Organisational Intervention
Organisational Intervention
com
A Study on orgAniSAtion
interventionS from it
induStry PerSPective
raisa de*, Abhiti tiwari**
*Institute for Technology & Management - ITM Business School, Mumbai, Maharashtra, India.
E-mail: [email protected]
** Institute for Technology & Management - ITM Business School, Mumbai, Maharashtra, India.
E-mail: [email protected]
Abstract In a fast-paced, continually shifting environment resilience to change is often the single most important factor that distinguishes
those who succeed from those who fail. - Tom Peters
The current knowledge economy requires organisation to be learning organisation in order to adapt to current challenges because changes
and improvements in technology are constantly driving the need for learning as organisation, need to respond to new technologies in order to
remain competitive. Introduction of the technology should be supported by various different factors in order to manage the demand effectively,
that the new change brings with it, thus help it to survive and flourish (Dehinbo, 2010). Change is not always easy to implement in an
organisation but changes are required to survive and flourish. When changes are made, it is an opportunity for learning and if the changes are
comprehensive, emphasis should be placed on learning. Interventions, i.e. the structured activities are the principal learning processes in the
“action-stage” of organisational development. A learning organisation aims at aligning interventions with the Organisation’s main features
which are systems thinking, personal mastery, mental models, shared vision and team learning (Senge, 1999). As a part of change management,
in IT sector, both the “operator culture” and “engineering culture” act as a facilitator to adapt the change.
Keywords: Interventions, Learning Organization, IT Organization, Culture, Change, Transformation, Organizational Development
(Parmar, 2012). Introduction of personal computers, digital assisted by PROPEL framework and spiral dynamics. Some
assistants, personal productivity software, various mobile other deployed initiatives include rewards and recognition,
technologies have supported the knowledge workers and AEP (account excellence program) – relationships modelled
helped them in the transformation (Parmar, 2012). The IT on Tata business excellence model; value cards at large
& ITes industries help to achieve the vision of a powerful relationships – voice of customers, shareholders, employee
and resilient India by increasing the GDP of the country, and technology, feedback survey – e.g. “Darpan – reflect and
enhancing employment and exports, thus contributing to the improve”.
growth of Indian economy (Parmar, 2012). Now, advances in
collaboration technologies have changed the way teams work 1.1.2. I nternati onal Business Machines
together in addition to the challenges they face with regard Corporati on
to technology and collaboration. Due to these changes, it is
important to take a look at interventions and how they can be With headquarters in Armonk (New York, United States)
technology-driven or administered. Advances in technology- the American multinational technology and consulting
driven interventions can have a substantial impact on virtual corporation, International Business Machines Corporation
project management and online education. (IBM) is a leader in manufacturing computer hardware
IT organisations in India are continuously transforming, in and software. It also offers infrastructure, thus hosting
order to survive in the competition. A study on some of the and providing consulting services in areas ranging from
companies was done. mainframe computers to nanotechnology (Wikipedia).
No company lives more than a decade or two without
1.1.1. Tata Consultancy Services reinventing itself. IBM has kept up with the white hot
speed of technological change, evolving from a tabulating
Tata Consultancy Services Limited (TCS) is an Indian IT company to IT consultant powerhouse. Because IBM
multinational company headquartered in Mumbai, India leadership understood the imperatives for thriving in
(Wikipedia). TCS wants to create a sense of ownership turbulent times, it has managed to stay on top. In the
among its employees across all levels and thus designing and intensifying volatility of today’s global environment, IBM
implementing various strategies to effectively bring about has followed strategies like-Be nimble and quick to adapt
this change management. TCS believes that transformations in a world of disruptive change, Know your customers
at the organisation level depend on the ability of its intimately, Cultivate collective responsibility based on
employees to adapt the changes. Therefore, they believe that “systems knowledge”, and Stay committed to your core
in order to make a change management effort successful, values. In IBM, Change Management was initiated to
the organisation needs to not only build but also promote avoid service outages, automate changes, and adhere to
a bidirectional communication channel that will aid in governance policies. Various prominent OD interventions in
effective communication of the need for change throughout IBM comprises of Transformation of Vision. As a part of
the organisation, and also encourage employee suggestions, their OD intervention they transformed their vision to “One
queries and concerns regarding the proposed change IBM” and focused on innovation through enhancement of
(Rahul Mittal, 2012). It will include successive levels of emerging business opportunities that ultimately manifested
management in the decision making thus ensuring complete into cultural change within the organisation. The organisation
understanding of the need for change, and foster a spirit of also saw cost cutting as a strategy for global functions
collaboration. In order to create a sense of ownership among and processes. Introduction of e-business was a part of
employees, it’s the responsibility of managers to engage technological interventions (Lynda and Applegate, 2009).
people at all levels and ensure that they accept change Various HR interventions included employee empowerment
through a continuos support ensuring the transition (Rahul programmes, corporate stress management programmes,
Mittal, 2012). wellness programmes like “Think Light”, “Spark People”;
Global workplace safety programmes like “OSHA Voluntary
The paradigm shift in TCS came through its OD interventions Protection Programs” (VPP).
like Goal alignment & Balance Score Card Strategy - teach,
train & transfer. Human resource interventions included plans
1.1.3. Infosys
such as career planning & mentoring process, formulation
of career paths, new role definitions of HR, training and Infosys (formerly Infosys Technologies) is an Indian
development like “Academic Interface Program”, “Initial multinational provider of business consulting, information
Learning Program”. Another noteworthy program of TCS is technology, software engineering and outsourcing services.
PROPEL – The Intervention: Culture Building @ TCS, which Infosys is the third-largest India-based IT services company
mainly comprises of exchange of ideas and problem solving by 2012 revenues.
in two modes – confluence and camp; team alignment is
A Study on Organisation Interventions from IT Industry Perspective 29
Infosys’s organisational change management competency adaptive, flexible, dynamic, proactive and competitive
deals with certain factors like training & HR, stakeholders’ (externally).
assessment and communication. These are divided into
Successful integration of intervention into organisation is
six modules such as organisational readiness, stakeholder
based on readiness of employees for change, capability to
analysis, readiness preparation, communication plan,
change, culture and capabilities of change agent (Thomas
training plan, human resources. In Infosys, organisational
G. Cummings, 2009). All these affect the design and
change management competency covers organisation
implementation of almost any intervention.
readiness, training & HR, stakeholder assessment and
communication (Nadir Masood, 2005). Different OD The different types of Intervention that an organisation
interventions executed in Infosys are HR interventions which generally follows are:
included strategies like increase in employee compensation, • Process Interventions deal with interpersonal
training of employee – mainly “Virtual Reality Simulation relationships and group dynamics such as T – Groups,
Model”, rightsizing change initiatives to suit organisation Process Consultation, and Third Party Interventions.
culture/challenges and surveys & feedbacks; technological
The following interventions deal with Human Processes
interventions mainly comprised of launching of Big Data
that are more system wide than individualistic or small-
Edge, unified communications and collaborations. Another
group oriented, for example Intergroup Relations, Grid
recent vital OD intervention that the company went through
Organisation.
was switch at senior level to broaden key leadership
experience to encourage “cross industry perspective” and it • Techno-Structural Interventions: Some of techno-
included programs like “Leadership Development Program” structural interventions are restructuring (for examples
and “9 Pillar Model”. task methods and job design) and structure (for
example, downsizing, reengineering).
• Human Resource Management Interventions like goal
1.2. Interventi ons setting, performance appraisal, reward system, career
planning and development, managing work force
“Interventions” are structured activities that act as principal diversity, employee wellness.
learning processes in the “action” stage of organisation
• Strategic Interventions link the internal functioning
development, individually or in combination by the members
of the organisation to the larger environment and
of a client system to improve their social or task performance
transform the organisation to keep pace with changing
(Wikipedia). Interventions attempt to change an organisation
conditions. Examples are integrated strategic change,
or any particular department towards a more effective and
Alliance Formation, mergers and acquisition, trans-
sustainable state and thus it disrupts the prevalent status quo.
organisational development,
There are three major criteria in OD that define effective
interventions (Thomas G. Cummings, 2009).
The first criterion is relevance of the intervention to the
2. Pur�o��
organisation and its people, that is finding correct fit with the The purpose of the study is to find out how organisational
need of the organisation, thus to build capacity for change and development interventions in different IT organisations
enhance organisational effectiveness. The second criterion have guided them through the transformational changes and
is knowledge and understanding of intended outcomes by enhance the holistic development of employees in a learning
the employees. The third is that the degree to which the organisation. This study will also help us to find out, to what
intervention will be able to enhance the organisation’s ability extent the learning organisations are alert to early weakening
to manage change (Thomas G. Cummings, 2009). signs of external changes that it will move promptly to make
An organisation requires its employees to actively participate internal changes designed to keep it viable in the changing
in designing and implementing intervention and gain external world (Senge, 1999). It will also help to determine
skills for effective change management. In this fast paced which transition strategy for change e.g. individual change
persistently changing technological, social, economic, and strategies, techno-structural strategies are being adopted
political aspects, competence in change management is vital by the organisations. This study will throw some light on
(Thomas G. Cummings, 2009). how organisations planned to attain desired future goals
through organisational development interventions. Another
An intervention initiative which is collaborative in nature and important purpose of research paper is to prove that culture
maintains transparency, involving all levels of management of any organisation acts as a reinforcing factor in every step
in decision making leads to the creation of culture that is of transformation within an organisation.
30 International Journal of Knowledge Mangement and Practices Volume 2 Issue 1 March 2014
N Mean
Transformation phase IBM 30 3.2667
TCS 30 3.4889
Infosys 30 3.1111
Total 90 3.2889
Interventions introduced systematically IBM 30 3.6333
TCS 30 3.5889
Infosys 30 3.4444
Total 90 3.5556
Interventions leading to development IBM 30 3.4444
TCS 30 3.3000
Infosys 30 3.1667
Total 90 3.3037
Employees role in improving the departmental functions through transition IBM 30 3.4500
TCS 30 3.5500
Infosys 30 3.3500
Total 90 3.4500
Interventions were imposed IBM 30 3.7333
TCS 30 3.8667
Infosys 30 4.3333
Total 90 3.9778
Role of culture , clear vision & objective in transformation IBM 30 3.6333
TCS 30 3.3500
Infosys 30 3.4500
Total 90 3.4778
table 4: AnovA
Alternative Hypothesis: There is marginally significant or environmental needs as the mean value revolves
difference in the concerned attributes within the companies. around 3.7-4.3 that is closer to ‘agree range’.
• The number of respondents from each organisation H06
was 30 (N), thus total of 90 respondents were there
• Level of significance for the 3 companies for Factor 6
from 3 organisations.
(role of culture, vision & objective) is 0.213 that is >
H01 0.05, (at 5 % level of significance) and thus there is no
• Level of significance for the 3 companies for Factor significant difference in the way the culture acted as a
1 (transformation phase) is 0.004 that is < 0.05, (at 5 reinforcing factor during transformation phase.
% level of significance) and thus there is significant • Here the mean value ranges from 3.3-3.6 that is
difference between the transformation phase of the 3 somewhere in the ‘neutral range’.
companies concerned.
• The mean response for factor 1 for the 3 companies 6. Conc�u�ion
ranges from 3.1 – 3.4, average respondents gave the
answers in the ‘neutral’ range. The significance of the study was to find out how the
various interventions introduced within each company that
H02
had helped in bringing in the transformation process and
• Level of significance for the 3 companies for Factor 2 had resulted in holistic development of the organisations.
(interventions introduced systematically) is 0.095 that The results suggest that, one size-fit is not applicable for
is > 0.05, (at 5 % level of significance) and thus there all organisations. Strategies have to be tailor made. From
is no significant difference between the 3 companies our study we can conclude that the reasons for introduction
concerned. of intervention in different companies of IT industry have
• The mean response for factor 2 for the 3 companies been different in various level of organisation life cycle.
ranges from 3.4 – 3.6, average respondents gave the The restructuring and re-engineering of an organisation
answers in the ‘neutral’ range. or aligning the organisational structure with the strategic
H03 direction of the transformation, contribute to adjustment of
culture, which play a reinforcing role in the transformation
• Significance value for the 3 companies for Factor 3 phase. A resilient and adaptive culture helps in smooth
(interventions leading to development) is 0.147 that transformation within the organisation. The IT organisations
is >0.05, (at 5 % level of significance) and thus there are alert to the external changes and adapting through
is no significant difference between the 3 companies planned transformation phases.
concerned.
• The mean response for factor 3 for the 3 companies
ranges from 3.1 – 3.4, average respondents gave the 6.1. Managerial Implicati ons
answers in the ‘neutral’ range.
The organisations need to look into the factor of introducing
H04 interventions at the right time, taking into account the
• Level of significance for the 3 companies for Factor different HR initiatives integrating external demands with
4 (employees’ role in improvement) is 0.466 that is the internal needs. Employees will strongly encourage
>0.05, (at 5 % level of significance) and thus there is transformation if it will lead to holistic development as
no significant difference between the role of employee well as they will be motivated if supervisors support during
in improvement in 3 companies concerned. transition phase. A resilient culture will aid in aligning the
• The mean response for factor 4 for the 3 companies transformation phase with mission, vision and goals of the
ranges from 3.3 – 3.5, average respondents gave the organisation. To bring about a smooth transition, it becomes
answers in the ‘neutral’ range. utmost important to encourage employees to take part in
decision making, involve themselves in various formal and
H05 informal communications within the company. Thus being
• Level of significance for the 3 companies for Factor recognized for their contribution will make them feel valued
5 (interventions were imposed) is 0.026 that is >0.05, (sagepub).
(at 5 % level of significance) and thus there is no
significant difference in the reasons for introduction of 7. Futur� Sco�� o� Stud�
interventions in 3 companies concerned.
• According to the survey results ,most of the We can use this paper as a benchmark to decide what kind
interventions were initiated due to external pressure of interventions help the organisations in smooth transition
A Study on Organisation Interventions from IT Industry Perspective 35
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36 International Journal of Knowledge Mangement and Practices Volume 2 Issue 1 March 2014