Eagle Manufacturing Ltd. has been facing declining productivity due to outdated working methods, rigid routines and workforce inefficiency leading…

CA Intermediate · Financial Management and Strategic Management · PYQS · May 2026
Eagle Manufacturing Ltd. has been facing declining productivity due to outdated working methods, rigid routines and workforce inefficiency leading to quality degradation and increasing customer complaints. To enhance operations, productivity, quality and work routines, the Board introduces new technologies and operating procedures to ensure continuous improvement and efficient workflow with operator feedback and performance evaluation. The management faces initial backlash from the employees to adopt these new techniques as they are a bit hesitant and scared of change. To cater to their concerns, the management introduces various awareness sessions, capacity building programs and exercises to handhold the operators during this transition while effectively communicating the need for change for future resilience and long-term benefits. Post these training sessions, the new techniques and procedures are gradually implemented in a phase-wise integration with constant support for seamless adoption by the employees in a moderated manner to accept. Finally, the management takes steps to stabilize these new work methods through revised policies, performance measures, and reward systems to ensure that employees do not revert to old practices. Identify the model being applied by Eagle Manufacturing Ltd. in the above case. Explain the different phases of the process for moving the organization from the present to the future. Is this a one-time Process/ application?

Suggested Answer and Working Notes:

(a) The model being applied by Eagle Manufacturing Ltd. is Kurt Lewin's Three Phase Model of Change comprising Unfreezing, Changing and Refreezing. It reflects strategic change undertaken to improve organizational efficiency, productivity and competitiveness. Phases of Kurt Lewin's Change Model (a) Unfreezing the Situation: Unfreezing means making employees aware of the need for change and preparing them to accept it by breaking old attitudes, rigid routines and existing work practices. In the given case, employees initially resisted the new technologies and procedures. Therefore, management conducted awareness sessions, capacity building programmes and communication exercises to explain the need and long-term benefits of change. (b) Changing to the New Situation: In this stage, new behaviour patterns, systems and procedures are introduced after employees recognize the need for change. In the given case, new technologies and operating procedures were gradually implemented through phase wise integration with continuous support, guidance and feedback mechanisms for employees. (c) Refreezing: Refreezing occurs when the new behaviour becomes a permanent way of organizational life and employees do not revert to old practices. In the given case, revised policies, performance measures and reward systems were introduced to stabilize the new work methods and institutionalise the changed practices successfully. Is it a One-Time Process? No, it is not a one-time process. Change is a continuous and cyclical process due to dynamic business environment, technological changes and competition. Therefore, organizations continuously undergo the stages of unfreezing, changing and refreezing.

Topics: Part-A: Financial Management

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