change and knowledge management

7/27/2019 change and knowledge management

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ORGANIZATIONAL CHANGE


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INTRODUCTION & DEFINITION OF ORGANIZATIONAL

CHANGE

The past was a good predictor of the future in the past !

Change is a constant phenomenon today

Organizational Change : A concerted, planned effort toincrease organizational effectiveness and health through

changes in the organizations dynamics using behavioural

science knowledge.

Grandfather of organizational change Kurt Lewin


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THE BASIC CONTEXT FOR ORGANIZATIONAL CHANGE

1. What provokes Organizational Change?It can be provoked by some major driving force

2. Why is Organization wide change difficult to

accomplish?o Notion of resistance to change

3. How is Organization wide Change best carried out?

o Must involve top management

o Team-wide effort necessary

o Frequent communication to all members of the

organization

o Structures may need to be modified to sustain

change, also strategies, plans and processes


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THE NATURE OF ORGANIZATIONAL CHANGE

1. The pace of changeis what differentiates

organizational change today from the past. Present

day changes have been more rapid, more complex,

more unpredictable

2. Concept of the temporary society :: temporary jobs,

housing, neighborhoods, friendships.

3. Societal values may come to reflect this absence oflong term stability


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NOTABLE CHANGES WITNESSES DURING THIS DECADE

1. Globalization of markets

2. Technological Changes

3. Political realignments

4. Changing demographics5. Changing consumer preferences

6. Organizational restructuring


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PRINCIPLES OF ORGANIZATIONAL CHANGE

1. Honesty

2. Aims

3. Participation

4. Recognition

5. Team Working & Interpersonal Relationships

6. Vision of the change


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DIMENSIONS OF ORGANIZATIONAL CHANGE

1. Organization-wide vs. subsystem change E.g State Bank of India vs. PSUs

2. Transformational vs. Incremental change

Pepsi Corporation vs. Coca Cola

3. Remedial vs. Developmental change

HCL Tech Vs Infosys

4. Unplanned vs. Planned change Kingfisher vs. Indigo ??


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CHANGES IN A COMPANYS INTERNAL ENVIRONMENT

1. Strategic : e.g. Pepsi

2. Structural : e.g Infosys

3. Processoriented : Telecom industry ?

4. People centered: Silicon Valley??

All these happen continuously in dynamic businesses


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HOW SHOULD MANAGEMENT APPROACH THE PROBLEM?

1. Managements should ALWAYS conduct scenario /strategic planning exercises, even if they have already

decided on incremental change

2. Such techniques as benchmarking , industry analysisetc come in very handy

3. May point out the need for greater degree of change

4. Examples of IBM in the 1990s. Micrososft& Nokiatoday

5. Indian sunrise sectors such as IT and BPO ??


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GOALS

Goals need to be SMART:

Specific

Measurable

Attainable

Realistic

The Measurement System in place (e.g. Balanced

Scorecard)


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RESISTANCE TO CHANGE

Resistance is an inevitable response to any major change

(Alvin Zander) resistance to change is behaviour which

is intended to protect an individual from the effects of real

or imagined change

(Zaltman and Duncan) any conduct that serves to

maintain the status quo in the face of pressure to alter the

status quo

(Folger & Skarlacki) employee behaviour that seeks to

challenge, disrupt, or invert prevailing assumptions,

discourses, and power relations


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THE NATURE OF RESISTANCE TO CHANGE

Active Resistance : includes finding fault, ridiculing,appeal to fear and manipulating

Passive resistance : including agreeing verbally but not

following through, feigning ignorance and withholdinginformation


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LEVELS OF RESISTANCE

1. Individual Resistance:

2. Organizational resistance

3. Group resistance


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INDIVIDUAL RESISTANCE

1. Habit

2. Security

3. Economic Factors

4. Fear of the unknown

5. Selective Information Processing


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WHY PEOPLE RESIST CHANGE AT THE WORKPLACE

1. An individuals predisposition to change2. Surprise and fear of the unknown

3. Climate of mistrust

4. Fear of failure

5. Loss of status and/or job security6. Disruption of cultural traditions and/or group relationships

7. Personality conflicts

8. Lack of tact and/or poor timing

9. No reinforcing reward systems


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ORGANIZATIONAL RESISTANCE

1. Power and conflict2. Functional orientation

3. Mechanistic structure

4. Structural inertia

5. Limited focus of change6. Group inertia

7. Threat to expertise

8. Threat to established power relationships

9. Threat to established resource allocations


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GROUP RESISTANCE

1. Group Norms

2. Group Cohesiveness

3. Group Inertia

4. Groupthink


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OVERCOMING RESISTANCE TO CHANGE

1. Education and Communication

2. Participation

3. Facilitation and Support

4. Negotiation

5. Manipulation and Cooptation

6. Coercion


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FORCES OF ORGANIZATIONAL CHANGE

1. External Forces:

o Demographic Characteristics

o Technological Advancements

o Market Changes

o Social and Political Pressures

2. Internal Forces:

o Human Resource Problems

o Managerial Behaviour and Decisions


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MODELS OF ORGANIZATIONAL CHANGE

Lewins View on Organizations: Two ideas:

1. One

o A system is held in balance by two sets of opposing

forces:

Promoting Change : the driving forces Maintaining status quo : the restraining forces

o System is in a state of dynamic equilibrium

o When driving forces become stronger than the

restraining forces, the equilibrium shifts

2. Two: Model of the Change Process


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CHANGE MODEL 1: LEWINS THREE STAGE MODEL

UNFREEZE

CHANGE

REFREEZE


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EDGAR SCHEINS EXTENSION TO LEWIN

3STAGE MODEL

1. Unfreezing : Disconfirmation Pain +

Discomfort Guilt & Anxiety Motivation to

change, but psychological safety is necessary

2. Change: Cognitive restructuring : Acquisition ofinformation showing change is desirable and

possible

3. Refreezing : Integration of new behaviours intothe persons personality and attitudes.

Significant relationships important in this

process


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CHANGE MODEL 2: KURT LEWINS FORCE FIELD ANALYSIS

Force Field Diagram

Change Issue

Driving Forces Restraining Forces

---------------------------------------------------------------------------------------------

E

quilibrium

Weak

Weak

Moderate

Strong Force

ChangeNo Change


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DRIVING FORCES & RESTRAINING FORCES

1. Driving forces are those that push organization towards a new state of

affairs. Some of the driving forces from the External environment,include globalization, information technology and a changing

workforce. Along with these external forces some corporate leaders

create driving forces within the organization; they may increase

competition across company departments and encourage new

practices and values that the leader believes are inherently better, forinstance.

2. The other side of the model represents the restraining forces that

maintain status quo. These restraining forces are commonly called as

resistance to change because they appear as employee behaviours

that block the change process.

Stability occurs when the driving and restraining forces are roughly in

equilibrium, that is, they are of approximately equal strength in

opposite directions.


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STEPS IN A FORCE FIELD ANALYSIS: PROCESS

1. Describe current situation

2. Describe desired situation3. Identify where current situation will go in case of No Action

4. List all the driving forces

5. List all the resisting forces

6. Discuss and interrogate all of the forces: are they valid? Can they be

changed? Which are the critical ones?7. Allocate a score to each of the forces using a numerical scale, e.g., 1

is extremely weak and 10 is extremely strong

8. Chart the forces

9. Determine if change is viable and if progress can occur

10. Discuss how change can be affected through decrease in restraining

forces and increase driving forces


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CHANGE MODEL 3: SYSTEMS APPROACH

1. When management takes a decision of change, it must understand

and anticipate its repercussions on the entire organization and itsenvironment. It should be taken into account that the organization is a

totally interrelated, inter dependent parts, put together for achieving

certain objectives.

2. Rather than dealing separately with the various parts at an

organization, the systems theory gives managers a way of looking atan organization as a whole and as a part of the activity of an

organization affects the activity of every other part.

3. A systems view of management, for instance would recognize that,

regardless of how efficient the production department might be, if the

marketing department does not anticipate changes in consumer tastes

and work with the product development department in creating what

consumers want, the organizations overall performance will be

hampered.


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CHANGE MODEL 3: SYSTEMS APPROACH

INPUTS

TRANSFORMATIO

N

OUTPUTS

Men

Materials

Machines

Methods

Money

Productivity

Activities

Productivity

Efficiency


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CHANGE MODEL 4 : SEVEN STAGE MODEL (PROPOSED BY

RONALD LIPPITT, JEANNE WATSON AND BRUCE WESTLEY )

1. Phase 1 : Developing a need for change (equivalent to

Unfreezing)

2. Phase 2: Establishing a Change Relationship. In this phase a

client system in need of help and a change agent from outside the

system establish a working relationship

3. Phase 3 : Clarifying or diagnosing the client systems problem

4. Phase 4: Examining alternative routes and goals, establishing

goals and intents of action

5. Phase 5: Transforming intentions into change efforts. Phases 3,4,

and 5 correspond- Lewins Moving phase

6. Phase 6: Consolidating and Stabilizing Change- Lewins

refreezing phase.


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CHANGE MODEL 5: ADKAR MODEL

1. Awareness: of why the change is needed

2. Desire : to support and participate in the change

3. Knowledge: of how to change

4. Ability : to implement new skills and behaviour

5. Reinforcement: to sustain the change

(first developed by Prosci in 1998, after research with

more than 300 companies undergoing major

change projects. This model is intended to be a

coaching tool to help employees through thechan e rocess


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ADKAR

Awareness

Desire

Knowledge

Ability

Reinforcement

CH

A

N

G

E


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Can be used to:

1. Diagnose employee resistance to change

2. Help employees transition through the changeprocess

3. Create a successful action plan for personal and

professional advancement during change

4. Develop a change management plan for your

employees


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Awareness Desire Knowledge Ability Reinforcement

PHASES OF CHANGE FOR EMPLOYEES

PHASE

S

OFCHANG

E

FOR

PROJE

CT

Business

Needs

Concepts

Designs

Implementation

PostImplementation

Successf

ul

Change


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In the Figure, change happens on two dimensions: thebusiness dimension (vertical axis) and the people

dimension (horizontal axis). Successful change

happens when both dimensions of change occur

simultaneously.

Business Dimension Of Change:

Business need or opportunity is identified

Project is defined (scope and objective)

Business solution is designed (new processes,

systems and organizational structure)

New process and systems are developed

Solution is implemented into the organization


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People Dimension of Change: Effective management

of the people dimension of change requires

managing five key goals that form the basis of the

ADKAR model: Awareness

Desire

Knowledge

Ability

Reinforcement


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Power of ADKAR for Managing Change: ADKAR

can help one plan effectively for a new change or

diagnose why a current change is failing. In some

cases, corrective action can be taken and thechange successfully implemented.


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CHANGE MODEL 6: ACTION RESEARCH

Invo lved in determ ining what the problem is and

part ic ipat ing in creat ing the solut ion . So the

third s tep- feedback requires sharing w ith

employees what has been found from steps one

and two. The emp loyees, w ith the help of thechange agent, develops action plans fo r

br inging about any needed change.

Now the action part of act ion research is set in

motion. The emp loyees and th e change agent

carry out the speci f ic act ions to correct the

problems that have been identi f ied.

The final step is evaluation of the action plans

effectiveness. Using the init ial data gathered as

benchmark, any subsequent changes can be


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CHANGE MODEL 6: ACTION RESEARCH

Establish

Client-

Consultant

Relationshi

p

Disengage

Consultant

Services

Diagnose

the Change

Gather data,

Analyze data

Decide

Intervention

objectives

Introduce

Interventio

n

Implement

desired

Incremental

or Quantum

Change

Evaluate

and

stabilize

change

Determine

effectiveness

of change

and refreeze

newdirection


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MANAGERIAL OPTIONS FOR MANAGING CHANGE

1. Top Down Approach: In this approach, the

solutions or decisions are arrived at by people at

the top, and then are passed down the formal

channels of communication and control in aunilateral manner.

2. Laissez faire Approach: It presupposes that

systems can change only when its memberschange. People will change when they realize that

it is advantageous for them to change. Thus, the

most one can do to create change is to provide

enough information for people to make rational

choices.


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MANAGERIAL OPTIONS FOR MANAGING CHANGE

3. Collaborative Approach: The Collaboration between

the superior and subordinates in creating change

however does not necessarily mean that the

superiors have no distinctive role to play in theprocess, or that subordinates completely take over

the mantle of change.


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PERSPECTIVES OF ORGANIZATIONAL CHANGE

PerspectivesOf

Organizational

Change

Contingency

Perspective

Institutional

Perspective

Resource

Dependence

Perspective

Population

Ecology

Perspective


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CONTINGENCY PERSPECTIVE

Relates to the structure of the organization.

Structures can be analyzed on two perspectives:

1. Specialization

Horizontal division of workforce (departments)

Vertical division of workforce (levels)

2. Integration, through:

Direct supervision

Rules, procedures and systems

Goals, plans and targets

3. Appropriate structure of the organization depends on variables: Size of the organization

Technology of an organization

Strategy of an organization

Environment of an organization


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RESOURCE DEPENDENCE PERSPECTIVE

Premise : to survive in an industry, organizations need

to acquire resources from the environmentcreating dependence

The dependance of an organization on the external

organizations for resources makes it vulnerable

because it creates uncertainty. Therefore, it is verynecessary for the organization to reduce the

vulnerability and control by external organizations

through a series of strategies:

Internal Strategies:

1. Domain choice2. Recruitment

3. Environmental scanning

4. Buffering

5. Smoothing


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RESOURCE DEPENDENCE PERSPECTIVE

External Strategies:

1. Advertising

2. Contracting

3. Co-opting4. Coalescing


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INSTITUTIONAL PERSPECTIVE

This perspective gives special importance to the soc ial norm s, values

and cu lture of the enviro nm ent (symbo l ic elements).

Organizations gain leg i t imacy through c onformance.

Insti tut ionalization process by which organizations adoptspecif ic struc tures because of external legi t imacyrequirements.

Isomorphism process of change by w hich organizat ions cop yeach other

1. Coerc iv e isomo rphism forces organizations to comply

with government legislat ions and regulat ions

2. Mimet ic i somo rph ism - im i tat ive

3. No rmat iv e isomo rphism through inf luence of

profess ional managers & special ists


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PERSPECTIVE, FOCUS AND ISSUES

Perspective Focus Issues

Contingency

Perspective

Structure Is the structure compatible with

the external and internal

environments?

Resource Dependence

Perspective

Strategy What strategies are required for:

1. Increased control?

2. Reduced dependence

Population Ecology

Perspective

Ecological niche 1. Organizational level of

resistance

2. Sustainability of niche

3. What else can be done with

the organizational capabilities?

Institutional Perspective Norms, standards,

values

1. Learnings from other

organizations?

2. What changes are required for

compliance?

3. Can hiring professionals help?


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UNDERSTANDING THE CHANGE PROCESS

Preparation Phase:Contact Stage: The earliest encounter a person has with

the fact that change may take place or has already taken

place

Awareness Stage: The person knows that a change is

being contemplated

Acceptance Phase:

Understanding Stage: The person demonstrates some

degree of comprehension of the nature and intent of thechange

Positive Perception Stage: The person develops a

positive view toward the change


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UNDERSTANDING THE CHANGE PROCESS

Commitment Phase

Installation Stage: The change is implemented and

becomes operational

Adoption Stage: The change has been used long enough

to demonstrate worth, and a visible positive impactInstitutionalization stage: The change has a long history

of worth, durability and continuity and has been formally

incorporated into the routine operating procedures of the

organizationInternalization stage: People are highly committed to

change because it is congruent with their personal

interests, goals or value systems.


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LEADING THE CHANGE PROCESS

1. Understand and clarify mutual expectations about thelevel of detail and cost that the project requires.

2. Reach agreement on expectations on a pragmatic basis

3. Always assume that the situation can be improved4. Do new overview analysis through brainstorming sessions

5. Go down to the sub-task level while analyzing jobs

6. Be aware that people whose jobs are threatened are likely

to be upset by change! Try and develop a way of

anticipating and reducing damaging fallout.


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FACILITATING THE CHANGE (A TENTATIVE LIST)

1. Analyze the organization and its need for change2. Create a shared vision and common direction

3. Develop a non-threatening and preferably participative

implementation process

4. Support a strong leader role

5. Line up political sponsorship

6. Craft an implementation plan

7. Develop enabling structures

8. Communicate, involve people and be honest

9. Reinforce and institutionalize change


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CHANGE ROLES

1. Change Strategists

2. Change Implementers

3. Change recipients


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COMMON PITFALLS OF CHANGE IMPLEMENTATION

1. Change took more time than allocated2. Unforeseen problems surfaced

3. Ineffective coordination

4. Distractions caused by other crises

5. Insufficient capabilities and skills

6. Inadequate training

7. Uncontrollable external forces

8. Inadequate support for change

9. Failure to define expectations and goals clearly

10.Failure to involve all those who are affected by change


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CHARACTERISTICS OF ORGANIZATIONAL DEVELOPMENT

Understanding Organizational Development:

.. Is an applied field of study and practice

is concerned with helping managers plan change in

organizing and managing people that will develop

requisite commitment, coordination, and competence.

Its purpose is to enhance both the effectiveness of

organizations and the well-being of their members throughplanned interventions in the organizations human

processes, structures and systems, using knowledge of

behavioural science and interventionist methods


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INTERVENTION STRATEGIES FOR ORGANIZATIONAL CHANGE

1. OD involves profound change2. OD is Value Loaded

3. OD is a diagnosis / prescription cycle

4. OD is process oriented

5. Underlying values:

a. Respect for people

b. Trust and support

c. Power equalization

d. Confrontatione. Participation


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TYPES OF INTERVENTIONS

1. Structural Interventions2. Task Technology Interventions

3. People focused interventions

Structural Interventions:

1. Structural Reorganization

2. New Reward Systems

3. Changing organizational Culture


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TASK TECHNOLOGY INTERVENTIONS

1. Appreciative Enquiry

2. Job Redesign

3. Socio-Technical Systems

4. Quality of Work Life


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APPRECIATIVE ENQUIRY 4D MODEL

Discovering

Dreaming

Design

Delivering

QUALITY OF WORK LIFE


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QUALITY OF WORK LIFE

1. Adequate and fair compensation

2. A safe and healthy environment

3. Jobs that develop human capacities

4. A chance for personal growth and security

5. A social environment that provides personal identity,

freedom from prejudice, a sense of community and upward

mobility

6. Rights of personal privacy, dissent, and due process

7. A work role that minimizes infringements on personal leisure

and family needs


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PEOPLE FOCUSED INTERVENTIONS

1. Sensitivity Training

2. Process Consultation

3. Team Building

4. Intergroup Development

5. Grid OD


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GRID OD

Based on Blake & Moutons & Likerts system 4 model

People orientation & task orientation evaluated on 9-point

scales, resulting in 9x9 grid.

Objectives of Grid OD:

1. To improve planning by developing a strategy for

organizational excellence based on clear logic.

2. To help managers gain the necessary knowledge and skillsto supervise effectively.

S S O G O


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PHASES OF GRID OD

Phase 1 : the Grid Seminar

Phase 2 : Team Work Development

Phase 3 : Intergroup Development

Phase 4 : Developing and ideal strategic organizational model

Phase 5: Implementing the ideal strategic model

Phase 6 : Systematic critique


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DEVELOPING LEARNING ORGANIZATIONS

Characteristics

Of Leading

Organizations

Culture

OfFacilitating

change

Systems

Thinking

Presence

of

Tension

change and knowledge management

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