Luận văn organizational change management in non governmental organization action aid vietnam

1H, TRADITIONAL MANAGEMENT OF ORGANIZATIONAL CHANGE Designing & Desk study Interview & Gathering information ..... ABBREVIATIONS AND ACRONYMS NGOs: Non-Governmental Organizations AA:

LIST OF FIGURES TH net eeeeeee „xi ABBREVIATIONS AND ACRONYMS cssecccrccra.XÍÍ

CHAPTER I: INTRODUCTION

lm, 1.3 METHODOLOGY

1.3.1.Research purpOse co

CHAPTER 2: LITERATURE REVIEW

T1 FUNDAMENTALS OF ORGANIZATIONAL CHANGE

1 What is an organization? fee ` fee a

Il PRIOR RESEARCH ON NGOs wl?

1H, TRADITIONAL MANAGEMENT OF ORGANIZATIONAL CHANGE

Designing & Desk study

Interview & Gathering information

Analysis & Recommendations

I, WItY THEY SHOULD CHANGE

1 Exlermal Environmeni Context, à cà ciecniiiiieorie

2 Internal Forces

IV CHANGE PROCESS IN AAV

Vv RESULT OF CHANGE PROCESS

1 Change approach from service delivery to rights based

3 Subscribes to decentralization and devolution of decision-making authority

4, Clarity and consensus al the HR-OD Department

5 Decentralization of FIR functions

CHAPTER 4: RECOMMENDATIONS

1 STRENGTHENING INTERNAL COMMUNICATION - FOSTER OPEN

2 Training need assessmrant annually ac csecseecenneestnes eevee cece 54

3 Conching and training [or manAger% + 138

4 Ralionalization of activities in line with staff's capaeity 55

Appendix D: List of Inlerviewees cccee se scessee nies unten aessnaneensiie TD

Appendix B: Questionnaire for AAV change assessment

Appendix C: Approneh for Overcoming Resistance to Change

Appendix F: ActionAid Vietnam Organizalion CharL „ 75

xi

LIST OF FIGURES

Figure 1; Thesis methodology

Figure 2: Thesis Cutline Figure 3: Types of chang@s ào snesererresarrsreooee TE Figure 4: |cwin's theory

Figure 5; The way a NGO creates values

Figure 6: Change management process

Figure 7: AAV's Expenditures by theme

Figure 8: AAV’s Project, Support and Fundraising Cnsts over the last 3 years28

xl

ABBREVIATIONS AND ACRONYMS

NGOs: Non-Governmental Organizations

AA: ActionAid

AAV: ActionAid Vietnam

CSP Il: Country Strategy Paper IIT

DA: Development Area

PACCOM: People's Aid Coordinating Committee

VUFO: Vielnain Union of Friendship Organizations

CPRGS: Comprehensive Poverty Reduction and Growth Strategy

TIEPR: Henger Eradication and Poverty Reduction

CD: Country Director

JD: Job Description

HR-OD: Human Resource - Organizational Development

SMT: Senior Manager Team

CSR: Corporate Social Responsibility

CBO: Community-Based Organization

TNA: Training Need Assessment

TA-SL: Snspact Assessment — Share Learning

Today's environment is change mote suddenly and frequently than ever before The

reality of yesterday proves wrong today, and nobody really knows what will be the

truth tomorrow, Change in social, economy, political, etc are all factors that

contribute to a growing climate of uncertainty Keep in pace with these changes, not

only business urganizations bul also non-profit organizations such as ActionAid

Vietnam today are also beset by chenge - change lo survival, change lo adapt, and change to grow

In the book Thriving on Chaos, Tom Peters stresses the importance of change lo the modern organization: "To up the odds of survival, managers at al! levels must

become obsessive aboul change”, He adds, "Change must become the norm, not

"Tome Peters, Thriving on Chaos, New Yosk: Alfred A Knopf 1997

“

cause [or alarm"', Meny managers find themselves unable to cope with an

environment or an organization that has hecome substantially different from the one

in which they received their training and gained their carly experience Other

managers have trouble transferring their skills to a new assignment in a different

industry A growing organization, a new assignment, and changing environment

may all be encountered by today managers To be successful, managers must be

able to adapt to these changes, manage them and move forward

‘Thus, within scope of this thesis, { would like to study the organizational change

management applying into the case of ActionAid Vietnam

Purpose of the thesis will be presented in the nex! section

1.2 PURPOSE

The purpose of this thesis is to aim:

* Firstly, give out a systematical approach and test organizational change

management theory also;

= Secondly, apply this theary into practical case of AAV to find out the best recommendation, which will help AAV managers in all level have a guide on

how to manage change effectively for a success transition period;

« Thirdly, detect some theoretical issue of otganizational change management,’

which can apply in NGOs in specific environment of Vietnam

1.4 METHODOLOGY

Methodology usually prefers to ihe general approaches ta research while method refers to techniques for gathering evidence Therefore methodology is a theory and analysis of how a research does or should proceed Specific method for the case

study will be described and elaborated upon later in the chapter three of the thesis

A graphical overview is presented below as the methodology of this research:

Mend

Figure '.7- Thesi methadaioer

Validity and Reliability

develop suggestive ideas

* Purposes descriptive: objective of this stage is ta develop careful descriptions of

patterns that were suspected in the exploratory research

+ Purposes explanatory: purpese of this stage is tv develop explicit theory that can

be used to explain che empirical generalizations that evolved from the second

The !ast few years had seen an explosion of interest in qualitative methods garteulariy within organizational aspects The use of qualitative methods can counteract the perceived current imbalance between theory testing and theory generation The distinction between qualitative and quantitative techniques is only a

small part of a far wider debate about epistemology and ontology In qualitative research the distinction between data collection and data analysis may not be clear- cut In practice, for example, as a series of interviews progresses, the researcher will

often be creating, testing and modifying analytic categones as an iterative process

such data analysis may be considered an organic whole that begins in the data- gathering stage and does not end until the writing is complete

The characteristics of qualitative research are as follow”:

= Qualitative research is descriptive;

= Qualitative research are concemed with process rather than simply with

autcomes and products;

Qualitative research tend to analysis their data inductively,

= Qualitative research has the natural setting, as the direct source of data and the

researcher is the key instrument,

Qualitative research can reveal how all the parts work together to form a whale;

Tt assumes that reality is holistic, muitidimensional, and ever-changing

1.3.3 Research strategy

Research strategy were used in this thesis is case study

According ta theory, a case study approach should be used when how or why

questions are being pased about a contemporary set of events over which the researcher has little of any control This smudy is based more on research questions

of how character and focuses on contemporary sets of events, therefore I thought

that a case study was the most suitable research strategy for this study

7 Bogdan & Biden 1992

1.3.4 Data collection method

Yin" indicates chat there are six data soure:

om ‘which informatien <en be

gamered for a case study These are interviews documentary sources, archival records, participant observation, physical artifacts and direct observation Of these

six, extensive use is made of interviews, documentary sources such as information

obtained from organizations, direct observations and occasional reference to

archival materials, for the present study Fach of these data sources has their

strengths and weaknesses, Since no singie source of data has a complete advantage

over all the others and given that the data sources are highly complementary and

the recommendation by researchers that a good case study may want to use as many sources as possible The various data sources that were accessed for the present study were combined as complementary or carroboratary information for presenting

each case

In this study data will be collected ‘tom multiple sources: document, archival

records and interviews (dead in Chapter 3)

3 Sample sejection

This sectans purpose is to present the way in which organization, as well as the

individuals within this organization -wiil be selected for this study In this case, a

non-governmental organization will be focus upon The criteria for the selection of the sample organization were:

= That the organization is a non-governmental organization (NGO);

+ That the orgenization has a quite large portfolio and number of staffs in Viemam;

= That the organization has some drastic changes recently

* Yin, RK 11994), Case study research: design and methods (2nd ed) Thousand Oaks CA: Saye

13.6 Data analysis

The way in which the data will be unaiyzed is very important for any research

study For thus study it will involve the analysis of the interviews conducted, as well

as the review of any documentation that being handed over These multipte sources

of evidence are what add to a study’s validity

Specific techniques can be used to analyze the data collected from the interviews

There are two forms of analysis for the data collected in a case study: within-case analysis and cross-case analysis In my study, the within-case analysis will be selected

14 OUTLINE

The thesis is divided into five chapters as shown in below figure In the first chapter

a background to the selected area is presented followed by a stated purposes of

choosing the thesis topic, the outline for overall thesis and the methodolegy using for the research In the second chapter literature to the selected topic will be

reviewed The third chapter contains a within case introduction including case study method, anaiysis and findings of ActionAid Viemam Chapter four will show

recommendations from the sample case Finally, in chapter five the conclusions and

Figuret 2: Thesis QuHine

CHATER 2

LITERATURE REVIEW

This chapter cantains literature based on my desk study, This will include studies on

organization and organizational change :hen studies basically on non-governmental

argenization and finally studies on traditional management of organizational

change In order to describe the whole image of managing organizational change as

possible I have included some theory that can be apply by both profit and non-profit

have a casual attitude toward it because orgamzation is intangible

Guest (1962) has defined an organization as consisting of any large group of

persons engaged in mutually dependent activities for some specific purpose He

states further that an organization is rationally structured in that:

© The organization fas been formed as a legal entity at some identifiable point in

time and space;

* Peaple and physical objects have been deliberately brought together to achieve a

defined goal

= The manner in which the task is to be accomplished is based on calculation and

eason which distinguish it from spontaneous formation or actions:

= The arrangement of people and material objects assume the form generally recognized and agreed upon by the participants

Schein’ (1970) has defined an organization as the rational co-ordination of the activities of a number of people for the achievement of some common explicit

purpose or goal through the division of labor

Nadler (1981) further contends that the model conceives of the organization as comprising four major components:

First is the task of the organization or the wark to be done and its imherent critical

characteristics;

Second are the individuals who perform organizational tasks;

Third are the formal organizational arrangements, including variaus structures,

processes, systems, which are designed to motivate individuals in the performance

of organizational tasks,

The fourth is a set of informal organizational arrangements, which are usually neither planned nor written, but which tend to emerge over time These include

patterns of communications, power, and influence, values and norms, which

characterize how an organization actually functions The relationships among

components can be thought of as each component having a relationship with every

other component Each pair of composing components, seeking to establish a

relative degree of cansistency, tries congruence or fit

Schein” asserts that research about organizations of late has progressively espoused

a view of the organization as an open, complex system in dynamic interaction with

multiple environments Attempting to fulfill goals and perform tasks at many levels

* Schem, E,H & B=anis G.W Personnel und organzauanal change methods, New Yori: John Wiley & Sons Ine

* Schem, EH & Bennis G.W, Personne! and organizational change methods New York: john Wiley & Sons Ine

and i varying degrees of complexity Evolving and developing as the interaction

with « changmg environment forcz new internal adaptations He contends that “us orientation is best expressed by stating 2 series of general propositions rather :1an Attempting a single all encompassing definition of what constitutes an organization

" hà Basic of Organizational Chaage

21 -1.Conceptions ahout organizational change

What ts organizational change?

Changing means departing 19 new destinations And organizanonal change 1s

defined as the process by which organizauons design and transform their structures and cultures to move from their present state to some desired future state to increase their effectiveness It means empowering organizations and individuals for taking

over responsibility for their own future

A change begins with the organization existing in a current state (A) The future state (B) is how the organization is planned or envisioned it is the expected state that would ideally exist after the change The period vetween A and B can oc

thought of as the transition state C

Nadler (1981) concedes that while not every organizational change can be expected

to meet these criteria, such standards provide a larget for planning change as well as assessing change effects

Nadler further recommends that owing to the balancing effect, whereby an

organization's components thrive toward congruence, there is the need for the

researcher to take a holistic or systemic perspective when thinking about major

organizational change

Organizations are constantly changing, their boundaries are difficult to define and

Vary over time some are expanding ther missions and taking on new objectives,

and others are cutting off functions and focusing on thew central objectives A shift

in their missions is what !eads to changes in a:most ait aspects of organizations Tae

concept of organizational change when used in business and management Jiteramure

usually refers to planned, organization-wide change Still, the concept can seem so broad and general in nature that it's hard to keep perspective

There is no universal formula for producing effective organizational change; once a method of change has been sclected, there is no widely accepted procedure for

implementing it, And because of the complexity of the rapidly changing

environment, it is nor feasible to prescribe a standard strategy for change to better

enable the organization ta fit into its environment A strategy thal is beneficial for

ane organization may be inappropriale for another, even one with similar characteristics Any strategy for change must be adapted to the particular set of

conditions in place at the time

Developmental change may be either planned or emergent, it is first order, or

incremental [t is change that enhances or corrects existing aspects af an

organization, often focusing on the improvement of a skill or a process

Transitional change seeks to achieve a known desired state that is different from the

existing one It is episodic, planned and second order or radical The model of

transitional change is the basic of much of the organizational change literature It

has its foundations in the werk of Lewin who conceptualized change as a three-

stage process involvin

= unfreezing the existing organizational equilibrium; deals with breaking down the

forces supporting or maintaining the old state;

* moving to a new position; involves offering a clear and attractive option

~ representing new state;

© refreezing in a new equilibrium position

Transformational change is radical or second order in nature It required a shift in

assumptions made by the organization and its members Transformation can result

in an organization that :liffers significantly in term of stricture, processes, cuiture

and strategy {¢ may, thererore :csuiL :n the creation of an organization that operates

in development mode- one that continuously learns, adapts and improves

Figure 2.1; Types of citanges

Developmental change

Time Transitional change

2.1.3 The Systems Model of Change

A system is an organized assembly of components related in such a way that the behavior of any individual component will influence the overall status of the

system’ The systems model of change describes an organization as five interacting

variables: Environment; Systern of strategies, goals, objectives, plans, approaches,

and policies; Culture, Behavior and processes; and Structure This provides a framework that can be used to analyze each variable and understand its impact on

the others, which alerts us ta the idea that if one these things is changed it has an

impact elsewhere Successfully understanding the impact of these interactions

necessitates a very effective communication process between parts of the organization and between managers and staffs, Otherwise a very subjective

evaluation based on the opinions of a very limited group consisting mostly of

management could he used

= Environment: The task environment, which includes ail the external

organizations and conditions that are directly related to an organizanon's main

operations and its technologies They inciude all stakeholders, resources, and the

state of knowledge concerning the organization's technologies The general

environment includes institutions and conditions that may have infrequent or

long-term impacts on the organization and its task environment, including the economy the legal system, the state of scientific and technical knowledge, social

institutions, the political system, and the national culture within which the

organization operates

= System of strategies, goals, objectives, plans, approaches, and policies Strategies

are overall routes to goals, including ways of dealing with the environment, goals

are desired end states, whereas objectives are specific targets and indicators of

~ goal attainment; and plans specify courses of action toward some end Purposes may be explicit or implicit in the decision makers’ actions They are the outcomes

* MeCalman and Pato 1992.

af conflict and tesodauon Amoay -owerful parties -vithin and outside the

* Behavior and processes: This includes the prevailing pattems of behavior

interactions, und relationships between groups and individuals- inciuding

cooperation, conflict, ccordination, communication, conoiling and rewarding behavior, influence and power relations, supervision, leadership, decision making, problem solving, planning, goal setting, information gathering, seli- criticism, evaluation, and group learning

= Structure: This includes enduring relations between individuals, groups, and

lager units-including role assignments (job descriptions: autharity,

responsibility, privileges attached to positions); grouping of positions in

divisions, departments and other units: standard operaung procedures:

estublished mechanisms for handling key processes such as coordination (ag committees, weekly meetings}; human resources mechanisms (career ‘ines,

reward, evaluation procedures), actual patterns (e.g informal relations cliques

coalitions, power distribution) that may differ trom officially mandated ones

Organizational Change As An Adaptive Coping Response

2.2.1 Forces for and Resistance to Organizational Change

Change is an inevitable part of everyday life in all organizations Organizations come under pressure to change constantly ta survive rather than when they want to

change, because of a combination of factors emanating from within and without the

organizations Environmental turbidity requires organizational reactive response to

enable organ:zauonat sustenance [nlemal forces may artse from a need tq adapr 10

13

enhance productivity and expand to meet growing market needs Theoretically, there can be a wide variety of pressures that trigger organizational change

Kurt Lewin’ proposed a "force field" analysis model to understand organizational

change Force field analysis proposes that an organization is typicaily in a state of

equilibrium There are two forces thet maintain organizational stability: driving

forces and restraining forces The driving forces are those elements of the

organization that support a desired organizational change Keeping the organization

in equilibrium are the restraining forces If the two forces are equal, the organization will remain static Change occurs when one of these two forces becomes stronger Once the change has occurred, the organization reverts to a new state of equilibrium, which reflects the desired change

Figure 2.2: Lewin's theory”

Table | lists the most important forces for and impediments to change that confront

an organization and its managers

“Lewin Complenity: Life at the Edge of Chaos Macmillan

* Garcth R Jones, Organizational Theavy, Design and Change, 3 Edition

Table 2.3; Forces for and Resistance to Change’?

Forcestor thang Rextstances fa Change '200IpStRNG Foross, Seganieational teva!

Suucura Economic Foeces + Cuftura

+ Buaaegy PotcalFoross

Global Forces = Ditterences in Subunit Orientation:

Demographic Fores | = Power and Đadiet :

Social Foroes ‘Group Laval :

„em Ethical Fomses ~Coneskenoss

| ®Ca@mxeBiass

|

An organization is subject to many pressures for change form a variety of sources

far too many to discuss here Moreover, because of complexity of events and the

rapidity of change are increasing, predicting what type of pressure for change will

be most meaningful in the next decade is difficult Discussing the broad categories

of pressures that probably will have major effects on organizations is possible, however — and important

2.2.2 Importance of Change

in today's fast-paced, fast-changing, and increasingly cormpeutive world, the

adaptation of organizations has become the focus of considerable attention The study of how organizations change and develop over time examines what udaptauon has actuaily taken place A aumber of studies have indicated some organizational development takes place independently of strategic moves When such

organizations falter or fail, the consequences can be far-reaching, even devastation

"They further contend" - Orgamizations through the ages have been charactenzed by

"© Gareth R Jones, Organizational Theory, Design and Change, 4" Edition

a tension between the forces of stability and the need for change Much of the strength and utility of organizations comes from their inertia, helping to make them

reliable in what they do and accountable for what they do Indeed, some argue that

their tendency to inertia can provide organizations with some short-term competitive advantage

From organization theory and much research, we know that organizations do not adapt readily or easily; many organizalions that change do so in ways that are

neither successful nor effective Organizations must continually balance the forces

of stability and the push for change Nevertheless, organization theory and

managerial wisdom suggest that, to survive, organizations must be compatible with

their environments, which include the entire external social, economic, and political

conditions that influence their actions

In the current environment of rapid technological and societal change, organizations must adapt quickly enough to maintain their legitimacy and the resources they need

to stay viable Besides, internal environment of organization, which somehow is

effected by extemal environment, and somehow changes by itself, also be a

consideration for managers It may be become an important factor that effect

critically to organization's effectiveness

Organizations today must function and attempt to flourish under conditions that are

complex, rapidly changing, and in some respects unprecedented The stakes are

high and the risks are great Of the 500 largest firms on the first such list published

by Fornme magazine in 1956, only 29 remains Voluntary mergers and joint

ventures, hostile takeovers and poisor-pill resistance to them, conglomerations and

divestitures have created an organizational environment of proionged turbulence

These changes are manifestations of a deeper and more general transformation: the Shift in the developed world from an industrial to an information economy

As recently as 1960, about half the workers in industrialized countries were

involved in making things By the year 2000 no developed country is likely to have

more than one-eighth of its workforce performing such tasks Only the earlier

Industnai Revolution and the more gradual mechanization af agriculture were

vomparable in their magnitude of change and rammtfying societal etfecrs The driving force of these changes is technological and primarily involves infarmauon technology This technology, which has been created within the lifenme of rodays

adults and which today’s children take for granted, has developed at a remarkable

pace,

In summary, for planned changes or unplanned changes, they all are the ways that

can help organizations can avercome inertia slate New state may be good or not it

depends on organization’ adaptation ability and manager's talent That's the reasons

why we need to study how lo managing organizational change cffectively,

23 PRIOR RESEARCH ON NGOs

A non-governmental organization is organization that is not parts of any

government The origin of the term NGO is clearly an international one NGOs

were listed as early as the 1940s in the Yearbook of International Organizations of

the Union of Intemational Associations The term was also referred to in Article 7]

of the Charter of the United Nations

Some time ago ihe term lost its purely intemational context and has since been used

to caver national, regional and local organizations as well NGOs exist for a variety

of different purposes, usually to further the political and/or social goals of their

members Yome example goals include improving the state of the natural

environment, cncauraging the observance of human rights and concems such as the identry and ferninism, etc NGOs also vary in their methods Some act primarily as

lobbyists, while others primarily conduct programs and activities Over the past

several decades, NGOs huve hecome major players in the field of international

development Since che mid-1970s, the NGO sector in both developed and

developing countries has experienced exponential growth

From 1970 to {98S total development aid disbursed by imernational NGOs

increased ten-fold {2 1992 international NGOs channeled over $7,6 billion of aid to

|

developing countries It is now estimated that over 15 percent of totai overseas

deveiopment aid is channeled through NGOs NGOs are typically value-based organizations that depend in whole or in part, on charitable donations (from the

public us well as the governement) and voluntary service There are now tens or

thousands of inlemational non-governmental organizations {NGQs) in the world,

operating in most countries These organizations are not directly affiliated with any national government but often have significant impacts on the social, economic and

political activity of the country or region involved

In the presentation and analysis of the role of NGOs in development co-operation, they distinguish ~ based on the work of David Korten — between four generations of NGO organizations

= Ist Generation: The primary objecuve of this generation was to help people in

need of urgent relief — food, medical support, housing, etc This type of work often started in Europe after the wars, and organizations like Oxfam, CARE,

Save the Children and even MS originated in this context Funding was obtained primarily through fundraising in the market

Ind Generation: Strategies m this generanon focus more on closer co-operation

with the target groups Providing the "fish" itself is no longer the only objective, but also provision of “fishing rads" and training in how ta use them

Organizations focus very many on focal communities, and they have an intimate

knowledge of these communities

3rd Generation; This phase develops from the critique of the second-generation interventions being tao small and narrow in scope Interventions at the micro

level have to be combined with interventions at the macro tevel Not only should

immediate needs be addressed, but the structural injustices should be attacked as

well

« 4th Generation: At this point, strategies are implemented as part of a broader national, cven global, movement However this generation is not developed in the same detail as the other generatians

18

Intemational NGOs have heen providing support :o Viemam for many decades In she early 1970s, some sixty-three NGOs worked in Viemam During the mid to late

1980s, Vietnam began ta broaden its intematiaral relations

At che end of 1986, the Communist Party of Viemam initiated a policy of Doi Moi

or Renovation This change coincided with the collapse of the former socialist

vountries of the Soviet Union and Eastem Europe: as a result, these countries

substantially reduced their support for Viemam’s development This change created

new possibilities for NGOs, which wishing to support Viemam and many renewed efforts io have representatives in the country

Throughout the 1990s, the number of NGOs working with Viemam steadily

increased In 2000, close to 500 NGOs have relations with Viemam, 350 oŸ which

are currently active with parmers and programmers Statistics figures for financial

assistance at 16 million USD rising more than 300% to over 83 miilion USD in

2000" The Vietnam governmem sees NGOs as part of the donor community

although this is beginning to change NGO financial contributions have been small ver their influence on Jonor and government views of poverty programming important NGOs are spread all over Vietnam but mostly focused on the remote area leg, northem mountain region, coastal areas), and work with the poar and

marginalized people

The below chart will present the way which a non-governmental organization

creates values in generally:

1 PACCOM, 1999

Figure 24° The wav t NGO creates values

Oreanization’s Inputs Ongantzation’s Conversion

Ì txenumsen canstorms mputs and

* ValuE for stakeholders

Supply ourputs allow organization

+o obtam mew suppher of inputs

* Donars

«= Government Offices

«international organizations

"Other NGOs

As globalization and international trade impact societies, non-governmental

organizations have become increasingly influential in world affairs There are 3

multitude of affairs that may be challenges and threats also To name a few as wlobalization of economy and information; increasing ineffectiveness of

governmental institutions - and of many private coo; the growing aumber of peaule

living in poverty, the growing disparity between work and private life But the biggest threat is the indifference of people

These threats call for a new spirit of development, in which individuals, che Tnemibers of organizations, experience self-determination and personal growth - and participate in creating a world around them :o which they want to belong

24 TRADITIONAL MANAGEMENT OF ORGANIZATIONAL ANGE

mpiemenung the change and from the recipients of change The view of change

management varies dramatically if you are the executive demanding the change

versus the from line staff who may be unsure why a change is even needed

Tn many cases at the onset of a new change, neither the executive ner the front-tine

staff is knowledgeable about managing change The executives want the change to

happen now; the staffs are simply deing their job ft is the project managers consultants that first lear about the necessity for change management They are the first to realize the two dimensions of change management: the top-down managers’ perspective and the bottom- up staffs' perspective

The managers’ perspective on change is results oriented They are very aware of the

husiness issues facing the organization and are accountable for the financial performance of the company When a change is needed, they require action quickly

In many cases, executives or senior managers must weigh the rerum on investment

of this change as compared to other strategic inidatives in the organization Their

primary concerns are:

+ When can the change be completed?

* How much improvement wiil be realized?

* How will his change impact on operation of organization?

+ What is the required investment for change?

How will this change impact to people who benefit from the organrzatton’s

operation?

© Ete

Now consider the perspective of front-line employees They generally do not have a

day-to-day view af the organizational issues Day-to-day operations are their focus Serving people, processing orders, getting the job done ~ these are the primary areas

of interest: these tasks combined with the number of personal issues that they all

face every day

When changes are made, many staffs lack the broader context or knowledge base of why the change is being made They also do not share the same accountabilities as managers They question therefore how the change will impact them personally

To vompilete the picture, consider the consultant or project team who is responsible

to design und implement the change They have their own agenda acting on behalf

of the business leaders who charted the change

The result is a potentially dangerous mix of different priorities, different nowiedge sets and different driving forces If the change is not managed properly, these different values and driving forces clash resulting in unfortunate outcomes for the

organization

© Employees resist the change;

* Valued personnel leave the organization;

= Critical projects are delayed:

* Beneficiary fram organization (Community) feel the impact indirectly through upset statfs:

Productivity declines;

= Etc

Many organizations learned the hard way through failed projects They learned that

change management is aot something addressed after the fact Change management must start at the beginning of the project and be integrated into all facets Both perspectives of change management must be addressed: the managers und the

staffs

So what is organizational change management?

Orgamzational change management is the management of change from the perspective of a manager or project team It is the perspective of “leadership” from the “top” ooking down into the organtation Change management refers 1a

following:

= Systematic and planned management of internal controiled changes within an

otgamzation: or

= Response to changes that lie outside the control of the organization

The focus is around broad change management practices and skills that will help the

organization understand, accept and support the needed organizational change The

primary focus is around change management strategies, communication plans and

taining programs The involved parties include project team members human resources and key business leaders that sponsor the change

The goal of change management process is to implement these changes quickly to:

minimize the negative impact on producavir

avoid unnecessary tumover or loss of valued employees;

eliminate any adverse impact on your community,

achieve the desired outcomes as soon as possible

So the change management process is the sequence of steps or activities that a

change management team or leader would follow to apply to change, including:

Identrfy: The first step in any change management process is the identification of

the change There are numerous inputs for this and the mechanics of the process

may well vary based on the input and nature of the change The most difficult part of the identification process is ensuring that all changes which are made to

the organizational environment, are captured

Assess: The assessment process is where the nature of the change is evaluated

and the risk to the environment and the readiness of organization is considered Nat all changes are created equally Therefore, risk assessment is key to a successful process, which does not impose unnecessary bureaucracy on the

organization

Evaluation: The evaluation phase is the part of the process where all documentation of work performed is reviewed and evaluated This may include testing outcomes, forces behind the change, support plans for the change, raining completed to ensure that change is successful and operations changes which have

been made and are ready to implement to ensure that the change is successful

+

" Plan & Schedule: This is often the most difficult part of the process for large

complex distributed environment The entire process can be rendered futile if

several high inrpact organizational wide changes are implemented at exactly the

same time ‘The risk taken on by the evaluation phase when the changes were

looked at separately

Execute: using the developed Plan and Schedule, execute the change

Repurt Analyze & Improve: The number of organizations who are unable to

report fo changes 1s truly staggering Without any way of cracking results from

the change process the process is irrelevant There is no way to evaiuate

effectiveness, take corrective action, lea or improve Each change that is

implemented creates an opportunity to leam how to more reliably operate the

environment Each failed change, which is not analyzed, represents a future risk

ta the organization

Tt 1s important to note what change management is and what change management is nat, There are same collected opinions to above issue:

* Change management is not a stani-alone process for designing an organization

solution, Change management is the processes, tools and techniques for

managing the people-side of change

= Change managermmt is not a process improvement method; Change management

is a method for reducing and managing resistance to change when implementing

process technology or organizational change

= Change management is not a stand-alone technique far improving organizational

performance; Change management is a necessary component for any

organizational performance improvement process to succeed

Established in 1972, ActionAid (AA) is one of the UK's largest development

charities ActionAid warks m Africa, Asia, Latin America and Caribbean, listening

to, leaming from and working in partnership with over nine million of the world

poorest people Its vision is a world without poverty in which people can exercise

their right to a life of dignity ActionAid Vietnam operate with its mission is to

work with poor and marginalized people to eradicate poverty by avercoming the

Injustice and inequity that cause it, As an organization, AA live and work by the

follawing values: mutual respect, justice, honesty and transparency, solidarity with

poor and marginalized people, courage of conviction, humility

ActionAid has been working in Vietnam since 1989, In Viemam ActionAid has been one of the largest NGOs with a large portfolio of projects across the provinces

of the country At present ActionAid Vietnam (AAV) is invalved in designing,

implementing (in partnership with local authorities), facilitating and funding anti-

poverty programmes List of AAV themes in detail contains:

* Gender equity

» HIV/AIDS

* Govemance

and intensified approach to gender equity and rights and justice for various

vulnerable groups to attack poverty in rural areas and urban areas right approach is

transformed from service delivery with various of initiative to ethic minorities, and

linking people in communteation campargns for the rights of people ete

In general, the AAV organizational structure is consist of iwo parts: the support function and the programme (See Appendix E for detaised)

= The programme has seven DAs: they are DAI~- Son La, DA2-Ha Tinh, DA3- Lai Chau and DA4-Ninh Thuan, DAS-Hochiminh city, DAG- Travinh, DA7- Ba

Guang provinces

= The support function includes Finance and Administrative department, HR-OD

department, Gender function, Funding and Fundraising department, and Policy, Advocacy and Communication (PRAD) department

Total expenditures of AAV in year 2003 were £1,208,000, increased 37% compared

to the year 2001 The cost structure also changed in a positive trend While support

costs deceased from 24% in year 2001 to 16% in year 2003, project costs increase from 73% to 79% in 2001 and 2003 respectively The application of Child Sponsorship led to the increment of fundraising casts by 2% Hawever, this increment is reasonable as it makes our funding base more stable

Regarding program spending, although the organization have been working on

various issues in the year 2003, the investment scemed to be focus on the 5 major

themes: Iood security (37%) foliowed by governance (22%), education (14%),

HIV/AIDS (8°) and gender equity (7%) The following charts show the proportion 9í sach chemy over -omi rogram vosts and the wends of costs structure of

ActionAid *Uettam over the last three years

Figure 3./: 4A¥'s Expenditures by theme”

DFondseevay

BEaeauan i HIVAIDS

om ip Heath care

WGméer (DRige of Chldeen waCavemance are

more DAs in 2004 'Vith a short oertoc at “me 2reat efforts have been made to

ier fostered arents, More over zcgutar -avinzs “and has ‘ncrease “tom ‘ess -0%

‘0 90% uf required level this year, However, AcuonAid Viemam is also snarpening its fund raising etfort through varmership anu official funding t cope with us funding gaps

Figure 3.3: AAV's Income source 2003

INCOME SOURCE 2003 - 1

ngarses New Siạp

3.2 CASE STUDY METHOD

This part now merges together the theoretical uncerstandings oÏ thematic concern methodology and pracucal case, The diagram helow outlines the steps for the case conducted:

VAY Annual Report 2003

¬»

Unity and develapment of research objectives and expect outcomes are important

beginning step of every start-up stage Content of this stage will focus on answering

questions: Why will the research conduct? What's the purpose and what's the expect

outcomes? These questions will help to:

* Clarify and state officially of the AAV research's objectives and purpose;

* Develop direction for selecting appropriate approach;

* Present the objective and benefit of research to the organization, unify objectives

of research and organization and mobilize (or conperation in collecting document

and information process; and

Establish necessary contacts te who will be involved in the AAV research.

3

3.2.2 Designing & Desk study

Alter unifying objectives and upproach method, all related documents will de collected consolidated and retined carefully according to veseurch issues This :

significant formation source to shape the mitial image of the AAV ac:vittes Base

on that, structure and content of interview will be designed and improved practically

Interviewing is the mainstay of nany different kinds of qualitative method The present case study cmplaying qualitative research methodology is no exception An interview schedule is prepared to act as guide that keeps the interview within 1

certam expected framework, without necessarily depriving the interview situation of

interviewer driven information-gathering process

Data is collected through semi-structured interviews at the orgamizauons invalved in the study Interviews lasted from one to two hours Aa interview guide was used to

avoid losing focus and to ensure that all relevant questions were askeu, Questions

were both closed and open-ended Indeed, while some indicators requirect a brief

und precise answer, it is also desirable to let mnformation emerge from the field

Respondents were thus given the opportunity ta express their thoughts on the lopic

of interest as freely as possible

3.2.3, Interview & Gathering information

Before interview process, a pre-test interview will be conducted with participation

of the organization representative it's expected to happen a discussion and assessment of interview content for an appropriate result which will be the last

content [or the interview guideline

The main content of interview wiil be divided into 2 parts: one for organizational structure, management and operation assessment, and one for organizational change

Assessment

The assessment of organizational structure management and operation +vtil vase on

reviewing below extents (see Appendix 4 for detail)

= Clarity and consensus exist on the organization's vision and goals, which are

operationalized

= Are decisions made in a participatory way?

= How delegation of authority occurs?

= Do Personal Policies and procedures exist? Practiced and are gender sensitive?

« Ts the organization aperated under a cade of ethics?

« Do recording and filing system exist?

* Are communications open and spontaneous?

« Do a programme supportive admunistration (Procurement, inventory and Admin.)

exists

‘The interview guideline for organizational change assessment base on below

intentions (see Appendix B for detail):

= What's thé expect organization in the future?

« What're the internal organizational changes recently? And whar's the effect?

* What're the extemal organizational changes recently? How do they effect to the

organization?

+ Are these changes positive or negative?

= Whar’s your opinion? Do they need or nor?

From she approved interview frame, in-depth interviews with individual ar focus

group will be conducted Toul of interviewees are 20 in all 30 members of AAV The interviewees will he divided into two groups: manager and staff group For

manager group, interview method will be conducted individually And for staff

group, the method will take place dy focus group (sea Appendix D far detail) With

dividing interview groups hope that collected information will be objective and

muttilateral; and base on these, the different awareness and opinion will be

received

After interview completion, information will be sum up and consolidated with

previous -ol:ected infermation ‘a inter findings for research To have uccurate and

3

reliably information above findings wili be confirmed by the organization

representative

3.2.4 Analysis & Recommendations

Findings from the documents and interview are main material far analysis following

organizational change theories that are presented in the chapter 3

Perspectives of analysis contains:

Result of analysis process will help to evaluate which is the main factors impact

powerful to organization, both positive and negative way, and how it impact to

organization activities This is Assessment and Evaluation step in the change

management process, which is presented in the previous chapter [t's the foundation

for proposal adoption plan and management strategy in recommendation and

conclusion stage

3.3 WHY THEY SHOULD CHANGE

3.3.1 External Environment Context

The Vietnamese Government's policy of pursuing “Market Socialism’ is all set to continue throughout its Socio-Economic Development Strategy for 2001-2010 The policy intends to promote the positive aspects of the market mechanism while limiting and overcoming its negative impacts Viemam’s economy doubled in size

during the 1990s and the poverty cate has fallen to 29%, from 35% in 2000 and 70%

in the 1980s Its innpressive performance is reflected by 7.4% growth in 2003

despite the consequences of the Traq war and the outbreak of Severe Acute

Respiratory Syndrome {SARS)

Vietnam has vet targets to boost tt econome growth by at jeast 7.2% over the next nwo years Despite these impressive gains, poverty remains widespread and deep Almost 20 million peopie still live in poverty and the gap octwees rich and poor is

ever mcreasing Per capita income is very low at $410, 60% of -ural workers are

underemployed while each year over 1 million people join the workforce Further,

many of the gains of the last decade remain fragile with millions still vulnerable ta falling back to poverty Although poverty remains largely a rural phenomenon urban poverty is widespread and acute The Government empiasises that economic

growth should support poor people and notes that this will require heavier

investment in rural and lagging regions and a more gradual implementation of

reform than is otten recommended by donars,

The stale relains 3 strong role and (he private sector is rapidly gaining strength but

the deveiopment of local NGOs has been hindered by the lack of un NGO law This could undermine ihe government's attempts to implement good yovemance

(through public administrative reform, ‘egal reform and the control of corruption}

and deal with the increasing instances of embezzlement of state funds For example,

sore 5750.000 (out of SL5 million) of state funds allocated to 700 projects under the National Programme for Poverty Reduction (Programme 135) was reportedly embezzled The Government has stared implementing its Comprehensive Poverty

Reduction and Growth Strategy to translate the 10-Year Socio-economic

Development Strategy into concrete measures for action [t provides a set of targets

tơ he met through the local application of the Millennium Development Goals

However ts implementation presents several challenyes Poor coordination

Between mmmaimes ca realize the goals, ‘ack of proper understanding uf

Comprehensive Poverty Reduction and Growth Strategy by stakenoiders and their particioauon ut implementation and monitoring, lack of concrete action plans wah

riming and costing of sctivitics, ind a Jack of prioritization are some of the

challenges that might impede the effective implementahon af Comprehensive Poverty Reduction and Growth Strategy

One can anticipate substantial change in the pace of the economic liberalization

process, trade policies and practices, tariff regimes and agncuitural technologies, as these will be affected by agreemems with ASEAN, AFTA, US BTA and WTO

(which Viemam hopes to join in 2005) There has been a positive change for the

farmers in terms of rice exports (which grew by 16% to 4 million tanes this year)

However, the imposition of an anti-dumping tanif on Vietnamese catfish exports by

the Luate State government has devastated many poor fish farmers Similar moves

to prevent shrimp exports to the Unite State will also affect the livelihoods of thousands of families who depend on aquaculture :

Ethnic minority people, women, unregistered migrants to urban areas, trafficked

persons, sex workers, people living with HIV/AIDS and factory workers remain especially vulnerable as their rights and entitlements are not entirely fulfilled A

Vietnamese delegation attended the World Social Forum in early 2004 and raised

issues such as the victims of war (particularly those affected by Agent Orange), which further opened up a space to talk about rights

Those are some extents of external environment, which has more or less impact the

opearation, and performance of AAV Below points summary main issues of the extemal environment that AAV have face up:

= Growth continues but disparities develop;

* Reducing rural poverty remains the biggest chailenge;

« Ethnic minority groups are still particularly vulnerable:

« Incidence of urban poverty widens;

= Disparities still exist berween men and women;

© Impact of agreements with ASEAN, AFTA, US BTA and WTO

To work well in existing project and improve AAV's identify in community,

government and donors, AAV can't bypass those impact trom external environment

hus they must be changed musr be adapt 19 new environment and situation.