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Organizational Change
Why should we study it?
BECAUSE
Change is inevitable/ necessary
It is difficult to implement
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Change is continuous
Good isnt good enough.
Focus is on constantly reducing the variabilityin the organizational processes to produce
more uniform products and services. Lowers costs and raises quality.
Increases customer satisfaction.
Organizational impact Additional stress on employees to constantly excel.
Requires constant change in organization.
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Challenges of change
How are changes in technology affecting
the work lives of employees?
What can managers do to help theirorganizations become more innovative?
How do managers create organizations
that continually learn and adapt?
Is managing change culture-bound?
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Organizational Change
Organization
Organized group of people
Change
Doing things differently
Planned Change
Activities that are intentional and goal oriented.
Change AgentsPersons who act as catalysts and assume the
responsibility for managing change activities.
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Why change?- forces of change
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, sharing, Deciphering of the
human genetic code.
Economic shocks: Rise and fall of dot-com stocks,
200002 stock market collapse, Record low interestrates
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Why change?- forces of change
Competition:Global competitors, Mergers and
consolidations, Growth of e-commerce
Social trends: Internet chat rooms, Retirement of Baby
Boomers, Rise in discount, and big box retailers
World politics:IraqU.S. war, Opening of markets in
China, War on terrorism following 9/11/01.
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Consequences of not changing
Become out dated
Vanish from the competitive world
Loss making
Closure
The only thing constant in business is
CHANGE
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Resistance to Change
FORMS OF RESISTANCE
Overt and immediate
Voicing complaints, engaging in job actionsImplicit and deferred
Loss of employee loyalty and motivation,increased errors or mistakes, increased
absenteeism
Individual resistance
Organizational resistance
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Sources ofIndividual Resistance to
Change
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Reasons for Organizational Resistance to Change
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How to overcome resistance to Change
Education and communication
Participation
Facilitation and support
Negotiation
Manipulation and cooptationCoercion
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The Politics of Change
Impetus for change is likely to come from outsidechange agents.
Internal change agents are most threatened by their
loss of status in the organization.
Long-time power holders tend to implement onlyincremental change.
The outcomes of power struggles in the organizationwill determine the speed and quality of change.
Change initiatives threaten the insiders who benefitedby the heritage
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Steps in organizational change
Initiation-vocalizing the need for change
Motivation: creating a need
Diagnosis: discovery of problem areas
Data collection: ascertain the reality
Deliberation: evaluate alternatives
Action proposal
Implementation
Stabilization
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Lewin's Three-Step Change
Model
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Lewin's Three-Step Change Model
Unfreezing:
Change efforts to overcome the pressures of
both individual resistance and group conformity.
Movement:
From old to new from worst to best
Refreezing:
Stabilizing a change intervention by balancing
driving and restraining forces.
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Change involve friction with--
Driving
Forces:
Forces thatdirect behavior
away from the
status quo.
RestrainingForces:
Forces that
hinder
movement
from theexisting
equilibrium.
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Action ResearchA change process based on systematic collection of data
and then selection of a change action based on what the
analyzed data indicate.
Steps involved:
Diagnosis
Analysis
Feedback
Action
Evaluation
Action researchbenefits:
Problem-focusedrather than solution-centered.
Heavy employeeinvolvementreduces resistanceto change.
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Organizational Development
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
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Some OD techniques
Sensitivity Training
Training groups (T-groups) that seek to change behaviorthrough unstructured group interaction.
Provides increased awareness of others and self.
Increases empathy with others, improves listening skills,greater openess, and increased tolerance for others.
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Survey feedback
Survey Feedback Approach
The use of questionnaires to identify
discrepancies among member perceptions;
discussion follows and remedies aresuggested.
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OD techniques
Process Consultation
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.
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OD techniques
Team Building High interaction among team
members to increase trust andopenness.
Team Building Activities:
Goal and priority setting.
Developing interpersonalrelations.
Role analysis to eachmembers role and
responsibilities.
Team process analysis.
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OD techniques
Inter group
Development
OD efforts to change
the attitudes,stereotypes, and
perceptions that
groups have of each
other.
Intergroup Problem
Solving:
Groups independently
develop lists of
perceptions.
Share and discuss lists.
Look for causes of
misperceptions.
Work to develop
integrative solutions.
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OD techniques
Appreciative Inquiry
Seeks to identify theunique qualities andspecial strengths of an
organization, which canthen be built on toimprove performance.
Appreciative Inquiry(AI):
Discovery: recalling thestrengths of the
organization. Dreaming: speculation
on the future of theorganization.
Design: finding acommon vision.
Destiny: deciding howto fulfill the dream.
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Other approaches to change
Process Reengineering
Starting all over
Rethinking and redesigning organizational processes to produce more uniform
products and services.
Identifying the organizations distinctive competencieswhat it does best.
Assessing core processes that add value to the organizations distinctive
competencies.
Reorganizing horizontally by process using cross-functional and self-managed
teams.