2. Organizational Change
Organizational change is the process by which
organization move from their present state to some
desired future state to increase effectiveness.
When an organization system is disturbed by some
internal or external forces change frequently occur or any
alteration which occur in the overall work environment of
an organization.
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3. CHARACTERSTICS OF O.C.
Change happen for the pressure of both internal and
external forces in the organization.
Change in any part of the organization affect the whole
organization.
Change may affect people , structure, technology, and
other element of the organization.
Change also affect the rate of speed and degree of
significance of the organization.
Change may be reactive or proactive.
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4. The Evolution of Starbucks
In the beginning they had only just a shop that
sold some selected coffee beans.
As Starbucks growing, they realized that the
informal techniques were not sufficient and Howard Schultz
needed to have a more formalized with people
and places.
Now Starbucks was the biggest coffee chain
network in the world with more than 15000 Dave Olsen
shops in over 44 countries. And they grown too
fast.
They adopting the Italian culture and make some
important changes in organization.
Exploring Behavior in Action Dawn Pinaud
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6. Internal Pressures for Change
Work force Avoid developing
inertia
Managerial Management
personnel structure
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7. External Pressures for Change
Technological Political
advances Forces
Marketing Social
conditions changes
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8. Companies’ Responses
Managerial
to Pressures for “Green”
Advice
Policies and Practices
Taking as it positive way:
It create a healthy image in customers.
It help in cost cutting.
Energy saving in the office.
Help in reducing carbon in environment.
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9. Change Agents
• A Persons in organization responsible for
managing change activities.
• Can be managers or non managers, current
employees, newly hired employees or outside
consultants.
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10. Process of Planned Change
Kurt Lewin
Unfreezing Moving Refreezing
• Provide rationale • Provide information • Implement new
for change that suspects evaluation systems
• Create minor proposed changes • Implement new
levels of • Bring about actual hiring and promotion
guilt/anxiety about shifts in behavior systems
not changing
• Create sense of
psychological
safety concerning
change
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11. Coca-Cola Is Finding a New Fizz
Experiencing
Strategic OB
Neville Isdell Sandy Douglas
Coca-Cola is changing its culture,
and
also enhance its product line to better
satisfy the demand of customers.
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12. Speed of Change
Urgency
Degree of support
Criteria to Amount and complexity of change
Consider Competitive environment
Knowledge and skills available
Financial and other resources
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13. Resistance to Change
Effort to block new
ways of doing things
Four Factors
Individual
Resistance
Group
Resistance
Organizational
Resistance
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14. Individual Resistance
•Below are stated some reasons why people resists
changes. Some of these appear to be rational or
emotional. These reasons are:-
•Economic factors
•Habits
•Insecurity
•Lack of communication
•Extend of change
•Psychological factors
•Social factors
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15. Group Resistance
Most organizational changes have
impact on formal groups in the
organization the main reason
why the groups resists change is
that they fear that their cohesiveness
or existence is threatened by it.
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16. Organizational Resistance
Organizational resistance means the change is
resisted at the level of the organization itself.
Some organization are so designed that they resist
new ideas, this is specifically true in case of
organization which are conservative in nature.
Majority of the business firm are also resistance to
changes. The major reason for organizational
resistance are:-
•Threat to power
•Group inertia
•Organizational structure
•Threat to specialization
•Resource constants
•Sunk costs 14-16
17. Minimizing Resistance to Change
Communication • Highest priority and first
strategy for change
• Improves urgency to
change
• Reduces uncertainty
(fear of unknown)
• Problems -- time
consuming and costly
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18. Minimizing Resistance to Change
Communication • Provides new knowledge
and skills
Training
• Includes coaching and
action learning
• Helps break old routines
and adopt new roles
• Problems -- potentially
time consuming and
costly
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19. Minimizing Resistance to Change
Communication • Increases ownership of
change
Training
• Helps saving face and
Employee reducing fear of
Involvement unknown
• Includes task forces,
search conferences
• Problems -- time-
consuming, potential
conflict
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20. Minimizing Resistance to Change
Communication • When communication,
training, and
Training involvement do not
resolve stress
Employee
Involvement • Potential benefits
Stress
• More motivation to
Management change
• Less fear of unknown
• Fewer direct costs
• Problems -- time-
consuming, expensive,
doesn’t help everyone
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21. Minimizing Resistance to Change
Communication
Training • When people clearly
lose something and
Employee won’t otherwise support
Involvement change
Stress
Management
• Influence by exchange--
reduces direct costs
Negotiation • Problems
• Expensive
• Increases compliance,
not commitment
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22. Minimizing Resistance to Change
Communication
Training
• When all else fails
Employee
Involvement • Assertive influence
Stress • Firing people -- radical
Management form of “unlearning”
Negotiation
• Problems
• Reduces trust
Coercion
• May create more subtle
resistance
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23. Organization Development (OD)
A planned, organization-wide,
continuous process designed to
improve communication, problem
solving, and learning through the
application of behavioral science
knowledge
• Planned change
• Long range change
• Problem solving
• Team building
• Feedback 14-23
24. Basic Organization Development
Model
Diagnosis of
Situation
Introduction of
Feedback
interventions
Progress
Monitoring
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25. Organization Development
Interventions
Organization
Development
Relationship Techniques Structural Techniques
Job Redesign
T-group Training
Management by Objectives
Team Building
Supplemental Organizational
Survey Feedback
Processes
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Technological advances - Can lead to incremental or radical changes in how services and products are designed, produced, and delivered. Technology that is inconsistent with existing culture may cause resistance to change among managers and associates. Introduction and removal of government regulations - Firms in deregulated industries typically must adapt to a more competitive environment. Firms that prosper in a regulated environment may fail in one that is deregulated Changes in societal values - Changing values influence consumer purchases. Society’s values are evidenced in employee attitudes, behaviors, and expectations. Society’s values are represented in government regulations. Shifting political dynamics – political pressures – both national and international – can influence organizational operations. The political philosophy of those elected to office, interpretation of legislation, and government policies play a role. Changes in demographics - May cause alteration of internal practices to ensure fair treatment for people of all races and ages. Growing international interdependence – Reliance on imports, various treaties, and the impact of struggles and conflicts in other countries.
Technological advances - Can lead to incremental or radical changes in how services and products are designed, produced, and delivered. Technology that is inconsistent with existing culture may cause resistance to change among managers and associates. Introduction and removal of government regulations - Firms in deregulated industries typically must adapt to a more competitive environment. Firms that prosper in a regulated environment may fail in one that is deregulated Changes in societal values - Changing values influence consumer purchases. Society’s values are evidenced in employee attitudes, behaviors, and expectations. Society’s values are represented in government regulations. Shifting political dynamics – political pressures – both national and international – can influence organizational operations. The political philosophy of those elected to office, interpretation of legislation, and government policies play a role. Changes in demographics - May cause alteration of internal practices to ensure fair treatment for people of all races and ages. Growing international interdependence – Reliance on imports, various treaties, and the impact of struggles and conflicts in other countries.
“ Unfreezing” starts on mouse click followed by text after one second. Arrow starts on mouse click followed by “moving” and then text after one second each. Arrow starts on mouse click followed by “refreezing” and text after one second each. Unfreezing – A phase in the change process in which leaders help managers and associates move beyond the past by providing a rationale for change, by creating guilt and/or anxiety, and by creating a sense of psychological safety concerning the change. Tactics for unfreezing include: Reminding individuals that they have successfully changed in the past Communicating to individuals that managers and associates in other organizations in similar circumstances have successfully changed Letting individuals know that support and training will be available for the specific changes to be made Moving – A phase in the change process in which leaders help to implement new approaches by providing information that supports proposed changes and by providing resources and training to bring about actual shifts in behavior. Refreezing - A phase in the change process in which leaders lock in new approaches by implementing evaluation systems that track expected behaviors, by creating reward systems that reinforce expected behaviors, and by ensuring that hiring and promotion systems support the new demands.
Coca Cola logo has a soda can fizz sound when it enters. The other graphics follow automatically. Text comes in on mouse clicks.
Criteria to consider flies in from left with a whoosh sound. Arrows come in on mouse clicks followed automatically by the text after one second, Urgency – If the change is urgent, a faster pace is warranted. Degree of support – If the change is supported by a wide variety of people at the outset, a faster pace can be used. Amount and complexity of change – If the change is small and simple, a faster pace often can be used, but if the change is large, more time may be required. Competitive environment – If competitors are poised to take advantage of existing weaknesses, a faster pace should be considered. Knowledge and skills available – If the knowledge and skills required by the new approach exist in the firm or can be easily acquired, a faster pace can be used. Financial and other resources – If the resources required by the change are on hand or easily acquired, a faster pace can be considered.
Banner stretches across on mouse click and hides on next mouse click. Man with four factors dissolves in on mouse click. Time bombs zoom in automatically at one second intervals. Resistance to change – Efforts to block the introduction of new approaches. Some of these efforts are passive in nature, involving such tactics as verbally supporting the change while continuing to work in the old ways; other efforts are active in nature, involving tactics such as organized protests and sabotage. Lack of understanding – Communicate clearly what the change entails. Different assessments – Include potential or actual resisters in the decision-making process. Self-interest – Reason with resistors, transfer or coerce them. Low tolerance for change – Offer or assure support for the resistors during the learning process.
Diagnosis of Situation - Diagnostic devices for managers include interviews, surveys, group sociometric devices, process-oriented diagnosis, and accurate records (for example, performance records). Introduction of interventions - Organization development interventions include t-group training, team building, and job redesign. Progress Monitoring - Surveys and other techniques may be reused to determine what progress has been made toward solving the problem. The main criterion for evaluation is whether the original objective has been accomplished.
Each one stretches across on mouse click. T-group training – Group exercises in which individuals focus on their actions, how others perceive their actions, and how others generally react to them; participants often learn about unintended negative consequences of certain types of behaviors. Team building - A process in which members of a team work together and with a facilitator to diagnose task, process, and interpersonal problems within the team and create solutions. Survey feedback - Data obtained from questionnaires; managers receive the data for their units and are expected to hold unit meetings to discuss problems.
Each one zooms in on mouse click. Job redesign - Enlargement or enrichment of jobs; enrichment is the better method to enhance motivation for effective problem solving, communication, and learning. Management by objectives (MBO) - A management process in which individuals negotiate task objectives with their managers and then are held accountable for attainment of the objectives. Supplemental organizational processes - Processes in which associates and/or managers have ongoing meetings for the purpose of identifying and solving important problems.