IMF has wide range of stakeholders, which provides financial support for the member countries. Prime responsibility of the IMF is to stabilize the member countries economy & provide financial suggestion for the countries concern. Based on the stake holders, the change model is identified. Certain factors are important for successful implementation of the change plan.
Mc kinsy's 7 s framework is considered to analyse the success factors of the implementation.
This report intends to highlight about the stake holders of the IMF, change model & what factors important for the successful implementation of the plan is being highlighted.
Change plan try to identify the communication gap exist between the members & what additional training & support should be provided for the team members.
2- Who are the primary stakeholders of the IMF organisation.
Stake holders are people or group who are interested about the business of the organisation. Satisfying prime stakeholders is a part & parcel of every organisation including the public & nongovernmental organisation ( oliver 1995)
One of a prime stake holder for IMF is United nations & it's security council.Security Council votes are almost always traded behind the scenes because most countries prefer to conceal vote trading arrangements to escape public condemnation (Eldar 2008). If any member is being recalled form the security council, IMF does not provide the entire loan upfront,
7 For a general argument and a case study of the Gulf War, see Thompson (2006).
World bank is another important stake holder for IMF.
The World Bank is a vital source of financial and technical assistance to developing countries around the world. Our mission is to fight poverty with passion and professionalism for lasting results and to help people help themselves and their environment by providing resources, sharing knowledge, building capacity and forging partnerships in the public and private sectors.( the world bank ,2010) about us
Both the World Bank & IMF are sense owned and directed by the governments of member nations. Staff members of both the Bank and IMF often appear at international conferences, highlights the poverty reduction in the countries. Both organisation should work together to achieve synergistic effect.
The World Trade Organization (WTO) is an international organization of 153 members that deals with the rules of trade between nations. The WTO works to help international trade flow smoothly, predictably, and freely, and provides countries with a constructive and fair outlet for dealing with disputes over trade issues.(IMF & WTO,2010)
The work of the IMF and the WTO is complementary. A sound international financial system is needed to support vibrant international trade, while smoothly flowing trade helps reduce the risk of payments imbalances and financial crisis. The two institutions work together to ensure a strong system of international trade and payments that is open to all countries. Such a system is critical for enabling economic growth, raising living standards, and reducing poverty around the globe. In the meantime organisation such as UNDP also a prime stake holder of IMF.
Satisfying all stake holders is difficult task for any company including the IMF.IMF has the key responsibility of reducing the poverty in the Asian region. Close relationship with the World Bank & other financial institute in the country concern is also important, stake holders for the IMF.Change plan should address the needs of the prime stakeholders.
Which proposal to change the structure and organisation of the IMF do you
support?
Different proposals are being looked at to change the IMF organisational structure. The Executive Board is currently composed of 24 Executive Directors, of which five are appointed, without a fixed term. Two-year term for elected Executive Directors is not enough for a Director to learn all the operations of the IMF, to establish productive relations with management, the staff and
fellow Directors, and to become fully effective. In the meantime, the possibility t the entire Board, would change in a single election may not be appropriate for an efficient operation of the Board. In the mean time currently the governor has 3 years. But to make the IMF more stable it could make 5 years. So the govern could focus on the long term stability of the IMF operation.
Executive Directors perform a two role. International officers entrusted with the responsibility of ensuring that all operations and activities of the Fund are guided by the purposes of the Articles of Agreement and, simultaneously, they act as representatives of the views and interests of the countries that appointed or elected them. While in the long run these two roles hopefully would likely converge5, there might be divergences in the short run between the interests of a particular government, or even the national interest of a given country, and the international objectives of the community of nations.
In these instances, the Executive Director has to be able to exercise balanced judgment and to act as an international officer while taking into due consideration the long-term national interests of the countries he or she represents.
IMF needs change the structure & organisation in order to make the progress & to achieve it's objectives. The objective of change was to achieve positive image about IMF from the stake holder's point of view. Currently the decisions of the IMF have not been coordinated between the departments concern. Before implementing the change current environment has to be analysed.
Kurt Lewin's model will be used to propose the change in the IMF (Lynch ,2009)
Initially IMF should come out with the current postion.which is called Unfreezing stage. Base on above IMF needs to identify the Executive directors should be given the opportunity of working more than two years. Idea should be welcome by the board of governors.
To unfreeze the condition top management & Board of governor's support is needed. How the new change would help to achieve success in the IMF should be highlighted. vision of the company has to be communicated across the IMF.IMF vision is to provide extensive prosperity and lifting millions out of poverty, especially in Asia.(IMF,2010) the Aim has to be communicated across the divisions. This could be done by stabalising the executive directors in the IMF.
IMF will use Certain Unfreezing techniques to identify the change. Challenging working environment has to be created in the IMF. In the meantime IMF could consider of evaluating based on the Objectives set. Management by Objectives (MBO) concept introduced by Peter Drucker (1973) explains that, to implement the change plan, objectives have to be set for the team members. Each divisions such as finance, strategic & policy review, HR & legal division is required to achieve the change in the IMF. Redesign the organization to force for behaviour change in the employees. Change the structure of the IMF requires behaviour change in the employees of the IMF & senior staff of the IMF.
3) Which is the most effective technique to involve the primary stakeholders in that proposal? (
Meeting with the world banks could be conducted. Most of the decision could be supported with the United Nations decisions. Strategic partnership could be formed with the World bank when deciding the major changes for the IMF.Feedback mechanism could be developed with the UN & world bank.
4) How would you plan the implementation of that proposal?
When implementing the change of structure, the IMF has to understand the employees who support the idea .based on those employees & member countries could be categorised. Which would be supporters, Opposes & neutrals.Succesful implementation will be able to done after getting the approval from the Board of Governors. Supporters support should be obtained in order to make plan successful. Board of governors should believe that the change which is extending the directors working years for more than two years is required for IMF, to create positive impact. What IMF is planning to do have to be communicated with the supporters including member countries through Meetings, General meeting, Discussion forum could be used.Appoint the change team, to implement new policies in the company.
Change team could create a challenging environment from the IMF .encouraging the ideas from the people. Arrange the training session prticiapte for the decision making ideas.
Some coaching & psychological support should be given for the team members; especially the senior team member in the IMF.change model has to be communicated with the BBC or other international channel, to make sure that the change is felt by the other governmental bodies & the stake holders.
Even small success should be celebrated in the company. While doing the change in the structure how does it enhance the decision making procedure could be highlighted.regualr meeting with the change management tem & senior management tem should be held in order to understand the progress of the change.
Involvement is important for the successful implementation of the change. All the division in the IMF such as HR, legal finance, policy review team members should be participated for the meeting.
Restructuring, redesigning the organization to face the current trend is important. Once the structural change is done the organisation should redesign in accordance with the change. change in the IMF will not believe ,unless it breaks down in to smaller packages.
Refreezing is the final goal of the change plan.IMF should not go back in to previous status. It should embrace the new change.
It could be done by ensuring that the new change is enhance the image of the company.. Show them time and again that the change is real. Put rewards & celebrate the success of the achievement.
5 What are the criteria for success of that implementation plan?
Successful implementation of the change depends on certain criteria. McKenzie's 7s model could be used for successful implementation of the plan. The new structure would coordinate who is responsible for the task, & task would be divided accordingly.
The current strategy of the IMF should support the change. Current strategy is to develop plan to overcome global debt issue, which faces by the member countries.
Leadership style of the IMF is a major factor to support the implementation. Current Managing directors leadership style has a greater affect on the change programme which is to increase more than two years for directors. Supportive & democratic leadership style welcomes the changes. Staff should be recruited based on the current requirement. Existing staff attitude will make the plan successful or failure. HR division has to make sure that the new recruitment done to achieve overall plan of the IMF.Team values & leadership value system makes the organisation to look for change or not.
Current Systems & information system, training, budgeting for the staff also creates the success factors for the IMF. What the organisation and staff do best .more innovative skills required to address the current issue that IMF is facing right now. More analytical & visionary skills makes the IMF to implement the plan the successfully. ( Carnall, 2002)
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6-Conclusion.
Analysing the stake holders of the IMF lead to plan out the change model for IMF.Proper strategy should be developed to implement the change plan. Change is required for the IMF's future. Change should be felt by all members of the staff. Top management should evaluate the success of the change continuasly.Change should achieve the desired level of success for the IMF.Lewin model is used to implement the change in the IMF.Clear analysis should be done in order to implement the plan. Celebration of the success & communicate through the press release makes the plan to be alive.
In the meantime successful implementation of the plan requires the leadership support, support from the systems such as better information system, accurate data base. Culture of the organisation & value system in the company also affect to implement the change.
