Due to the sensitivity of the information contained in this dissertation, I wish to limit this study to 5 years. There are a number of people I would like to thank for their contributions to this document. Firstly, I would like to thank my supervisor, Professor Elsa Thomson for her guidance and for always being there when needed.
I would like to thank Mr. Lehlohonolo Manamolela for all the help he has given me. The time he sacrificed to distribute my questionnaire to Telecom Lesotho employees and all the literature and information about the company he gave me. To all my friends, thank you for your encouragement during the difficult times of my studies.
Dee Tee, many thanks for all the help with documentation, it couldn't have been easy for me to do my literature search. Last but not the least, I would like to thank the Lord Almighty for giving me the strength to complete this study.
AN ANALYSIS OF CHANGE MANAGEMENT
STRATEGY: A CASE STUDY OF TELECOM LESOTHO
CONSTANT IS CHANGE"
INTRODUCTION 1.1. BACKGROUND INFORMATION
- RESEARCH PROBLEM
This study seeks to examine and understand the concept of change management, while also seeking to examine and understand the processes surrounding the ways in which companies manage change, especially after privatization. Furthermore, when a company is privatized, there must be some kind of change, especially because the company becomes accountable to a different kind of electorate. The sample, data collection method, research limitations, and study structure will be discussed.
In the process of change, there are usually initiators of change, in this case the initiator of change was management. In order to determine how well the change process was communicated with employees and to study the impact of changes on the members of the organization, we distributed questionnaires to the selected sample. This chapter presents the basic theory of change management and the main findings about change management in the organizational development literature.
The next chapter takes us through the dynamics of change and the suggestions of these gurus. The next chapter will go through the process of change and innovation, and then resistance to change and the elements of change will be discussed.
THE DYNAMICS OF CHANGE 2.1 INTRODUCTION
- THE NATURE OF CHANGE AND INNOVATION
- THE CHANGE AND INNOVATION PROCESS
- RESISTANCE TO CHANGE
- ELEMENTS OF CHANGE
Usually there is a champion who initially spurs the change by being visionary, persuasive and consistent. This disruption causes a loss of control, and people will resist this loss of control even if they think the change makes sense. Marshal et al (2000) further suggest that response to change can be seen in two ways and people will express resistance differently based on how they perceive the change.
This gives way to informed optimism, a sense that the change is achievable and that much has already been achieved. The change may seem so unreal that the person cannot even comprehend it. This may include requests for deadline extensions, changes to the change initiative or even reallocation.
Depression - Once negotiations have failed, a person often becomes depressed upon realizing that the change is real and permanent. Testing – Similar to negotiation, except the person accepts the change and figures out how to succeed under new circumstances. There is a perception that the change program is in the hands of the innovator or someone who initiated the change.
The purpose of this chapter was to show how companies should approach the change process.
CASE STUDY
- INTRODUCTION
- LTC BEFORE PRIVATISATION
- STRATEGIES TO IMPROVE PERFORMANCE
- IMPLEMENTATION STRATEGIES
- PRESSURES FOR CHANGE
- ACHIEVING CHANGE
- CONCLUSION
The company also supervised the issuing of permits and licenses to operators of telecommunications services in the private sector (Internet service providers). Converting some debt owed to the government into equity to improve the company's debt:equity ratio;. In order to present a clear picture of the state of the company before privatization, the following questions will be discussed; network status, personnel status, cash flow crisis and financial position.
Improving revenue: By running an effective campaign to collect money owed to the company by customers. Having discussed the position of the company before privatization, we now turn to the position of the company after privatization. The company's new motto is "A nation Well-Connected", while TCL used the tagline.
The network developments that the company has seen so far are technological changes, the Internet and satellite communications. Improved revenue collection - From the days of LTC, the company had an amount of 22 million MM owed to it. The company further transitioned from a pay-sharing system with graduated allowances to a pure pay system.
These include fleet, network assets and company-owned real estate. The following section discusses the main reasons why the company had to undergo a change process. The company had to reduce the structure from sixteen to five levels with the same number of department heads.
The company had to come to terms with the reality of competition and the fact that the company no longer had the privilege of monopoly. In terms of strategic direction, the company has become much more market sensitive. The entire change process had been an overwhelming exercise for the company, and especially for the employees.
EVALUATION OF CASE STUDY 4.1 INTRODUCTION
- DISCUSION OF RESULTS
- ANALVSIS OF THE GAP
- CONCLUSION
Retention - If the company wants to maintain continuity in certain practices or retain specific assets, to what extent can this be done. Capability - Is the company able or competent enough to manage change and how widespread in the organization is this capability? As discussed in previous chapters, the company experienced some decline in sales and was privatized.
Although the company was given exclusive rights for five years from the year 2000, it was clear that time was not due to the change in competitive conditions that the organization was facing. The company had to be turned around from the state of financial crisis, poor service and long waiting lists, caused by poor state of the network. The condition of network had to improve, to accommodate more customers, the number of staff had to be reduced, and the company's financial position also had to be improved.
With the limited time and the cash flow crisis that the company was facing, the management had to undertake restructuring. When the company is in crisis, as LTC was, it is natural for management to cut some resources. When restructuring, management had to be careful not to lose people whose knowledge the company needed.
TCL decided to cut some of the assets, which were outdated and becoming expensive for the company. However, diversity in the company can occur as a result of professional or occupational groups between divisions and departments. In order for the company to determine whether it is well able to engage in change management, a resource audit must be carried out.
TCl's change process, which was not so extensive judging by the results, can be attributed to the fact that the company did not have the time and money to embark on revolutionary changes. Moving around the corporate kaleidoscope, one found that time was not on their side due to competitive pressures. The company also had a cash flow crisis, which meant they did not have the capacity to engage in incremental change.
CONCLUSION AND RECOMMENDATIONS 5.1 INTRODUCTION
- CHANGE PLANNING
- COMMUNICATION
- RESISTANCE TO CHANGE
- JOB SATISFACTION
- CONCLUSION
What could have happened was to hold departmental meetings where employees could raise their own concerns and get feedback there and then, other than relying on what could sometimes be rumours. A company will adapt to change most easily if it has many ways of two-way communication that reach all levels of the organization that all employees use and understand. If communication media are few, often discarded unread, and almost exclusively one-way and top-down, change will be more difficult.
Employees are naturally resistant to change processes, mainly because it takes them out of the comfort zone where they feel safe. If they are not made to feel that change is not a threat, the change process will be very difficult. What management must take into account is that resistance cannot be avoided and therefore the importance of dealing with resistance.
The management of TCL was aware of resistance to change and they indicated that one of the barriers to implementing change processes was that they had to deal with resistance to change. Many employees at TCL felt that they lost their benefits, especially during restructuring. Sometimes people have to overcome their fear of taking ownership in the organizational change process.
Empowered staff are best placed to develop the creativity, intuition and innovation that represent positive ways of responding to change. Organizations that respond to these characteristics have greater strength and flexibility in responding to change. Changes are easier if managers and employees are rewarded for taking risks, being innovative and finding new solutions.
Most employees felt that there was no adequate reward for bringing about change, and most of them were not even sure whether they would receive the necessary training to do so. Like never before, the world needs creative leadership that is looking for new paths, new methods, new approaches and the search for innovations yet to come.
Appendix A
LTC Cash Flow Forecasts
Appendix B
L re Balance Sheets
Appendix C
New Organisational Structures
SUPPORT SERVICES I
I SUPPORT SERVICES (CONTINUED) I
I HUMAN RESOURCES I
I FINANCE I
I FINANCE (Cant) I
I FINANCE (CONTINUED) I
I SALES AND MARKETING I
I COUNTRY AREA I
I COUNTRY AREA I CSMO
Appendix D
Was there any negative feedback (attitudes, work culture) during the change process from the employees? Your company TCL has undergone a major change, from layoffs to the introduction of new goals and new work procedures. Place an X 0 the number that best reflects your view of each of the following items.
As you read each item, think about how you feel about the change in your department.
Bibliography and References
Kanter R.M. Championing Change: An Interview with Bell Atlantic CEO Raymond Smith" Harvard Business Review January - February p. 119.
