Chapter 8

1. Chapter 8 Managing Strategic Organizational Renewal

2. Chapter 8 Outline • HR’S role in organizational change • Managing organizational change and development • What to change • Strategic change • Cultural change • Structural change • Changes in people, attitudes, and skills • Technological change • Leading change: Lewin’s process

3. Chapter 8 Outline • Managing organizational change and development • A ten-step change process • Using organizational development • Human process applications • Technostructural interventions • Human resource management applications • Strategic applications

4. Chapter 8 Outline • Instituting total quality management programs • What is quality? • Total quality management programs • HR’s role in quality management • High-performance insight • HR and Six Sigma • HR and Baldrige awards • HR and ISO 9000

5. Chapter 8 Outline • Creating team-based organizations • The nature of self-directed teams and worker empowerment • How HR helps to build productive teams • High-performance insight • Strategic HR • HR and employee involvement programs

6. Chapter 8 Outline • HR and business process reengineering • What is business process reengineering? • HR’s role in reengineering processes • Building teams • Redesigning compensation • Redesigning the work itself • Moving from controlled to empowered jobs

7. Chapter 8 Outline • Flexible work arrangements • Flextime and compressed workweeks • Conditions for success • Compressed workweeks • Research insight • Other flexible work arrangements • HR.Net • Summary

8. After Studying This Chapter You Should Be Able To: • Explain and illustrate the steps in the change process • Reduce employee resistance to change • Describe the basic process for managing organizational change & development • Give specific examples of HR’s role in total quality management programs

9. After Studying This Chapter You Should Be Able To: • Show how companies use HR methods to create team-based organizations • Discuss the critical role of HR in business process reengineering • More effectively implement an organizational change

10. Strategic Overview • Select, train, and organize employees • Previously focused on the training and management development methods • Concepts and skills you need to more successfully implement organizational changes

11. Managing Change – What Do We Change? • Strategic change – a company’s strategy, mission and vision • Cultural change – a company’s shared values and aims • Structural change – reorganization • Developmental change – people’s attitudes and skills • Technological change – work methods

12. Cultural Change • Five ways to achieve cultural changes Make it clear to employees what you pay attention to, measure, & control React appropriately to critical incidents & organizational crises Deliberately role-model, teach & coach the values you want to emphasize Communicate priorities by how you allocate rewards & status HR procedures & criteria consistent with values you hold

13. Technological Change • Technology is a powerful engine of change • Creates change by modifying the work methods organizations use to do tasks • Results in reengineering work process • Must apply HR methods: • Teamwork • New job descriptions • Boosting skill & knowledge levels • More flexible work arrangements

14. Status Quo Change Lewin’s Process Leading Change • 3 steps • Unfreezing • Moving • Refreezing

15. Urgency Mobilize commitment Create a guiding coalition Develop a shared vision Communicate that vision Ten-step Change Process

16. Monitor progress & adjust vision Anchor new ways in culture Consolidate gains Generate short-term wins Help make the change Ten-step Change Process

17. An Example of ChangePECO Energy • Visioning event • List five critical processes • Town hall meetings with all HR groups • Resulted in changes to five processes • Organizational design event • Implementation

18. Using OrganizationalDevelopment Definition • Organizational development is a special approach to organizational change in which the employees themselves formulate the change that’s required and implement it, often with the assistance of a trained consultant

19. Four DistinguishingCharacteristics of OD • Action research • Behavioral science knowledge • Attitudes, values and beliefs • Changes organization in a direction

20. Four Types of OD Applications • Human process applications • Technostructural interventions • Human resource management applications • Strategic applications OD interventions & organizational levels

21. Human Process Applications • Aim first at improving human relations skills • Provide insights and skills required to better analyze behaviors • A facilitator uses survey research to solve problems & plan action

22. Human Process Applications • Sensitivity, laboratory, or T-group training are used minimally today • Team building can improve effectiveness • Confrontation meetings resolve misconceptions

23. Using OD to Increase Productivity • Technostructural interventions • HR management applications use action research • Strategic applications harmonize

24. TotalQualityManagement Definition • Total quality management (TQM) is a type of program aimed at maximizing customer satisfaction through continuous improvements Continuous improvement Zero defects 6  Kaizen

25. Total Quality Management Programs • Qualityis thetotality of features & characteristics of a product or service that bear on its ability to satisfy given needs • Quality measures how well a product or services meets a customers needs • ISO 9000 provides written quality standards to which products must comply

26. HR’s Role in Quality Management - Insight • Friendly phone staff is key to customer service at Lands’ end • Result of extensive screening & training • Must love to talk • All aspects of phone etiquette trained • Results in fast, friendly service

27. 6 Sigma aims for 3.4 defects per million processes To achieve this can be intense but very rewarding Baldrige awards determined by a board of quality experts in 7 areas 6 & Baldrige Awards

28. Creating Team Based Organizations • 82% of U.S. Companies use teams to perform some tasks • Self-directed teamshave several distinguishing characteristics: • Perform naturally interdependent tasks • Use consensus decision making • Team’s members perform enriched jobs • Teams are also highly trained • Employers empower the teams & individual members

29. Entrepreneurs + HR - Empowerment • Time Vision finds employee empowerment works well in cases that directly involve employees • Team investigates which retirement vehicle to use & has responsibility to switch to it • Finds empowerment requires right employee and correct training

30. How to Build Productive Teams • Establish demanding performance standards • Select members for attitudes and skills • Train leaders to “coach,” not “boss” • Use positive feedback • Select those who like teamwork • Train, train, and train some more • Cross-train for flexibility

31. Insight – Product Improvement Teams Identify & correct problems Need to be proactive Achieve continuous improvement Roadmaps guide progress

32. Strategic HR – Signicast Uses a Team Approach Implement ideas Employee suggestions Validate with employees

33. Employee Involvement Programs Definition • An employee involvement program, a team activity,is any formal program that lets employees participate in formulating important work decisions or in supervising their own work activities • Managers rank them as great productivity boosters

34. How to Create a Culture of Involvement & Participation • Educate all regarding business plans • Devote resources to build the necessary HR systems • Involve unions as partners • Involve in designing and implementing new systems • Train in new technologies

35. Promote employees’ continuous communication Involve employees in assessing effects of new technology Use telecommunications How to Create a Culture of Involvement & Participation

36. Extending Decision Making Abroad • Prior to extending the work team approach abroad focus on these goals: • Build trust • Be aware of cultural differences • Create blended strategies

37. Business Process Reengineering (BPR) “The fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service, and speed.” … Quote by experts Michael hammer & James Champy “Why do we do what we do?” Why do we do it the way we do?”

38. Several jobs combined into 1 1 Workers make more decisions 2 Reduce checks, controls to boost efficiency 3 “Case manager” approach 4 Steps in BPR Check out

39. HR’s Role in Reengineering Process • Help build commitment • Promote team building • Redesign compensation • Redesign the work itself • Create empowered jobs Visit

40. Flexible Work Arrangements • Organizational renewal does not require massive change • Flextime allows workers to build their day around core midday hours • Compressed workweeks offer longer workdays but fewer of them

41. Flextime

42. How to Make Flextime Successful • Use supervisory indoctrination programs • Most successful with clerical, professional, & managerial jobs • Most flexible programs are successful • Use a project director • A pilot program may be needed

43. Discussion – How Effective Are Flexible Work Programs? • What do you think? • Do flextime and compressed scheduling help or hurt workers? • What about a 12- hour shift that Dupont tried at its plants in Texas? • Can you think of any other flexible work options?

44. More Flexibility • Job sharing – two or more people share a single full time job • Work sharing – a temporary group work-hour reduction during economic slowdowns • Work from home or telecommuting – using the internet to “phone in” your work

45. Telecommuting • You can’t be a hermit when you telecommute • Its all about staying connected & in touch by using PC’s & laptops, text pagers, cell phones, e-mail, voice & fax messages, & PDA’s

46. Summary of Chapter 8 • Managers lead by changing strategy, culture, structure, tasks, technologies, or attitudes • Use a ten-step process for organizational change • We saw a number of OD applications to promote change

47. Summary of Chapter 8 • Quality is key to success – use TQM to achieve it • Teamwork or super-teams boost productivity • Reengineering results in fundamental changes • The most flexible work arrangements provide the greatest benefit