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Organizational Change

Organizational change is the process by which
organization move from their present state to some
desired future state to increase effectiveness.

When an organization system is disturbed by some
internal or external forces change frequently occur or any
alteration which occur in the overall work environment of
an organization.
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CHARACTERSTICS OF O.C.

Change happen for the pressure of both internal and
external forces in the organization.
Change in any part of the organization affect the whole
organization.
Change may affect people , structure, technology, and
other element of the organization.
Change also affect the rate of speed and degree of
significance of the organization.
Change may be reactive or proactive.
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The Evolution of Starbucks
Exploring Behavior in Action
In the beginning they had only just a shop that
sold some selected coffee beans.
As Starbucks growing, they realized that the
informal techniques were not sufficient and
needed to have a more formalized with people
and places.
Now Starbucks was the biggest coffee chain
network in the world with more than 15000 shops
in over 44 countries. And they grown too fast.
They adopting the Italian culture and make some
important changes in organization.

Howard Schultz
Dave Olsen
Dawn Pinaud
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Change Forces
INTETRNAL
FORCES

Work force
Managerial
personnel
Management
structure
Avoid developing
inertia

External
Forces

Technology
Marketing
conditions
Social changes
Political forces



Change
forces
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Internal Pressures for Change
Work force
Managerial
personnel
Avoid developing
inertia
Management
structure
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External Pressures for Change
Technological
advances
Marketing
conditions
Social
changes
Political
Forces
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Managerial
Advice
Companies Responses
to Pressures for Green
Policies and Practices
Taking as it positive way:

It create a healthy image in customers.
It help in cost cutting.
Energy saving in the office.
Help in reducing carbon in environment.



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Change Agents
A Person in an organization is responsible for
managing change activities.

Can be managers or non managers, current
employees, newly hired employees or outside
consultants.
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Process of Planned Change
Unfreezing Refreezing Moving
Provide rationale
for change
Create minor
levels of
guilt/anxiety about
not changing
Create sense of
psychological
safety concerning
change
Provide information
that suspects
proposed changes
Bring about actual
shifts in behavior
Implement new
evaluation systems
Implement new
hiring and promotion
systems
Kurt Lewin
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Experiencing
Strategic OD
Coca-Cola Is Finding a New Fizz
Neville Isdell Sandy Douglas
Coca-Cola is changing its culture,
and
also enhance its product line to better
satisfy the demand of customers.
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Speed of Change
Criteria to
Consider
Urgency
Degree of support
Amount and complexity of change
Competitive environment
Knowledge and skills available
Financial and other resources
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Resistance to Change
Four Factors
Organizational
Resistance
Group
Resistance
Effort to block new
ways of doing things
Individual
Resistance
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Individual Resistance

Below are stated some reasons why people resists
changes. Some of these appear to be rational or
emotional. These reasons are:-

Economic factors
Habits
Insecurity
Lack of communication
Extend of change
Psychological factors
Social factors
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Why people resist change?
Disrupted Habits: People often resist change for
the simple reason that change disrupts our
habits.
Personality : Some people are more resistant to
change than others. Research also shows that
people who have a positive self-concept are
better at coping with change. Finally, risk
tolerance is another predictor of how resistant
someone will be to stress.

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For people who are risk avoidant, the possibility of a change
in technology or structure may be more threatening.

Feelings of Uncertainty : Change inevitably brings feelings of
uncertainty. You have just heard that your company is
merging with another. What would be your reaction? Such
change is often turbulent, and it is often unclear what is
going to happen to each individual. Some positions may be
eliminated. Some people may see a change in their job
duties. Things may get betteror they may get worse. The
feeling that the future is unclear is enough to create stress
for people because it leads to a sense of lost control.
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Fear of Failure : People also resist change when
they feel that their performance may be affected
under the new system.
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Perceived Loss of Power : One other reason people may
resist change is that change may affect their power and
influence in the organization. Imagine that your
company moved to a more team-based structure,
turning supervisors into team leaders. In the old
structure, supervisors were in charge of hiring and firing
all those reporting to them. Under the new system, this
power is given to the team. Instead of monitoring the
progress the team is making toward goals, the job of a
team leader is to provide support and mentoring to the
team in general and ensure that the team has access to
all resources to be effective.
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Prevalence of Change : how big is the planned
change? If the company is considering a simple
switch to a new computer program, such as
introducing Microsoft Access for database
management, the change may not be as extensive
or stressful compared with a switch to an enterprise
resource planning (ERP) system such as SAP or
PeopleSoft, which require a significant time
commitment and can fundamentally affect how
business is conducted.
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Group Resistance
Most organizational changes have
impact on formal groups in the
organization the main reason
why the groups resists change is
that they fear that their cohesiveness
or existence is threatened by it.
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Organizational Resistance
Organizational resistance means the change is
resisted at the level of the organization itself.
Some organization are so designed that they resist
new ideas, this is specifically true in case of
organization which are conservative in nature.
Majority of the business firm are also resistance to
changes. The major reason for organizational
resistance are:-
Threat to power
Group inertia
Organizational structure
Threat to specialization
Resource constants
Sunk costs
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Communication
Highest priority and first
strategy for change
Improves urgency to
change
Reduces uncertainty
(fear of unknown)
Problems -- time
consuming and costly
Minimizing Resistance to Change
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Communication
Provides new
knowledge and skills
Includes coaching and
action learning
Helps break old routines
and adopt new roles
Problems -- potentially
time consuming and
costly
Minimizing Resistance to Change
Training
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Communication
Increases ownership of
change
Helps saving face and
reducing fear of
unknown
Includes task forces,
search conferences
Problems -- time-
consuming, potential
conflict
Minimizing Resistance to Change
Training
Employee
Involvement
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Communication
When communication,
training, and
involvement do not
resolve stress
Potential benefits
More motivation to
change
Less fear of unknown
Fewer direct costs
Problems -- time-
consuming, expensive,
doesnt help everyone
Minimizing Resistance to Change
Training
Employee
Involvement
Stress
Management
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Communication
When people clearly
lose something and
wont otherwise support
change
Influence by exchange--
reduces direct costs
Problems
Expensive
Increases compliance,
not commitment
Minimizing Resistance to Change
Training
Employee
Involvement
Stress
Management
Negotiation
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Communication
When all else fails
Assertive influence
Firing people -- radical
form of unlearning
Problems
Reduces trust
May create more subtle
resistance
Minimizing Resistance to Change
Training
Employee
Involvement
Stress
Management
Negotiation
Coercion
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Organization Development (OD)
Planned change
Long range change
Problem solving
Team building
Feedback

A planned, organization-wide,
continuous process designed to
improve communication, problem
solving, and learning through the
application of behavioral science
knowledge
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Basic Organization Development
Model
Diagnosis of
Situation
Introduction of
interventions
Progress
Monitoring
Feedback
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Organization Development
Interventions
Organization
Development
Structural Techniques Relationship Techniques
T-group Training
Team Building
Survey Feedback
Job Redesign
Management by Objectives
Supplemental Organizational
Processes
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Relationship Techniques
T-group Training
Team Building
Survey Feedback
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Structural
Techniques
Job Redesign
Management by
Objectives (MBO)
Supplemental
Organizational
Processes
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