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Organizational Change and Development: A Case Study in the Indian Electricity Market

• Pawan Budhwar ,
• Jyotsna Bhatnagar &
• Debi Saini  

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The present economic growth of India is largely an outcome of the liberalization of its economic policies in 1991. Since gaining independence in 1947, India adopted a “mixed economy” approach (emphasizing both private and public enterprise). This had the effect of reducing both entrepreneurship and global competitiveness. Despite the formalities of planning, the Indian economy reached its worst in 1990 and witnessed a double digit rate of inflation, decelerated industrial production, fiscal indiscipline, a very high ratio of borrowing to the GNP (both internal and external) and a dismally low level of foreign exchange reserves. The World Bank and the IMF agreed to bail out India at that time on the condition that it changed to a “free market economy” from what at the time was a regulated regime. To meet the challenges, the government announced a series of economic policies, followed by a new industrial policy supported by fiscal and trade policies. A number of reforms were made in the public sector that affected trade and exchange policy. At the same time, the banking sector together with activity in foreign investment was liberalized.

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Further reading

Budhwar, P. and Varma, A. (2011a) (eds) Doing Business in India , London: Routledge.

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Budhwar, P. and Varma, A. (2011b) “Emerging HR Management in India and the way forward”, Organizational Dynamics , 40(4), pp. 317–25.

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Budhwar, P. and Varma, A. (2010) “Guest Editors’ Introduction: Emerging Patterns of HRM in the New Indian Economic Environment”, Human Resource Management , 49(3), pp. 343–51.

Budhwar, P. and Bhatnagar, J. (2009) The Changing Face of People Management in India , London: Routledge.

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Burnes, B. (2006) Managing Change , Harlow: FT Prentice-Hall.

Clardy, A. (2004) “Toward an HRD Auditing Protocol: Assessing HRD Risk Management Practices”, HumanResourceDevelopment Review , 3(2), pp. 124–50.

Kotter, J. P. and Cohen, D. S. (2006) The Heart of Change: Real-life Stories of How People Change their Organizations , Boston: Harvard Business School Press.

Ramnarayan, S. (2003) “Changing Mindsets of Middle-level Officers in Government Organizations”, Vikalpa , 28(4), pp. 63–76.

Sharma, R. R. (2007) Change Management: Concepts and Applications , New Delhi: Tata McGraw-Hill.

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Budhwar, P., Bhatnagar, J., Saini, D. (2012). Organizational Change and Development: A Case Study in the Indian Electricity Market. In: Rathbone, C.L.H. (eds) Ready for Change?. Palgrave Macmillan, London. https://doi.org/10.1057/9781137008404_9

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Cases and Exercises in Organization Development & Change

• Donald L. Anderson - University of Denver, USA
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Cases and Exercises in Organization Development & Change, Second Edition encourages students to practice organization development (OD) skills in unison with learning about theories of organizational change and human behavior. The book includes a comprehensive collection of cases about the OD process and organization-wide, team, and individual interventions, including global OD, dialogic OD, and OD in virtual organizations. In addition to real-world cases, author Donald L. Anderson gives students practical and experiential exercises that make the course material come alive through realistic scenarios that managers and organizational change practitioners regularly experience.

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• New cases discuss relevant areas of growing importance to OD practitioners, encouraging students to think about topics such as global OD, dialogic OD, and OD in virtual organizations.
• Each case contains learning objectives, discussion questions, and suggestions for further reading, encouraging students to take an active role to interpret and discover the cases’ meaning.
• The revised structure aligns with Organization Development, Fourth Edition , making it easier for students and instructors to use the two books simultaneously in a semester.

KEY FEATURES

• Provides rich scenarios of organizational life , with each case constructed as a brief scene in which students are asked to weigh the pros and cons of alternate courses of action.
• Written by experts in the field , these original cases focus precisely on a specific topic in the OD process or intervention method.
• Cases represent a wide range of industries in which OD is practiced, exposing students to issues in for-profit businesses, educational institutions, government agencies, and health care organizations.

  Includes a variety of exercises including self-assessment tools, role-play exercises, and individual or group simulations to enhance students' skill development in acting as change agents.

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A Case Study of Leadership Development and Organizational Change

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Organizational Development Case Study

Organization development case study: introduction.

For any organization to be successful in its field and progress to profitability, it is important that managers and employees in its leadership embrace organizational development. According to Cummings and Worley, “Organizational Development (OD) is a planned long-term effort led and supported through the top management to improve an organization’s ability in a bid to solve its own problems by continuously working together and managing the culture using behavioral skills” (2005, p. 1).

The paper uses the Tedtec Company Limited, which is a fictional organization. The company chosen for this case study is respected in the country of origin. It is among the pioneers of organizational development in the country. Tedtec Company Limited that is located in India has been in operation for the last 70 years dealing with machinery, engineering, production, and construction works.

According to the results of the performance index of India’s companies, Tedtec Company Limited “is also adjudged India’s best managed and most respected company on various attributes of customer delight and shareholder value” (Roy, 2006, p. 25). The case study on organizational development was based on this company because of its significant history in this field in India.

Company profile

Tedtec Company Limited is among the most respected of India’s private sector companies that deal with technology, construction, engineering, and manufacturing. The company has been in existence for about seven decades with a strong international presence including offices in the China as well as her Gulf neighbors.

A wide marketing and distribution network and decades of strong customer focused approach has ensured that the company is the leader in its field. The company also “believes that progress must be achieved in harmony with environment” (Roy, 2006, p. 25). This claim has informed its commitment to protection of the environment and participation in community welfare.

Some of the achievements that the company has made include the record for having made the largest coal gasifier in India that it exports to China.

It is the largest FCC regenerator for a refinery, which is the longest coal conveyer in the world besides being Asia’s highest viaduct and the world’s largest EO reactor for a protochemical complex in the Gulf. The company also took part in the construction of India’s first nuclear powered submarine. It has won a number of local and international awards and recognitions.

The company is also one of the most profitable construction companies in the region with thousands of employees being employed directly or indirectly by the company. A policy of giving back to the society has ensured that the company establishes good relations with workers and the communities in which it is involved, with only the issue of pollution being the major challenge.

Tedtec Company Limited has however managed to remain viable and important within the manufacturing and construction sector even with the financial crisis experienced over the years in this part of the world and elsewhere in the world.

Diagnostic methods

The methods used for diagnosis in this particular organization included interviews and questionnaires, which were addressed to the employees in the organization. Initially, the company had experienced faults in its existing appraisal system at some point in its history. This challenge necessitated a professional correction of the system.

The company elicited help from some of experts in this field with eminent professors being invited to carry out a study and assessment of the appraisal process in the company (Wilson, 2003, p. 13). Walter Jay and Engineer Schwartz Raymond were the professors that were consulted in the evaluation process for the company.

In their study of the appraisal process in the company, they began by interviewing departmental heads and their subordinates. To accomplish the interview, they used diagnosis or action research with the results being recorded and analyzed against a background of other results they had gotten elsewhere and against the existing case studies.

Analysis and feedback methods

From the diagnostic methods used in the company, a number of feedbacks were obtained. In the analysis of information provided by the subordinates in the various departments, there was apparent communication breakdown in the administrative hierarchy with junior workers not getting information and feedback on their performance in the company.

This case was despite their expressed a desire to get the feedback, which was not forthcoming. Another interpretation of the results of the feedback included the fact that the managerial staff members were responsible for a large number of employees thus making an appraisal of their subordinates difficult.

However, one shortcoming was that the appraisal form used was too lengthy meaning that the number of employees participating was reduced due to time constraint.

The results of the feedback were presented by the two professors to the top management of the company for consideration and formulation of suggestions and recommendations on the possible solutions to the actual problem.

According to Cummings and Worley, an appraisal system is important in any organization as it helps the company’s employees to understand their strengths and weaknesses and the progress they are making in the job performance (2005, p. 15).

It also enables them to understand the options available for growth in the company. Cummings and Worley claim that the process should “address the issues of appraisal, potential, counseling, career development, and training all in one” (2005, p. 15).

SWOT analysis

As in the case of IKEA that was discussed as a case study, Tedtec Company Limited used SWOT analysis in the achievement of objectives and planning of its strategic achievements.

As discussed in the essay and in the literature on planning strategies in organizations, this form of analysis investigates the Strengths, Weaknesses, Opportunities, and Threats that an organization establishes in its course of operations and development (Cummings, & Worley, 2005, p. 15).

According to Cummings and Worley, threats are external to an organization, and are outside the control of the company with the best examples being economic performance of the country, the levels of technology at the time, social changes, and the environmental conditions (2005, p. 24).

On the other hand, strengths and weaknesses are internal to an organization thus serving to counter the threats that are outside the organization’s control (Cummings, & Worley, 2005, p. 25).

As an opportunity, Tedtec Company Limited has over the years invested in manufacturing and construction industry. It boasts of creating a respected brand in India. The company has been in existence since 1938 when it started as a manufacturer of daily equipment.

Therefore, it has a well-established organizational culture and management policies that stand the test of time. The company also has vast investments in technology, investing heavily in the latest technology available in the industry. This opportunity has created a competitive edge over her competitors.

As strength, the organizational culture in the organization has been described as a goal-oriented one with the employees largely reporting career satisfaction when working with the company.

The company has invested in a number of international brands mainly in the region thus ensuring relevance and competitiveness in the industry. With diversification of its operations, the organization is now able to produce different products besides offering a range of services in the region.

A significant weakness that the organization has established in its operations is the pollution that has been created in the production method in the process of rectification following the ambitious investment in environmental conservation and social responsibility.

The company also faces a threat in operations in the form of the financial crisis that, as demonstrated in the last one, has the ability to paralyze its operations. The threat is however countered by the cautious financial investment in other market coupled with strict financial auditing and consultations.

OD intervention options and general risk and value scenarios

The assessment of risks in an organization is important as it enables the management to formulate the desired change and effect on it. This assessment is quite crucial for any company since it makes it aware and ready for any particular risk that it might incur.

Many companies have experienced an untimely closure following the occurrence of risks that it did not expect or rather risks that were not planned for in the event of their occurrence.

For Tedtec Company Limited, the specific interventions that were necessary included diversification of products and expansion into other markets to counter the decline in demand in the home country in a bid to create new opportunities to secure industrial relevance.

In the analysis of vales, one of the relevant values to the company is customer service. The company has established a number of methods of ensuring the customers are loyal to it. Customer loyalty is recognized as one of the factors leading to the success of many organizations and that the company is no exception (Cummings, & Worley, 2005, p. 25).

To guarantee exceptional customer service, organizations need to have an effective indicator in place (Cummings, & Worley, 2005, p. 21). For Tedtec Company Limited, customer loyalty rating is the key indicator. The organization has commissioned a number of surveys to find out the satisfaction of its clients on its products and services.

According to Cummings and Worley, this strategy is an effective way of doing it (2005, p. 21). The results have then been used to gauge performance and or inform decision-making.

The expected benefits include improved service provision and customer satisfaction as well as profitability. The company also utilizes feedback from clients especially complaints that are provided as feedback to change its operations.

Since Tedtec Company Limited carries out many civil projects that are funded by the Indian government and other governments, the quality of work is also evaluated by government contractors as well as other state agencies concerned with quality control (Cummings, & Worley, 2005, p. 25).

This ensures a subjective review of products and services provided thus ensuring that there is quality in the future projects. The strategy has enabled the company to win a number of tenders based on previous projects that were evaluated as being professionally carried out.

Evaluation methods

According to Cummings and Worley, post change evaluation in an organization is important since it presents the executives with a picture of the effects of the change (2005, p. 17) made by the change agent “in consultation with the management of the organization” (Wilson, 2003, p. 23). Wilson also states, “The evaluation sets initial agreed aims and objectives against the current, post-change situation” (2003, p. 23).

In the analysis made of Tedtec Company Limited, the attitude and satisfaction of workers as well as the financial outlook and performance ratings were made thus being some of the most common areas of evaluations in an organization development analysis.

The results of the evaluation were then presented to the management. The summary consisted of areas where the effected change was successful, recommendation for improvement, areas that were unsuccessful and not in line with the company objectives, areas that required constant monitoring, and the suggested rolling evaluation program.

For Tedtec Company Limited, the results showed success in areas of change such as improved organizational performance since the entry of the firm in to the international market.

The change in organizational culture, which was made mainly involving the diversification of the employee base, was also reported to influence the company in a positive manner with the employees reporting improved satisfaction from the working conditions.

The employees also reported a breakdown in communication and ineffective management mainly due to the large size of the personnel department, which was created by expansion. This exposition meant that the employees were getting inadequate attention from their bosses.

Recommendations

One of the recommendations is that the company should consider splitting or bifurcation of the personnel department in the company to ensure that fewer employees are under the supervision of managers in the various departments. It is said that the smaller the number of subordinates that each manager is responsible for, the better the output of the employees (Wilson, 2003, p. 21).

The company should also consider increasing the number of managerial staff especially those in the human resource department in an attempt to improve the contact between the administration and subordinates (Wilson, 2003, p. 18). Another recommendation is that the organization should monitor the human resource department and the marketing department to enhance customer loyalty.

OD Case Study: Conclusion

In conclusion, organizational development is an important aspect in the success of companies. Organizations that wish to perform well have a well established organizational development plan that stipulates the issues that they need to do or rather the issues that they need to be aware of so that they remain not only in track but also ready for any unexpected emergency.

The paper has used the Tedtec Company Limited as a fictional company in an attempt to address this key issue of organizational development. Thus, its evaluation should be carried out in a formal manner. Tedtec Company Limited is considered to have made significant organizational changes since its inception. The changes have affected its operations in a number of ways.

An evaluation of its organizational development established a number of threats, weaknesses, and strengths, as well as the effects of the organizational change. These elements were then evaluated with recommendations and suggestions being made to the development specialists and business executives of the organization.

Reference List

Cummings, T., & Worley, G. (2005). Organization development and change . Mason, Ohio: Thomson/South-Western.

Roy, S. (2006-2005). Made in India: a study of emerging competitiveness . New Delhi: Tata McGraw-Hill Pub. Co.

Wilson, D. (2003). Promoting institutional & organizational development . London: Dept. for International Development.

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Michelle Levene (A)

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John and Andrea Rice: Entrepreneurship and Life

• Howard H. Stevenson
• Janet Kraus
• Shirley M. Spence

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4 th International Case Study Conference (December 14-15, 2023)

Theme: the future of case method.

⇨Deliberations on The Future of Case Method ⇨Cash prizes for Top 3 case studies ⇨Editorial and mentoring support to selected case authors ⇨Opportunity to publish case studies in reputed indexed journals and case repositories ⇨Networking opportunity with experts in case teaching and case writing Contact Us Email: [email protected] Register here: https://www.ifheindia.org/conference/ICSC2023/ Tel: +91 96409 01313

ICMR (IBS Center for Management Research)

Asia Pacific's largest case study repository for management students, faculties, trainers and corporate executives

ICMR is Asia's most popular repository of management case studies. ICMR Case Collection provides Teachers, Corporate Trainers, and Management Professionals with a variety of teaching and reference material. The collection consists of case studies on a wide range of companies and industries - both Indian and international. ICMR is involved in business research, management consulting, and the development of case studies and courseware in management. ICMR also provides knowledge process outsourcing services to international clients. Over 10 million copies of ICMR case studies have been printed in international and Indian textbooks, workbooks and case study volumes. More than 200,000 individual copies of our case studies have been purchased by many of the leading business schools and universities around the world. Our case studies have won prizes in several global case writing competitions, and also appear in many international management textbooks. More than 5500 case studies, short case studies, and business reports are available for immediate download from this site. The material is available for download as pdf files, with a 'Do Not Copy' watermark.

Case Study Categories

Varieties and numbers of case studies are available in our repository in different management subject categories. Below are the most popular categories in management areas:

Business Strategy

Human resource management, it and systems, leadership and entrepreneurship, business ethics, awards and achievements.

ICMR cases have won awards in some of the most prestigious global case writing competitions such as EFMD, oikos, John Molson, CEIBS, The Case Centre, E-PARCC and many more...

New Arrivals

Please check our recent case studies

Corporate Governance Crisis at Startups: The Zilingo Story

The case discusses how Zilingo Pte Ltd (Zilingo), a Singapore-based B2B fashion tech platform, ended up in liquidation after a protracted crisis due to issues that led to corporate governance failure. Founded in 2016 by Ankiti Bose (Bose) and Dhruv Kapoor, Zilingo was an online fashion and beauty startup company that empowered apparel supply chain players to produce, source, and trade efficiently through its technology platform. It was one of Southeast Asia’s vaunted startups...

Amazon's Private Label Brands: An Ethical Perspective

The case “Amazon’s Private Label Brands: An Ethical Perspective” discusses the ethical implications surrounding the promotion of US-based multinational technology company Amazon.com, Inc. (Amazon) of Amazon Private Label (APL) products on its online marketplace. The case starts out with a brief look at– the world's largest e-commerce platform's launch of various APL products from the late 2000s. It then delves into the various controversies surrounding APL products through the years...

Twitter under Elon Musk: Present Tense, Future Perfect?

The case discusses the problems faced by social media platform Twitter and its future under the ownership of Elon Musk. After he acquired Twitter for US$44 billion in October 2022, Musk primarily known for his innovative efforts, introduced a list of controversial policy and feature changes to the platform. These included rebranding Twitter to ‘X’, making policy changes and sweeping layoffs, resorting to cost cutting, reinstating accounts, and introducing paid verification...

Google's Post-Pandemic Multi-Purpose Workplace Design

The case touches upon the early office design initiatives at Google including at its headquarters Googolplex. Next, it describes in detail how Google’s Real Estate and Workplace Services team (REWS) focused on redesigning the existing office spaces in 2022 and creating and testing new multi-purpose offices and private workspaces to enable employees to collaborate effectively across work environments. Google designed Team Pods with chairs, desks, white boards, and storage units on casters that could be shifted based...

Reliance's Foreign Currency Bond

The case study is about Reliance Industries Ltd (RIL)'s foreign currency bond issuance and listing on international stock exchanges. The case starts with a brief history of the company, from the founding of RIL by Dhirubhai Ambani in 1966 to being led by Mukesh Ambani in 2022.The case then moves on to the details of RIL's financials, showcasing how the company has grown over the years, and how efficiently it has raised funds from the global capital market and utilized these funds for expansion. Finally, it delves into the details of foreign currency bonds issued by RIL...

Enbridge: A Diversity, Equity & Inclusion (DEI) Leader in the Energy Industry

The case describes the various initiatives taken by Enbridge, a Canadian energy company, to create a diverse and inclusive culture where employees would feel good coming to work, collaborate across teams, and be successful and grow their careers. The case first touches upon the main goals of the D&I strategy put in place at Enbridge. It then describes how Enbridge decided to encourage its employee community through various initiatives that included activities, education, and networking...

ICMR Books Collections

ICMR books are ideal resources designed to help deepen knowledge on the management theories and concepts helping to enhance decision-making skills

Strategic management consists of a set of decisions and actions resulting in the formulation and implementation of strategies designed to achieve the objectives of an organization. It involves taking decisions about the products, location, and the organization's structure-decisions that determine the survival of the organization in the short and long term.....

Business Communication

Communication is an essential aspect of business life. Everyday, business persons have to communicate with people at different levels of the organization or with people external to the organization. And in this globalized environment they also have to communicate with people from different countries, with different cultural backgrounds....

Economics For Managers

Economics is the study of how economic agents or societies choose to use scarce resources to satisfy unlimited wants. It examines how resources can be optimally distributed to satisfy the needs of individuals and society as a whole. Knowledge of economics helps businesses become more profitable through proper allocation of resources....

Testimonials

Case studies are an important tool to highlight managerial dilemmas. The ICMR case studies are of highest quality and tackle important managerial issues, including social and environmental sustainability. The case studies have repeatedly won international case study contests and have been tested around the globe with much success.

-Dr. Michael Pirson, Assistant Professor of Management, Fordham University; Research Fellow in Psychology; Harvard University; Co-founder and Academic Director, Humanet

I am impressed about the quality of ICMR cases, combining relevant issues, innovative organizationa and excellent case writing handcraft. In recent years, ICMR cases have performed extraordinarily well within the double-blind reviewed annual oikos Global Case Writing Competition.

-Dr. Jost Hamschmidt, Managing Director, oikos Foundation, St. Gallen, Switzerland; Head, oikos Global Case Writing Competition Program

Our Premium Services

ICMR provides knowledge partnership services as well as training services

• February 07, 2020

IBS Center for Management Research (ICMR) offers a subscription model for the purchase of case studies. At present, we are offering two subscription options…

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While ICMR regularly comes out with casebooks, case packs, and e-books comprising our cases, we have witnessed a high demand for our cases for…

ICMR India conducts workshops to train all the interested individuals in case research and writing. For more details, please write a mail to…

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• Publications

Reducing Embodied Carbon in Cities: Nine Solutions for Greener Buildings and Communities

As cities grow in population and importance, urban construction will continue to gather pace. It is estimated that global floor area is expected to double by 2060, the equivalent of adding New York City every month for the next 40 years. This white paper highlights case studies and nine innovative solutions that provide models for cities seeking to meet sustainable development goals.

Addressing the amount of carbon released due to new construction and infrastructure development, as well as the decommissioning of obsolete buildings, is critical to decarbonizing the built environment. Collectively referred to as “embodied carbon emissions”, this is the next frontier in mitigating climate change.

The paper identifies common challenges cities face in the effort to reduce embodied carbon emissions and outlines best practices that have been developed and tested by pioneer cities, and which are are adaptable, scalable and designed to accelerate innovation across the construction industry.

World Economic Forum reports may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License , and in accordance with our Terms of Use .