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Organization Change

Organization Change. Processes for Planned Organization Change. Process Model Planned organization change requires a systematic process of movement from one condition to another Unfreezing Process by which people become aware of the need for change Change

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Organization Change

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  1. Organization Change

  2. Processes for Planned Organization Change • Process Model • Planned organization change requires a systematic process of movement from one condition to another • Unfreezing • Process by which people become aware of the need for change • Change • Movement from the old way of doing things to a new way • Refreezing • Process of making new behaviors relatively permanent and resistant to further change

  3. Process of Organizational Change

  4. Processes for Planned Organization Change • The Continuous Change Process Model • Incorporates the forces for change, a problem-solving process, a change agent, and transition management • Takes a top management perspective • Perceives forces and trends that indicate need for change • Determines alternatives for change • Selects the appropriate alternative

  5. Continuous Change Process Model of Organization Change

  6. Processes for Planned Organization Change • The Continuous Change Process Model • Change agent: a person responsible for managing a change effort • Assists management with problem recognition/definition • Can be involved in generating/evaluating potential action plans • Can be from inside or outside of the organization • Implements the change • Measures, evaluates, controls the desired results • Transition management • Process of systematically planning, organizing, and implementing change

  7. Team Building Goals To set team goals and priorities To analyze and allocate the way work is performed To examine how a group is working To examine relationships among those doing the work OD: Group and Individual Change

  8. Resistance to Change • The Resistance to Change Paradox • Organizations invite change when change offers competitive advantage • Organizations resist change when change threatens the organization’s structure and control systems • Organizations must balance stability (permanence) with the need to react to external shifts (change) • Resistance can warn of the need to reexamine the need for change

  9. Organizational Sources Overdetermination Narrow focus of change Group inertia Threatened expertise Threatened power Resource allocation changes Individual Sources Habit Security Economic factors Fear of the unknown Lack of awareness Social factors Resistance to Change: Sources of Resistance to Change

  10. Managing Successful Organization Change and Development • Keys to Managing Change in Organizations • Consider international issues • Take a holistic view • Start small • Secure top management support • Encourage participation by those affected by the change • Foster open communication • Reward those who contribute to change

  11. Different Types of Planned Change • Magnitude of Change • Incremental • Quantum • Degree of Organization • Over organized • Underorganized • Domestic vs. International Settings

  12. Diagnosing Organizational Systems • The key to effective diagnosis is… • Know what to look for at each organizational level • Recognize how the levels affect eachother

  13. Organization-Level Diagnostic Model Outputs Inputs Design Components Technology Strategy Structure HR Measurement Systems Systems General Environment Industry Structure Organization Effectiveness Culture

  14. Organization Environments and Inputs • Environmental Types • General Environment • Task Environmentand Industry Structure • Rate of Change and Complexity • Enacted Environment • Environmental Dimensions • Information Uncertainty • Resource Dependency

  15. Organization Design Components • Strategy • the way an organization uses its resources (human, economic, or technical) to gain and sustain a competitive advantage • Technology • the way an organization converts inputs into products and services • Structure • how attention and resources are focused on task accomplishment

  16. Organization Design Components • Human Resource Systems • the mechanisms for selecting, developing, appraising, and rewarding organization members • Measurement Systems • methods of gathering, assessing, and disseminating information on the activities of groups and individuals in organizations

  17. Organization Design Components • Organization Culture • The basic assumptions, values, and norms shared by organization members • Represents both an “outcome” of organization design and a “foundation” or “constraint” to change

  18. Outputs • Organization Performance • e.g., profits, profitability, stock price • Productivity • e.g., cost/employee, cost/unit, error rates, quality • Stakeholder Satisfaction • e.g., market share, employee satisfaction, regulation compliance

  19. Group-Level Diagnostic Model Inputs Design Components Outputs Goal Clarity Task Group Structure Functioning Group Performance Composition Norms Group Effectiveness Organization Design

  20. Group-Level Design Components • Goal Clarity • extent to which group understands its objectives • Task Structure • the way the group’s work is designed • Team Functioning • the quality of group dynamics among members • Group Composition • the characteristics of group members • Performance Norms • the unwritten rules that govern behavior

  21. Group-Level Outputs • Product or Service Quality • Productivity • e.g., cost/member, number of decisions • Team Cohesiveness • e.g., commitment to group and organization • Work Satisfaction

  22. Possible Effects of Feedback Feedback occurs Is the energy created by the feedback? No Change NO Energy to use data to identify and solve problems YES What is the direction of the feedback? Energy to deny or fight data Do structures and processes turn energy into action? Failure, frustration, no change NO Anxiety, resistance, no change YES Change

  23. The Design of Effective Interventions • Contingencies Related to the Change Situation • Readiness for Change • Capability to Change • Cultural Context • Capabilities of the Change Agent

  24. The Design of Effective Interventions • Contingencies Related to the Target of Change • Strategic Issues • Technology and structure issues • Human resources issues • Human process issues

  25. Intervention Overview • Human Process Interventions • Technostructural Interventions • Human Resources Management Interventions • Strategic Interventions

  26. Human Process Interventions • Process Consultation and Team Building • Third-party Interventions (Conflict Resolution) • Organization Confrontation Meeting • Intergroup Relationships • Large-group Interventions

  27. Technostructural Interventions • Structural Design • Downsizing • Reengineering • Parallel Structures • High Involvement Organizations • Total Quality Management • Work Design

  28. Human Resources Management Interventions • Goal Setting • Performance Appraisal • Reward Systems • Coaching and Mentoring • Career Planning and Development • Management and Leadership • Managing Work Force Diversity • Employee Wellness Programs

  29. Strategic Interventions • Transformational Change • Integrated Strategic Change • Organization Design • Culture Change • Continuous Change • Mergers and Acquisitions • Alliances and Networks

  30. Strategic Interventions • Transorganizational Change • Self-designing Organizations • Organization Learning and Knowledge Management • Built to Change Organizations

  31. Change Management Activities Motivating Change Creating Vision Effective Change Management Developing Political Support Managing the Transition Sustaining Momentum

  32. Motivating Change • Creating Readiness for Change • Sensitize the organization to pressures for change • Identify gaps between actual and desired states • Convey credible positive expectations for change • Overcoming Resistance to Change • Provide empathy and support • Communicate • Involve members in planning and decision making

  33. Creating a Vision • Discover and Describe the Organization’s Core Ideology • What are the core values that inform members what is important in the organization? • What is the organization’s core purpose or reason for being? • Construct the Envisioned Future • What are the bold and valued outcomes? • What is the desired future state?

  34. Developing Political Support • Assess Change Agent Power • Identify Key Stakeholders • Influence Stakeholders

  35. Change as a Transition State Desired Future State Current State Transition State

  36. Implementation and Evaluation Feedback Diagnosis Implementation Feedback Implementation of Intervention Evaluation Feedback Design and Implementation of Interventions Measure of Long-term Effects Measures of the Intervention and Immediate Effects Clarify Intention Plan for Next Steps Alternative Interventions

  37. Institutionalization Framework Organization Characteristics Indicators of Institutionalization Institutionalization Processes Intervention Characteristics

  38. Organization Characteristics • Congruence • Extent to which an intervention supports or aligns with the current environment, strategic orientation, or other changes taking place • Stability of Environment and Technology • Unionization

  39. Intervention Characteristics • Goal Specificity • Programmability • Level of Change Target • Internal Support • Sponsor

  40. Institutionalization Processes • Socialization • Commitment • Reward Allocation • Diffusion • Sensing and Calibration

  41. Indicators of Institutionalization • Knowledge • Performance • Preferences • Normative Consensus • Value Consensus

  42. Contingencies Influencing Structural Design Environment Worldwide Operations Organization Size Structural Design Organization Goals Technology

  43. The Downsizing Process • Clarify the organization’s strategy • Assess downsizing options and make relevant choices • Implement the changes • Address the needs of survivors and those who leave • Follow through with growth plans

  44. Downsizing Tactics

  45. The Reengineering Process • Prepare the organization • Specify the organization’s strategy and objectives • Fundamentally rethink the way work gets done • Identify and analyze core business processes • Define performance objectives • Design new processes • Restructure the organization around the new business processes.

  46. Characteristics of Reengineered Organizations • Work units change from functional departments to process teams • Jobs change from simple tasks to multidimensional work • People’s roles change from controlled to empowered • The focus of performance measures and compensation shifts from activities to results. • Organization structures change from hierarchical to flat • Managers change from supervisors to coaches; executives change from scorekeepers to leaders

  47. Characteristics of Transformational Change • Triggered by Environmental and Internal Disruptions • Aimed at Competitive Advantage • Systemic and Revolutionary Change • Demands a New Organizing Paradigm • Driven by Senior Executives and Line Management • Involves Significant Learning

  48. Integrated Strategic Change(ISC) Integrated Strategic Change ……… is a deliberate coordinated process that leads to gradually or radically systemic realignments between the environment and a firm’s strategic orientation resulting in improvement in performance and effectiveness.

  49. The Integrated Strategic Change Process Strategy S1 Strategy S2 Strategic Change Plan Organization O1 Organization O2 Implementation Strategic Analysis Strategic Choice

  50. ISC Application Stages • Strategic Analysis • Assess the readiness for change and top management’s ability to carry out change • Diagnose the Current Strategic Orientation • Strategic Choice • Top management determines the content of the strategic change • Designing the Strategic Change Plan • Development of a comprehensive agenda to achieve the change • Implementing the Strategic Change Plan

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