Date post: | 14-Jan-2015 |
Category: |
Business |
Upload: | rohit-kumar |
View: | 1,555 times |
Download: | 1 times |
1
•Organizational Change and Development
Courtesy National Board of Antiquities, Finland
Continuous Change at NokiaContinuous Change at NokiaContinuous Change at NokiaContinuous Change at Nokia
Nokia has continually adapted to its changing environment. The Finnish company began as a pulp and paper mill in 1865, then movedinto rubber, cable wiring, and computer monitors. In the 1980s, Nokia executives sensed an emerging market for wireless communication. Today, Nokia is a world leader in cellular telephones.
3© 2005 Prentice Hall Inc. All rights reserved.
18–3
Forces for ChangeForces for ChangeForces for ChangeForces for Change
E X H I B I T 18–1
E X H I B I T 18–1
Force Examples
Nature of the workforce More cultural diversityAging populationMany new entrants with inadequate skills
Technology Faster, cheaper, and more mobile computersOn-line music sharingDeciphering of the human genetic code
Economic shocks Rise and fall of dot-com stocks 2000–02 stock market collapseRecord low interest rates
Competition Global competitors
Mergers and consolidationsGrowth of e-commerce
4© 2005 Prentice Hall Inc. All rights reserved.
18–4
Forces for ChangeForces for ChangeForces for ChangeForces for Change
E X H I B I T 18–1 (cont’d)E X H I B I T 18–1 (cont’d)
Force Examples
Social trends Internet chat rooms Retirement of Baby BoomersRise in discount and “big box” retailers
World politics Iraq–U.S. war
Opening of markets in China War on terrorism following 9/11/01
5© 2005 Prentice Hall Inc. All rights reserved.
18–5
Managing Planned ChangeManaging Planned ChangeManaging Planned ChangeManaging 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.
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.
6© 2005 Prentice Hall Inc. All rights reserved.
18–6
Resistance to ChangeResistance to ChangeResistance to ChangeResistance to Change
Forms of Resistance to Change
– Overt and immediate
• Voicing complaints, engaging in job actions
– Implicit and deferred
• Loss of employee loyalty and motivation, increased errors or mistakes, increased absenteeism
7© 2005 Prentice Hall Inc. All rights reserved.
18–7
Sources of Individual Resistance Sources of Individual Resistance to Changeto ChangeSources of Individual Resistance Sources of Individual Resistance to Changeto Change
E X H I B I T 18–2
E X H I B I T 18–2
8© 2005 Prentice Hall Inc. All rights reserved.
18–8
Sources of Organizational Sources of Organizational Resistance to ChangeResistance to ChangeSources of Organizational Sources of Organizational Resistance to ChangeResistance to Change
E X H I B I T 18–2 (cont’d)
E X H I B I T 18–2 (cont’d)
9© 2005 Prentice Hall Inc. All rights reserved.
18–9
Overcoming Resistance to Overcoming Resistance to ChangeChangeOvercoming Resistance to Overcoming Resistance to ChangeChange
Tactics for dealing with resistance to change:
• Education and communication
• Participation
• Facilitation and support
• Negotiation
• Manipulation and cooptation
• Coercion
Tactics for dealing with resistance to change:
• Education and communication
• Participation
• Facilitation and support
• Negotiation
• Manipulation and cooptation
• Coercion
10© 2005 Prentice Hall Inc. All rights reserved.
18–10
The Politics of ChangeThe Politics of ChangeThe Politics of ChangeThe Politics of Change
• Impetus for change is likely to come from outside change agents.
• Internal change agents are most threatened by their loss of status in the organization.
• Long-time power holders tend to implement only incremental change.
• The outcomes of power struggles in the organization will determine the speed and quality of change.
11
Organizational Change: An International Phenomenon
0 10 20 30 40 50 60 70 80
0 10 20 30 40 50 60 70 80
Percentage of Respondents by Country
Internationalexpansion
Reduction inemployment
Mergers,divestitures,acquisitions
Majorrestructuring
HungaryMexicoS. KoreaGermanyUnited StatesJapan
(Source: Kanten, R., 1991.)
12
Changing People: Some Basic Changing People: Some Basic StepsSteps
Recognizing theneed for change
Attempting tocreate a new stateof affairs
Incorporating the changes,creating and maintaining anew organizational system
Step 1: Unfreezing
Step 3: Refreezing
Step 2: Changing
Current S
tate
New
State
13
Team Team Building: Building: Its Basic Its Basic StepsSteps
Sensitivitygroups
Objectivedata
Group membersrecognize problem
Diagnose group’sstrengths andweaknesses
Develop desiredchange goals
Develop action planto make changes
Implement plan
Evaluate plan
Processcompleted
if successfulif successfulif unsuccessfulif unsuccessful
Res
tart
pro
cess
Res
tart
pro
cess
14
When Will It Occur?
Benefit ofmakingchange
Comparedto
Cost ofmakingchange
Changeis made
Change isnot made
Amount of dissatisfactionwith current conditions
Availability of adesirable alternative
Existence of a plan forachieving a desirable
alternative
If benefits exceed costs
If costs exceed benefits
Some External Forces for ChangeSome External Forces for ChangeSome External Forces for ChangeSome External Forces for Change
InformationInformationTechnologyTechnology
GlobalizationGlobalization& Competition& Competition
DemographyDemography
Courtesy National Board of Antiquities, Finland
DesiredConditions
CurrentConditions
BeforeChange
AfterChange
DrivingForces
RestrainingForces
Force Field AnalysisForce Field AnalysisForce Field AnalysisForce Field Analysis
DuringChange
DrivingForces
RestrainingForces Driving
Forces
RestrainingForces
Resistance to Change at BP NorgeResistance to Change at BP NorgeResistance to Change at BP NorgeResistance to Change at BP Norge
• “SDWTs don’t work on drilling rigs!”
• “We already have teams!”
• “This creates more work — will we get higher pay?”
• “I don’t know how to work in teams.”
• “SDWTs will threaten my job as a supervisor!”
Employees initially resisted self-directed teams BP Norge’s North Sea drilling rigs.
AP Worldwide
Forces forChangeForces forChange
Resistance to ChangeResistance to ChangeResistance to ChangeResistance to Change
Direct Costs
Saving Face
Fear of the Unknown
Breaking Routines
Incongruent Systems
Incongruent Team Dynamics
Creating an Urgency for ChangeCreating an Urgency for ChangeCreating an Urgency for ChangeCreating an Urgency for Change
• Need to motivate employees to change
• Most difficult when organisation is doing well
• Must be real, not contrived
• Customer-driven change
MinimizingMinimizingResistanceResistancetoto ChangeChange
CommunicationCommunication
TrainingTraining
EmployeeEmployeeInvolvementInvolvement
StressStressManagementManagement
NegotiationNegotiation
CoercionCoercion
Minimizing Resistance to ChangeMinimizing Resistance to ChangeMinimizing Resistance to ChangeMinimizing Resistance to Change
Refreezing the Desired ConditionsRefreezing the Desired ConditionsRefreezing the Desired ConditionsRefreezing the Desired Conditions
Creating organizational systems and team dynamics to reinforce desired changes
– alter rewards to reinforce new behaviours
– new information systems guide new behaviours
– recalibrate and introduce feedback systems to focus on new priorities
Courtesy of CHC Helicopter Corp.
Change AgentsChange AgentsChange AgentsChange Agents
• Anyone who possesses enough knowledge and power to guide and facilitate the change effort
• Change agents apply transformational leadership– Help develop a vision– Communicate the vision– Act consistently with the vision– Build commitment to the vision
Organization Development DefinedOrganization Development DefinedOrganization Development DefinedOrganization Development Defined
A planned system wide effort, managed
from the top with the assistance of a
change agent, that uses behavioural
science knowledge to improve
organizational effectiveness.
24
Organizational Development: How Organizational Development: How Effective Is It?Effective Is It?
2020
3030
4040
5050P
erce
ntag
e of
Stu
dies
Sh
owin
g P
osit
ive
Cha
nges
Per
cent
age
of S
tudi
es S
how
ing
Pos
itiv
e C
hang
es
IndividualIndividualoutcomesoutcomes(e.g., job(e.g., job
satisfaction)satisfaction)
OrganizationalOrganizationaloutcomesoutcomes
(e.g., profit)(e.g., profit)
(23.55)(23.55)
(48.70)(48.70)Organizational outcomesmore often benefited fromOD interventions than did
individual outcomes
(Source: Porras and Robertson, 1992.)
25© 2005 Prentice Hall Inc. All rights reserved.
18–25
Kotter’s Eight-Step Plan for Implementing ChangeKotter’s Eight-Step Plan for Implementing ChangeKotter’s Eight-Step Plan for Implementing ChangeKotter’s Eight-Step Plan for Implementing Change
E X H I B I T 18–5
E X H I B I T 18–5
1. Establish a sense of urgency by creating a compelling reason for why change is needed.
2. Form a coalition with enough power to lead the change.
3. Create a new vision to direct the change and strategies for achieving the vision.
4. Communicate the vision throughout the organization.
5. Empower others to act on the vision by removing barriers to change and encouraging risk taking and creative problem solving.
6. Plan for, create, and reward short-term “wins” that move the organization toward the new vision.
7. Consolidate improvements, reassess changes, and make necessary adjustments in the new programs.
8. Reinforce the changes by demonstrating the relationship between new behaviors and organizational success.
Source: Based on J. P. Kotter, Leading Change (Boston: Harvard Business School Press, 1996).
26© 2005 Prentice Hall Inc. All rights reserved.
18–26
Action ResearchAction ResearchAction ResearchAction Research
Process Steps:
1. Diagnosis
2. Analysis
3. Feedback
4. Action
5. Evaluation
Process Steps:
1. Diagnosis
2. Analysis
3. Feedback
4. Action
5. Evaluation
Action research benefits:
Problem-focused rather than solution-centered.
Heavy employee involvement reduces resistance to change.
Action research benefits:
Problem-focused rather than solution-centered.
Heavy employee involvement reduces resistance to change.
Action Research
A change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicate.
27© 2005 Prentice Hall Inc. All rights reserved.
18–27
Organizational DevelopmentOrganizational DevelopmentOrganizational DevelopmentOrganizational Development
OD Values:1. Respect for people
2. Trust and support
3. Power equalization
4. Confrontation
5. Participation
OD Values:1. Respect for people
2. Trust and support
3. Power equalization
4. Confrontation
5. Participation
Organizational Development (OD)
A collection of planned interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-being.
28© 2005 Prentice Hall Inc. All rights reserved.
18–28
Organizational Development Organizational Development TechniquesTechniquesOrganizational Development Organizational Development TechniquesTechniques
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 openess, and increased tolerance for others.
29© 2005 Prentice Hall Inc. All rights reserved.
18–29
Organizational Development Organizational Development Techniques (cont’d)Techniques (cont’d)Organizational Development Organizational Development Techniques (cont’d)Techniques (cont’d)
Survey Feedback Approach
The use of questionnaires to identify discrepancies among member perceptions; discussion follows and remedies are suggested.
30© 2005 Prentice Hall Inc. All rights reserved.
18–30
Organizational Development Organizational Development Techniques (cont’d)Techniques (cont’d)Organizational Development Organizational Development Techniques (cont’d)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.
31© 2005 Prentice Hall Inc. All rights reserved.
18–31
Organizational Development Organizational Development Techniques (cont’d)Techniques (cont’d)Organizational Development Organizational Development Techniques (cont’d)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 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.
32© 2005 Prentice Hall Inc. All rights reserved.
18–32
Organizational Development Organizational Development Techniques (cont’d)Techniques (cont’d)Organizational Development Organizational Development Techniques (cont’d)Techniques (cont’d)
Intergroup Problem Solving:Intergroup Problem Solving:
• Groups independently develop lists of perceptions.Groups independently develop lists of perceptions.
• Share and discuss lists.Share and discuss lists.
• Look for causes of misperceptions.Look for causes of misperceptions.
• Work to develop integrative solutions.Work to develop integrative solutions.
Intergroup Problem Solving:Intergroup Problem Solving:
• Groups independently develop lists of perceptions.Groups independently develop lists of perceptions.
• Share and discuss lists.Share and discuss lists.
• Look for causes of misperceptions.Look for causes of misperceptions.
• Work to develop integrative solutions.Work to develop integrative solutions.
Intergroup Development
OD efforts to change the attitudes, stereotypes, and perceptions that groups have of each other.
33© 2005 Prentice Hall Inc. All rights reserved.
18–33
Organizational Development Organizational Development Techniques (cont’d)Techniques (cont’d)Organizational Development Organizational Development Techniques (cont’d)Techniques (cont’d)
Appreciative Inquiry (AI):
• Discovery: recalling the strengths of the organization.
• Dreaming: speculation on the future of the organization.
• Design: finding a common vision.
• Destiny: deciding how to fulfill the dream.
Appreciative Inquiry (AI):
• Discovery: recalling the strengths of the organization.
• Dreaming: speculation on the future of the organization.
• Design: finding a common vision.
• Destiny: deciding how to fulfill the dream.
Appreciative Inquiry
Seeks to identify the unique qualities and special strengths of an organization, which can then be built on to improve performance.
EstablishClient-
ConsultantRelations
DisengageConsultant’s
Services
Action Research ProcessAction Research ProcessAction Research ProcessAction Research Process
DiagnoseNeed forChange
IntroduceChange
Evaluate/StabilizeChange
Discovery
Discovering the best of “what is”
Dreaming
Forming ideas about “what might
be”
Designing
Engaging in dialogue
about “what should be”
Delivering
Developing objectives
about “what will be”
Appreciative Inquiry ProcessAppreciative Inquiry ProcessAppreciative Inquiry ProcessAppreciative Inquiry Process
36
The Ethics of OD:The Ethics of OD:Summary of the DebateSummary of the Debate
OD is unethical
• Imposes values of theorganization; coerciveand manipulative
• Potential for abuse
OD is ethical
• The imposition of valuesis an inherent part of life,especially on the job
• Abuse comes from individuals, not fromthe technique itself,which is neither goodnor evil
37
Discussion of Activity 15.3Discussion of Activity 15.3Strategic Change ManagementStrategic Change ManagementDiscussion of Activity 15.3Discussion of Activity 15.3Strategic Change ManagementStrategic Change Management
Scenario #1: “Greener Telco”Scenario #1: “Greener Telco”Scenario #1: “Greener Telco”Scenario #1: “Greener Telco”
Scenario #1 refers to Bell
Canada’s Zero Waste
program, which
successfully changed
wasteful employee
behaviours by altering the
causes of those
behaviours. Courtesy of Bell Canada
Bell Canada’s Change StrategyBell Canada’s Change StrategyBell Canada’s Change StrategyBell Canada’s Change Strategy
Courtesy of Bell Canada
Relied on the MARS model to alter behaviour:
Motivation -- employee involvement, respected steering committee
Ability -- taught paper reduction, email, food disposal
Role perc. -- communicated importance of reducing waste
Situation -- Created barriers to wasteful behaviour, eg. removed garbage bins
Courtesy of Continental Airlines
Scenario #2: “Go Forward Airline”Scenario #2: “Go Forward Airline”Scenario #2: “Go Forward Airline”Scenario #2: “Go Forward Airline”
Scenario #2 refers to
Continental Airline’s “Go
Forward” change strategy,
which catapulted the
company “from worst to
first” within a couple of
years.
Continental Airlines’ Change StrategyContinental Airlines’ Change StrategyContinental Airlines’ Change StrategyContinental Airlines’ Change Strategy
Communicate, communicate, communicate
Introduced 15 performance measures
Established stretch goals (repainting planes in 6 months)
Replaced 50 of 61 executives
Rewarded new goals (on-time arrival, stock price)
Customers as drivers of changeCourtesy of Continental Airlines