4. Organizational Change
Planned or unplanned transformations in an organization’s
structure, technology, and/or people.
First-Order Change: that is continuous in nature and
involves no major shifts in the way an organization
operates.
Second-Order Change: Radical change; major shifts
involving many different levels of the organization and
many different aspects of business.
5. Characteristics of change
Vital to avoid stagnation
Process not a event
Fast especially in present competitive scenario
Can be directive or participative
Natural or adaptive
Incremental or step
Interdependent on organizational environment or culture
6. Need for Change
Need for Change
Globalization
Environmental concern
Health consciousness
Changes in lifestyle
Need for non-traditional employees
Knowledge asset of the company
7. External Forces for Change
Government Force
Technology Faster ,cheaper & more mobile computer
Economic factor Fluctuating interest rate, declining
productivity, uncertainties due to inflation or
deflation, oil prices etc.
Competition Global competition, mergers & acquisitions,
growth of e commerce
Social Trends Internet chat room, retirement of body
boomers
Customers Changing need & preference
8. Internal Forces for Change
Nature of workforce More cultural diversity; aging population;
many new entrant with inadequate skill
System dynamics Technology, dominant group, formal or
informal relationship
Inadequacy of admin processes Revision of org goal & objective; rules
;regulations, procedures.
Individual/group speculations Positive factor need, ambitions, potentialities,
capabilities, career growth etc.
Structure focused change Downzing,rightsizing,job redesign
Technological changes Changes in equipment, work process, sequence,
information processing system, automation
Resources constraints Depletion, non-availability
9. Levels of change
Individual level
Development changes such as- job assignment
Physical movement to other location
Change in the maturity of a person occurring over a period of time
Group level
Important because most of the activities are on group basis
Change can affect work flow, job design, social organization, status, communication
pattern
Informal group must be considered-major barrier
Formal group- in the form of trade unions
Organizational level
Major programs that affect both individual and group
Made by senior mgt and are seldom implemented by single manager
Long term and requires considerable planning- reorganization, revamping remuneration
system,etc also
Referred as organizational development
11. Resistance to Change
The tendency for employees to be unwilling to go along
with organizational changes, either because of individual
fears of the unknown, or organizational impediments
Individual barriers to change
Organizational barriers to change
Readiness for change
Overcoming resistance to change
12. Readiness for change
Readiness = D (Dissatisfaction) x V (Vision) x F (First steps) > R (Resistance)
Is there enough dissatisfaction with the current state?
D What is the gap between the current reality and the envisioned future?
Is there a sense of compelling vision of a highly desirable future state?
V To what degree is it shared?
To what degree are individuals committed to the vision?
F Are the first steps for making the change 'doable'?
13. Sources of Resistance to
Change
Individual Sources Organizational Sources
Habit Structural inertia
Security Limited focus to change
Economic factors Group inertia
Fear for the unknown Threat to expertise
Selective information Threat to established power
processing relationships
Threat to established allocation
of resources
14. Overcoming Resistance to
Change
Education and Communication
Participation
Build Support & Commitment
Negotiation
Manipulation & Cooptation
Coercion
Selecting people who accept change
Overcoming Resistance to Change
15. Tactics to Minimize Resistance
• Explain why • Provide appropriate training in new
skills and coaching in new values
• Identify the benefits and behaviors
• Invite and answer questions • Encourage self-management
• Give more feedback than usual to
• Solicit participation, and, if possible, ensure people always know where
early involvement they stand
• (“first-draft / straw model” reviews, • Allow for resistance. Help people let
membership in go of the “old”
planning/implementation teams,
etc.) • Measure results, step back and take
a look at what is going on. Keep
• Avoid surprises asking “Is the change working the
way we want it to?”
• Set standards and clear targets • Encourage people to think and act
creatively
• Inform/involve informal leaders • Look for any “opportunity” created
• Recognize and reward efforts by the change
• Over communicate • Allow for withdrawal and return of
people who are temporarily resistant
16. Managing Planned Change
Managing Planned Change
Goals of Planned Change
Change (Making
things different.) Improving the ability of the
organization to adapt to
changes in its environment.
Planned Change Changing the behavior of
(Activities that are
intentional and goal individuals and groups in the
oriented) organization
Change Agents
(Persons who act as
catalysts and assume the
responsibility for
managing change
activities)
19. UNFREEZING
Creating motivation and readiness to change
Techniques to reinforce unfreezing . . .
• Acknowledge feelings and empathise
• Give people as much information about the change as
possible
• Say what will not change
• Treat the past with respect
• Help others to see the gap
20. CHANGE & MOVEMENT
Guiding through the transition
Techniques to reinforce movement . . .
• Provide focus and direction
• Strengthen peoples' connections to one another
• Open up two way communications
• Provide the individual with a specific role in the
change process
• Provide leadership and tenacity
21. RE-FREEZING
Integrating the new point of view
Techniques to reinforce re-freezing:
• (before reverting to the old point of view)
• Ensure that individuals and leaders are
reinforced for new behaviour
• Implement quick results and highlight successes
• Build feedback mechanisms
• Celebrate!
22. Action Research
A change process based on systematic collection of data and then
selection of a change action based on what the analyzed data
indicate.
Process Steps
Entry
Startup
Assessment and Diagnosis
Feedback
Action planning
Intervention Evaluation
23. Action Research
Action research benefits;
Problem-focused rather than solution-centered.
Heavy employee involvement reduces resistance to
change.
24. Organizational Development
Organizational Development (OD) A collection of planned
interventions, built on humanistic-democratic values, that seeks
to improve organizational effectiveness and employee well-being.
OD Values:
Respect for people
Trust and support
Power equalization
Confrontation
Participation
25. Organizational Development
Techniques
Sensitivity
Training groups (T-groups) that seek to change behavior
through unstructured group interaction.
Provides increased awareness of others and self.
Increases empathy with others, improves listening
skills, greater openness, and increased tolerance for others.
26. Creating a Learning
Organization
Learning Organization An organization that has developed
the continuous capacity to adapt and change.
Characteristics:
Holds a shared vision
Discards old ways of thinking.
Views organization as system of relationships.
Communicates openly.
Works together to achieve shared vision.
28. Organizational Culture
Organizational Culture is a system of shared beliefs and
values that develop within an organization and guide the
behavior of its members
“The way we do things around here.”
Basic assumptions, values, norms
Implications:
Culture is a perception.
Culture is shared.
Culture is descriptive.
28
31. Keeping Culture Alive
Sources of Organizational Culture
The organization’s founder
Vision and mission
Past practices of the organization
The way things have been done
The behavior of top management
Continuation of the Organizational Culture
Recruitment of like-minded employees who “fit”
Socialization of new employees to help them adapt to the
culture
31
32. Equity
Fullfillment-orientated Project-Oriented
Incubator Guided Missile
Person Task
Emphasis Emphasis
Family Eiffel-Tower
Power-oriented Rule-oriented
culture culture
Hierarchy
33. Family culture
Strong emphasis on hierarchy and orientation to the person
Family-type environment that is power oriented and headed
by a leader who is regarded as a caring parent
Management looks after employees, and tries to ensure that
they are treated well and have continued employment
May catalyze and multiply the energies of the personnel or
end up supporting a leader who is ineffective and drains
their energies and loyalties
34. Eiffel Tower
Strong emphasis on hierarchy and orientation to the task
Jobs are well defined, and everything is coordinated from the
top
This culture is narrow at the top, and broad at the base
Relationships are specific, and status remains with the job.
Managers seldom create off-the-job relationships with their
people, because they believe this could affect their rational
judgment
This culture operates very much like a formal hierarchy—
impersonal and efficient and loyalties
35. Guided Missile
Strong emphasis on equality in the workplace and orientation
to the task
This culture is oriented to work
Work typically is undertaken by teams or project groups
In projects, formal hierarchical considerations are given low
priority, and individual expertise is of greatest importance
All team members are equal (or at least potentially equal
All teams treat each other with respect, because they may need the
other for assistance
Egalitarian and task-driven organizational culture
36. Incubator
Strong emphasis on equality and personal orientation
Based on the premise that organizations serve as
incubators for the self-expression and self-fulfillment of
their members
Little formal structure
Participants in an incubator culture are there primarily to
perform roles such as
confirming, criticizing, developing, finding resources for, or
helping to complete the development of an innovative
product or service
37. Four Corporate Cultures
Table 6–3
Summary Characteristics of the Four Corporate Culture
Corporate Culture
Characteristic Family Eiffel Tower Guided Missile Incubator
Relationships Diffuse relation- Specific role in Specific tasks in Diffuse, spontaneo
between ships to organic mechanical cybernetic system us relationships
employees whole to which system of targeted on shared growing out of
one is bonded required objectives shared creative
interaction process
Attitude toward Status is ascribed Status is ascribed Status is achieved Status is achieved
authority to parent figures to superior roles by project group by Individuals
who are close and that are distant yet members who Exemplifying
powerful powerful contribute to creativity and
targeted goal growth
Ways of thinking Intuitive, holistic, la Logical, analytical, Problem Process
and learning teral and error vertical, and centered, professi oriented, creative,
correcting rationally efficient onal, practical, cro ad
ss disciplinary hoc, inspirational
38. Four Corporate Cultures
Table 6–3
Summary Characteristics of the Four Corporate Culture
Corporate Culture
Characteristic Family Eiffel Tower Guided Missile Incubator
Attitudes toward Family members Human resources Specialists and Co-creators
people experts
Ways of changing “Father” changes Change rules and Shift aim as target Improvise and
Course procedures moves attune
Ways of Intrinsic Promotion to Pay or credit for Participation in the
motivating and satisfaction in greater performance and process of creating
rewarding being loved and position, larger problems solved new realities
respected role
Management by Management by Management by Management by
subjectives job description objectives enthusiasm
39. Four Corporate Cultures
Table 6–3
Summary Characteristics of the Four Corporate Culture
Corporate Culture
Characteristic Family Eiffel Tower Guided Missile Incubator
Criticism and Turn other Criticism is Constructive task Improve creative
conflict resolution cheek, save accusation of related only, then idea, not negate it
other’s face, do irrationalism admit error and
not lose power unless there are correct fast
game procedures to
arbitrate conflicts
Source: Adapted from Fons Trompenaars and Charles Hampden-Turner, Riding the Waves of Culture:
Understanding Diversity in Global Business, 2nd ed. (Burr Ridge, IL: Irwin, 1998), p. 183.
40. Strong versus Weak Cultures
Strong Cultures
Are cultures in which key values are deeply held and widely
held.
Have a strong influence on organizational members.
Factors Influencing the Strength of Culture
Size of the organization
Age of the organization
Rate of employee turnover
Strength of the original culture
Clarity of cultural values and beliefs
40
41. How Employees Learn Culture
Stories - a narrative of significant events or
people
Rituals - repetitive sequences of activities
Material symbols – essential in creating an
organization’s personality
Language - unique terminology or jargon
41
42. How Culture Affects Managers?
Plan - degree of risk that plans should contain
Organize - degree of autonomy given to employees
Lead - degree of concern for employees, style of
leadership
Control - what criteria to use when evaluating
performance
42
43. How do we make a working environment more
conducive?
43
45. The External Environment
Suppliers Customers
The
Organization
Public
Pressure Competitors
Groups
45
46. How do we make a working
environment more conducive?
Employee empowerment,
Employee motivation, or
Employee satisfaction,
Employee engagement
Employee engagement must be a strategy that focuses
Employee engagement must focus on business results
& measure the outcomes of their performance.
46
47. Continue…
An effective recognition and reward system
Frequent feedback
Shared values and guiding principle
Positive relationships with coworkers
Demonstrated respect, trust, and emotional
intelligence on the part of the employee's direct
supervisor
47