Question No. 5 - MMPC-001 - Management Functions and Organisational Processes

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MMPC -001 - Management Functions and Organisational Processes

Question No. 5 - Discuss the concept of change in organisations and the reasons for resistance to change. Briefly discuss the strategies to overcome resistance to change.

What is Resistance to Change?

Change is constant and unavoidable. However, human behaviour has repeatedly shown a resistance to change in the existing methods and ways of doing work. Organizations, for the advancement of business processes, require constant adaptation to changes. However, organizational resistance to change acts as a major hindrance in the path of development and success of an organization. Such resistance to organizational change brings in the need for defined change management. Before we move on to discuss the resistance to change theory, the reasons for resistance to change and the ways of managing the resistance to change, let’s take a quick look at the main causes of change in an organization:

• Business strategy and structure change
• Mergers and acquisitions
• Product reaching the end of the life cycle
• Changes in government priorities

So, the influencing factors for organizational change can be both internal as well as external.

Resistance to Change Meaning in Organizational Context

The resistance to change meaning can be defined as a major obstacle in the way of development with new technology and methodologies. Change in the techniques and organizational structure comes at regular intervals. However, with pre-existing methods, individuals become reluctant to learn and implement the new techniques bringing in a resistance to change. Resistance can be in the form of protests and strikes by employees, or even in the form of implicit behaviour. The organization with its managers must take up initiatives in managing resistance to change and in the process develop a gradual adaptation to change ensuring productivity as well as efficiency at work. 

Reasons for Resistance to Change

The common causes of resistance to change in all organizations are stated below:

- People are not willing to go out of their comfort zones defined by some existing methods for learning something new.

- Changes in methods and techniques come with a change in power, responsibilities as well as influence. Organizational resistance to change comes in from people negatively affected by the changes implemented.

- Insecurity, laziness and lack of creative approach make people cling to the pre-existing customs there by resisting changes.

Types of Resistance to Change

The types of resistance to change are stated below:

1. Logical Resistance: Such resistances come in with the time genuinely required in adaptation and adjustment to changes. For example, with the advent of talkies, the movie production houses had to shift techniques in the change from silent movies to talkies. This, in a very logical sense, took time for the sound engineers and even the filmmakers to adapt.

2. Psychological Resistance: Often resistance to change in change management comes with the psychological factor of fear of embracing the unknown, or even from hatred for the management and other mental factors like intolerance to changes.

3. Sociological Resistance: Sometimes resistances come not for particular individuals but from a group of individuals. In such cases, individuals do not allow their acceptance with the fear of breaking ties with the group.  

Managing Resistance to Change

An organization’s effort in managing resistance to change should come with proper education and training of the employees of the changes implemented. For a smooth change to facilitate, the organization has to take care of the considerations stated below:

• Changes should come in stages. A one-time major change would straightaway put operations into a stop.
• Changes should not affect the security of workers.
• Leadership qualities in managers with initial adaptations would gradually encourage employees to do so.
• An opinion must be taken from the employees who will ultimately be subject to the changes.
• Educating the employees and training them with the new methodology will boost up their confidence and build their efficiency. 

The basic resistance to change theory defines the resistance to change meaning as the reluctance of people to adapt to the changes and to cling to the pre-existing customs and methods, mostly due to the fear of facing the unknown and its possible negative effects. The management of an organization must be well aware of the various aspects of resistance to organizational change and be trained if the need arises, in methods of managing resistance to change. This is crucial for a smooth transition and restoration of organizational harmony.

Overcoming Resistance

Although change will always come with opposition, it is certainly possible to overcome it. Managers should strive to help their employees adapt to changes and facilitate new variations in performance.

First, managers must be able to convince employees that the changes they propose are necessary. They should show how employees and the organization itself will benefit from these changes.

Second, managers can keep the following in mind to make changes smoothly:

Changes should not happen all at once because they are easy to apply in stages.

Changes should never create safety issues for employees.

Managers should consider the views of all employees who will influence the proposed change.

If managers show leadership by first adapting to the changes themselves, the staff is less likely to resist.

Adequate staff training in advance can help them to accept change with confidence.

The Importance of Participation

It is always a good idea to encourage employee participation when management plans for change. Since the changes are for employees, they should have a say in the planning process. Such participation will make them less likely to resist the implementation of the reforms.

Managers can arrange small informal meetings or conferences with staff on this. Managers must explain all the relevant details of the proposed changes. Employees should be encouraged to express their views as well.

If employees are not properly informed of changes in the way they work, especially if they do not see the need for change, they may become insensitive. They may also face opposition when they have not participated in the decision-making process.

Spotting Resistance

Note whether employees miss meetings related to change. Late assignments, forgotten obligations, and absenteeism may be signs of resistance to change.

Some employees will publicly challenge the change, its purpose, or how it happened. An employee with a high position and a senior officer may be strong in his or her resistance. Low-level workers may resist collective bargaining in ways such as downsizing, staying home from work, deliberately misunderstanding guidelines, and, in rare cases, planning to bring in a trade union.

Employees are also resilient to change by failing to take action to move to a new location, keeping quiet about their familiar and unfamiliar business, in the same way, withdrawing their interest and attention, and failing to add to interviews, negotiations, and application requests.

Overcoming resistance

Before trying to carry out any change, leaders must recognize that resistance is normal, especially when people don’t understand the change, trust leadership, or believe the new initiative is necessary. In some cases, employees might think that a different change is needed or they’ve become cynical after a few failed change projects. They may think that this is just another flavor of the month initiative that will fizzle out soon enough. Some people can also have low tolerance for change in general. 

The first thing to remember is that a supportive workplace culture, clear and inclusive communication, and reliable feedback loops as part of an organizational framework can be a huge help to any change management initiative. Experts know this too, which is why the recommended approaches to handling resistance always stress the importance of communication and employee involvement. 

Six change approaches Kotter and Schlesinger suggested Six Change Approaches to handle resistance to change:

1. Education and communication 

First and foremost, employees need to understand the reasons for the change initiative. It’s important for people to see the leaders’ logic and hear the rationale, even if they don’t agree with it. And this should be done before any steps towards the change are taken. To help employees really understand the reasons behind the change, leaders should use a range of techniques and multiple meetings to hammer home the message. This is especially true if they know there’s a lack of knowledge on the subject or that inaccurate information is being circulated.

2. Participation and involvement

When building a change management team, it’s important to gather input from all levels and departments of the organization. Having people involved in the process helps them engage in (or at least tolerate) the change in a positive way. If people are given a chance to come up with ideas, discuss the ideas of others, or otherwise be involved in the process, they’ll become invested in the change and understand it better. 

When it’s clear that certain individuals are more likely to resist the change, leaders should make sure to include them in the design aspect of the plan. They will then have ownership of it and they’ll feel more involved, leading to commitment, which is worth much more than meek compliance. This approach is most useful when leaders don’t yet have all the necessary information to plan the change and where there is a chance that employees will have the power to resist.

3. Facilitation and support

Leaders need to invest a little more time to provide facilitation and support when people are resistant due to fear and anxiety. Training alone is not enough. Leaders should think about guided discussion groups to help people talk about their worries or even vent their frustrations. In anxiety-inducing situations, the change curve can help leaders understand what kind of support is needed at each stage. 

4. Negotiation and agreement

When individuals or groups value logic and stability, and think they’d be worse off because of the change,  leaders need to take an approach that is fair, logical and consistent. Employees have to see clearly that the change—whether they agree with it or not—is being introduced and implemented in a way that makes sense. For example, if an action needs to be performed, leadership should communicate the reasons behind it and the outcomes that are expected. This will ensure that employees will see why certain choices are being made and provide the much-needed stability. 

5. Manipulation and co-optation

In order to encourage change-resistant people to adjust their position, information must be used in a selective way. Leaders need to determine which employees are happy with the prospect of change and appoint them as  “change agents”. Their mission will be to sell the change to others in the organization, so leaders must choose their agents wisely. For individual employees or well-respected group leaders, this could mean including them in the change management team. 

This approach can be a bit of an ethical dilemma, but it’s often the only option left when all others have failed. If it’s done incorrectly, and people realize that they are being manipulated, it can intensify resistance and lead to more problems.

6. Explicit and implicit coercion

If there’s absolutely no willingness from people to accept and participate in the change, leaders could consider communicating potential negative consequences of continuing the status quo. This approach should be the absolute last resort, only to be used if all else fails.

Question No. 2 MMPC-001 - Management Functions and Organisational Processes

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MMPC -001 - Management Functions and Organisational Processes

Question No. 2 - What is the concept of organising? Briefly discuss and describe different approaches to organising and analysing work.

Organizing is a managerial process that defines the role of each person in an organization to achieve objectives set by the management of the organization. Regarding establishing a rights-responsibility relationship among all and to provide harmonious group action to coordinate as an inbuilt device in the enterprise. It affects how relationships working between individuals and groups within an organization complete and coordinate their activities. Effective organizing depends on many important concepts like work expertise, delegation, duration of control, a chain of command, authority, and decentralization versus centralization. Many of these concepts are based on the principles developed by Henri Fayol. In order to understand the concept of an organization, it is necessary to define the following words.

- Organizing as a structure:

Organizing a structure refers to a hierarchical arrangement of the position of the members and the department. Of an organization, It reflects the relationship between rights and responsibilities among the members. It recognizes who is to command and what to believe? It is a mechanism to direct, coordinate and control activities. It is a static a concept that can not be changed easily and quickly.

- Organizing as a process:

Organizing in the form of a process means grouping the duties to identify and work. People, authorization, responsibility to build relationships and coordinate activities between members and departments It usually determines, organizes, groups and assigns its members the task. It is a dynamic activity that can be arranged and changed according to the needs of the company.

- Organizing as a function:

Organizing is an important task after planning. The manager of the company organizes or collects resources like manpower, money, material, machines, methods, etc., it is necessary to take action on the track.

- Organizing as a group of people:

An event is a group or association of some people created for certain economic interests or non-economic interests. This is guided by the policy or company, school, college, hospital, government rules, Office, club, etc.

Five Approaches to Organizational Design

Managers must make choices about how to group people together to perform their work. Five common approaches — functional, divisional, matrix, team, and networking—help managers determine departmental groupings (grouping of positions into departments). The five structures are basic organizational structures, which are then adapted to an organization's needs. All five approaches combine varying elements of mechanistic and organic structures. For example, the organizational design trend today incorporates a minimum of bureaucratic features and displays more features of the organic design with a decentralized authority structure, fewer rules and procedures, and so on.

1. Functional structure

The functional structure groups positions into work units based on similar activities, skills, expertise, and resources (see Figure 1 for a functional organizational chart). Production, marketing, finance, and human resources are common groupings within a functional structure.

As the simplest approach, a functional structure features well‐defined channels of communication and authority/responsibility relationships. Not only can this structure improve productivity by minimizing duplication of personnel and equipment, but it also makes employees comfortable and simplifies training as well.

But the functional structure has many downsides that may make it inappropriate for some organizations. Here are a few examples:

The functional structure can result in narrowed perspectives because of the separateness of different department work groups. Managers may have a hard time relating to marketing, for example, which is often in an entirely different grouping. As a result, anticipating or reacting to changing consumer needs may be difficult. In addition, reduced cooperation and communication may occur.

Decisions and communication are slow to take place because of the many layers of hierarchy. Authority is more centralized.

The functional structure gives managers experience in only one field—their own. Managers do not have the opportunity to see how all the firm's departments work together and understand their interrelationships and interdependence. In the long run, this specialization results in executives with narrow backgrounds and little training handling top management duties.

2. Divisional structure

Because managers in large companies may have difficulty keeping track of all their company's products and activities, specialized departments may develop. These departments are divided according to their organizational outputs. Examples include departments created to distinguish among production, customer service, and geographical categories. This grouping of departments is called divisional structure (see Figure 2). These departments allow managers to better focus their resources and results. Divisional structure also makes performance easier to monitor. As a result, this structure is flexible and responsive to change.

However, divisional structure does have its drawbacks. Because managers are so specialized, they may waste time duplicating each other's activities and resources. In addition, competition among divisions may develop due to limited resources.

3. Matrix structure

The matrix structure combines functional specialization with the focus of divisional structure. This structure uses permanent cross‐functional teams to integrate functional expertise with a divisional focus.

Employees in a matrix structure belong to at least two formal groups at the same time—a functional group and a product, program, or project team. They also report to two bosses—one within the functional group and the other within the team.

This structure not only increases employee motivation, but it also allows technical and general management training across functional areas as well. Potential advantages include

Better cooperation and problem solving.

Increased flexibility.

Better customer service.

Better performance accountability.

Improved strategic management.

Predictably, the matrix structure also has potential disadvantages. 

Here are a few of this structure's drawbacks:

The two‐boss system is susceptible to power struggles, as functional supervisors and team leaders vie with one another to exercise authority.

Members of the matrix may suffer task confusion when taking orders from more than one boss.

Teams may develop strong team loyalties that cause a loss of focus on larger organization goals.

Adding the team leaders, a crucial component, to a matrix structure can result in increased costs.

4. Team structure

Team structure organizes separate functions into a group based on one overall objective (see Figure 4). These cross‐functional teams are composed of members from different departments who work together as needed to solve problems and explore opportunities. The intent is to break down functional barriers among departments and create a more effective relationship for solving ongoing problems.

The team structure has many potential advantages, including the following:

Intradepartmental barriers break down.

Decision‐making and response times speed up.

Employees are motivated.

Levels of managers are eliminated.

Administrative costs are lowered.

The disadvantages include:

Conflicting loyalties among team members.

Time‐management issues.

Increased time spent in meetings.

Managers must be aware that how well team members work together often depends on the quality of interpersonal relations, group dynamics, and their team management abilities.

5. Network structure

The network structure relies on other organizations to perform critical functions on a contractual basis (see Figure 5). In other words, managers can contract out specific work to specialists.

This approach provides flexibility and reduces overhead because the size of staff and operations can be reduced. On the other hand, the network structure may result in unpredictability of supply and lack of control because managers are relying on contractual workers to perform important work.

Question No. 1 MMPC-001 - Management Functions and Organisational Processes

Solutions to Assignments 

MMPC -001 - Management Functions and Organisational Processes

Question No. 1 - Describe the characteristics of Management and it’s importance. Briefly discuss the challenges faced by Manager in the present day context. 

Management is an essential to life, in order to organize it we need to manage. In every turn of life, we need to manage. Be it business or household, ‘management’ plays an important function. In the business world, good management is the backbone of every organization. 

“Management is the art of getting things done through and with the people in formally organized groups.” – this means that management is the way to get things done by the employees of an organization where they function in an organized way.

Characteristics of Management

To know the true nature of any system we should check the characteristic features of the same. Similarly, to know the management system we need to analyze its characteristics. The characteristics of management are as follows – 

1. Universal: Every organization irrespective of their financial position requires management to manage their activities, thus it is universal in nature.
2. Goal Oriented: Management helps the organization achieve goals systematically and without any fuss. 
3. Continuous Process: Management is an ongoing process which is required in every facet of an organization to function good, be it production system, human resource, finance or marketing
4. Multi-dimensional: Management not only manages the workforce but also manages every sphere of the organization whether it is production, human resource. 
5. Group Activity: The groups in an organization work together also the members in different groups work in a system, they belong to different backgrounds, culture and they have different aspirations, to work evenly without any difference issue they need to adopt the management.
6. Dynamic Function: Business environments have different factors like social, political, legal, technological and economical, with these factors in force an organization is open to changes frequently, with management in their system they can apprehend the changes and work towards responding to it.
7. Intangible Force: Management cannot be touched or seen, its effect can only be experienced and the benefit can only be enjoyed.

Precisely, all the functions, activities and processes of the organization are intertwined to one another. So, it is the task of the management to bring them together in sync in such a way that they help in reaching the already set result.

Importance of Management

1. It helps in Achieving Group Goals - It arranges the factors of production, assembles and organizes the resources, integrates the resources in effective manner to achieve goals. It directs group efforts towards achievement of pre-determined goals. By defining objective of organization clearly there would be no wastage of time, money and effort. Management converts disorganized resources of men, machines, money etc. into useful enterprise. These resources are coordinated, directed and controlled in such a manner that enterprise work towards attainment of goals.
2. Optimum Utilization of Resources - Management utilizes all the physical & human resources productively. This leads to efficacy in management. Management provides maximum utilization of scarce resources by selecting its best possible alternate use in industry from out of various uses. It makes use of experts, professional and these services leads to use of their skills, knowledge, and proper utilization and avoids wastage. If employees and machines are producing its maximum there is no under employment of any resources.
3. Reduces Costs - It gets maximum results through minimum input by proper planning and by using minimum input & getting maximum output. Management uses physical, human and financial resources in such a manner which results in best combination. This helps in cost reduction.
4. Establishes Sound Organization - No overlapping of efforts (smooth and coordinated functions). To establish sound organizational structure is one of the objective of management which is in tune with objective of organization and for fulfillment of this, it establishes effective authority & responsibility relationship i.e. who is accountable to whom, who can give instructions to whom, who are superiors & who are subordinates. Management fills up various positions with right persons, having right skills, training and qualification. All jobs should be cleared to everyone.
5. Establishes Equilibrium - It enables the organization to survive in changing environment. It keeps in touch with the changing environment. With the change is external environment, the initial co-ordination of organization must be changed. So it adapts organization to changing demand of market / changing needs of societies. It is responsible for growth and survival of organization.
6. Essentials for Prosperity of Society - Efficient management leads to better economical production which helps in turn to increase the welfare of people. Good management makes a difficult task easier by avoiding wastage of scarce resource. It improves standard of living. It increases the profit which is beneficial to business and society will get maximum output at minimum cost by creating employment opportunities which generate income in hands. Organization comes with new products and researches beneficial for society.

Challenges faced by Managers in the present day

1. Communicating effectively with employees: As a manager, there can often be an element of distance from the rest of the team. This creates one of the biggest challenges for managers – bridging the distance with effective and timely communication skills. Good managers need to develop advanced listening and speaking skills as they play a huge role in the success of their team. ‘A lack of interdepartmental communications’ has been found to be one of the biggest causes of stress for UK employees in 2020. This means that when a manager isn’t communicating well with their team about business matters or individual progress, not only could it be damaging the manager-employee relationship, but it could also be greatly adding to employees’ work-related stress.
2. Confronting performance problems: Performance problems are always going to be a concern for any manager. But in today’s fierce business environment, if your teams aren’t performing to a high standard, a competitor could easily come in and take your customer’s business. You need to get to the root of any problems quickly. But be careful – managers have the tricky job of finding the balance of getting the results you need and not damaging any relationships with your team members in the process. If you put your ‘strict manager’ hat on too soon, you risk damaging the trust with other members of your team too.
3. Letting employees go: This will probably always be the hardest part of any manager’s job – and it’s something you never want to get too comfortable doing. Unfortunately, there’s no easy way around this one and it doesn’t become any easier, no matter how much experience you have.
4. Making the right hiring decisions: So many candidates out there might have the experience and skills that you might be looking for and they’re probably perfectly capable to do the job. But this doesn’t mean they’re a perfect match to join your team. A good manager is able to decipher between a good skills hire and a good cultural fit. Finding the right blend of both. If you make a wrong decision in the hiring process, it can quickly affect your team's morale and performance. You'll also have to deal with the other problems we've outlined here, so making the right decision in the first place is a must.
5. Managing conflicts within your team: In a dream world, your team works well together. They’re great collaborators, feel comfortable being creative together and get on socially. Unfortunately, this dream doesn’t always come true. And when a conflict arises between two colleagues, it can be felt throughout the team. When conflicts aren’t resolved, they can quickly affect productivity and morale – and even lead to top performers leaving the company. Managers are tasked with nipping any conflicts in the bud early, before they become bigger concerns.
6. Retaining star employees in a competitive environment: Today, skills are becoming more and more specialised, so if you have a talented employee, you’ll want to do your utmost to keep them. But if you’re not offering your employees what they’re worth, someone else will. A challenge as a manager today is ensuring that your talented staff are supported, learning new skills, have a clear path of progression and are happy in their role. A further challenge comes as remote working continues to rise, employees are no longer limited to roles by location – so you’ll have to work even harder to retain your star employees.

MMPC -001 - Management Functions and Organisational Processes - MBA and MBA (Banking & Finance)

Solutions to Assignments 

MMPC -001 - Management Functions and Organisational Processes

Question No. 1 -  Describe the characteristics of Management and it’s importance. Briefly discuss the challenges faced by Manager in the present day context.          CLICK HERE 

Question No. 2 - What is the concept of organising? Briefly discuss and describe different approaches to organising and analysing work.                             CLICK HERE 

Question No. 3 - Discuss and describe different leadership styles and their relevance in the present scenario of organisations.                        CLICK HERE 

Question No. 4 - Describe and discuss various channels of communication and their role in organisations. Discuss how to overcome barriers to effective communication with relevant examples.           

                                                                    CLICK HERE 

Question No. 5 - Discuss the concept of change in organisations and the reasons for resistance to change. Briefly discuss the strategies to overcome resistance to change.               CLICK HERE