Assignment on Change Management

M.A. Human Resource Management, Fourth Semester Department of Social Work Jamia Millia Islamia

Submitted By Anindita Buragohain

Submitted To: RR Patil

CHANGE MANAGEMENT-A BRIEF DESCRIPTION Selecting and implementing significant change is one of the most challenging undertakings that faces an organization. If the change involves the entire organization and also requires new paradigms that will replace established ways of doing business the challenge is daunting. Research shows that the success rate for implementing major organizational change is quite low, for several reasons. First, asking organizations to change the way they conduct their business is similar to asking individuals to change their lifestyle. It can be done but only with the greatest determination, discipline, persistence, commitment and a clear plan for implementing the change. Second, resistance to change is a natural human phenomenon. All people resist change, some more than others. Managing that resistance is an essential part of the process. Third, change creates uncertainty. Organizations generally achieve fairly predictable results with their existing business model. Their outcomes may not be the desired results, but they are predictable. Change is unpredictable. The results may be far better but they may also be far worse. And success often looks and feels like failure until the change is very nearly completed. Staying the course of implementing a change which is essential for its success meets with continuing human and organizational resistance and pressure to pull the plug before the process is completed. The Change Management Methodology Step One - Confirming the Compelling Need to Change It is not uncommon for the process to begin with significant discussion about whether broadbased systemic change is needed, or whether smaller incremental improvements will do the job. This often requires some external data (market share, competitive information, etc.) as well as objective internal data (how long does it take to complete projects vs. plan; are costs per unit

increasing or decreasing; is our organization getting better at what it does; is competitive positioning weakening, etc.).

Step Two - Identifying the Boundary Conditions Boundary conditions define the limits (or playground) within which change might be considered. When senior teams begin their discussion some large topics usually emerge very quickly. Issues such as mergers, acquisitions, international or global initiatives, large capital investments, strategic alliance partners, equity situations, private vs. public ownership, etc. may be debated. Step Three - Creating the Vision of the Desired End State A group of people aligned around a common vision are a very powerful force. John Kennedys vision of "put a man on the moon by the end of the decade" spurred NASA to unprecedented performance. Martin Luther Kings vision in his "I have a dream" speech energized the civil rights movement. Jack Welchs vision for GE in which he said that "We will be number one or number two in every category or we wont be in it" drove incredible energy and focus through GE. The vision of Mercedes Benz to "always make the best engineered car in the world" has been the hallmark of its focus for decades. Step Four - Developing the Core Work Processes The mention of work processes typically creates mixed reactions. Everyone agrees that some degree of process is required. Without defined processes a company would not be able to produce a consistent payroll. It would not be able to hire people. It would not have any consistent methodologies for its work. It could never assure any consistency or reliability. The problem for most cross-functional work processes is in the hand-offs. When processes cut across functions there are typically miscues and conflicting expectations or requirements between functional groups. Most companies have only a few core processes about five that drive their entire business. Everything else is an enabler. These core processes are virtually always cross-functional. Therefore, they must be developed by the entire senior management

team together. And that is the next step of the process of creating breakthrough change. Once these major cross-functional processes are developed at a fairly high level they can then be handed down to the next levels of the organization for more detailed implementation. One member of the senior management team must then be designated as the owner of the entire process throughout the organization. This step typically surfaces the strongest points of contention in the entire breakthrough change process. If this step is addressed seriously, issues of organizational structure begin to resolve themselves. After all, the structure should be designed to support how the work gets done. Form follows function. Step Five - Defining Key Roles and Responsibilities Every company has a relatively small number of key roles that are central to its business. There are usually a number of people who perform these roles, and they are the linking pins for one or several core processes. Some examples of such key roles are: project director, lead engineer, national account manager, customer service representative, senior consultant, systems engineer, account executive, etc. The next step is to identify the few key roles in the organization that are central to how the companys work gets done and then for the senior team collectively to define them.

Step Six - Modifying the Organizational Structure Most changes begin with a modification of the organizational structure. Unfortunately, most changes end there as well which is precisely why most large scale change is unsuccessful. Step six represents the point where examining and possibly modifying the organizational structure is both appropriate and necessary. Structure should exist to support what an organization is trying to accomplish (vision and strategy); how it is trying to do it (core work processes) and the requirements people have for their work (key roles). Now that these have been identified, the structure should be reviewed and, if necessary, re-designed. The fundamental question is: Does the existing structure enhance or at least not interfere with how the work needs to get done? If the structure is helpful or neutral, the general guideline is to leave it alone. Structural changes are very disruptive. They should only be made if they are truly necessary. If the structure is a barrier to the work that needs to be done, then it should quickly be re-aligned to meet its new requirements. This analysis and re-design should be a collaborative effort by the senior team. If individual team members cannot "check their positions and their egos at the door" then it may be necessary for the President to impose the new organization. This step should be reviewed and implemented quickly, in its entirety, based on what best serves the needs of the whole organization. This is not the time to allow the "right of infinite refusal" to stall the change process. Step Seven - Establishing the Key Performance Measures Every organization measures its performance. Unfortunately, most organizational measures have two fundamental flaws. First, there is a disproportional emphasis on financial measures. Financial measures are not direct performance measures. They are the consequences of company performance achieved or not achieved. By themselves, they indicate very little. Second, most performance measures cause the company to look through its rear view mirror. These measures

indicate past performance and do little to help guide future performance or have a positive impact on organizational results. This next step calls for the creation of a balanced scoreboard or dashboard of the key internal and external measures that provide a comprehensive view of the organizations performance, with as much insight as possible regarding their implications for the future. At the completion of this process by the senior management team you should have a limited set of defined measures that provide a balanced understanding of current performance, guidelines for improving short-term results, and the ability to assess and improve long-term organizational performance. Step Eight - Reviewing System-Wide Tools Tools are powerful forces in defining how an organization behaves. An enterprise-wide tool can be one of the most dramatic vehicles to create (or force) organizational change. Enterprise software systems have become very powerful forces for driving organizational behavior, and potentially creating highly value increased productivity. Such tools require an organization to define how it conducts its business, and impose a discipline on all individuals and functional areas to conform to the standards and processes defined by the tools. However, if the tool is not sufficiently flexible or does not match how business is actually conducted, the effect will be disastrous. Tools that impose their way of working in conflict with established business norms or practices will be strongly resisted. Step Nine - Develop Training that Enables Performance Training is an integral part of organizational design and behavior. It is essential to ensure that individuals have the knowledge and skills to perform in their current jobs and prepare for new ones. Training is also perceived by employees as a measure of the organizations commitment to them. In the current marketplace employees are encouraged to think of themselves as independent contractors selling their services for the best opportunity. Training (as a part of continuous learning) is an essential ingredient for retaining a nimble workforce.

Training is one of the most powerful vehicles for a company to create breakthrough change. It can achieve three simultaneous results. First, it builds alignment to the desired change. Second, it provides individuals with the knowledge and skills to implement the change. Third, it creates the opportunity for cross-functional communication in the implementation of company-wide initiatives. Step Ten Aligning the Reward Systems Traditionally reward systems have been approached conservatively in the form of salaries for professional employees, and hourly wages for non-exempt employees. In some companies annual bonuses or profit-sharing programs have been added, tied to organizational performance for that year. Companies have now started to use more sensitive vehicles to align reward systems to individual, team and organizational performance. Commissions for a sales force have long been in place. More recently, defined bonuses for the achievement of individual quarterly goals has become fairly widespread. Team rewards tied to specific project completion has also become common. Annual bonuses based on the achievement of specific performance goals is becoming the new norm. Though the techniques may differ, two dominant themes emerge. The first is the trend toward broad band job classification, providing much more flexibility in establishing individual compensation. The second is a much higher degree of at risk compensation tied to individual, team and organizational performance. If possible, reward systems should to be tied to the desired breakthrough change. Employees will pay great attention to adjustments in the reward system, especially if it is modified to focus on the desired behaviors and effects of the breakthrough changes.

POWERGRID, in line with its mandate, is discharging its responsibilities efficiently in Construction and Operation & Maintenance of inter-State transmission system and operation of Regional Power Grids. It has been notified as the Central Transmission Utility (CTU) of the country. Based on its impeccable performance in a short span of time, POWERGRID was recognized as the Miniratna CategoryI PSU by GoI w.e.f. Oct98. POWERGRID achieved many milestones & established benchmarks in various areas of its business operations and is playing a strategic role in Indian Power Sector in establishing & maintaining transmission infrastructure. Recognising POWERGRIDs sterling performance, Government of India conferred the status of Navratna to POWERGRID w.e.f 1st May, 2008.

POWERGRID has planned to create a strong and vibrant National Grid in the country in a phased manner to ensure optimum utilization of generating resources, conservation of ecosensitive right of way and for having flexibility to accommodate uncertainty of generation plans. Towards this, a perspective transmission plan has been evolved for strengthening the regional grids and to support the generation capacity addition program of about 78,000 MW during XI Plan. A framework for inter-regional interconnection has been evolved to establish National Grid in a phased manner. In line with the perspective plan, various inter-regional transmission schemes have been commissioned/ undertaken for implementation/ planned by POWERGRID. Inter-regional power transfer capacity of National Grid has been enhanced to about 17,000 MW in FY 2007-08. Four major power regions of the country namely, North-Eastern, Eastern, Western and Northern are now operating as one synchronous grid (same frequency). Southern Regional grid is connected to this synchronous grid through HVDC links.

In the last couple of years Southern Regional Grid(the southern region of POWERGRID CORPORATION OF INDIA LIMITED) has undergone steadfast changes in terms of quantity and quality of power supply and remarkable improvement has been achieved on the system security and stability front. The stable system operation in the region made it possible for the RLDC and SLDC operators not only to pay more attention on the important issues like voltage and frequency control, but also to concentrate on means of energy conservation by way of optimization of power transfer through parallel paths and reduction of transmission losses. This Paper aims at discussing the specific problems that SR grid was experiencing earlier, brief details of the cardinal events which were mainly responsible for bringing about the improvements and the specific actions taken by the load dispatchers for improving system voltages and reducing the transmission losses in order to achieve energy conservation in the grid. Southern Regional Grid is a large power system comprising of more than 32000 MW installed capacity covering approximately 651000 [Link]. area. The major bulk power consumers of Southern Region (SR) are the States of Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Union Territory of Pondicherry which are interconnected mainly through 400 kV network and a few 220 kV inter-State lines. In SR, the two major Central Generating Stations connected to the 400 kV grid are Ramagundam STPS (2600 MW in Andhra Pradesh) and Neyveli Thermal Power Station (2490 MW in Tamil Nadu), located in the northern and southern parts of SR. Two Nuclear Power Stations of 440 MW each are located at Kalpakkam (Tamil Nadu) and Kaiga (Karnataka) of SR. The Thermal-Hydro mix in the SR is in the ratio of 67:33 and currently the SR grids peak demand is in the range of around 22500 MW. A large component of the load in SR is predominantly agricultural in nature. The HVDC Transmission Capacity of SR with Eastern Region (ER) through the HVDC Gajuwaka back-to-back is 1000 MW and through Talcher-Kolar bi-pole is 2000 MW. Similarly the capacity with Western Region (WR) through Chandrapur back-to-back is 1000 MW.

SR GRID TYPICAL ISSUES IN THE PAST In the past, for most of the time the Southern Regional grid used to operate at precariously low frequency at 48 Hz. and around. The system voltages also used to operate at very low levels leading to severe insecurity in the grid operation. The load centres like Bangalore used to experience the voltages at 400 kV bus as low as 300 kV and some of the main tie lines in the Region used to get over loaded, dropping the system voltages and causing high losses in the grid. The instability caused due to the low frequently resulting into system separation and grid disturbances.
POWER SWING S
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GRID OPERATION: A TIGHT ROPE WALK

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frequency and low voltage operation very frequently used to trigger grid contingencies very This insecure and unstable grid operation caused not only immense financial loss to the industry but also the inefficient operation of the electrical equipment leading to increased electrical losses. Thus in the past, as depicted in Fig. 1.0, for most of the time, the grid operators used to focus on fire fighting rather than optimization and economy and the end result being costly and low quality power supplied to the consumer. Fig. operation 2.0 SR GRID OPERATION PRESENT STATUS
FREQUENCY DURATION CURVE 2002-03, 2003-04 & 2004-05
51.00

1.0 - Typical issues of Grid

<49.0 2004-05 0.13 2.30 49.48

49.0 & <50.5 98.70 97.30 48.51

50.5 & Above 0.17 0.44 2.01

Max 50.90 51.17 51.37

Min 48.62 48.18 47.69

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ABT, Transmission augmentation, Generation capacity addition and state-of-the-art ULDC scheme. Fig. 2.0 shows the typical frequency duration curves of SR for the years 2002, 2003 and 2004 and from this, it is very clear that the frequency profile in Southern Region has improved over the period phenomenally. Fig. duration curve - SR 2.0 Frequency

COMPARISION OF BANGALORE VOLTAGE

-TYPICAL DAY

The voltages in the Region also have been lifted to the permissible band. Fig. 3.0
VOLTAGE IN KV --->

420 410 400 390 380 370 360 350

shows improvement in Bangalore Voltage by comparing the voltage trend for a typical day during the years 2002, 2003 and 2004. This improvement had not only provided quality of power to the consumers but also reduced the

VOLTAGE PROFILE MEANS LESS ELECTRICAL LOSSES

BETTER

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FARMERS IN KARNATAKA ARE HAPPY WITH FEWER HOURS OF QUALITY POWER!!. EFFICIENCY OF PUMPS AT TG HALLI WATER WORKS IMPROVED!

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electrical losses in the various electrical applications and in the industries. In addition to improvement in the frequency and voltages, to a large extent the follow-up of the merit order operation in SR has also resulted in reduction in the overall net cost to the end consumer.

CARDINAL EVENTS The dramatic change in the system operation in SR was mainly made possible by the following cardinal events in the last two-three years: [Link] of new scientific commercial mechanism, i.e. ABT not only brought merit order operation but also grid discipline, thereby giving quality supply to the consumers.

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[Link] was remarkable system strengthening of the transmission network, most notably with the commissioning of the Talcher-Kolar HVDC link and its associated 400 kV AC lines. [Link] generation capacity addition took place with the commissioning of Talcher STPP Stage II which was embedded in ER but dedicated entirely to SR beneficiaries. The capacity addition of Neyveli TPS-I expansion, STCMS, Simhadri TPS, Ramagundam expansion and Almatti, etc. also gave rise to considerable growth in the capacity. [Link] state-of-the-art technology, Unified scheme for Load Despatch and Communication in SR increased the visibility of the complete grid to the operators. Apart from assisting in real time operation, the ULDC scheme also helped the system operator to carry out on-line as well as off-line load flow studies to assess the losses and other critical parameters like line loading, frequency and voltage, etc. under different operating conditions and take corrective actions as and when required. [Link] the reforms taking place all over the country, the State power utilities started focusing more on commercial priorities and in the process took various measures like (a) shifting their loads for flattening load curves, (b) managing the hydro resources optimally and (c) utilizing pumped hydro wherever available. [Link] had effected the grid management not only through operational means but also through systematic, reliable and timely implementation of the commercial settlement system, i.e. ABT.

CONCLUSION

The power sector in India is undergoing radical changes and from the era of shortages/load interruptions, we are moving fast towards adequacy and quality supply. This has been made possible mainly due to reforms at all possible levels of power sector, viz. accelerated expansion in generation, transmission and distribution; restructuring of different organizations/utilities with the ultimate goal of making them self sustaining and objective oriented; changes in the legislations to bring in efficiency and economy; implementing a scientific and rationalized commercial mechanism which is specially designed to suit the conditions of Indian grid and encouraging the era of transparency and competition. If we look into the changes in the system parameters and other grid related indices it would be evidently clear that Southern Regional Grid as a whole as well as all the constituents of the Region have been immensely benefited due to the fact that most of the players of the grid have responded towards the change [Link] implementation of similar mechanism and economics at intra-state level will further optimize the utilization of resources and energy conservation.