organizational renewal

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Ch-2 Organizational Renewal, The Challenge of change:

Ch-2 Organizational Renewal, The Challenge of change By: Radhika Gandhi

Points to be covered:

Points to be covered Challenges of change Organizational Renewal The Systems Approach to change Socio technical System Future Shock and Change Organizational Transformation and Development OD: Planned change Process

Challenges of Change :

Challenges of Change Pressure for change : Market, product, and competition Downsizing, reengineering, flattening structures, and going global

Organizational Renewal:

Organizational Renewal Make adaptive changes to environment The only constant is change Focus on changing systems and system-wide impact Constant Change: Increasing rate of change Impact of future shock Organizations need capacity to adapt to changing environment

Adapting to change:

Adapting to change Organizational renewal important to survival Defined as ongoing process of building innovation and adaptation

Key Factors in Renewal:

Key Factors in Renewal Informed opportunism Direction and empowerment Friendly facts A different mirror Teamwork and trust Stability in motion Attitudes and attention Causes and commitment

Approaches to change:

Approaches to change A model of adaptive orientation is based on two dimensions: Adaptive orientation Environmental stability

Slide 8:

Renewing Transformational Sluggish Thermostat Reactive Satisficing Hyper turbulent Low High Stable Environmental Stability Adaptive Orientation Model of Adaptive Orientation

Slide 9:

Sluggish-Thermostat Management Stable Environment, Low Adaptation Low risk, high degree of structure and control Stable goals and highly centralized structure More managerial levels Satisficing Management Stable environment, high adaptation Adequate and average Planning and decision-making concentrated at top

Slide 10:

Reactive Management Dynamic environment, low adaptation Reacting after conditions change Short-term, crisis type of adaptation Replacement of key people and hasty reorganization Renewing/Transformation Management Dynamic environment, high adaptation Deal with future conditions before conditions occur Faster developing new ideas and more participative

The Systems Approach:

The Systems Approach Horizontal corporation breaks company into key processes Creates teams from different departments to run them Organization as a System System is set of interrelated parts Unified by design to achieve purpose or goal

Basic Qualities of Systems:

Basic Qualities of Systems Designed to accomplish objectives Established arrangement Interrelationships exist among elements Process more vital than basic elements Organization more important than elements System consists of inputs, processes, outputs

Open Systems:

Open Systems In continual interaction with environment Continually receives feedback from environment

Slide 14:

Feedback from Environment Employees Departments & Managers Customers Investors Government Regulation Resource Inputs Information Equipment Facilities Materials Money People Technology Transformation Process Organization Human Resource Workplace Actions Physical Resource Outputs Products Goods Services The Organization as an Open System

The Sociotechnical System :

The Sociotechnical System Coordinated human and technical activities consists of: Goals and values subsystem Technical subsystem Structural subsystem Psychosocial subsystem (culture) Managerial subsystem

Slide 16:

The Sociotechnical System uses the following approaches: Organize around process, not task Flatten the Hierarchy Use teams to manage everything Let customers drive performance Reward team performance

Slide 17:

Goals and Values subsystem Structural subsystem Psychosocial subsystem Technical subsystem Managerial subsystem Environmental suprasystem Input, Output flow of Material, Energy, and Information The Sociotechnical System

High Performance Systems :

High Performance Systems Occur by design—not by chance Key variables are: Business situation Strategy Design elements Culture Results

The Contingency Approach- no one best way :

The Contingency Approach- no one best way Considers organization and environment Identifies “if-then” relationships Suggests change directions

Future Shock and Change :

Future Shock and Change Too much change in too short a time Inability to adapt to accelerating rates of change Management reaction to change strained Managers must be adaptable and flexible

Organizational Transformation and Development:

Organizational Transformation and Development Changing organization’s form or appearance OT a revolution Transforms framework of organization Unplanned changes in response to pressures Change occurs in short time frame

OD - The Planned Change Process :

OD - The Planned Change Process OD like an evolution Planned changes on large scale Longer time frame Gradual implementation Modifies total organization or major parts OD Focuses On: Individual effectiveness Team effectiveness Organization effectiveness

Focus on Individual Effectiveness :

Focus on Individual Effectiveness The goals are improved: Managerial skills Technical skills Interpersonal competence

Focus on Team Effectiveness  :

Focus on Team Effectiveness Improving problem-solving Working through conflicts Group effectiveness Focus on task activities and team process: Task activities—what the team does Team process—how the team works Process observations examine: Content—the task of the group Process—the way the group functions

Focus on Organization Effectiveness :

Focus on Organization Effectiveness Focus on total organization system. Improve effectiveness by changes in: Structure Technology Management

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