According to CEO of McKinsey & Co. Bob Sternfels, India would make it to the top in terms of global talent by 2047. The same is possible due to its huge working populace, growing number of transnational organizations, rehaul of global supply chains and digitalization. India is expected to be the leader in the Asian economy in terms of growth with a contribution of 28% to the Asian growth and 22% to the growth globally. Despite the pandemic crisis, Ukraine war, political instability and inflation to name a few, economic situation in India appears to be encouraging. The economic growth can be attributed to the infrastructure program of India that warrants 1.5 trillion investment in the coming five years, says Arjun Dhawan, Vice Chairman, HCC Ltd.
Speaking on the inflation and the cost push challenge encountered, thanks to Covid-19, Mahendra Singhi, MD & CEO, Dalmia Cement Limited said that despite the setbacks, Indian cement companies, by dint of their innovativeness are striving to be climate-friendly by producing more than 75% low carbon cement.
These are a few insights provided by the corporate leaders about the state of their sectors. All other sectors are likely to perform considerably well and this sanguinity comes from the fact that ongoing policy reforms along with the contributions of the learning organizations through constant upskilling and reskilling can fuel the growth.
Owing to the challenges of talent acquisition and the extent of employee engagement, workforce upskilling and reskilling is the top priority of the executives in Indian organizations. Organizations are striving for redesigning their talent strategies with an impetus on internal talent marketplace, not to forget the rising gig economy which accounts to 42%, reveals Mercer’s Global Talent Study’ 2022. To accomplish this objective, companies are busy capitalizing on targeted learning and development programs along with providing internal gig experiences to fill the skill gaps, although struggling to scale. To make it easy in the Indian labor market that is employee-centric with the employees looking for choice, organizations are striving to co-create work designs by partnering with their employees.
Based on the above case, answer the following questions:
- Based on the major stems of OD, identify the model that is appropriate to bring about required changes in the organization. Illustrate the approach to change therein. Provide two instances from your organization or any other organization of your choice where the said approach helped in effective change management (250 words/4 marks- Concept 1.5 marks, Context 2.5 marks).
- Based on the six-box model framework, recommend the initiatives to be taken for managing the said change discussed above. Illustrate the process followed by the organization of your choice in bringing about similar changes. (250 words/4 marks- Concept 1.5 marks, Context 2.5 marks)
Discussion on the above case:
The McKinsey 7-S model is a suitable model to implement the necessary changes in the organization based on the most important parts of organizational development (OD). The 7-S model is a holistic approach that focuses on seven interrelated organizational elements that must be aligned and aligned to achieve effective organizational change. The seven elements are:
a) Strategy: An organization’s plan to achieve long-term goals and objectives.
b. Structure: The way an organization is organized and the division of tasks, roles and responsibilities.
c. Systems: The formal and informal processes, procedures and practices that guide the operations of the organization.
d. Capabilities: the skills and competencies of employees and the organization as a whole. e. Shared values: the core beliefs, values and principles that guide organizational behavior and decision-making.
f) Style: the management style and culture of the organization.
g. Personnel: People and their role in the organization.
In Organization A, management realized that despite a strong strategy and competent employees, the organizational structure was hierarchical and inflexible, leading to slow decision-making and stifling innovation. To implement an effective change, they decided to adopt the 7-S model. They restructured the organization into cross-functional teams, fostered a culture of open communication and collaboration (Shared Values), and trained employees to develop the skills needed for new roles. That change increased flexibility and innovation, which led to better efficiency and growth. Figure 2: Organization B faced challenges in employee engagement and retention.
The 7-S model was used to diagnose the problem and it was revealed that the organization’s stated values and the actual management style did not match. The management believed in a participatory approach (Shared Values), but the management style was authoritarian and top-down (Style). To manage this change, management was trained to adapt its behavior to the desired values. They also implemented regular feedback mechanisms and recognition programs to improve employee engagement (systems). This has resulted in significant improvements in employee satisfaction and retention.
Initiatives for change management based on the discussed 7-S model:
a) Strategy: Define a clear vision and strategic goals for the change initiative. Align the change with the overall business strategy.
b). Structure: Assess the existing organizational structure and make the necessary changes to support the change. Consider creating cross-functional teams, eliminating unnecessary hierarchies and promoting flexible decision-making.
c). Systems: Implement supporting systems and processes to enable and sustain change. This may include performance systems, communication channels and feedback mechanisms.
d). Skills: Identify the skills needed for change and organize the necessary training and development programs to equip employees with the necessary competencies.
e). Shared values: Ensure that the change is consistent with the organization’s core values and culture. Leaders should model the desired behavior and foster a culture of openness and collaboration.
f). Style: Match the control style to the desired change. Managers must demonstrate the values they promote and adopt a leadership style that encourages employee participation and empowerment.
g). HR: Assess the current workforce and identify champions of change. Involve these employees in the change process to encourage buy-in and buy-in.
The management of Company X understood the need for digital transformation to maintain competitiveness. They followed the 7-S model and redefined their strategy to focus on digitization (strategy). They established their own digital transformation team composed of employees from different functions (Structure) and invested in advanced digital tools and technologies (Systems). The organization organized workshops and trainings to improve the digital skills of employees (Skills) and emphasized the importance of agility, innovation and collaboration (Shared Values). Management has adopted a participative management style that encourages open communication and employee participation (Style). Employees embraced this change initiative, resulting in a successful digital transformation and improved efficiency.
In summary, it can be stated that the 7-S model is a comprehensive approach that addresses several dimensions of the organization and enables effective change management. By combining these seven elements, organizations can navigate the challenges and opportunities presented by a dynamic business environment and achieve sustainable growth.