1 we successfully marketed chetak for 30 years. now seldom is a model sold 3 years without change...

1

We successfully marketed Chetak for

30 years.

Now Seldom is a model sold 3 years

without

Change

Rahul Bajaj - 2005

2

WHY ORGANISATIONS CHANGE ? SITUATIONAL REASONS - external

• Government Regulations

• Changes in Economy

• Competition

• Raw material prices and availability

• Technology

• Pressure groups

• Scarcity of labour• …

3

WHY ORGANISATIONS CHANGE ? SITUATIONAL REASONS - internal

• Changes in leadership

• Implementation of new technology

• Decline in corporate performance

• Changes in employee profile

• Union action

• Low morale, climate

• mergers, acquisitions

• Stage in life cycle

4

FIVE PHASES OF ORGANISATION EVOLUTION 1972

GROWTH CRISIS RESOLUTION

creativity leadership direction

direction autonomy delegation

delegation control co-ordination

coordination red tape collaboration

collaboration ?????

5

PLANNED CHANGE

• to prepare organisation to adapt

to significant changes …

• Deliberate design and

implementation of

– a structural innovation

– a new policy or goal

– or a change in the operating philosophy, climate or style.

Forces for and against change…

6

CHANGE PROCESS - FORCE FIELD THEORY

Every behaviour is the result of equilibrium

between driving and restraining forces .

FORCES FOR CHANGE FORCES FOR STATUS QUO

NEW TECHNOLOGY

BETTER MATERIALS

COMPETITION

SUPERVISOR PRESSURES

CURRENT PERFORMANCE HIGHER PERFORMANCE

GROUP PERFORMANCE NORMS

FEAR OF CHANGE

MEMBER COMPLACENCY

WELL LEARNED SKILLS

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MANAGING CHANGE – Three stage model

• Unfreezing - making the need for change

obvious - members see and accept

• Changing discovering and adopting

new attitudes, values and behaviours

• Refreezing

– Locking the new behaviour

pattern in place

– supporting /reinforcing mechanisms -

so it becomes norm

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– UNFREEZING

– creating dissonance

– sharing information

– creating contacts with the outside world

– enlisting top management support

– reward for change effort

9

GUIDELINES FOR FACILITATING CHANGE - CHANGING

Facilitating movement in desired

direction

- establish clear goals

- involve people

- focus on whole system

- develop support systems

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GUIDELINES FOR FACILITATING CHANGE – REESTABLISHING

EQUILIBRIUM

– rewarding / celebrating desired behaviour

– planning for incremental success

– institutionalising the change

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RESISTANCE TO CHANGE – some reasons

– Rigidity of structure and systems

– limited focus of change efforts

– Disruption of existing power relationships

– Group norms and pressures

– Fear of loss of expertise / control / benefits

– Differences in ideology

Managerial options for implementing change…

12

MANAGERIAL OPTIONS FOR IMPLEMENTING CHANGE

• Top Down approach

• Laissez faire approach

• Collaborative Approach

13

MANAGERIAL OPTIONS FOR IMPLEMENTING CHANGE

– Top down approach

– Laissez faire approach

– Collaborative approach - sharing

power

Change in the way people work together…

14

A Role Negotiation Exercise in an Indian Business House – Udai Pareek (20.2.2008)

• Conflict between functions, Admin, Research – wanted to build

collaboration

• Got together – shared images about each other (you are slow ,

you are not responsive, you are hardworking – with data)

• Empathy exercises (what do you admire in each other)

• Input on my role contribution – what do I contribute which the

others need, appreciate, like (based on Indian notion on daan –

not only must it be given – the taker has to receive it and accept it)

• What I want from the other to be effective. To be given in writing –

for every condition I require, which is accepted, I must give

something in return

– Actions

– resources

How one company brought about change…

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How One Company brought in change – The Problems

– Lack of cop-operation between

sub-units

– Customer complaints

– Sagging morale

– Rising costs

Consultant realises CEO is serious about change / including leadership behaviour

Decide on 3 day Workshop

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How One Company brought in change

– CEO sounds out subordinates -

enthusiasm to apprehension

– Consultant meets Executives and

groups decide to give it a try

– Consultant meets each group member

• What’s going well?

• What’s getting in the way?

Consultant Figures out themes for workshop…

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Workshop Themes

– Boss

– Meetings

– Customer relations

– Relations between departments

– Long range goals

Role of consultant - Coach, Brief

Lecures, interventions on request.

Groups ranked themes onImportance – chose areas

To work on

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At the end of the workshop

Some misunderstandings / tensions

worked through

– Next action steps discussed

– Decided to review 3 months later

Consultant sat in on some staff meetings during the 3 month period…

20

3 Months later…

– Significant progress in some areas

– Bogged down in areas where

President needed to delegate

Group worked on this

President saw the light & started delegating

President now free to do long term planning

Over the years…

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How One Company brought in change

Over the Years…

– Institutionalised annual problem

solving workshop

– Consultant and HR Manager started

working together.

– HR Manager’s role increased -

consultant’s decreased

So what is OD???

22

ORGANISATION DEVELOPMENT

• Long term effort - systems perspective

• to improve an organisation’s problem

solving and renewal processes -

short and long term

• By participation / changing organisation

culture

Includes…

23

OD includes…

• Building diagnostic skills

• Development of individual and organisation

• coping capabilities - develop ability to cope

with problems

• linkage strategies - systems - building

collaborative efforts

• culture of mutuality - OCTAPACE

OD Methodologies

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Some OD Methodologies

• Action Research - gathering and analysing

data, taking action to solve problems

• Process Consultation

• Human Process Intervention - Sensitivity

Training

• Team building – diagnosing and improving

• Grid training

• Strategic interventions

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WHY DO ORGANISATIONS NEED TO LEARN?

• Changes in environment - ‘time tested’

solutions become obsolete

• Need for problem solving capabilites

replaced by need to be effective

• Diversity and size of environment -

organisations have to rely on

combined knowledge of many people

26

GENERAL FEATURES OF LEARNING ORGANISATION

• Individuals capable / committed to own

development

• Processes and methods which support

mutual learning

• Processes and methods facilitating

dissemination of knowledge

• Organisation culture supportive of risktaking,

experimentation , independence

27

FEATURES OF LEARNING ORGANISATION – SENGE

• Personal mastery

• Shared vision

• Mutual learning - team as basic learning unit

• Mental models

• Systems thinking

– Understanding complex relationships

– Seeing the larger picture

28

ORGANISATIONS AS LEARNING SYSTEMS

– the ability of the organisation

to learn to learn

– organisation learning is more than the cumulative learning of individual members

29


‘… skilled at

• Creating

• Acquiring

• Transferring Knowledge

and at modifying its behaviour to

reflect new behaviour and

insights’

Garvin - 1993

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• people continuously expand their capacity to create the results they desire

• New and expansive patterns of

thinking are nurtured

• Collective aspirations are set free

• People are continuously learning to

learn together

31

WHY DO ORGANISATIONS NEED TO LEARN?

• Changes in environment - ‘time tested’

solutions become obsolete

• Need for problem solving capabilites

replaced by need to be effective

• Diversity and size of environment -

organisations have to rely on

combined knowledge of many people

32

FEATURES OF LEARNING ORGANISATION – SENGE

• Personal mastery

• Shared vision

• Mutual learning - team as basic

learning unit

• Mental models

• Systems thinking

– Understanding complex relationships

– Seeing the larger picture

33

GENERAL FEATURES OF LEARNING ORGANISATION

• Individuals capable / committed to own

development

• Processes and methods which support

mutual learning

• Processes and methods facilitating

dissemination of knowledge

• Organisation culture supportive of risktaking,

experimentation , independence

34

Learning Organisation - Infosys

• Closure analysis at the end of every

project

• Analyses

– What went well

– What did not - in terms of meeting

customer requirements, quality, deliverables,

process

35

Learning Organisation - Infosys

• ‘Best practice sessions’

• Location heads identify 2-3

presentations where learning is very

high

• Those selected make presentations at

various locations

36

Learning Organisation - Zenstar

• Knowledge management system to

transform it into a Learning Organisation

• Looking at vast amounts of knowledge

stored in

– 1000 employees minds

– Computer networks

– Other documents

37

Learning Organisation - Zenstar

Drivers aiding success

• Training

• Pilot project

• Quality audit - making knowledge

capturing mandatory in every project

• Performance Management system - linked

with Knowledge sharing

38

Knowledge Integration Programme at ISPAT

• Operating Personnel from different plants

/ functions meet twice each year

• During this meeting

– Common problems are discussed

– Update on developments in the field

39

OD TECHNIQUES AND INTERVENTIONS

SENSITIVITY TRAINING

– Method for changing behaviour through unstructured group interaction.

– Learning through observation and participation rather than being told

– Aims - listening skills– openness, – tolerance for individual differences, – conflict resolution skills– More realistic self perceptions– Group cohesiveness

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SURVEY FEEDBACK

Tool for assessing attitudes held by organisation members, identifying discrepancies among member perceptions, and solving these differences

PROCESS CONSULTATION

Outside consultant (guide) and client JOINTLY

• perceives

• understand

• act upon process (work flow, communication, informal relationships ) events

41

ELEMENTS OF OD APPROACH TO THE MANAGEMENT OF CHANGE

• takes a systems perspective

• designed to improve the organisation

in the long or short term

• it is designed to solve problems

• is a continuous process aimed at learning a process of problem solving

42

ORGANISATION DEVELOPMENT

• special emphasis on the culture of formal work teams

• with assistance of a change agent,

• use of theory and technology of applied behavioural sciences

43

OPERATIONAL GOALS OF OD

Treats the organisation as a system

• The individual is a most important entity -

attempts to develop skills, knowledge , ability

• interpersonal effectiveness - open communication

• development and effectiveness of teams -

continuous improvement mechanism

• interteam effectiveness - managing conflict

• organisation effectiveness - goal setting, etc

• interface with environment

44

PHASES IN OD

• Entry into the organisation - usually initiated by a process consultant.

• Problem identification

– talk to people at all levels

– data collection

– diagnosis

– strategy planning

45

PHASES IN OD

• Specific intervention– focus on team building– introducing new structures or processes– working on intergroup relations– various skill improvement activities

• Building collaborative culture - temporary

teams to start with

• Development of internal resources

46

OD TECHNIQUES AND INTERVENTIONS – sensitivity training

• Method for changing behaviour through unstructured group interaction.

• Learning through observation and participation rather than being told

47

OD TECHNIQUES AND INTERVENTIONS – sensitivity training

Aims - listening skills– openness, – tolerance for individual differences– conflict resolution skills– More realistic self perceptions– Group cohesiveness

48


SURVEY FEEDBACK• Assessing attitudes held by organisation

members, • identifying discrepancies among member

perceptions• and solving these differences

49

OD INTERVENTIONS AND TECHNIQUES

TEAM BUILDING

• Utilises high interaction group activities to increase openness and trust among team members

• Activities include– Goal setting - what is the team’s goal ???– Developing interpersonal relationships– Role analysis for clarification– Team process analysis

50

OD METHODOLOGIES - LEADERSHIP GRID

• the way power is exercised over people in pursuit of the purpose is the most significant variable influencing organisation effectiveness

• Individual managers exercise power in different ways according to their individual assumptions about factors such as work, themselves, people in general, their subordinates in particular.

• There exists one “best” style

• This style needs to be adopted by those in power to achieve organisation success

51

Process Consultation

• A set of activities on the part of the consultant which help the client to – Perceive

– Understand

– act upon process events which occur

• Kinds of processes– Communication -problem solving -

leadership

– Decision making - intergroup co-operation

– interpersonal relations

52

Process Consultation

Stages– establishing contact– selecting a setting and method– Data gathering– Intervention - workshops, problem

identification sessions, coaching, teambuilding activities, individual counselling

– Evaluation– disengagement

53

GUIDELINES FOR OD

• Receptive points of entry• focus on link pins• work with forces supportive of change• work with autonomous parts• use internal resources and develop

them• begin at the top• achieve minimum critical concentration• use multiple points of entry• work on felt needs• use proactive behaviour

54


– the ability of the organisation

to learn to learn

– organisation learning is more than the cumulative learning of individual members

55


‘… skilled at

• Creating

• Acquiring

• Transferring Knowledge

and at modifying its behaviour to

reflect new behaviour and

insights’

Garvin - 1993

1 we successfully marketed chetak for 30 years. now seldom is a model sold 3 years without change...

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