Organizational Change

1. Organizational Change

2. What is Organizational Change? • The process by which organizations move from their present state to some desired future state to increase their effectiveness

3. Workforce World Politics Technology Forces For Change Social Trends Economic Shocks Competition

4. General Model of Planned Change Evaluating and Institutiona- lizing Entering and Contrac- ting Planning and Implemen- ting Diagno- sing

5. Different Types of Planned Change • Type of Change • Evolutionary • Revolutionary • Magnitude of Change • Incremental • Quantum • What impact would these different types of changes have on any change initiative?

6. Evolutionary Change Revolutionary Change Gradual Rapid Incremental Dramatic Narrowly-focused Broadly-focused Managing Planned Change

7. Evolutionary Change Revolutionary Change Socio-tech systems Re-engineering TQM Restructuring Empowered work grps Innovation Instruments of Change

8. Lewin’s Three-Step Process Lewin’s Change Model Changing Refreezing Unfreezing

9. Lewin’s Change Model Unfreezing -involves encouraging individuals to discard old behaviors by shaking up the equilibrium state that maintains the status quo Moving -new attitudes, values, and behaviors are substituted for old ones Refreezing -involves the establishment of new attitudes, values, and behaviors as the new status quo

10. Lewin’s Force-Field Theory of Change • Theory of change which argues that two sets of opposing forces within an organization determine how change will take place • Forces for change and forces making organizations resistant to change • To change an organization, managers must increase forces for change and decrease forces resisting change

11. Driving Forces Unfreezing the Status Quo Desired State Restraining Forces Status Quo Time

12. Force Field Analysis Driving forces Resisting forces High perf. goals Group norms for output New equipment Familiar equipment Competition Complacency Need to learn new skills Employees with new skills Fear of reduced rewards Desire for higher rewards Current level of group performance Desired level of group performance

13. No Change Discontinuous Change Sporadic Change Continuous Change Change & Resistance Forces Strong Resistance Forces Weak Weak Strong Change Forces

14. Resistance to Change - Individual Selective Information Processing Force of Habit Individual Fear of the Unknown Need for Security Economic Factors

15. Resistance to Change-Organisation Group Inertia Threat to Existing Relationships Structural Inertia Organizational Threat to Existing Allocations Limited Focus of Change Threat to Expertise

16. Employee Readiness for Change Perceived Personal Risk from Change Low High Moderate to indeterminate readiness High High readiness Level of Dissatisfaction with the Current Situation Moderate to indeterminate readiness Low readiness Low

17. Overcoming Resistance to Change Education and Communication Participation Negotiation Facilitation and Support Manipulation and Cooptation Coercion

18. Managing Change: It’s Culture Bound! • Does culture influence change? • Does culture influence resistance? • Does culture influence implementation? • Does culture influence idea champions / change agents ?

19. Requirements for Successfully Changing Organizational Culture • Understand the old culture first. • Support employees and teams who have ideas for a better culture and are willing to act on those ideas. • Find the most effective subculture in the organization and use it as a model. • Use the vision of a new culture as a guide for change. • Recognize that significant cultural change takes time. • Live the new culture.

20. Issues to Address in ChangingOrganizational Culture • Capitalize on dramatic opportunities. • Combine caution with optimism. • Understand resistance to cultural change. • Change many elements, but maintain some continuity. • Recognize the importance of implementation. • Modify socialization tactics. • Find and cultivate innovative leadership.

21. Initiatives Contributing to Effective Change Management Motivating Change Creating a Vision Developing Political Support Effective Change Management Managing the Transition Sustaining Momentum

22. Change Paradigm • Things that do not change • Things that change naturally • Things that change constantly • Things that need change