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Contents

INTRODUCTION...................................................................................1
DEFINITION.......................................................................................................1 ORGANISATIONAL CHANGE .......................................................................2 PACE OF CHANGE............................................................................................2 HIGH INTELLECTUAL CAPITAL COMPANIES........................................3 BUSINESS ENVIRONMENT CHANGES........................................................3 HISTORICAL CONTEXT OF CHANGE.........................................................4 STAKEHOLDERS...............................................................................................5 COMMUNICATION...........................................................................................6 ORGANISATIONAL DEVELOPMENT..........................................................7

2.0) CRITICAL LITERATURE REVIEW.............................................8


2.1) INTELLECTUAL CAPITAL AND CHANGE..........................................8 2.2) PACE OF CHANGE VS. RESPONSIVENESS.........................................9 2.3) STAKEHOLDERS IN AN ORGANISATION...........................................9 2.4) COMMUNICATION WITH STAKEHOLDER......................................10 2.5) PLANNED VS. EMERGENT CHANGE.................................................11

3.0) MAIN BODY..................................................................................11


3.1) STRUCTURES OF ORGANIZATION....................................................12 ..............................................................................................................................12
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TEAM MEMBERS......................................................................................12 Source: Salman Shahid.........................................................................12 3.2) COMMUNICATION IN ORGANIZATION...........................................13 3.3) LEADERSHIP IN ORGANIZATION......................................................14

CONCLUSION......................................................................................15 REFERENCES......................................................................................15

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INTRODUCTION

DEFINITION This report focuses on the company named as Cavendish Laboratories. This is a medium size medical research company and develops cure for medical problems. Change management is a process, tools and techniques to manage the people side of change to achieve the required business outcome Change management incorporates the organisational tools that can be utilized to help individuals make successful personal transitions resulting in the adoption and realization of change (blogs.ittoolbox.com) Change management is a process to manage the people side of the business to achieve the required business results. Change can occur in a blink of an eye. For example if you are doing a business a new technology or a new product by your competitor can make your product obsolete and you have to catch up your streamline as soon as possible to get back in the competition. Kate Adie is the main person in the company and her role is very important as a manager for the future perspectives of the business. She should be looking for the changes that might occur in the future and should be prepared to face the challenges. (Robbins and Finley 1998).

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ORGANISATIONAL CHANGE Organisations are never static. Something about them is always changing. For example senior executives in a firm may decide to make extensive investment in a new production, planning and scheduling system, however if they do not look beyond the technical possibilities inherent in developments in hard ware and software, they are likely to be frustrated when they find that the new system does not have the desired results of reducing rates of component obsolescence, streamlining the production process, and improving performance on delivery rates. Kate Adie has to look that what people thinks of the organisational change. The intention of organisational change is to move the organisation from current state to the most desirable one. A Cavendish laboratory is a busy, task oriented and highly complex organisation so it will be worth while for Kate Adie to look for the questions like What sort of organisation we are? What are we doing? These questions will give her a chance to look the rich picture of organisation. (Ragsdell 2000) PACE OF CHANGE People in general do not like change and are likely to be resistant of change. So it is clearly very important for the designers of change to be aware of the sort of reactions their innovations are likely to receive and to bear in mind that it is resisted by those people who finds it a threat to their interests particularly their job and other interests. In management change one or two persons can make a difference and can play a changing role in the organization pace of change. These
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kinds of people have a fresh look upon the organizations problems and they can initiate the pace of change by diversifying organizational goals. (Dawson and Sandra 1996) Kate Adie who is the managing director of Cavendish laboratories has to foresee the future challenges such as managing the high intellectual capital, keeps the organisation changing with the pace of change, development of organization, communication with the stakeholders and leadership.

HIGH INTELLECTUAL CAPITAL COMPANIES Most of the companies today have realized the importance of the intellectual capital. Australia, UK, Germany, Iceland and Spain have are all taking their initiatives for the growth of intellectual capital. The software companies like SAP, Hyperion, Oracle, 4GHI and PeopleSoft are all trying to measure the intellectual capital. Besides these companies KPMG (Klynfeld, Peat, Marwick and Goerdeler) is a largest high intellectual capital company which provides tax, audit and advisory services are all very much interested to manage their high intellectual capital because it is most important asset of organisation. PricewaterhouseCoopers states that the intellectual capital in an organization is of great importance and its distribution requires great strategy, processes, integrated solutions and technology. (Marr 2005)

BUSINESS ENVIRONMENT CHANGES We know the changes that are happening around us in which we have to earn
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our livelihood and collective livelihoods. Now we move to the business changes. Business has its own fracture lines on which it works. Here is an example of the change in business. British coal has been known to the British public for the following 15 years. All of a sudden there were strikes in the industry and unfortunately the morale of the organization is lowered which in turn has resulted in its privatization. A few of the managers found it an opportunity and the others named it as a disaster. So, these are the business changes which likely to appear in business changing whole the business environment. But there is one thing in whole of the scenario that we must be optimistic and look for the opportunities in the business change. (Willie and Hodgson 1991)

HISTORICAL CONTEXT OF CHANGE The change management is vast field and is sometimes difficult to understand. It is the mixture of complex ideas of engineering, business and psychology. Historically the organizations do not embrace the change concepts even if they have difficulties in implementing new plans. Even after the realization of change management the organizations still lacked the framework to implement change. As it is mentioned that change management is a mixture so from the engineering perspective these obstacles hindering the way of change process must be removed. The other thing is psychology concerned with how the humans react to the particular situations. In 1980s the Jeanenne LaMarsh was actively using the change models with the companies like AT&T bell laboratories and later with Ford and Caterpillar. The mixture of engineering and psychological change is providing a successful implementation of the business. Today the term change management is diverse that
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it can be defined as Change management is the process, tools and techniques to manage the peopleside of business change to achieve the required business outcome and to realize that business change effectively within the social infrastructure of the workplace. (www.change-management.com)

STAKEHOLDERS Stakeholders are those individuals or groups who depend on an organization to fulfil their own goals and on whom, in turn, the organization depends (Exploring Corporate Strategy 2005) Important stakeholders are the financial institutions, customers suppliers,
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shareholders and unions. It is of great importance the concept of stakeholders. Due to their interest they may pressurize the persons inside the company and most of the stakeholders groups consist of the large number of shareholders and customers. Stakeholders management can enhance the organisational wealth by generating the positive relationship between the stakeholders and the organization. Kate Adie as a managing director of Cavendish laboratories must know the determination and assessment of the services as perceived by the stakeholders depending upon the rate of interest in the organisation. Stakeholders management ensures the strategic and operational movement of organisation. However. Key stakeholders have influence strategies so priorities must be given by the organisation in their management

COMMUNICATION Whats changing? The organisations reducing size and reconstructing, employees values and the role of the employees and managers are changing. Relationships are becoming more complex. Today organisation internal communication has revolved. The internal communication of the organisation must be effective and should be able to support the business strategy. A chief executive may want the flow of ideas and feedback from the employees. But senior managers face this dilemma when they want people to speak up. There can be discussions between the colleagues about improving the communication. The aim of the communication today is to share knowledge, align and manage the information. (Quirke 1997)

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ORGANISATIONAL DEVELOPMENT It is very important to understand the organisational development for the evaluation and measurement of the change process. .The organizational development includes the scientific management base on the assumptions of Taylor scientific management and Gilbert motion studies, Fayol principles of management and Parkers law of situation. But so far it has been searched that OD is based on modernist assumptions. By 1970s it is assumed that OD represents the planned approach although other approaches are also available. Planned approach represents the organizational efforts to achieve long term goals. These include training and development of the people by organizing workshops and enhancing knowledge, skills and activities. Major targets are to change the performance of people, change their attitude and behavioural styles. (Grieves 2000) The other approach is emergent change which is focused on organizational development through continuous change. This kind of change is most suited to the organizations in which there are turbulent environments. But one thing is to be kept in mind that all the organizations are not continuously changing so the planned approach which is the step to step changing approach seems to be more suited to the organizations. (Burnes 2000) Kate Adie has to make the following changes to develop her organisation. She needs to change the managerial strategies and cultural norms. She needs to change the style of motivation in her workforce because employees are an important part of her organisation. She also needs to improve the inter collaboration by opening up the communication system. By open communication system means that if an employee has some problem he/she has an open chance to
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deliver the problem to Kate. In this way she will remain aware of the happenings in her organisation.

2.0) CRITICAL LITERATURE REVIEW

2.1) INTELLECTUAL CAPITAL AND CHANGE There are three basic components of intellectual capital which are human capital, structural capital and relational capital. Human capital: This includes values, attitudes, and aptitudes and knows how. Structural capital: includes the technological advancements that are necessary for integration and coordination within the firm. Relationship capital: that maintains the values of relationships with external agents. (Castro and Saes 2008) The intellectual capital is the asset of the organization. In early days the organizations did not recognize the value of human intellectual capital but nowadays it seems not only be the asset of the organization but also the success of the business depends upon the management of the intellectual capital. Organizations 40% of the capital lies in its customers and 60% lies in the organization itself which is called the intellectual capital. (Mouristen and Larsen 2001). Kate Adie has to take in account all the forms of capital and to manage them in order to ensure a long time success of the business.

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2.2) PACE OF CHANGE VS. RESPONSIVENESS

Nowadays pace of change is rapidly increasing in most companies to satisfy


the needs of their customers and achieving organizational (short and long) term goals. Managers need innovation and competition among their employees in order to cope with the better quality, cost effectiveness and customer service. Managers are aware of the ways and the possibilities of change. Change is associated with managerial approach to change. As the managers implement the change in the organisations the response will be coming from the employees. The world never wants to change and shows negative response to it but it is the marketing strategy which brings changes in the people and then. For example changes which are taking place in the mobile companies are best example of responsiveness to change I think. There are thousands of models of mobiles available in the market and still the mobile companies which are highly intellectual companies keeps on launching their new handsets. The change only requires the market strategy that how you plunges and captures the market. (Collins 2003) Kate Adie has to look for the pace of change and for this purpose she can start training and development programme as a part of her business strategy. In this way workers can be prepared for the future changes that might occur. As a manager she should develop plans for the career development of hardworking people in her organisation.

2.3) STAKEHOLDERS IN AN ORGANISATION Stakeholders as discussed earlier that they are an important part of the organisation and they include customers, shareholders suppliers etc. The key to
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dealing with the stakeholders in the organisation is the balanced approach. A stakeholder has a legitimate need to be met by the company and this is the only way to achieve the exceptional results over the long term and to achieve the organisational goals. The government is also an example of stakeholder in the organisation. For example the medical technology business is the largest business in the world and for this business government is a stakeholder by getting interest in the organisation and this is because government collects its revenues from the organisation. So in order to get the long term goals of the organisations it is necessary to get the effective communication with the stakeholders. The companys policy with the stakeholder of the organisation must be effective in order that the stakeholders and the company both prosper. (George 2003) 2.4) COMMUNICATION WITH STAKEHOLDER Most companies have recognized the importance of the communication strategies with the stakeholders. The scholars have suggested the simple linear model for the communication with stakeholders. Whether recognized or not stakeholder like an audience in any conversation experience take an active role in sense making. Grunig (2002) suggested the asymmetrical way of communication with the stakeholder due to their particular interest in the organisation. Both the parties must be involved in communication where knowledge is exchanged and methods are adopted for the future perspectives. However the communication with the stakeholders does not mean that business is successful. It is only a step towards making the business to be successful. The best way found of communicating to the stakeholders is asymmetrical where both the parties are involved in the communication and both have their relevant interests been achieved. (Foster and Jonker 2005)
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2.5) PLANNED VS. EMERGENT CHANGE Sometimes the change is conscious based on reasoning and actions and this kind of change is called planned change. In contrast the change without the planning is called an emergent change. Managers make a number of decisions apparently which are not related to any planning and hence the change which appears as a result of those changes is the emergent change. Understanding the organisational change is a process that can be facilitated by the detailed planning and this is the name of the planned change. The planned change has longitudinal results while the results of the emergent change appear quickly. An important thing to understand is that in organisations both kinds of the changes appear. The planned change is the most important element in organisations but the emergent change also appears side by side. The possible approaches to the change are TQM, parallel learning structures organisational development which lies in incremental change. While in step change the approaches are BPR and project management. In planned change project management plays a vital role so this is the important thing which has to be kept in mind. TQM, action research falls in the emergent change. Both changes appear side by side and the cultural change is also a part of the organisational change. Unless the culture of organisation is changed the change process never takes place or slows down. (Hopkins 2002)

3.0) MAIN BODY

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3.1) STRUCTURES OF ORGANIZATION

CEO

MANAGER 1

MANAGER2

TEAM

LEADERS
TEAM MEMBERS

TEAM

LEADERS

Source: Salman Shahid

As Cavendish Laboratories is a medium size pharmaceutical company. It contains a huge amount of high intellectual capital. So there is a need of a best structure for the organizations. Kate Adie within the pharmaceutical company has to make structure less hierarchical and there must be an effective coordination between the managers and employees as shown above in the diagram. The recruitment made in the pharmaceutical company should be strictly on merit bases in order cope with the prosperity of the pharmaceutical company and for the
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future business perspective. There must be training centres for the high intellectual capital working in the company and there must be seminars and conferences with them at regular intervals in order to be upgraded and knowledge of the best. The company should adopt the new visions of strategic approach towards the 5 year future planning and there must be a proper strategy department working in it. So the future planning is a crucial task and for the long term existence of company it is necessary to maintain the decorum of the future aspects. The most important thing is that there must be a planning department which makes the changes on regular basis to cope with the current situations. These changes may be planned or emergent depending upon the situation in which the pharmaceutical company is passing. There must be a proper culture in organization and everyone should be aware of the culture. There must be a proper check and balance on the staff and also on the marketing department to make the profit in long run.

3.2) COMMUNICATION IN ORGANIZATION Communication must be given due importance within the organization.
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There must be a communication which is extensive. By this I mean that the communication in the organization must be multidirectional (up down and laterally) which make use of the media channels. Actually as it is an innovative firm and the main failures in an innovative firm is lack of communication so there must be a department in the organization which defines its communicating strategies and the mechanisms which the organization has to follow in order to maintain effective communication. Mechanisms for enhancing communication may include Cross functional teams and projects Team briefings Multiple media used for conferences like videos, notice boards and electronic main etc

3.3) LEADERSHIP IN ORGANIZATION The company is known by its leaders. So the leadership of the managers must be of top quality so that the organization can easily able to achieve its goals. As the leaders are the guiding stars to the organization and also they are the exemplary stuff in front of the employees so they must device the ways of leading the organization. The leadership in Cavendish Laboratories should be innovative depending upon the situation and requirement. The leadership should be at the top and building innovations and the employee management should be given significant importance. Kate Adie has to be a transformational leader. As a transformational leader she should be inspirational and motivational to her employees. She should know that
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what motivates her employees. To do that it is important that everyone should be clear about the values and visions of the organisation.

CONCLUSION
In conclusion I will add this thing that the Cavendish Lab has to focus more on innovation and also to the diversity of the company in order to meet the future requirements and also to be careful for the changes emerging around the world. Kate Adie can also take into account the TQM (total quality management) approach by which quality measures can be implemented properly in the organisation. Kate Adie can also implement the quality circles programme in which 6 or 12 people are selected within an organisation who keeps the proper check on implementation of quality because now a days customers are well aware of quality products. By taking into account these quality programmes the ultimate quality can be improved and sales can be increased. This can make the existence of the firm in the long run.

REFERENCES
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Burnes B. (2000) Managing Change: A Strategic Approach to Organizational Dynamics, Harlow Pearsoned FT, (chapter 8) Collins D. (2003) Fixing the Language of Change? A Response MCB UP Ltd, vol 16, pp 584-590 Castro G.M.D., and Saez P.L. (2008) INTELLECTUAL CAPITAL IN HIGH-TECH FIRMS: THE CASE OF SPAIN Emerald Group Publishing Ltd, vol 9, pp 25-36 Dawson., Sandra. (1996) Analyzing Organizations Palgrave, pp 10-25 Foster D., Jan J. Stakeholder Relationships: The dialogue of Engagement Emerald Group Publishing Ltd, vol 5, pp 51-57 George B. (2003) Managing stakeholders vs. Responding to Shareholders MCB UP Ltd, vol 31, pp 36-40 Grieves J. (2000) Introduction: The Origins of Organizational Development MCB UP Ltd, vol 19, pp 345-447 Hopkins D. (2002) the Evolution of Strategies for Educational Change LTSN, pp 5-10 Johnson G., Scholer K and Whittington R. (2005) Exploring Corporate Strategy Pearsoned education.

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Marr B. (2005) Management consulting practice on Intellectual Capital: Editorial and Introduction to Special Issue Emerald Group Publishing Ltd, vol 6, pp 469473 Mouristen J., Larsen H.T. (2001) Reading an Intellectual Capital Statement MCB university press, vol 2, pp 359-383 Quirke B. (1997) Communicating Corporate Change McGraw-Hill Publishing Company, pp 1-25 Robbins H., Finley M. (1998) Why Change Doesnt Work Orion Business Books, pp 83-84 Ragsdell G. (2000) Engineering a Paradigm Shift? An Holistic Approach to Organisational Change Management MCB University Press, vol no.13, pp 104120 Willie E., Hodgson P (1991) Making Change Work Mercury Books, pp 66-67

INTERNET
http://blogs.ittoolbox.com/pm/leadership/archives/change-management-a-missinglink-14883 [accessed at 24-06-08] http://www.change-management.com/tutorial-definition-history.htm [accessed 10Page 17

04-08]

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