2/9/2012

NAME & ID

Managing Change in Organizations Behavior

Your Perception of Change

What are your reactions when you hear the word change?

Negative perceptions. Positive perceptions.

TYPES OF ORGANIZATIONAL CHANGE

Anticipatory

changes: planned changes based on expected situations.

Reactive

changes: changes made in response to unexpected situations. changes: subsystem adjustments required to keep the organization on course. changes: altering the overall shape or direction of the organization.

Incremental

Strategic

FORCES OF CHANGE

External Forces

Internal Forces

Market Place Govt Laws and Regulations Technology Labor market Economic Change

Changes in Organisational Strategies Workforce change New Equipment Employee Attitude

A Journey Through Change:

Stability Comfort and control Lookin g Back Fear, Anger and Resistance Chaos Learning Acceptance, Commitment Looking Forwar d

Enquiry, Experimentatio n and Discovery

INDIVIDUAL REACTIONS TO CHANGE

How People Respond to Changes They Like?

Three-stage
Unrealistic

process

optimism Reality shock Constructive direction

INDIVIDUAL REACTIONS TO CHANGE

(CONTD)

How People Respond to Changes They Fear and Dislike?

Stages
Getting

off on the wrong track Laughing it off Growing self-doubt Destructive direction

CHANGE: ORGANIZATIONAL AND INDIVIDUAL PERSPECTIVES (CONTD)

Tuning
The

most common, least intense, and least risky type of change.

Also

known as preventive maintenance and kaizen (continuous improvement). Key is to actively anticipate and avoid problems rather than waiting for something to go wrong.

Adaptation
Incremental

changes that are in reaction to external problems, events, or pressures.

CHANGE: ORGANIZATIONAL AND INDIVIDUAL PERSPECTIVES (CONTD)

Re-Orientation
Change

that is anticipatory and strategic in scope and causes the organization to be significantly redirected.
Also

called frame bending(Nadler and Tushman).

Re-Creation
Intense
Also

and risky decisive change that reinvents the organization.

called frame breaking (Nadler and Tushman).

WHY DO EMPLOYEES Surprise RESIST CHANGE? Unannounced significant changes threaten employees sense of balance
in the workplace.

Inertia

Employees have a desire to maintain a safe, secure, and predictable status quo. Without introductory or remedial training, change may be perceived negatively. Other events can conspire to create resentment about a particular change.

Misunderstanding and lack of skills

Poor Timing

JOHN P KOTTER'S EIGHT STEPS TO SUCCESSFUL CHANGE

Increase urgency - inspire people to move, make objectives real and relevant. Build the guiding team - get the right people in place with the right emotional commitment, and the right mix of skills and levels. Get the vision right - get the team to establish a simple vision and strategy, focus on emotional and creative aspects necessary to drive service and efficiency. Communicate for buy-in - Involve as many people as possible, communicate the essentials, simply, and to appeal and respond to people's needs. De-clutter communications. Empower action - Remove obstacles, enable constructive feedback and lots of support from leaders - reward and recognise progress and achievements.

WHY DO EMPLOYEES RESIST CHANGE?

(CONTD)

Emotional Side Effects

Forced acceptance of change can create a sense of powerlessness, anger, and passive resistance to change. Promises of improvement mean nothing if employees do not trust management. Employees are intimidated by change and doubt their abilities to meet new challenges. Managers who are disliked by their managers are poor conduits for change.

Lack of Trust

Fear of Failure

Personality Conflicts

WHY DO EMPLOYEES RESIST CHANGE?

(CONTD)

Threat to Job Status/Security

Employees

worry that any change may threaten their job or security. can tear apart established on-the-job social relationships. can disrupt employees in their pursuit of other goals.

Breakup of Work Group

Changes

Competing Commitments
Change

OVERCOMING RESISTANCE TO CHANGE

Strategies for Overcoming Resistance to Change

and communication Participation and involvement Facilitation and support Negotiation and agreement Manipulation and co-optation Explicit and implicit coercion
Education

LEADER ACTION:
Stability Learning, Acceptance & Commitment Looking Forward Comfort and control Lookin g Back

1
Create a felt need of change

4
Stabilize and Sustain the change

2
Introduce the

3
Revise and
finalize the change plan

Fear,Anger and Resistance

change

Chaos

Enquiry, Experimentatio n and Discovery

MAKING CHANGE HAPPEN

Two Approaches to Organization Change

Organization
Formal

Development (OD)

top-down approach

Grassroots
An

Change

unofficial and informal bottom-up approach

PLANNED CHANGE THROUGH ORGANIZATION DEVELOPMENT (OD)

Organization development (OD)

Planned

change programs intended to help people and organizations function more effectively.
Applying

behavioral science principles, methods, and theories to create and cope with change. OD creates fundamental change in the organization, as opposed to fixing a problem or improving a procedure.
OD

programs generally are facilitated by hired consultants,

PLANNED CHANGE THROUGH ORGANIZATION DEVELOPMENT (OD)

(CONTD)

Objectives of OD
Deepen the sense of organizational purpose. Strengthen interpersonal trust. Encourage problem solving rather than avoidance. Develop a satisfying work experience. Supplement formal authority with knowledge and skillbased authority. Increase personal responsibility for planning and implementing. Encourage willingness to change.

PLANNED CHANGE THROUGH ORGANIZATION DEVELOPMENT (OD)

(CONTD)

The OD Process (Kurt Lewin)

Unfreezing,

changing, and refreezing social systems

neutralizing resistance by preparing people

Unfreezing:

for change. Changing: implementing the planned change Refreezing: systematically following a change program for lasting results.

UNOFFICIAL AND INFORMAL GRASSROOTS CHANGE

Grassroots Change
Change

that is spontaneous, informal, experimental, and driven from within. who quietly try to change the dominant organizational culture in line with their convictions.
Guidelines

Tempered Radicals
People

for tempered radicals

Think small for big results. Be authentic. Translate. Dont go it alone.

Managing Change
Structure

Work specialization,Departmentalization, Chain of Command Span of Control, Formalization,Job Redesign Work Process, Methods and Equipments

Technology

People

Attitude, Expectations, Perception and Behavior

C R E A T I V I T Y

Innovation

STIMULATING INNOVATION

Creativity
The

ability to combine ideas in a unique way or to make an unusual association.

Innovation
Turning

the outcomes of the creation process into useful products, services, or work methods.

SYSTEM VIEW OF INNOVATION

Inputs

Transformation
Creative Environment, Process and Situation

Outputs

Creative Individuals, Groups and Organizations

Innovative Products, Work Methods

INNOVATION VARIABLES
Structural Variables Organic structure Communication Abundant resources High interunit stimulate Work and network support HR Variables High commitment to T & D High job security Creative people

Innovative Variables
Cultural variables Acceptance of ambiguity Positive feedback Low external control Tolerance of risks Tolerance of conflicts Focus on ends Open system focus

STRUCTURAL VARIABLES
Adopt an organic structure Make available plentiful resources Engage in frequent inherent communication Minimize extreme time pressures on creative activities Provide explicit support for creativity

CULTURAL VARIABLES
Accept Ambiguity, have low external control Tolerant impractical Tolerant risk taking Tolerate conflict Focus on ends rather than means Develop an open system focus Provide positive feedback

HUMAN RESOURCES VARIABLES

Actively promote T & D to keep employees skills updated Offer high job security to encourage risk taking Encourage individual to be Champion to change

2/9/2012

THANK YOU