change management - iba

8/11/2019 Change Management - IBA

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Chapter 11 & 12

ORGANIZATIONAL STRUCTURE

& CHANGE MANAGEMENT


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2007 Prentice Hall Inc. All rights reserved.

What Is Organizational Structure?

Key Elements:

Work specialization Departmentalization

Chain of command

Span of control

Centralization anddecentralization

Formalization

Organizational Structure

How job tasks are formallydivided, grouped, andcoordinated.


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Key Design Questions and Answers for Designing theProper Organization Structure

The Key Question The Answer Is Provided By

1. To what degree are articles Work specializationsubdivided into separate jobs?

2. On what basis will jobs be grouped Departmentalizationtogether?

3. To whom do individuals and groups Chain of commandreport?

4. How many individuals can a manager Span of controlefficiently and effectively direct?

5. Where does decision-making Centralizationauthority lie? and decentralization

6. To what degree will there be rules Formalizationand regulations to direct employeesand managers?


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What Is Organizational Structure? (contd)

Division of labor:

Makes efficient use of employee skills

Increases employee skills through repetition

Specialized training is more efficient

Allows use of specialized equipment

Work SpecializationThe degree to which tasks in the organization aresubdivided into separate jobs.


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Grouping Activities By:

Function

Product

Geography

Process

Customer

DepartmentalizationThe basis by which jobs are grouped together.


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Chain of CommandThe unbroken line of authority that extends from thetop of the organization to the lowest echelon andclarifies who reports to whom.

AuthorityThe rights inherent in a managerial position to giveorders and to expect the orders to be obeyed.

Unity of Command

A subordinate should have only one superior to whomhe or she is directly responsible.


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Narrow Span Drawbacks: Expense of additional layers of management. Increased complexity of vertical communication. Encouragement of overly tight supervision and

discouragement of employee autonomy.

Concept:

Wider spans of management increase organizationalefficiency.

Span of ControlThe number of subordinates a manager can efficientlyand effectively direct.


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CentralizationThe degree to which decision making isconcentrated at a single point in the organization.

FormalizationThe degree to which jobs withinthe organization are standardized.

DecentralizationThe degree to which decision making isspread throughout the organization.


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Copyright 2011 Pearson Education, Inc.publishing as Prentice Hall

Functional Departmentalization

President/CEO

Counsellor ofthe President

ExecutiveSecretary

Director, QualityAssurance

VP BusinessDevelopment

FinancialController

VPOperations

ExecutiveVice-President

Composites Atlantic

Board ofDirectors


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Product Departmentalization

WirelessNetworks

EnterpriseNetworks

BroadbandNetworks

Public CarrierNetworks

Nortel


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Geographic Departmentalization

Royal Bank

Canada Asia Europe United States


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Customer Departmentalization

Dell Canada

IndividualUsers

EducationalUsers

FederalGovernment Users

Large BusinessUsers

Small/MediumBusiness Users


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Common Organization Designs

A Simple Structure:Jack Golds Mens Store

Simple Structure A structure characterized by a low degree ofdepartmentalization, wide spans of control, authoritycentralized in a single person, and littleformalization.


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Bureaucracy A structure of highly operatingroutine tasks achieved throughspecialization, very formalizedrules and regulations, tasks thatare grouped into functionaldepartments, centralizedauthority, narrow spans of

control, and decision makingthat follows the chain ofcommand.


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The Bureaucracy

Strengths Functional

economies of scale Minimum duplication

of personnel andequipment Enhanced

communication

Centralized decisionmaking

Weaknesses Subunit conflicts with

organizational goals Obsessive concern

with rules andregulations Lack of employee

discretion to dealwith problems


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Key Elements:

+ Gains the advantages of functionaland product departmentalizationwhile avoiding their weaknesses.

+ Facilitates coordination of complexand interdependent activities.

Breaks down unity-of-commandconcept.

Matrix Structure A structure that creates dual lines of authority andcombines functional and product departmentalization.


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New Design Options

T-form Concepts:

Eliminate vertical (hierarchical) and horizontal(departmental) internal boundaries.

Breakdown external barriers to customers andsuppliers.

Boundaryless Organization An organization that seeks to eliminate the chain ofcommand, have limitless spans of control, andreplace departments with empowered teams.


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Mechanistic Versus Organic Models


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Organization Structure: Its Determinants andOutcomes

Implicit Models ofOrganizational Structure

Perceptions that people holdregarding structural variablesformed by observing things aroundthem in an unscientific fashion.

Associatedwith


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What Is Organizational Culture?

Characteristics:1. Innovation and risk

taking

2. Attention to detail3. Outcome orientation

4. People orientation

5. Team orientation

6. Aggressiveness7. Stability

Organizational Culture A common perceptionheld by the organizationsmembers; a system of

shared meaning.


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How Organization Cultures Form


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How Employees Learn Culture

Stories

Rituals

Material Symbols

Language


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Spirituality and Organizational Culture

Workplace SpiritualityThe recognition that people have an inner life thatnourishes and is nourished by meaningful work thattakes place in the context of the community.

Characteristics: Strong sense of purpose

Focus on individual development

Trust and openness Employee empowerment

Toleration of employee expression


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Definitions

Change: The process of becoming different.Change Management: A structured approach to helping

individuals, groups andorganizations move from a currentstate to a desired future state.

Organizational Change:

A planned, systematic, ongoingprocess to enhance organizationalperformance.

Bringing organizational systemsand processes into line with thecurrent and future internal andexternal environments.


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Definition

Change management is a structured approach totransitioning individuals , teams , and organizations from a current state to a desired future state .

Change management is the process during which thechanges of a system are implemented in a controlledmanner by following a pre-defined framework.Change management is a style of management thataims to encourage organizations and individuals to

deal effectively with the changes taking place in theirwork.Change management is a basic skill in which mostleaders and managers need to be competent.
http://en.wikipedia.org/wiki/Individualhttp://en.wikipedia.org/wiki/Teamhttp://en.wikipedia.org/wiki/Organizationhttp://www.canstockphoto.com/instant-change-capsule-pills-3394052.htmlhttp://en.wikipedia.org/wiki/Organizationhttp://en.wikipedia.org/wiki/Teamhttp://en.wikipedia.org/wiki/Individual


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The Framework for Change:Head, Heart & Hands

Thinking &understanding

HEAD

Motivation/Emotion

HEART

Behavior

HANDSWhat do I do

differently?

Whats in it

for me?

Why should Ichange?

Change takes place in three arenas


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Strategy/Change ImplementationFramework for Change

Arenas ofStages Changeof ChangeImplementation

Thinking &Understanding

Motivation/Emotion Behavior

Coming togrips with thechange

Working itthrough

Maintainingmomentum

Changingbehavior anddevelopingcompetencyandcapability

Breaking theconventionalmindset andgenerating apicture of thefuture

Dealing withreactions toloss andcreating thewill tosucceed

1

2

3


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Types of Organizational Change Anticipatory changes: planned changes based onexpected situations.

Reactive changes: changes made in response tounexpected situations.

Incremental changes: subsystem adjustmentsrequired to keep the organization on course.

Strategic changes: altering the overall shape ordirection of the organization.
http://www.canstockphoto.com/racing-toward-change-speedometer-2865720.html


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Change Management

Change Management exists toMinimize disruption and accelerate the acceptanceof changeBe responsive to questions and give people the

information they needHelp ingredients realize the benefits of theimplementation

Change Event

Driving Forces

Restraining Forces


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Goal: Undergo organizational change

Driving Forces Restraining Forces

Please boss Fear of the unknown

Eliminate problems Unwilling to take risk

Get pay raise r R Conformity to norms

Receive recognition Unwilling to take risk

Fig. 1: Model of Force Field Analysis30


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Unfreezing the Status Quo

Time

Drivingforces

Restrainingforces

Desiredstate

Statusquo


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Self-Esteem During the Change Cycle

6.Integration

5.Understanding

4.Discovery

3.Discomfort

2.Doubt

1.Loss

Beginning of theTransition Time

End Of theTransition

S e

l f - E s t e e m


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The Change Management Process:Project Management Version

An integrated

change processwith the manageras key player

Strategies thatminimize risksand negativeoutcomes for theorganization

A changeprocess thatrespectsindividuals

Enthusiasticemployees

OUTPUT

Diagnostic PhaseW h y What

Determiningobjectives

Stage

2

Developing theaction plan

Stage

5Defining theimplementationstructure

Stage

3

CHANGE MANAGEMENT PROCESSINPUT

Change initiative:

Restructuring

Reorganization ofwork, newprocesses

Purchases/sales,acquisitions,outsourcing,partnerships

Newsector/market

Externalenvironment

Sector merger

Culture

Planning PhasePlanning the change Ho w

Implementation PhaseMan ag in g Mo n i to r in g Measuring

My role asleader in thechange process

Leadership

Ongoing organizational communications strategy

Developing thestrategy

Stage

4

Implementing thechange with managers Approving the action

plan Communications plan Training plan

Stage

6

Managing,monitoring andmeasuring

Stage

7

Preliminary analysis

1. Context of internalenvironment

Context of externalenvironment

Context of the team Iam managing

2. Available resources

3. Possible types ofresistance

Stage

1

8


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Focus on the Undecideds

EarlyAdopters

Laggards AdventurousConservative

70-80%


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Late Majority34%

Laggards 16%

Early Majority

34%

Early Adopters13%

Innovators3%

Rogers, Everett Di ff usion of I nnovations, fourth edition

Complexity- Peoples timing


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Why Do Employees ResistChange?

Surprise Unannounced significant changes

threaten employees sense ofbalance in the workplace.

Inertia Employees have a desire tomaintain a safe, secure, andpredictable status quo.

Misunderstanding and lack of skills

Without introductory or remedialtraining, change may be perceivednegatively.

Poor Timings Other events can conspire to create

resentment about a particularchange.


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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.Lack of Trust

Promises of improvement mean nothing if employees do nottrust management.

Fear of Failure Employees are intimidated by change and doubt their abilitiesto meet new challenges.

Personality Conflicts Managers who are disliked by their managers are poor conduits

for change.


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Threat to Job Status/Security Employees worry that any change may threaten their

job or security.Breakup of Work Group

Changes can tear apart established on-the-job socialrelationships.

Competing Commitments Change can disrupt employees in their pursuit of other

goals.

Why Do Employees Resist Change? (contd)


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Overcoming Resistance to ChangeStrategies for Overcoming Resistance to Change

Education and communicationParticipation and involvementInvolvement and commitmentFacilitation and supportNegotiation and agreementManipulation and co-operationEffectiveness and development


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A Journey Through Change:

Stability

LearningAcceptance,Commitment

LookingForward

LookingBack

Comfort andcontrol

Fear, Anger andResistance

Chaos

Enquiry,

Experimentationand Discovery


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Leaders Action: Stability

Comfort andcontrol

LookingBack

LookingForward

Chaos

Fear, Angerand Resistance

Enquiry,Experimentationand Discovery

Learning,Acceptance &Commitment

Create a feltneed ofchange

S tabilize &Sustain the

change

Introducethe

change

Revise &finalize the

change plan

1

2 3

4


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Four axes of change compassBusiness intelligence (BQ), which

drives the context for change andprovides the rationale for change;Political intelligence (PQ), whichhelps leaders identify thestakeholders in change and how toinfluence them appropriately;Spiritual intelligence (SQ), whichprovides the inner drive for changeand manifests itself in the vision andvalues of an organization goingforward;

Emotional intelligence (EQ), whichsupports change in oneself andothers by recognizing reactions tochange and creating an environmentwhere others feel motivated to follow.


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Management of COMPLEX CHANGE

=CHANGE

=CONFUSION

=ANXIETY

=GRADUALCHANGE

=FRUSTRA-TION

=FALSESTART

+ + + +

+ + + +

+ + + +

+

+

+

+

+

+

+

+

+

+

+

VISION SKILLS RESOURCESINCENTIVESACTION

PLAN

SKILLS INCENTIVESACTION

PLANRESOURCES

INCENTIVES RESOURCESVISION

VISION

VISION

VISION

SKILLS

SKILLS

SKILLS INCENTIVES

INCENTIVES

RESOURCES

RESOURCES

ACTIONPLAN

ACTIONPLAN

ACTIONPLAN


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Leading The Change

John Paul Kotter (born 1947 ) isa professor at the HarvardBusiness School and author,who is regarded as anauthority on leadership and

change . In particular, hediscussed how the bestorganizations actually "do"change.Kotter is the author of 15

books, and his books are in thetop 1% of sales fromAmazon.com .His internationalbestseller Leading Change ,outlined an actionable, 8-stepprocess for implementingsuccessful transformations .
http://en.wikipedia.org/wiki/1947http://en.wikipedia.org/wiki/Harvard_Business_Schoolhttp://en.wikipedia.org/wiki/Harvard_Business_Schoolhttp://en.wikipedia.org/wiki/Leadershiphttp://en.wikipedia.org/wiki/Amazon.comhttp://en.wikipedia.org/wiki/Amazon.comhttp://en.wikipedia.org/wiki/Amazon.comhttp://en.wikipedia.org/wiki/Amazon.comhttp://en.wikipedia.org/wiki/Leadershiphttp://en.wikipedia.org/wiki/Harvard_Business_Schoolhttp://en.wikipedia.org/wiki/Harvard_Business_Schoolhttp://en.wikipedia.org/wiki/Harvard_Business_Schoolhttp://en.wikipedia.org/wiki/Harvard_Business_Schoolhttp://en.wikipedia.org/wiki/Harvard_Business_Schoolhttp://en.wikipedia.org/wiki/1947


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1. Establishing a Sense of Urgency2. Creating a Guiding Coalition with

enough power to lead the change3. Developing a Vision & Strategy4. Communicating the Change Vision5. Empowering others to act on vision6. Generating Short-Term Wins7. Consolidating improvements,

reassess changes & producingmore change

8. Anchoring new approaches in theCulture & reinforce the change

The 8 Stage Process of Creating Major Change

Creating Major Change


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Organizational Development

OD Values:1. Respect for people

2. Trust and support

3. Power equalization

4. Confrontation

5. Participation

Organizational Development (OD) A collection of planned interventions, built onhumanistic-democratic values, that seeks to improveorganizational effectiveness and employee well-being.


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Creating a Learning Organization

Characteristics:

1. Holds a shared vision.

2. Discards old ways of

thinking.3. Views organization as

system of relationships.

4. Communicates openly.

5. Works together toachieve shared vision.

Learning Organization An organization that hasdeveloped the continuouscapacity to adapt and

change.

Source: Based on P. M. Senge, The Fifth Discipline (New York: Doubleday, 1990).


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change management - iba

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