Organisations have been in existence for a number of years and they are ever evolving due to the constant changes taking place in the business environment. A lot of research culminating in a number of theories has been undertaken looking at how organisations function. Empirical evidence suggests that change is directly linked to an organisation's performance, growth and success (Rees, 1985). In this analysis, Sri Lanka Telecom (SLT), a public enterprise in Sri Lanka, will be used as a case study to apply the relevant concepts, models and theories of organisational change.
This paper begins with a brief description of Sri Lanka Telecom (SLT) aiming at preparing readers for my further discussion. Further, the paper examines the need for organizational change in SLT. Two models or approaches of organisational change are then chosen which form the basis for the company's organisational change. This is followed by an in-depth discussion on whether organisational change can be managed, and if so, how this can be effectively done using examples from SLT.
2. Background of Sri Lanka Telecom (SLT):
Previously a corporation of government, Sri Lanka Telecom (SLT), was converted into a public company in 1996. The government of Sri Lanka transferred the entirety of the "business, assets and liabilities of the corporation" to SLT with nearly "8,000 employees including executives, middle level technical, clerical and allied, workmen and contract workers" (Kelegama, 1993). It was clear that the company was considerably overstaffed. In view of this position, the new management adopted a "no recruitment" policy, in order to achieve better productivity and efficiency. Yet, there has been a "marginal increase" in the number of employees, due to "unavoidable recruitment of technical personnel [necessitated] by technological expansion" (Thornhill, Lewis, & Saunders, 2000).
In 1997, the government of Sri Lanka as an exclusive shareholder of SLT divested 35% of its holdings in the issued share capital to NTT- Nippon Communications & Corporation of Japan for an amount of USD 225millions. In 1998, the government gifted a 3.5% of its shares to the employees of SLT. Yet again the SLT went ahead with its Initial Public Offering (IPO) in 2002, where the government divested a 12% of shares in the company. Consequent to this IPO, the government now owns 49.5% of SLT, NTT Communications Corporation owns 35.3% and the public owns the balance 15.3%.
3. Sri Lanka Telecom's Organizational Change:
Contemporary organizations face a dramatically changing world. Markets are rapidly "globalizing and technological advances allow distance to be easily transcended" (Anon., 2004). Given this environment, organizations are forced to adapt to new pressures. Shortly, this force is called as Organizational change. It is also acknowledged that organizational...