U 4.2 ob bba-ii organization change & development

Organization Change & Development

Subject- Organization Behavior

Unit-4

BBA-II

Why are these steps so important?

• If you skip the phase unfreezing, the change will meet resistant (old values will increase and lead to misunderstandings and a lack of trust) when prevailing forces are increased. Use for instance the FFA model to visualize!

• If you don’t base your decisions on a rigor and systematic process when making the actual change, and instead base your decisions on a hunch that yields a ”good enough” outcome (Resolve, Ackoff, 1981) and don’t involve all that are concerned by the change, the suggestions are often ill founded, when you lack important knowledge and/or an internal acceptance.

The 8-Step Process of Successful Change (Kotter, 1996)

SET THE STAGE • 1. Create a Sense of Urgency.

Help others see the need for change and the importance of acting immediately.

• 2. Pull Together the Guiding Team. Make sure there is a powerful group guiding the change—one with leadership skills, bias for action, credibility, communications ability, authority, analytical skills.

DECIDE WHAT TO DO• 3. Develop the Change Vision and Strategy.

Clarify how the future will be different from the past, and how you can make that future a reality.

MAKE IT HAPPEN• 4. Communicate for Understanding and Buy-in.

Make sure as many others as possible understand and accept the vision and the strategy.

• 5. Empower Others to Act. Remove as many barriers as possible so that those who want to make the vision a reality can do so.

• 6. Produce Short-Term Wins. Create some visible, unambiguous successes as soon as possible.

• 7. Don’t Let Up. Press harder and faster after the first successes. Be relentless with instituting change after change until the vision becomes a reality.

MAKE IT STICK• 8. Create a New Culture.

Hold on to the new ways of behaving, and make sure they succeed, until they become a part of the very culture of the group.

Criticisms of the OD Model for Change

OD cannot be applied in the same way across all cultures. Supposedly it is not suited to

high Power Distance, high Uncertainty Avoidance, and high Masculinity cultures.

• Power Distance focuses on the degree of equality, between people in the country's society. A high Power Distance ranking indicates that inequalities of power and

wealth have been allowed to grow within the society.

• Uncertainty Avoidance focuses on the level of tolerance for uncertainty and ambiguity within a society. A high Uncertainty Avoidance ranking indicates that the country has a low tolerance for uncertainty and ambiguity (people will tend to be heavily driven by laws and rules).

• Masculinity focuses on the degree to which the society reinforces, or does not reinforce, the traditional masculine work role model of male achievement, control and power. A high Masculinity ranking indicates that the country experiences a high degree of gender differentiation. “Money before relationships”.

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What is Organizational Change? (cont.)

• Targets of change include improving effectiveness at four different levels

– Human resources– Functional resources– Technological capabilities– Organizational capabilities

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• Typical kinds of change efforts directed at human resources include:

1. Investment in training and development

2. Socializing employees into the organizational culture

3. Changing organizational norms and values to motivate a multicultural and diverse work force

4. Promotion and reward systems

5. Changing the composition of the top management team

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• Change efforts directed at functional resources by transferring resources to the functions where the most value can be created in response to environmental change

• Change efforts directed at technological capabilities are intended to give an organization the capacity to change itself in order to exploit market opportunities

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• Change efforts directed at organizational capabilities alter organizational culture and structure, thereby permitting the organization to harness its human and functional resources to exploit technological opportunities

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Forces for Change

• Competitive forces: organization must make changes to attempt to match or exceed its competitors on at least one of the following dimensions:

– Efficiency– Quality– Innovation

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Forces for Change (cont.)

• Economic, political, and global forces: affect organizations by forcing them to change how and where they produce goods and services– Need to change organizational structure

to:• Allow expansion in foreign market• Adapt in a variety of national cultures• Help expatriates adapt to the cultural values

of where they are located

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Forces for Change (cont.)• Demographic and social forces: changes

in the composition of the workforce and the increasing diversity of employees has presented many challenges for organizations– Increased need to manage diversity

• Ethical forces: important for an organization to take steps to promote ethical behavior – Creation of ethics officer position– Encourage employees to report unethical

behaviors

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Resistances to Change• One of the main reasons for some

organizations’ inability to change is organizational inertia that maintains the status quo

• Resistance to change lowers an organization’s effectiveness and reduces its chances of survival

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Resistances to Change (cont.)

• Organization-level resistance to change stems from:

– Power and conflict • When change causes power struggle and

conflicts, there is resistance

– Differences in functional orientation– Mechanistic structure– Organizational culture

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• Group-level resistance to change stems from:

– Group norms– Group cohesiveness– Groupthink and escalation of commitment

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• Individual-level resistance to change stems from:

– Uncertainty and insecurity– Selective perception and retention– Habit

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Forces for and Resistances to Change

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Levin'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

– When forces for and against change are equal, the organization is in a state or inertia

– To change an organization, managers must increase forces for change and decrease forces resisting change

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Figure 10-2: Levin's Force-Field Theory of Change

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Evolutionary and Revolutionary Change in Organizations

• Evolutionary change: change that is gradual, incremental, and narrowly focused

• Revolutionary change: change that is sudden, drastic, and broadly focused

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Developments in Evolutionary Change

• Sociotechnical systems theory: a theory that proposes the importance of changing role and task or technical relationships to increase organizational effectiveness– Managers must fit or “jointly optimize” the

workings of an organization’s technical and social systems

– Managers need to be sensitive to the fact that the way they structure the work process affects the way people and groups behave

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Developments in Evolutionary Change (cont.)

• Total quality management (TQM): an ongoing and constant effort by all of an organization’s functions to find new ways to improve the quality of the organization’s goods and services– Quality circles: groups of workers who meet

regularly to discuss the way work is performed in order to find new ways to increase performance

– Changing cross-functional relationships is very important to TQM

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• Flexible workers: employees who have acquired and developed the skills to perform any of the tasks necessary for assembling a range of finished goods– Compensation frequently tied to the number of

different tasks that a person can perform– Workers can substitute for one another

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• Flexible work teams: a group of workers who assume responsibility for performing all the operations necessary for completing a specified stage in the manufacturing process– Team members jointly assign tasks and

transfer workers from one task to another

– Manager’s role is to facilitate the team’s activities

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Developments in Revolutionary Change

• Reengineering: involves rethinking and redesigning business processes to increase organizational effectiveness

– Instead of focusing on an organization’s functions, the managers of a reengineered organization focus on business processes

– Business process: any activity that cuts across functional boundaries and which is vital to the quick delivery of goods and services, or that promotes high quality or low costs

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Developments in Revolutionary Change (cont.)

• Reengineering (cont.)– Deliberately ignores the existing

arrangement of tasks, roles, and work activities

– Guidelines for performing reengineering successfully include:• Organize around outcomes, not tasks• Have those who use the output of the process

perform the process

• Decentralize decision making to the point where the decision is made

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Figure 10-4: Improving Integration in Functional Structure

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• E-engineering: refers to companies’ attempts to use information systems to improve their performance

• Restructuring: changing task and authority relationships and redesigning organizational structure and culture to improve organizational effectiveness

– Downsizing: the process of streamlining the organizational hierarchy and laying off managers and workers to reduce bureaucratic costs

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• Innovation: the process by which organizations use their skills and resources to:– Create new technologies– Develop new goods and services– Better respond to the needs of their

customers

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Managing Change: Action Research

• Action research: a strategy for generating and acquiring knowledge that managers can use to define an organization’s desired future state

– Used to plan a change program that allows the organization to reach that state

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Steps in Action Research

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Managing Change: Action Research (cont.)

• Steps in action research– Diagnosing the organization

• Recognize problems and need to solve problems– Gap perceived between actual and desired

performance

• A complex process to distinguish between symptoms and causes

– Determining the desired future state• A difficult planning process

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Managing Change: Action Research (cont.)• Steps in action research (cont.)

– Implementing action• Identify impediments to change• Decide who will be responsible for

making the changes and controlling the change process– External change agents: people who are

outside consultants who are experts in managing change

– Internal change agents: managers from within the organization who are knowledgeable about the situation to be changed

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Managing Change: Action Research (cont.)

• Steps in action research (cont.)– Implementing action (cont.)

• Decide which specific change strategy will most effectively unfreeze, change, and refreeze the organization– Top-down change: change that is

implemented by managers at a high level in the organization

– Bottom-up change: change that is implemented by employees at low levels in the organization and gradually rises until it is felt throughout the organization

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Managing Change: Action Research

• Steps in action research (cont.)– Evaluating the action

• Evaluating the action that has been taken and assessing the degree to which the changes have accomplished the desired objectives

– Institutionalizing action research• Necessary at all levels of management• Members at all levels must be rewarded for

their efforts

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Organizational Development (OD)

• Organizational development (OD): a series of techniques and methods that managers can use in their action research program to increase the adaptability of their organization

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Organizational Development (cont.)

• OD techniques to deal with resistance to change– Education and communication: inform

workers about change and how they will be affected

– Participation and empowerment: involve workers in change

– Facilitation: help employees with change– Bargaining and negotiation– Manipulation: change the situation to

facilitate change– Coercion: force workers to accept change

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• OD techniques to promote change– Counseling: help people understand how

their perception of the situation may not be right

• May learn how to manage their interactions with other people more effectively

– Sensitivity training: intense counseling in which group members, aided by a facilitator, learn how others perceive them and may learn how to deal more sensitively with others

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• Techniques to promote change (cont.)– Process consultation: a trained

consultant works closely with a manager on the job to help the manager improve his or her interactions with other group members

• Consultant acts as a sounding board

– Team building: an OD technique in which a facilitator first observes the interactions of group members and then helps them become aware of ways to improve their work interactions

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• Techniques to promote change (cont.)– Intercrop training: uses team building to

improve the joint activities of different functions or divisions

– Organizational mirroring: a facilitator helps two interdependent groups explore their perceptions of each other and their relations in order to improve their work interactions

• Each group takes turns describing the other group

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• Total organizational interventions– Organizational confrontation

meeting: brings together all of the managers of an organization to meet to confront the issue of whether the organization is effectively meeting its goals

ReferencesBook- Organization Behavior (Stephen Robbins)Book- Organization Behavior (Stephen Robbins)www.slideshare.net/.../organizational-behaviour-chapter-12-stephen-p-ro...https://books.google.co.in/books?isbn=8131724867wps.prenhall.com/wps/media/objects/5610/5745291/ppt/ob13_19.ppt

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