CHANGEAnderson, D and Anderson, L.A. 2001. Beyond change management : advanced strategies for today’s transformational leaders. San Fransisco: Jossey-Bass A Wiley Company

Cameron, E. and Green,M. 2009. Making sense of change management : a complete guide to the models, tools and techniques of organizational change ,2nd ed. London & Philadelpia: Kogan Page

Schein, E.H. 2006. Organization Development. San Fransisco: John Wiley & Sons

Cummings, T.G. & Worley, C.G. 2005. Organization Development and Change, 8 edition. South Western: Thomson Corporation

Jonesch, G.R. 2007. Organizational Theory, Design and Change, 5 edition. Prentice Hall

Requirement for Leadership Skills

Managerial/leadership

technical

core

staf manajer eksekutif

Key Elements of Leadership

Influence

PeopleChange

LeadersFollowers

Organizational Objectives

Leadership

Defining Organizational Change

• Organizational change: the process by which organizations move from their present state to some desired future state to increase their effectiveness (Jonesch, 2007)

Learning Objective

• Describe and discuss the multi-dimensional nature of organizational change

• Analyze change situation in terms of the different type of change experience

• Identify approach for organizational change

The Drivers of ChangeEnvironment

MarketplaceRequirements for Success

Business Imperatives

Organizational Imperatives

Cultural Imperatives

Leader and Employee Behavior

Leader and Employee Mindset

• More cultural diversity• Increase in professionals• Many new entrants with

inadequate skills

• More computers and automation• TQM programs

• Reengineering programs• Dot-com crashes

• Ethics scandals• Interest rate fluctuations• Foreign currency fluctuations• Global competitors• Mergers and consolidations• Growth of specialty retailers

Nature of the work force

Technology

Economic shocks

Competition

Force Examples

Forces for Change

Forces for Change: Environmental Forces

• Put pressure on a firm’s relationships with customers, suppliers, and employees.

• Environmental forces include:– Technology– Market forces– Political and regulatory agencies and laws– Social trends

Forces for Change: Internal Forces

• Arise from events within the company.

• May originate with top executives and managers and travel in a top-down direction.

• May originate with front-line employees or labor unions and travel in a bottom-up direction.

EnvironmentalForces

InternalForces

Need for change Initiate change Implement change

Model of Change Sequence of Events

Monitor global competition, and other factors

Consider plans, goals, company problems, and needs

Evaluate problems and opportunities, define needed changes in technology products, structure, and culture

Facilitate search, creativity, idea champions, venture teams, skunk works and idea incubators

Use force field analysis, tactics for overcoming resistance

Types of Change

• Planned Change--change that is anticipated and allows for advanced preparation

• Dynamic Change--change that is ongoing or happens so quickly that the impact on the organization cannot be anticipated and specific preparations cannot be made

Types of Organizational Change

• Anticipatory changes: Planned changes based on expected situations

• Reactive changes: Changes made in response to unexpected situations

• Incremental changes: Subsystem adjustments required to keep the organization on course

• Strategic changes: Altering the overall shape or direction of the organization

Types of Organizational Change

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Incremental Strategic

Anticipatory Tuning Re-Orientation

Reactive Adaptation Re-Creation

• Tuning• The most common, least intense, and least risky type of

change• Also known as preventive maintenance and kaizen

(continuous improvement)• Key is to actively anticipate and avoid problems rather than

waiting for something to go wrong

• Adaptation• Incremental changes that are in reaction to external

problems, events, or pressures

• Reorientation• Change that is anticipatory and strategic in scope and

causes the organization to be significantly redirected• Also called “frame bending” (Nadler and Tushman)

• Re-Creation• Intense, risky, and decisive change that reinvents the

organization• Also called “frame breaking” (Nadler and Tushman)

Basic Approaches to Organization Change

1. Structural2. Technical3. Behavioral

Developing strategy includes planning activities to resolve difficulties and build on strengths.

Structural Approach to Change

• Changes that relate elements of organization to one another.

• Includes removing or adding layers to hierarchy.

• Downsizing associated with restructuring.

• Changes can involve decentralization and centralization.

Technical Approach to Change

• Changes in machinery, methods, automation, and job design.

• Changes help companies become more productive.

Behavioral Approach to Change

Emphasizes better utilization of human resources by improving:

• Morale.• Motivation.• Commitment of members.

OD traditionally associated with behavioral strategies.

ODPractitioner

BehavioralStrategy

StructureStrategy

TechnologicalStrategy

Change Attitude and Values

New Behaviors

Change Structures and Design

New Relationships

Change Production and Methods

New Processes

Improved PErformance