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Management of Change

The document discusses the need for IOC to modernize its old pipeline infrastructure to keep up with competition. This will require managing change across the organization as the existing systems are modified. The objectives are to evaluate current change processes and skills, and recommend new models for organizational structure, processes, and training. Recommendations include making the organizational structure more flexible and collaborative. When implementing large changes, more involvement is needed from all levels from the start. The training system also needs reform, with a more collaborative needs identification process and ensuring training matches actual needs. A new recommended model incorporates these ideas to facilitate effective change management as modernization occurs.

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73 views

Management of Change

The document discusses the need for IOC to modernize its old pipeline infrastructure to keep up with competition. This will require managing change across the organization as the existing systems are modified. The objectives are to evaluate current change processes and skills, and recommend new models for organizational structure, processes, and training. Recommendations include making the organizational structure more flexible and collaborative. When implementing large changes, more involvement is needed from all levels from the start. The training system also needs reform, with a more collaborative needs identification process and ensuring training matches actual needs. A new recommended model incorporates these ideas to facilitate effective change management as modernization occurs.

Uploaded by

partho143
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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MANAGING CHANGE PROCESS AS A CONSEQUENCE OF MODERNISATION OF

OLD PIPELINE INFRASTRUCTURE OF IOC1

Synopsis

Present business scenario leads to a stiff competition in the Oil Industry and compels organisation
to make huge investment in sophisticated technology. In line with this, IOC Pipelines division is
also in the process of modernisation of old pipeline infrastructure and investing substantially to
new pipeline projects. To adapt with this new business environment, IOC pipeline management
have a relook of the existing system and modify it in line with the requirement. Hence, the total
organisational system has to pass through a change management process and the challenge to the
management is managing the change.

Objectives of the Thesis

 To study and evaluate the existing system for facilitating change process and level of skill /
knowledge.
 To recommend a change management model on unit organisation structure and process.
 To recommend a change management model on unit training system.

Recommendations

In the present environment with rapidly changing technology, IOC requires huge investment in
terms of finance, human and other resources. It is becoming increasingly difficult to remain
competitive and be a profitable organisation. IOC has been investing heavily in modernisation,
their huge network of old pipeline infrastructure and to meet the growing demand for petroleum
products and stiffer competition due to entry of private sector and deregulation.

When the life cycle of technology changes is rapidly shortening, modernisation/technological


changes are being undertaken on a big scale by the organisation. This brings changes in the
complexities of technology, requiring higher skills and knowledge, change in the attitudes, culture
and values of its employees. Old organisation structures are being made more flexible and
flatter, procedures and methods are being changed to become quicker and more efficient. More
emphasis is laid on developing human resources wherein the changes in the external environment
is demanding changes in the internal environment also. In such a scenario the concept of change
management is very valid. The participative and collaborative approach involving the people
from top to bottom to manage change effectively and efficiently is the need of the hour. Study for
impact of change, through teamwork and developing people of the organisation is very much
essential, under such circumstances.

On study of the existing system of BKPL, it was observed that the organisation structure is the
traditional bureaucratic hierarchy and having many levels. Functional departments are
compartmentalised. Structure is rigid and empowerment at the level of junior management and
work-force needs enhancement. To consolidate the study a structured interview was conducted
with the senior/junior management and work-force at Barauni and Patna locations of BKPL.

1
Thesis by Mr. Sugam Prasad, Dy. Maaterials Mgr, Barauni, IMBA batch-3 participant under the guidance of Mr. S.K. Sinha,
COM, BKPL as internal guide, Dr. D.K. Banwet, IIT, Delhi as Co-mentor and Prof. Dr. Vlado Dimovski, University of
Ljubljana, as mentor.
On study of the existing process system for major modernisation/technological changes of BKPL,
it was observed that the need and impact of the major changes are not discussed with majority of
the junior management and work-force. Major changes are known to the work-force only during
the implementation phase. Senior management is wasting much time in solving administrative
problems. The process of major changes is improper and the major changes from the initial phase
of identification to the final phase of implementation are much delayed.

On study of the existing Training system for upgradation of skills and knowledge of the officers
and staff, there is lack of streamlined training need identification system. It is generally not
collaborative, training courses are not planned as per need. Nominations for training courses is
not based on need, senior/junior management ignore the training needs of the work force and the
training infrastructure is inadequate.

Based on the study of the present system and the findings of the survey, a model has been
recommended for organisation structure and process. It is having a facilitation system consisting
of the senior management, an action research team (ART) consisting of senior/junior and work-
force from cross functional departments and a client system consisting of regional/head office
incharges, suppliers and contractors, and marketing division of IOC. This model is relevant to
BKPL unit as well as other pipeline units of IOC.

A model has been recommended for enhancing the skills and knowledge of the officers and staff.
This model is incorporating the elements of collaborative identification of training needs.
Planning and designing of training programmes on need basis, Delivery of training programmes
with nominations on need and use of advanced technology teaching aids, feedback from the
participants, evaluation of the training programmes conducted and benefits to the organisation
from the training programmes.

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