Organizational Change Final
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Transcript of 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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