Organizational Behavior II

Project Report

KPMG
Organizational Dimensions and Change
Management: Issues and Challenges

Submitted to Prof.
Ankita Tandon
Section-C

Submitted by:
Khushi Jain- 21PGDM143

Ayush Jain- 21PGDM131

INTRODUCTION:
About the company:

KPMG, a multinational professional services network have an Anglo Dutch origin and operates in 145
countries and territories with more than 236,000 employees (in FY 21), serving the needs of business,
governments, public-sector agencies, not-for-profits and through KPMG firms' audit and assurance
practices, the capital markets. KPMG stands among the big four accounting firms. KPMG is committed to
service and quality excellence..

KPMG provides the following services in collaboration with its strategic alliance partners:

● Expanded product choices and increased capabilities provide a wide range of services and
solutions.
● Built with cutting-edge technology, innovative and scalable services and solutions
● Strong return on investment to help you get the most out of your technological investments
● From a technological, risk, compliance, and security standpoint, you can rely on our services and
solutions.

KPMG is currently the largest provider of risk, financial, and company consulting services in India, as
well as tax and legal services, internal audit, and corporate governance. The organization adheres to a set
of following values that dictate how they interact with its many stakeholders:

● Service and Quality Excellence

● Integrity
● Courage to empower their employees
● Together

Vision and Mission statement:

Vision: Their aim is not to be the biggest professional services firm. Their vision however is to be the best
professional services firm. For KPMG in India, being the clear choice means that:
1. Our people are extraordinary;
2. The public trusts us.
3. The clients see a difference in us.
KPMG hopes that the company will be the Clear Choice for people.

Mission: To turn knowledge and understanding of information, industries and business trends into value
for our firms’ clients, our people and the capital markets

KPMG’s Culture:
KPMG recognizes and rewards great performance by recognizing potential, nurturing talent, and
rewarding outstanding performance. They foster an environment in which you are encouraged to pursue
your goals and effect long-term change. This shared philosophy, as well as their thankfulness culture,
allows individuals to be recognized for their abilities and valued for the perspectives they contribute to
their teams and clients.
KMPG is an open, diverse, and inclusive workplace where everyone can invest in themselves and achieve
their full potential.

Method used to gather information:

We, the paired members, contacted the designated person of the organization i.e., KPMG, to gain a better
understanding of the company's Organizational Dimensions and Change Management. Even we did the
secondary research to get a more clearer picture of the organization.

People Interviewed:
Miss. Priya Katrai Rangarajan

Assistant Manager at KPMG India

https://www.linkedin.com/in/priya-katrai-rangarajan-6b7a84205

Ms. Priya didn't let us record the interview but we noted down all the important details she gave us in the
interview.

Interview:
Q1) What is KPMG’s organizational structure and how is it beneficial?
Ans) As KPMG has segmented the firm into specialized sections based on distinct services, they use a
matrix structure. Tax, advice, and audit are the three key domains. All of these specialist sectors work
together to fulfill the organization's objectives.. The organization is organized in a matrix, but everyone
works together to attain the best possible standards. To maintain efficiency and effectiveness, each
employee reports to several bosses or is overseen by multiple bosses. A single boss guarantees that all
other bosses are kept in the loop.

Q2) What is the reporting structure in KPMG?

Ans) At KPMG there is no such hierarchy. It's kind of a flat hierarchy but as they follow matrix structure
so one person reports to different managers. But they do have performance managers which look for a
person's overall performance and growth. They keep a track of one’s performance round the year and stay
in touch with all the various managers one reports to.

Q3) Does KPMG follow a more standardized or flexible process?

Ans) KPMG has more of a flexible process. It's not like that one has to work on the same kind of
technologies for the whole job tenure. KPMG gives you flexibility to learn and work on different
technologies. She said as the structure is a matrix structure one gets to interact with multiple stakeholders
and get a clear visibility till partner level.

Q4) Comment on KPMG’s change management.

Ans) As you all know organizations must continuously evolve and adapt to shifting market dynamics in
order to grow, transform, and survive in a fast changing world of work. Continuously reshaping and
transforming the workforce of the future is a crucial differentiator in generating extraordinary business
performance.
KPMG has a separate team known as ‘The People & Change team’ in India which assists individuals in
realizing their full potential and navigating transformational change across functions to achieve higher
levels of performance. The team assists in the development of strategies, structures, systems, and
processes, as well as the development of competencies to recruit, develop, motivate, and retain people in
order to achieve the organization's strategic goals.

Mr. Yashu Sharma

 Manager at KPMG
https://www.linkedin.com/in/yashusharma

Interview’s Recording Link:

https://drive.google.com/file/d/1gZ5P28TDK6_3USEINnApg678QjJcznZT/view?usp=sharing

Q1) Why KMPG follow matrix structure and how is it beneficial?

Ans) The major reason is the kind of work we are doing, the kind of industry we are in. So we are a
consulting firm. We work with multiple partners; it can be internal clients and as well as external clients.
So when you have this kind of structure you can’t be bound to one particular manager. You can have
engagements on different projects with completely different technologies and hence you can’t depend on
one manager as every manager’s skills vary. What we have done is for engagements perspective you can
have different managers but from performance perspective it’s not like that you have multiple managers
and at the end of the year you have to take feedback from all of them, instead we have a performance
manager, his role is basically to interact with all of the engagement managers and making sure that its not
effecting your overall performance.

Q2) What fascinates you about working in KPMG?

Ans) For me at this stage as I am the manager, so i have the clear visibility of being the partner, partner
being the highest designation in KPMG. Essentially I believe that if I was in a different organization, at
one point I cannot become the CEO of the company but KPMG gives me that flexibility that I can
become the partner. Second factor is the compensation but in my case that is not that important. For me
the kind of people that I work with, my managers, my peers matters. I think my peers at KPMG align with
me, my values and my beliefs. And even at KPMG we have a flat structure although we have managers,
partners and all still we don't have a hierarchical structure. So these were some of the important factors
which fascinates me about working in KPMG.

Q3) How is the work culture different in KPMG when compared to other companies in the
industry?
Ans) As it is a flat hierarchy so you have clear visibility till your partner level, no hierarchy as such that
is one of the major factors. As I am part of the KPMG lighthouse team which is one of the pillars of
KPMG so the thing is today as I am working on one technology and tomorrow I want to learn and work
on something else. I don't have to go anywhere else. It's the same pillar or the same umbrella under which
all these technologies come into. I can approach my superiors and can tell them about my interests. As we
are working under a very big umbrella there is a lot of scope of collaborations. Everyone can work
together and learn different things. This shows that there is a lot of flexibility in KMPG.

Q4) What are the challenges you face in day-to-day work processes?

Ans) As we are a consulting firm we are providing services to the other clients so the main challenge
which i see is that the values which KPMG have or the kind of people KPMG have it might be possible
that the client don't have those kinds of values. For example your manager respects your work life balance
but it's not necessary the client respects it too. They might think since we are paying the person should
work 24*7. This is one of the challenges we face. To hold such kinds of values you can't change the
organization right. The changes you can make are within your own organization. One more challenge
which I feel is again due to KPMG being a consulting firm, so per covid what used to happen was you go
the client location and work there so due to this you go to your office very less which results in lost of
touch with you peers.

Q5) Covid has been an outstanding example depicting dynamic work culture, so what changes have
you observed in company’s dynamics pre and post covid and do you think that KPMG was able to
facilitate or strategies quickly?

Ans) So as I earlier mentioned in KMPG you usually work from clients locations and hence things go on
without coming to the office and hence the things were simpler for KPMG as they had this work culture
of working from clients location. They took advantage of this covid situation and hence were able to lease
out their properties to some other companies to make sure that they are not losing on cost. Even after
covid they are not forcing people to come back. Offices are open but there's no discussion about
permanent work from the office. There is a change in stance that people have understood that coming to
office is not that much important if you want your work done. But personally I feel if you don't go to the
office for long too long you lose touch with the team. I personally feel a hybrid structure should be there
but from the KPMG's perspective they are not forcing the employees to come to office.

Comprehensive Summary of Data Collected:

We interacted with two designated people of KMPG Ms.Priya and Mr. Yashu and tried to understand the
structure of the organization and the change management. KPMG has a matrix structure with multiple
reporting points for each employee. It's kind of flat hierarchy where one have a clear visibility till the
highest authority level i.e. Partner. KPMG being a consulting firm has multiple internal and external
clients with different requirements and thus having a matrix structure simplifies the process. Having
multiple managers helps in evaluating performance of employees and helps in getting a deeper
understanding of the work done. KPMG offers the rank of a partner to its employees which motivates
them a lot. Being the CEO of a company is not an easy task and not easily achievable but by being a
partner they get this recognition and sense of achievement that is incomparable. This according to us is a
great way of keeping the employees motivated to achieve their targets. Another thing that keeps the
employees motivated is the opportunity to work with the brightest minds of the country. The hierarchy
however is a crucial way of solving the grievances and challenges. When the managers reach the level of
partners, they follow a flat hierarchy wherein they can consult with their peers at any point of time for
whatever the issue may be.

Organizational Analysis:
Organizational Structure:

Matrix
Partner/Associate Partner
The associate partner or partner is put at the top of the company's hierarchical structure or pile. He or she
is in charge of the company's important choices and also participates in board decisions. The partner
envisions the company's future and ensures that it is always operating at peak performance.

Senior Manager
In KPMG, the senior manager has an administrative role, ensuring that all of the firm's functions and
operations are running well. He or she is responsible for coordinating the actions of all other employees in
the organization, as well as supervising the manager and others who work under him or her.

Manager
The manager is the next post at KPMG. The manager, too, has an essential administrative role to perform,
and may be tasked with managing many departments and duties. Depending on the size of the branch,
multiple managers may be assigned to various operations and segments. For example, there could be a
separate manager for office operations, a separate manager for handling workers, and a separate manager
for accounts and finances, among other things.

Senior Consultant
The senior consultant is the company's second most important position. The senior consultant is the
person who interacts directly with clients and ensures that their demands are met. He/she provides orders
to his/her subordinate consultants and reports directly to the partner. He or she may also be involved in
crucial decision-making and plans for the benefit of the organization.

Consultant
The consultant is the next rank in KPMG's hierarchical organization. The consultant follows the senior
consultant's orders and may attend client meetings. He/she is in charge of projects and ensures that the
organization is performing to its full potential in order to please clients. He or she gives clients guidance
and is in charge of bringing in new accounts.

Analyst
Analysts work at the lowest level of KPMG. This is an entry-level role in the organization, and the
majority of the positions are filled by recent graduates. Analysts' primary responsibilities include
assessing data and providing recommendations or consultation on such topics. An analyst at KPMG can
only progress up the chart to the position of consultant and subsequently senior consultant after obtaining
around 2-3 years of experience.

Organizational Strategy:

KPMG follows an analyzer approach. They believe in constant innovation but precautions. As mentioned
in their vision statement, they ought to be the best even if not the biggest. They are constantly monitoring
their performance and trying to develop their processes, procedures, methods and approaches to run their
business.

7-S Model

1. Strategy - The strategic directions to achieve the goals are conveyed to all employees and
stakeholders. They set SMART goals to help simplify the process. These strategies are flexible
and adaptable keeping in mind the dynamic environment. This gives the company an edge over
the competitors and meets the changing customer demands efficiently.
2. Structure - They follow a flatter hierarchy as was confirmed by the employees which helps the
employees stay confident and secure about their work and position. The company follows a
systematic approach to attain smooth flow of information and coordination between different
departments as specified in the matrix structure. They have a unique hybrid structure between
centralized and decentralized which facilitates communication.
3. Systems - KPMG has well demarcated systems in place to ensure there is no trouble in
operations. They have three major divisions: tax, audit and advisory. They also have separate
departments in terms of finance, marketing, operations etc. This division helps the company
monitor the performance of each department and evaluate the progress. Employees get a clarity of
what their roles and responsibilities are. This also helps them align the workforce.
4. Shared Values - KPMG has an inclusive culture where they celebrate diversity. They encourage
innovation and creative ideas by allowing independence. They prefer supportive leadership which
keeps the employees motivated and also gives them space to experiment with their ideas.
5. Style - As discussed above, they have a participative leadership style which is effective in terms
of achieving the goals of the organization. They choose to support and encourage the employees
at the same time. They cooperate in the time of need but also challenge constantly to help
employees discover their potential. They give individual as well as group tasks to give employees
a taste of both.
6. Staff - KPMG has employed a great number of employees from all across the globe belonging to
different backgrounds. They organize in house training and external training to help employees
develop their skill set. They try to fill the gaps between the required capabilities and the current
capacities.
7. Skills - They consider their workforce as their competitive advantage and thus take necessary
steps to ensure their skill development to maintain the edge.