OB in Action Case Analysis: HCL Technologies Name University OB in Action Case Analysis: HCL Technologies 1. What were the external and internal forces for change at HCL? Dean Anderson speaks of the forces for change as the factors that initiate “dynamic shifts in the environment” which lead to establishment of “new requirements for success” (Anderson, 2010)…
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Competitor strength was increasing by 40% or 50% a year, and posed a major threat to HCL, despite the fact that HCL’s revenues were increasing by 30% as well. In an industry where competition was already very tough, it was very important to consider the competitor’s strengths and weaknesses while making a decision. Moreover, there were shifts in market demand, where customers were more inclined towards personalized services as compared to standardized ones, ushering HCL to change in response to customer demands. The IT is an industry where firms need to be highly responsive to even slight changes in customer demands in order to retain or advance upon their market share. Apart from the external drivers of change, there were internal forces for change that existed within HCL in the form of organizational structure and employee morale. While Vineet Nayar identified that employees were the main value for HCL as a firm, the hierarchical pyramid “made it difficult for employees to add value” (Kreitner & Kinicki, 2009). Managers, while being the ones coming into direct contact with the customer, felt bound by the restrictions from the higher management of HCL. The result of this was a generalized feeling amongst the employees that the firm does not see them as valuable, and thus, were not motivated enough to achieve different goals. Introduction of changes that break the hierarchical barrier would have eventual consequences of boosting employee morale, which would in turn affect overall productivity. 2. To what extent did Vineet Nayar follow the change models proposed by Lewin and Kotter? Explain. Vineet Nayar followed the change models of both Lewin and Kotter to a great extent. Lewin’s model for change comprises of three steps, namely, unfreeze-move-refreeze (Lunenburg, 2010). Nayar was successful in initiating the unfreeze phase within HCL by first creating awareness that it is crucial for the firm to transform. The move phase was also duly followed through implementation of a systematic plan of action that allowed HCL and its employees to head towards a single direction. The final step, refreezing the company into an equilibrium within which it can effectively operate was also achieved in the success story of HCL. The 8 step Kotter model, based on the primary basis of the Lewin model, is a more specific guide to implementing change. Nayar followed this model successfully as well. First, a sense of urgency was established by identifying the external and internal forces of change. Next, managers were brought into confidence so that change is not implemented but accepted by HCL. Developing a broader vision and communicating it to the employees followed after which hurdles to the proposed change were removed. Short term goals in the form of setting up a smart service desk and initiating online planning process were achieved on basis of which further changes were brought in. This plan of action was concluded by reinforcing the need for a constant responsiveness to change and innovation. Thus, the Kotter model, in addition to the basic Lewin model, was effectively followed by Vineet Nayar. 3. Which of the target elements of change within the systems model of change were affected by the changes at HCL? The changes in HCL affected a number of the target elements of change identified in the systems mode
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