Module-2
Organizationa
l
Change
Organizational
Change can be defined
as, a concerted (determined), planned effort to increase Organizational effectiveness help thorough changes in Organization dynamics using behavioral science knowledge
to make different in some particular to make radically different to give a different position, course, or direction to to replace with another to make a shift from one to another to exchange for an equivalent sum or comparable item to undergo a modification of to undergo transformation, transition or substitution
TYPE OF CHANGES:
Following are examples of candidates for Change Management. Computing Systems hardware: Hardware changes: Additions, deletions, reconfigurations, relocations, or preventative or emergency maintenance. Computing Systems software: PTF's, product releases, versions, table changes, tuning, alterations to libraries, catalogs, monitors, traps, or changes to priority mechanisms. Environmental: Power, UPS system, generators, air conditioning, chilled water, electrical work, facility maintenance, security systems, fire control systems.
Network Systems: Additions, modifications, lines, modems routers, network access, controllers, servers, protocol converters. Software components either distributed or centralized, bitnet tables, router software, servers. Operating Procedures: Changes in equipment downtime schedules, planned system outages, changes in delivering services, or changes to service levels. Workstations and Public Clusters: Changes in hours of availability, hardware configurations, operating systems, utilities, applications including release levels or versions, installations or de-installations of systems, servers.
Change
management means to plan, initiate, realize, control, and finally stabilize change processes on both, corporate and personal level. Change may cover such diverse problems as for example strategic direction or personal development programs for staff.
Examples
of organization-wide change might include a change in mission, restructuring operations (e.g., restructuring to self-managed teams, layoffs, etc.), new technologies, mergers, major collaborations, "rightsizing"
Why is it Important to Adapt to Change? Individuals,
teams, or organizations that do not adapt to change in timely ways are unlikely to survive.
What is Change? Coping
process of moving from a unsatisfactory present state to a desired state
Organizational
change management is the process of developing a planned approach to change in an organization.
Any
variation or alteration; a passing from one state or form to another A passing from one phase to another
If
you force change on people normally problems arise. Change must be realistic, achievable and measurable. These aspects are especially relevant to managing personal change.
Before starting organizational change, ask yourself: What
do we want to achieve with this change, why, and how will we know that the change has been achieved? Who is affected by this change, and how will they react to it? How much of this change can we achieve ourselves, and what parts of the change do we need help with?
Typically
the objective is to maximize the collective benefits for all people involved in the change and minimize the risk of failure of implementing the change.
To
alter; to make different; to cause to pass from one state to another; as, to change the position, character, or appearance of a thing (process or activity) To alter by substituting something else for, or by giving up for something else
The
discipline of change management deals primarily with the human aspect of change, and is therefore related to pure and industrial psychology.
Typically,
the concept of organizational change is in regard to organization-wide change, as opposed to smaller changes such as adding a new person, modifying a program, etc.
new
programs such as Total Quality Management, re-engineering, etc. Some experts refer to organizational transformation. Often this term designates a fundamental and radical reorientation in the way the organization operates.
Nature of change Change
is defined as to make or become different, give or begin to have a different form. Change means dissatisfaction with the old and belief in the new. Change underlies a qualitatively different way of perceiving, thinking and behaving and to improve over the past and present.
Nature of change change
may be conceived as continuous and intrinsic to an organization. Change as patterned and predictable Change and complex and unpredictable. The rate of change is faster than our abilities to comprehend and cope up with.
Nature of change Change
may be said to take place at three levels: micro changes (personal lives) Organizational level (institution influence people lives) Macro level (people, community & society)
Forces of change Change customer needs and preferences
Political forces
System dynamics Increased global competition
Technological changes Organizational design and structure
Government forces
Managerial and administrative processes Individual and group expectations Technological forces
Economic forces
Political forces The
transition of east European nations to democracy and a market economy. Collapse of soviet Russia Unification Germany Iraq crisis, Gulf War
Economic forces The
uncertainty about future trends in the economy is a major cause of change Fluctuating bank interest rate Uncertainty arising out of inflation Low capital investment (Iron ore exp) Banking reforms- Crude oil Prices Market conditions Capital market structure
Technological forces Tech
advancements- online Trading Computer and technology Tele communications & its IMPACT Singapore & its state of economy (Tech) Information technology Bio science
Government forces Planning
(1929 depression) Deregulation Foreign exchange Antitrust laws Protectionism (Indigenous co.) Intellectual property rights
Increased global competition Making
their presence felt globally IBM,SONY,MICROSOFT,GM
Changing customer needs and preferences Continuous
change in needs & Preferences. Intel plans to convert desktop comp in to entertainment hub using new Technology. Sony initiative CD-DVD works Digital video recorder
Internal forces of change System
dynamics
Human behavior, Constant and Dynamic (Many) interactions Relationship among subsystem (Cordial) Internal politics, group/ ind Behavior Formal & Informal relationships
Inadequacy of Admin Process Set
of procedures and rules With changing times and the revision of orgl goals and objectives, some existing rules, procedure and regulations could be at a variance with the demands of reality. Realization
of their inadequacy is force that induces CHANGE
Individual and group expectations Each
one aiming to satisfy one’s own needs and aspirations. Desires are keep changing Ambition and Aspiration Fear and insecurities and frustrations operate as inter individual process.
Structure focused change Orgn
make changes to reduce cost and increase profitability. Structural change can take a form of Downsizing, decentralization, job redesign. JP Morgan & HSBC have laid off some employees as a part of restructuring Indian operations. (forced many co. to become lean)
Technology focused change Change
that impacts the actual process of transforming input in to output is referred to as change. CNC Machine CAD / CAM Robotics
Person focused change Concerned
with HR planning and enhancing employee competence and performance. Redefining orgl goals and Strategy Structural change in terms of expansion Resizing-all these have implications for HRM
Person focused change Introduction
of new technology result in person focused change. When employees cannot be trained further. (replacement) Skilled person and redesigning the job Work is done in cost effective ways
Profitability A
significant change that has necessitated quite a number of orgn. To restructure and reengineer themselves relate to profitability issues such as loss of revenue and low productivity.
Resource constraints MMM
personnel, technology. Non availability of these can be a powerful force for any orgn.
The principles of Change Honesty
: It forms critical part of the process of OC
Aims
: Without the knowledge of OC Aims, people cannot participate.
Participation
: The more the people participate and more they will be committed to getting results.
Recognition
: People value recognition for their change mgt endeavors more than material rewards.
Team
working and inter personal relationship : they form a fundamental part, if the change management process is to be successful Vision of Change : for unity to be maintained throughout the change management process ,people need a clearly defined vision of the change aim.
Types of change
Happened change Unpredictable. Occurs due to external forces.
Reactive change Changes that are clearly in response to an event or a series of events are termed reactive.
Anticipatory change Change carried out in expectation of an event or a series of events is called anticipatory change. Failing to anticipate future events can have destructive consequences for organizations.
Planned change Planned change or developmental change is undertaken to improve upon the current ways of operating. It is a calculated change, initiated to achieve a certain desirable output/performance and to make the organization to more responsive to internal and external demands.
Incremental change
Change directed at micro level and focused on units, sub units and components within an organization are termed as incremental changes. It also provides an opportunity to learn form its own mistake and experiences. A failed incremental change will cause less damage to a total system than unsuccessful large scale implementation.
Operational changes This is necessitated when an organization needs to improve the quality of its products or services due to external competition, customers changing requirements and demands or internal organization dynamics.
Strategic change Change that is addressed to organization as a whole or to most of the organizations components, including strategy, may be called strategic change.
Directional change a change in direction may become imperative for an organization due to severe competition or regulatory shifts in government policy and control
Fundamental change
This entails a redefinition of the current purpose or mission of the organization
Total change For
a total change, the organization is constrained to develop a new vision, and a strong link between its strategy, employed and business performance. The organization has to achieve a turnaround or perish.
Transformational change
Such a change involves the entire or a greater part of the organization. It could be a change in the Shape (size & complexity) Structure (system & ownership) Nature (basic assumptions and Culture) of the organization. Fundamental change in relationships A change in organization culture and norms Shift from product driven to technology driven
Revolutionary change
Abrupt changes in organizational strategy and design represent revolutionary change. Such change represent 3 E’s Envisioning (clear & credible vision) Energizing (mobilizing employeesdemonstrating & inculcating the excitement for change) Enabling (which is to provide the necessary resources, support structure & process)
Recreation change This involves a significant or drastic change in an organization’s strategy and design, or a radical departure from its current practices to achieve total transformation. Recreation is metamorphosis— becoming not just best,but different.
Models of Organizational Change These
model deal with the sequence of steps involved in bringing about change in an organization and with interventions related to it.
Models of Organizational Change Lewin’s
change model The planning model The action research model The integrative planning model These models refer to the “planning” & “process” aspects of change management.
Change affects three levels Individual
(Change affecting individual attitude beliefs, values, skills and behavior) Structure and Systems (Change affecting incentive system, Info Systems) Organizational Climate( Change affecting leadership styles, interpersonal relation ships, decision making)
Lewin’s model of Change Desired State Refreeze
Change/Move
Unfreeze
Restraining forces CURRENT STATE
Driving forces
Unfreezing The
purpose of Unfreezing is to heighten the awareness of employees about discrepancies currently prevailing in their behavior, the system and the organizational climate & attune them to the need for change-INFORMATION Behavior desired by orgn & behavior exhibited present behavior is disconfirmed
Unfreezing Disconfirmation
where present conditions lead to dissatisfaction, such as not meeting personal goals. However, the larger the gap between what is believed and what needs to be believed for change to occur, the more likely the new information will be ignored
Unfreezing techniques Unfreezing
is the first of Lewin's change transition stages, where people are taken from a state of being unready to change to being ready and willing to make the first step. Here are some ways to make it happen: Burning platform: Expose or create a crisis. Challenge: Inspire them to achieve remarkable things. Command: Just tell them to move! Evidence: Cold, hard data is difficult to ignore.
Unfreezing techniques
Destabilizing: Shaking people of their comfort zone. Education: Learn them to change. Management by Objectives (MBO): Tell people what to do, but not how. Restructuring: Redesign the organization to force behavior change. Rites of passage: Hold a wake to help let go of the past. Setting goals: Give them a formal objective. Visioning: Done well, visions work to create change. Whole-system Planning: Everyone planning together.
Changing / Moving This
refers to the shift in behavior to a new level resulting in the development of new Behr., values and attitudes in individuals through changes in orgl structure and process. Orgl shake-ups
Changing / Moving Once
there is sufficient dissatisfaction with the current conditions and a real desire to make some change exists, it is necessary to identify exactly what needs to be changed.
Transitioning techniques
Kurt Lewin's three phases give main phases of change. Once you have unfrozen the people, the next question is how you keep them going. Boiling the frog: Incremental changes may well not be noticed. Challenge: Inspire them to achieve remarkable things. Coaching: Psychological support for executives. Command: Tell them what to do. Education: Teach them, one step at a time. Facilitation: Use a facilitator to guide team meetings.
Transitioning techniques First steps: Make it easy to get going. Involvement: Give them an important role.
Management by Objectives (MBO): Tell people what to do, but not how.
Open
Space: People talking about what concerns them.
Re-education: Train the people you have in new
knowledge/skills. Restructuring: Redesign the organization to force behavior change. Shift-and-sync: Change a bit then pause restabilize. Spill and fill: Incremental movement to a new organization. Stepwise change: breaking things down into smaller packages. Whole-system Planning: Everyone planning together.
Refreezing This
stage where the orgn stabilizes and achieves a new stage of equilibrium and a preferred behavior. Reinforcing the new orgl state way
to freeze Behr in orgl member may include award, reward, recognition and demonstration of benefits to individual.
Refreezing Refreezing
is the final stage where new behavior becomes habitual, which includes developing a new self-concept & identity and establishing new interpersonal relationships.
Refreezing technique Refreezing
is the third of Lewin's change transition stages, where people are taken from a state of being in transition and moved to a stable and productive state. Here are some ways to make it happen: Burning bridges: Ensure there is no way back. Evidence stream: Show them time and again that the change is real. Golden handcuffs: Put rewards in their middleterm future.
Refreezing technique Institutionalization:
Building change into the formal systems and structures. New challenge: Get them looking to the future. Rationalization trap: Get them into action then help them explain their actions. Reward alignment: Align rewards with desired behaviors. Rites of passage: Use formal rituals to confirm change. Socializing: Build it into the social fabric.
Planning model Scouting Entry Diagnosis
Planning
Action
Stabilization & Evaluation
Action
Planning model This
model is based on the principle that information must be freely and openly shared between the organization and the change agent and this information must be able to be translated into action.
Planning model Scouting
: this is the phase where the change agent and orgn. Jointly explore the need for and areas requiring change. Entry : refers to the development of mutual contract and mutual expectations. Diagnosis : refers to stage where specific improvement goals are identified.
Planning model Planning
: this is the stage where actual and possible reasons for resistance to change are identified in addition to planning for specific improvements goals. Action : implementation of the steps identified in the planning stage.
Planning model Stabilization
& Evaluation : to determine the extent of success of the planed change and need for further action or termination. Termination :refers to the phase where a decision is made to leave the system or to end and begin another.
Action research model Perception of problem by key individuals
Joint action planning
Re-diagnosis and action planning by client & consultant
Consultation with behavioral science experts
Feedback by these Experts to client or group
Action
Data gathering after action
Feedback to client group by consultant
New Data gathering as a result of action
Re-diagnosis of situation, etc
New Action
Joint diagnosis of problems
This
model focuses on the planned change activity as a “cyclical process”. Initial research about the orgn. Undertaken which then provides the requisite information to guide further action.
The
result of the action are assessed to provide information to guide further action & this cycle is repeated as an ongoing process.
Problem
identification : key executive senses the problem and solves with the help of OD practitioner. Consultation with behavioral expert : after sensing the problem, and realizing that it can be dealt with, the help of OD expert is sought.
Data
gathering & preliminary diagnosis : the consultant, in conjunction with orgl members, gathers data employing methods such as interviews, process observation, questionnaire, and the analysis of orgl performance data.
Feedback
to client group : the data so gathered is passed on to the client to determine the strength and weakness of the area under study, with the consultant providing the client all relevant and useful data
Joint
diagnosis of the problem : the consultant and the management team jointly agree on problem solving methods. The
specific action to be taken depends on the orgns cultural, technological, and work environment, problem to be solved.
Action
: this stage involves the actual change from one orgl state to another. Installing new methods & procedures Reorganizing structure & work designs Reinforcing new work behavior
Data
gathering after action : As this model is cyclical in nature, new data is again gathered after action has been taken to measure and determine the effects of the action Based on the feedback, the situation may be re-diagnosed and new action can be taken.
The integrative model of change Exploration Phase
Planning Phase
Action Phase
Integration Phase
Change process
Change process
Change process
Change process
Need awareness
Diagnosis
Implementation
Stabilization
Search
Controlling
Design
Decision
Evaluation
Diffusion
The integrative model of change
Renewal
The
basis for an integrative model of planned change rests on the fact that an orgn exists in different states at different times and that planned movement can occur from state another.
This
requires an understanding both of the temporal states & of the change process needed to move from one state to another.
Bullock
& Batten (1985)
Exploration Phase The
orgn decides whether to plan for a specific change and commit resources fir it. Search for OD expert & contracting the services of an OD expert Mutual assessment of requirement. Consultants skill- readiness state for change
Contracting
phase lays rules and
regulations. What each party expects from relationship How much time each will, invest Rules for carrying out the consulting relationship
Planning Phase Planning
commence once the problems identified and resources committed. Collecting pertinent information Appropriate action is designed to improve the action The approval of key decision makers is sought for the proposed changes.
Action Phase The
changes derived from planning are implemented at this stage. It includes process aimed at transitioning the orgn from its current state to desired future state.
The
change activities are monitored and evaluated periodically to assess their progress and to check whether positive results are being achieved or whether they need modification and refinement.
Integration Phase This
phase involves making the changes part of regular organizational functioning after having successfully implemented and stabilized them.
The
new behavior is reinforced through regular feedback, incentives, and rewards. The contract with the OD professional is gradually terminated.
Resistance to change Resistance to change can also be a source of functional conflict. For example, resistance to a reorganizatio9nh plan or a change in a product line can stimulate a healthy debate over the merits of the idea and result in a better decision. But there is a defini9te downside to resistance to change3. It hinders adaptation and progress. Resistance to change doesn't necessarily surface in standardized ways. Resistance can be overt, implicit, immediate, or deferred.
Individual Resistance Individual
sources of resistance to change reside in basic human characteristics such as perceptions, personalities, and needs. Habit Security Economic factors Fear of Unknown
Selective
Information Processing Organizational Resistance Structural inertia Limited focus of change Group Inertia Threat to Expertise Threat to Established Power Relationships
Threat
to Established Resource Allocations Overcoming Resistance to change Education and Communication Participation Facilitation and Support Negotiation
Manipulation Coercion
and co-optation
Change Process Vision Strategy (Intended) Impact analysis
Current State Structure Process Technology Culture HRM
Movement
Desired State Structure Process Technology Culture HRM
Facilitated by •Building support structure (Internal support system, individual, team, top mgt and systems and external support) •Monitoring, evaluating and correcting •Transition management •Sustaining the momentum
Confusion :A mental state characterized by disorientation regarding time, place, or lack of orderly thought Anxiety :Anxiety is a multi system response to a perceived threat or Change Resistance :A force that tends to oppose or retard motion. Frustration : refers to the state of someone who denies himself, or who is denied, Treadmill :A monotonous task or set of tasks seeming to have no end. Inertia : The tendency of resisting acceleration
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.
John P Kotter's 'eight steps to successful change' 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 - make technology work for you rather than against.
John P Kotter's 'eight steps to successful change' Empower
actions - Remove obstacles, enable constructive feedback and lots of support from leaders - reward and recognize progress and achievements. Create short-term wins - Set aims that are easy to achieve - in bite-size chunks. Manageable numbers of initiatives. Finish current stages before starting new ones.
John P Kotter's 'eight steps to successful change' Don't
let up - Foster and encourage determination and persistence - ongoing change - encourage ongoing progress reporting - highlight achieved and future milestones. Make change stick - Reinforce the value of successful change via recruitment, promotion, new change leaders. Weave change into culture.