ORGANIZATION TRANSFORMATION

It describes activities directed at

changing the basic character or culture
of the organization

It involves qualitatively different ways of

perceiving, thinking and behaving in an
organization
 Characteristics of
Transformational change
 Global competition forced many of the
organizations t becomes leaner and
flexible.


 Pushed government organizations to

disinvest.


 Change fundamentally alters the

qualitative nature of the organization



 Internal disruption
Transformational change occurs in


response
To three type of disruption.

Industry
Product life cycle shifts Internal company dynamics
Discontinuities
Different Change
businessinstrategies
size, corporate portfolio strategy and exe
nge in legal, political and technological conditions
 Systematic and Revolutionary
 Entire nature of the organization s altered
fundamentally.


 It s driven by senior executives



 Change should be visible through

majority of individuals

 New Organizing Paradigm
 Involves gamma change i:e discontinuous
sifts in mental or organizational
framework.


 During 1980’s organization shifted from

“control based” to “commitment
based” organization.
DRIVEN BY SENIOR EXECUTIVES

En vis io n in g Energizing En a b lin g

Planned change process

Lewin’s change model

Unfreezing
A process of psychological disconformation

Movement
Develop new behaviours, values and attitudes

Refreezing
Stabilize the organization at a new state of equilibrium
Action research model
Problem Identification

Consultation with experts

Data gathering and preliminary diagnoisis

Feedback to key client group

Joint diagnosis of problem

Joint action planning

Action

Data gathering after action

Positive model
 Initiate enquiry
 Male /female
collaberation

Inquire into best practices

Discover themes
Stories of nnovation

Envision a preferred future

Design and delver ways to create the future

 Change of organizational
culture
 Changeof culturegenerally starts with diagnosis of culture
 Diagnosing organizational culture
 The Behavioral Approach


This provides specific description about

*How tasks are performed

*Ho w re la t io n s h ip s a re m a n a g e d


Companywide Boss-subordinate peer interdepartment

THE BEHAVIORAL
APPROACH
Cultural diagnosis from behavioral
approach assess the cultural risks

Knowledge of such risks helps

managers whether to implement
change in the existing culture or to
modify the strategy
The Deep assumption approach
The competing values approach
Organization’s culture can be understood in terms


of
 Fle xib ilit y a n d
d is c re t io n

Cla n Ad h o c ra c y

Ext e rn a l fo c u s a n d
In t e rn a l fo c u s a n d

d iffe re n t ia t io n
In t e g ra t io n

Ma rke t
Hie ra rc h y

St a b ilit y a n d
c o n t ro l
Guidelines for cultural change
Formulate a clear strategic vision
Whether proposed changes are consistent with core vales

Display top management commitment

Strongly committed to create constant pressure for change

Model culture change at the highest level

Action must symbolize the new values

Modify the organization to support org change

Modification in the org structure, hr systems, information and control system

Select and socialize the new comers and terminate deviants

People can be selected or terminated

in terms of the new culture


 Develop ethical and legal sensitivity

Educating managers about the legal and ethical pitfalls of


the new culture


Creating a culture of change

Sensitize organizations to pressure for change

Encourage leaders to cultivate external network with different views

Reveal discrepancies between current and desired state

General vision of a more desired future state

Convey credible positive expectation for change

communicate realistic/positive expectation about change
Cultural resistance to change

Technical resistance
To deviate from the status quo

Political resistance
By powerful stakeholders

Cultural resistance
To deviate from the existing values and norms
Managing resistance

Empathy and support

communication

Participation and involvement

 Tools for change

Information
Making information available at every level
Open-book management

Support
Interdepartmental meetings and trainning sessions to build support for the project

Resources
Venture capital, innovation banks to provide fund ,staff and equipment
 Corporate culture
 Corporate culture is the total sum of the
values, customs, traditions, and meanings
that make a company unique. Corporate
culture is often called "the character of an
organization
Corporate culture
Impressions of Corporate Culture

Professional Growth
Rate of Turnover
Leadership Style
Dress
Length of day
life/work balance
Internal
Communication
Values of Organization
Value for Employees
Physical Plant
Reputation of CEO
Goals and values of OD

Managerial effectiveness
How close you are with the organizational goal

Managerial efficiency
It shows the ratio between input and resources

Motivational climate
Set of attitude and morale that influences the
 Four areas of value / ethics
 A person can can be deemed professional to
the degree he/she has internalized the
values
 Pertinent to the profession

Exp e rt is e


a utonom y c o m m it m e n t

Co d e o f e t h ic s