Professional Documents
Culture Documents
Cmod Module I
Cmod Module I
ORGANIZATIONAL CHANGE
POINTS TO BE COVERED
3
WHAT IS CHANGE MANAGEMENT?
Unfreezing
Movement
Refreezing
ACTION RESEARCH MODEL
Problem Identification
Joint diagnosis
Consultation with a
behavioral scientist Joint action planning
Similarities
Change preceded by diagnosis or preparation
Apply behavioral science knowledge
Stress involvement of organization members
Recognize the role of a consultant
Differences
General vs. specific activities
Centrality of consultant role
Problem-solving vs. social constructionism
General Model of Planned Change
Planning Evaluating
Entering and and
Diagnosing
and Implementing Institutionalizing
Contracting Change Change
TYPES OF PLANNED CHANGE
Magnitude of Change
Incremental
Quantum
Degree of Organization
Over organized
Under organized
Domestic vs. International Settings
CRITIQUE OF PLANNED CHANGE
17
CHALLENGES OF CHANGE
Change is the name of the game in Management
today.
Market, product, and competitive conditions are
rapidly changing.
Under these pressures, organizations are changing.
They are Downsizing, reengineering, flattening their
structures, and going global.
For survival
corporate entropy.
20
EIGHT KEY FACTORS IN RENEWAL
Informed opportunism
Direction and empowerment
Friendly facts
A different mirror
Teamwork and trust
Stability in motion
Attitudes and attention
Causes and commitment
21
APPROACHES TO CHANGE
Every organization must have enough stability to continue to
function satisfactorily and adapt to changing conditions.
Both stability and adaptation are essential for survival and
growth.
There are two types of environment in which an organization
can operate:
Stable: Hyper turbulent:
unchanging basic products rapidly changing product
and services lines
a static level of competition an increasing and changing
a low level of technological set of competitors
innovation rapid and continual
a formalized and centralized technological innovation
structure decentralized structure
a slow, steady rate of growth rapid market growth
22
CONT……..
The message is very clear for today’s organizations.
A static organization can no longer survive.
Environmental stability
23
A Model of Adaptive Orientation
Hyper turbulent
Environmental
Stability
Stable
Satisficing Management
Stable environment, high adaptation
Management is adequate and average
Renewing/Transformation Management
Dynamic environment, high adaptation
Feedback from
Environment
Employees
Departments &
Managers
Customers
Investors
Government
Regulation
30
THE SOCIOTECHNICAL SYSTEM
Coordinated human and technical activities consists of:
Goals and values subsystem
32
Environmental suprasystem
The
Sociotechnical
Goals and Values Technical subsystem
subsystem System
Managerial
subsystem
33
HIGH PERFORMANCE SYSTEMS
34
THE CONTINGENCY APPROACH- NO ONE BEST WAY
36
ORGANIZATIONAL TRANSFORMATION AND DEVELOPMENT
OD Focuses On:
Individual effectiveness
Team effectiveness
Organization effectiveness
38
FOCUS ON INDIVIDUAL EFFECTIVENESS
Technical skills
Interpersonal competence
39
FOCUS ON TEAM EFFECTIVENESS
Improving problem-solving
Working through conflicts
Group effectiveness
41
CHANGE OF ORGANIZATIONAL CULTURE
POINTS TO BE COVERED
43
CREATING A CONCEPT FOR CHANGE
45
WHAT IS CORPORATE CULTURE?
Organizational Subsystem
Outside factors define culture
Technology influences culture
Job descriptions
and structure influence culture’s development
48
CONT….
A strong, widely internalized corporate culture is frequently
cited as a reason for the success of companies.
Henry Migliore, identified a set of 20 cultural factors, termed
the Corporate Culture Index, that can be used to measure an
organizational culture. These factors include the following
characteristics:
Member Identity
Team Emphasis
People Focus
Autonomy
Control
Risk Tolerance
49
CORPORATE CULTURE AND SUCCESS
A corporate culture gives the whole organization a sense of
- how to behave, what to do, and where to set the priorities to get the job done.
Culture is of critical importance in the implementation of
strategy.
High-performing companies have strong cultures.
However, in today’s rapidly changing environment
many cultures fail to adapt to change.
Following corporate mergers, cultures often clash
International mergers can be even more complex because
they entail bringing national cultures together and perhaps
language differences.
50
CONT….
51
KEY FACTORS TO IMPROVE CULTURE
In order to create a winning culture, managers
need to adapt their managerial style, values and
goals to fit the changing demands of the
environment.
There are several key factors that organizations
Reward changes
52
CULTURAL RESISTANCE TO CHANGE
Changing culture is not easy
Emerges out of shared behaviors and working
relationships
Requires time
Culture can prevent company from remaining
competitive and adapting to a changing
environment.
An inappropriate culture is often one of the biggest
stumbling blocks on the path to adaptation.
53
ORGANIZATIONAL ADAPTABILITY
Following strategies have put pressures on the
companies to become flexible and adaptive
Recession
Deregulation
Technological upheavals
Social factors
Global competition
Outsourcing
Markets
54
TOOLS FOR CHANGE
Support
Resources
Information:
Provide information or ability to gather information
to people
One method is open-book management
55
Support:
Support and collaboration from other departments
Management supports to provide climate of risk taking
Resources:
Funds
Staff
Equipment
Materials
Innovative programs for providing resources including:
Innovation Banks
Skunk works
Venture capital 56
KEY FACTORS IN CULTURAL CHANGE
Understand the old culture
Encourage change in employees
Follow outstanding units
Don’t impose cultural change
Lead with a vision
Large-scale change takes time
Live the new culture
57
THE GOALS AND VALUES OF OD
Assumptions and
Values
Managerial efficiency
Motivational climate
58
CONT….
Managerial effectiveness refers to accomplishment of specific
organizational goals and objectives, or “doing the right things”
Managerial efficiency refers to the ratio of output to input, or
“doing the things right”
Motivational climate consists of the set of employee attitudes
and morale that influence the performance
Sense of identity
59
OD PROFESSIONAL VALUES AND ETHICS
Expertise
Autonomy
Commitment
Code of ethics
OD Implementation Issues
Success dependent
upon fit between OD values and organization’s values
Key issue is value orientations of each party; these include
beliefs about people, the methods used to reach change
goals, and the purpose of the change program.
60
COMPATIBILITY OF VALUES
62
DETERMINE PRIORITY OF GOALS
63
OD VALUES ABOUT NATURE OF HUMAN BEINGS
Respect for people
Trust and support
Power equalization
Confrontation
Participation
64
THANK YOU
65
RESISTANCE TO CHANGE
POINTS TO BE COVERED
Change and Reinvent
The Life Cycle of Resistance to Change
Leading Change
A Change Model
Driving Forces
Restraining Forces
Strategies to lessen Resistance
67
CHANGE AND REINVENT
Organizations today face a major challenge in managing
change effectively. The costs are often high when an
Organization fails to change in the ways necessary for success.
The most serious challenges to improving programs all have
the same focus: “PEOPLE”. Managers have to deal with
resistance to change.
Solving Organizational problems usually involves
introduction of change.
On a personal level, change represents the alteration of set
patterns of behavior, defined relationships with others, work
procedures, and Job skills.
68
THE LIFE CYCLE OF RESISTANCE TO
CHANGE
Organization Programs such as Downsizing,
Reengineering, and TQM involve innovations
ad changes that will probably encounter some
degree of resistance.
This resistance will be evident in individuals
as well as groups in such forms as controversy,
hostility, and conflict.
The response to change tends to move
through the five phases of Life Cycle.
69
PHASE I
Only few people see the need for change and take
reform seriously.
The Resistance looks massive.
At this point, the change program may die or continue
to grow.
Large Organizations seem to have more difficulty
than smaller Organizations.
70
PHASE II
71
PHASE III
74
LEADING CHANGE
Evaluation Advocates
of change of change
Change Factors
Success of
Impact Degree of
change
on change
Culture
Time Frame
75
A Change Model
Major
2 4
SOME HIGH RESISTANCE
RESISTANCE Low chance of Success
Moderate chance
Impact on culture
of Success
1 3
SOME RESISTANCE
LOW RESISTANCE
Moderate to High chance
High chance of Success
of Success
Minor
Minor Degree of change Major
76
DRIVING FORCES
77
RESTRAINING FORCES