The concept of management change in regards to Larsen and Toubro Essay

The concept of management change in regards to Larsen and Toubro - Essay Example The paper tells that with changes in consumer needs and perceptions the demands for the goods and services of the organisation also counter a paradigm shift. Thus because of such changes in the organisation’s external climate the management team of the organisation tends to bring about a lot of alterations in the technological and operational processes in the organisation. These changes are reflected as the organisational changes inside the concern. Focusing on the above discussion the organisational changes brought about in Larsen and Toubro can be further analysed. The Chairman of the concern envisaged that the need for organisational change within the concern arose from the need of value creation. Value creation was envisaged through bettering up the position of both the internal and external stakeholders of the concern. The internal people or the employees’ position was developed through the induction of the rating system which would rate the employees based on thei r performance rather than seniority. On the external side, the process of value creation focused on enhancing the value of the shareholders through augmentation of the value of the projects carried out by the several departments. The Chairman of the concern took these steps so as to help in the increase of motivation of the employees and shareholders of the concern. Taking the above organisational change processes were further envisaged to help in the augmentation of the share value of the concern in the stock market which was quite low previously. (McKinsey & Company, 2010, pp.28-29). Justifications for the Organizational Change Forces of Change The forces or needs for organisational change arise out of large amount of dissatisfaction emerging out of people belonging to different organisational hierarchies. The organisational people demand a change from the existing situation for which changes or alterations needs to be brought about in the organisational structure. Failing to such demands of the people leads to several problems which in turn spreads employee unrest. On the other hand the change in organisational leadership also leads to bring about forces of change in the concern. The new organisational leader inherent with new vision and organisational philosophy endeavours to bring about changes in the existing business process and technological interventions. This force of organisational change is sometimes not welcomed by the internal people leading to strong protests and events like strikes and