managing change
TRANSCRIPT
ROADMAP
The context
What is organizational change?
Processes for managing change
People and change
Organizational Development
Confl ict resolution
Fostering innovation
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GHOSHAL & BARTLETT
Old values: compliance, control, contract and constraint
New values: discipline, support, trust and stretchSuccessful change involves simplif ication,
integration, and regenerationPhased approach essential, along with focus on
people’s attitudes, assumptions and behaviorsBrings both organizational design and human
resources lessons to bearGhoshal and Bartlett provide a high-level model for
change, let’s look at some of the details and lessons learned at a more granular level
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WHAT IS ORGANIZATIONAL CHANGE?An alteration of an organization’s environment, structure, culture,
technology, or people A constant force An organizational reality An opportunity or a threat
Change agent A person who initiates and assumes the responsibility for managing a change in an
organization
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BASIC QUESTIONS FOR CHANGE AGENTSWhat are the forces acting upon me? What are the pressures I should take into consideration as I decide what to change
and how I should change it?
What should we change? Should the changes be strategic and companywide or relatively limited?
How should we change it? How should we actually implement the change?
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FORCES FOR CHANGE
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External Forces Internal ForcesCompetition Laws and regulations
Strategy modifications
New technologies New equipment
Labor market shifts New processes
Business cycles Workforce composition
Social change Job restructuring
Compensation and benefits
Labor surpluses and shortages
Employee attitude
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THREE CATEGORIES OF CHANGE
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Organizational Culture
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MODEL FOR PLANNED ORGANIZATIONAL CHANGE
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FIGURE 8–1Source: Adapted from Larry Short, “Planned Organizational Change,” MSU Business Topics, Autumn 1973,pp. 53–61 ed. Theodore Herbert, Organizational Behavior: Readings and Cases (New York: McMillan, 1976), p. 351. G.Dessler, 2003
TWO VIEWS OF THE CHANGEPROCESS“Calm waters” metaphor A description of traditional practices in and theories about organizations that likens
the organization to a large ship making a predictable trip across a calm sea and experiencing an occasional storm
“White-water rapids” metaphor A description of the organization as a small raft navigating a raging river
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CHANGE IN “CALM WATERS”
Kurt Lewin’s Three-Step ProcessUnfreezingThe driving forces, which direct behavior away from the status quo, can be increased
The restraining forces, which hinder movement from the existing equilibrium, can be decreased
The two approaches can be combinedImplementation of changeRefreezing
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CHANGE IN “WHITE-WATERRAPIDS”Change is constant in a dynamic
environment
The only certainty is continuing uncertainty
Competit ive advantages do not last
Managers must quickly and properly react to unexpected events
Be alert to problems and opportunitiesBecome change agents in stimulating, implementing
and supporting change in the organization
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IS A NEW STRUCTURE REALLY REQUIRED?
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LIS580- SPRING 2006 12 FIGURE 8–2Source: Adapted from Michael Goold and Andrew Campbell, “Do You Have a Well-Designed Organization?” Harvard Business Review, March 2002, p. 124.
When you identify a problem with your design, first look for ways to fix it without substantially altering it. If that doesn’t work, you’ll have to make fundamental changes or even reject the design. Here’s a step-by-step process for resolving problems.
When you identify a problem with your design, first look for ways to fix it without substantially altering it. If that doesn’t work, you’ll have to make fundamental changes or even reject the design. Here’s a step-by-step process for resolving problems.
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IS A NEW STRUCTURE REALLY REQUIRED? (CONT’D)
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Source: Adapted from Michael Goold and Andrew Campbell, “Do You Have a Well-Designed Organization?” Harvard Business Review, March 2002, p. 124.
G.Dessler, 2003
1. Create a Sense of Urgency
2. Decide What to Change
3. Create a Guiding Coalit ion and Mobil ize Commitment
4. Develop and Communicate a Shared Vision
5. Empower Employees to Make the Change
6. Generate Short-Term Wins
7. Consolidate Gains and Produce More Change
8. Anchor the New Ways of Doing Things in the Company Culture
9. Monitor Progress and Adjust the Vision as Required
A NINE-STEP PROCESS FOR LEADING ORGANIZATIONAL CHANGE
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HOW IMMUNE IS THE PERSON TO CHANGE?
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FIGURE 8–3Source: Robert Kegan and Lisa Lahey, “The Real Reason People Won’t Change,” Harvard Business Review, November 2001, p. 89. G.Dessler, 2003
BARRIERS TO EMPOWERMENT
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FIGURE 8–5Source: Reprinted by permission of Harvard Business School Press. From Leading Change by John P. Kotter. Boston, MA. 1996, p. 102. Copyright © 1996 by the President and Fellows of Harvard College, all rights reserved. G.Dessler, 2003
ORGANIZATIONAL DEVELOPMENT
Organizational Development (OD) An approach to organizational change in which the employees themselves
formulate the change that’s required and implement it, usually with the aid of a trained consultant.
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OD INTERVENTIONS
Human Process InterventionsAimed at enabling employees to develop a better
understanding of their own and others’ behaviors for the purpose of improving that behavior such that the organization benefits.
Sensitivity Training (Laboratory or T-groups)
Purpose is to increase participants’ insight into their own behavior and that of others by encouraging an open expression of feelings in a trainer-guided group.
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OD INTERVENTIONS (CONT’D)
Team Building The process of improving the effectiveness of a team through action research or
other techniques.
Survey Research The process of collecting data from attitude surveys filled out by employees of an
organization, then feeding the data back to workgroups to provide a basis for problem analysis and action planning.
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TECHNOSTRUCTURAL APPLICATIONS OF ODFormal Structure Change Program An intervention technique in which employees collect information on existing formal
organizational structures and analyze it for the purpose of redesigning and implementing
new organizational structures.
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STRATEGIC APPLICATIONS OF OD
Strategic InterventionAn OD application aimed at effecting a suitable fit
among a firm’s strategy, structure, culture, and external environments.
Integrated Strategic ManagementAn OD program to create or change a company’s
strategy by: Analyzing the current strategy Choosing a desired strategy Designing a strategic change plan Implementing the new plan.
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ORGANIZATIONAL STRESSORS:ROLE DEMANDSRole confl icts Work expectations that are hard to satisfy
Role overload Having more work to accomplish than time permits
Role ambiguity When role expectations are not clearly understood
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CONFLICT HANDLING STYLES
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FIGURE 8–7Source: Source: Kenneth W. Thomas, “Organizational Conflict,” ed., Steven Kerr, Organizational Behavior (Columbus, OH: Grid Publishing, 1979), in Andrew DuBrin, Applying Psychology (Upper Saddle River, NJ: Prentice Hall, 2000), p. 223. G.Dessler, 2003
STIMULATING INNOVATION
CreativityThe ability to combine ideas in a unique way or to make
unusual connections
InnovationThe process of taking a creative idea and turning it into
a useful product, service, or method of operation Perception Incubation Inspiration Innovation
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STRUCTURAL VARIABLES AFFECTINGINNOVATIONOrganic structuresPositively influence innovation through less work
specialization, fewer rules and decentralization
Easy availabil ity of plentiful resourcesAllow management to purchase innovations, bear the
cost of instituting innovations, and absorb failures
Frequent inter-unit communicationHelps to break down barriers to innovation by
facilitating interaction across departmental lines
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