change management

Slide 1: 

1 Organizational Change

Slide 2: 

2 Nothing is permanent but “change” -- Heraclitus

Organizational Change : 

© Copyright 2003, Prentice Hall 3 Organizational Change Planned or unplanned transformations in an organization’s structure, technology, and/or people. Process by which organisations move from present state to some desired future state to increase their effectiveness 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 : 

Characteristics of change Vital to avoid stagnation Process not a event Fast especially in present competitive scenario Can be directive or participative Natural or adaptive Incremental or step Interdependent on organisational environment or culture 4

Need for Change : 

Need for Change Globalisation Environmental concern Health consciousness Changes in lifestyle Need for non-traditional employees Knowledge asset of the company 5

External Forces for Change : 

6 External Forces for Change

Internal Forces for Change : 

7 Internal Forces for Change

Levels of change : 

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 organisation, 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-reorganisation, revamping remuneration system,etc also referred as organizational development 8

Different types of changes : 

Different types of changes Organization-wide Versus Subsystem Change Examples of organization-wide change might be a major restructuring, collaboration or “rightsizing.” Usually, organizations must undertake organization-wide change to evolve to a different level in their life cycle, for example, going from a highly reactive, entrepreneurial organization to one that has a more stable and planned development. Experts assert that successful organizational change requires a change in culture – cultural change is another example of organization-wide change. Examples of a change in a subsystem might include addition or removal of a product or service, reorganization of a certain department, or implementation of a new process to deliver products or Services. 9

Slide 10: 

Transformational Versus Incremental Change An example of transformational (or radical, fundamental) change might be changing an organization’s structure and culture from the traditional top-down, hierarchical structure to a large amount of self-directing teams. Another example might be Business Process Re-engineering, which tries to take apart (at least on paper, at first) the major parts and processes of the organization and then put them back together in a more optimal fashion. Transformational change is sometime referred to as quantum change. Examples of incremental change might include continuous improvement as a quality management process or implementation of new computer system to increase efficiencies. 10

Slide 11: 

Remedial Versus Developmental Change Change can be intended to remedy current situations, for example, to improve the poor performance of a product or the entire organization, reduce burnout in the workplace, help the organization to become much more proactive and less reactive, or address large budget deficits. Remedial projects often seem more focused and urgent because they are addressing a current, major problem. It is often easier to determine the success of these projects because the problem is solved or not. Change can also be developmental – to make a successful situation even more successful, for example, expand the amount of customers served, or duplicate successful products or services. Developmental projects can seem more general and vague than remedial, depending on how specific goals are and how important it is for members of the organization to achieve those goals. Some people might have different perceptions of what is a remedial change versus a developmental change. They might see that if developmental changes are not made soon, there will be need for remedial changes. Also, organizations may recognize current remedial issues and then establish a developmental vision to address the issues. 11

Slide 12: 

Unplanned Versus Planned Change Unplanned change usually occurs because of a major, sudden surprise to the organization, which causes its members to respond in a highly reactive and disorganized fashion. Unplanned change might occur when the Chief Executive Officer suddenly leaves the organization, significant public relations problems occur, poor product performance quickly results in loss of customers, or other disruptive situations arise. Planned change occurs when leaders in the organization recognize the need for a major change and proactively organize a plan to accomplish the change. Planned change occurs with successful implementation of a Strategic Plan, plan for reorganization, or other implementation of a change of this magnitude. Note that planned change, even though based on a proactive and well-done plan, often does not occur in a highly organized fashion. Instead, planned change tends to occur in more of a chaotic and disruptive fashion than expected by participants. 12

Targets of Change : 

© Copyright 2003, Prentice Hall 13 Targets of Change

Reactions to Change : 

© Copyright 2003, Prentice Hall 14 Reactions to Change

Resistance to Change : 

© Copyright 2003, Prentice Hall 15 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

Resistance to Change : 

16 Resistance to Change Sources of Resistance to Change Individual Sources Habit Security Economic factors Fear for the unknown Selective information processing Organizational Sources 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 : 

17 Education and Communication Participation Build Support & Commitment Negotiation Manipulation & Cooptation Coercion Tactics for dealing with resistance to Change Selecting people who accept change Overcoming Resistance to Change

Readiness for Change : 

© Copyright 2003, Prentice Hall 18 Readiness for Change

Need/ phases of change –Larry E. Greiner : 

Need/ phases of change –Larry E. Greiner 19

Managing Planned Change : 

© 2005 Prentice Hall Inc. All rights reserved. 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. ChangeMaking things different. Planned ChangeActivities that are intentional and goal oriented. Change AgentsPersons who act as catalysts and assume the responsibility for managing change activities.

Approaches to Managing Organizational Change : 

21 Approaches to Managing Organizational Change Lewin’s three-step Change Model Action Research Organizational Development

Lewin’s Three-Step Change Model : 

Lewin’s Three-Step Change Model Movement Refreezing Unfreezing

Unfreezing the Status Quo : 

© Copyright 2003, Prentice Hall 23 Unfreezing the Status Quo Source: Stephen Robbins Organizational Behavior

Action Research : 

© 2005 Prentice Hall Inc. All rights reserved. Action Research Process Steps: Entry Startup Assessment and Diagnosis Feedback Action planning Intervention Evaluation Action research benefits: Problem-focused rather than solution-centered. Heavy employee involvement reduces resistance to change. A change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicate.

Organizational Development : 

© 2005 Prentice Hall Inc. All rights reserved. Organizational Development OD Values: Respect for people Trust and support Power equalization Confrontation Participation Organizational Development (OD) A collection of planned interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-being.

Organizational Development Techniques : 

© 2005 Prentice Hall Inc. All rights reserved. Organizational Development Techniques Sensitivity Training 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.

Organizational Development Techniques (cont’d) : 

© 2005 Prentice Hall Inc. All rights reserved. Organizational Development Techniques (cont’d) Process Consultation (PC) A consultant gives a client insights into what is going on around the client, within the client, and between the client and other people; identifies processes that need improvement.

Organizational Development Techniques (cont’d) : 

© 2005 Prentice Hall Inc. All rights reserved. 18–28 Organizational Development Techniques (cont’d) Team Building Activities: Goal and priority setting. Developing interpersonal relations. Role analysis to each member’s role and responsibilities. Team process analysis. Team Building High interaction among team members to increase trust and openness.

Contemporary Change Issues for Today’s Managers: Stimulating Innovation (cont’d) : 

© 2005 Prentice Hall Inc. All rights reserved. Contemporary Change Issues for Today’s Managers: Stimulating Innovation (cont’d) Idea ChampionsIndividuals who take an innovation and actively and enthusiastically promote the idea, build support, overcome resistance, and ensure that the idea is implemented.

Creating a Learning Organization : 

© 2005 Prentice Hall Inc. All rights reserved. 18–30 Creating a Learning Organization Characteristics: Holds a shared vision Discards old ways of thinking. Views organization as system of relationships. Communicates openly. Works together to achieve shared vision. Learning Organization An organization that has developed the continuous capacity to adapt and change. Source: Based on P. M. Senge, The Fifth Discipline (New York: Doubleday, 1990).

Creating a Learning Organization : 

© 2005 Prentice Hall Inc. All rights reserved. Creating a Learning Organization Single-Loop Learning Errors are corrected using past routines and present policies. Double-Loop Learning Errors are corrected by modifying the organization’s objectives, policies, and standard routines.

Slide 32: 

32 Is managing change culture bound? Cultural aspects that could influence change:- Belief in the possibility to dominate the environment Time orientation Degree of resistance to change Power-distance Collectivist vs. individualistic cultures

Summary : 

33 Summary Change is indispensable. The way the transition from status quo to the desired state is achieved depends largely on the “approach” adopted by the change agents’ and the internal and external culture within which the organization operates.

A Model of Stress : 

© 2005 Prentice Hall Inc. All rights reserved. A Model of Stress

Managing Stress : 

© 2005 Prentice Hall Inc. All rights reserved. Managing Stress Individual Approaches Implementing time management Increasing physical exercise Relaxation training Expanding social support network

Managing Stress : 

© 2005 Prentice Hall Inc. All rights reserved. Managing Stress Organizational Approaches Improved personnel selection and job placement Training Use of realistic goal setting Redesigning of jobs Increased employee involvement Improved organizational communication Offering employee sabbaticals Establishment of corporate wellness programs

Inverted-U Relationship between Stress and Job Performance : 

© 2005 Prentice Hall Inc. All rights reserved. Inverted-U Relationship between Stress and Job Performance

Reference : 

38 Reference Stephen Robbins – Organizational Behavior