managing change in organisations-manoj

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1. It is generally believed that, IMF (International Monitory Fund) was

established in order to support monetary constancy among the countries in all

over the world regardless to regions, continents and status of the countries

such as whether the countries are developed or developing. However, thecurrent trend of IMF shows that they are always keeping certain amount of

partiality to certain countries especially to the western countries such as the

countries in the European Union, USA etc., And also, there is a common

belief on the general public that, IMF (International Monitory Fund) is

controlled by the United states of America as they contribute the major share

in terms of finance to the IMF. Most of the time the US government trying or

acting as the controller of IMF by issuing the statements related to IMF

without any consultation with the selected governing body of IMF.

The evidences in the past shows that, the IMF keeps a discrimination to the

countries in certain parts of the world such as African countries and most of

the Asian countries. The recent example of the above mentioned partiality is

that, the IMF has provided a financial support of 30 billion (Euro) to Greece

to overcome from the bankruptcy. This was a joined effort with the European

Union as a financial relief package to Greece. Further more, recently IMF had

an initiative to help the countries like Portugal and Italy, whose economy is

moving towards failure.

In contrast, on the other hand, there are countries from Africa, Asia andcertain countries in the American continent, which are economicallybackward and facing starvation, slavery, homelessness, health problems,non-availability of water, unemployment, civil war, and people are dying ofpoverty, malnutrition, and diseases like AIDS, cholera, diarrhoea etc.,deserves and needs a strong support and monitory aid from IMF to wipe outthe above mentioned problems, are being utterly neglected by the IMF.

More over, IMF, has taken strong measures on under developed (poor) and

the developing countries to cut down their expenses in the areas such as

education, social security, health service and others, on the opinion that,cutting down the costs increases the growth rate. And also, there is an

enormous pressure and enforce on the poor countries to increase taxes. To

cope with the GDP, the poor countries has increase taxes and implement

levies on the basic needs as well. However, this pressure from the IMF to

the poor countries may lead to poor functioning of the most important

basically needed areas such as education, health service, defence.


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According to Oxfam, during the time of recession, only the 13 % of the

assured grant, by the developed countries and the G20 nations who are

members of IMF, has provided to the poor countries.

The empirical study shows that, the functions of IMF is not at all satisfactory

and this may create, a negative impact on IMF and has to face criticism aswell.

2. The evidence suggests that, International Monitory Fund (IMF) was

established by the United Nations in the year 1945. It is located at

Washington DC in USA. Currently, there are 187 nations participating as

members. IMF was formed in a vision, which is to encourage universal

monetary collaboration, protect the financial constancy, to make the global

trading easy, prop up employment and economic growth sustainability, and toshrink poverty all over the world, with out showing any discrimination among

the countries.

The organisation has a structure and is controlled by the Board of Governors.

Each member countries have their representation with a governor. Board of

Governors is the governing body and has an authorised power of making any

vital decisions in the entire organisation to allocation of funds to the countries

which are struggling with economic failure.

The organisational structure for fund is made up of mainly with 4 magnitudes.

These are efficiency, effectiveness, voice and accountability. It is commonly

believe that, the powerful trait of fund is effectiveness and the pathetic is

accountability.

In terms of effectiveness, the IMF has got a solid management formation with

a managing director, who is provided with 3 deputies, so that they can work

very effectively in every functions in the organisation. This organisational

formation controls and transfers information within the organisation which

makes compliance and stability. Whenever a member country is in need of

any sudden aid this very well organised management makes a rapid

evaluation and then organise the financial aid.

As mentioned above, accountability is the main weakness. There seems, lack

of criterion for analysing the functions of IMF. The influence of US government

on IMF heavily on the decision making of providing aid to the countries which

are anticipating the aid to overcome any kind of crisis. As a result of the

pressure from US and other western countries, IMF is forced to apply very

strict measures to allocating the aid.

3. In IMF, besides board of governors, there is a managing director and eight

executive staff, are working. It will be difficult for the board of governors to


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analyse and take the decisions in each and every issues arrives in IMF. The

current 16 member multi country involvement in the board is comparatively

large. This makes the issues more time consuming and this may affects the

quality and efficiency of the result. Further more, this may also increases the

cost.

In contrast, this essay proposes few suggestions to change the structure of

organisation. Firstly, IMF has to abolish the posts of five directors. Then, each

member country in the IMF should be given their chance to put forward their

opinion, so that every decision can be made unanimously, this satisfies each

member, rather considering the opinion of only few countries such as G7

countries. The right for voting for any decision making also should be shared

among all the members in the IMF. This participation of all countries helps to

look into each issues coming in front of IMF and all the member countries will

be benefited in the allocation of funds with out any partiality.

4. The primary view of this proposal is to boost up the influence of under

developed and developing countries in the IMF, as these countries also

contributing for the existence of IMF and also to release the IMF from the

boundary created by the G7 nations. The current organisational structure is

found very difficult to make any unanimous decisions. The Document

disclosure policy of 1965 by IMF, which makes the accessibility of documents

to general public about the operational functions and the decisions with in the

IMF. If the IMF can make this system more transparent, then the IMF can

retain their position among international community in a positive manner.

Because of the current structure and the rules and regulations, the GDP ofArgentina has gone far down in 2001. So, the current structure should be

abolished and reformed, and this will results to increase the reputation of IMF

in to the whole international community and can be work as an independent

organisation.

References

1. John P Kotter (2008) Leading Change (6th edition) FT Prentice Hall

2. Robert A Paton (2008) Management & Management Techniques(4th edition)

Sage publications ltd

3. http://www.imf.org/external/index.htm

4. http://cozay.com/

5. http://www.ieo-imf.org/eval/complete/pdf/05212008/CG_main3.pdf


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6. http://www.oxfam.org/en/pressroom/pressrelease/2010-04-21/imf-2010-world-

economic-outlook-neglects-analysis-impacts-poor

managing change in organisations-manoj

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