ORGANIZATIO NAL CHANGE.

KETKI

PARALKAR. KANCHAN PATEL. PAURINIMA RANE. SHAMIKA RANE. NIKITA SHAH. ANUSHREE SHETTY.

C ONTENT
Introduction to Organizational change. Processes for managing change. People and change. Organizational Development Conflict resolution Fostering innovation

I NTRODUCTION
TO

O RG .C HANGE .

An alteration of an organizations environment, structure, culture, technology, or people

A constant force An organizational reality

An opportunity or a threat

M ODEL :

M ANAGING
O RGANIZATIONAL C HANGE
Feedback Determinants Org. Initiator F rces initiating changes Change Agent

Intervention Strategies Implementati on

What is to be changed ?

Change Process

Implementation Tactics

Change

Result

Organizational Effectiveness

 D ETERMINANTS

OF

S TRUCTURAL C HANGE
External Forces Competition Laws and regulations. New technologies. Labor market shifts. Internal Forces Strategy modifications.

New equipment & process Work force & job restructuring

Business cycles.
Social change.

Compensation and benefits

Labor surpluses and shortages Employees attitude.

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 O RGANIZATIONAL I NITIATOR

Who Initiates structural change ? CHANGE AGENTS

It act as the intermediaries between the forces initiating changes and the choice of an intervention strategy

I NTERVENTION S TRATEGIES

Structure

Technology

People

Organizational Process

I MPLEMENTATION L EWIN S T HREE S TEP

UNFREEZING
Resistance to change lessened, need for change created (Equilibrium disturbed)

MOVING From old behaviour to the new (Changes)

REFREEZING
Change made permanent

 Unfreezing

The driving forces, which direct behavior away from the status quo, can be increased. The restraining forces, which hinder movement from the existing equilibrium, can be decreased. The two approaches can be combined.

 M OVING

Making the actual changes to move to the new state of existence. Includes the development of new strategies, structures, systems & responsibilities and the shedding of old ones.

 R EFREEZING

Stabilizing, institutionalizing the changes. Making sure the organization doesn't go backwards to the old state. Reinforcement of the changes through symbols, such as changed logos, dress, building design, structures.

A N INE - STEP P ROCESS F OR L EADING O RGANIZATIONAL C HANGE .

1. Create a Sense of Urgency 2. Decide What to Change 3. Create a Guiding Coalition and Mobilize Commitment 4. Develop and Communicate a Shared Vision 5. Empower Employees to Make the Change.

6. Generate Short-Term Wins 7. Consolidate Gains and Produce More Change

8. Anchor the New Ways of Doing Things

in the Company Culture 9. Monitor Progress and Adjust the Vision as Required.

W HY P EOPLE R ESIST C HANGE ?

Individual resistance

Organizational resistance

I NDIVIDUAL
RESISTANCE

Selective information processing

Habit

Individual resistance. Fear of unknown security

Economic factor

O RGANIZATIONAL
RESISTANCE

Threat to established resources allocation Threat toestablished pawer relationships

Structural inertia

Organizational resistance
Limited focus of change Group inertia

Threat to expertise

D EALING WITH C HANGE .

B ARRIERS TO E MPOWERMENT.

O RGANIZATIONAL D EVELOPMENT

Organizational Development (OD)

An approach to organizational change in which the employees themselves formulate the change thats required and implement it, usually with the aid of a trained consultant.

W HY O RGANISATION D EVELOPMENT I S S O I MPORTANT

The volume of change in many organisations is massive The economic scene places demands on managers while they are reluctant to change from tried and tested methods The role of management is changing and new models are needed Change management takes time

Some changes challenge basic assumptions, for example, the role of supervisory staff

The need for control remains - the skill is remaining in control when so much change is going on. More comprehensive strategic pictures are needed which integrate different changes in the organization and alleviate confusion. Organization design and re-design are as important and necessary as product, process or system design and are the responsibility of management and people in organizations, not just specialists.

OD I NTERVENTIONS

Human Process Interventions

Aimed at enabling employees to develop a better understanding of their own and others behaviors for the purpose of improving that behavior such that the organization benefits.

Sensitivity Training (Laboratory or Tgroups)

Purpose is to increase participants insight into their own behavior and that of others by encouraging an open expression of feelings in a trainer-guided group.

OD I NTERVENTIONS ( CONT D )

Team Building

The process of improving the effectiveness of a team through action research or other techniques.

Survey Research

The process of collecting data from attitude surveys filled out by employees of an organization, then feeding the data back to workgroups to provide a basis for problem analysis and action planning.

T ECHNO STRUCTURAL A PPLICATIONS OF OD

Formal Structure Change Program

An intervention technique in which employees collect information on existing formal organizational structures and analyze it for the purpose of redesigning and implementing new organizational structures.

S TRATEGIC A PPLICATIONS OF OD

Strategic Intervention

An OD application aimed at effecting a suitable fit among a firms strategy, structure, culture, and external environments.

Integrated Strategic Management

An OD program to create or change a companys strategy by:

Analyzing the current strategy

Choosing a desired strategy

Designing a strategic change plan Implementing the new plan

O RGANIZATIONAL S TRESSORS : R OLE D EMANDS

Role conflicts

Work expectations that are hard to satisfy.

Role overload

Having more work to accomplish than time permits.

Role ambiguity

When role expectations are not clearly understood.

C ONFLICT H ANDLING S TYLES

C ONFLICT R ESOLUTION M ODES

S TIMULATING I NNOVATION
Creativity
Innovation

Process of Innovation

Perception
Incubation Inspiration Innovation

S TRUCTURAL VARIABLES A FFECTING I NNOVATION

Organic structures

Positively influence innovation through less work specialization, fewer rules and decentralization.

Easy availability of plentiful resources

Allow management to purchase innovations, bear the cost of instituting innovations, and absorb failures.

Frequent inter-unit communication

Helps to break down barriers to innovation by facilitating interaction across departmental lines.