Effect of Management Change | Case Study

Effect of Management Change Case Study1.1 BACKGROUNDChange has always been with man from creation. Man and plants get down evolved and adapted to the environment anytime the urgency arises. Failure to assortment, most often than non leads to extinction. The general perception is that c atomic number 18ens atomic number 18 made always for the better, and sometimes, it is for the worst. At other times also, there is no invite for variegate.Change is an inevitable phenomenon. A corpse would acquire to undergo variety show at some point in time. The effectiveness of the change to a large extent depends on how it is managed. For an boldness to survive, it is necessary for it to continue to adapt to its changing environment. Change is the singular featureor that upgrades a system to suit its current environment.Change in focal point is one typical way of effecting change. Change in oversight can take the stamp of privatization, re-shuffling or merging. Most times, old ma nagers leave with their ideologies and new managers come in with new ones.Vodafone Ghana is one company in the Telecommunication Industry which has experienced commission change in recent times.Vodafone Ghana, formerly Ghana Telecom, was the national telecommunication company of Ghana. In 2006, it had around 400,000 customers for fixed and mobile telephony and cyberspace services.On 3rd July 2008, the sale of the company for $900m to Vodafone grouping was announced. After the trans pull through closed, Vodafone had a 70% stake in the company, while the GhanaianGovernment contain a 30% stake.On 16th April 2009, the company was rebranded as Vodafone Ghana. The rebranding,seeks to lead to a stiff competition among the operators in the Ghanaian mobile market.1.2 PROBLEM STATEMENT.Changes in almost all boldnesss be not freely welcomed by the organization members. The reluctance to change is mostly as a result of fear of the unk in a flashn. Changes in management in organizations a r resisted by staff for lack of knowledge of the impact the change leave bring. The impact could be positive or negative. The change impart at the tail end affect the exercise of the staff and for that matter the organization as a whole.Change in management in reality changes the status quo of how things atomic number 18 with with(p). How the change is managed to get everyone along is crucial to the effectiveness of the organization. The performance of the organization is also translated in the response by the organizations external customers, authorities and regulatory bodies to the change.1.3 PURPOSE/AIMSThe purpose of the study will be to respect the performance of Vodafone Ghana, as there has been change in management. The research will assess the performance of the then Ghana Telecom and its management team for the last two years and do a comparative analysis with the performance of the now Vodafone Ghana and its new set of management team. At the end of the study, the research will find out which of the two management teams led to a high performance of Vodafone Ghana.1.4 OBJECTIVES OF THE STUDYThe objectives of the study will embroil the side by side(p)To identify the effect of change in management on the performance of Vodafone Ghana.To identify the factors that necessitated the change in management of Vodafone Ghana.To ascertain the challenges of the process (change in management) and how it was managed to ensure that it is on track to achieving the required performance.1.5 SIGNIFICANCE OF THE STUDYIt is believed that, the results of this study will do the followingEnable internal and external customers to know how the management team of the then Ghana Telecom fared in the last two years of their being as against the first two years of Vodafone Ghana.Inform the current management team of their performance in Ghana as far as Vodafone Ghana is concerned. go as a source of secondary data for further research in the area of change in management .1.6 RESEARCH QUESTIONS AND HYPOTHESISThe research apparent motion for this study will beWhat are the effects of Change in Management on the Performance of Vodafone Ghana?The null hypothesis for the study will beHo change in management does not significantly affect performance.The alternative hypothesis for the study will beH1 change in management significantly affects performance.1.7 SCOPE AND ORGANISATION OF THE STUDYThe research will be sort into five chapters. The first chapter is Introduction. The introduction will include an overview of the downplay of the study, the focal point of the statement of the problem, an explanation of the study, key objectives of the study, the reasons for the study, the question and hypothesis. The second chapter will review literature, that is, the theoretical and the empirical. It will explain relevant theories that relate to the content area as comfortably as break in a description of literature that has been practically detect and valida ted objectively on the subject matter. It will again explain certain terms in the research. The third chapter will present the systemology. It shall give a general description of the design of the performance. It will include population and sampling, instrumentation and statistical analysis. The quaternate chapter will be results and discussions, where data collected will be analyzed and findings experimented. The fifth chapter will draw conclusions and give recommendations.LITERATURE REVIEWIt is often said that two heads are better than one. Most often than not, we see individuals coming together to undertake projects that cannot be done individually. peerless of the most known ways is through organization. An organization according to (Robbins Coulter, 1999) is a deliberate arrangement of people to accomplish some specific purpose.Organizations in trying to accomplish their goals get proper management systems in place.2.1 THEORETICAL LITERATUREDEFINITIONManagement is the proc ess of achieving organizational goals by engaging in the four major functions of planning, organizing, leading and controlling. Bartol Martin (1998).Bartol and Martin emphasized on the fact that, it is an on liberation process that begins with planning and ends with controlling. It never ends because the controlling checks if the organization is on the secure raceway as far as the plans (objectives) are concerned and as such, the results serve as input again in the process.Robbins Decenzo (2001) also define the term management as the process of getting things done, effectively and efficiently, through and with other people. Like Bartol and Martin, the process in their definition pointed to the four main functions of management. Thus planning, organizing, leading and controlling. However, they believed that managers should not only be able to engage in the four major functions but managers should be able to do that simultaneously as the functions are unified and interdependent. Efficiency in their definition means do best use of the resources available. This brings into play the scarcity of the resource which has numerous uses. It is always prudent to minimize blow out as much as possible when using these resources. Minimizing waste in the use of resources will lead to high crosswayivity and cogency.Effectiveness means choosing the right goals, strategies and proletariats in a present condition. In essence, effectiveness is doing the right things while efficiency is doing things right. There are two well known ways of achieving efficiency and effectiveness which areThe organization increasing the output with the same aim of input.The organization producing the same output with a reduced input train.Koontz Weihrich (1990) also delimit management as a process of designing and maintaining an environment in which individuals drilling together in groups efficiently accomplish selected aims.Koontz and Weihrich like Robbins and Decenzo, and Bartol and M artins, believed that managers engage in the main functions of planning, organizing, staffing, leading and controlling. They also believed that management does not necessarily apply to a particular organization but rather, all kinds of organizations. Aside that, they believed that irrespective of the level a manger finds himself he needs to manage. They also underscored efficiency and effectiveness in trying to carry through the set goals.They however, believed that all managers tenseness on making surplus. This may not be necessarily true as some managers are found managing non-profit making organizations. Most managers in non-profit making organizations normally focus on the well-being and satisfaction of some people rather than making profit.All the stated definitions basically emphasize on management being displace in place the right atmosphere and conditions so that the set goals can be accomplished. All the definitions also highlight the major functions that are performed b y managers and the fact that it should be done in an efficient and effective manner.Management is therefore a phenomenon that applies not only to organizations but also the daily lives of individuals.MANAGERSManagers are individuals who are engaged in the combination of the four functions of management to accomplish organizational goals.LEVELS OF MANAGEMENTManagerial jobs in organizations allow for the categorization of managers into three levels. masking Managers It is the highest level and concerned with creating the organizations goals, overall strategy and operating policies. ( wire-haired pointing griffon, 1999).According to Rue Byars (2003), Senior management are not involved in the organizations sidereal day to day problems, but concentrate on setting the direction of the organization.Jennifer M George (2004), argued that drop dead managers are responsible for the performance of all departments and therefore a cross departmental responsibility. Top managers are responsible for the successes and failures of the organization and most often have their performance scrutinized by the organizations internal and external customers. In Management by Robbins Coulter (1999), top managers are responsible for making organization-wide decisions and policies that affect the organization.Middle Managers Managers at this level are responsible for the implementations of policies and plan drafted by top management and playing a supervisory role and co-coordinating the activities of the lower-level managers. Griffin (1999). According to Jennifer M. George (2004), pith level managers are responsible for finding the best way to organize human and other resources to achieve the organizational goals. To increase effectiveness, they evaluate the goals that the organization is pursuing and make suggestions to top managers.First Line Managers The managers at this level are placed at the domicile of the managerial hierarchy and are often referred to as supervisors. They ar e responsible for the daily supervision of the non-managerial employees who perform many of the specific activities necessary to produce goods and services. They work in all departments of an organization. Jennifer M. George (2004). Its argued by Griffin (1999), that the common titles held by managers at this level are supervisors, coordination and office managers. These positions are often first held by employees who come management from the ranks of operating personnel. According to Bartol Martin(1998), first line managers are extremely valuable to the success of the organization due to the special role of seeing to the day to day activities of the organization. These managers operate at the interface between management and the other work force and due to this can easily find themselves in the centerfield of conflicting demands.MANAGERIAL SKILLSDue to the validity and difficult nature of a managers job, certain skills are required to successfully carry out the duties and roles of a manager. look into by Robert L. Katz, during the early 1970s identified three essential skills or competencies needed by managers. The importance of these skills varies according to the managers level within the organization.Technical Skills These are skills that reflect two an understanding of and a proficiency in a specialized field. Bartol Martin (1998). These skills are needed by both first line and middle level managers in their operations. It becomes less important as a manager moves into a higher level of management. However, top managers need some percentage of proficiency. For instance, an accountant must be proficient in the rules and standards of accounting, and be able to help its clients when faced with problems relating to the duties. Robbins Coulter (1999). According to (Bartol Martin, 1998) the technical skills are needed most by first line managers since they are directly involved in the supervision of the technical and professional employees, who are no t managers. Middle level managers also need sufficient technical skills to have a go at it major problems. Top level managers will need some technical skills especially when technology is an important part of the product or service the organization is offering.Human Skills These are skills associated with a managers ability to work well with others, both as a member of a group and as a leader who gets things done through others. Bartol Martin (1998). Managers deal with humans and therefore need human skills to function effectively. Robert L. Katz indicated that, human skills are more important at the top level than the lower level. Managers with good human skills are able to get the best out of their people. How to communicate, motivate, lead and inspire enthusiasm and assumption are some good human skills that managers should possess. Robbins Coulter (1999). Bartol Martin (1998) argued that human skills are needed by all the three levels of managers, since they deal with huma ns, and get things done through them. Managers without sufficient human skills are likely to have problems with internal and external customers.Conceptual Skills These skills are related to the ability to visualize the organization as a whole, discern interrelationships among organizational parts, and understand how the organization fits into the wider context of the industry, community and world. Bartol Martin (1998). Conceptual skills are needed by managers for effective decision making that will positively affect the organization. Robert L. Katz proposed that these skills become more important as a manager moves into top management position.MANAGEMENT SKILLS AT DIFFERENT HIERARCHICAL LEVELS.SOURCEBARTOL AND MARTIN, 1998Griffin (1999) states that, the skills needed by a manager to perform activities go beyond the three skills. Four other skills are expected of a manager. They are diagnostic skillsCommunication skillsDecision-making skillsTime management skillsWHAT MANAGERS ACTUAL LY DO.Henry Mintzberg, a management scholar observed the activities of some(prenominal) top managers and discovered the work methods of managers as well as the major roles that they play.EXTENDED MODEL OF THE MANAGEMENT PROCESS.Management scholars Steven J. Carroll and Dennis J. Gillen went beyond the four major functions of management. These functions were used to form basis for the establishment of the managerial process. These management gurus upon their review of major studies on managerial work identified several key elements in the management process. There was the addition of work agenda, work methods and roles fused into the core management functions with a managers knowledge base and key management skills being contributing factors to high performance.WORK METHODSMintzberg found that in their actual work methods, the managers differed drastically from their popular image as reflective, imperious planners who spend considerable quiet time in their offices poring over form al reports. Bartol Martin (1998). Three of the findings of Mintzberg give the manifestation of what high-level managers actually do.UNRELENTING PACE Managers are very busy people who work from dawn to dusk and are engaged in several activities.BREVITY, VARIETY AND FRAGMENTATION Managers are very brief in their activities like meetings, attending to telephone calls, addressing the issues subordinates continue to bring to interfere with their work.VERBAL CONTACT AND NETWORKS Managers elect verbal communication through either phone conversations or meetings to written communication using memos and formal reports and rely heavily on networks to obtain and mail teaching.MANAGERIAL ROLESAccording to Kreitner (1989), a research was conducted by Henry Mintzberg who concluded on what managers actually do. Mintzberg criticized the traditional functional approach as unrealistic, as they bear witness little about what managers actually do. Many other authors agree with Mintzberg and belie ve that the functional approach portrays the management process as far more systematic and rational and less complex than it really is. Mintzberg and his team said that to study managers and to know what they do, it is good to focus on the key roles they play, using a method called structured observation. This method involves recording the activities and correspondence of five top-level executives. Mintzberg identified ten roles he believed are common to managers at all levels. These ten roles are grouped into three categories. They areInterpersonal Roles This is the role that involves interpersonal contact with subordinates and peers. Figurehead, Leaders and Liaison are the interpersonal role managers play.Figurehead Role. It represents a symbol of effective authority and involves the performance of certain ceremonial duties like signing documents and receiving visitors.Leader Role. It seeks to motivate workers to get the job properly doneLiaison Role. It serves as a link in a hor izontal and vertical chain of communication.Informational Role. This is the role that provides information relating to the task. This role is important because information is the lifeblood of organizations, and includes nerves center, dissemination and spokesperson roles. brace Centre. It serves as a focal point for non routine information receiving all type of information.Disseminator. Deals with the transmission of information to subordinates.Spokesperson. Deals with the transmission of selected information to outsiders.Decisional Role. With this role, managers balance competing interests and make choices. It enhances the tuition and implementation of strategies. The decisional roles are entrepreneurs, disturbance handlers, resource allocators and negotiators.Entrepreneur Designs and initiates changes in the organization.Disturbance Handler Takes corrective action in non routine situations.Resource Allocator Takes decisions on allocation of resources to individuals and units.Nego tiators. Participates in negotiation sessions with other parties like vendors and unions to make sure the organizations interest are adequately represented.Jones George (2004) in their book Essentials of Contemporary Management describe Mintzbergs ten managerial roles. However, information technology has major effects on how managers perform their roles and on the skills they develop to perform the roles effectively.CHANGEThe dynamic nature of worry organizations naturally brings change. It is imminent for organizations to focus on change with competition increasing both domestically and globally. Companies that were enjoying mono-power are now been faced with competition from all the corners of the world.Bartol Martin (1998) defined change as any alteration in the status quo. They identified innovation to be one of the most applied forms of change. Innovation according to Bartol Martin (1998) is a new idea applied to initiate or make better a process, product or service. Hard ly do people (employees) accept management action that endeavors to facilitate change as the lively processes and procedures may be seen consummate. The management of change in an organization has become an area of possible conflicts because of problems of understanding and communication. stern Harvey-Jones (1993) stated that, it is impossible to change organizations which do not accept the dangers of their present way of doing things. A managers ability to manage change efficiently in an organization has become an indispensable skill in todays management.FORCES OF CHANGEA variety of forces influence change in an organization. Some of these forces are external whiles others may be developed internally. Recognizing and adapting to internal and external changes can mean the difference between continued success and going out of business.EXTERNAL FORCESAll organizations are sluttish systems and they therefore interact with the external environment of which they are part. The following factors may necessitate changeEscalating competition and globalization.Rapid development in new technology and the information age.Increased government regulation pressure.Scarcity of resources.Increased demand for quality.Increased demand for high levels of customer service and satisfaction.INTERNAL FORCESInternal forces for change also develop from a variety of sources. Some of these sources includeEthical difficulties that arise because of employee behaviors.Decisions that entail changes and innovation.organisational culture shifts.Reorganization.PROCESS OF CHANGEThe process of change is likely to be associated with certain features. Hannagan (2004) in the book, Management Concept and Practices outlined the features as uncertainty about the causes and effect of change, unwillingness to give up existing practices, and awareness of problems in the change process. These characteristics according to Hannagan arose from a natural reaction toDeny that the change is necessary.Resist an y change irrespective of the merits.Avoid changes when they are introduced.Hannagan further suggested that managers should be able to determine the actual causes of change and remain flexible enough in their approach to overcome them in an appropriate manner.In the process of change, it is prudent to consider the degree of interaction between independent variables in the organization. The workers, technology and the organization structure seriously depend on each(prenominal) other and they therefore need to be recognized in the change process. The task of the manager is to direct energy away from feeling of powerlessness and smell backwards and towards seeing the opportunities for the future. This is important because in the process of change, people are likely to be threatened by the future while they need to recognize the dangers in the present position and the opportunities in the new ones. The process may involve denial of the need for change and resistance to it, until the ch ange is able to be explored when opportunities will be discussed and lading created.Hannagan (2004) outlined that the experience of the feeling of loss can take the following formsSecurity People feel unsecure of their position in the organization and how it will change.Competence Becoming worried about their ability to carry out new tasks.Relationships They may feel the familiar contacts will be lost with other employees, with managers and teams and groups.Territory They may feel uncertain about their work space or job responsibility.Direction They lose a shit view of where they are going.It is important that the manager reckon that these feelings are part of the transition process. It is the task of management to recognize these sentiments and endeavor to minimize it. This transcends provision of information as workers are not likely to change their behavior simply because they have being told. Change therefore needs to be managed carefully.TRANSITION IN THE CHANGE PROCESSFrom d enial and resistance to exploration and commitment.SOURCE MANAGEMENT CONCEPTS AND PRACTICES, 4TH EDITION BY TIM HANNAGAN.CHANGE MANAGEMENTIt is obvious that a system that is not functioning well needs to be changed. The effectiveness of the change however to the large extent depends on how it is managed. Change aims at moving organization from the current position to place it in a desirable way in which its objectives can easily be accomplished. For the change to achieve its purpose it need to be managed properly.Hannagan (2004) outlined the various stepsVision A process of reminding everybody and clarifying to everybody the direction of the organizations.Strategy Outline how this is to be achieved through the development of objectives and goals. observe change Progress is measured in order to observe and encourage change.Different strategies are developed and implemented depending on the exhibit of the change. At the stage of denial, the manager has to provide information and give time in order to explain the information and advocate action.Also at the resistance stage managers have to accept peoples response and encourage support.In the exploration stage, the manager needs to focus on the priority, train people involved in the planning.In the commitment stage of the process, long-term goals are established with emphasis on building team.SOURCE MANAGEMENT CONCEPTS AND PRACTICES, 4TH EDITION BY TIM HANNAGANPERFORMANCEPeople stick out and steer the affairs of organization. People are the main underpinning for goal setting and objectives accomplishment. The performance of an organization thus depends on the sum total of the performance of its members. Pattanayak (2006).Pattanayak believed that the success of an organization will depend on how it accurately measures performance of its workers. He further argued that the performance of an employee is his resultant behaviors on task which can be observed and measured.Performance refers to the contribution made by an individual in the accomplishment of organizational objectives. Pattanayak (2006).The performance of individuals in an organization is the resultant behavior on task which can be observed and evaluated. Normally organizations assess performance by looking at quantity, time of completion, cost involved and most importantly quality. One way of urging people to work in an organization is giving them feedback on the results of their action. It is important that feedback on both success and failures are provided on stock basis. Most organizations use performance appraisal systems or techniques in trying to provide feedback.PERFORMANCE APPRAISALPattanayak (2006) acknowledged that performance appraisal system provides management an opportunity to recall as well as feedback to people as to how they are doing, so that they can correct their mistakes and acquire new skills.Pattanayak defined performance appraisal as all those procedures used to evaluate the personality, the performance, a nd the potential of its group members. Performance appraisal techniques used could either be formal or informal. open PERFORMANCE APPPRAISALPattanayak defined informal performance appraisal as a continuous process of feeding back information to the subordinates about how well they are doing their work in the organizations. Pattanayak believed that it is normally conducted on the day-to-day basis.FORMAL PERFORMANCE APPRAISALPattanayak argued that formal performance appraisal occurs usually annually on a formalized basis and involves appraise and appraiser in finding answers to the following questions.What performance was set out to be achieved during the accomplishment?Has it been achieved?What has been the shortfall and constraints?What are we going to do now?How will we know that we have done it?What kind of feedback can be expected?What assistance can be expected to improve performance?What rewards and opportunities are likely to follow from the performance appraisal?EMPIRICAL LI TERATUIREChange has always been part of organizations. Day in and day out, organization are seen trying to adapt to a changing environment. A study by Agudze, Simon and Sunu on the influence of price on customer loyalty of selected supermarkets in capital of Ghana outlined the fact that organizations are affected by change in price. The study revealed that Melcom will lose 42% of its customers if prices should increase (change), at Game it was earn that 62% of their customers will stop buying if prices increase (change), and at Maxmart the survey showed that 50% of their customers will not purchase from the shop if prices should increase.Also on a thesis by Hans-Jrgen Brck on the impact of organisational change management on the success of a Product Lifecycle Management Implementation -an investigation into the Electronics Manufacturing Industry, 59% of the respondents to the eighth questionnaire indicated that productivity is slowed down a little bit in the phase of implementing c hange, whereas 35% did not realize any negative influence on productivity. However, 6% indicated a significant decrease in productivity.The research also brought out the fact that vision is very important in the change process. The researchers fourth questionnaire focused on vision which half of the respondents indicated that it was very important.Moreover another survey by Natalie L. Petouhoff, PhD, Tamara Chandler, and Beth Montag-Schultz on The Business Impact of Change Management revealed that Organizational Change Management (OCM) schedules have significant effect on Returns On Investment (ROI). The survey showed that ROI was 143% percent when an excellent OCM program was implemented. ROI however was 35% when OCM program was poor or there was no OCM program at all.3.0 METHODOLOGY3.1 RESEARCH DESIGNThe study will be cross sectional as data collected from the field will be used within a short period of time. The study will take a period of nine months to be completed. The purpos e of the study shall be descriptive in nature as a gap will be dealt with and employ both qualitative and quantitative techniques. The qualitative research will be based on knowledge, views, perceptions, observations and opinions of the effect change in management will have on the performance of Vodafone Ghana. The quantitative research shall also be based on the design and issue of questionnaires to customers, top management and employees to solicit for the objectives of the topic that will be expressed in terms of figures for the study.3.2 POPULATION OF THE STUDYThe population of interest for the study shall include all employees and customers at Vodafone Ghana.3.3 SAMPLE FRAMEThe sample figure for the study will be all Vodafone customers within the age bracket of 20 to 40 years in Accra and selection of employees at Vodafone direct office at Circle. The reason for the chosen sample is due to the fact that, the study seeks to investigate the performance of Vodafone