organisational change and development(1)
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ORGANISATIONAL CHANGE
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Courtesy National Board of Antiquities, Finland
Continuous Change at Nokia
Nokia has continually adapted to its changingenvironment. The Finnish company began as a pulp
and paper mill in 1865, then moved into rubber, cable
wiring, and computer monitors. In the 1980s, Nokia
executives sensed an emerging market for wireless
communication. Today, Nokia is a world leader in
cellular telephones.
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Focus
Change new state of things, different from old state of things
Can be viewed as an opportunity or as a threat
Change
First order change
Second order change
(making moderate adjustments)
(reinvent, reengineer, rewrite)
OD consultants are experts in organizational change
What needs to be changed and how to go about it
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When Will It Occur?
Benefit of
making
change
Comparedto
Cost ofmaking
change
Changeis made
Change is
not made
Amount of dissatisfaction
with current conditions
Availability of a
desirable alternative
Existence of a plan for
achieving a desirablealternative
If benefits exceed costs
If costs exceed benefits
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Forces for Change
Force Examples
Nature of the workforce More cultural diversity
Aging population
Many new entrants with inadequate skills
Technology Faster, cheaper, and more mobile computers
On-line music sharingDeciphering of the human genetic code
Economic shocks Rise and fall of dot-com stocks
200002 stock market collapse
Record low interest rates
Competition Global competitorsMergers and consolidations
Growth of e-commerce
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186
Forces for Change
Force Examples
World politics IraqU.S. war
Opening of markets in China
War on terrorism following 9/11/01
Decentralization
Downsizing
Emphasis on quality
Mergers , acquisition
Restructuring
International expansion
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First order change
Fundamental nature of the organization remains the
same
Transactional, evolutionary, continuous change
Structure, Systems Management practices
Organizational Climate(peoples perception and
attitude )
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Second order Change
Nature of the organization is fundamentally altered Transformational, radical or discontinuous change
Mission and strategy
Leadership
Organisation culture(values and beliefs)
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Managing Planned Change
Goals of Planned
Change:
Improving the ability of
the organization to adapt
to changes in its
environment.
Changing the behavior of
individuals and groups in
the organization.
Goals of Planned
Change:
Improving the ability of
the organization to adapt
to changes in its
environment.
Changing the behavior of
individuals and groups inthe organization.
ChangeMaking things different.
Planned Change
Activities that are
intentional and goaloriented.
Change Agents
Persons who act as catalystsand assume theresponsibility for managingchange activities.
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Resistance to Change
Forms of Resistance to Change Overt and immediate
Voicing complaints, engaging in job actions
Implicit and deferred
Loss of employee loyalty and motivation, increased
errors or mistakes, increased absenteeism
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Sources of Individual Resistance to Change
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Sources of Organizational Resistance to
Change
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MinimizingMinimizing
ResistanceResistance
toto ChangeChange
CommunicationCommunication
TrainingTraining
EmployeeEmployeeInvolvementInvolvement
StressStressManagementManagement
NegotiationNegotiation
CoercionCoercion
Minimizing Resistance to Change
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Lewins Three-Step Change Model
UnfreezingChange efforts to overcomethe pressures of bothindividual resistance andgroup conformity.
RefreezingStabilizing a changeintervention by balancingdriving and restraining forces.
Driving ForcesForces that direct behavior
away from the status quo.
Restraining ForcesForces that hinder movement
from the existing equilibrium.
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Lewins Three-Step Change Model
KURT LEWIN
Change is a three-stage process
Stage 1 - Unfreezing the old behavior/ situationStage 2 - Moving to a new level of behaviors
Stage 3 - Refreezing the behavior at the new level
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Unfreezing the Status Quo
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Desired
Conditions
Current
Conditions
Before
Change
After
Change
DrivingForces
RestrainingForces
Force Field Analysis
During
Change
DrivingForces
RestrainingForces
Driving
Forces
RestrainingForces
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New manufacturing technique to be introduced
Assign a score to each force, from 1 (weak) to 5
(strong).
Identify the Rfs and Dfs
Reduce the RFs
Increase the Dfs
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Refreezing the Desired Conditions
Creating organizational systems and team dynamics
to reinforce desired changes
alter rewards to reinforce new behaviours
new information systems guide new behaviours
recalibrate and introduce feedback systems to focus onnew priorities
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Kotters Eight-Step Plan for Implementing Change
1. Establish a sense of urgency by creating a compelling reason forwhy change is needed.
2. Form a coalition with enough power to lead the change.
3. Create a new vision to direct the change and strategies for achieving
the vision.
4. Communicate the vision throughout the organization.
5. Empower others to act on the vision by removing barriers to change
and encouraging risk taking and creative problem solving.
6. Plan for, create, and reward short-term wins that move the
organization toward the new vision.
7. Consolidate improvements, reassess changes, and make necessary
adjustments in the new programs.
8. Reinforce the changes by demonstrating the relationship between
new behaviors and organizational success.
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Action Research
Process Steps:
1. Diagnosis
2. Analysis3. Feedback
4. Action
5. Evaluation
Process Steps:
1. Diagnosis
2. Analysis
3. Feedback
4. Action
5. Evaluation
Action research benefits:
Problem-focused rather
than solution-centered.Heavy employee
involvement reduces
resistance to change.
Action research benefits:
Problem-focused rather
than solution-centered.
Heavy employee
involvement reduces
resistance to change.
Action Research
A change process based on systematic collection ofdata and then selection of a change action based onwhat the analyzed data indicate.
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Researcher enters a problem situation, diagnoses it and make
recommendations for remedial treatment (recommendationsmay not be put into effect by client group)
People who are to take action are involved in the entire process
from the beginning(involvement increases the
likelihood of carrying out the actions once decided upon)
Researcher keeps the systematic, extensive record of what he/she did and what effects it had (may encounter situations too
divergent from one another, which may not permit
generalizations)
It is controlled research on the relative effectiveness of various
techniques (is difficult to do when client wants
Diagnostic
ParticipantParticipant
Empirical
ExperimentalExperimental
Action ResearchData Collection
Feedback of data to client system members
Action planning based on the dataTaking action
Evaluating results of actions
Types
Diagnostic
Participant
Empirical
Experimental
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Application of OB-----------OD
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Poor
morale
Unclear
goals
Poorquality
Poor
team
perform
ance
Intergroup conflictOrganization
Poorlydesignedtasks
Inappropriateleadershipstyle
Interpersonal conflicts
Low productivity
Poor alignment to organizations strategy
Start Point
Inappr
opria
teor
ganizatio
nstru
cture
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Definition(s) of OD
Organization Development is an effort (1) planned, (2) organization-wide,
and (3) managed from top, to (4) increase organization effectiveness and healththrough (5) planned interventions in organizations processes, using behavioral-
science knowledge. Beckhard, 1969
Organization Development is a process of planned change change of an
organizations culture from one which avoids an examination of social processes
(especially decision making, planning and communication) to one whichinstitutionalizes and legitimizes this examination. Burke & Hornstein, 1972
Organization Development is a systematic application of behavioral science
knowledge to the planned development and reinforcement of organizational
strategies, structures, and processes for improving an organizations effectiveness.
Cummings & Worley, 1993
Organization development is a planned process of change in an organizations
culture through the utilization of behavioral science technologies, research, and
theory. Burke, 1994
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Organizational Development
OD Values:
1. Respect for people
2. Trust and support3. Power equalization
4. Confrontation
5. Participation
OD Values:
1. Respect for people
2. Trust and support
3. Power equalization
4. Confrontation
5. Participation
Organizational Development (OD)A collection of planned interventions, built onhumanistic-democratic values, that seeks to improveorganizational effectiveness and employee well-being.
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Organizational Development Techniques
Sensitivity TrainingTraining groups (T-groups) thatseek to change behavior throughunstructured group interaction.
Provides increased awareness ofothers and self.
Increases empathy with others,improves listening skills, greateropeness, and increased tolerancefor others.
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Organizational Development Techniques
(contd)
Survey Feedback Approach
The use of questionnaires to identify discrepanciesamong member perceptions; discussion follows
and remedies are suggested.
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Organizational Development Techniques
(contd)
Process Consultation (PC)
A consultant gives a client insights into what is goingon around the client, within the client, and between the
client and other people; identifies processes that needimprovement.
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Organizational Development Techniques
(contd)
Team Building Activities:
Goal and priority setting.
Developing interpersonal relations.
Role analysis to each members role and
responsibilities.
Team process analysis.
Team Building Activities:
Goal and priority setting.
Developing interpersonal relations.
Role analysis to each members role and
responsibilities.
Team process analysis.
Team Building
High interaction among team members toincrease trust and openness.
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Organizational Development Techniques
(contd)
Intergroup Problem Solving:Intergroup Problem Solving:
Groups independently develop lists of perceptions.Groups independently develop lists of perceptions.
Share and discuss lists.Share and discuss lists.
Look for causes of misperceptions.Look for causes of misperceptions.
Work to develop integrative solutions.Work to develop integrative solutions.
Intergroup Problem Solving:Intergroup Problem Solving:
Groups independently develop lists of perceptions.Groups independently develop lists of perceptions.
Share and discuss lists.Share and discuss lists.
Look for causes of misperceptions.Look for causes of misperceptions.
Work to develop integrative solutions.Work to develop integrative solutions.
Intergroup Development
OD efforts to change the attitudes, stereotypes, andperceptions that groups have of each other.
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Organizational Development Techniques
(contd)
Appreciative Inquiry (AI):
Discovery: recalling the strengths of the organization.
Dreaming: speculation on the future of the organization.
Design: finding a common vision.
Destiny: deciding how to fulfill the dream.
Appreciative Inquiry (AI):
Discovery: recalling the strengths of the organization.
Dreaming: speculation on the future of the organization.
Design: finding a common vision.
Destiny: deciding how to fulfill the dream.
Appreciative Inquiry
Seeks to identify the unique qualities and specialstrengths of an organization, which can then be built
on to improve performance.