6976882 a presentation on organizational change model

7/27/2019 6976882 a Presentation on Organizational Change Model

1/14

OORR

GAGA

NIZNIZ

AATIONALTIONAL CHANGECHANGE MMOODEDELL

WWhhatat isis cchhaannggee??

CChhaannggee ii ss tt hhee llaaww ooff nana ttuurree .. II tt iiss nneecceessss aa rryy wwaayy ooff l il i ffee iinn mmooss ttoo rrgaga nn ii zz aa tit i ononss ffoo rr tt hehe ii rr ss uu rrvivviv aa ll aanndd gg rroo wtwt hh .. MaMa nn hh aa ss tt oo mm oouu ll dd hh iimmssee ll ffccoonntt iinnuuoouuss llyy tt oo mmeeee tt nneeww ddeemmaanndd aanndd ffaaccee neneww ss ii ttuuaa tt iioonnss ..

Thhee tteerrmm 'O'Orrgagannii zzaa titiononaa ll CChhaannggee ii mmppll iiee ss tthhee crcreaea tit ioonn ooff iimmbbaa ll aannccee iinn tthhee

eexxii ss tt enenccee papa t tt teerrnn oorrss ii ttuuaa tt iioonn ..

RReaeassonon forfortthhee CChahannggee

Change in the organization is a must whether brought about deliberately orunwillingly. The reason for change are categorized as follows: change inbusiness conditions, change in managerial personnel, deficiency in existingorganizational patterns, technological and psychological reasons, governmentpolicies, size of the organization etc.

MModelsodels ofofcchhananggee

Although there are a lot of change models and theories have beenformulated by various experts and management gurus but here we will give a glanceon few models of change.

At first we will discuss about Lewin's

Three Step Change Model

LLeewwin'sin's TThhreeree StepStep CChahanngege MMoodeldel

Most theories of organizational change originated from the landmark work of


2/14

social psychologist Kurt Lewin. Lewin developed a three - stage model ofplanned change which explained how to initiate, manage, and stabilize thechange process. The three stages are unfreezing, changing, and refreezing.


3/14

Let us now consider the three stages ofchange which come in a systematic manner:

U n fre e z i n g The focus of this stage is to create the motivation to change. In sodoing, individuals are encouraged to replace old behaviors and attitudes withthose desired by management. Managers can begin the unfreezing process by

disconfirming the usefulness or appropriateness of employees' present behaviors orattitudes.

Changing: Because change involves learning, this stage entails providingemployees with new information, new behavioral models, or new ways oflooking at things. The purpose is to help employees learn new concepts or pointsof view. Role models, mentors, experts, benchmarking the company againstworld-class organizations, and training are useful mechanisms to facilitate

change.

Re f r e e z in g Change is stabilized during refreezing by helping employeesintegrate the changed behavior orattitude into their normal way of doingthings. This is accomplished by first giving employees the chance to exhibitthe new behaviors or attitudes. Once exhibited, positive support is used to

reinforce the desired attitudes. Additional instructions and modeling alsoare used at this point to reinforce the stability of the change.


4/14


5/14

EdgarEdgar HHuussee's's sevenseven ssttaagege MMododeell ofof ChChaanngege

In 1980, EdgarHuse proposed a seven- stage OD model basedupon the original three-stage model ofLewin.

1. Sco u t ing - Where representatives from the organization meetwith the OD consultant to identify and discuss the need forchange. The change agent and client jointly explore issues to elicittheproblems in need ofattention.

2. Ent r

y - This stage involves the development and mutualagreement

to effect the change.

3.D i ag n o s is - Here, the consultant diagnoses the underlyingorganizational problems based upon their previous knowledge andtraining. This stage involves the identification of specificimprovement goals and a planned intervention strategy.

4. P l an n in g - A detailed series ofintervention techniques andactions arebrought together into a timetable orprojectplan for thechange process.

5.Ac ti on - The intervention is carried out

according to the agreed plans. Previously established action stepsare implemented.

6. St a b il izat i o n - This is the stage of 'refreezing'. Newly implementedcodes of action, practices and systems are absorbed into everydayroutines.

7. Evaluation is conducted to determine the success of thechangeprocess and any need for further action is established.


6/14

JJoohnhn PP.. KKottotteer'sr's 'eight'eight ssttepseps toto susucccceessssffuull cchhaannggee''

Kotter's eight step change model can be summarised as:

1. I n cr ease u r g e n c

y - inspire people to move and make real and

relevant changeobjectives.

2. B u i ld t h e guid i n g team - get the right people in place with theright emotional commitment and the right mix ofskills at all levels.

3. Get th e v i s i on ri g ht - get the team to establish a simple visionand to lay organizational strategy

4. Co m m u n i cation - Involve as many people as possible,communicate the essentials, make an appeal and respond to people'sneeds.

5. Emp o wer ac t ion - Remove obstacles, enable constructivefeedback, get support from leaders, reward and recognizeprogressand achievements.

6. Set aims that are specific, measurable, achievable, realistic and time-bound.

7.Foster and encourage determination and persistence i n t h e ongoingchange. E ncourage ongoing progress reporting. Highlight the

achieved and future milestones.8. Make change stick - Reinforce the value of successful change via

recruitment, promotion, new change leaders. Weave change intoculture.

Change through Total Quality

Management (TQM).

TOTAL QUALITYMANAGEMENT


7/14

Total - Made up of the wholeQuality- Degree of excellence a product or service provides

Management- Act, Art or manner of planning, organizing , directing controlling andcoordinating of affairs.

DEFINITION:

1. TQM is the management approach ofan organization, centered on quality, basedon the participation of all its members and aimingat long-termsuccess throughcustomer satisfaction and benefits to all members of the organization andthe society.- ISO

2. TQM is a people - focused management system that aims at continualincrease in

customer satisfactionat continually lower cost. TQM is a totalsystem approach(not a separate area ofprogram ), and an integralpart of high level strategy. Itworks horizontally across functionsand departments,involving all employees,topto bottom,and exceeds backwards and forward to include the supply chain andthe customer chain - TOTAL QUALITYFORUM OF USA

CHARACTERISTICS OF TQM.1. Customer Oriented.2. Longterm commitmentfor continuousimprovement of all processes.3. Team work.

4. Continuousinvolvement oftop management.5. Continuousimproving at all levels and all areas ofresponsibility.

OTHER CHARACTERISTICS

1. Continual Improvement:

This is the philosophy that seeks to make never-ending improvement to the process of

converting input into output.It covers equipment, methods, materials and people.

2. Competitive Benchmarking:


8/14

For learning how to improve your operations, you have to identify the companies or

organizations that are the best. The company need not have the same line of business all thetime. Example: Xerox used the mail order company, L.L. Bean to Benchmark order filling.

3. Employee Empowerment:

Giving workers the responsibility for improvements. This puts decision making intothe hands of those who are closest to the job and have considerable insight into

problems and solutions.4. Team Approach:

The use of teams for problem solving and to achieve consensus takes advantages of group

synergy, gets people involved and promotes a spirit of co- operation and shared valuesamong employees.

5. Decision based on facts rather than opinion.

6. Knowledge of tools:Employees and managers are trained in the use of quality tools.

7. Supplier Quality: Suppliers must be included in the quality assurance and qualityimprovement efforts so that the processes are capable of delivering quality parts and materials in

good time.

BASIC CONCEPTS OF TQM:1. Top management commitment2. Focus on the customer - Both internaland external3. Effective involvement and utilization ofentirework force4. Continuous improvement5. Treatingsuppliersas partners6. Establishingperformance measures for the processes

PRINCIPLES OF TQM:1. Customers requirements - ( both internal & external) must be met first time &every time2. Everybodymust be involved3. Regular two way communicationmust be promoted

4. Identify the trainingneeds and supply it to the employees


9/14

5. Top management commitment6. Every jobmust add value7. Eliminate waste & reduce totalcost8. Promote creativity9. Focus on team work.

BENEFITS OF TQM

TangibleBe

nefi

tsIn

tangi

bleBenefi

ts

Improved productquality Improvedproductivity Reducedquality costsIncreased market andcustomersIncreased profitabilityReduced employee grievances

Improved employee

participation

Improved team workImproved working

relationshipsImproved customer

satisfaction

Improved communicationEnhancement of obinterest

The Consequences of Poor Quality

1. Loss of business2. Liability3. Productivity

4. Repair work, Rework and Scrap costs.5. Return goods, Warranty costs, Inspection costs and lost sales.-


10/14

Note: It is said that 30-35% of gross sales are used by the maximum companies for improving thequality.

CHANGETHROUGH

BUSINESS PROCESSREENGINEERING.

Hammer (1990) defined Business Process Reengineering as "the fundamental rethinking and rad ical

redesigning of business proce ss es to achieve dramat ic improvements in critical, contemporary

measures of performance, such as cost, quality, service, and speed".

This definition comprises four keywords: fundamental, radical, dramatic andprocesses.

Keywo r d1:

Fundamental

Understanding the fundamental operations of business is the first step prior to reengineering. Business

people must ask the most basic questions about their companies and how they operate: "Why do we do

what we do?" and "Why do we do it the way we do it?" Asking these basic questions lead people to

understand the fundamental operations and to think why the old rules and assumptions exist. Often,

these rules and assumptions are inappropriate and obsolete.

Keywo r d2:

Radical

Radical redesigning means disregarding all existing structures and procedures, and inventing completely

new ways of accomplishing work. Reengineering is about business reinvention, begins with no

assumptions and takes nothing for granted.

Keywo r d3:

Dramatic


11/14

Reengineering is not about making marginal improvements or modification but about achieving

dramatic improvements in performance. There are three kinds of companies that undertake

reengineering in general. First are companies that find themselves in deep trouble. They have no choice.

Second are companies that foresee themselves in trouble because of changing economic environment.Third are companies that are in the peak conditions. They see reengineering as a chance to further their

lead over their competitors.

Keywo r d4:

Processes

The final keyword "Process", is the one that gives most corporate managers the greatest difficulty. Most

business people are not process-oriented; they are focused on tasks, on jobs, on people, on structures,

but not on processes.

BPR is done by:

1. Companies at its declining stages.

2. Companies in its stable stages.

3. Companies in their peak stages.

DDiifffferenerenccee bebettwweeneen conconttiinuousnuous iimmprovproveemmentent TQM andand

BBPRPR

Continuous improvement is an approach to improving the competitiveness, effectiveness and

flexibility of a whole organization. It is essentially a way of planning, organizing and understanding

each activity, and depends on each individual at each level. CONTINOUS IMPROVEMENT involves


12/14

placing the customer as the focal point of operations. Its aim is to continuously improve process

performance in order to satisfy customer requirements. At the center of TQM is the concept of the

management of processes, and the existence of internal suppliers and customers within organizations.

BPR is much more radical than CONTINOUS IMPROVEMENT. Quality approaches concentrate

on improving existing processes; process reengineering starts from scratch to create new processes

without the constraints of existing methods, people, technology, management systems, or organizational

structures.

The major differences between Quality Improvement and Process Reengineering approaches are

provided by

in the following table:

Differences Between Quality Improvement (TQM) and Process Reengineering (BPR)

Major Factor

Quality-Improvement

Approach Reengineering

Approach

Senior-

management

involvement

Hands-on initially,and

becoming

Hands-on, active involvement throughoutthe

effort

Intensity of team-

member

involvement

Ongoing involvement onan

as-needed, part-time basis

Ongoing involvement for a specifiedduration

on a full-time basis

Improvement goals Focus onincremental

improvements over a period

Focus on dramatic improvements in ashort

time frame

Implementation

approach

Emphasis on

improving

Emphasis on creating new ways of

doing


13/14

Magnitude of

organizational

change

Limited disruption toexisting

systems and structures

Radical changes to existing systemsand

structures

Bread th of focus Addresses narrowly

defined

Addresses processes that span entire

business

Use of benchmark

data

Used afterprocess

Used on front end, to assist withprocess

Dependence on

information

systems

Information systems usedfor

data collection

Information systems used as a centralenabler

with on-line access


14/14

Quality specialists tend to focus on incremental change and gradual improvement of processes, while proponents of

reengineering often seek radical redesign and drastic improvement of processes.

6976882 a presentation on organizational change model

Documents