Slide 1:“Managing, and Leading Organizational Change” By: Sheeba Rehman Welcome to . . .


Slide 2:What are your reactions when you hear the word “change?” Negative perceptions…. Positive perceptions…. Your Perceptions of Change


Types of Organizational Change :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.


Forces of Change :Forces of Change External Forces Market Place Govt Laws and Regulations Technology Labor market Economic Change Internal Forces Changes in Organisational Strategies Workforce change New Equipment Employee Attitude


Slide 5:A Journey Through Change: Stability Learning Acceptance, Commitment Looking Forward Looking Back Comfort and control Fear, Anger and Resistance Chaos Enquiry, Experimentation and Discovery


Individual Reactions to Change :Individual Reactions to Change How People Respond to Changes They Like? Three-stage process Unrealistic optimism Reality shock Constructive direction


Individual Reactions to Change (cont’d) :Individual Reactions to Change (cont’d) How People Respond to Changes They Fear and Dislike? Stages Getting off on the wrong track Laughing it off Growing self-doubt Destructive direction


Change: Organizational and Individual Perspectives (cont’d) :Change: Organizational and Individual Perspectives (cont’d) 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.


Change: Organizational and Individual Perspectives (cont’d) :Re-Orientation 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 and risky decisive change that reinvents the organization. Also called “frame breaking” (Nadler and Tushman). Change: Organizational and Individual Perspectives (cont’d)


Why Do Employees Resist Change? :Why Do Employees Resist Change? Surprise Unannounced significant changes threaten employees’ sense of balance in the workplace. Inertia Employees have a desire to maintain a safe, secure, and predictable status quo. Misunderstanding and lack of skills Without introductory or remedial training, change may be perceived negatively. Poor Timing Other events can conspire to create resentment about a particular change.


Why Do Employees Resist Change? (cont’d) :Why Do Employees Resist Change? (cont’d) Emotional Side Effects Forced acceptance of change can create a sense of powerlessness, anger, and passive resistance to change. Lack of Trust Promises of improvement mean nothing if employees do not trust management. Fear of Failure Employees are intimidated by change and doubt their abilities to meet new challenges. Personality Conflicts Managers who are disliked by their managers are poor conduits for change.


Why Do Employees Resist Change? (cont’d) :Threat to Job Status/Security Employees worry that any change may threaten their job or security. Breakup of Work Group Changes can tear apart established on-the-job social relationships. Competing Commitments Change can disrupt employees in their pursuit of other goals. Why Do Employees Resist Change? (cont’d)


Overcoming Resistance to Change :Overcoming Resistance to Change Strategies for Overcoming Resistance to Change Education and communication Participation and involvement Facilitation and support Negotiation and agreement Manipulation and co-optation Explicit and implicit coercion


Slide 14:LEADER ACTION: Stability Comfort and control Looking Back Looking Forward Chaos Fear,Anger and Resistance Enquiry, Experimentation and Discovery Learning, Acceptance & Commitment Create a felt need of change Stabilize and Sustain the change Introduce the change Revise and finalize the change plan 1 2 3 4


Making Change Happen :Making Change Happen Two Approaches to Organization Change Organization Development (OD) Formal top-down approach Grassroots Change An unofficial and informal bottom-up approach


Planned Change Through Organization Development (OD) :Planned Change Through Organization Development (OD) Organization development (OD) Planned change programs intended to help people and organizations function more effectively. Applying behavioral science principles, methods, and theories to create and cope with change. OD creates fundamental change in the organization, as opposed to fixing a problem or improving a procedure. OD programs generally are facilitated by hired consultants,


Planned Change Through Organization Development (OD) (cont’d) :Planned Change Through Organization Development (OD) (cont’d) Objectives of OD Deepen the sense of organizational purpose. Strengthen interpersonal trust. Encourage problem solving rather than avoidance. Develop a satisfying work experience. Supplement formal authority with knowledge and skill-based authority. Increase personal responsibility for planning and implementing. Encourage willingness to change.


Planned Change Through Organization Development (OD) (cont’d) :Planned Change Through Organization Development (OD) (cont’d) The OD Process (Kurt Lewin) Unfreezing, changing, and refreezing social systems Unfreezing: neutralizing resistance by preparing people for change. Changing: implementing the planned change Refreezing: systematically following a change program for lasting results.


Unofficial and Informal Grassroots Change :Unofficial and Informal Grassroots Change Grassroots Change Change that is spontaneous, informal, experimental, and driven from within. Tempered Radicals People who quietly try to change the dominant organizational culture in line with their convictions. Guidelines for tempered radicals Think small for big results. Be authentic. Translate. Don’t go it alone.


Slide 20:Managing Change Structure Technology People Work specialization,Departmentalization, Chain of Command Span of Control, Formalization,Job Redesign Attitude, Expectations, Perception and Behavior Work Process, Methods and Equipments


Slide 21: Innovation CREATIVITY


Stimulating Innovation :Stimulating Innovation Creativity The ability to combine ideas in a unique way or to make an unusual association. Innovation Turning the outcomes of the creation process into useful products, services, or work methods.


System View of Innovation :System View of Innovation Transformation Outputs Creative Individuals, Groups and Organizations Creative Environment, Process and Situation Innovative Products, Work Methods Inputs


Innovation Variables :Innovation Variables Innovative Variables Structural Variables Organic structure Communication Abundant resources High interunit stimulate Work and network support Cultural variables Acceptance of ambiguity Positive feedback Low external control Tolerance of risks Tolerance of conflicts Focus on ends Open system focus HR Variables High commitment to T & D High job security Creative people


Structural Variables :Structural Variables Adopt an organic structure Make available plentiful resources Engage in frequent inherent communication Minimize extreme time pressures on creative activities Provide explicit support for creativity


Cultural Variables :Cultural Variables Accept Ambiguity, have low external control Tolerant impractical Tolerant risk taking Tolerate conflict Focus on ends rather than means Develop an open system focus Provide positive feedback


Human Resources Variables :Human Resources Variables Actively promote T & D to keep employee’s skills updated Offer high job security to encourage risk taking Encourage individual to be “Champion” to change