Types and Forms of Organizaitonal Change.2ppt
Transcript of Types and Forms of Organizaitonal Change.2ppt
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
1/49
Types and Forms of
Organizational
Change by Sheng ZhangZhuoling ShiNanxi Li
Chapter 10
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
2/49
Overview
Organizations are facing an environment
that is changing rapidly, and the taskfacing managers is to help organizations
respond and adjust to the changes taking
place.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
3/49
Chapter target
We should know the various types of
change that organizations must undergo
and how organizations can manage theprocess of change to stay ahead in todays
competitive environment
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
4/49
Definition ofOrganizational Change
The process by which organizations
move from their present state to some
desired future state to increase their
effectiveness
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
5/49
Targets of Change
Human resource
Functional resource
Technological capabilities
Organizational capabilities
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
6/49
Forces for and resistance to
organizational change
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
7/49
Competitive forces:
Organization matches or surpasses itscompetitions in efficiency, quality, or its
capability to innovate new or improved
goods or services.
Economic , political, and global forces :
They affect organizations and compel themto change how and where they produce
goods and service.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
8/49
Demographic and social forces:Workforce, social force is a big challenges to
confront organization. Changes in workforceand the increasing diversity of employeeshave presented organization with manychallenges and opportunities.
Ethical forces:Critical for an organization to take step to
promote ethical behavior in the face of
increasing government ,political, and socialdemands for more responsible and honest
corporate behavior.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
9/49
Resistance to change
Organizational level
Functions level
Group level
Individual level
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
10/49
Lewins force-field theory of change
A theory of organizational change that argues that two sets of
Opposing forces within an organization determine how change
will take place
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
11/49
Evolutionary and
Revolutionary Change inOrganizations
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
12/49
Evolutionary Change in Organizations
Evolutionary change is gradual, incremental,
and specifically focused.
Sociotechnical systems theory, total quality
management, and the creation of empowered,
flexible work groups are there instrumental of
evolutionary change.
Such improvements might be a better way tooperate a technology or to organize the work
process.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
13/49
Revolutionary change in organization
Revolutionary change is rapid, dramatic, andbroadly focused.
It is likely to result in a radical shift in ways of
doing things, new goals, and a new structure. It has repercussions at all levels in the
organization- corporate, divisional, functional,group, and individual.
Reengineering, restructuring, and innovation arethree important instruments of revolutionarychange.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
14/49
Developments in Evolutionary Change:
Sociotechnical Systems Theory
SociotechnicalSystems Theory was one of the first theories that
proposed the importance of changing role and task or technical
relationships to increase organizational effectiveness.
Managers need to fit or jointly optimize the working of an
organizations technical and social systems or, in terms of thepresent discussion, culture to promote effectiveness.
When managers change task and role relationships, they must
recognize the need to adjust the technical and social systems
gradually so group norms and cohesiveness are not disrupted.
Managers need to be sensitive to the fact that the way they structurethe work process affects the people and groups behave.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
15/49
Before the World Word II,
coal mining was a small-
Batch or craft process.Teams of skilled miners
dug coal from the coal face
underground and performed
all the other activities
necessary to transport the
coal to the surface. Worktook place in a confined
space where productivity
depended in close
Cooperation between
team members. Workers
developed their ownroutines and norms to get
the Job done and provided each other with social support to help combat the stress
of their dangerous and confining working conditions. This method of coal mining,
called the hand got method, approximated small-batch technology.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
16/49
To increase efficiency, managers decide
To replace in with the long wall method.
This method used a mechanized, mass
Production technology. Coal was now cut
By miners using powered drills, and it was
Transported to grammed and standardized.
On paper, the new technology promised
Impressive increases in mining efficiency.
But after its introduction At the mines,
efficiency rose only slowly, and
Absenteeism among miners, which had
always been high, increased dramtically.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
17/49
Total Quality Management
Total Quality Management (TQM) is an ongoing and constant effort by allof an organizations functions to fund new way to improve the quality of theorganizations goods and services.
Changing cross functional relationships to help improve quality is veryimportant in TQM.
Coordinating the design of the various inputs so they fit together smoothlyand operate effectively together is one area ofTQM.
Implementing a TQM program is not always easy because it requiresworkers and managers to adopt new ways ofviewing their roles in anorganization.
Managers must be willing to decentralize control of decision making,
empower workers, and assume the role of facilitator rather than supervisor.The command and control model gives way to an advise and support
model.
TQM is an evolutionary process that bears fruit only when it becomes a wayof life in an organization.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
18/49
Flexible Workers and Flexible Work Teams
Employees need to acquire and develop the skills to perform any ofthe tasks necessary for assembling a range of finished products.
As the demand for components or finished products rises or falls,flexible workers can be transferred to the task more needed by theorganization.
As a result, the organization is able to respond quickly to changes inits environment.
Flexible work team is a group of workers who assume responsibilityfor performing all the operations necessary for completing aspecified stage in the manufacturing process.
A flexible work team is self managed: The team members jointly
assign tasks and transfer workers from one task to another asnecessary.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
19/49
Component
Component
Component
Component Final product
Transmission
Component
Work team
Brake systemComponent
Work team
Exhaust system
Component
Work team
EngineComponent
Work team
Automobile
Final-product
Work team
The Use of Flexible Work
Teams to Assemble Cars
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
20/49
Developments in Revolutionary Change:
Reengineering
Reengineering involves the fundamental rethinking and radical redesign ofbusiness processes to achieve dramatic improvements in critical,contemporary measures of performance such as cost, quality, service, andspeed.
Business process An activity that cuts across functional boundaries andis vital to the quick delivery of goods and services or that promotes high
quality or low costs. Three guidelines for performing reengineering successfully are as follows:
1.Organize around outcomes not task. Where possible, organize work soone person or one function can perform all the activities necessary tocomplete the process, thus avoiding the need for transfers (and integration)between functions.
2.Have those who use the output of the process perform the process.
Because the people who use the output of the process know best what theywant, establish a system of rules and SOPs that will allow them to takecontrol over it.
3.Decentralize decision making to the point where the decision is made.Allow the people on the spot to decide how best to respond to specificproblem that arise.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
21/49
CEO
Manufacturing PurchasingProduction
ControlDistribution Marketing
CEO
ManufacturingMaterial
ManagementMarketing
PurchasingProduction
ControlDistribution
_______________________________________________________________________
_______________________________________________________________________
A. Before
B. After
Figure Improving Integration in Functional Structure in Creatinga Materials Management Function
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
22/49
Restructuring, Innovation and E-Engineering
Restructuring A process by which managers change task andauthority relationships and redesign organizational structure andculture to improve organizational effectiveness.
Downsizing The process by which managers streamline theorganizational hierarchy and lay off managers and workers to
reduce bureaucratic costs. Innovation The process by which organization use their skills andresource to develop new goods and services or to develop newproduction and operating systems so they can better respond to theneeds of their customers. Innovation is one of the most difficultinstruments of change to manage.
E-Engineering refers to companies attempts to use all kinds of
information systems to improve their performance. ( Internet-basedsoftware systems, New IT, online management information system.Etc.)
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
23/49
Restructuring and reengineering are also closely linked, for inpractice the move to a more efficient organizational structuregenerally results in the layoff of employees, unless the organizationis growing rapidly so employees can be transferred or absorbedelsewhere in the organization. It is for this reason that reengineeringefforts are unpopular both among workers - who fear they will bereengineered out of a job - and among managers who fear theloss of their authority and empires as new and more efficient ways ofstructuring task and role relationships are found.
Restructuring, like reengineering, TQM, and other change strategies,generates resistance to change. Often, the decision to downsizerequires the establishment of new task and role relationships.
Because this change may threaten the jobs of some workers, theyresist the changes taking place. Many plans to introduce change,including restructuring, take a long time to implement and failbecause of the high level of resistance that they encounter at alllevel of the organization.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
24/49
Managing Change: Action
Research
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
25/49
Lewins Three-Step Change
Process
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
26/49
Step in Action Research
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
27/49
Diagnosing the Organization
The first step in action research requiresmanagers to recognize the existence of aproblem that needs to be solved and
acknowledge that some type of change isneeded to solve it.
Diagnosing the organization can be acomplex process. Like a doctor, managershave to distinguish between symptomsand causes
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
28/49
Determining the Desired Future
State
To identify where the organization needs
to be-its desired future state.
Should the organization focus on reducingcosts and increasing efficiency?
Or are raising quality and responsiveness
to customers the keys future success?
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
29/49
Implementing Action
First, managers need to identify possible
impediments to change that they will
encounter as they go about making
changes---impediments at the organization,
group, and individual levels.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
30/49
Implementing Action
Second step in implementing action is deciding who will
be responsible for actually making the change an
controlling the change process. The choices are employ
external change agents orinternal change agents.
Internal change agents is that other members of the
organization may perceive them as being politically
involved in the change and biased toward certain groups.
External change agents, in contrast, are likely to be
perceived as less influenced by internal politics.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
31/49
Implementing Action
Top-down Change is implemented by
managers at a high level in the
organization .
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
32/49
Implementing Action
Bottom-up Change is implemented by
employees at low levels in the
organization and gradually rises until it is
felt throughout the organization.
In general, bottom-up change is easier to
implement than top-down change because
it provokes less resistance.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
33/49
Evaluating the Action
The fourth step in action research is evaluatingthe action that has been taken and assessingthe degrees to which the change have
accomplished the desired objectives. The best way to evaluate the change process is
to develop measures or criteria that allowmanagers to assess whether the organizationhas reached its desired objectives.
Assessing the Impact of change is especiallydifficult because the effects of change mayemerge slowly.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
34/49
Institutionalizing Action Research
The need to manage change is so vital in
todays quickly changing environment that
organization must institutionalize action
research that is, make it a required habit
or a norm adopted by every member of an
organization.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
35/49
Organizational Development-----a series of techniques and methods that managers can use in theiraction research program to increase the adaptability of their
organization
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
36/49
OD techniques to deal with
Resistance to change
Resistance to change occurs at all levels
of an organization.
It manifests itself as organizational politicsand power struggles between individuals
and groups, differing perceptions of the
need for change, and so on.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
37/49
Education and Communication
One of the most important impediments to
change is uncertainty about what is going
to happen.
Through education and communication,
internal and external agents of change can
provide organizational member with
information about the change and how itwill effect on them.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
38/49
Participation and Empowerment
Inviting workers to participate in the
change process is becoming a popular
method of reducing resistance to change.
When work-group members are
empowered, workers often make many of
the decisions and have a lot of the
responsibility that used to be part ofmiddle managers jobs.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
39/49
Facilitation
Both managers and workers find change
stressful because established task and
role relationships alter as it takes place.
Many companies employ psychologists
and consultants who specialize in helping
employees to handle the stress associated
with change.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
40/49
Bargaining and Negotiation
Bargaining and negotiation are important
tools that help managers manage conflict.
Change causes conflict, bargaining is animportant tool in overcoming resistance to
change.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
41/49
Coercion
The ultimate way to eliminate resistance to
change is to coerce the key players into
accepting change and threaten dire
consequences if they choose to resist.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
42/49
OD Techniques to Promote Chage
Many OD Techniques are designed to
make changes and to refreeze them.
These techniques can be used at theindividual, group, and organization levels.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
43/49
Counseling. Sensitivity Training.
And Process Consultation
The personalities of individuals differ and these
differences lead individuals to interpret and react
to other people and events in a variety of ways.
Even though personality cannot be changedsignificantly in short run, people can be helped
to understand that their own perceptions of a
situation are not necessarily the correct or the
only possible one.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
44/49
Counseling. Sensitivity Training.
And Process Consultation
Sensitivity training is An OD technique that
consists of intense counseling in which
group members, aided by a facilitator,
learn how others perceive them and may
learn how to deal more sensitively with
others.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
45/49
Counseling. Sensitivity Training.
And Process Consultation
Process Consultation is an OD technique
in which a facilitator works closely with a
manager on the job to help the manager
improve his or her interactions with other
group members
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
46/49
Team Building and Intergroup
Training
Team building is an OD thechnique in
which a facilitator first observes the
interactions of group members and then
helps them become aware of ways to
improve their work interactions.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
47/49
Team Building and Intergroup
Training
Intergroup Training is an OD techniquethat uses team building to improve thework interactions of different functions or
divisions Organizational mirroring is an OD
technique in which a facilitator helps twointerdependent groups explore theirperceptions and relations in order toimprove their work interations.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
48/49
Total Organizational Interventions
A variety ofOD techniques can be used atthe organization level to promoteorganization-wide change.
Organizational confrontation meeting is anOD technique that brings together all ofthe managers of an organization at ameeting to confront the issue of whetherthe organization is meeting its goalseffectively.
-
8/7/2019 Types and Forms of Organizaitonal Change.2ppt
49/49
Thank you !