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NAME & ID

2/9/2012

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Managing Change in Organizations

Behavior

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What are your reactions when you hear the

word change?

Negative perceptions.

Positive perceptions.

Your Perception of Change

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TYPES OF ORGANIZATIONAL

CHANGE

Anticipatory changes: planned changes based onexpected situations.

Reactive changes: changes made in response tounexpected situations.

Incremental changes: subsystem adjustmentsrequired to keep the organization on course.

Strategic changes: altering the overall shape ordirection of the organization.

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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

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A Journey Through Change:

Stability

Learning

Acceptance,Commitment

Looking

Forwar

d

Lookin

g Back

Comfort

andcontrol

Fear, Anger

and

Resistance

Chaos

Enquiry,Experimentatio

n and

Discovery

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INDIVIDUAL REACTIONS TO

CHANGE

How People Respond to Changes They Like?

Three-stage process

Unrealistic optimism

Reality shock

Constructive direction

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INDIVIDUAL REACTIONS TO CHANGE(CONTD)

How People Respond to Changes They Fear and

Dislike?

Stages

Getting off on the wrong track

Laughing it off

Growing self-doubt

Destructive direction

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AND INDIVIDUAL

PERSPECTIVES (CONTD)

Tuning

The most common, least intense, and least riskytype of change.

Also known as preventive maintenance and kaizen(continuous improvement).

Key is to actively anticipate and avoid problems ratherthan waiting for something to go wrong.

Adaptation Incremental changes that are in reaction to external

problems, events, or pressures.

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CHANGE: ORGANIZATIONAL AND

INDIVIDUAL PERSPECTIVES (CONTD)

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 reinventsthe organization.

Also called frame breaking (Nadler and Tushman).

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WHY

DOEMPLOYEES

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 particularchange.

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JOHN P KOTTER'S EIGHT STEPS TO

SUCCESSFUL CHANGE

Increase urgency - inspire people to move, make objectives real

and relevant.

Build the guiding team - get the right people in place with the rightemotional commitment, and the right mix of skills and levels.

Get the vision right - get the team to establish a simple vision and

strategy, focus on emotional and creative aspects necessaryto drive service and efficiency.

Communicate for buy-in - Involve as many people as possible,communicate the essentials, simply, and to appeal and respond topeople's needs. De-clutter communications.

Empower action - Remove obstacles, enable constructive feedback

and lots of support from leaders - reward and recogniseprogress and achievements.

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WHY DO EMPLOYEES RESIST CHANGE?(CONTD)

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 trustmanagement.

Fear of Failure

Employees are intimidated by change and doubt their abilities to meetnew challenges.

Personality Conflicts Managers who are disliked by their managers are poor conduits for

change.

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WHY DO EMPLOYEES RESIST CHANGE?(CONTD)

Threat to Job Status/Security

Employees worry that any change may threatentheir job or security.

Breakup of Work GroupChanges can tear apart established on-the-job

social relationships.

Competing CommitmentsChange can disrupt employees in their pursuit of

other goals.

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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

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LEADER ACTION:

Stability

Comfort and

control

Lookin

g Back

Looking

Forward

Chaos

Fear,Anger and

ResistanceEnquiry,

Experimentatio

n and

Discovery

Learning,

Acceptance &

Commitment

Create a feltneed ofchange

Stabilize andSustain thechange

Introduce

thechange

Revise and

finalize thechange plan

1

2 3

4

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MAKING CHANGE HAPPEN

Two Approaches to Organization Change

Organization Development (OD)

Formal top-down approach

Grassroots Change

An unofficial and informal bottom-up approach

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PLANNED CHANGE THROUGH

ORGANIZATION DEVELOPMENT (OD)

Organization development (OD)

Planned change programs intended to help peopleand organizations function more effectively.

Applying behavioral science principles, methods, andtheories to create and cope with change.

OD creates fundamental change in the organization, asopposed to fixing a problem or improving a procedure.

OD programs generally are facilitated by hiredconsultants,

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ORGANIZATION DEVELOPMENT (OD)(CONTD)

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 andimplementing.

Encourage willingness to change.

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ORGANIZATION DEVELOPMENT (OD)(CONTD)

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.

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GRASSROOTS CHANGE

Grassroots ChangeChange 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.

Dont go it alone.

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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

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Innovation

C

R

E

A

T

I

VI

T

Y

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STIMULATING

INNOVATION

Creativity

The ability to combine ideas in aunique way or to make anunusual association.

Innovation

Turning the outcomes of the

creation process into usefulproducts, services, or workmethods.

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SYSTEM VIEW OF

INNOVATION

Transformation Outputs

Creative Individuals,

Groups and

Organizations

Creative Environment,

Process and Situation

Innovative Products,

Work Methods

Inputs

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INNOVATION

VARIABLES

Innovative Variables

Structural Variables

Organic structure

Communication

Abundant resources

High interunit stimulate

Work and network support

Cultural variables

Acceptance of ambiguity

Positive feedbackLow 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

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STRUCTURAL

VARIABLES

Adopt an organic structure

Make available plentiful

resources

Engage in frequent inherentcommunication

Minimize extreme time

pressures on creative activities Provide explicit support for

creativity

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CULTURAL

VARIABLES Accept Ambiguity, have low

external control

Tolerant impractical

Tolerant risk taking Tolerate conflict

Focus on ends rather thanmeans

Develop an open systemfocus

Provide positive feedback

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HUMAN RESOURCES

VARIABLES

Actively promote T & Dto keep employeesskills updated

Offer high job securityto encourage risk

taking

Encourage individualto be Champion to

change

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THANK YOU

2/9/2012