Change Management: A Case of State Power Utility in India

Uttar Pradesh, the most populous state of India, had plunged into a crisis due to deteriorating electricity supply and worsening law and order situation. The reason behind it was agitation by employees of Uttar Pradesh State Electricity Board (UPSEB) against the power sector reforms undertaken by the state government. As part of the reforms, the government backed unified board structure was trifurcated into separate corporate entities. The State Energy Secretary was pondering over reasons behind this impasse between UPSEB employees and the UPSEB management represented by the Uttar Pradesh Government. He had to evaluate a few available options to resolve the crisis and select the most appropriate one.This case highlights the importance of understanding change management process. It also looks at various industrial rela-tions issues to be addressed while undergoing transition, especially in an organizational setting where the Government is a majority stakeholder. It examines the reasons behind resistance to change; and external and internal factors that may lead to industrial relations problems. The case also highlights the need for communication among all stakeholders during transition in order to avoid industrial relations problems.