Download - Organizational change
Organizational Change
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Nothing is permanent but “change” -
Heraclitus
Organizational Change Planned or unplanned transformations in an organization’s
structure, technology, and/or people. First-Order Change: that is continuous in nature and
involves no major shifts in the way an organization operates.
Second-Order Change: Radical change; major shifts involving many different levels of the organization and many different aspects of business.
Characteristics of change Vital to avoid stagnationProcess not a event Fast especially in present competitive scenario Can be directive or participative Natural or adaptiveIncremental or step Interdependent on organizational environment or culture
Need for ChangeNeed for Change Globalization Environmental concern Health consciousness Changes in lifestyle Need for non-traditional employees Knowledge asset of the company
External Forces for Change Government Force
Technology Faster ,cheaper & more mobile computer
Economic factor Fluctuating interest rate, declining productivity, uncertainties due to inflation or deflation, oil prices etc.
Competition Global competition, mergers & acquisitions, growth of e commerce
Social Trends Internet chat room, retirement of body boomers
Customers Changing need & preference
Internal Forces for ChangeNature of workforce More cultural diversity; aging population;
many new entrant with inadequate skill
System dynamics Technology, dominant group, formal or informal relationship
Inadequacy of admin processes Revision of org goal & objective; rules ;regulations, procedures.
Individual/group speculations Positive factor need, ambitions, potentialities, capabilities, career growth etc.
Structure focused change Downzing,rightsizing,job redesign
Technological changes Changes in equipment, work process, sequence, information processing system, automation
Resources constraints Depletion, non-availability
Levels of change Individual level Development changes such as- job assignment Physical movement to other location Change in the maturity of a person occurring over a period of time Group level Important because most of the activities are on group basis Change can affect work flow, job design, social organization, status, communication pattern Informal group must be considered-major barrier Formal group- in the form of trade unions Organizational level Major programs that affect both individual and group Made by senior mgt and are seldom implemented by single manager Long term and requires considerable planning- reorganization, revamping remuneration
system,etc also Referred as organizational development
Targets of Change
Organizational structure Technology People
Resistance to Change The tendency for employees to be unwilling to go along with organizational changes, either because of individual fears of the unknown, or organizational impediments
Individual barriers to change Organizational barriers to change Readiness for change Overcoming resistance to change
Readiness for change
Readiness = D (Dissatisfaction) x V (Vision) x F (First steps) > R (Resistance)
D
V
F
Is there enough dissatisfaction with the current state? What is the gap between the current reality and the envisioned future?
Is there a sense of compelling vision of a highly desirable future state? To what degree is it shared? To what degree are individuals committed to the vision?
Are the first steps for making the change 'doable'?
Sources of Resistance to Change Individual Sources Organizational Sources
Habit Security Economic factors Fear for the unknown Selective information
processing
Structural inertia Limited focus to change Group inertia Threat to expertise Threat to established power
relationships Threat to established allocation
of resources
Overcoming Resistance to Change Education and Communication Participation Build Support & Commitment Negotiation Manipulation & Cooptation Coercion Selecting people who accept change Overcoming Resistance to Change
• Provide appropriate training in new skills and coaching in new values and behaviors
• Encourage self-management
• Give more feedback than usual to ensure people always know where they stand
• Allow for resistance. Help people let go of the “old”
• Measure results, step back and take a look at what is going on. Keep asking “Is the change working the way we want it to?”
• Encourage people to think and act creatively
• Look for any “opportunity” created by the change
• Allow for withdrawal and return of people who are temporarily resistant
Tactics to Minimize Resistance
• Explain why
• Identify the benefits• Invite and answer questions
• Solicit participation, and, if possible, early involvement • (“first-draft / straw model” reviews,
membership in planning/implementation teams, etc.)
• Avoid surprises
• Set standards and clear targets
• Inform/involve informal leaders• Recognize and reward efforts• Over communicate
Managing Planned Change Managing Planned Change
Change (Making things different.)
Planned Change (Activities that are intentional and
goal oriented)
Change Agents (Persons who act as
catalysts and assume the responsibility for managing change
activities)
Goals of Planned ChangeImproving the ability of the
organization to adapt to changes in its environment.
Changing the behavior of individuals and groups in the organization
Approaches to Managing Organizational Change Lewin’s three-step Change Model Action Research Organizational Development
Lewin’s Three-Step Change Model
Unfreezing Movement Refreezing
UNFREEZINGCreating motivation and readiness to change
Techniques to reinforce unfreezing . . .
• Acknowledge feelings and empathise
• Give people as much information about the change as
possible
• Say what will not change
• Treat the past with respect
• Help others to see the gap
CHANGE & MOVEMENTGuiding through the transition
Techniques to reinforce movement . . .
• Provide focus and direction
• Strengthen peoples' connections to one another
• Open up two way communications
• Provide the individual with a specific role in the
change process
• Provide leadership and tenacity
RE-FREEZINGIntegrating the new point of view
Techniques to reinforce re-freezing:
• (before reverting to the old point of view)
• Ensure that individuals and leaders are
reinforced for new behaviour
• Implement quick results and highlight successes
• Build feedback mechanisms
• Celebrate!
Action Research A change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicate.
Process StepsEntry StartupAssessment and Diagnosis Feedback Action planning Intervention Evaluation
Action Research Action research benefits;Problem-focused rather than solution-centered. Heavy employee involvement reduces resistance to
change.
Organizational Development Organizational Development (OD) A collection of planned interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-being.
OD Values: Respect for people Trust and support Power equalization Confrontation Participation
Organizational Development Techniques Sensitivity Training groups (T-groups) that seek to change behavior
through unstructured group interaction. Provides increased awareness of others and self. Increases empathy with others, improves listening skills,
greater openness, and increased tolerance for others.
Creating a Learning Organization Learning Organization An organization that has developed the continuous capacity to adapt and change.
Characteristics:Holds a shared vision Discards old ways of thinking. Views organization as system of relationships. Communicates openly. Works together to achieve shared vision.
Organizational Culture and the Environment
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Organizational Culture
Organizational Culture is a system of shared beliefs and values that develop within an organization and guide the behavior of its members
“The way we do things around here.” Basic assumptions, values, norms
Implications: Culture is a perception. Culture is shared. Culture is descriptive.
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Organizational Stakeholders
Dimensions of Org Culture
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Exhibit 3.2
Keeping Culture Alive Sources of Organizational Culture
The organization’s founder Vision and mission
Past practices of the organization The way things have been done
The behavior of top management Continuation of the Organizational Culture
Recruitment of like-minded employees who “fit”Socialization of new employees to help them adapt to the
culture
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Fullfillment-orientated
Incubator
Project-Oriented
Guided Missile
FamilyPower-orientedculture
Eiffel-TowerRule-orientedculture
Equity
PersonEmphasis
Hierarchy
TaskEmphasis
Family culture Strong emphasis on hierarchy and orientation to the personFamily-type environment that is power oriented and headed
by a leader who is regarded as a caring parentManagement looks after employees, and tries to ensure that
they are treated well and have continued employmentMay catalyze and multiply the energies of the personnel or
end up supporting a leader who is ineffective and drains their energies and loyalties
Eiffel Tower Strong emphasis on hierarchy and orientation to the
taskJobs are well defined, and everything is coordinated
from the topThis culture is narrow at the top, and broad at the
baseRelationships are specific, and status remains with the job.Managers seldom create off-the-job relationships with their people,
because they believe this could affect their rational judgmentThis culture operates very much like a formal hierarchy—
impersonal and efficient and loyalties
Guided Missile Strong emphasis on equality in the workplace and
orientation to the taskThis culture is oriented to workWork typically is undertaken by teams or project
groupsIn projects, formal hierarchical considerations are given low
priority, and individual expertise is of greatest importanceAll team members are equal (or at least potentially equalAll teams treat each other with respect, because they may need the
other for assistanceEgalitarian and task-driven organizational culture
Incubator Strong emphasis on equality and personal
orientationBased on the premise that organizations serve
as incubators for the self-expression and self-fulfillment of their members
Little formal structureParticipants in an incubator culture are there primarily to
perform roles such as confirming, criticizing, developing, finding resources for, or helping to complete the development of an innovative product or service
Table 6–3Summary Characteristics of the Four Corporate Culture
Relationshipsbetween employees
Four Corporate Cultures
Diffuse relation-ships to organic whole to which one is bonded
Specific role inmechanical system ofrequired interaction
Specific tasks in cybernetic system targeted on shared objectives
Diffuse, spontaneous relationships growing out of shared creative process
Attitude towardauthority
Status is ascribed to parent figures who are close and powerful
Status is ascribed to superior roles that are distant yet powerful
Status is achieved by project group members who contribute to targeted goal
Status is achieved by Individuals Exemplifying creativity and growth
Corporate CultureCharacteristic Family Eiffel Tower Guided Missile Incubator
Ways of thinking and learning
Intuitive, holistic, lateral and error correcting
Logical, analytical, vertical, and rationally efficient
Problem centered, professional, practical, cross disciplinary
Process oriented, creative, ad hoc, inspirational
Table 6–3Summary Characteristics of the Four Corporate Culture
Attitudes toward people
Four Corporate Cultures
Family members Human resources Specialists and experts
Co-creators
Ways of changing “Father” changes Course
Change rules and procedures
Shift aim as target moves
Improvise and attune
Corporate CultureCharacteristic Family Eiffel Tower Guided Missile Incubator
Ways of motivating and rewarding
Intrinsic satisfaction in being loved and respected
Promotion to greater position, larger role
Pay or credit for performance and problems solved
Participation in the process of creating new realities
Management by subjectives
Management by job description
Management by objectives
Management by enthusiasm
Table 6–3Summary Characteristics of the Four Corporate Culture
Four Corporate Cultures
Corporate CultureCharacteristic Family Eiffel Tower Guided Missile Incubator
Criticism and conflict resolution
Turn other cheek, save other’s face, do not lose power game
Criticism is accusation of irrationalism unless there are procedures to arbitrate conflicts
Constructive task related only, then admit error and correct fast
Improve creative idea, not negate it
Source: Adapted from Fons Trompenaars and Charles Hampden-Turner, Riding the Waves of Culture: Understanding Diversity in Global Business, 2nd ed. (Burr Ridge, IL: Irwin, 1998), p. 183.
Strong versus Weak CulturesStrong Cultures
Are cultures in which key values are deeply held and widely held.
Have a strong influence on organizational members.Factors Influencing the Strength of Culture
Size of the organizationAge of the organizationRate of employee turnoverStrength of the original cultureClarity of cultural values and beliefs
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How Employees Learn Culture
Stories - a narrative of significant events or people
Rituals - repetitive sequences of activities
Material symbols – essential in creating an
organization’s personality
Language - unique terminology or jargon
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How Culture Affects Managers? Plan - degree of risk that plans should containOrganize - degree of autonomy given to employeesLead - degree of concern for employees, style of
leadershipControl - what criteria to use when evaluating
performance
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How do we make a working environment more conducive?
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Besides Organizational Culture…
ManagerialDiscretion
Organization’s EnvironmentOrganizational Culture
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The External Environment
Customers
Competitors
Suppliers
PublicPressureGroups
TheOrganization
How do we make a working environment more conducive? Employee empowerment, Employee motivation, or Employee satisfaction, Employee engagement Employee engagement must be a strategy that focusesEmployee engagement must focus on business results
& measure the outcomes of their performance.
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Continue…An effective recognition and reward systemFrequent feedbackShared values and guiding principlePositive relationships with coworkersDemonstrated respect, trust, and emotional
intelligence on the part of the employee's direct supervisor
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