The most consistent thing in this universe is fluctuation. Changes are happening all over the Earth. More and more organisations are confronting dynamic and altering environment. Reason can be of diversified work force, following new engineering, economic alterations, societal tendencies and political factors. Change has to happen therefore organisations must larn to cover with those in better mode than such alteration can better the ability of organisation and can besides assist to heighten employee behaviour. Planned alteration is besides a manner to alter the person and group behaviour which later consequences in organisational success. Planned alteration activities are knowing and end oriented. Persons, groups and organisations at whole can confront the alteration or altering environment. In such instance people or at organisational degree alteration is resisted. Assorted factors can be a beginning of defying the alteration. Somehow this opposition is positive, as workers are reactive and later their behaviour can be taught to cover with the alteration. Assorted theoretical accounts prevail to cover with the alteration and how to pull off it. For that I will lucubrate single degree, group degree and organisational degree severally with assorted theoretical accounts and theories. ( Robins, 2010 )
Discoursing single foremost, as stated in larning dip theory when an single brush change the public presentation of the person quickly declines. And by the clip passes on the public presentation degree rises up as the person get usage to the alteration or person may besides larn to undertake it. If that is because of any accomplishment fright than in that larning dip clip the person may get the hang what fears him. Subsequently the public presentation will go better and it will lift up as clip base on ballss on. Kolb ‘s learning rhythm is a theoretical account which helps the alteration agent to cover with the alteration. The rhythm in given image explains that really foremost an single brushs a new thing or a alteration. Than the individual take clip to larn about it or to gestate it. Later on single would execute the act after analyzing it from theory and would experience the experience of it. By executing all of these stairss an person learn. This besides gives cognition of four distinguishable types of single scholars. As few wants to analyze from theory others want to execute it and some may larn from watching ( Green, 2004 ) .
Behavioral attack is besides used to analyze alteration among persons. It ‘s a simple theory which uses wagess and penalties to acquire desirable consequences from the employees. By that persons can be motivated to alter by offering them fringe benefits and by diminishing the opposition by penalty.
1.2 Group Change Management
Motivational theories are besides discussed by assorted societal scientists under behavioural attack. In which of import work was done by Maslow, who found out five major set of demands which employee achieves in hierarchal mode. As each demand are satisfied, single stairss to higher degree of demands. Hierarchy of five demands are physiological, safety, societal, esteem and self realization, as shows in the image below.
McGregor added thought that directors assumes that there are two types of employees one whom are lazy and dislike work ( Theory X ) and others who like the work and are active ( Theory Y ) ( Fallon and Zgodzinski, 2005 ) . In terrelation with Maslow is that Theory X employee are dominated by lower degree demands in hierarchy of demands and frailty versa for Theory Y employees. Then comes Herzberg who gave the thought that employees can ne’er be influenced to be motivated or changed until with sufficient motivational factors, hygiene factors which de motivate employees are besides eliminated. By implementing these theories directors can pull off alteration ( Devies, 2007 ) .
When two or more interacting and mutualist persons come together to accomplish alone end a group is formed. Organizations may hold formal or informal groups. Even when persons in group come together there is a storming phase. In which diversified personalities and distinguishable thoughts are conflicted among the group. Change direction may besides be required to settle the issue that who will be the leader to the group. Direction of group demands to be lead in consecutive mode for that group is to be lead in effectual mode. As organisations are made by the combinations of assorted little groups. Groups have assorted advantages and disadvantages while doing determinations. Advantage is of holding more ideas, diverse surrogates but that may besides be a batch clip devouring. Still squads can be really effectual when their end is clear, have common trust, good communicating and appropriate leading ( Coulter, 2008 ) .
2.0 Organizational alteration direction
Change at organisational degree can besides be managed by assorted theoretical accounts and techniques. Kurt Lewin mentioned three of import stairss for successful alteration in an organisation the image given below explainis the hierarchy of each measure.
Very first measure is to dissolve the position quo
with that 2nd is to travel toward the coveted province or alteration.
Last measure is to refreeze the coveted province into lasting alteration.
In unfreeze phase attempts are made to alter the person and group opposition towards alteration. Than in motion stage drive forces are added which forces the behavior off from equilibrium phase. With that restraining forces are besides decreased in motion stage as they hinder to travel toward position quo. Once coveted province held the place is maintained by equilibrating drive and restraining forces. It is besides know as unagitated H2O metaphor ( Judge, 2010 )
Kotter ‘s eight measure program is a elaborate attack of Lewin three measure theoretical accounts. In which above mentioned three stairss are translated in more elaborate attack for implementing alteration. In it Kotter explains of import thoughts for directors when they will be working as a accelerator that how they may work over Lewin ‘s thought. To set up a sense of urgency, power to take the alteration, new vision, empower employees, short term wagess, and reassess betterments and to reenforce alterations by doing relationship between new behaviour and organisational success ( Kotter, 1996 ) .
Action research is another method which can heighten alteration procedure by systematic manner of roll uping informations and so analysing the factors which are impeding the alteration procedure. Subsequently disciplinary actions will be taken against the hindering factors. Finally disciplinary actions will be evaluated to guarantee the effectivity of the action research ( Huxham, 1996 )
2.0 The Case
The instance under treatment here is a state of affairs prevailing in Saudi Electricity Company ( SEC ) , which is the lone electricity service supplier in the Kingdom of Saudi Arabia. As the market is turning rapid so to run into the altering demands of market and high demand and fall ining the word process and procedure particularly after unifying the four Saudi electricity companies in twelvemonth 2000, this company planned to get down a strategic ERP execution plan called “ Nebras which is an Arabic name means “ cresset ” . Nebras is non really a undertaking itself instead it ‘s a uninterrupted plan which is composed of many different undertakings. In 2003 the feasibleness survey for this plan started and in mid 2004 it was approved by the CEO of the company. the purpose of this plan is to replace bing processs and treat the best patterns being adopted internationally and following the best available tools which. For that For that the company decided to hold a vanilla execution of ERP system ( SAP ) minimising the customization of the package. The first stage of this undertaking has started in 2005.
It is ever critical to pull off the alteration efficaciously after implementing a certain engineering and a concern procedure reengineering. Any transmutation which is enabled by IT requires comprehensive attack towards system alterations associated with ERP executions. Without pull offing the alteration happening in consequence of such a transmutation an enter endeavors may non be able to accommodate to the new systems to do public presentation additions ( Yongbeom et al. , 2005 ) . Now yearss many organisations are turning to ERP which stands For Enterprise Resource Planning this aims to heighten the public presentation undertake better determination devising and to construct strong capablenesss. This would besides be a great aid in attain the competitory advantage over its challengers. This system takes some major investings of the organisation. Companies have invested about $ 50,000 to about 100s of 1000000s of dollars for implementing these systems ( Sumner, 2005 ) . Harmonizing to another survey it is speculated that the market of ERP may make $ 1 trillion by 2010. The execution of ERP system gives an chance to reengineer the whole concern procedure undergoing and present alteration as it affects full organisation. That is the ground why high failure rate in implementing ERP is reported. Though The Reasons of Such Failure differ from one organisation to another some of them rise from proficient facets of the system some are direction failures and some happen because of societal or organisational issues ( Fiona, 2003 ) . If we look at it with the position of an overall concern an ERP system accomplishes some really of import aim of the concern which includes commixture of throughput of information. It maximizes the response clip to clients it besides helps in forcing the determination doing to most appropriate lowest degree ( Sumner, 2005 )
A really good stating by Deloitte Consulting, this system is a more like a packaged concern package which makes a company mechanize and set together most of its concern procedures, as common informations and patterns are shared across the whole endeavor, and it besides constructs and entree information in a existent clip environment ( Sumner, 2005 ) . SEC ( Saudi Electricity Company ) is presently traveling in the procedure of implementing an ERP system companywide to cover all concern lines and its all procedures and processs such as HR, Finance, Distribution and client service, and Logistics. As I described earlier the chief purpose of this plan is to re-engineer current concern procedure with the aid of best patterns being used which is called “ Vanilla execution scheme of the ERP system ” . In this paper, I am traveling to turn to and analyse the undertaking critical analyze and explicate the manner SEC is pull offing the undertaking toward accomplishing concern strategic ends.
2.1 Pull offing the alteration procedure
It ‘s really of import to acknowledge the demand for alteration in any organisation. At the clip of implementing anything new, organisation ‘s civilization and construction should be managed carefully. The engagement of ser should in all stages of the undertaking must be assured ; proper instruction and preparation must be provided to assist alter procedure to be seamlessly done ( Fiona et al. , 2003 ) .
In may 2002 The CIO Nestle company ‘s, Jerri Dunn said in an article written for CIO magazine, that no major package execution is affected by the package instead its about the alteration which may happen. When an organisation is traveling to SAP they are really altering the manner people work in that organisation, such a alteration becomes a challenge their rules, their beliefs, and the manner they have done things for many, many old ages. ” ( Gregg and Catherine, 2004 ) .
A series of “ occupation impact analysis ” paperss was developed by Amoco which is a taking US oil company. These paperss were reviewed by the execution squads and so by center directors, to minimise their opposition and by “ coercing ” them to go involved. Though this experience failed and the IT map was non sufficiently equipped to transport out the SAP execution. The chief grounds of failure of the attempts were deficiency of preparation, Scarcity of experient staff, instruction, and increasing overload. End-users resisted the new system and this demand was underestimated at the beginning because the adequate accomplishment was non given to them at foremost. IT map must besides be prepared to run into the IT direction challenges that SAP brings about along with authorising the IT map with the necessary preparation and resources ( Al-Mashari and Al-Mudimigh, 2003 ) .
2.2 Goal of alteration direction in ERP execution
Largely change direction is considered to be a set of separate activities taking topographic point during a undertaking. Conceptually, the purpose of alteration direction in ERP execution undertakings is the relocating the ownership from the undertaking squad that designed and configured the new system and procedure to the terminal users and the internal clients who would use these tools and procedures in their twenty-four hours to twenty-four hours activities.
Practically talking this mean to deconstruct the ownership transportation into three basic drivers: ( Gregg and Catherine, 2004 )
Knowledge Transportation: ensures that employees know what to make
Duty Transportation: guarantee that employees to the full take part in the execution
Vision Transportation: aid employees translate new tools and processes into improved concern consequences
For accomplishing transportation of ownership Communication is a really critical instrument. This procedure needs to be in a uninterrupted mode. There are chiefly three degrees where communicating is needed.
For awareness runs with the intent of raising understanding and awareness among employees.
For using the one-way communicating channels like newssheets, a web site and route shows.
It is needed besides to use the bipartisan communicating or the synergistic communicating methods like issue-tracking, meetings, workshops, conference calls and collaborative web sites.
For proof Sessionss and other hands-on interaction to prove constructs with capable affair experts.
Without the executive support alteration can ne’er go on. A support really means seeable engagement and CEO ‘s sponsorship. It has been acknowledged that a cardinal success factor in ERP execution is top direction. Both committedness to resources and committedness to alter direction is influenced by it ( Fiona et al. , 2003 )
2.3 Role of Change Management Team
There are certain factors that alteration direction seeks to aline such as End User apprehension of the alteration impacts and maximising the benefits of the alteration. The alteration direction squad handles following chief activities:
Pull offing concern impact
End User Training
Surveies before establishing the undertaking
Measuring site preparedness
2.4 Case Analysis and Discussion
I will now analyze and measure the undertaking qualitatively, based on the facts and information shown in the instance, holding an oculus on what was stated in the literature reappraisal. I will analyse the instance utilizing the same subjects mentioned in the literature and measure the state of affairs on three evidences i.e.
The company should take a serious lesson from the failure of other companies ‘ ERP execution undertakings. And there must be a alteration direction squad as portion of the execution plan. In the undermentioned subdivisions, I will discourse the issues related to alter direction in our instance.
2.5 What motivated SEC toward ERP systems?
Several top direction top direction workshops were conducted by the company in order to come up with the drivers for altering into ERP systems for each concern line and the whole company. The forces for alteration were revealed by these workshops and it besides helped in naming the job. The chief incentives in our instance are replacing bequest systems, standardising and simplifying concern procedures and systems, and bettering client services.
2.6 Business Process Re-engineering and Decentralized Decision Making in SEC
In this instance the company is working in the market where it has monopoly with a perpendicular hierarchal construction. This construction could turn out to be appropriate in such market when the company was looking for efficiency, specialisation and control through centralized determination devising. The company chose to re-engineer its concern processes as today ‘s forces for alteration are different. A decentralised determination devising procedure is required for re-engineering which has a inclination to flatten organisational beds which means to authorise employees and diminish the demand for mid-level direction. With bing organisational construction deconcentrating determination devising would be a really hard thing to pull off and this be an obstruction in taking full advantage of this measure.
3.0 Organization Attempts to get the better of opposition to procedure alterations
The attempts are made at three degrees in the organisation following are the sort of alterations that are taken stairss for.
Individual alteration direction
Organizational alteration direction
Team alteration direction
3.1 Individual alteration direction
The persons involved in the alteration procedure demand to be addressed individually and quickly and to guarantee the terminal user engagement in the whole procedure. For that purposes following ways are adopted by the company.
3.1.1Training and End-User Involvement
The employees of the concern or the terminal user employees or those single which are effected by any alteration happening within the organisation may be a portion of it while being n any of the undermentioned functions.
Power user ( Trainer )
Part clip capable affair expert
Functional squads leaders
Those with cognition or experience in one or more countries of SEC concern procedure A Subject affair expert will play a critical map in overcome opposition and easing credence of the re-engineered procedure, since they remain in their sections concern, have regard of their equals and would be the nexus between the undertaking and the concern as a communicating channel.
They will besides to a great extent be portion of system simulation workshops and undertaking. They are besides engaged in conductivity the preparation stuffs and preparation and development plans. And finally they besides play supervising functions.
3.2 Team alteration direction
It is really indispensable that the squads formed for implementing any alteration are trained and made familiar of the effects that may happen which can either be good or bad.for pull offing the alteration at squad degree the organisation took following steps.
3.2.1Cross Functional Coordination
In the instance under treatment here our company worked really good on this issue. They really formed a pilotage commission which had to be on top of the undertaking squad with the purpose to decide any struggle and provide uninterrupted committedness and support to the undertakings squads.
3.2.2 Project Team & A ; the Undertaking Charter
A Program motto or name “ Nebras ” for the Project section successfully This section has a director which is the title-holder of the alteration agent it besides contains external and internal advisers and alteration direction undertaking direction and proficient support squad are besides portion of it. The point which is observed chiefly here the squad in carry oning its operation in the eastern operating country which antecedently was SCECO East and the alteration agents and many other employees were from eastern country to. Foe covering for this state of affairs which could hold been a cause of a great opposition of alteration in these countries and other runing countries excessively, several workers were assigned as being to the full dictated to be the representatives of Nebras in such topographic points.
3.3 Organizational alteration direction
It ‘s really of import to pull off the alteration at organisational degree every bit good as it affects the working of the whole organisation as whole. In this instance following is the countries our organisation worked o to pull off the organisational alteration after implementing this plan.
3.3.1Change Restricting Conditions ( victory organisations )
The director of the plan gets hold of successfully the committedness of the top direction to this plan. There can still be some confining conditions bing in organisation and go an obstruction finally. The formal organisation which involve a formal or hierarchal construction certain processs and policies and systems of control which are really change to alter go the chief cause of jobs. This could place that the top direction ‘s degree of committedness is really limited. The civilization refering in any organisation is besides an obstruction. In this instance I would advert that the civilization of this company is non much competitory or state a learning civilization. It really is more like the civilization of authorities organisations to some extent. Such rigidness will go a hurdle in the ways of implementing any alteration.
To get the better of the opposition which may happen after implementing alteration many attempts were done to fix the organisation for any such effects due to the re-engineered procedure. These attempts include the employ engagement in the undertaking communicating attempt and awareness runs along with preparation of the terminal user and interacting strongly with the top direction. A combination of logical thinking and instruction attacks has been used. The most effectual agencies were that they emphasized the function of alteration direction in the undertaking. Following are some topographic points where their schemes worked out efficaciously.
Transformational title-holder ( leader )
Puting high importance “ nisus ” concern procedure re-engineering around ERP best patterns
Endeavoring squad work
SEC methodological analysis ( execution program ) toward the execution procedure
Heavily engagement of concern employees in the undertakings along with proficient people
Along with above mentioned attempts done the company still there are many countries which still need to be addressed and to be worked on. Honoring system and the compensation system both pay a important function the in procedure of alteration in any organisation. to reap the most additions out of their immense investing. SEC works being a triumph organisation for deriving the most out of ERP system and re-engineered procedure its hierarchal organisational construction could be a major obstructions. Taking an illustration I can cite here that ERP encourages authorization and riddance of non value added activities to keep fast client reactivity and lower costs, but the organisational hierarchal “ control ” construction could cut down this. This besides seen that the company- broad engagement of the employees is non really good conducted. The undertakings must be linked to the honoring systems to promote and actuate employees. The employees at the managerial degree must be educated good. Taking the expression at the treatment subdivision we can besides foreground the major countries where SEC successfuly executed the plan activities and controlled alteration opposition.