Organizational Change Final

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    CONTENT

    Introduction to

    Organizational change.Processes for managingchange.

    People and change.

    OrganizationalDevelopment

    Conflict resolution

    Fostering innovation

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    INTRODUCTION

    TO

    ORG.CHANGE.

    An alteration of an organizationsenvironment, structure, culture,technology, or people

    A constant force

    An organizational reality

    An opportunity or a threat

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    ODEL :

    MANAGING

    ORGANIZATIONAL

    CHANGE

    F rces initiating

    changes

    Change Agent

    What is to be

    changed ?

    Change ProcessImplementation

    Tactics

    Change

    Organizational

    Effectiveness

    Feedback

    eterminants

    rg. Initiator

    tervention

    rategies

    mplementati

    n

    Result

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    DETERMINANTSOF

    STRUCTURAL CHANGE

    External Forces Internal Forces

    Competition Laws andregulations.

    Strategy modifications.

    New technologies. New equipment & process

    Labor market shifts. Work force & jobrestructuring

    Business cycles. Compensation and benefits

    Social change. Labor surpluses and

    shortages

    -- Employees attitude.

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    ORGANIZATIONAL

    INITIATOR

    Who Initiates structuralchange ?

    CHANGE AGENTS

    It act as the intermediaries between the

    forces initiating changes and the choice of

    an intervention strategy

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    INTERVENTION

    STRATEGIES

    Structure

    Technology

    People

    Organizational

    Process

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    IMPLEMENTATION

    LEWINS THREE STEP

    UNFREEZING

    esistance to change lessened,need for change created

    (Equilibrium disturbed)

    MOVING

    From old behaviour

    to the new

    (Changes)

    REFREEZING

    Change made

    permanent

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    Unfreezing

    The driving forces, which directbehavior away from the status

    quo, can be increased. The restraining forces, which

    hinder movement from theexisting equilibrium, can bedecreased.

    The two approaches can becombined.

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    MOVING

    Making the actual changes to move

    to the new state of existence.

    Includes the development of new

    strategies, structures, systems &

    responsibilities and the shedding of

    old ones.

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    REFREEZING

    Stabilizing, institutionalizing thechanges.

    Making sure the organization doesn't

    go backwards to the old state.

    Reinforcement of the changes through

    symbols, such as changed logos, dress,

    building design, structures.

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    A NINE-STEP PROCESS

    FOR LEADING

    ORGANIZATIONALCHANGE.

    1. Create a Sense of Urgency

    2. Decide What to Change

    3. Create a Guiding Coalition and Mobilize

    Commitment

    4. Develop and Communicate a SharedVision

    5. Empower Employees to Make the

    Change.

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    6. Generate Short-Term Wins

    7. Consolidate Gains and Produce More

    Change

    8. Anchor the New Ways of Doing Things

    in the Company Culture

    9. Monitor Progress and Adjust the Vision

    as Required.

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    WHY PEOPLE

    RESIST

    CHANGE

    ?

    Individual resistance

    Organizational resistance

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    INDIVIDUAL

    RESISTANCE

    Individualresistance.

    Fear ofunknown

    Selectiveinformationprocessing

    Habit

    security

    Economicfactor

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    ORGANIZATIONAL

    RESISTANCE

    Organizational

    resistance

    Threat toestablished

    resources

    allocation

    Structural

    inertia

    Limited

    focus ofchange

    Group inertia

    Threat to

    expertise

    Threat

    toestablished

    pawer

    relationships

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    DEALINGWITH

    CHANGE.

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    BARRIERSTO

    EMPOWERMENT.

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    ORGANIZATIONAL

    DEVELOPMENT

    Organizational

    Development (OD) An approach to organizational

    change in which the employees

    themselves formulate the change

    thats required and implement it,usually with the aid of a trained

    consultant.

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    WHY ORGANISATION DEVELOPMENT

    IS SO IMPORTANT

    The volume of change in many organisations

    is massive

    The economic scene places demands on

    managers while they are reluctant to change

    from tried and tested methods

    The role of management is changing and new

    models are needed

    Change management takes time

    Some changes challenge basic assumptions,

    for example, the role of supervisory staff

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    The need for control remains - the skill is

    remaining in control when so much change

    is going on.

    More comprehensive strategic pictures are

    needed which integrate different changes

    in the organization and alleviate confusion.

    Organization design and re-design are as

    important and necessary as product,process or system design and are the

    responsibility of management and people

    in organizations, not just specialists.

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    OD INTERVENTIONS

    (CONTD)

    Team Building

    The process of improving the effectiveness of a

    team through action research or other techniques.

    Survey Research

    The process of collecting data from attitudesurveys filled out by employees of anorganization, then feeding the data back toworkgroups to provide a basis for problemanalysis and action planning.

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    TECHNOSTRUCTURAL

    APPLICATIONSOF OD

    Formal Structure Change Program

    An intervention technique in whichemployees collect information on existing

    formal organizational structures and

    analyze it for the purpose of redesigning

    and implementing new organizational

    structures.

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    STRATEGIC

    APPLICATIONSOF

    OD

    Strategic Intervention

    An OD application aimed at effecting asuitable fit among a firms strategy,

    structure, culture, and external

    environments.

    Integrated Strategic Management An OD program to create or change a

    companys strategy by:

    Analyzing the current strategy

    Choosing a desired strategy

    Designing a strategic change plan

    Implementing the new plan

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    ORGANIZATIONAL

    STRESSORS:

    ROLE DEMANDS

    Role conflicts

    Work expectations that arehard to satisfy.

    Role overload

    Having more work toaccomplish than timepermits.

    Role ambiguity When role expectations are

    not clearly understood.

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    CONFLICT

    HANDLING STYLES

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    CONFLICT

    RESOLUTION MODES

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    STIMULATING

    INNOVATION

    Creativity

    Innovation

    Process of Innovation

    Perception Incubation

    Inspiration

    Innovation

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    TRUCTURAL

    VARIABLES

    AFFECTING

    INNOVATION Organic structures

    Positively influence innovation through less work

    specialization, fewer rules and decentralization.

    Easy availability of plentiful resources

    Allow management to purchase innovations, bear

    the cost of instituting innovations, and absorbfailures.

    Frequent inter-unit communication

    Helps to break down barriers to innovation by

    facilitating interaction across departmental lines.

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