Modern Management 9 th edition

1. . Modern Management9th edition

2. . Ü Objectives • A working definition of changing an organization • An understanding of the relative importance of change and stability to an organization • Some ability to recognize what kind of changes should be made within an organization • An appreciation for why the people affected by a change should be considered when the change is being made • Some facility at evaluating change • An understanding of how organizational change and stress are related • Knowledge about virtuality as a vehicle for organizational change

3. FUNDAMENTALS OFCHANGING AN ORGANIZATION . • Defining Changing an Organization • The Importance of Change • General Motors' “think list”: • 1. Can a machine be used to do a better or faster job? • 2. Can the fixture now in use be improved? • 3. Can handling of materials for the machine be improved? • 4. Can a special tool be used to combine the operations? • 5. Can the quality of the part being produced be improved by changing the sequence of the operation? • 6. Can the material used be cut or trimmed differently for greater economy or efficiency? • 7. Can the operation be made safer? • 8. Can paperwork regarding this job be eliminated? • 9. Can established procedures be simplified? • Change Versus Stability

4. FUNDAMENTALS OFCHANGING AN ORGANIZATION . Adaptation, stability, and organizational survival Figure 13.1

5. FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION . The collective influence of five major factors on the success of changing an organization Figure 13.2

6. FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION . • The Change Agent • Determining What Should Be Changed • Organizational effectiveness depends on: • 1. People - attitudes, leadership skills, communication skills • 2. Structure - organizational controls, such as policies and procedures • 3. Technology - equipment or processes that assist in job performance

7. FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION . Determination of organizational effectiveness by the relationship of people, technological, and structural factors Figure 13.3

8. FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION . • The Kind of Change to Make • Structural Change • Describing Structural Change • 1. Clarifying and defining jobs • 2. Modifying organizational structure to fit communication needs • 3. Decentralizing organization to reduce cost of coordination • Increase controllability of subunits • Increase motivation • Gain greater flexibility • Matrix Organizations • Making the Change to Matrix: An Example

9. FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION . Portion of a traditional organizational structure based primarily on product line Figure 13.4

10. FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION . Traditional organization chart transformed into matrix organization chart Figure 13.5

11. FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION . • The Kind of Change to Make (con’t) • People Change • Describing People Change:Organization Development (OD) • Grid OD • The Ideal Style • Main Training Phases

12. FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION . The managerial grid Figure 13.6

13. FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION . • The Kind of Change to Make (con’t) • People Change (con’t) • The Status of Organization Development • Weaknesses in OD efforts: • 1. Effectiveness difficult to evaluate • 2. Generally too time-consuming • 3. Objectives commonly too vague • 4. Total costs difficult to gauge at time program starts • 5. OD programs are generally too expensive • Improve the quality of OD efforts by: • 1. Systematically tailor to meet the specific needs of organization • 2. Continually demonstrate how people should change their behavior • 3. Conscientiously change reward systems

14. FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION . • Individuals Affected by the Change • Resistance to Change • Reducing Resistance to Change • 1. Avoid surprises • 2. Promote real understanding • Will I lose my job? • Will my old skills become obsolete? • Am I capable of producing effectively under the new system? • Will my power and prestige decline? • Will I be given more responsibility than I care to assume? • Will I have to work longer hours? • Will it force me to betray or desert my good friends? • 3. Set the stage for change • 4. Make tentative change • Test reactions to new situation before committing to it • Acquire more facts to base attitudes and behavior toward change • Review and modify some of the preconceptions • Less likely to regard the change as a threat • Management evaluates and modifies before carrying out

15. FACTORS TO CONSIDER WHEN CHANGING AN ORGANIZATION . • Evaluation of the Change • Additional change is justified if it: • 1. Further improves the means for satisfying someone’s economic wants • 2. Increases profitability • 3. Promotes human work for human beings • 4. Contributes to individual satisfaction and social well-being

16. CHANGE AND STRESS . • Defining Stress • The Importance of Studying Stress • Effects on health, concentration, and decision-making • Employee absenteeism and turnover • Safety of other workers or even the public • Cost to organizations

17. CHANGE AND STRESS . • Managing Stress in Organizations • Understanding How Stress Influences Worker Performance • Identifying Unhealthy Stress in Organizations • Observable symptoms of undesirably high stress levels: • •Constant fatigue •Temper outbursts • •Low energy •Compulsive eating • •Moodiness •High levels of anxiety • •Increased aggression •Chronic worrying • •Excessive use of alcohol

18. CHANGE AND STRESS . The relationship between worker stress and the level of worker performance Figure 13.7

19. CHANGE AND STRESS . • Managing Stress in Organizations (con’t) • Helping Employees Handle Stress • Reducing Stressors in the Organization • 1. Create an organizational climate • that is supportive of individuals • 2. Make jobs interesting • 3. Design and operate career counseling programs

20. VIRTUALITY . • Defining a Virtual Organization • Degrees of Virtuality • The Virtual Office • Defining a Virtual Office • Occasional Telecommuting • Hoteling • Tethered in Office • Home-Based, Some Mobility • Fully Mobile • Reasons for Establishing a Virtual Office • Challenges to Managing a Virtual Office

21. VIRTUALITY . Continuum of alternative work arrangements Figure 13.8

22. Chapter Thirteen ? Questions