Org.change

7/28/2019 Org.change

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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.

Org.change

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