UNIT 15 CHANGE AGENTS:

ROLES AND COMPETENCIES

Objectives
After going through this unit, you should be able to deeply understand:
various roles of Change agents
the competencies, especially the skills required for the effectiveness of
change agents.
Structure
15.1 Introduction
15.2 Role of Change Agent
15.3 Competencies of Change Agents
15.4 Summary
15.5 Self Assessment Questions
15.6 Further Readings
Appendix 1. Designing and Implementing Performance Management System :
The BHEL Experience

15.1 INTRODUCTION
Change is enevitable in the history of any organisations. Organisation that do
not change or keep pace with the changing environment suffer from entropy
and soon become defunct. Organisations have an internal environment, but exist
in an external environment. The internal environment is in terms of the task,
structure, technology, social (people) and economic variables, while the external
environment is in terms of the larger social, political, economic and cultural
factors. To function effectively, organisations have to achieve an equilibrium
within the internal variables in active interaction with each other and also with
the external environment. However this equilibrium is not static but dynamic.
Hence organisations have to modify and change to adapt to the changing
internal and external environment. Thus no organisation can stand still and
“tread water” for very long.

Different people have given different definitions. A few have been reproduced
below :

“Persons who act as catalysts and assume the responsibility for managing
change activities.” — Anonymous

“People who stimulate, facilitate and co-ordinate change within a system while
remaining independent of it.” — Newstorm and Davis

“Persons who act as catalysts and assume the responsibility of managing

change activities in an organization.” — Robbins, P. Stephen.

Managers, non-managers, employees and outside consultants can be

change agents

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Organisational Change Agents:
15.2 ROLE OF CHANGE AGENT
Development and Change Roles and Competencies

Change agents have diverse roles. They create a state conductive to change
and also produce desired change.
Some professionals consider three main roles of change agents, of course
somewhat overlapping and with varying focus and emphasis. These three main
or primary roles are:
Consultant;
Trainer; and
Researcher.
These three roles are have been briefly described below :
Consultant
A Consultant is a professional (internal or external) who applies behavioural
Science knowledge in an ongoing organization (or client system) with clear
objectives of managing change and improving effectiveness.

A consultant is a professional assisting managers and organizations in achieving

organizational purposes and objectives by solving management and business
problems, identifying and seizing new opportunities, enhancing learning and
implementing changes.

According to Curtis Mial : “The Consultant may serve as the exhaust value,
enabling the client to let off steam : as the ignition to spark action; as the
accelerator to buildup momentum; as the break for too quick action; as the radiator
absorbing some of the heat of the controversy; as the shock absorber when the
going is rough; or as the fog lamp when the future is hazy. The Consultant
may fulfill a variety of functions, but one thing he/she is not the driver”.

If we see the definition, we find that ‘Change agents’ and ‘Consultants’ have many
roles in common, and that’s why, these two words are used interchangeably.

The role of a Consultant may be ‘content role’, ‘process role’ or a combination

of both. In other words, a Consultant may have ‘Task orientation’, ‘Process
orientation’ or a combination of both.

In the fully ‘Task oriented’ or ‘Technical expert’ role, the Consultant identifies /
verifies the problem as an ‘expert’ or through an expert, helps in problem
solving by giving his/her ideas and opinions. His/her involvement is temporary
and confined to specific problem solving, relationship with client short-term and
problem focused.

In ‘Process oriented’ consultation, the Consultant is a Process facilitator not a

solution (context / content) provider. He helps problem identification and
verification by sensing and facilitating expression of feelings and attitudes, helps
in problem solving not by providing (solutions / contents) but by enhancing
problem identification and solving capability. The involvement, in Process
Consultation, is with people and groups in the organization, relationship is
personal, involved, process oriented and of long term perspective.

The Consultant’s role will merge with the role of ‘Change agent’ ultimately.
Trainer
A Change agent needs to be a trainer and educator. He has to educate people
on the need and importance of change using a variety of methodologies —
lectures, presentations, films, group discussions, role-plays and instruments, cases
2 and experiential learning etc.
The trainer role is most widely and intensively used at all stages of a change
project : unfreezing, changing (intervening) and refreezing.

Training is required for enhancing knowledge, skills and change in behaviour ,

attitudes and beliefs. Training is used both in ‘content orientation’ and ‘process
orientation’.

The Change agent, many times has to provide instruction, information on other
kinds focused learning opportunities for the client. In many helping situations,
particularly when the client is expected to acquire competence in certain areas,
the ability to train and educate is indispensable. A Change agent must be able
to assess training needs, write learning objectives, design learning experiences
and educational activities and use a variety of training / learning techniques for
transfer of learning.
Researcher
A Change agent has to carry out some research activities for the purpose of
generating valid information prior to and during the change process. Data
collection, diagnosis, generation of new behavioural science knowledge, evolving
best strategies for change by assessing alternatives and the important stages in
a change project where the Change agent has to be a Researcher. Useful
hypothesis are to be formulated and tested. A Change agent also searches and
studies literature, new developments and experiences of past interventions.

Change agents also generate new, useful knowledge about the process of
change, about specific change methods or techniques about specific changes of
a technical, structural, or process nature, or about the means of resolving
certain problems.

Goodstein and Pfeiffer consider managing change as a problem solving activity,

and enumerate five roles of a Change Agent :
– Catalyst;
– Process Helper - Facilitator;
– Solution provider;
– Resource Linker; and
– Stabiliser
Catalyst
‘Resistance’ is most common response to any change effort; therefore one of
the tasks of the Change agent is to break the inertia by causing dissatisfaction
with the status quo. Change agents sense the hidden problems and get
dissatisfied with the status quo; start challenging the usual status or way of
doing things and, thus, gradually intensify the need for change. They use
statistics, facts, examples, projections, comparisons for drawing attention to the
need of change. By sensitising people, they make them move toward
systematic steps in the change process.
Process Helper
A process helper / Facilitator, is a person who is acceptable to members of the
group, substantially neutral, with no decision-making authority, intervenes to help
the group improve the way it defines and solves the problems and make
decisions in order to increase the group effectiveness. To intervene means —
to enter within an ongoing system for the purpose of helping those in the
system (Argryris). Their main task is to help the group increase its
effectiveness by improving the process. ‘Process Consultation’ is based on this
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role. ‘Process’ in
simple words means how group works together and includes Change Agents:
Development and Change Roles and Competencies
how members talk to each other, how they identify and solve problems, how
they make decisions, how they handle conflicts etc.

‘Content’ refers to what a group is working on e.g. finding ways and means of
providing the desired service to customers. Content is the subject matter or
activities / efforts made for completion of a task. The status of a situation,
group or problem has to be observed both in terms of ‘content’ as well as
‘process’. For an in-depth understanding, an article titled “What to observe in a
group” by Edgar Schein in ‘NTL Reading book of Human Relations Training’
(1982) may be referred.

A Process helper / Facilitator can help the group in all the stages of Change
management i.e.
– Recognising and defining needs (for change)
– Analysing problems and getting change — goals.
– Augmenting required resources
– Generating alternative solutions
– Evaluating alternatives and selecting the appropriate solution
– Installing the solutions
– Carrying out evaluations to ensure that the desired changes are helping.

Problem solving skills and Process Facilitation skills are highly used in this role.
Solution Provider
In many situations, the expectation of the group facing a problem is to get an
appropriate solution. The Change agent, in such situations, by way of his being
an expert (technical / functional) provides appropriate solution. But this is not
enough; he has to understand the explicit and implicit need of the people
(users) and have to convince them about the solution, how it will satisfy their
needs. The Change agent has to motivate them for adopting the solution. If
needed, the Solution provider will make them learns how to use the new
solution and make it really effective. In most of the organizations, this is the
main expectation from a Change agent.
Resource Linker
In this role, a Change agent brings out people together, helps the organization to
discover and make optimum use of the resources — inside and outside the
organization. The resources may be money, specialized knowledge and/or skills,
tools, techniques, ideas, experiences etc.
Stabiliser
Although the change process is initiated by creating a disturbance in the
equilibrium, after successful change process the equilibrium has to be regained
once again — the newly learnt mechanisms and behaviours have to get
stabilized and become normal. A dynamic interplay between ‘change’ and
‘stability’ is required continually in any organization. The successive change
efforts, it is the experience, should be initiated only when the previous changes
have stabilized. This does not happen on its own, the Change agents have to
make this happen again by using their process and other skills.

All these roles are overlapping as mentioned earlier, the role of ‘Consultant’ is
all inclusive and that is why many persons use ‘Consultants’ and ‘Change
agents’ as synonyms.

4 Each of the roles may have many sub roles; the role of Consultant has been of
maximum interest. There are a variety of models but two models appear to be
quite necessary for a better understanding. In a change project, the clients and
Consultants (Change agents) have different influence and involvement. This
difference in the degree of involvement and influence of activity gives rise to
different types of consultancy styles or models.

One model is based on the involvement / influence of the consultant vs.

Influence / involvement of the client in the change project.

The different styles or models may be enumerated here by broadly dividing the
influence / involvement in ‘low’ and ‘high’ degrees :

i) Low Influence / Involvement of Client and Low Influence /

Involvement of Change Agent:
This model is known as the ‘Marking Time Model’ or “Survival Model”.
The change process is a formality without much seriousness.
This model is based on low mutual influence between client and Change
agent. When a Change agent is imposed on a disinterested client, the
relationship becomes that of co-existence and there is no mutuality or
meaningful inter action. The Change agent is seen as an intruder marking
time with the client system and no real change may be expected.
ii) Low Influence / Involvement of Client and High Influence/
Involvement of Change agent:
This gives a ‘Clinical model’ — like a Doctor diagnosing and treating a
patient.
The relationship is determined by the quality of professional expertise of the
Change agent, the diagnosis and the diagnostic ability of the Change agent
is a distinguished characteristic in this model. The client provides data
responds to questions and helps the Change agent to find the way for him.
The consultant diagnoses and articulates the problem, structures the situation
and suggests way for solving the problem. The ‘expert power’ of the
Change agent generates commitment for change in the client. Consultant is
more like a Guru.
iii) High Influence / Involvement of Client and Low Influence /
Involvement of Change Agent:
The resulting model is called ‘Engineering Model’. The Change agent gives
ideas and broad direction when needed and the Clients on their own work
for the solution.
In this model the client determines the freedom to be given the consultant
accepts the assignment as given to him .He carries out the study, collects,
analyse the data and presents a report generally comprising facts, analysis
and recommendations. It is up to the client to implement the
recommendations. The main assumption behind this model is that the client
needs information and analysis and the job of the Change agent is to
satisfy it.
iv) High Influence and Involvement of the Client & High Influence /
Involvement of the Change Agent:
The model is collaborative model popularly known as ‘Process Consultancy’.
In this model, relationship between the Change agent and the client is based on
mutuality; there is a mutual influence and joint identification of goals. Consulting
is seen as a learning experience for both. Problem solving is conducted in a
spirit of enquiry where either party can terminate voluntary relationship. This
model encourages open exploration, which facilitates generation of valid data
not possible in other models. The interventions are to help the client, perceive, 5
Organisational
understand and act upon events, which occur within the organization or in its Change Agents:
Development and Change Roles and Competencies
inter-phase. The main assumption is that collaboration between client and
consultant economises the time, speeds up diagnosis and commitment to action
helps the client to learn how to recognise the problem when they re-appear,
contributes to the transfer of consulting skill to the client and knowledge of
organization to the consultant.

The second model (Lippit and Lippit, 1980) also presents a variety of roles
depending upon the level of consultant and client activity in problem solving.
The model starts as a continuum, starting from the least level of consultant
activity (corresponding to the highest level of client activity) to the highest level
of consultant activity (corresponding to the minimum level of client activity).
The roles on the continuum are given in Figure 1.

High Low
Client Consultant
activity activity

Objective observer
Process Counselor
Fact Finder
Identifier of alternatives / Linker to Researcher
Joint Problem Solver
Trainer / Educator
Information Specialist
Advocate

Low High
Client Consultant
activity activity

Figure 1: Roles of consultant and client

15.3 COMPETENCIES OF CHANGE AGENTS

Competency is an underlying characteristic of a person that results in effective
and/or superior performance (Boyatzis, 1982).

After going through various roles of Change agents, it would have become
clear that they have to be master of many competencies. It needs to clarify
here that it is not possible for a particular Change agent to be the master of all
skills / competencies, that is why, Change agents also engage other Change
agents / Consultants. It is very difficult to make an exclusive list of Change
agent competencies — the roles themselves indicate many of them. The
competencies include knowledge, skills, attitudes, traits, value, motives and it is
difficult to draw a line between theses. A skill is used for applications or
working for performing a task / satisfying a role, which is a result of a number
of visible and invisible competencies. In general, competencies for Change
agents may be broadly classified into :
– Cognitive Competencies;
– Functional / Technical Competencies;
– Personal (Effectiveness) Competencies
(Self-control, attitudes, traits, values etc.); and
– Inter-personal Competencies.
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In addition, ‘Consulting’ / Problem solving competency comprising of all the
above mentioned competencies is also essential for Change agents. Each of
these competencies have been briefly explained in the following paragraphs.

15.3.1 Cognitive Competencies

Cognitive competencies are required for perceiving and thinking and are again a
combination of a number of competencies. For simple explanation, these can be
divided in two types of thinking :
Analytical thinking; and
Conceptual thinking.

Analytical Thinking enables a person to understand a situation by breaking it

apart into smaller pieces, or tracing the implications of a situation in a step-by-
step causal way. It also involves organising the parts of a problem or situation
in a systematic way, making systematic comparisons of different aspects or
features, setting priorities on a rational basis, identifying time sequences, causal
relationships or ‘If .......... then ...........’ relationships.

According to Spencer and Spencer (1993), the main underlying dimension of

Analytical thinking is ‘complexity’: the number of causes, reasons,
consequences or action steps included in the analysis ranging from a ‘simple list
making’ to a ‘complex multi layered analysis’. The second dimension is
‘breadth’ or the size of problem analysis. This may range from the lowest level
-- ‘concerns one or two people’s performances’ to the highest level - ‘concerns
long term performance’ — relating to a major division or entered in a complex
environment (economic / demographic changes and major improvements).
Common behavioral indicators of ‘Analytical thinking’ dimension in a person
are:
Setting priorities (for tasks) in order of importance.
Breaking down systematically a complex problem / task into manageable
parts.
Identifying / recognising likely causes of events or different consequences
of actions.
Anticipating obstacles and thinking ahead about future / next steps
Using a mix of analytical techniques to identify several solutions and weighs
the value of each.

Conceptual Thinking involves understanding a situation or problem by putting

the pieces together and seeing the large picture. It includes identifying patterns
or connections between situations that are not obviously related and identifying
key or underlying issues in a complex situation. Conceptual thinking uses
creative, conceptual or inductive reasoning for applying the existing concepts of
defining novel concepts.

According to Spencer and Spencer (1993), there are two main dimensions of
Conceptual thinking :
i) The complexity of thought processes and their originality — ranging from
‘using basic thumb rules’ to ‘creating new theories explaining complex
situations’.
ii) The breadth or the size of the problem analysed.

A few behavioural indicators of conceptual thinking are :

Using ‘thumb rule’, common sense and / or past experiences to identify
problems and situations.
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Comparing the crucial differences between the existing situation and Change Agents:
Development and Change Roles and Competencies
previous happenings.
Applying and modifying complex concepts, which have been learned, and
methods in appropriate manner.
Identifying useful relationships among complex data from unrelated areas.
By the above mentioned narration, the importance of cognitive competencies
might have been clear to a great extent.

15.3.2 Functional/Technical Competencies

These are the skills required to perform effectively in a particular discipline,
functional or technical area such as — Heat Treatment, Corrosion, Investment
analysis, Designing a wage and salary administration system, Organization
Development, Structural Design etc.

The Change agent, who is working for identifying or resolving problems, must
have the necessary knowledge particularly as Problem identifier or/and Solution
provider. Technical / professional competencies include mastery on a body or
field of Job related Knowledge and skills and also the motivation to enhance,
use and disseminate work-related knowledge/skills to others. According to
Spencer and Spencer, there are four main dimensions to Functional / Technical/
Professional competencies:
i) Depth of Knowledge and Skills : This is described in terms of formal
educational qualifications, training , expertise gained through informal study
or working experience.
ii) Breadth of Knowledge and Skills : It is the managerial and organizational
expertise necessary to manage, coordinate or integrate diverse people,
organizational functions and units for achieving common objectives.
iii) Expertise Acquisition Motive : The efforts to maintain and acquire
expertise ranging from simple maintenance to extensive efforts to attain
mastery in new areas.
iv) Distribution / Dissemination of Expertise : This ranges from ‘no special
knowledge’ to ‘share the knowledge/skill to the highest level’ or ‘publishing
new technologies or new methods in professional/ technical journals’. A few
behavioural indicators are :
Striving to keep abreast with emerging knowledge and skills.
Exhibiting curiosity by exploring beyond one’s immediate fields.
Readiness for helping others in resolving their problems.
Interest for studying new subjects
Volunteering to go out to share the expertise for disseminating new leanings.

Change agents / Consultants are engaged for solving problems, and all problems
apparently will emerge in one or more of functions/departments/ processes of
the organizations. Functional / technical knowledge provides a perspective to
perceive in a holistic manner and also quite essential for interacting with and
convincing the client. It adds to the confidence and credibility of the Change
agent. The author, as an interval consultant was processing the manpower
proposal of a large Engg company. While discussions one of the line managers
was insisting for additional Manpower for the newly installed 8000 Tonnes
press. Knowing the designation of Dy Manager (Personnel), he thought him to
be a non-technical person and asserted quite arrogantly that only an Engineer
would understand the issue. The author challenged him to come to the press
and told that being an Industrial Engineer (and Metallurgical also), he had
assessed manpower for a similar press 10 years ago in my previous
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organization, hearing this, the manager became embarrassed and agreed what I
was telling.

15.3.3 Personal (Effectiveness) / Self Management Competencies

These competencies help a person to be effective in achieving his goals,
actions even amidst environmental difficulties and pressures. For effectiveness
of Change agents / Consultants, the following personal / self management skills
are quite essential.
Self Control
It is the ability to keep emotions under control and retain / enhance one’s
effectiveness even when faced with hostility and severe stress. This
competency is described by the intensity, and resulting scope of the control
exerted by a person on him/herself indicating a wide range of controls ranging
from the individuals’ minimal control of self by avoiding negative actions —
controlling self in order to improve the situation to controlling or calming others
as well as one’s own reactions.

A few behavioural indicators are :

– not being impulsive;
– resisting one self from aggressive involvement;
– remaining calm even in hostile and stressful situations;
– exploring and using functional way of restraining stress; and
– responding to problems constructively even in hostility/
and stressful situations.
Self Confidence
It is an individual’s belief in one’s own capability to accomplish a task. It also
includes the individual’s expression of confidence in highly challenging situations,
in making decisions, forming opinions and handling failures constructively. A
positive self-concept perpetuates self-confidence.

Two main dimensions of Self-confidence have been enumerated as :

i) Intensity indicating how much challenge or risk the individual has confidence
to face — ranging from ‘simple independent functioning in a normal work
situation’ to ‘taking on extremely risky tasks’ or ‘challenging the boss or
clients’; and
ii) Dealing with failure — ranging from ‘blaming others for failure’ to
‘admitting own mistakes to others’ and ‘acting to correct problems’.

A few behaviours have been observed as :

– Making decisions / acting in spite of disagreements from others;
– Presenting oneself assertively;
– Making statements telling confidence in one’s own abilities and judgment;
– Stating one’s own positions explicitly and confidently even while in
conflict with superiors;
– Taking or accepting/personal responsibility in case of failures, mistakes or
slippages;
– Using mistakes as learning opportunities; and
– Analysing one’s own performance for knowing the causes of failure and
work for improvements.

A Consultant, very often has to face hostile clients or their employees, and
very uncertain and new problems, which he would not have handled earlier, 9
Organisational
Self confidence helpsin retaining ones poise and facing the situation Change Agents:
Development and Change Roles and Competencies
optimistically and permeating confidence in others.
Flexibility
Ability to adapt to and work effectively in a variety of situations with different
individuals or groups. Understanding and appreciating opposing and alternative
perspectives on an issue, trying to adapt to an approach in changing situations
and readiness to change or accept changes in one’s own work or organization —
are crucial for flexibility. Flexibility may be assessed on two dimensions
(i) Breadth of change — ranging from own opinions to adapting organizational
strategy; and (ii) Speed of action ranging from slow to instantaneous.

A few indicators are :

– recognising the meaning in opposing view points;
– adopting easily to changes at work;
– flexibility in applying rules / procedures depending on the situations and the
super ordinate goal; and
– changing one’s own behaviours to suit the situation.
Organizational Commitment
The individual’s ability and willingness to align one’s own behaviour with the
organizational needs, priorities and goals indicate organizational commitment.

According to Spencer and Spencer, it may be assessed on the dimension

‘intensity of commitment’ indicated by the amount of sacrifices made for the
organization’s benefits.’

A few behaviours indicating organizational commitment are :

– Willingness to help colleagues to complete their tasks.
– Aligning one’s own activities, priorities, goals to meet organizational needs.
– Demonstrating cooperation to achieve larger organizational objectives.
– Meeting organizational needs rather than one’s own professional needs.

If the clients sense organizational commitment in Change agents, their credibility

shoots up and much of the resistance starts giving way.
Initiative
Initiative indicates a preference for taking action; doing more than is required or
expected in the job, doing things that no one has ordered or requested.
Improving or enhancing the results and avoiding problems or finding or creating
new opportunities on one’s own without anybody’s orders or instructions are
indicative of initiative.

According to Spencer and Spencer, there are two main dimensions for
understanding and assessing initiative (i) time dimension — ranging from
completing decisions made in the past to acting now on problems or
opportunities that will be realized only in distant future; and (ii) Discretionary
efforts like self motivation or the extra or unrequited effort put forth to
complete a task or goal.

Initiative is visible when a person refuses to give up after facing obstacles,

recognises and seizes opportunities of improvement, performs far more than the
job requirement and anticipates and makes efforts for seizing an opportunity
which is not visible to others.
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A few other Personal competencies may be enumerated as :
communication — written / oral presentation;
assertiveness;
visioning;
thoroughness; and
persuasion

15.3.4 Inter-Personal Competencies

These competencies are essential for dealing with other people effectively.
Inter-personal competencies are a bunch of different skills largely overlapping
with each other. It is very difficult to clearly enumerate all such slots.
However, some of the inter-personal skills may be enumerated as :
Inter-personal relations;
Helping a person; and
Developing and maintaining smooth, co-operative working relationships
with colleagues, superiors, customers, clients etc.

In their behaviour, persons having such competencies show awareness of and

consideration for the opinions and feelings of others. Such skills put people at
ease. These skills can be interpreted, understood and assessed at different
levels.

Some of the characteristics behaviours used for assessing the IPR

competencies are :

Maintaining composure in interacting even under stress;

Demonstrating good judgement, poise and maturity in interactions with
employees and customers;
Interpersonal style serving to enhance rather than undermine relationships
with others;
Treating others with respect and dignity;
Exhibiting empathy seeing things accurately from the emotional perspective
of others, and caring about their well being;
Understanding own feelings and expressing them functionally;
Showing genuine respect for the wishes, preferences and confidentiality of
clients, and advocating for them when appropriate;
Managing conflicts constructively by searching for areas of common
agreement;
Recognising and acknowledges the feelings of others, and demonstrates
respect;
Showing empathy, sees things accurately from the emotional perspective of
others, and cares about their well being;
Using formal networks to accomplish tasks;
Manages conflicts, dealing with others appropriately in difficult situations;
Respecting confidentiality and exercising discretion when sharing
information;
Developing and leveraging a network of relationships / contacts with people
and institutions capable of impacting business performance;
Using social events to improve and strengthen professional relationships;

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Using the network to identify opportunities, gather market intelligence and Change Agents:
Development and Change Roles and Competencies
seek input into problem with a view to increasing the work effectiveness;
Participating actively in relevant business fora and taking steps to best
represent the organization positively;
Working effectively with relevant stakeholders to expand common ground
and maximize buy-in into organizational priorities;
Understands unique desires and preferences of significant others / external
bodies and uses personal touch to strengthen key business relationships.

IPR competencies, as mentioned earlier are a cluster of different skills /

competencies. A few important ones are briefly explained below.
Communication
There are three purposes of communication :
i) Ensuring that the message conveyed has been fully understood;
ii) Ensuring that the conveyed message has been accepted by the receiver;
and
iii) Ensuring that the receiver of the message has got motivated to act for
doing what he has accepted to do.

Communication includes grasping, processing and articulating thoughts and ideas

to convey and use information in a meaningful manner. These skills also can be
understood and interpreted at different levels. A few of the important
communication skills are :
— Speaking;
— Writing;
— Asserting;
— Listening;
— Questioning;
— Paraphrasing;
— Giving feedback;
— Receiving feedback; and
— Empathising.
Inter-Personal Understanding
For having effective inter-personal relations, a desire and capability to
understand other person is essential. The ability to listen accurately and
understand is not only for the spoken words but also for unspoken or partly
expressed thoughts, feelings and concerns of others. Inter-personal
understanding is often expressed by understanding the moods and feelings of
others, developing an understanding based on listening and observation to predict
and prepare one self for others response. The IPU includes (i) Understanding
the interests, attitudes, needs and perspectives of other people and
(ii) Understanding the cause of others behaviour or patterns of behaviour,
attitudes etc.

There are two key dimensions for assessing the inter-personal understanding
(Spencer & Spencer, 1993):
a) Depth or complexity of understanding others ranging from — understanding
meanings of the statements and actions / feelings of the communication to
understanding complex hidden reasons of the behaviours; and

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b) Listening and responding to others. This also has a very wide range of
behaviours beginning from simple listing to going out of the way to help
people with personal or inter personal problems.
Help / Service Orientation
These competencies are oriented towards a desire to help or serve others to
meet their needs. By these skills, a person is able to focus his / her efforts on
discovering, understanding and meeting the other person’s customers’ or clients’
needs.

Some of the indicative behaviours of this skill are :

a) Seeking information for understanding the explicit or underlying needs of
other persons beyond those expressed superficially by the person.
b) Taking personal responsibility for solving others problems promptly and
undefensively.

This competency also can be deeply analysed and assesses on two dimensions-
(i) focus on others’/clients’ needs behaviours ranging from expressing negative
expectation of clients to acting as a trusted advisor or advocate of the clients
and (ii) taking initiative to help others / clients; behaviours ranging from
blocking others actions to taking extraordinary efforts.
Influence and Impact
These skills help in expressing an intention to persuade, convince influence or
impress others in order to get what one wants to get from them or getting
them support one‘s agenda or the desire to have a specific effect on others.
A few of commonly observed indicators are :
Anticipating the effect of action on others.
Making efforts to give reason, data, facts and figures for convincing others.
Using examples, experience, demonstrations, audio-visual aids for better
understanding.
Building behind the scenes support for the ideas.
Using strategy in giving or withholding information for having the desired effect.
Using group process skills for leading or directing the group.

This competency may also be assessed on two dimensions : (i) number

(frequency) and complexity of the actions taken to influence others; (ii) breadth
of the impact starting from one person to the whole organization and even
outside organizations.
Understanding and Using Power Dynamics
For developing effective inter-personal relationships, the understanding of the
prevailing power relationships in the organization or between people is essential.
It means the ability to identify who are the key decision makers and centers of
influence. Also predicting who will be able to influence the situation better and
how.

The capabilities range from an awareness and impact within the individuals own
section / department to that on outside organization, customers, clients, suppliers,
government etc.

Common behaviours indicating the competency may be described along a scale

for the lowest to the highest levels :
Misunderstanding organizational hierarchy/ structure.
Concerned only with one’s own work, and ignores others signals or needs. 13
Organisational
Understanding formal structure. Change Agents:
Development and Change Roles and Competencies
Understanding informal structure.
Understanding organizational policies.
Understanding organizational issues.
Understanding longer underlying issues.

The breadth of understanding ranges from one or two parts to the international
organizations as enumerated in the previous competencies.
Relationship Building
With the help of this competency, a person is able to build and maintain
friendly, warm and trusting relationship with people and need work within and
outside one’s organization for achieving work related goals. Some of the
behaviours indicating this competency are :
Regularly and consciously working for building rapport and extending one
self to build rapport with others.
Establishing rapport with others easily.
Sharing personal information to others for creating a common ground for
widening the arena.
Establishing friendly relationships with many people who may be useful in
future.

This competency has two main dimensions :

i) Closeness of relationships; and
ii) Spread or the extent of relationships / network.

Closeness of relationships building have a number of behavioural characteristics

and levels :
Avoiding contact with others
Accepting invitations
Making formal contacts for expediting tasks or work activity
Making informal contacts occasional
Building rapport
Making social contacts
Making firmly level
Making close personal friendships.

The spread of relationships also has different levels :

One or two persons
Work Team / group
Department
Division
Entire organization
Other organizations in similar to other business
Political / Governmental, organizations.

Relationship building is one of the most valuable skills as much of the

formalities in selection and identification of Change agents are eliminated due to
a feeling of trust and mutuality. The diagnosis also becomes easy and perfect
14 due to openness.
Negotiation
This competency also is referred as a cluster of traits and competencies and
enables an individual or groups with differing / opposing wishes or views to
reach a mutually satisfactory agreement. This skill can be observed in wide-
ranging behaviours as indicated below :
Being aware of the importance of negotiation and understanding the
principles behind it.
Realising that winning at all costs is not important and a win-win solution is
most effective in the long run.
Arguing persuasively for getting what one should get.
Preparing well for every negotiation .
Researching the interests of the other side and uses own understanding to
make position stronger.
Finding ways of gaining commercial intelligence in respect of leading
competitors, and getting complete relevant information both about the
organization and the individual that he will be negotiating with.
Using different approaches and styles (i.e. avoidance, forcing, accommodating,
collaborating and compromising) - to achieve the desired objectives.
Demonstrating the need to plan for all major areas of the deal in the preparation
phase, so that it is possible and plan the use of possible concessions.
Using existing or new documentation to accompany the negotiations, and
using an agenda as a positive aid to negotiations.
Gathering as much information as possible during the negotiation process
and tries to assess the other sides negotiating style and level of conviction.
Using informal and formal networks to accomplish tasks or objectives.
Understanding what is meant by carefully analysing what is said, and the
importance of identifying the other side‘s non-negotiable items.
Communicating the potential loss to both parties due to failure of negotiation
process and ensures that the discussion does not end in a deadlock.
Creating a win-win situation and influencing others to make sincere efforts
for this.

15.3.5 Consulting Competency

Although Change agents are also considered to be Consultants, however, in this
section, this is being taken as a specific competency of Change agents. These
are needed to complete the various phases of a change project and adapting
the consulting role as needed for a variety of situations.
General Skills
These skills are necessary for selecting and expediting different roles as a
consultant. These include :
– Self awareness about critical traits / competencies possessed,
– Understanding one’s own motivations in assessing need for change and the
drive to bring out the change.
– Understanding philosophy and ethics and process of change.
– Anticipating and predicting the relation of one possible change to other
possible changes.
– Understanding the desired (coverage, character, structure of changes /
group of changes.
– Determining the barriers, resistance and readiness to change.
15
Organisational
Determining the resources a valuable for change. Change Agents:
Development and Change Roles and Competencies
Ability to determine his own role in changing situations.
Understanding group processes.
Distinguishing work and personal issues.
Active Listening
Handling Emotions, Emotional Intelligence
Conflict Resolution
Building a conducive climate — trust and openness.
Contracting Skills
It is the skill needed for building a verbal agreement with a client and includes :
Communicating the understanding of problem — what problem has been
perceived by the consultant.
Clarifying the client’s needs
Expressing one’s own needs
Documenting main decisions and commitments
Obtaining clear agreement on the tasks (problems), scope, objectives, time
frame and financial implications

A few other contracting skills may be enumerated as :

Promising only what can be delivered.
Saying ‘no’ without guilt and fear.
Setting realistic goals for self and client
Working comfortably with authority figures.
Letting some one else take the glory.
Working with people one does not like
Assessing personal needs that affect acceptance of the contractor.
Sensing and Diagnosing Skills
These skills may be split up into :
Helping the client to discover and clearly understand the problem.
Questioning — putting appropriate questions for explicit understanding.
Helping in finding answers to questions.
Inspiring trust of the client in the abilities of consultant
Helping client generate solutions
Skills to diagnose problems
Determining the methods, which the clients believe, should be used for the
change.
Creating awareness of the need for diagnosis and change in clients.
Creating a perception of the potentialities for change expectations.
Understand the values and cultures of the organization.
Assessing readiness for change.
Obtaining multiple perspectives on the problem / situation.
Ability to gather and summarize huge volumes of complex data and to
involve the client in understanding and interpretation.

16
Problem Solving and Decision-Making Skills
Involving others in problem solving and goal setting.
Understanding the business environment and operative and the effect of
problems thereon.
Stating the problems and objectives explicitly.
Setting one’s ideas effectively.
Enclosing clients to generate alternative solutions — summing discussions.
Evaluating alternatives — considering effects of various alternatives on the
derived outcome and effect on other organizational components.
Making sound timely decisions using appropriate styles — even amidst
uncertainty and risk.
Challenging ineffective solutions
Seeking help from others
Using a variety of techniques for creative problem solving.
Implementing Skills
These skills are essential for successfully carrying out a project of planned
change.
Conceptualisation and articulation of the activities required for implementing
the plan.
Defining objectives in such a way that it needs to easy definition of
methods.
Attending to details
Taking responsibility
Helping clients use their strengths and resources optimally.
Changing plans in case of emergency
Controlling one’s anxiety while performing
Intervening at appropriate time
Admitting mistakes and working for rectification
Building and maintaining morale and motivation of clients and users and
project team.
Prioritisation of activities / use of resources.
Time management
Project management
Team working / Team building
Understanding the impact of change activities
Deciding upon the amount of action to be made before making an
assessment of the progress.
Evaluating Skills
For determining the success or failure of a change initiative / project, evaluating
skills are necessary.
Diagnosis of cases when group action becomes inefficient using different
techniques — instrument, interiors, focus groups etc.
Assessing one’s own contributions.
Project Evaluation.
Soliciting formal / informal feedback from appropriate persons.
Measure the success / status in comparison to the stated objectives. 17
Organisational
Evaluate content (what was done) and process (how the work was done). Change Agents:
Development and Change Roles and Competencies
Acknowledging / accepting failures in a decent manner.
Feeling comfortable in receiving the feedback / evaluation of the client.
Ability to deal with unprecedented changes.
Devising / using evaluation tools.
Use of score cards, rating scales and other means.
Rapport preparation.
Leave the project gracefully after the task is finished.
Attributing reasons of failures.
Motivating the client / Team for rectifications / improvements.
Maintenance Skills

Creating a sense of responsibility, passion for the new system, procedures

etc., after change.
Motivating for active participation.
A sense of collective responsibility for ensuring continuity and spread of the
change initiative.
Developing a strong support for the change initiatives.
Acknowledgements, recognition, rewards, reinforcements.

Menzel has interacted with a large number of consultants and Change agents
and has summarised the following list of Change agent skills.
Educating

Researcher
Writer
Designer
Teacher
Instructor
Trainer
Advocate
Conference Leader
Life / Career Planner
Diagnosing

Action Researcher
Diagnoser
Survey Designer
Data Analyst
Evaluator
Consulting

Role Model
Relater
Expert in Processes
Confronter

18 System Analyst
 Inventor
Designer / Planner
Adaptor
Linking

Resource Linker
Internal Linker
External Linker
Theorist - Experts for action research
Referrer

15.4 SUMMARY
This section provides a good exposure to the roles of Change agents and
various competencies. Most of the competencies are not very unique to the
Change agents, rather they are required for any manager because today the
managers are expected to be Change agents. Many organizations have made
planned efforts for developing internal Change agents, Bharat Heavy Electricals
Ltd. is one of them who have as, a part of their OD efforts succeeded in
developing a few Change agents of national and international repute. These
Change agents have not confined themselves to only specific OD activities,
rather they have contributed in identification of change opportunities and
facilitation in many organizational, technical, functional and personal and
interpersonal areas. They are also contributing in HRD policy formulation,
introduction of new mechanisms and of course, as valuable trainers. There are
mutual benefits and limitations of internal and external Change agents, but the
roles and competencies are mostly identical. The internal Change agents have
to face additional problems for getting recognition and working within the
hierarchy of power sector of the organization making their task more difficult.

In order to get an outline of a real life change initiative highlighting the change
process as well as various role Change agents are to play, paper entitled
“Designing and Implementing Performance Management system : The BHEL
Experience” is enclosed in the Appendix 1.

15.5 SELF ASSESSMENT QUESTIONS

1) Write an essay on role of change agent citing suitable examples.

2) What are the skills required for becoming a successful cahnge agent.

15.6 FURTHER READINGS

The author gratefully acknowledge the following authors and sources :
Spencer, Lyle M.Jr., Spencer Signe M, Competence at Work, John Wiley &
Son, Inc. (1993).
Sarathi, Parth, Planning, Auditing and Developing Human Resource,
Manak Book, New Delhi.
Sinha, Dharni, P, Consultants and Consulting Styles (Unpublished paper),
COSMODE, Hyderabad.
Robbhins Stephen P, Organizational Behaviour, Prentice Hall of India, New
Delhi. 19
Organisational
Shein, E, H, Process Consultation: Its Role in Organization Development, Change Agents:
Development and Change Roles and Competencies
Addison Wesley.
Schein, E, H, ‘What to observe in a group’ (paper) in NTL Reading book of
Human Relations Training, NTL, Bethel.
Lippit, G, Lippit R, The Consulting Process in Action, University Associates,
Dan Diago.
Boyatzis, R.E, ‘Competence at Work’, in Motivation and Society, Jossey-Bass,
San Francisco.
Rees, Fran, ‘Consultant Effectiveness Pyramid,’ in The 1998 Annual: Volume
1, Training, Jossey-Bass.
Garavaglia, Paul L, ‘Change Agent Gap Analysis’ in The 2000 Annual, Vol. 1,
Training; Jossey Bass.
Saskein, Marshall, ‘Models and Roles of Change Agents’ in The 1974, Annual
Handbook for Group Facilitators, University Associates, San Diego.
Block, Peter, Flawless Consulting, Pfeiffer & Company, San Francisco.
Sarathi, Parth ‘Designing and Implementing Performance Management Systems
- The BHEL experience’ (unpublished paper).
Timothy, M. Nolan, ‘Consulting - Style Inventory : A Tool for Consultants and
others in Helping Roles’, in The 1003 Annual: Developing Human
Resources, Pfeiffer & Company.
Newstrom, J.W, Davis, Keith, Organisational Behaviour
- Human Behaviour at Work, Tata McGraw Hill - publication.
Chartier, M.R. ‘Functional roles for facilitating organizational change,’ The 1985
annual : Developing Human Resources’, Pfeiffer & Company, San Diego.
Sarathi, Parth. ‘Preparing Job description’ in Annual Handbook of Human
Resource Initiatives 2003, Initiatives and Interventions, Manak (Pub), New
Delhi.

20
 Appendix I

DESIGNING AND IMPLEMENTING PERFORMANCE

MANAGEMENT SYSTEM : THE BHEL EXPERIENCE

1.0 BACKGROUND
BHEL is the largest Engineering Company of India having over 47000
employees in 14 manufacturing and a dozen services divisions catering to the
needs of Power, Industry, Defense and Transportation sectors. It is one of the
leading Navaratna PSUs of Govt. of India and has been giving profits
continuously since over 30 years. In 2001-2002, the company registered a net
profit of Rs 4679 Million ( equivalent to 98 Million US $s) on a Turnover of Rs
72866 Million(equivalent to 1518 Million US$s). BHEL to day has its export
presence in over 50 countries.

BHEL was the first organization to start Corporate Planning in a systematic

manner in 1973 and has been pioneer in formulation and implementation of
HRM / HRD policies. Developing Human Resource has been the key concern
right since inception. Performance Appraisal System has been in use for all
categories of employees. For Corporate Cadre executives (E5 to E7 level i.e.
for Sr. Managers, DGMs, Sr. DGMs and AGMs), there was a uniform
Performance Appraisal System throughout the Company, managed centrally by
Corporate

Personnel. For General Managers, EDs and Board Members, Appraisal System
issued for Govt. of India was in vogue. The author has played a key role in
developing new Appraisal systems for Board level positions in Navaratna PSUs
which have already been implemented since 2000. For Executive levels (E1-E4)
also, the Appraisal systems in most of the units / divisions was uniform. A new
comprehensive Performance Management System has been developed and
implemented for all levels of executives w.e.f. 2000-2001. This paper discusses
some of the experiences of designing and implementing this System.
2.0 MAJOR AREAS OF SATISFACTION AND DISSATISFACTION
WITH THE PREVIOUS SYSTEM
The previous system continued for many years in spite of a mixed feeling of
satisfaction and dissatisfaction. The salient features of the positive and negative
aspects of the previous System (Performance Appraisal System) are
enumerated below :
2.1 Satisfaction, Positive Aspects

Very simple, takes very less time to fill up.

Non-threatening to both Appraiser and Appraisee.
Able to fulfil the administrative requirements.
Does not lead to confrontation between Appraiser and Appraisee.
Could sustain for a long time.
Personnel Deptt. was the sole custodian of formats.
Able to maintain a high degree of confidentiality about appraisal ratings.
Provides opportunity to Appraisee to indicate his achievements and Training
needs, help required.
2.2 Dissatisfaction, Negative Aspects
A Performance appraisal system only.
A passive system having no involvement of subordinates. 21
Organisational
No feedback either on performance or on training needs, helps solicited etc. Change Agents:
Development and Change Roles and Competencies
Performance goals, parameters, expectations never clarified to Appraisee.
Absence of performance standards.
No dimensions / parameters for assessing performance.
Appraisal of attributes / behaviours - main basis of appraisal.
No feedback, counseling, coaching or improvement efforts.
Appraisal ratings / outcomes not known to Appraisee.
High degree of perceived subjectivity and bias.
No linkage between Performance and Rewards.
No appraisal of potential.
Since only five grades of evaluation, many persons fall in the same grade -
difficult to distinguish between them.
3.0 STIMULATING THE NEED FOR A NEW SYSTEM

3.1 Initial Efforts

The initial efforts for stimulating the need can be traced back to the year
1986-87 when as a member of the Corporate Personnel, the author made
initiatives to widen the HRD activities, which were at the time largely confined
to Training in most of the divisions and OD in a few. A one / two day training
module on “Performance Feedback — a tool for HRD” was designed and
conducted to encourage the involvement of Appraisee in Appraisal process and
also to make executives adopt Performance Feedback & Counseling for
Subordinate Development. Six such Programmes / Workshops were held at
Corporate Office and other divisions. This increased the awareness and
motivation for adoption of this intervention to a great extent. Since the ongoing
Appraisal System did not have provision for this mechanism, it could not catch
up.

A booklet titled ‘Performance Feedback - a Tool for HRD, was published in

1988 and distributed to executives to adopt some of the practices of
Performance Management. Another effort made after a few years could not go
much ahead.

In various diagnostic exercises, Workshops, syndicate group discussions —

dissatisfaction with Performance Appraisal System was often emerging sharply
and some of the HRD efforts also were constrained due to the existing system.
3.2 Training Programme on Performance Management
In 1996 at Human Resource Development Institute (BHEL), a six-day training
programme on “Performance Management” was designed and conducted by the
author with the hope of creating a critical mass that could stimulate the need in
various units. Personnel / HRD Heads from various divisions including
Corporate Office and some Line managers at senior levels were invited to
participate in this programme. The expectations / requirements of a good
Performance Management System could strongly emerge during the programme
and the limitation of existing system also surfaced. A number of structured
experiences, instruments and cases were used in addition to experience sharing
by a few other organizations.

As an outcome of the workshop, a strongly felt need of a comprehensive

Performance Management System emerged along with the main expectations
and motivation to influence others to contribute in evolving the Performance
Management System for BHEL.
22
3.3 A Survey on Human Resource Practices in BHEL
Based on a survey in 1996-97, conducted by the author using a questionnaire
developed by Dr. Udai Pareek and Dr. TV Rao, the average score for the
Ideal Performance appraisal system was found to be 72.76% and that for
Existing one was 37.6%, leaving a huge gap of 35.16%. Table enclosed at
Annexure I may be referred for further details.

This indicated dissatisfaction of respondents with the existing Appraisal system

but also indicated an excellent appreciation of the requirements of a good
appraisal system. The findings thus, served two valuable purposes :
(i) convincing others about the need to revise the system and (ii) the
hopefulness that people would be able to develop and appreciate a good
Performance management system. On the basis of the findings, it also became
clear that mere new Performance appraisal system would not be adequate: a
comprehensive Performance management system was the need of the
Organization. The Survey findings proved to be highly useful in future efforts.
3.4 One Day Training Module on Performance Management in all
General Management Programmes
Encouraged by the responses of this programme, a one-day session on
Performance Management was introduced in all General Management
Programmes to be conducted by HRDI.

Normally, 10-12 such programmes were conducted every year for the BHEL
executives at the level of Senior Managers (E5) and above. After conducting a
few programmes, a pattern emerged and this became attain our module.
Highlights of the coverage are given below :

i) Where are You, Where do you want to go- defreezing. In order to stimulate
the need of Performance Management efforts, agreed indicating five stages
of organizational health developed by Robert Camp were projected and
responses of participants were asked indicating where did they find the
company.

The grid was as follows :

World Class : A company recognized as the best in its area of

function, bench-marked by other organizations.

Best in Class : A company which usually exceeds customers’

expectations, out performs all direct competition,
provides a clear competitive edge.

Satisfactory : A company which meets all customer requirements

and internal requirements in respect of cost, margins,
asset utilization and cycle time.

Unsatisfactory : A company which is a\not able to satisfy all

customer requirements or internal requirements.

Unhealthy : An ineffective, inefficient Company which is at the

risk of falling. Needs major redesign.

They were encouraged to share their perceptions and asked whether the
organization should remain at the same status for achieving BHEL Mission,
Vision or something else should be done. Most of them got somewhat
sensitised and expressed the need of concerted efforts to enhancing
performance of the organization. It would be further explained that the grid had 23
Organisational
been prepared consisting
both efficiency and effectiveness aspects and further Change Agents:
Development and Change Roles and Competencies
explanation was given whenever required.
ii) Expectations from an Effective Performance Management System
Through brainstorming, the expectations from an effective Performance
Management System were collected. Some of the commonly stated
expectations are :
Beneficial to the appraisee, appraiser, company and customer
Objectivity in appraisal
Able to provide information on what is to be done, what is to be
accomplished?
Enable role and goal clarity
Provide clarity on standards of performance
Ensure adequate support to the performer
Able to make distinction between performance of employees
Provide opportunities for performance dialogue and periodic feedback
Able to motivate for achievement oriented target setting
Periodic monitoring and evaluation of Performance
Enable the Performer and his superior to know the extent to which the
tasks / targets have been completed
Facilitate identification of Training and development needs
Able to improve performance in future
Creation and development of trust and openness between boss and
subordinate
Provide feed back to the Boss also
Active involvement of Boss and Subordinate at all stages
Provide rewards for superlative performance
Provide valuable inputs for Career and Succession planning.

Apart from building an inventory of expectations, it stimulated the group

process, enhanced participation and helped in creating a risk free environment.
This also proved to be the foundation for identifying and designing the
components of the system and convincing the participants at later stages when
they experienced discomfort or difficulty in carrying out certain activities.
iii) Clarifying the Understanding of ‘Performance Management’
It was also found essential to arrive at a common Understanding on term
‘Performance’. Taking the help of available literature and our own perceptions,
a definition was evolved after presentation of a number of definitions —
“Performance is a definition of what is to be accomplished or carried out.” It is
also a process that leads to results. Performance Management, therefore, may
be conceived as a continuous process of working with people to accomplish
desired results. This process should aim at :
a) Establishing a shared understanding about what is to be achieved, how is to
be achieved and
b) Encourage involved persons to work in such a way that possibility of
achieving results is maximised.

Some research findings indicating requisites of getting good performance were

also discussed.

24
The group by this time would become able to enumerate important components
of a Performance Management System.
iv) Achievement Oriented Goal Setting
Experiential learning has been extensively used in this module and a few games
and exercises commonly used in behavioural science have been used with a
wide perspective. For example, a ‘Ring Toss’ exercise was used for clarifying
some of the basic assumptions of achievement orientation and goal setting at
individual level. The exercise of ‘Tower Building’ was also used some times
along with ‘Ring Toss’ and sometimes independently for stimulating
achievement oriented target setting, understanding the process of joint decision
making (consensus) and activities to be undertaken by supervisor and boss for
enabling the worker perform better. These exercises were also used for
internalizing achievement imageries given by McClelland and examining the
status of one-self and providing insights. The ‘achievement syndrome’ model
was used to independently emphasise the strong need, positive goal anticipation,
strong positive feelings, urge to identify the blockages and minimizing or
removing the blockages by the self initiated efforts and help of others. This
proved to be very relevant at the later stages of system implementation.
v) Power of Expectations
The concept of Pygmalion effect (Power expectations) was very helpful in
motivating the participants. On the basis of the experience gathered in the
previous exercises, the concept was very effectively driven in. It is expected to
vitalize the process of goal setting and subordinate development.
vi) Giving and Receiving Feedback
The felt need of Feed back also emerged during the exercises.

This exercise along with the Job Diagnostic Survey (developed by Hackman
and Oldham) helped the participants to understand the role of ‘autonomy’ and
‘feedback’ in enhancing the performance of subordinates. Also the need of job
rotation for optimizing ‘skill variety’, ‘task identity’ and ‘task significance’ was
also demonstrated vividly through their own scores on the above mentioned
survey. This exercise, in turn, crystallized thoughts regarding the role of
superiors in enabling the superlative performance of subordinates.

The three cases on Performance Counseling (Gupta…, Punjabi…, and

Welsh…) developed by TV Rao also helped the participants to understand
some of the factors, which facilitated the effects of Performance Feedback and
Counseling. The group work and presentation were highly effective and
internalizing some of the important requirements of Feedback and Counseling.

Input on ‘Giving and Receiving Feedback’ was given adding some other
features on the basis of experiential learning.
vii) Inter-personal Factors Affecting Performance
In order to experience some of the very simple but fundamental factors
affecting performance, an exercise was carried out in which 9 volunteers were
invited and given separate head bands on which different types of designations
and messages were written in such a way that others could read it but not the
person concerned. They were given a small task of arriving at a consensus
decision on certain controversial issues with the instructions that they have to
behave with each other according to the other person‘s head band while
interacting with each other. This exercise within a short time made very serious
impact on the behaviour of the participants. For example, those who had
positive headbands got energized and their performance went on increasing
while others who had negative ones felt ignored in the discussions and their 25
Organisational
performance dropped drastically. By sharing their feelings and responses of Change Agents:
Development and Change Roles and Competencies
some questions demonstrated that for positive performance, positive feed back,
involvement and participation of the incumbent is essential. It also demonstrated
that if they were ignored, their performance fell down. This helped in
highlighting vulnerability of Appraisee / appraisers in real life work situation.
Many got an insight that in order to remain effective, one has to develop the
attitudes and competencies, which would help them, remain energetic and
performing even at adverse situations. The explanation of Self-concept proved
very effective.
viii) Developing an Outline of Good Performance Management System
On the basis of the entire days work, the sketch of a good performance
management system emerged every time along with the cautions which are to
be taken every time. In the one day module in the later programmes, formats
were also given to the participants for performance planning etc. for being
tested.
ix) Performance Management - Key Elements
In the background on the experience, insights, and
expectations, the participants were able to visualise (in line
with Vroom’s theory) that the Performance of a person depends
at least on three factors :
Ability (Knowledge and skill) of the person to do the specific job.
Willingness (Motivation) of the person to do that job
Support (resources, guidance, feedback) provided by the organization.

Some Indian insights were also quite helpful at this stage, especially a quotation
from ‘Chandagya Upanisada’ –

“Whatever is done with Vidya, Shradha and Upanisada; that alone becomes
efficient.”

Vidya – (Science of) Knowledge and Skill.

Shradha – Faith (and Conviction); faith in oneself, the impulse from within.
Totality of positive attitudes.

Upanisada – deep thinking, meditative thinking on the subject concerned.

Superior efficiency will come when we combine knowledge with the energies
of Shradha and Upanisada.

Knowledge

Doing - behaviour (outer world)

Skills

PERSONAL
EFFECTIVENESS

Shradha

Being - attitude, values (inner world)

Upanisada
26
3.4 Testing the Formats
In some of the GMPs and Strategic Management Programmes, the newly
developed PMS formats got filled up by the participants and this exercise
helped us in testing the formats and validating the provisions.
3.5 Other Interventions
For stimulating the need of a new system of Performance Management and
bringing in clarity of expectations and approaches a few Workshops had been
conducted by us at Units and HRDI. In addition, this has also been a topic for
Syndicate discussions in General Management Programmes and other
programmes. Some Summer trainees (MBA) also conducted surveys / studies
in Delhi based Divisions and Units which have been quite useful.
3.6 Corporate Personnel Exercise on Identification of Thrust areas in HRM
BHEL evolved its Vision, Mission and Values in 1996 and as a part of the
implementation efforts, it was decided to identify thrust areas for the HRM
function in line with Vision 2001 / Perspectives 2002. A Corporate task force
with the author of this paper as Leader was set up drawing 9 other members
from various units / divisions of Corporate Office. Some of the task force
members had earlier (1996) undergone the first six day programme (mentioned
earlier) on ‘Performance Management’ which was designed and conducted by
the author. A weeklong intensive exercise was conducted by the task force,
which brought out 17 thrust areas. Broad objectives for each were also
defined. After presentation to top management, 5 thrust areas were selected
for further work. Performance Management was one of them. The
identification of this area as a thrust area gave a big fillip to the earlier efforts
of developing a new PMS.
4.0 DEVELOPING PERFORMANCE MANAGEMENT SYSTEM

4.1 Constitution of Cross Functional Teams

A cross functional team with 4 executives including one from Corporate
Personnel and 2 from major units, with the author as the leader was constituted
by Corporate Personnel. After a few days of discussions, consolidation of the
data of surveys and experiences of all the training programmes, syndicate work
etc. an outline (sketch) of a Performance Management System was created.
This was presented to ED(P&A), Corporate Office who gave the green signal
for further development.
4.2 Preparing an Approach Paper - Presentation to Director (Personnel),
Preparing Draft System
The system was developed around the seven components identified earlier.

Five formats covered in 8 pages were also designed. The New System was
quite different from the old one. The highlights of the system were :
Shift of focus from ‘Performance Appraisal’ to Comprehensive
Performance Management.
Increased involvement of subordinates in Performance Management
activities.
Introduction of individual level goal setting.
Increased objectivity in appraisal.
Emphasis on development not on control.
Introduction of Potential Appraisal.
Introduction of Performance based Reward system.
Shift from ‘grade’ based to ‘mark’ based appraisal. 27
Organisational
Introduction of appraisal discussions (twice a year) but marking to remain Change Agents:
Development and Change Roles and Competencies
confidential.
Introduction of Performance Improvement plans for individuals.

The System was presented to ED(P&A), Corporate Office and Director

(Personnel) and a few changes were made thereafter.
4.3 Presentation to Personnel Heads
The system was presented to Personnel Heads who reacted sharply on some
aspects. A copy of the document was later on sent to them for presentation at
units and getting comments of other executives in Personnel Department and
Line Managers. Presentation was also made to the Members of Executive
Association. Comments were received and studied by the CFT Members.
4.4 Examination of Issues Raised and Testing of Assumptions
In training programmes of HRDI, the issues emerging out of the various
presentations and comments received were specifically raised directly and
indirectly and assumptions were tested. This helped in retention and change of
some of the provisions.
4.5 Presentation in Management Committee Meeting
The author at the Management Committee Meeting made a presentation. This
evoked a mixed reaction — welcome, appreciation, criticism etc. A committee
of EDs was set up for in-depth examination of the system. The committee
after detailed examination asked for simplification.
4.6 Simplification of System and Formats
Simplification of the system was not an easy task for the CFT as it was at the
cost of some compromise on the expectations. It was a question of a very tight
ropewalk - at one side quality of the system on the other acceptance - striking
the balance was a really difficult task. There were sharp and hot discussions
amongst the CFT members on specific issue a number of times. Some amount
of ‘Quality’ had to be sacrificed for ‘Acceptance’.

After simplification - again a series of presentations were made - to HRDI

participants and top management including Director (Personnel) and others for
knowing their responses.
5.0 SELLING THE SYSTEM TO USERS

5.1 Presentation of the Draft System at Units / Divisions

As advised by the Director (Personnel), full presentations at all major units /
divisions were made by two of the CFT members. Around 100-120 senior level
managers at a time attended presentation sessions of 4 hours duration at every
unit. Two such sessions were held at every unit. These sessions were really
stormy as strong emotions emerged everywhere. All the pent up dissatisfaction,
anger and hostility to power erupted severely and a very high degree of
process facilitation skills were required for facilitating such interactions. Snap
surveys, to get their perception on a few critical and controversial issues were
conducted through a semi-structured questionnaire in a few of the units.
5.2 Amendment of the System and Simplification
A few major changes into the draft system were made subsequently. One such
example is making the appraisal completely open; even the final points would
be allotted in presence of the Appraisee. The simplification also had created
some problems.
28
5.3 Presentation to Full Time Directors
The system was presented to full time Directors including CMD and comments
were very valuable.
5.4 Presentation to Management Committee
Finally presentation was made to the Management Committee, which is the
apex decision making body (having CMD, Directors, Executive Director and
Unit / Division Head as Members. Discussions were very lively, analytical and
probing. One senior member of the committee wanted to introduce 360 degree
feedback system. It was clarified that ultimately 360 degree feedback would be
introduced but after running the system for 1-2 years. In the meantime, planned
efforts would be made to enhance the readiness of the users. The system was
issued by Director (Personnel) for implementation giving an implementation
plan.
6.0 HIGHLIGHT OF THE NEW PERFORMANCE MANAGEMENT
SYSTEM
On the basis of extensive work of developing Performance Management
System in the above-mentioned Company, the following seven components have
been found to be essential in any Performance Management System.
a) Performance Planning
b) Performance Appraisal
c) Performance Feedback and Counseling
d) Performance Enabling
e) Rewards
f) Performance Improvement
g) Potential Appraisal

Highlights of each of the systems have been given below :

6.1 Performance Planning
Performance plans will be made by every executive at the beginning of the
year identifying the activities to be performed during the year and the
competencies required for accomplishing these activities. The activities to be
performed will be identified primarily on the basis of the “Performance budget”
of the unit / division but other activities to be accomplished during the year will
also be included. Performance plan will form the basis of appraisal and shall be
prepared jointly by the Appraiser and Appraisee.
6.2 Performance Appraisal
The Appraisee and Appraiser will do appraisals twice a year - once in October
and again in April both. The financial year starts on 1st April and ends on 30th
March. Appraisal will be done on a 100 point scale, a maximum of 70 points
will be available for Appraisal of Performance (i.e. activities and tasks
expedited during the year) and 30 points for appraisal of the competencies.
Every time, appraisal will be initiated by the Appraisee, and would be carried
out by the Appraiser subsequently after discussions with Appraisee. The
Appraiser in the presence of the Appraisee will award marks.
6.3 Performance Feedback and Counseling
In order to provide an opportunity to know the areas of performance up to the
desired level, areas of further development and to motivate the Appraisee for
improvement, Feedback and Counseling will be carried out along with every
appraisal. Training and development needs for the year will be identified jointly
by the Appraiser and Appraisee. 29
Organisational
6.4 Performance Enabling Change Agents:
Development and Change Roles and Competencies
The appraiser will take necessary steps to ensure that the Appraisee is able to
carry out the desired activities to the best of his ability. A few guidelines
including using appropriate Leadership style, Feedback and Power of
Expectations have been given in the system.
6.5 Reward and Reinforcement
A reward scheme linked to Performance has also been proposed in two slabs
for those getting Appraisal points of 85 and above and those who obtain
performance appraisal rating of 91 and above. This is initially equivalent to one
increment and two increment for an year Relative weightage of different
factors in promotion decisions has also been indicated.
6.6 Performance Improvement
Planned efforts will be made to identify the gaps in expected and actual
performance, and Appraiser and Appraisee would jointly involve a plan for
improving Performance.
6.7 Potential Appraisal
Potential appraisal will be conducted once a year for lateral as well as vertical
movements of executives. For vertical movement, Potential will be apprised on
two parameters : (i) knowledge and skills (on 10 points) and (ii) critical
attributes (40 points). The Potential appraisal System is supposed to now
provide valuable inputs for the newly developed ‘Career and Succession
Planning and Job Rotation System’, therefore is being modified. (Considering
the importance of Potential Appraisal in the forthcoming system on Career and
Succession Planning, this system was not implemented. It was decided to
introduce Competency mapping and assessment techniques and then bring out a
more effective Potential Appraisal System.
7.0 IMPLEMENTATION EFFORTS
The implementation of this system has been the prime concern at all levels of
the activities and one of the reasons of depending totally on Internal resource
persons was to ensure elimination of gaps , if any, in this direction. Salient
features of the implementation efforts are briefly described below :
7.1 Corporate Level Steering Committee
Much of the work had been done before the formal issue of the system.
A steering committee at Corporate level was set up with GM (Personnel),
Corporate Office as its leader. The author was also a team member but his
main responsibility thereafter was to provide professional guidance and support
to ensure effective implementation. Units were asked to constitute such
committees for monitoring the efforts at Unit level.
7.2 Developing Facilitators
It was proposed to train adequate number of Facilitators who would conduct
training programmes at all Units / Divisions for in depth exposure of users of
the system. Nomination of specified nos. of Facilitators for being trained was
invited by HRDI - 50% from Personnel / HRD and 50% from Line Managers.
Over 80 such facilitators were trained in 4 nos. of 2 day intensive training
programme designed and conducted by the author supported by Shri KK Seth,
DGM(Personnel), Corporate Office and Shri MP Jayakjumar, DGM(HRDC),
BHEL Trichy.

30
7.3 Training of Users
There are around 10,000 users.

The Facilitators did a commendable job by training all users in the Units. The
facilitators would ensure smooth implementation of the system and would now
training the remaining executives. Their motivation is at a very high level and
they have accepted this mammoth task voluntarily in addition to their normal
work.
7.4 Pilot run of System
A real life pilot run of the system was conducted in one of the medium size
units (Jhansi) where the system was really operated for trial. Only a few minor
modifications in format and procedure were made subsequently.
7.5 Implementation Directives, Distribution of the Manual of
Performance Management
The system document was printed and a copy with the formats was sent to all
users along with the Implementation Order. Additional copies of formats in
sufficient nos. were sent to all Units / Divisions.
7.6 Training in Giving and Receiving Feedback
While conducting the Training programme for facilitators, it was strongly felt
that every user will have to undergo an intensive training programme of in
‘Giving and Receiving Feedback’. A few such programmes (2 days duration)
have already been held at a few small divisions by HRDI. There are very few
trainers who can conduct in depth programme in Performance Feedback and
Counseling and over 9,000 users are to be trained by October, 2001. Therefore,
again 100 Trainers, in four batches, were being developed internally by making
them undergo a 4 day intensive training module designed and conducted by
author. A model design of one day programme on ‘Giving and Receiving
Feedback’ has been designed and given to all trainers along with a training kit
comprising Floppy, CDs having three small films, cases and instruments etc.
This kit also has been prepared by the author.

This is going to be a very powerful intervention and these internal resource

persons are going to contribute tremendously on various dimensions.
7.7 Constitution of Performance Planning and Review Committee
PPRCs at all Divisions have been constituted at all units in 2 tiers for smaller /
medium size units and in 3 tiers for major units and guidelines have been
prepared.
8.0 BEHAVIOURAL IMPLICATIONS
Designing and implementing Performance Management Systems has very wide
and intensive Behavioural implications. Some of the issues which the Leader of
the Project (the author) experienced may be enumerated as :
Pains, dilemmas while initiating proposal.
Coping with ambiguity
Risk taking in new proposals.
Creativity, pressure for bringing something new and innovative.
Envy of others
Listening, make others listen
Influencing others, getting influenced by others.
Frustration - of not being able to convince.
31
Organisational
Hostility of Superiors, colleagues, users. Change Agents:
Development and Change Roles and Competencies
Team working - with his own team and other temporary teams.
Asserting - to Superiors and Peers.
Encouragement, appreciation, receiving and giving.
Achieving involvement and co-operation of others.
Conflicts - coping and resolving.
Outburst of feelings

During various interactions with Top / Senior level Executives also a few
critical behavioural issues surfaced. A few are enumerated below:

Fear of getting exposed - lack of work load, tasks, excess manpower etc.
Fear of getting questioned by subordinates regarding assignment of task,
allocation and award of points
Fear of committing help, guidance and resources to subordinates
Fear of loosing autonomy
Pressure for making more comprehensive annual plans
Discomfort due to the requirement of giving Performance feedback and
Counseling
Discomfort due to perceived need of changing management style from
control to facilitation
Fear of transparency, even disclosing the points awarded.
Rigidity - old dog syndrome.
Jealousy, envy with other Top management Personnel
Fear of ambiguity
Locus of Control (external)
Poor motivation for excellence
Self concept (poor) related issues.

All this resulted in resistance to change.

However during discussions in many Top/ Senior level Executives very positive
behavioural characteristics were observed which at times helped in raising the
motivation of CFT members. A few may be enumerated as:
Encouraging creativity and risk taking
Internal locus of control
Willingness to change
Balance between quality of the system and acceptance of users
Consensus building
Use of appropriate Power bases for influencing users
Belief in Human capabilities and convincing others for the same
Setting higher expectation on the CFT leader (the author) and the team
(Pygmalion effect)
Collaborative approach in conflict resolution, some times Power strategy
also, it generally proved to be functional.
Eliciting support of opposing / neutral Top management personnel
Encouraging Confrontation
32 Tremendous confidence in internal resource persons.
Some of the behavioural issues / dimensions characteristic of each system are
also enumerated below :
8.1 Performance Planning

Trust and openness between Appraiser and Appraisee.

Achievement motivation of both
Motivation of Appraisee to set higher goals.
Expectancy of getting help, guidance, socio emotional support.
Assertiveness of both
Trust and openness between group members,
Hope success vs fear of failure
Locus of control.
8.2 Performance Appraisal

Trust and openness

Objectivity
Distinguishing content and Process
Willingness to know others opinions, perceptions to be evaluated.
Clear, supportive communication.
Self-concept - match between self and others perceptions - significance,
competence and lovability.
Coping with fear, anger
Interpersonal needs - Inclusion, Control, Affection (Openness)
Power perception (Self & others) of Appraiser and Appraisee.
Listening.
8.3 Performance Feedback and Counseling

Perceptual process
Perception of Care and Concern
Openness, trust
Power perception (Self and others)
Coping with feelings
Inter-personal needs (Self and others)
Credibility (of source and recipient)
Perceived intentions
Supportive Vs. Defensive communication.
Assertiveness
Empathy
Willingness to improve.
8.4 Performance Enabling

Sense of responsibility (ownership)

Locus of control (internal vs. external)
Manager vs. Leadership, Leadership style effectiveness
Persuasion, influencing
Giving and receiving feedback
33
Organisational
Understanding the maturity level of Subordinate. Change Agents:
Development and Change Roles and Competencies
Use of appropriate leadership styles and Power bases.
Supportive vs Defensive communication.
Result vs. Process emphasis.
Interpersonal relations
Resourcefulness
Helping behaviour (attitude)
Need to own success / failure Self vs Subordinate
8.5 Rewards and Reinforcements

Motivational Style and process

Care, Concern, Sensitivity
Self esteem
Achievement orientation
Recognition
Coping with failures
Affection/ Openness needs
8.6 Performance Improvement

Desire to achieve, error correction

Trust, openness
Cause - effect analysis
Reward, recognition
Motivation style.
8.7 Potential Appraisal

Objectivity, overcoming biases

Confidence in Human capabilities
Understanding competencies
Visualisation, Imaginativeness
Tolerance to ambiguity,

9.0 PROBLEMS BEING FACED IN IMPLEMENTATION

Fear of getting exposed — Subordinates demand more work load from

Superiors hence they feel threatened, as they would get exposed if not able
to provide enough job.
Uncertainty of orders creates problem in planning.
Quantum of Job
What could be the optimum workload - in spite of the ‘Standard workload’
concept, there is confusion.
Aversion to giving ‘time frame’ and ‘Performance Indicators’
Perceived difficulty in identifying ‘tasks’ and estimating the ‘work content’
At senior levels (Sr. DGMs and above), lukewarm response due to
stagnation (low prospect) of promotion to higher levels.
Potential appraisal included in PMS is inadequate hence need of new
Potential Appraisal System.
34
 Initial fears and apprehensions in giving and receiving feedback
(especially negative).
Target population is very large and scattered - difficulty in monitoring
implementation.
In spite of all efforts taken fear of subjectivity.
Lack of support to PMS Coordinators / Facilitators.
Monitoring efforts not up to the mark.
Time pressure (compulsion) for both sides for meeting the requirement.

10.0 BENEFITS PERCEIVED BY USERS

Message that everybody would have to work has gone deeper and deeper.
Ineffective Managers are getting exposed.
Demand of more workload by Superiors.
Role clarity will increase , people will learn goalsetting.
Beginning of a culture of individual level planning, evaluation and monitoring
leading to Performance oriented climate.
Availability of an objective base for rewards.
Very distinct identification of Performance (levels and targets).
Linkage with Top managements goals, perceptions and orientations.
Enhancement Credibility of Appraisers and Appraisal system.
Efforts to understand and enhance competencies.
Creation of openness and trust.
Enhancement of Achievement Orientation.
Opportunity for development.
Identification of appropriate training programmes.

Pressure for understanding

i) Work content estimation
ii) Identification of value addition activities
iii) Competencies of subordinate and
iv) Learning strategies of subordinate development

Training efforts linked to competency

Initiation of competency based HRD efforts
Appreciation of joint responsibility for Performing
Projecting lack of work load or excessive work load at the
beginning of the year, hence proactive efforts
Encouragement of healthy competition
Some linkage between Performance and Rewards
Facilitating reduction of cycle time
Excess / surplus manpower getting exposed
Providing objective data for career/ succession plans etc.

35
Organisational
11.0 FUTURE STEPS Change Agents:
Development and Change Roles and Competencies
After having an years experience and feedback efforts will be made to review
the system where ever essential. The following new initiatives would also be
made for strengthening the system further :
– Performance Plans for the Head of units would be made using the
Balanced score card approach. This would encompass Long-range plans,
MOUs and Revenue budget. Scorecards for other senior executives would
be prepared on the basis of the above and Performance plans will be
prepared accordingly. At least 6 Training programmes will be conducted
followed by a number of workshops at the unit level.
– Identification and development of competencies for each role / position is
very essential for PMS. Planned efforts will be initiated for Competency
mapping and assessment. Training will be made competency based.
– Efforts would also be made to computerize the system to the extent
possible once the system stabilizes.
– Rewards based on Performance would be further strengthened.
– Utmost effort would be made to use the System for developing the
managers , interventions like Coaching and Mentoring would be encouraged.
12.0 CONCLUDING REMARKS
This project, right since the beginning, has been exciting to many persons. This
is a major change effort and large system intervention.

How the Top Managements’ support, learning attitude, clarity, conviction and
confidence in internal resources can help in introducing such major change —
this system is a living example. Although many leading consultants of
international level were considered but ultimately the top management reposed
confidence in internal resources. The inspiration, openness, future orientation
and spirit of confrontation of the Director (Personnel) of BHEL not only
stimulated the thinking process but also provided a big challenge before the
team. The blending of Behavioural Process skills, Quantitative techniques, Work
study and Business Systems processes - proved to be very effective. Right
since beginning an induction process (learning then doing) was used and this is
the best example of using Training interventions for design and implementation
of PMS. The cohesion of the task force members, their openness and mutual
trust and their dedication to bring out something new and effective not only
paid dividends but also provided a memorable experience. The patience and
perseverance are a few other factors responsible for success. It is a true
example of collaboration.

The amount of interactions generated in development of the system is an

example in itself. This system is going to streamline many of the business
processes and contribute very significantly in achieving the organizational goals.
One year of experience of running this system has established a strong need
for Performance Management System. It is now widely recognized as an
effective HR intervention in which the line managers and top management has
to play the pivotal role. These experiences and realizations have resulted in
engaging an International consultancy organization to further enrich the system
and make it e-enabled.

Subsequent to the implementation of the System an evaluation exercise was

conducted and suitable modifications made., The system has been further
modified and implemented with the title” MAP–Moving ahead with
Performance’ and at this stage external Consultants were used. The activities
have been e-enabled for fastness and transparency with the help of. The
activities and ratings have been made fully transparent. Continuous efforts are
36 being made to get the feedback of users and update the system whenever
essential.
 Annexure 1

PERFORMANCE APPRAISAL OBJECTIVES

S.No. Objectives Ideal Existing Diff.% Rank

Score % Score % Diff.

1. Role clarity 80.0 45.5 34.5 8

2. Work Planning/Task Planning 75.5 43.0 32.5 10

3. Gain insight into Strength &

Weakness of self 72.5 40.5 32.0 11
of subordinates. 66.5 33.0 33.5 9

4. Identify developmental needs, 73.5 45.5 28.0 12

of self of subordinates 64.5 38.1 26.5 14

5. Increase Mutuality between 66.5 38.5 28.0 12

self and subordinates.

6. Increase communication. 79.5 38.5 41.0 2

7. Preparation for higher level of job 81.0 41.5 39.5 4

by recognition of qualities needed
for them.

8. Promoting reflection and 76.5 40.0 36.5 5

motivation through self appraisal.

9. Internalize organizational norms, 66.0 30.5 35.5 6

values, culture.

10. Creating a positive, collaborative, 73.5 33.0 40.5 3

and problem solving and
healthy culture.

11. Ensure optimal performance and 76.5 28.5 48.0 1

accountability through rewards
and punishments.

12. Control employees behaviour 66.5 31.0 35.5 6

and output through ratings.
Any others.

37