3. Change is Triggered by Environmental and Internal
Disruptions
Change is Initiated by Senior Executives and Line
Managers
Change is Systematic and Revolutionary
Change involves Significant Learning and a New
Paradigm
Change Involves Multiple Stakeholders
6. DESIGN ALTERNATIVES
Parameters Mechanistic Design Organic Design
Strategy
• Cost Minimization • Innovation
Structure • Formal/ Hierarchical
• Functional
• Flat, Lean, Flexible
• Matrix, Process and Network
Work Design • Traditional Jobs
• Traditional Work Groups
• Enriched Jobs
• Self Managed Teams
HR Practices • Selection to fit job
• Up-front Training
• Standard reward mix
• Pay for performance and individual
merit
• Job-Based Pay
• Selection to fit organisation
• Continuous Training
• Individual choice reward
• Pay for performance & business
Success
• Skill-based pay
Management
Processes
• Centralized decision making
• Top Down Goal Setting &
Communication
• Employee Involvement
• Transparent Information
7. DESIGN CHARACTERISTICS FOR WORLDWIDE STRATEGIC ORIENTATIONS
Worldwide strategic
Orientation
Business Strategy Structure Management Processes Human Resources
International
• Existing Products
• Goals for Increased
foreign revenues
• International Division • Loose but centralized
learning orientation
• Volunteer Recruitment
• Retain existing
performance management
processes
Global
• Standardized products
• Goals of efficiency
through volume
• Global Product divisions
• Global functions
• Formal & Centralized • Ethnocentric Selection
• Rewards for enterprise
performance
Multi-national
• Tailored Products
•Goals of local
responsiveness
specialization
• Decentralized
Operations & Centralized
Planning
• Global Geographic
Division
• Profit Centers • Re-giocentric & Poly-
centric selection
• Rewards for regional
performance
Transnational
• Tailored Products
• Goals of learning and
responsiveness through
integration
• Decentralized,
worldwide coordination
•Global Matrix/ network
• Subtle, clan-oriented
controls learning
orientation
• Geocentric Selection
10. INTEGRATED STRATEGIC CHANGE (ISC)
Integrated Strategy Change is process that leads an organization
through a realignment between dynamic environment and a firms
strategic orientation that results in improvement of performance and
effectiveness
It includes transformations in organizational strategies and designs
Helps managers manage transition between current strategic orientation
and desired future orientation
11. KEY FEATURES OF ISC
Strategic Orientation
(Strategy and Org. Design)
Creating the Strategic Plan
(Planning and Implementation)
Integrating Individuals and Groups into
the Process
(Analysis, Planning & Implementation)
15. CULTURE CHANGE
Culture change emphasizes the influence
of cultural capital on individual and community
behavior. It has been sometimes called
repositioning of culture, which means the
reconstruction of the cultural concept of a society.
Difficult problems for collecting pertinent
information:
1. Culture Basic Assumptions are taken
for granted and are less communicated.
Espoused Values
2. Values and Beliefs
Values In Use
3. Subcultures: Differential cultures
16. CULTURE COMPONENTS
Artifacts- Includes member behaviors clothing,
language, the organization design features, including
structures, systems and processes; and the organization
physical arrangements, such as décor, office space
layouts and appointments and noise levels.
Norms and Values- Norms guide how members should
behave in particular situations. Values are next deeper
level of awareness and include beliefs about what ought
to be in the orgs.
Basic Assumptions- Tell members how to perceive,
think and feel about things. They are non-confrontable
and nondebatable assumptions about relating to the
environment and about human nature, human activity
and human relationships.
17. IMPLEMENTING CULTURE CHANGE PROCESS
Formulate a clear strategic vision
Display top management commitment
Model culture change at the highest levels
Modify the organization to support organizational
change
Select and socialize newcomers and terminate
deviants.
Artifacts- visible symbol of deeper levels of culture, such as norms, values and basic assumptions. Includes member behaviors clothing, language, the org. design features, including structures, systems and processes; and the org. physical arrangements, such as décor, office space layouts and appointments and noise levels.
1st diagnosis: groups of people are asked to generate lists of language patterns, clothing norms, office arrangements and design features. By this, artifacts can provide a great deal of information about the real culture of the org. because they often represent deeper assumptions. Difficulty is in Interpretation while culture analysis.
2nd diagnosis: emphasizes the pattern of behaviors that produce business results. Assesses the key behaviors that can be observed. Provides specific descriptions about how org. perform tasks and manage relationships.
Norms and Values- norms guide how members should behave in particular situations. They are generally inferred from observing how members behave and interact with each others. Values are next deeper level of awareness and include beliefs about what ought to be in the orgs. Values in use, as opposed to espoused values, tell members what is important in the org and what deserves their attention.
Diagnosis: Values: a value dilemma consists of contrary values placed at the opposite ends of a continuum. Two value dilemmas are 1.) internal focus and integration versus external focus and differentiation 2.) flexibility and discretion versus stability and control.
Basic assumptions- tell members how to perceive, think and feel about things. They are non-confrontable and nondebatable assumptions about relating to the environment and about human nature, human activity and human relationships.
1st OD method: Iterative interviewing process involving both outsiders and insiders. Outsiders help members to uncover cultural elements through joint exploration. Outsider enters the org and experiences surprises and puzzles that are different from what was expected. Outsider shares these observations with the insiders and the two parties jointly explore their meaning. Results in a formal written description of assumptions underlying an org culture.
2nd OD method: a group of people called for culture workshop. The group first brainstorms a large number of org. artifacts, such as behaviors, symbols, language and physical space arrangements. From this list, values and norms that would produce such artifacts are deducted. Finally a facilitator asks the group to identify the assumptions that would explain the constellation of often conflicting values, norms and artifacts.