CHP15.ppt

E. Organizational change and development (20%) 5.1 Distinguish the difference between: (a) Organizational change and organizational development (b) Organizational development and Organizational transformation 5.2 Analyze the different factors driving organizational change 5.3. Identify the different...

E. Organizational change and development (20%) 5.1 Distinguish the difference between: (a) Organizational change and organizational development (b) Organizational development and Organizational transformation 5.2 Analyze the different factors driving organizational change 5.3. Identify the different types of large-scale organizational changes 5.4. Evaluate the different types of organizational interventions used to enhance organizational effectiveness, employee wellbeing and productivity 5.5 Examine the different strategies and techniques organizations use to manage change, and/or cope with change to achieve organizational efficiency Why do organizations change? Unplanned Change ◦ Managers don’t expect it ◦ Can lead to chaotic, uncontrolled periods of change Planned Change ◦ Systematic efforts by managers to move organizations to a new state ◦ Design, technology, tasks, people, information systems, etc. External Forces for Change Computer technology ◦ law of telecosm ◦ effect on knowledge, competition, employment relations Globalization and local competition ◦ effect on restructuring, outsourcing ◦ mergers © Corel Corp. With permission. Demography ◦ diversity ◦ emerging expectations Internal Forces For Change Turnover of leaders Need for profits _______________ _________________ ________________ Types of Planned Change Evolutionary Change ◦ Incremental adaptation to the external environment ◦ Series of phases ◦ Need for change ◦ Unfreeze ◦ Change (or move) ◦ Refreeze Types of Change (cont) Revolutionary Change ◦ Unfolds over long periods of time ◦ Equilibrium periods: organization moves steadily toward its mission and goals ◦ Revolutionary periods: Feverish change that affects the overall strategy of the firm ◦ Deep structures are affected like culture, design, processes, and relationships with the environment Resistance to change People and Organizations resist changes from both internal and external sources and planned and unplanned change Manager’s reaction ◦ See resistance as a problem ◦ Treat it coercively ◦ Added resistance ◦ See resistance as a signal ◦ People need more information, or better treatment ◦ Gather insights from people Slide 18.6 Sources of Resistance to Change Individual Resistance * Perception * Personality * Habit * Threats to power and influence * Fear of the unknown * Economic reasons Organizational Resistance * Organization design * Organizational culture * Resource limitations * Fixed investments * Interorganizational agreements Resistance to Change Slide 18.5 Employee Readiness for Change Perceived Personal Risk from Change High Low Level of Dissatisfaction with the Current Situation Low High High readiness for change Moderate to indeterminant readiness for change Moderate to indeterminant readiness for change Low readiness for change Source: Adapted from Zeira, Y., and Avedisian, J. Organizational planned change: Assessing the chances for success. Organizational Dynamics, Spring 1989, 37. Resistance to Change Direct Costs Saving Face Forces for Change Fear of the Unknown Breaking Routines Incongruent Systems Incongruent Team Dynamics Slide 18.4 A Systems Model of Change People Culture Task Technology Design Strategy Slide 18.7 Force Field Analysis Driving forces Resisting forces High performance goals Group norms for output Familiarity with present equipment New equipment Complacency Competition Employees with new skills Need to learn new skills Desire for increased influence and rewards Fear of reduced influence and rewards Current level of group performance Desired level of group performance Source: Adapted from Zand, D.E. Force field analysis. In N. Nicholson (ed.), Blackwell Encyclopedic Dictionary of Organizational Behavior. Oxford, England: Blackwell, 1995, 181. Initiatives Contributing to Effective Change Management Motivating Change Creating a Vision Developing Political Support Effective Change Management Managing the Transition Sustaining Momentum Source: Adapted with permission from Cummings, J.G., and Worley, C.G. Organization Development and Change, 6th ed. Cincinnati: South-Western, 1997, 154. Contributing to Effective Change Management 1.Motivating Change: Motivation is crucial for overcoming inertia and inspiring individuals to embrace change. Leaders should articulate compelling reasons for change, emphasizing the benefits and opportunities it presents for individuals and the organization as a whole. This might involve highlighting potential rewards, such as career advancement, increased job satisfaction, or improved organizational performance. 2.Creating a Vision: A clear and inspiring vision provides a sense of direction and purpose, guiding individuals through the change process. Leaders should communicate a compelling vision that outlines the desired future state, the benefits of achieving it, and the role that each individual plays in realizing the vision. This helps align efforts and mobilize support for change. 3.Developing Political Support: Change initiatives often encounter resistance from various stakeholders, including those with vested interests in maintaining the status quo. Building political support involves identifying key influencers, understanding their concerns and motivations, and engaging them in dialogue to address their interests and gain their endorsement for the change. This may require negotiation, coalition-building, and strategic alliances to overcome resistance and secure necessary resources and buy-in. Contributing to Effective Change Management 4. Managing the Transition: Change can be disruptive and unsettling, so effective transition management is essential for minimizing disruption and ensuring a smooth transition to the desired state. This involves careful planning, communication, and coordination of activities to address the impact of change on individuals, teams, and processes. Providing support, resources, and guidance during the transition helps individuals navigate uncertainty and build confidence in the change process. 5. Sustaining Momentum: Change is not a one-time event but an ongoing process that requires sustained effort and attention to maintain momentum and achieve lasting results. Leaders should continue to reinforce the vision, communicate progress, and celebrate successes to keep stakeholders engaged and motivated. This may involve recognizing and rewarding achievements, sharing best practices, and fostering a culture of continuous improvement and innovation to sustain momentum over the long term. Successfully Diffusing Change Successful pilot study Favorable publicity Top management support Labor union involvement Diffusion strategy described well Pilot program people moved Courtesy of Roberts Express Minimizing Resistance to Change Communication Coercion Negotiation Training Minimizing Resistance to Change Stress Management Employee Involvement Minimizing Resistance to Change 1.Communication: Clear, transparent, and consistent communication is essential in helping employees understand the reasons for change, its benefits, and how it will impact them. Communication should address concerns, provide updates, and solicit feedback to ensure that employees feel informed and involved throughout the process. 2.Training: Providing comprehensive training programs helps employees develop the skills and knowledge necessary to adapt to the change successfully. Training should be tailored to the specific needs of employees and should include opportunities for practice and feedback. 3.Coercion: While coercion may sometimes be tempting, it's generally not an effective strategy for minimizing resistance to change. Coercive tactics can breed resentment and undermine trust, ultimately making it more difficult to implement change successfully. 4.Negotiation: Negotiation involves engaging with employees to address their concerns and find mutually acceptable solutions. This approach allows for a more collaborative and inclusive process, where employees feel heard and valued, leading to greater buy-in and support for the change. 5.Employee Involvement: Involving employees in the change process empowers them to take ownership of the transition and actively contribute to its success. This can take many forms, such as soliciting feedback, involving employees in decision-making, and appointing change champions to lead initiatives. 6.Stress Management: Change can be stressful for employees, so it's important to provide support and resources to help them cope. This may include offering stress management workshops, providing access to counseling services, or implementing flexible work arrangements to accommodate individual needs. Refreezing the Desired Conditions Creating organizational systems and team dynamics to reinforce desired changes ◦ alter rewards to reinforce new behaviors ◦ new information systems guide new behaviors ◦ recalibrate and introduce feedback systems to focus on new priorities Organization Development A planned system wide effort, managed from the top with the assistance of a change agent, that uses behavioral science knowledge to improve organizational effectiveness. Action Research Process Establish ClientConsultant Relations Diagnose Need for Change Introduce Change Evaluate/ Stabilize change Disengage Consultant’s Services Appreciative Inquiry Process Discovery Discoverin g the best of “what is” Dreaming Forming ideas about “what might be” Designing Delivering Engaging in dialogue about “what should be” Developin g objectives about “what will be” Parallel Structures Parallel Structure Organization Organization Development Concerns Cross-Cultural Concerns ◦ Linear and open conflict assumptions different from values in some cultures Ethical Concerns ◦ Management power ◦ Employee privacy rights ◦ Employee self-esteem ◦ Consultant’s role