Organisational Change and Development(1)

7/31/2019 Organisational Change and Development(1)

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ORGANISATIONAL CHANGE


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Courtesy National Board of Antiquities, Finland

Continuous Change at Nokia

Nokia has continually adapted to its changingenvironment. The Finnish company began as a pulp

and paper mill in 1865, then moved into 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.


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Focus

Change new state of things, different from old state of things

Can be viewed as an opportunity or as a threat

Change

First order change

Second order change

(making moderate adjustments)

(reinvent, reengineer, rewrite)

OD consultants are experts in organizational change

What needs to be changed and how to go about it


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When Will It Occur?

Benefit of

making

change

Comparedto

Cost ofmaking

change

Changeis made

Change is

not made

Amount of dissatisfaction

with current conditions

Availability of a

desirable alternative

Existence of a plan for

achieving a desirablealternative

If benefits exceed costs

If costs exceed benefits


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Forces for Change

Force Examples

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 sharingDeciphering of the human genetic code

Economic shocks Rise and fall of dot-com stocks

200002 stock market collapse

Record low interest rates

Competition Global competitorsMergers and consolidations

Growth of e-commerce


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186

Forces for Change

Force Examples

World politics IraqU.S. war

Opening of markets in China

War on terrorism following 9/11/01

Decentralization

Downsizing

Emphasis on quality

Mergers , acquisition

Restructuring

International expansion


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First order change

Fundamental nature of the organization remains the

same

Transactional, evolutionary, continuous change

Structure, Systems Management practices

Organizational Climate(peoples perception and

attitude )


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Second order Change

Nature of the organization is fundamentally altered Transformational, radical or discontinuous change

Mission and strategy

Leadership

Organisation culture(values and beliefs)


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Managing 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 inthe organization.

ChangeMaking things different.

Planned Change

Activities that are

intentional and goaloriented.

Change Agents

Persons who act as catalystsand assume theresponsibility for managingchange activities.


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Resistance 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


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Sources of Individual Resistance to Change


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Sources of Organizational Resistance to

Change


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MinimizingMinimizing

ResistanceResistance

toto ChangeChange

CommunicationCommunication

TrainingTraining

EmployeeEmployeeInvolvementInvolvement

StressStressManagementManagement

NegotiationNegotiation

CoercionCoercion

Minimizing Resistance to Change


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Lewins Three-Step Change Model

UnfreezingChange efforts to overcomethe pressures of bothindividual resistance andgroup conformity.

RefreezingStabilizing a changeintervention by balancingdriving and restraining forces.

Driving ForcesForces that direct behavior

away from the status quo.

Restraining ForcesForces that hinder movement

from the existing equilibrium.


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Lewins Three-Step Change Model

KURT LEWIN

Change is a three-stage process

Stage 1 - Unfreezing the old behavior/ situationStage 2 - Moving to a new level of behaviors

Stage 3 - Refreezing the behavior at the new level


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Unfreezing the Status Quo


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Desired

Conditions

Current

Conditions

Before

Change

After

Change

DrivingForces

RestrainingForces

Force Field Analysis

During

Change

DrivingForces

RestrainingForces

Driving

Forces

RestrainingForces


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New manufacturing technique to be introduced

Assign a score to each force, from 1 (weak) to 5

(strong).

Identify the Rfs and Dfs

Reduce the RFs

Increase the Dfs


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Refreezing 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 onnew priorities


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Kotters Eight-Step Plan for Implementing Change

1. Establish a sense of urgency by creating a compelling reason forwhy 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.


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Action Research

Process Steps:

1. Diagnosis

2. Analysis3. 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 ofdata and then selection of a change action based onwhat the analyzed data indicate.


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Researcher enters a problem situation, diagnoses it and make

recommendations for remedial treatment (recommendationsmay not be put into effect by client group)

People who are to take action are involved in the entire process

from the beginning(involvement increases the

likelihood of carrying out the actions once decided upon)

Researcher keeps the systematic, extensive record of what he/she did and what effects it had (may encounter situations too

divergent from one another, which may not permit

generalizations)

It is controlled research on the relative effectiveness of various

techniques (is difficult to do when client wants

Diagnostic

ParticipantParticipant

Empirical

ExperimentalExperimental

Action ResearchData Collection

Feedback of data to client system members

Action planning based on the dataTaking action

Evaluating results of actions

Types

Diagnostic

Participant

Empirical

Experimental


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Application of OB-----------OD


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Poor

morale

Unclear

goals

Poorquality

Poor

team

perform

ance

Intergroup conflictOrganization

Poorlydesignedtasks

Inappropriateleadershipstyle

Interpersonal conflicts

Low productivity

Poor alignment to organizations strategy

Start Point

Inappr

opria

teor

ganizatio

nstru

cture


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Definition(s) of OD

Organization Development is an effort (1) planned, (2) organization-wide,

and (3) managed from top, to (4) increase organization effectiveness and healththrough (5) planned interventions in organizations processes, using behavioral-

science knowledge. Beckhard, 1969

Organization Development is a process of planned change change of an

organizations culture from one which avoids an examination of social processes

(especially decision making, planning and communication) to one whichinstitutionalizes and legitimizes this examination. Burke & Hornstein, 1972

Organization Development is a systematic application of behavioral science

knowledge to the planned development and reinforcement of organizational

strategies, structures, and processes for improving an organizations effectiveness.

Cummings & Worley, 1993

Organization development is a planned process of change in an organizations

culture through the utilization of behavioral science technologies, research, and

theory. Burke, 1994


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Organizational Development

OD Values:

1. Respect for people

2. Trust and support3. 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 onhumanistic-democratic values, that seeks to improveorganizational effectiveness and employee well-being.


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Organizational Development Techniques

Sensitivity TrainingTraining groups (T-groups) thatseek to change behavior throughunstructured group interaction.

Provides increased awareness ofothers and self.

Increases empathy with others,improves listening skills, greateropeness, and increased tolerancefor others.


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(contd)

Survey Feedback Approach

The use of questionnaires to identify discrepanciesamong member perceptions; discussion follows

and remedies are suggested.


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(contd)

Process Consultation (PC)

A consultant gives a client insights into what is goingon around the client, within the client, and between the

client and other people; identifies processes that needimprovement.


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(contd)

Team Building Activities:

Goal and priority setting.

Developing interpersonal relations.

Role analysis to each members role and

responsibilities.

Team process analysis.

Team Building Activities:

Goal and priority setting.

Developing interpersonal relations.

Role analysis to each members role and

responsibilities.

Team process analysis.

Team Building

High interaction among team members toincrease trust and openness.


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(contd)

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, andperceptions that groups have of each other.


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(contd)

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 specialstrengths of an organization, which can then be built

on to improve performance.

Organisational Change and Development(1)

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