performance and professional excellence.
6. Align human resource strategies with business goals.


THE PCMM APPROACH AT HCL:

The core team of experts at HCL BPO consisted of Mr. A.P. Rao, Senior
Vice President - HR, Mr. R. Rangarajan, Senior Vice President and Mr.
Prahlad Punia, Centre Head along with QAI's consultants Ajay Batra &
Rajesh Naik.

A dedicated HR, Quality and Operations workgroup was constituted to
drive this initiative. A People CMM® workgroup was formed with defined
objectives, roadmap, and a competency based team structure.

Domain experts for each process area were selected as the process leader
based on the key functional competencies required. The process leaders
were responsible for creation & documentation of the policies and
procedures and also for implementation of the people practices.

At the beginning of the People CMM® journey the Center Head assigned a
specific weightage in the KRAs for People CMM® implementation for
various roles. This was done in order to ensure intent -full compliance to
the model. The KRAs of all employees in the center were based on the
Balance Scorecard approach touching upon all the four quadrants -
learning & growth, internal business process, customer and financial
perspective.




                                                                               83
The People CMM® journey was initiated with the development of the
Competency Framework, which is the basis for most people practices. The
wholly in-house developed competency framework comprised of
identifying the Functional (including processbased) and Behavioural
competencies for each job role in each function. This was developed with
the joint efforts of the Competency Leader and the Competency Team along
with all the Function Heads from the Center as well as the Corporate. The
framework details the definition of each competency and the various
proficiency levels. The threshold level for each job role was also defined.
The competency framework is being used during recruitment, training &
development, performance management, career development, micro
succession planning and strategic workforce planning.

Table - P, a methodology from HCL's COPC implementation was
leveraged to identify the key people centric metrics and their
collection/analysis. This in turn helped HCL in monitoring the
necessary measurement and monitoring activities that are necessary
to determine the status and trends related to the people practices
performed.

HCL also introduced Competency Based Career Development
Discussions with the aim of providing platform and guidance to
employees for achieving their career aspirations. These discussions
helped the organization to evaluate the competencies available in the
internal talent pool and develop competencies required for the
current & future business. At an individual level the practice helped
them to visualize the career path available in HCL. An emplo yee
could not only grow internally in HCL BPO but could also choose
career in other divisions of HCL Technologies.

HCL enhanced their recruitment, transition and training practices to
specifically focus on competency -based selection and recruitment
which helped them in improving the quality of new hires.

Competency Communities for Best practice sharing were formed at
various levels (e.g. Commandoes, Achievers, Hi - Flyers) and
centralized knowledge repositories were available for each of these
forums. HCL made use of the company's Intranet to provide easy
access of information on areas such as KRA's, Competency Levels,
and Career Progression path. This created transparency in the system
and left a powerful positive impact on the employees.



OBJECTIVES ACHIEVED :

People CMM® helped the organization meet the intent of the following
workforce related Objectives:




                                                                         84
 Developing individual capability
 Establishing development programs to help individuals gain capability in
  the workforce competencies most relevant to their assignment and career
  objectives.
 Have formal career discussions with employees and identify development
  opportunities.

 Motivating and Managing Performance
 Adapting workforce practices to motivate development of additional
capability in one or more workforce competencies.
 Establishing a set of graduated career opportunities designed to motivate
and reward people for developing additional capability in their chosen
workforce competencies.

  Building workgroups and culture
 Developing a participatory culture by increasing the availability of
  information for making decisions and involving the workforce in decisions
  that affect their work.

 Create centralized information repositories for easy access of information.
 Creating competency communities to share best practices.

 Shaping the Workforce
 Identifying workforce competencies required to achieve the strategic
  business objectives.
 Developing a strategic workforce plan by identifying the level of capability
needed in each workforce competency.
 Planning for the workforce activities required to meet the capability
objectives within each competency.


IMPLEMENTATION & RESULT:

People CMM® was implemented over a period of 15 months and the final
Maturity Level 3 Appraisal was conducted from 20th - 29th June '07 by a 9
member appraisal team using SCAMPI with People CMM® - Class A method.
HCL BPO became the world's first BPO organization to be successfully
appraised at Maturity Level 3 of People CMM®® v2.0*



BENEFITS ACROSS THE COMPANY:

1. People process efficiency:

Drop in attrition from 17% to 11% per quarter. HCL BPO witnessed the
lowest monthly attrition percentage of 1.74% in the history of HCL
Technologies.


                                                                                85
2. Employee benefits:

Increase in employee satisfaction rate from 70.56% to 87% post PCMM level 3
implementation. Availibity of formal career development program & competency
development opportunities.


3. Delivery optimization:

Training throughput increased from 68% to 84%. Process level efficiency increased
from 75% to 91% which is due to multiple reasons including new certifications,
improvement projects, PCMM etc.

4. Business impact:

Revenue increased from 15.2 million to 21.1 million with an headcount increase from
1354 to 1442.



FUTURE PLANS:

After witnessing the benefits from People CMM® implementation and being
successfully appraised at Maturity Level 3, HCL BPO Services aims to
achieve Level 5 of the model and institutionalize People CMM® across all its
centers.


BRIEF ON THE CONSULTANT:


QAI is a leading global consulting organization addressing 'Operational
Excellence' in IT, BPO and Knowledge intensive service organizations.
Operational Excellence is achieved when organizations do a great job of
Project Management, Quality Management, Process Man agement, Human
Capital Management, Innovation Management, and Service Management.

QAI facilitates the achievement of operational excellence. QAI's regional
bases across the globe in the US, Singapore, China, Malaysia, UK and India
helps to innovatively distribute and manage engagements across multiple
locations.

QAI facilitates enhanced competitiveness through multi-faceted interventions
leading to Business Improvement through Consulting, Training, People,
Process &l Assessments, Benchmarking, Certification, Conferences, Resource
provisioning through Quality Outsourcing and e-Learning.

QAI clients include IBM, Accenture, Wipro, Prudential, Genpact, American
Express, Sony, Tata Motors and 200 others across 30 countries.


                                                                                    86
Moreover, QAI believes in contributing to the development of 'Nations of
Software Excellence' by working closely with government bodies, research
institutions, defense organizations, software parks, industry associations and
World Bank funded projects in several countries.



CENTER OF EXCELLENCE:

QAI and Dr. Bill Curtis have established a "Global Center of Excellence for
Workforce Strategy and Development". The Center of Excellence, leveraging
the widely acclaimed People CMM® framework, from Carnegie Mellon
University, USA addresses the area of workforce strategy and development.

The Workforce Strategy and Development (WSD) Global Center of
Excellence has formed a strategic partnership with the Indian School of
Business' Centre for IT and the Networked Economy (CITNE) for cross -
border research, innovation and publications.

The coming together of three leading entities is designed to leverage the
research orientation of CITNE, the real world experiences and deep expertise
and process capabilities of QAI, and the thought leadership of Bill Curtis.




                                                                            87
                             OBSERVATIONS

1. In the fast growing competitive global corporate environment, it is
imperative for an organization to keep up the pace of growth with
multinationals. Today’s epoch is defined by movement a nd exchange of
technology, processes and even human capital. Unfortunately, the
capability to organize effectively cannot be imported in a similar manner
and therefore, it becomes challenging to develop an effective organization
and create sustainability.
This is possible through OD efforts which are aimed at creating a
behaviorally healthy organization that will naturally anticipate and
prevent (or quickly solve) problems.

Organization Development (OD) interventions help organizations to
achieve and maintain their growth and thereby survive in this competitive
era.


2. The objectives for implementation of OD interventions in the Indian
Companies mentioned above are summarized as follows;
a. Quality improvement (product & manufacturing process), developme nt
of effective internal leadership, sound culture & relations within the
organization through Grid OD intervention.
b. Alignment of employee performance to organizational goals through
the Vision & Mission approach, Management by Results, accelerating
growth & excellence through innovation & TQM.

c. Improving the quality of internal processes & management systems &
upgradation of the present system through various International
Standards.
d. Facilitation of value creation to all stakeholders, futuristic change
management, culture & relationship building in times of expansion ,
employee motivation, business excellence, structural alignment with
customer, business & market requirements & goal-performance alignment
through series of interventions like Scenario building workshops,
Balanced scorecard approach, PROPEL, Account excellence program &
Associate satisfaction survey.

e. Managing high attrition, attracting skilled talent pool, employee
engagement & improved workforce policies through the intervention of
People CMM.

3. The emerging trends in the field of OD interventions among Indian
companies are as follows;
a. Systems development interventions (like incorporating ERP throughout
the organization’s processes & functions, Business Process Re-
engineering) are dominating over Behavioral interventions.


b. Change management interventions have become very important due to
                                                                    88
the impact of increasing competition & macro forces (like changes in
technology, mergers & acquisitions, partnerships & alliances, cha nges in
demographics, increased workforce diversity) in order to manage & adapt
the changes in internal & external environment effectively.
c. Interventions that help the companies to expand their operations
internationally are also on a rise.
d. Quality improvement interventions like TQM & Quality Circles to improve
the quality of manufacturing processes & products, facilitate team building &
problem solving have sustained their importance.
e. Interventions to build strong organization culture, relations & develop
effective leadership have retained their importance.
f. Human Resource Audit & Individual & Organizational Assessment centre to
gain insight into the efficiency of human resources & HR related activities in
organizations are gaining momentum.
g. Increased use & importance of HR interventions like Team building
interventions, Performance coaching workshops, Visioning and value
clarification exercises, Career Planning and Succession exercise, Role clarity and
Role negotiation exercises, Survey Feedback & Cultural change through new
performance management systems.
h. Interventions like executive coaching & mentoring, employee engagement
using social networking & interventions leading to the development & growth of
learning organization are becoming the new order of the day.




                                                                                 89
             C. RECOMMENDATIONS & CONCLUSION


                       RECOMMENDATIONS

1. An effective, complete communication & information sharing procedure
throughout the organization must precede the implementation of OD
interventions to educate the employees regarding such initiatives.
2. Specific OD interventions need to be conceptualized & implemented in
times of economic downturn & recession to protect the organization from
employee turnover, declining profits & demand from customers.
3. A separate team of experts must be identified who will be responsible
for planning & implementation of various OD activities within the
organization.
4. As more & more learning organizations are emerging, knowledge
sharing interventions must be designed to expand the knowledge horizon
of employees with respect to their roles & to keep them updated with the
latest happening in their respective functional area as well as the best
practices around the world.




                                                                           90
                                CONCLUSION


OD is a distinct field of study that falls in the domain of organizational behaviour
& focuses on management of change & development of human resources in
organizations. OD interventions include restructuring the organizations,
adopting a new technology, redeploying human resources & re designing roles &
tasks.

The present day scenario is that O.D. has emerged as a specialized function in the
management profession. About two decades ago, when O.D. was introduced in
India, there were only one or two organizations practicing the concept. Today,
one out of ten business organizations has an O.D. department or facilitator, or at
least has institutionalized O.D. mechanisms. Trained O.D. consultants offering
their services for initiating and implementing the O.D. effort are also now
available. Even the voluntary, non-profit and public sector organizations have
realized the importance of O.D. for their survival and growth. While the basic
concepts and mechanisms have been studied in the west, they have been altered
and developed to suit the largely relationship driven culture of Indian
organizations leading to very favourable changes both structurally and culturally
in many of them.

However, many Indian firms still refrain from adopting OD practices owing to
the lack of awareness & resistance to change. Nevertheless the need for OD is
growing primarily due to highly competitive environment.

Thus, it can be concluded that OD practices are driven by organizational
challenges brought on by several macro forces. The challenges created by
these forces indicate that OD will be called on to implement knowledge
management systems, create cultures for constant learning, design flexible
organizational structures, & facilitate change in organizations.

Propelled by technology advances, today's macro forces will spawn a new
way of doing business—whole systems approaches that blend business
skills and human skills, create innumerable opportunities for partnerships
and alliances, and profit from knowledge management and le arning.

Managing this new arena will be challenging. Organizations will rely on
OD to solve problems, start up new relationships and processes, and
sustain cultures that foster productivity. Simply put, OD will become a
necessity for organizations seeking competitive edge in our global,
constantly changing economy.




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                            D. BIBLIOGRAPHY




Sr.    Name of the Author    (Year)       “Title of the book”        Name of
NO                                                                   Publisher
1.    NILANJAN               2006     MANAGING CHANGE IN           ASOKE K.
      SENGUPTA &                      ORGANIZATIONS                GHOSH, PHI
      MOUSUMI                                                      LEARNING
      BHATTACHARYA                                                 PVT LTD



2. INTERNET WEBSITES:


http://alumnus.caltech.edu/~rouda/T3_OD.html

http://eravandi.blogspot.com/2009/12/organization-development.html

http://managementhelp.org/org_chng/od-field/OD_defn.htm

http://www.enotes.com/management-encyclopedia/organizational-development

http://www.chrmglobal.com/Replies/1339/1/OD-Intervention.html

http://managementhelp.org/org_chng/org_chng.htm

http://www.citehr.com/16421-what-od-intervention-how-hr-go.html

http://en.wikipedia.org/wiki/Organization_development

http://findarticles.com/p/articles/mi_qa5427/is_200004/ai_n21465508/

http://www.mozenter.org/trends11.pdf

http://findarticles.com/p/articles/mi_qa5427/is_200207/ai_n21313518/pg_4/?tag=co
ntent;col1

http://www.lntecc.com/homepage/profile.htm

http://en.wikipedia.org/wiki/Larsen_&_Toubro

http://www.gridinternational.com/

http://findarticles.com/p/articles/mi_qa5427/is_200010/ai_n21460684/

                                                                         92
http://www.marico.com/abt_marico/index.html

http://www.commonfloor.com/orbit-corporation-
ltd/builder/f89cd45f18300a38f31a34bcca24b50d

http://www.crmz.com/Report/ReportPreview.asp?BusinessId=9086796

http://en.wikipedia.org/wiki/International_standard

http://www.iso.org/iso/about/discover-iso_what-standards-do.htm

http://www.praxiom.com/iso-9001.htm

http://www.iso.org/iso/iso_catalogue/catalogue_tc/catalogue_detail.htm?csnumber
=46486

http://www.pjr.com/downloads/Transition-Plan.pdf

http://en.wikipedia.org/wiki/ISO_9000

http://www.isoqar.com/iso9001/qualintro.htm

http://www.isoqar.com/uk/standards/iso14001/ISO-14001-About.aspx

http://www.iso.org/iso/catalogue_detail?csnumber=31807

http://www.iso14000-iso14001-environmental-management.com/iso14001.htm

http://www.isoqar.com/uk/standards/iso27001/ISO-27001-About.aspx

http://www.27000.org/iso-27001.htm

http://www.isoqar.com/uk/standards/ohsas18001/OHSAS-18001-About.aspx

http://www.ohsas-18001-occupational-health-and-safety.com/
http://www.sa-intl.org/

http://www.mallenbaker.net/csr/CSRfiles/SA8000.html

http://www.bsigroup.com/en/Assessment-and-certification-services/management-
systems/Standards-and-Schemes/SA-8000/

http://www.bsdglobal.com/tools/systems_sa.asp

http://www.cbi.eu/marketinfo/cbi/docs/international_management_system_sa8000_
on_social_accountability


                                                                         93
http://en.wikipedia.org/wiki/Tata_Consultancy_Services

http://www.tcs.com/about/Pages/default.aspx

http://sumedhas.org/new3cont/The%20OD%20Journey.pdf

http://www.qaiglobal.com/downloads/HCL_PCMM_case_study.pdf

http://www.bpoindia.org/research/pcmm-model.shtml




                                                             94
                                E. APPENDIX


                            QUESTIONNAIRE

1. What was the main problem or issue at hand that lead the company to decide
that the OD intervention could solve the problem? Please support with instances?




2. Which OD interventions are already implemented by the Company to solve the
problems? Please specify the objectives of implementation?




3. From the following interventions which are the present & ongoing
interventions practiced by the Company?

a. Mission & Vision statement creation & analysis
b. Strategic Planning
c. Rewards & Recognition
d. Change Management
e. Effective Leadership
f. Team Building
g. Facilitation
h. Team Development and Group Processes Interventions
i. Individual / Interpersonal Process
h. Any Other____________________________________________________________


4. What types of OD interventions do you think will be needed to solve the types
of issues facing the Company in the next 3 yrs?




5. Which are the new emerging trends in the field of OD interventions with
respect to your company (w.r.to the difference between OD interventions of the
past & that of today & types of interventions)?


                                                                                 95
6. From the following, which of the macro forces do you think have lead to
emergence of new trends in the field of OD interventions with respect to your
company?
a. changes in technology
b. constant change
c. partnerships & alliances
d. changes in work structure
e. increased diversity in workforce
f. changes in demographics
g. mergers & acquisition
h. globalization
i. Any other factor______________________________________________________


7. What were the obstacles/ hurdles faced during the implementation of OD
interventions till date?




8. Classify the rate of effectiveness/success in the implementation of OD
interventions w.r.to achievement of desired objectives in percentage given below:
a. < 50%
b. 51%-60%
c. 61%-70%
d. 71%-80%
e. 81%-90%
f. 91%-100%


9. Classify the rate of effectiveness/success in the implementation of OD
interventions w.r.to the level of satisfaction after implementation of OD
interventions in percentage given below:
a. < 50%
b. 51%-60%
c. 61%-70%
d. 71%-80%
e. 81%-90%
f. 91%-100%




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