Organization Change &

Transformation

Submitted to : Prof Susahnto Bnarjee

: Prof. Rachna Chawala

Submitted by: Ashish Ranjan

MBA (M&E)
2008-2010

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 Executive summary
In this dynamic world where nothing is sure, one need to take a shift every
now and then as safeguard or remain in the Business. Remaining in the
Business does not mean that following the traditional path. It need to revise
it again and again sometimes it maybe to change the Business Model itself.
The objective of this report was like that to find the organizational change
and transformations what it leads to change the triggers, emotions and the
process involved it. Also the Diagnosis part is included and running all across
in the report. In the end I have also put my recommendations. Some
limitations are also there that my ideas are from manufacturing units.
Another is more opinion of juniors have been covered.
In the report I have put points as per my feelings and experiences or the kind
of treatment given to me. I am a bit afraid about maintaining its secrecy.
But, One Thing I will accept and show from my class learning that if
you see something and you have Points to say against it –JUST SAY
IT. It’s not that by every time you will be put in trouble. (Based on the
experience from Match box exercise in the class). May God save me and
allow me to adopt, adapt and adept in changes!

Introduction
The House of Pearl company is the entrepreneurial dream of Mr. Deepak
Seth. He started the path “Log aate gaye karwa banta gaya”. Enterprise
became organization and also it is now leading organization in the Garment
Export Industry. Company was incorporated as Mina Estates Pvt. Ltd. in the
Udyog vihar 5, Gurgaon. Subsequently, it changed its name to Pearl global
Ltd. and then House of Pearl Fashions Ltd., Headquartered, Gurgaon.
Company has now 40 Mn garments Per Year. The revenues are reaching up
to 1300 Crores. It has got orders from global and valuable Brands. It has
seen all the ups and downs of Business.
In the partial fulfilment of MBA (M&E) I got an opportunity to do my summer
training in the Manufacturing unit of House of Pearl Fashions. HR Head was
kind enough to put me to various departments within that only 2 months of

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short period. Even I was a objected on it by GM. Somehow I managed and
got the feel of whole Factory.
So I say that some gap filling are there which will be realized by them and
needful will be done.

Five key processes of the organization

Leadership: The leadership in House of Pearl is like the person who is

having his having chance and ball is in his coverage. It applies other than the
top management too. Like- in merchandising department the boss has time
to make a cost sheet then he becomes leader as how to decide the
Contribution per Machine, from where to use a sample piece if not specified
by the buyer, etc. and his subordinates get the job of just following. Again
when it comes to do the job completion by supervisors, tailors and other of
his co workers then he gets the influencing power. Reason is skill to deal
with different persons and their directing them to work ,motivation etc. At
that time his boss left with no option other than supporting and getting work
done without putting pressure. So I look all types of leadership is reflected
like authoritative, participative, supportive, coaching also every gets his
chance. Next power is centred with top management and he works like
having veto power. I would like to quote an example which will show that no
one has power to enjoy the power limited to him. I got a call during office
hours, voice was not clear so I just wanted to move upstairs having hope for
better network. The upstairs goes to the MD of company which was not a
common path. So he amazed over my action and questioned in a threatening
way. When I introduced that I am an intern from PSB then him calm down.
When I came back every one was looking at me curiously that you lost the
opportunity of being here. I was confused that time. Now I get reflection on
this.
Team working: Team working tendency works here since the completion of
within time and quality asserts there. No one wanted put his name as

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blacklisted. The superior orders or directs about task to juniors, they do it.
They take it as daily business not pressure of words. Also when boss doesn’t
remain alert they become more cooperative. Thus team works there in hope
of return from the other. Attrition rate of supervisors are very low and thus
they have become friends so they keep working as per their wish. If they
understand that work is really necessary they tend to do it anyhow.
Sometimes it works as let the GM shout we will do as per our wish.
Morale: They don’t understand morale.They say that life has become
repetitive by specialization of job. All the days are same why should we
worry about. They welcome other method used (if any). For my work-I could
not shout so I used to do it with humanistic touch, they used to respect me
and thus I used to get the work done. The company is running for three
decades around 20% people are from more than 15 years in the same unit. It
has made them master about all the technologies and procedures. They
know how to deal with that particular machine. It has made them less talking
ill about environment too.
Systems: As work procedures, looking things interconnected not in isolation.
There is tendency of pushing their work to juniors’ shoulder. And it has
implicitly accepted and imbibed in all levels. An idea of making boss not
disgusted is easily conveyed by their behaviour and work. The daily business
of communication with buyers making samples, getting fabrics finishing
packaging and sending it to them works smoothly. If anything hurdles and
prevents from their jobs then they just stop the work and look from what the
orders comes. This shows that they are not entitled to take any actions other
than their marked jurisdiction.
Structure:The Structure of that unit is like a defined explicitly and
centralized also a symbol of authority and control. The communication starts
and flows to the downward direction. some higher authority figures in the
structure either turn or modify it artfully for their benefits.
*Detailed structure is mentioned in the below part of Report.
The respect and power depends on authority holding. Again the decisions are
taken from the top after discussion or information or suggestions from same
level employees and conveyed to lower. Here quick decisions used to be
necessity so one objects. In my point of view for these works hierarchy is all
right.
Informal structure: A circle has been made for equivalent levels and they
are very much adaptable to it. It is very rigid and entry is restricted.
Workers- during break they get together and talk all sorts of things. Gaining
experience has got promotion to colleagues but relations are same. This has
reduced communication gap. Also during placement and common hiring
process some people have selected in different department. Thus
information diffusion takes little time if it is not taken very confidential.
Technology: A forced updation in the environment has forced for changes
or upgradation in the living style of people. As shifting its accounts to a
corporate building as made significant mark in lifestyle of people. I saw that
response to changes in environment by management have able to imbibe it

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with very little resistance. Working condition is kept on improvisation as
superior also needs to visit them for their roles. I haven’t get chance to hear
the ill of installed technologies.
Culture: Pearl global Ltd’s manufacturing unit is working among the hubs of
exports houses and 24/7 work life, abusive language, curved sexual
mentality etc has become common. At the same time people in department
of merchandising are joining after their fashion designing course that need to
look trendy and formal behaviour,open thinking etc. are there. The large
number of workforce is not localities being specific 70% are from East India.
It has caused a shared culture and has able to keep off cultural disputes and
lobbyism. Performance delivery is just that much amount of work which is
necessary for remaining in the job. Since there is no counting of his/her
contribution in the final result so one keeps oneself busy. There are several
clusters as circles within the organization. They exist as their salary structure
and power given. No one interacts or crosses their boundary. The process is
in expansion. The need is to keeping its elasticity by adding more people so
that its coverage expand, as a result larger knowledge pool.
Strategy: A strategy of management to work by injecting water, works
here. Since number of workers are huge so any hike in payment cause
significant changes in the administrative budget. So bonuses are given to
satisfy them. So a transactional approach works there from contractual
employees too. Again People who have been allotted key roles, important
positions, don’t want to have juniors who can object to their decisions. They
just need assistance and want juniors to learn and mature with the business
mantras.

Triggers for Changes

The triggers worked by expanding its operations and it led to change.
Company’s extensive marketing has succeeded in gaining larger orders
which needed to separation its operation with others. Also approaching to
global and valued buyers has imposed a special kind of pressure to work
them better and in a standard way. An external trigger has made from top
management that campus should be renovated and capacity should be
added. During this process some old or conservative or not adaptable people
has been got rid off. At the same time people who could not be laid off sent
to some side business which need not to move in a faster or inhabitant work.

Internal: Youth has joined this business due to attrition. They have caused a
suggested impact in the company because of flexible behaviors, action. Also
they have fetched innovative working styles, ideas, practices in factories.

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Moreover they have created interventions in the repetitive works. The
independency given to some of the department has also worked as the
internal triggers for changes e.g. IT. It is as advanced department of the
House pearl as any of the software company. The reason may be heading by
young and bright fellow who has encouraged them to work as per their wish.
Sometimes looking at this department one get confused that is it the same
company House of Pearl.
External: The promotions from government to Indian export and APEC
(Apparel Export Promotion Council) has worked to promote it so that it see
its peak. Company’s business depends on following the standards set or
prescribed by Buyers. Company has worked on it. Messages are conveyed to
the all levels. People have realized it by regular visit by labour officers and
representatives. This has made them that they need to improve their work
otherwise they will have to go.
Emotions: During this recent economic meltdown Export business was hit
severely. I think this is the first time they experience that bad time after their
establishment. Their business has were running in losses. I was working
there during April 2009 when Recession was on peak but I never saw any
decrement in their business and not any laying off as other companies . I was
staying in the Palam Vihar Gurgaon where most of the export houses are
operating. I used to come in contact to the people with grievances of
retrenchment and had nothing to do.
This worked as enabling for people within Pearl. They were feeling fortunate
of working with Pearl. The blocking emotions I found as juniors do not have
belief on top management. They think of their being vulnerable. A trust
generation among workforce towards management is necessary. The idea
that your work does not make them happy your buttering get counted. This
blocks some new or enthusiastic persons who want to work for company.

Comparison between Formal and informal Structure

Structure: An explicit structure defined by the organization is there. This
reflects and accepted within the organization as how much authority and
control he has.
The Structure of that unit is like this:

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The respect and power depends on how much authority he holds. Again the
decisions are taken from the top after discussion or information or
suggestions from same level employees and conveyed to below levels. Here
quick decisions are necessity and it is allowed leaving any major decisions.
As per the work the hierarchy is all right.
Informal structure: A circle has been made as for equivalent levels and
they are very much adaptable in that and it is very rigid that no other is
allowed to enter into. So in break they get together and talk all sorts of
things.
One such Informal Structure is itself made by a person. He is the House
keeping Supervisor. Mr. Mishra has all informations of organization and its
people. He is known as the Narad Muni of Pearl global Ltd. He has got some
power of saving from scolds postponing someone’s transfer, helping to
entrants, etc. This has lead to a under voiced bribery. I will not put my
judgement about being it good or bad. Because, it has reduced red tape
process and in helping his/her voice to be heard but unethical.

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 Diagnosis of Organization
Organization depends upon agreed reality and the process of reading needs
to change time to time. Sometimes due to inertia the metal model get set.
People keep reading it in a similar way. This causes as illusion and
sometimes takes them to the other track. Thus Organization should be
assessed on the performance, identity, character, target setting, Productivity
etc.
The organization does not want to retain people who can blow whistle
(Shout) against any one free hand working. Even juniors have little right to
put questions marks. They only have the power of to suggest in low voice
and following whatever directions are given. I was responsible for preparing
a sample of OLD NAVY Brand. It made me a whole day exercise. At last my
boss tells me ‘That’s how work happens’. Implications are that for does not
happen as it should be one need to take care and observe what condition is.
Character in the outside environment is as the Lala Company where money
is the main motive others are successive.
The common voice I used to hear that why did you come to export house
company. That was a question mark to the kind of respect in this Industry. In
my point of view it needs to improve.

Recommendations: Interventions to create higher

level of organizational fitness.
The interventions are as planned or deliberate to intervene into their
repetitive process.This is to think through on daily actions and get new and
fresh ideas to reach to their contents i.e. Organizational Effectiveness. I think
in older times king used to have a visit in his empire in the night in disguise
which used to give him a feel of the other side of statue. One such
interventions of role exchange would work. Especially for the top
management to reflect on their action that how his subordinates feel. A
special purpose vehicle is used to define or solicit a specific task for which it
has been made. Employees work only that is necessary and cannot leave.
There should be a mentality of remaining ahead of schedule can work it can
be done through demo competition between the groups containing all its
members, including merchandiser, master, tailors and some of additional
workers as helpers.
A game of virtual organization building in which person have given some key
roles which is more necessary for the final outcomes can help in finding out
how much important their tasks are. In simple words an organization of
assembly line work will help. This could be like people are running into a line
one after another. In between a fat person is there. People behind him

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cannot cross him. Then this will affect the whole line. Getting reflections from
work will help in understanding that how their speed affects the whole
organization whether the designation is of GM, supervisor an accountant or
whatever else.
Smaller interventions could be transparent performance evaluation by asking
their participation and reward linked to it. Every now and then people keep
talking about their salaries and its comparison with other. If transparent and
role exchanges make him realize then he will respond it by improvement in
work. To implement these interventions are itself a tough task. The reason
being the attitude of being self sufficient and experienced. A credible and
more reputed and people one out of their reliable contacts can make them
participative towards interventions.
A fish bowl intervention is also necessary in which people from the same
industry but different company sit in the inner circle and host people will sit
in outside circle. Inner people are allowed talking about Host Company; their
people strengths, weakness, how they are looked in the market, etc. This will
give them a feel that what could be done in other words areas to work upon.
Comapny Officers use to work in cabins as a matter of respect. They used to
have all the goodlifestyle facilities. This is good for them but system lacks
good ideas and colloboration. Some Physical surrounding Intervention is also
there. This may cause additional cost also may be a thinking of devaluation
of seniority of people inside their cabins. So consensus building process will
help here.