Unit 2 Session 5.pptx

Online MBA Semester I ORGANIZATIONAL BEHAVIOUR & HUMAN RESOURCE MANAGEMENT Course Code - (OMBA-103) Unit 2: ORGANIZATIONAL BEHAVIOUR Lesson : Organizational Change Management (Part I) LEARNING OUTCOMES At the end of the session you will know about: 1. The meaning of change 2. Major types of change...

Online MBA Semester I ORGANIZATIONAL BEHAVIOUR & HUMAN RESOURCE MANAGEMENT Course Code - (OMBA-103) Unit 2: ORGANIZATIONAL BEHAVIOUR Lesson : Organizational Change Management (Part I) LEARNING OUTCOMES At the end of the session you will know about: 1. The meaning of change 2. Major types of changes in organizations 3. Why and how do changes often lead to dysfunctional human reactions 2 LEARNING OUTCOMES 3 The VUCA Environment • Today’s volatile, uncertain, complex and ambiguous (VUCA) business environment is marked by rapid and unprecedented change; the global health crisis, in the form of a pandemic, is a recent example. Organizations were not prepared for the disaster and its economic impact and hence, failed to counter this turbulent change. • The only way to adapt to change is by changing. Hence organizations, in order to survive, must change when the business environment changes. Organizations have to be flexible enough to change in response to the different megatrends in business. 4 The VUCA Environment • Changes within the organization are not possible without the readiness and cooperation of the employees. Making the employees ‘change ready’ is an important responsibility of the Human Resource Department. Without proper human resource management, change efforts will fail. 5 Global Business Environment And Change Management Economi c Forces Cultural Forces •Mission & Strategy •Organizational Structure •HRM Political Forces 6 Global Business Environment And Change Management Econom ic •People •Organizational Structure Forces •Technology Cultural Forces •Organization Political Forces 7 The nature of the business environment is turbulent. Companies in order to survive must do their SWOT Analysis from time to time (e.g. McDonald’s Change Story) 8 What is meant by ‘change’? A need for change arises when the existing state of affairs is no longer functional. Efforts have to be made to reach a desired state of affairs. Significant strategic changes in a company have to be made in response to changes within or outside the company and these transitions impact employees in a very big way. People want change but do not want to be changed Resistance is dysfunctional Companies do not want people who resist change Change management is all about “leading people through changes” 9 Types of Changes in Organizations 10 CATEGORIES OF ORGANIZATIONAL CHANGE Internal Planned: Changes in product or services, Change in organization size and structure (for example, downsizing, outsourcing) Internal Unplanned: System disequilibrium, Performance gaps External Planned: Introduction of new technology, Advances in information processing and communication External Unplanned: Government regulations, Changing customer needs and preferences 11 Restructuring: Changing organizational structures and reporting lines 12 Re-engineering: Changing processes i.e. the way work is done 13 Mergers & Acquisitions (Changes in Corporate Strategy): Changing the identities of organizations + = 14 Changes in Business Strategy: Changing priorities, ultimate direction and purposes 15 Cultural Change: Changing values, attitudes, and behaviour 16 Human Response to Disruptive Changes 17 People want change but do not want to be changed. Hence, changes often leads to dysfunctional human reactions. Elizabeth Kubler-Ross in her book Death and Dying (1969) has given the ‘Emotional Response Curve’ (also called the ‘Change Curve’) which is obtained when individuals have to change according to decisions made by others. 18 The author says that they experience a feeling of victimization and show disruptive emotional reactions over a period of time, ranging from denial to anger through depression and finally acceptance of the change. The model may not apply to everyone, however, by and large: •People respond systematically and not randomly to change. •Some reactions are dysfunctional. 19 With the passage of time the emotional response goes from passive to active to passive to active in a cycle Stability -- Immobilization/Shock -- Denial -Anger -- Bargaining -- Depression -- Testing -Acceptance Dysfunctional Reactions 20 21 Three Factors in Change Readiness: 1. DISSATISFACTION with the current state 2. VISION of a desired state 3. STEPS towards attainment of the vision 22 Online MBA Semester 1 Managerial Economics (OMBA102) All The Best