Organizational Change

Module IV: Organizational Change A Presentation by Mr. Indranil Mutsuddi

What is Organizational Change

Organizational change is the process by which organizations move from their present state to desired state to increase their effectiveness

Characteristics of Organizational Change  Change is vital so as to avoid stagnation.  Change is a process not an event  Change is normal & constant  Change is fast & likely to increase further in the present

competitive business  Change is both directive as well as participative  It is incremental  It is an interdependent function

Change Management

Historical & Political Evolution

Change People

Mgt & Orgn.

Corporate Culture

Levels of Change  Individual-level Changes:  Changes in Job assignments  Relocation  Internal Mobility  Job enrichment, Job Enlargement, Job Rotation  Job Re-designing, Job-structuring  Skill/Competency Development  Changes in behavior, attitudes  Performance enhancement

Levels of Change  Group Level Changes:  Work flow changes  Job designs  Social organization  Changes in influence (authority) & Status systems  Changes in communication & networking patterns  Organization of groups (formal/informal)  Team Building

Levels of Change  Organizational Level Changes:  Structure  Process  Systems  Strategic Perspective  Policy level changes  Organization Development

Types of Change Systems

Processes

Change through TQM

People

Management

Re-engineering

Components of Re-engineering

Business processes

Mgt & Evaluation

Re-engineering

Values & beliefs

Jobs & Structures

Reasons for changes  External Causes:

Globalization  Workforce Diversity  Technological Change  Managing ethical behavior  Govt. Policies  Competition  Scarcity of resources 

Reasons for changes  Internal causes:

Organizational stagnation  Decreasing performance effectiveness  Crisis  Changing employee expectations  Change in the work climate 

Resistance of Change Organizational level:

Group-level:

• Structure

• Composition

• Culture • Strategy • Over-determination

• Group Norms • Cohesiveness • Groupthink

Change Individual level: • Cognitive Biases Sub-unit-level: • Differences in orientation • Power & Conflict

• • • • •

Uncertainty Fear of Loss Selective participation habit Logical Reasoning

Models of Change Lewin’s Change Model

Unfreezing

Reducing the Forces for Status quo

Moving

Developing New attitudes, Values & Behaviors

Refreezing

Reinforcing New values Attitudes & behaviors

Models of Change

Level of Performance

Resistance to Change

Resistance to Change

New Status Quo Change Status Quo

Forces for Change

Forces for Change

Time Lewin’s Force Field Model of Change

The Change Process  Becoming aware of the pressure for change  Recognizing the need for change  Diagnosing the problem  Planning the change  Implementing the change  Managing Resistance to the change  Following-up the change

Organizational Development  OD comprises a special set of organizational change

process.  It is a planned, systematic process of organizational change based on the behavioral science, research & theory.

Goal of OD:  The goal of OD is to create adaptive organizations capable of

transforming & reinvesting themselves, so as to remain effective.

Characteristics of OD  Planned change  Comprehensive change  Emphasis on work groups/teams  Long-term change process  Participation of a change agent/facilitator  Emphasis on intervention  Collaborative management  Organizational Culture  Action Research

Pre-requisites of OD       

Perceptions of Organizational problems by key people Introduction of a change agent/facilitator Top management commitment Participation & commitment of work teams & leaders Operationalizing of Action Research Earlier success stemming ways for future successes An open, educational philosophy about the theory & technology of OD

Pre-requisites of OD  Acknowledgement of the congruency between OD & many    

previous effective management practices. Involvement of personnel & IR, as well as HR executives in the OD process Development of internal OD resources & facilitative skills Effective management of OD process & stabilization of changes Monitoring the OD process & assessing the results on an on-going basis.

Situations appropriate for OD  Organization’s managerial strategy (norms, values, power      

structures etc) Organizational culture Inter-group collaborations Organizational structure; Organizational roles Motivational levels of employees Trust & support among organizational members Synergistic solutions to problems

Action Research  A primary change process used in most OD programs  It’s a data based, problem-solving process of organizational

change. Advantages of Action Research:  Careful diagnosis of the current situation  Involvement of the employees in the change process

Steps of Action Research  Gathering information about problems, concerns &

needed changes from organizational members  Organizing this information in some meaningful way & sharing the same with the team involved in the change process.  Planning & carrying out specific actions to correct identified problems.