Term Paper

On

Change & Knowledge Management in KSIC

Subject

Change & Knowledge Management

Submitted to: Submitted By:

Prof. Baisaki Mitra Rajneesh Thapa

MBA Dept., PESIT Section “C”

1PT11MBA64

About KSIC

The silk weaving factory in Mysore, presently owned by KSIC, was established in

the year 1912 by the Maharaja of Mysore province. Initially the silk fabrics were

manufactured and supplied to meet the requirements of the royal family and ornamental

fabrics to their armed forces.

The unit was started with 10 looms and gradually increased to 44 looms over a period.

The looms and preparatory machines were imported from Switzerland and was the first of its

kind in India. After India gained Independence the Mysore state Sericulture Dept. took

control of the silk weaving factory.

KSIC Ltd was established on 18th April 1980 with assistance by Government and

World Bank scheme under integrated Karnataka sericulture project. KSIC is the only

organization in the Country commanding the entire gamut of silk production right from the

reeling of cocoons to the weaving of pure silk fabrics, under one roof.

In 1980 the silk weaving factory was handed over to Karnataka Silk Industries

Corporation Ltd., a Govt. of Karnataka enterprise and is popularly known as KSIC. The take

over was enthused by effecting modernization and expansion assisted by the World Bank to

the tune of Rs. 27.30 crores integrated under Karnataka sericulture project.

The Karnataka Silk Industries Corporation (KSIC) has been awarded the Certificate

of Geographical Indication for Mysore Silk, elevating it to a brand name for its exclusive use.

It’s now official. Mysore Silk belongs to Mysore district.

The Karnataka Silk Industries Corporation (KSIC) has been awarded the Certificate of

Geographical Indication for Mysore Silk, elevating it to a brand name for its exclusive use.

Henceforth, all Mysore Silk sarees sold by the KSIC will come with the logo IPI, meaning

Intellectual Property India.

KSIC is also the first state government enterprise to get a logo from the Geographical

Indication Registry (GIR), a Central government body based in Chennai. GIR was formed to

protect the Intellectual Property Rights for Indian goods under the Geographical Indication of

Goods (Registration and Protection) Act, 1999.

The GIR certificate is a sign used on goods that have a special geographical origin and

possess qualities or reputation of their place of origin.

The KSIC also will have the patent rights of Mysore Silk brand and no other

organization can use the same name for other silk products. The other products which have

been awarded GIR certificates include Kanjeevaram Sarees, Basmati Rice, Swiss Watches

and Dutch Tulips.

KSIC produces 6,000 sarees every year and, armed with the GIR certificate, KSIC

now plans to have a distributor in every state.

KSIC is the only organization in the country commending the entire gamut of silk

production right from reeling of cocoons to the weaving of pure silk fabric of various shades

and designs, all under one roof. KSIC uses only high quality pure natural silk and 100% pure

gold zari. The zari never tarnish and will look fresh even over a long period of usage. KSIC is

the only organization to give guarantee for its zari saree in the form of embroidered code No.

which is unique to each saree.

Chapter 1

What is Change?

As it is always said that nothing is constant rather than change, we can say that change is a

continuous process. Change in life is inevitable. One who accepts them and changes with

them is the one who succeeds in life.

There are instances in life when everything gets blocked and one finds himself helpless. At

that situation, one who accepts it and tries to fight-out new ways to overcome the situation

emerges in flying colors.

In this term paper, we will discuss various changes that KSIC is undergoing and the changes

that I have observed in me personally after undertaking this internship.

Need for Change

With change in environment, persons need to change in order to survive. It’s very

difficult for people to adapt to the changing environment without changing

themselves.

To make operations of organizations more effective. With any change in organization,

individual employees also need to undergo change because without support of

employees, any change in organization cannot be implemented.

Change is also required to eliminate all the deficiencies in the existing organization.

A change is always refreshing and encourages employees to move forward in their

lives.

Personal Change

Personal change is defined as means of improvement in an individual’s life. However,

personal change might need some help in finding out HOW to change. The aim of Personal

Change involves tapping the unlimited potential available in the individual.

Personal change process in KSIC

1. Discovery: prerequisite à willingness to learn. If you realize that there is something

to learn, then you can learn it.

In this stage I realized that I need to understand the trading pattern of the silk

products. And overall I want to understand the total accounts receivables and payables

of the organization with its customers and suppliers.

2. Clearing: realizing and rejection of wrong answers from the past. These wrong

answers aren’t just thrown away, but they are returned to the time, place and context

where they properly belong.

In this stage it is very important to clear the wrong perception. Before the intern I

presumed that maintaining the accounts receivables and payables is very difficult but

if we understand the market properly and also its turnover in the past years and able to

analyze the industry and company properly the difficulty level will be minimized.

3. Programming: the process of establishing useful ways of HOW to do things. That

might involve the discovery of how you already do things, the construction of more

powerful methods.

In KSIC, my guide first provided information about the market and also its suppliers

and customers. She explained how all the receivables and payables of the company is

maintained to earn huge profits.

4. Processing: the ongoing activity of working on areas where change is desired.

Processing is not just random attempts to figure something out; it is the skilled

resolution of issues.

Step 1Discovery

Step 2Clearing

Step 3Programm

ing

Step 4Processing

This stage is continue process. In KSIC, I got a task of getting to know the stock in

and stock out of the organization and also its various retail outlets across Bangalore

and Mysore.

Stages of change

Anxiety: awareness that change lies outside one’s control.

When I applied for internship in KSIC, I was in very much anxiety whether I will get

permission or not.

Happiness: Awareness that one’s viewpoint is shared by others. Relief at prospect of

change. Satisfaction that some conclusions about conditions were correct.

When I got permission to do my internship, I was very happy as it was the area of my

interest to do internship.

Fear: awareness of imminent change in one’s behavioral system.

In KSIC I was assigned the task of analyzing the stock in and stock out and also the

accounts receivables and payables of the organization. I had a fear whether I would

be able to do my work well as it was my first time working in that area.

Threat: awareness of imminent comprehensive change in one’s behavioral system.

First few days I was not able to get the task given by them.

Guilt: awareness of dislodgment of self from one’s core self perception.

Depression : Stage of general lack of motivation and confusion

In my organization my guide was busy and having very little knowledge I had to all

my work all by myself. At that time I was in depression.

Disillusionment: awareness that one’s values, beliefs, goals are incompatible with

those of the organization.

Hostility: continued effort to validate social predictions that have already proved to

be a failure.

Denial: Lack of acceptance of any change and denial that there will be any impact on

the individual.

Gradual acceptance: Here we begin to make sense of our environment and of our

place within the change. In effect we are beginning to get some validation of our

thoughts and actions and can see that where we are going is right.

Later gradually I accepted my task and completed within the time framework.

Moving Forward: In this stage we are starting to exert more control, make more

things happen in a positive sense and are getting our sense of self back.

Components of personal change

Self analysis

A personal SWOT analysis

Helps in understanding my:

Aptitude for a the job

Capacity to take on certain responsibilities like studing and maintain the

accounts receivables and payables effectively.

Capacity to bring out best

PERSONAL

CHANGE

SelfEfficacy

Self Awarene

ss

SelfAnalysis

Self Esteem

Tolerance potential of stress

Self awareness

The ability to perceive one’s own existence, including one’s own traits, feelings and

behaviors. A personal understanding of the core of one’s identity is basis for so many other

human traits, such as accountability and consciousness

Personal change through self awareness

1. Skill Development: I got skill of studying and analyzing the accounts receivables and

payables and making proper decisions so as to maintain goodwill and liquidity of the

firm.

2. Knowing my strengths and weaknesses

3. Developing intuitive decision making skills: Deciding upon which customers to give

credit and from which supplier to take the goods on credit.

4. Stress: My stress level in work and completing task

5. Motivation: learning is my main motivation factor as it will help in my future in

getting a job.

Self esteem

Self Esteem is the result of an individual’s continuous evaluation of himself or herself

(Organization Behaviour by Hellriegel, Slocum, Woodman)

In psychology, self esteem is described as a favorable or unfavorable attitude towards the

self.

Factors determining one’s self esteem:

• Childhood experiences : In my childhood my parents appreciated for right work so it

impacted me in positive way.

• Experience of success / failure: I almost experienced success and this success

motivated me to do things.

• Authority figure relationships: In KSIC most of the time I found authoritative tasks

but there was also a friendly relationship maintained by my guide which made my

work even easier.

Self efficacy

Research done indicates that people grow and develop only when there is greater exposure

and greater variety of experiences. Even when there are opportunities to be exposed to new

experiences, people need to be confident about their abilities to learn and enhance their

capabilities. This concept is referred to as self-efficacy.

In my internship I found that there is no chance to go and work in different departments. I’m

assigned to do work in accounts department only. In accounts department I did not have

many chances to expand my abilities to capture the most practical exposure.

Chapter 2

Organizational Change

Organizational Change : “A concerted, planned effort to increase organizational effectiveness

and health through changes in the organization’s dynamics using behavioural science

knowledge.

The silk weaving factory in Mysore, presently owned by KSIC, was established in the year

1912 by the Maharaja of Mysore province. Initially the silk fabrics were manufactured and

supplied to meet the requirements of the royal family and ornamental fabrics to their armed

forces business but now it produces 6,000 sarees every year and is spread in most of the

places of Karnataka and in cities like Mumbai, Cochin, Chennai across India.

The main changes found in KSIC is its working methodology. It is continuously improving

its customer service by providing better quality products and also providing good credit

period.

Change Model applies in KSIC: Systems approach.

1. When management takes a decision of change, it must understand and anticipate its

repercussions on the entire organization and its environment. It should be taken into

account that the organization is a totally interrelated, inter dependent parts, put

together for achieving certain objectives.

2. Rather than dealing separately with the various parts at an organization, the systems

theory gives managers a way of looking at an organization as a whole and as a part of

the activity of an organization affects the activity of every other part.

3. A systems view of management, for instance would recognize that, regardless of how

efficient the production department might be, if the marketing department does not

anticipate changes in consumer tastes and work with the product development

department in creating what consumers want, the organization’s overall performance

will be hampered.

In KSIC the revenues came down during the year 2010. So the management team analysed

the situation and decided to increase the customer base by providing wide variety of quality

products. The inputs for this change is mainly men, materials, machines, methods and money.

They started research base team to analyse the market conditions to provide the assistance in

decision making.

They provided training to employees. From this training the productivity of employees are

increased. They are waiting for positive results in customer base increment and are expecting

a turnover of 120 crores in th F.Y. 2012-2-13.

Resistance to change

In KSIC there wasn’t any restrictions from the employees regarding change. They adapted to

whatever decision was made by the top management

INPUTS

TRANSFORMATION

OUTPUTS

MenMaterialsMachinesMethodsMoney

ProductivityActivities

ProductivityEfficiency

Chapter 3

ORGANIZATIONAL CULTURE

Organizational Culture refers to a system of shared meaning held by members that

distinguishes the organization from other organizations.

In KSIC we can find two kind of organization cultures, i.e, authoritative and organic culture.

In Organic culture, there is great deal of emphasis on task accomplishment, team work, and

free flow of communication- formal and informal. This sort of culture stresses flexibility,

consultation, change and innovation.

In KSIC the employees are provided with tasks and they have to complete that task within

specified time. Normally there are monthly tasks like achievement of target sales and

maintaining proper liquidity of the organization.

In the authoritarian culture power is concentrated on the leader and obedience to orders and

discipline are stressed. Any disobedience is punished severely to set an example to others.

In KSIC there are four levels and the most important decisions are taken by the top

management and the day-to-day and urgent decisions are taken by the respective incharge

like the managers.

How employees learn culture?

Rituals: Rituals are repetitive sequence of activities that express and reinforce the key values

of the organization. In KSIC they repetitively conduct training programmes to employees and

also conducts meetings regularly.

Language: Many organizations and units within organizations use language as a way to

identify members of a culture or sub culture. Organizations, over time, often develop unique

terms to describe equipment, offices, key personnel, suppliers, customers, or products that

relate to its business.

In KSIC the employees uses different words to discuss themselves about the companies

performance.

Chapter-4

Meaning of Creativity & Innovation:

Creativity is mental and social process involving the generation of new ideas or concepts, or

new associations of the creative mind between existing ideas or concepts, creativity is fueled

by the process of either conscious or unconscious insight.

Components of creativity:

Expertise, Creative Thinking Skills and Intrinsic Task motivation are the three components of

Creativity.

Expertise: - Potential for creativity is enhanced when individuals have ability, knowledge,

and proficiency.

Creative Thinking skills: -This encompasses personality characteristics associated with

creativity, the ability to use analogies, as well as the talent to see familiarity in a different

light.

Intrinsic Task motivation: - This is desire to work on something because it is interesting and

motivating, and personally challenging.

Innovation and creativity in KSIC

KSIC's Intelligent Database

This page provides access to an array of public data that will allow you to visually explore

various macro components. Various agencies have been historically compiling and

generating volumes of data covering different aspects of the Indian economy.

News

KSIC gives up to date news to its suppliers and customers regarding the requirement of raw-

materials and their products. It will help the organization to maintain the goodwill and

liquidity of the organization.

Research team

KSIC has got very good quality of research team. They analyze the different competitors in

the market and also its present status and then pass on the information to the top management

so that they can make effective decisions.

Chapter-5

Meaning of knowledge Management:

Knowledge Management includes everything right from top management support, facilitating

environment, adequate infrastructure, intellectual resources, Knowledge leadership, and

proper management for the deployment of knowledge productively.

Knowledge Management is process of capturing and making use of a firm’s collective

expertise anywhere in the business.

Explicit and Tacit knowledge

KM is the process of capturing and making use of a Firm’s collective expertise any where in

the business- on paper, in documents, in databases (called explicit knowledge), or in the

people’s heads (called tacit knowledge).

In KSIC tacit knowledge is very important. The research team uses explicit knowledge but

most of the suggestions are given by them are based on their experience.

Knowledge Management Drivers

Knowledge based Drivers

Technology Drivers

Intra-Organizational Drivers

Human Resource Drivers

Economic Drivers

Knowledge based Drivers

Based on their past experience and knowledge about market they are deciding the investment

companies.

Technology Drivers

In KSIC technology is well utilized. News are provided with the help of internet and also

through messages.

Intra-Organizational Drivers

The organizational structure has to undertake a dramatic change to house the requirements of

effective knowledge management. At the same time, the organizational culture also needs to

change radically to accommodate these requirements. In KSIC the structure has been changed

to line structure to functional structure. And also the decision making was authoritative and

this is now changing to interactive.

Human Resource Drivers:

Human Resource drivers of KM include the need for improved knowledge transfer, sharing

and creation of cross-functional teams of knowledge workers. In KSIC they are conducting

training programmes to exchange knowledge. Freshers are given training under senior

employees.

Economic drivers:

Knowledge reschedules traditional economics of an organization by generating additional

returns and additional value, hence it is increasingly employed.