CHANGE & KNOWLEDGE MANAGEMENT PART A : CHANGE MANAGEMENT MODULE 1 – PERSONAL GROWTH

1) Self Awareness:
• • • • • Is the ability to be aware of what one is feeling? Is self understanding Is the knowledge of one’s true feelings at the moment? Is one of Goleman’s five dimensions of emotional intelligence in the workplace? Eg: Raju recognises that he is angry, so that he will wait himself to cool down and gather more information before taking an important personnel decision.

2) Self Analysis & Management/Self Monitoring:
Definition: A systematic attempt by an individual to understand and analyse one’s own personality without the help – another. • • If a person knows his skills and abilities it will help him to develop greater self confidence and enable him to present a positive image to those he deals in. Self analysis of skills will lead to: − Working effectively with others – approachability, teamwork, cooperation, rapport and adaptability” − Communication – listening, enthusiasm, clarify, pertinence, confidence. − Judgements and decision making – decisiveness, research, planning, reaching a conclusion, evaluation. − Persuading and influencing – communication, leadership, negotiation, motivation, charisma, determination, forcefulness, vision, empathy. − Ability to solve problems – critical thinking, analysis, lateral thinking, creativity. − Time management – ensuring assignments are done on time. − Use of IT – word processing report to solve problems quickly. − Achieving one’s goals – determination, commitment, will power resolution, stamina, ambition, energy, resistance. − Specialist subject knowledge. • Self analysis provides the opportunity to turn potential failures into triumphs, through appropriate interpretations.

After analysis one has to self manage. There are 12 steps of self management:

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Make a decision that you desire to achieve the goal. Believe that you will achieve the goal. Write down your goal on paper. Be honest with yourself. Analyse your present position. Use deadlines. Identify the rocks that stand in your way. Identify the skills you need. Identify those people from whom you need co-operation Make a complete business plan. Visualize the perfect outcome, emotionalise how terrific you will feel when the outcome is achieved and make the necessary affirmations consistent with achieving the goal. − Determine to back your plan with patience and persistence.

3) Self-Efficiency:
• Self efficiency refers to a person’s belief that he has: − − − − • The ability The motivation The situational contingencies. To complete a task successfully.

People strong in self efficiency have a − ‘Can do’ attitude towards a specific task. − ‘Can do’ attitude for various challenges in life.

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Social learning/observational learning increases self efficiency by observing someone else’ actions. People have the drive for self efficiency – a belief that they have the necessary capabilities to perform a task. Management should provide opportunities for meaningful involvement of people in the activities towards the achievement of organisational goals or objectives. Albert Bandura, a famous behavioural scientist says: “Unless people believe that they can produce desired effects and forestall undesired ones by their actions they have little incentives to act” “They have the core belief that they have the power to produce desired results”

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Bandura’s task-specific self-efficiency in ‘state like’ and specific task oriented. Bandura also states a ‘generalised self efficiency’ which reflects people’s belief in successfully accomplishing tasks across a wide variety of achievement situations – called as ‘trait like’

a) Self efficacy Vs Self-esteem: 1. Self esteem Is a global construct of one’s evaluation and belief of overall worthiness Is stable and traitlike Self efficacy Is one’s belief about a task and contact specific capability. Is changing overtime as new information and task experiences and gained and developed and is statelike. Is a current assessment of one’s future success at task.

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Is aimed at any aspect of one’s current self

b) The process & impact of self efficacy: The Process: • • • • • Directly, the self-efficacy process starts before individuals select their choices and initiate their efforts. People tend to weigh, evaluate and integrate information about their personal capabilities. This initial stage of process has nothing to do with individual’s abilities or resources. It rather, depends upon how they perceive or believe they can use those abilities and resources to accomplish the given task in this context. This evaluation of perception then leads to the expectations of personal efficacy which in turn determines: − The decision to perform the specific task in this context. − The amount of effort that will be expended to accomplish the task − The level of persistence that will be forthcoming despite problems, regardless of evidence and adversity. The Impact: Self-efficacy can directly affect: • • • Choice behaviour: Decisions made based on how efficacious a person feels towards the opinion in work assignments or careers, etc. Motivational effort: People will try harder and give more effort on tasks where they have high self efficacy than those where the efficacy judgement is low. Perseverance: Those with high self-efficacy bounce back, be resilient when meeting problems or even failure, whereas those with low efficacy tend to give up when obstacles appear.

People with high self-esteem believe that they have abilities to undertake challenging jobs. Low esteem people prone to the beliefs and behaviours of those they respect. This is called as organisation based self esteem (OBSE) Directly related to the desire for success. Self esteem has to do with people and self-perceived competence and self image in an organisation. low esteems will tend to be concerned with pleasing others. Low esteem people are dependent on the receipt of positive evaluations and approvals from others. Self managed work teams Job design and goal setting. since they expect failure. People with low self-esteem are more susceptible to external influence. People with low efficacy say ‘I know I can not do that.• Facilitating through patterns: People with high self-efficacy say ‘I know I can figure out how to solve this problem’. High esteem people tend to choose unconventional jobs. In managerial positions. . Leadership 4) Self-Esteem: • • • • • • • • • • • Refers to the feeling of like or dislike of one-self. • c) Sources of Self-Efficacy: Self Efficacy Masterly Experiences or Performance Attainments d) Applications: • • • • • Vicarious Experiences of Modeling Social Persuasion Physiological and Psychological Arousal Training and development Stress management. Low esteems are less likely to take unpopular stands. I do not have the requisite ability’ Vulnerability to Stress: People with low self-efficacy tend to experience stress and burnout. High efficacy people enter into potential stressful situations with confidence and assurance and thus are able to resist stressful reactions.

• • • • • High esteems are more satisfied with their jobs. Based on the interpretation of how we believe we are supposed to behave. . satisfaction. − Yet another study says: “High self esteem can be a good thing. less anxiety. each playing a role. − One study found that people with high self-esteem handle failure better than those with low self esteem. but only if like many other human characteristics – such as creativity. Low esteems are less satisfied with their jobs. hopelessness and depressive symptoms. That view indicates how one is supposed to act in a given situation. Research results on self-esteem are mixed. feelings. High self esteem people have more positive attitudes. Our behaviour varies with the role we are playing. Everyone has to play a number of diverse roles. intelligence and persistence – it is nurtured and channeled in constructive ethical ways otherwise it can become antisocial and destructive” • 5) Roles: • • • • All group members are actors. we engage in certain types of behaviour. People with low self-esteem are not confident in thinking ability. a) Role Concepts: are associated with roles a i) Role Identity: • • Certain attitudes and actual behaviour are consistent with a role and they create ‘the role identity’ People have the ability to shift roles rapidly when they recognise the situation and its demands clearly require major changes. lack negotiation and interpersonal skills and are reluctant unable to change. − Another study found that those with high self-esteem tended to become egotistical and faced with pressure situations and may result in aggressive or violent behaviour when threatened. both on and off his job. A role is a set of expected behaviour patterns attributed to someone occupying a given position in a social unit. likely to fear decision making. It is found that males score slightly higher in self-esteem than females. a ii)Role Perception: • • • It is one’s view.

conflicts will inevitably arise. they must be highly adaptive and exhibit role of flexibility in order to change from one role to another quickly. It exists when an individual finds that compliance with one role requirement may be more difficult than compliance with another. The complex web of manager – employee role perception. the result is role conflict. Supervisors particularly have to change roles rapidly as they work with seniors. • a iii)Role Expectations: • • Defined as how others behave you should act in a given situation.• Since managers perform many different roles. Reaching such an understanding requires studying the available job descriptions. subordinates. as well as opening up lines of communication to discover the other’s perceptions. to a large part is determined by the role defined in the context in which we are acting. Role of a judge or football referee. How we have to behave. a iv)Role Conflict: • • When an individual is confronted by divergent role expectations. Manager Manager’s perception A of own role Manager’s perception B of employee’s role Manager’s perception C of the manager’s role as seen by the employee Employee D Employee’s perception of manager’s role E F Employee’s perception of own role Employee’s perception of the employee’s role as seen by the managers • • • • The key is for both parties to gain accurate role perceptions of their own roles and for the roles of the other. b) Leader/Manager Roles: by Mintzberg . eg. technical and non-technical activities. Unless roles are clarified and agreed upon by both parties.

Formal Authority and status Interpersonal Roles Figure head Leader Liaison Informational Roles Monitor Disseminator Spokes person Decisional Roles Entrepreneur Disturbance handler Resource allocator Negotiator c) Some Roles Commonly Played by Group Members: (by J.Baron) Task Oriented Roles Initiator Contributors Recommend new solutions to group members Information Seekers Attempt to obtain the necessary facts Opinion Givers Share own opinion with others Energisers Stimulate the group into action whenever interest drops Relations Oriented Roles Harmonisers Meditate group conflicts Self Oriented Roles Blockers Act stubborn & resistant to the group Recognition Seekers Call attention to their own achievements Dominators Assert authority by manipulating the group Avoiders Maintain distance.A. isolate themselves from follow group members Compromisers Shift opinions to create group harmony Encouragers Praise and encourage others Expediters Suggest ways the groups can operate more smoothly .Greenberg & B.

but pervasive too. It is normal and constant. step by step. roles of people. Many a times it is a ‘top down’ management directive. Sometimes it is a ‘radial’ shift from the current to a new process. Sometimes it is also a ‘mutually agreed’ plan for change in various groups of management. Change encompasses leadership. Life itself is almost synonymous with the concept of change. It is dependent upon the organisational environment and or culture. Is fast and is likely to increase further in the present competitive business. Even if the management does not want to change. motivation. • • • • • • 7) Characteristics of Change: • • • • • • Vital if a company were to avoid stagnation. If throws up also a dissatisfied person. A process and not an event. ‘grow up’ leaving behind the characteristics of earlier stages of development and adopt new behaviours with age. To many it is threatening.CHANGE MANAGEMENT MODULE 2 – ORGANISATIONAL CHANGE 2) Defination: “Organisational change is the process by which organisations move from their present state to some desired future state to increase their effectiveness” 6) Importance of Change: • • • • Change is the only thing permanent in the world. • • • • . etc. An organisation too cannot and should not remain constant/stagnant all the time. organisational environment. environments and expectations. it has visions of revolutions. Humans and organisms. Change produces emotional reactions too. Sometimes is an ‘incremental’ change. Change is inevitable. It is a ‘natural’ and ‘adaptive’ change as a consequence/reaction to the external circumstances and pressures. the external pressures force it to change. a trouble maker.

History & Politics: The historical and political evolution of a company will have a significant bearing on its acceptance of change. The image the company likes to promote. − The management and organisation of the company. The unwritten and written long standing rights and policies existing in the company and the likely threats to them. The perception of the company that the customers are holding. Those three components are: − The historical and political evolution of the company. These factors are: • • • • • • • Base & origin of the company Associated values of the company. • • . − The people who work for the company • o The illustration of the 3 components and their inter-relations are shown in the sketch Changes Historical & political Corporate evolution Culture Management & Organisation Changes People 4a. Are the value & image of the company being changed during the change? The origins of the individuals within the company.8) Corporate Culture and Change Management: • All changes interface with three organisational components which constitute the organisational culture. The good and bad experiences of the individuals of the company on whom the new change is vested in. The traditions and norms to which the management and employees are accustomed to.

With increased harassing of technology and processes availability of jobs decrease. It will also impact the structure and operation of the organisation. • • 4c. • • • 4b. promotion or other type of recognition. measure and analyse the effect of the change on the workforce. Before embarking upon the change. personal status. etc.. Both project and group work increase. Role of line management shifts from ‘autocrat’ to that of ‘facilitator’ Senior management takes more of strategic stance. The jobs broaden in terms of scope and of accountability. Every decision on change ‘impacts’ the people. Multi skilling of employees increase and in greater demand. All cautions should be exercised in the people oriented changes. People: • • • • Most of the issues in change management are ‘people’ oriented.Management & Organisation: • • • • • • • • • • • • Changes will impact the roles of management. their acceptance and willingness and take suitable remedial measures. divisions and departments become blurred. They recognize the contribution to the achievement of business objectives. Think carefully the impact of change in every job it affects. and there inter-relationships. The ‘acceptance’ of change process by top management. Typically with any change people expect a reward pay hike.• The relationships and cordiality between the top management and the people who have been vested with the powers of change. The ‘winners’ and ‘losers’ of power. All the activities and outputs gets customer oriented. The likely ‘balance of power’ between the current owners and the functional experts. The requirements of specialists slowly decrease. • . sphere of influence. The boundaries between jobs. Senior management encourages opportunities for progress through innovation.

can frequently overcome resistance at the individual level. group and organisational a) Individual Level Change: • Change is reflected in such developments as changes in job assignment. Others say. since any change at individual level. The groups could be departments or informal work groups. Decisions regarding these changes are generally made by senior management. • • b) Group Level Change: • • • • Most organisational changes have their major effects at the group level. They cover long periods of time. Informal groups can pose a major barrier to change because of the inherent strength they possess. Some say that changes at the individual level will seldom have significant implications for the total organisation. − − − − − Work flows Job design Social organisation Influence the status systems & Communication patterns • • Managers must consider group factors when implementing change. • • c) Organisational – Level Changes: • Changes at this level involve major programs that affect both individuals and groups.9) Levels of Change: 3 Levels – Individual. Change in the organisational level is generally referred to as ‘organisational development’ • • • • • • . Formal groups. physical move to a different location or the change in maturity level of a person which occurs overtime. This is because most activities in organisations are organised on a group basis. will also have repercussions in the group. These decisions are rarely implemented only by a single manger. like unions. Effective implementation of change at the group level. Changes at the group level can affect. Require considerable planning for implementation. Decisions at this level involve major programs that affect both individual and groups. can resist change envisaged by management. the above is not true.

Radial rethinking and redesigning of business processes to obtain rapid organisational effectiveness. Has the following components.6) Types of Change: • Two Types : Evolutionary Change Revolutionary Change • • Evolutionary Change : Gradual. roles and work activities. Ignores existing arrangement of tasks. reduce waste. re-engineering is an example. Developed by Edward Demming Broad goal of TQM is continuous improvement. incremental. Known as Business Process Re-engineering. TQM is an example Revolutionary Change: Sudden. improve quality. TQM is driven by statistical data. Continuous efficiency improvement to reducer costs. drastic & organisation-wide. Business processes Re-engineering Values & Benefits Jobs and Structures Management & measurement • • • . Orients with customer as object. Employees are expected to make suggestions on all aspects of processes and management. a) Total Quality Management (TQM): • • • • Evolutionary change. TQM has 4 key components Systems Change Through TQM Management People Processes • • • b) Re-Engineering: • • • Revolutionary change.

rather than pure directions. bottom up. Re-engineering is radical reinvention and top down approach. TQM is an attitudinal change with constant focus on continuous improvement and customer. Both stress the role of management on coaching and facilitating. lateral thinking and raw creativity associated with senior management. • • • • . performance measurement and reward schemes. Reengineering demands conceptual thinking rooted in supposition.c) Integration of evolutionary & revolutionary change – TQM & Re-engineering: • The popular approach is that the two can not co-exist. Reengineering has a program of change with an identifiable beginning and an end. improvement. intuition. Both demand change of people’s attitudes and their values and beliefs. Both differ in perception too TQM has analytical thinking. Both stress on job description and proper organisation structural relationships. • • • • • • • • e) Dissimilarities between TQM & Reengineering: • • • • • The two differ in their approach to change. TQM focuses on improvement whereas reengineering focuses on customer relationships. The two differ in their impact on organisational culture. comparison fact finding and reasoning. TQM – a continuous. offer a tremendously powerful recipe for building or rebuilding an organisation. Both emphasize the importance of customer. Both promote a process orientation. Both emphasize on power and accountability. Both promote empowerment and involvement high value team work in quality circles. TQM and Reengineering have four identifiable founding principles and commonalities which are summarized as follows: TQM Systems Processes People Management Reengineering Management & Measurement Business Processes Values & Benefits Jobs & Structures • d) Similarities between TQM & Reengineering: • Both emphasize objectivity and this they obtain through statistical analysis and benchmarking. although there is a difference in emphasis. measurement. But the two approaches applied together and with understanding and sympathy.

arising from sources within the organisation. Some are internal. Causes for change: External Causes Globalisation Work force diversity Technological change Managing ethical behaviour Government policies Competition Scarcity of resources Mergers and acquisitions Pollution/Ecological controls Calamities/Emergencies Internal Causes Organisational silence Falling effectiveness Crisis Changing employee expectations Change in the work climate Downsizing Reengineering Productivity improvements Cycle Time Reduction 8) Resistance to Changes: Organisational Level Organisational structures Organisational Cultures Organisational Strategies Over determination (Structural inertia) Sub-unit Level Differences in subcommittee Orientation Power and Conflict Group Level Group Norms Group Cohesiveness Group think Individual Level Cognitive Biases Uncertainty Fear of loss Selective Perception Habit Logical Reasons . arising from outside the organisation. Some are external. TQM can address the problems at the lower levels. The changes stem from several factors. 7) Forces for Change in Organisations: • • • • • Change has become the norm in most organisations.• • Reengineering can address major strategic issues at top level management.

. At P1.9) Force Field Theory of Change: . Initially both the groups may be equal in their force. the change starts occurring in steps and reaches a level of P2. effective change occurs by: • • • Unfreezing the current situation. Refreezing the system so that it remains in this desired state. At P2 the forces balance between the two groups. To get the organisation to change. Simultaneously reduce the resistance for change.Developed by Kurt Lewin Level of Performance Resistance to Change Equal Arrows Change Resistance to Change P2 P1 Forces for change Time • • Refer the sketch In any organisation. When the forces are in balance. managers must adopt a change strategy to increase the forces for change. Moving to a desired condition. • • • • • • 10)Different change Models Lewin’s three stage model of change system: As per Kurt Lewin’s Force Field Model. there are people who push for change and there are individuals who resist for change and desire status quo. the organisation is in a state of inertia and does not change.

New attitudes. values and behaviours Refreezing Reinforcing new values attitudes and behaviours • The model proposes that for change efforts to be successful. Old behaviours should be discarded and new behaviours are introduced. departments or organisations where the changes are to take place. Presenting the existing problem Making the people to recognise the need for change. Management should ensure that the new organisational culture and record systems encourage a new behaviour. the 3 stage processes must be completed. To change sometimes through structural changes. The new way of operating are cemented and reinforced. Eliminating the rewards for current behaviours and discouraging current behaviours. To develop new behaviours. • • • c) Refreezing: • • The change becomes permanent. Failures can be traced back to anyone of the stages. values and attitudes. Old ways of functioning are avoided • • • d) Lewin’s Change Model: Unfreezing Reducing the forces for status quo Moving Developing new attitudes. Encouraging people to search for new solutions. values and behaviours are established as the new way of organisational approach. • • . To change sometimes through organisational development techniques. b) Moving: Aims • To shift or alter the behaviour of individuals.a) Unfreezing: Involves • • • • • • Shaking up the equilibrium state that maintains status quo Encouraging individuals to discard old behaviours.

but the change agent can change the sequences when need arises. • • • • • 11) Planning Models • • • Developed by Lippit. the business must carry on. Later modified by Kolb & Frohman (1970) This model is based on the principle that information must be freely and openly shared between the organisation and the change agent. In the transition state. This model follows a seven step process as in the sketch: • • Scouting Entry Diagnosis Planning Termination Stabilization & Evaluation Action • The phases are generally sequential. This information must be able to be translated into action. customer and suppliers. Watson & Westley (1958). An interim management structure or interim positions may be created to ensure continuity and control of the business during transition. Communication of the changes to all involved. This is a process of systematically planning. Still. the organisation is neither old nor new.e) Transition Management: • • • Is between any two phases of change. organizing and implementing change from the disassembly of the current state to the realization of a fully functional future state within an organisation. Managing transition is essential to keep the organisation going. Transition management ensures that business continues while the change is occurring. employees. play a great role in transition management. • • Entry: − In this phase development of mutual contract and mutual expectations take place. Scouting: − Phase where the change agent and the organisation jointly explore the need for change. − They also explore the areas requiring change. .

− Planning for specific improvement of goals is also made. b) Consultation with a behavioral expert: • After problems are sensed and realized. process observations. • Action: − Indicates the implementation of the steps identified during the planning stage. . − The need for further action or termination is also made in this phase. a) Problem Identification: • • A stage in which the management senses the existence of one or more problems. Also analysis of organisational performance. Methods used-interviews. The consultant provides the client all relevant and useful data. • Planning: − Actual and possible reasons for resistance to change are identified. These problems are removed with the help of an OD practitioner. To determine the strengths and weaknesses of the area under study.• Diagnosis: − In this phase the specific improvement goals are identified. d) Feedback to key client or group: • • • Data gathered is passed on to the client. 12)The Action Research Models: • • This model focuses on the planned change activity as a ‘cyclical process’ 8 main steps involved in the action research model are explained below. the help of an OD expert is sought c) Data gathering & preliminary diagnosis: • • • Consultant and organisational members gather the data. questionnaire. • Stabilization and Evaluation: − Phase where evaluation is undertaken to determine the extent of success of the planned change. • Termination: − Phase where a decision is made to leave the system or to end and begin another.

Reorganizing structures and work designs. Involves and includes: − − − Installing new methods and procedures. Reinforcing new behaviours. situations re-diagnosed and new actions taken. Based on the feedback. further diagnosis and identified the problem. New data is taken to find the effects of actions already taken. etc. Results of additional research are summarized and submitted to the group again. technological and work environment problems to be resolved and the time and costs associated with the desired OD intervention. i) Schematic diagram of action research model: Perception of problems by key individuals Consultation with behavioural science experts Joint Action Planning Feedback by these experts to client group Joint diagnose of problem New data gathering as a result of action Data gathering after action Action Feedback to client group by consultants Rediagnosis & action planning by client & consultant New Action Rediagnosis of situations. Focuses on any additional research needed. f) Joint action planning: • • The consultant and management team jointly agree on problem – solving methods. h) Data gathering after action: • • • Is cyclic in nature. g) Action: • • Stage involves the actual change from one organisational state to another.e) Joint Diagnosis of the Problem: • • • • The group discusses the feedback. The specific action depends upon on the organisation’s cultural. The group does validation. .

Appropriate actions are designed to improve the organisation. And the resources for OD are committed. The basis for this model is that an organisation exists in different states at different times. Approval of the key decision makers is also sought during this stage. Model consists of four phases • • • a) Exploration Phase: • Organisation decides whether to plan for specific change and commit resources for it. • • • • • • . Organisational members who are aware of the need for change initiate the change process. Understanding of the present state of the organisation and the processes of change required to move to another state is required. How much time each will invest and what it will cost. − And the consultant assesses whether the client is ready for change and has the necessary resources and commitment. Diagnosis is jointly undertaken by organisational members and OD practitioners. • • • • The contracting phase lays the ground rules for a collaborative relationship and seeks clarification as to − − − What each party expects from the relationships. b) Planning Phase: • Planning commences once the problems facing the organisation are understood. The change process is undertaken after the ‘diagnoses of sources of problems and then analyzing it. there is a mutual assessment of the requirements.13)Integrative Model of Planned Change: • • • Developed by Bullock and Batten (1985) Describes both organisational states and change processes. This leads to search for OD resources and assistance and then contracting OD experts. wherein: − The organisation members make judgements about consultant’s skill and competence. Goals are set for the change efforts. The rules for carrying out the consulting relationships. Planned movement can occur from one state to another. In the search process.

This is done to assess the progress and check whether positive results are being achieved. professionalization and compliance. Also to check if any modifications and refinements are required for the process. It includes processes aimed at transitioning the organisation from its current state to the desired future state. Population ecology perspective – looks at the limits of change and resistance to change. Resource dependence perspective – examines strategic change.c) Action Phase: • • The changes derived from planning stage are implemented in this stage. • • • d) Integration Phase: • This phase involves making the changes as a part and routine of regular organisational functioning after having successfully implemented and stabilized them. • • . The new behaviour reinforced and further strengthened through: − − − • Regular feedbacks Incentives & Rewards. The change activities are monitored and evaluated periodically. Contingency perspective – focuses on structural change. • Slowly. e) The integrative model of change is indicated in the sketch below: Exploration Stage Change Process Need awareness Search Contracting Planning Phase Change Process Diagnosis Design Decision Action Phase Change Process Implementation Evaluation Integration Phase Change Process Stabilization Diffusion Renewal 14)Perspectives on Change: • • • Four major perspectives on organisational change. Institutional perspective – looks at becoming and change through imitation. the contract with the OD professional is gradually terminated.

the job of a truck loader. • • b) Contingency Perspective: • • Mainly concerned with the structure of an organisation. Organisations divided into manufacturing. Specialization is also known as ‘division of labour’ In an organisation there is usually a horizontal and vertical division of labour. personnel. Environment derived from ‘Environ’ means to ‘surround’. These includes: • • • • • • • • • Customers Suppliers A society Norms Values • • • Competitors Governmental agencies An economy growth rate interest rate of Social inflation Habits • • • Customs The term phenomenon does not refer to a single phenomenon It includes a variety of phenomena in organisations. The fundamental idea is that it is the ‘environment’ which is the source of most of the major changes. An organisation changes if the environment changes. Variety of things that exists outside yet surrounds the organisation. are called as horizontal specialization or horizontal division of labour. Organisation is something that gets resources from outside. converts them into products and services and gives these products and services back to the surroundings. The term ‘environment’ means ‘the surrounding’ That is everything that surrounds the organisation. Two central dimensions of structure-specialization and integration. • Specialization: • • • • • . marketing. Signifies everything that exists outside our organisation.. etc. accounting.a) Notion of Environment: • The most important notion in the four perspectives of organisational change is the idea of environment. Refers to the member and variety of different activities that make up individual jobs in an organisation.. Structure refers to the way in which an organisation breaks down a complex task into individual activities and integrates these separate activities to achieve its purpose. Any job that consists of a single activity or very few activities is a highly specialised job eg.

strategy of an organisation and environment of an organisation. Both specialization and integration are factors that are within the control of an organisation’s management. Contingency factors depend upon contingency variables. Contingent means ‘depending’. The main idea of contingency perspective is that the most effective or appropriate structure is one that is in ‘fit’ or ‘alignment’ with its contingency variables. Organisational changes almost always involve restructuring. Without these coordination mechanisms. procedures and systems and goals. When an organisation grows larger.Integration: • Refers to the various ways and means of coordinating the work of individuals in the organisation. technology of an organisation. Any change in one or more contingency variables results in a misfit between the structure and the contingency variable. Misfit requires a change in the organisation structure. an organisation would be inefficient. These are the central questions based on the contingency perspective. or if they change their strategy or if they acquire new technology. plans and targets. or if there is a change in their environment. The most common and familiar methods of integration are through direct supervision. There are two dimensions that characterise the environment of an organisation. The management can determine the extent of specialization and type of integration required within an organisation. These bring about uniformity and standardization in the activities of the organisation. rules. unproductive and chaotic. The most important aspect of contingency perspective relating to organisational change is the relationship between environment and structure. These variables are: size of an organisation. they need to change their structure in order to remain effective. In restructuring several questions arise. Any change in these two dimensions is called as ‘restructuring’ of an organisation. Lack of fit or misfit affects the performance of the entire organisation. What types of structure? How specialised the jobs should be? What are the coordinating mechanisms in the organisation? Etc. • • • General: • • • • Contingency Perspective: • • • • • • • • • • • • • .

• One is the level of complexity – how many different organisations are there in the environment. strategy and environment commonly occur together. • • • • • • • • • • • • • • • • c) Resource Dependence Perspective: by PFEFEER & SALANCIK • Based on the simple premise that organisations need to acquire resources from the environment in order to survive. necessary to study how the variables impact on one another and how these relationships affect structure. Scholars say that it considers only two variables at a time: strategy and structure. Internal strategies are aimed at adapting and changing the organisation to fit the environment. the higher the level of uncertainty. If the answer is few. If the answer is many. The higher the level of complexity and instability. Are the different organisations in the environment changing? And if yes how fast? If the organisations in the environment are not changing or changing slowly. This makes them dependent on the groups and organisations in the environments which control the resources that the organisation requires. the environment is simple. Pfeffer and Salancik profounded two strategies: internal and external. In other words. If is therefore. This cluster of attributes is called a ‘configuration’. But the contingency variables are themselves related to one another. If they are changing rapidly. It is based on the assumption that attributes of size. The other feature is the level of stability. ‘configurational approach’ has emerged to deal with this inadequacy in the contingent perspective. technology. size and structure. In recent years a new approach called. the environment is complex. Over the years. Task uncertainty is the difference between the amount of information required to perform a task and the amount of information already possessed by the organisation. effective organisations have a cluster of common attributes. Dependence of an organisation on other external organisations for resources makes it vulnerable because it creates uncertainty. environment and structure and so on. then the environment is stable. There are 7 strategies identified: • • • • Internal Strategy: • • Domain choice • Recruitment • Buffing . contingency perspective has come under lot of scholarly criticism. the environment is unstable.

it is more useful to study a population of organisations rather than a single organisation. textile firms. Organisations survive in their niches by developing distinctive capabilities such as skills. Selection: refers to the process through which the environment selects those organisations that have the required features – some are selected out or die. There may be legal and financial barriers to entry and exit from current market or industries.Environmental scanning Geographical dispersion External Strategy: • • • • • Smoothing • Rationing Are meant to alter the environment to fit the organisation. Organisational assets may be specific to its current tasks. Consequently. The niche provides the resources for the organisations. fail to survive. management systems suited only for their specific niche. Some of the reasons can be: − − − − • Organisational leaders may have incomplete information about the environment. some organisations die and a few others are born into the population. • Therefore. etc. There may be political resistance to change inside the organisation. systems. patterns of behaviours. 5 external strategies: • • Advertising Coalescing • • Contracting Lobbying • Co-opting d) Population – Ecology Perspective: • This perspective states that individual organisations can not adapt to changing environments for a variety of reasons. Those organisations that lack these capabilities are unable to get the required sources and therefore. • A major criticism against this perspective is that it does not provide any positive role for managers. There are 3 types of processes for such death and births: − − • • • • • • • • − Variation: are those processes that lead to differences in organisations in terms of strategy structure. The environment consists of different niches. . Retention: constitutes those processes that help organisations retain the features that are required by the environment. Populations means organisations which are similar – restaurants. skills and culture. Each population occupies an ecological niche in the environment. two wheeler manufacturers.

Organisational theories: − Results of the work of scholars and academics. unified and coherent theory. 3 separate areas of management dealing with change. − They only study organisational changes than change organisations. values and culture of the environment in which they operate affect organisations. Organisational Change Models: − − − − − − Work of academics. Norms. Organisations change their structures and strategies not to improve performance but to conform to the norms and standards of the institutional environment. Descriptive – informs us the way in which organisations change. Why? How? Are there different types? Which is better? Organisational levels? Limitations? Messy & Painful? Our knowledge is fragmented. Semi-theoretical and semi-practical. They help organisations to change rather than learning about change.e) Institutional Perspective: • Social norms. Organisations that lack legitimacy have difficulty in getting the requisite resources. They are also called as ‘symbolic elements’. but tend to be general rather than specific. . 2 types of change models: Descriptive & Prescriptive. Such organisations are able to obtain the necessary resources. Organisational Change Tools: − Special tools and techniques intended to bring about specific types of changes in organisations. Processes? • • • Models are useful and less complex than theories and offer practical advice. Prescriptive – lay down guidelines for bringing about effective change in organisations. consultants and practitioners. lawful and proper. • • • • • • 15)Understanding the change Process: • • A manager frequently grapples with change. − No single. Organisations that conform to the norms and standards are considered as legitimate. values and culture make up the institutional norms.

quality and costs. This is truly ‘organisational’ Organisational change includes intro organisational. Right Values Management of change Right knowledge Right action Three components of Productive Change • • We have to distinguish between two types of organisational change. structure and people management. Organisation levers of change − − − − − − • • • • What to change – is content of change. new inventory control. A model of change levers is indicated below: Marketing Technology Managing People Quality Costs . right knowledge and right action that leads to productive change. Four areas which constitute the content of change – technology. Another type refers to the organisation as a whole. One type includes all the changes that take place inside an organisation – computerization. It is the combination of right values. etc. In order to bring about changes in these organisations need to change three other aspects. The above is ‘intro organisational’ change. These are strategy.• • If we want to change effectively we must integrate theory and practice. marketing. How to change – is process of change.

Such changes are generally met with resistance and require careful implementation to overcome the fear. 4 Assembling a body of key managers and other important opinion – formers to gain their commitment to the change process so that this may be disseminated more widely. their emotional and personal relationships are involved. Changes are perceived as ‘deviant or normal’ and ‘threatening or desirable’ ‘Deviants’ are those which are imposed or outside the prevailing cultural norms. 5 Generating an acceptance that this type of change will require a long time to implement fully even though there may be short-term. mistakes and subsequent learning. Such negative action will generate resistance and reduce necessary risk-taking behaviour. ‘BECKHARD’ suggests 10 organisation prerequisites which must exist before transformational change can be achieved. 3 Creating a shared awareness of conditions to produce a common perception that change must be implemented. 7 Educating participants about the need for change and training them with the necessary competence to be effective. They are: Priority Prerequisite 1 Ensuring senior management commitment to the proposed changes which needs to be visible to all participants through out the organisation. Since this involves people. 6 Recognising that resistance to change is a part of the normal process of adaptation. • • • • • • • . 10 Maintaining open communication about progress. 2 Producing a written statement about the future direction of the organisation that makes clear its new objectives. Changes are implemented ‘top down’ or ‘bottom up’ approach Top down is transformational. while bottom up is participative. dramatic changes as part of the overall process of transformation. values and policies. Top down is perceived as imposed and controlled. so that managers can be educated to be aware of this and equipped to manage this reaction.16)Leading the Change Process: • • Implementation of strategic change is likely to be problematic. bottom up is incremental. 8 Persevering with the change process and avoiding blame where an attempt to implement a fact of this process fails. to overcome resistance and gain commitment. 9 Facilitating the change process with necessary resources.

a) Strategic HRM for implementing change: • Hendry & Pettigrew presented the central components of strategic HRM as follows: − The use of planning − A coherent approach to the design and management of personnel systems based on an employment policy and HR strategy and often emphasized by a ‘philosophy’ − Matching HRM activities and policies to some explicit business strategy. These 3 contribute to the employees’ behaviour. • • b) Responsibility for leading the implementation of the change process: • Mabey & Salaman suggests three sources HRM is moving from HR specialist to the line manager. Line Managers: • • . In strategic HRM. Used for both top down and bottom up approaches. personnel and structural. the HR philosophy has to be integrated with the line manager. idealistic situation. − Seeing the people of the organisation as a ‘strategic resource’ for achieving ‘competitive advantage’ • Mabey & Salaman model has an ‘open’ approach to HR strategies. The features are: − Specific HR outcomes or desired employee behaviour has to be adapted to achieve the desired corporate strategy. • • • The 3 key levers are: cultural. but difficult to achieve. Corporate Strategy Culture Personnel Structure Human Resource Outcomes Change is the heart of the ‘open’ approach to HR strategies as indicated in the sketch above. A fantastic.

Secures the resources necessary for change programmes.• Line managers better. • • • • • • . Integrates personnel. Human Resource Specialists: • Increasing importance to the line manager does not signal the death of HR specialist. Sells the ideas of HRM changes to other managers. structural and cultural strategies. The external consultant provides the off the shelf recipe for the client. Operate personnel procedures. Monitor the performances of the procedures. External Consultants: • Besides line mangers and HR specialists working in concert. They act as catalysts to develop novel solutions. Devises the personnel strategies for the best HR outcomes. As shown in the open HRM approach sketch. − − − − − • • Has a close awareness of the organisation’s operating environment and business plans. the HR specialist has a ‘change maker’ role. Recommends course of actions Diagnoses the problems Helps managers to implement change measures. − − − − Communicate plans to their workforce Explain their relevance vis-à-vis strategy. external consultants may also be called upon. Consultant has to be involved from the beginning to the implementation and stabilization stages. The HR specialist.

freedom and independence that individuals have 2. Shared phenomenon – is basic to culture and implies that the cultural ethos is shared among the members of the society.III MBA – CHANGE & KNOWLEDGE MANAGEMENT CHANGE MANAGEMENT MODULE 3 – ORGANISATIONAL CULTURE CHANGE A. Direction: • The degree to which the organisation creates clear objectives and performance expectations. innovative and risk seeking. Two terms are key to the concept of culture History – cultural heritage of a society are passed on from generation to generation. 3. • b) Organisational culture/Corporate culture: • • • • • Has been defined as the: Philosophies Assumptions Attitudes • • • Ideologies Beliefs Norms • • Values Expectations That knit the organisation together and are shared by employees c) 10 Characteristics of Culture: 1. Meaning & Defination: a) Culture: is a complex whole: which includes • • • • • • Knowledge Morals Other capabilities • • • Belief Law Other habits • • Art Custom And acquired by a man in society. . Individual Initiative: • The degree of responsibility. Risk Tolerance: • The degree to which employees are encouraged to be aggressive.

Reward System: • The degree to which reward allocations are based on employee performance criteria in contrast to seniority.4. conflict avoidance dominate this type of organisations. . Control: • The number of rules and regulations and the amount of direct supervision that is used to oversee and control employee behaviour. 6. Integration: • The degree to which units within the organisation are encouraged to operate in a coordinated manner. An Affiliative Culture: Interpersonal relationships are given high priority. Management Support: • The degree to which managers provide clear communication. 9. A Humanistic – Helpful Culture: Organisations are managed in a participative. Conflict Tolerance: • The degree to which employees are encouraged to air their conflicts and criticism openly. 2. An Approval Culture: Agreement. 3. Identity: • The degree to which members identify with the organisation as a whole rather than with their particular work group or field of professional expertise. B. Conformity and adherence are valued. consultative and mutually supportive manner. 4. 10. assistance and support to their subordinates. 7. consensus seeking. Communication Patterns: • The degree to which organisational communications are restricted to the formal hierarchy of authority. A Conventional Culture: These are conservative bureaucratic and traditional organisations. Twelve Types of Corporate Culture: Furnham & Günter in their book ‘Corporate Assessment’ (1993) classified corporate culture as follows: 1. favouritism and so on. 8. we get the essence of culture. • When these characteristics are mixed and meshed. 5.

That is. A Perfectionist Culture: Perseverance. incorporating. 2. An Oppositional Culture: Awarding negativism and being critical is the virtue in these organisations. is workable. locating space. A Power Culture: Using positional power. Wal-Mart D. o This gap is due to the excessive attention paid on cultural plans and inadequate considerations of approach strategy. 8. outperforming others and this culture promotes win-lose situations. A Self Actualisation Culture: Creativity. An Avoidance Culture: Punishing mistakes and no reward to good work characterise this type of organisations. research and development. others are brought into the organisation. 6.5. 10. How Organisational Culture Starts: 1. perfection. o The delivered results are frustratingly disproportionate to the efforts and costs incurred. C. hierarchical orientation. and is worth the investment of time. 9. 7. money. hard work are valued here and avoiding mistakes is the hallmark of this type. 4. At this point. Four Practical Approaches to Cultural Change: Book Titled ‘Strategies for Cultural Change’ by S. . Egs: Motorola. 11. 3. McDonald’s. all in this core group believe that the idea is a good one. obtaining patents. Here. A Dependent Culture: Centralisation. 5. members criticize each others decisions. The founder brings in one or more other key people and creates a core group that shares a common vision with the founder. quality emphasis behaviour is valued in this culture. A Competitive Culture: Employees are rewards and for exceeding targets. is worth running some risks for. achieving targets and accomplishing their own goals and pursuing standards of excellence 12. building and so on. and a common history begins to be built. o The classifications below help practitioners to gain a broad perspective of approaches that are available to them. formal roles and seeking instructions from seniors all the time for all the activities are the traits of this culture. o HR managers should advocate a suitable approach for implementation of cultural change based on the type of cultural change planned and organisational environment.Bate in 1995. o Managers should know that many times the gap between plans and implementation of culture is wide. and energy that will be required. A single person (founder) has an idea for a new enterprise. arbitrariness and subjectivity prevail in the organisations of this culture. The founding core group begins to act in concert to create an organisation by raising funds. An Achievement Culture: It is characterised by success.

technical level • Is used to defined existing order and oppose change initiations. Suit a situation where there is a simple source of authority Loads to a common sense welcoming of new culture Disarm opposition • • • But it usually Mobilises distant Is politically native Lacks skills. not confrontation. Gets seduced back to status quo • 2. 4. quiet Slow change over to new values Deals with means. legitimize later Planned and programmed Explicit learning process Socializing Unified.o The approaches: Appr oach 1. not ends Collusion. Conciliative • • • • • • • • • • 3. Indoctrinative • E. Continuous development Based on power and control Uses informal network Unseen manipulation High participation Act first. Loses sight of its radical intent. How Culture Perpetuates Itself: 4 Hiring & socialization of members who ‘fit in’ with the culture Removal of members who deviate from culture Behaviour 1 Culture 3 Culture communications Culture . Aggressive • • • • • Characteristics Rapid change Dismantles traditional values New culture is noncomplex Top down monitored Detailed plans/actions Reasonable. logical network Advocates one world view • It Can Lead to a strong integrated culture. breadth of support leads to crisis of change. Does not succeed in bringing about fundamental cultural change. Corrosive • • • • • • • • • • • Lead to genuine and large scale change initiated by small scale network Lead to wide scale changes at an informational.

6. activities and behaviours. 3. resulting in ethical and legal problems for individual members. 8. Formulate a clear picture of the firm’s new strategy and of the shared values. 2 – Indicates the cultural justification for the behaviour of the organisation’s members. 4 – This step impacts the culture by hiring and socialization of members who match the culture. expect certain casualties to occur – some employees may leave the organisation and a few set backs may occur to the change effort. 5 – The way to reinforce a culture is to remove those organisational members whose behaviour deviates from the cultural values of the organisation. 2. Develop ethical and legal sensitivity. 3 – New rituals.• • • 2 Managers seeking to create culture change must intervene at these points 1 – The first thing to change is people’s behaviour. Defense resistance. Promoting performers. 5. 7. Such removal reduces the variances in behaviour and sends to those in the organisation powerful signals relating to appropriate behaviour. 10. Despite this. Monitor the progress from time to time. 11. Check on the leadership and support processes to overcome anxiety among managers in giving up their earlier responses. Educating managers about the legal and ethical pit falls inherent in culture change. norms and behaviours needed to make it work. A positive and competitive tension is to be nurtured among department. Guidelines for minimizing such tensions would be: • • • • Setting realistic values for culture change. sub-goals. Involve employees in the change process. Culture change can ignite tensions between organisational and individual interests. . through direction and training. demoting laggards and terminating undisciplined people lead to ethical and legal problems. Identify aspects of the current culture that could still be valid and other aspects that need to be modified or changed. build momentum in terms of initial success. 4. Communicate the change translated into goals. Identify the depth of culture change needed. Providing mechanisms for member dissent and diversity. Guidelines/Checklists for cultural change: 1. Make changes from top down. Not promising what the organisations can not deliver. • • • • F. 9. The top management commitment must be seen and felt. Take a close look at the inner functioning of the organisation and determine if cultural change is necessary. new stories and new heroes are needed to be widely and consistently communicated.

industry. o A reflection of Top Management: • • Cultures evolve from top management. Management’s sayings have powerful influence on employees. o Subculture: • A culture in an organisation may be made up of various subcultures. nature of competition and other factors of environment. Employees quickly detect manager’s lip service. Distinctive: There is no best culture for all times. o Symbolic: • • Management actions are even more important to watchful employees. o Accepted: • Most members must at least accept. G. • Culture depends upon the organisation’s goals.• Helping them develop guidelines for resolving such issues. They must fit together like pieces of puzzle. o Cultures of varying strength: • • Can be characterised as relatively strong or weak. • • o Stable: • Culture should not keep on changing frequently. 10 Characteristics of Organisational Cultures: 1. 1. Depends on the degree of impact on employee behaviour o No one type is the best: . And elements consistent with each other. Integrated: • Cultures will be more easily recognised when their elements are generally integrated. if not embrace the assumptions and values of culture. o Implicit: • Culture should be an increasingly acceptable conversation topic among employees.

entertain and also teach valuable lessons. Publicly recognising heroes and heroines. Stories convey how in the past problems have been solved. • • • • • 2. 1. Memorable stories uplift people. Stories convey a sense of tradition. Story Telling: • Managers are encouraged to engage in story telling as a way to forge a culture. Communicating and changing culture: • • • Organisations have to consciously create and manage their cultures. • • • • • • • • . It also builds organisational identity. Consists of both formal and informal methods. • Unintentional communication of organisation’s culture to employees. Organisational Socialisation: • • All cultural communications are put under this umbrella. Socialization is functional for both workers and their employers. Codes of ethical conduct. Is a continuous process of transmitting key elements of an organisation’s culture to employees. They enhance cohesion around key values. These approaches help to shape the attitudes. Examples of formal communication vehicles for transmitting organisational cultures are: o o o o o Executive visions of the firm’s future Corporate philosophy statements. They must be able to communicate to the employees. thoughts and behaviour of employees.H. Organisational socialization is like placing an organisation’s finger prints on people by planting its own genetic code on them For employees. such as a manager’s error and an executive’s forgiveness. it is the essential process of learning the ropes to survive and prosper within the firm. Story telling is a key means of achieving socialization of employees. Retelling historical success stories. They prove to be powerful ways to create shared meaning and purpose. Good stories tap into the emotions of audience.

Isolation is not productive. • • 4. The interaction between individualization and socialization is shown in the sketch: High Conformity Socialization (impact of organisational culture on employee acceptance of norms) Isolation Low Low Individualisation (Impact of employee on Organisational culture. them creative individualization can infuse new life and ideas for the organisation’s benefit. Culture Change Methods & effectiveness: Probable Effectiveness Culture Change Method Very Great Great Moderate Minimal . When we assume that the culture of a certain organisation invites its employees to challenge. question and experiment while also not being too disruptive.3. Individualization: • Occurs when employees successfully exert influence on the social system around them at work by challenging the culture or deviating from it. Deviation from norms) High Rebellion Creative individualism • • The two extremes rebellion and conformity may prove dysfunctional to the organisation.

or destroy the culture. g) Work out a desired strategy and desired culture and ensure they match and congruent. Top down and bottom up are two of the approaches by HRM for change of culture. Adequate resources need to be allocated to support culture change and maintain it. artifacts and declared values and be involved in all the main change phases. It can be realigned to the strategic direction on organisation wishes to take. • • Prior to any culture change. abandon the culture. Typical frameworks for managing culture change: As suggested by Beckhard the general principles for successful cultural change are as follows: f) Know & understand the current values. The reality of achieving this is very complex and organisations with similar backgrounds and similar environments develop different cultures at different situations. h) Identify the gap between actual and desired culture and take steps to move the actual culture to the desired culture. Culture is a dynamic. senior management must understand the implications of the new culture for their own practices. Culture change programs must pay careful attention to the organisation’s power bases and opinion – leaders such as trade unions and employee’s association • • • Publicly recognise heroes & heroines Appoint a manager of culture Formulate Value statement . How can organisations realign culture? Architecture: • • • • • • Features of the Change There has been considerable debate as to whether culture can be managed! Lot of focus on whether or not it can be modified.Train Employees Reward Behaviours Communicate Top Management Support Use Stories and Myths Use Slogans I. 1. continuously developing phenomenon Managers can manage culture. once it has been achieved. prevent its change. Culture can be altered. patterns of behaviour within the organisations and strategic directions of the organisation. it can be managed. cultures. change culture.

Bottom up approach for cultural change: • • • • • Focuses on incremental approach Change is developed from bottom up. In order to create a change in culture.• Culture change programs must take into account an organisation’s existing practices and approaches in recruitment. etc. training. Change of organisation structure. management of office space. procedures and structures support them Spread the changes out to other areas of . Typically looks towards organisation-wide consensus. and focusing on existing values and cultures. performance management and employee relations. • • 2. it is crucial that employees have the necessary capabilities and behaviours to realize the necessary change. Every opportunity should be taken to close the cultural gaps. To succeed. organisations need to decide how practices or procedures will be amended to support the new espoused values and contradictory practices removed. Writes on corporate excellence follow this. • • • 3.. reinforce the existing culture to achieve the newly espoused cultures and values. empowerment. excellence. provision of educations and training. called ‘task alignment’ Task alignment could be achieved through a series of overlapping steps taken at the business level as shown below: 6 Evaluate outcomes of changes and amend vision and actions as necessary FINISH 5 4 Confirm changes by ensuring that policies. HRD programmes like quality. Such changes are tied to an organisation’s critical path Based on solving concrete business problems. Top-down draw backs: o Messages of initiative. autonomy and innovation are usually conveyed through bureaucratic methods such as team briefings. o Employee believes the new culture conflicts with their existing culture. selection and retention. Top Down Strategy for cultural change: • • • • Often called ‘programmatic change’ Typically initiated and led from the top. performance related pay are a few HR interventions for change of culture.

organisation

3 Work towards common agreements of the vision and skills and actions to carry it forward

2

Work jointly to develop a vision for the future of the organisation START

1

Start to ensure commitment to the change by involving people in defining the problems

Focuses on parts of the organisation away from the corporate headquarters level. Emphasis on individuals shared commitment and vision as a prerequisite for change. Change is enabled by developing people’s abilities and through improved co-ordination between people. Results generate stronger commitment. The appropriateness of a chosen strategy will depend upon the organisation and what an organisation wishes through cultural change.

• •

4. Design Parameters for cultural change:

The relative importance, weight and value will differ between organisations. What is effective or appropriate in one situation may not be in another. Bate’s development of ‘design parameters for cultural change’ Parameters Expressiveness Aspect of the organisation Affective (feelings) Description

• •

component The ability of the cultural change approach adopted to express a new symbol which captures employees’ attention and excites or converts them.

Social components The ability of the culture change (relationships) approach adopted to create a shared common understanding and sense of common purpose amongst a group of employees or the whole organisation. Demographic The ability of the culture change component approach adopted to spread through (number/depth) out all levels of an organisation and to affect employees’ basic underlying assumptions

Penetration

Commonality

Adoptability

Development component (process)

The ability of the culture change approach adopted to adjust to changing organisational and wider environmental circumstances.

Durability
• •

Institutional component The ability of the culture change (structure) approach adopted to create a lasting culture.

At the start of a culture change process, expressiveness may be considered more important whilst commonality and penetration are considered as less important. However, as the process continues and the new culture is spread through out at all levels of the organisation, commonality and penetration may become more important.

5. Relative Effectiveness of Top-Down Approach and Bottom-up Approaches to cultural change across different Design Parameters of cultural change: Parameters Expressiveness Level of Effectiveness of Top-Down Approaches Bottom-up approaches High – deal in simple Low in short term – focus on messages and specialise in concrete problem generates communicating these lots of detail rather than a new effectively and reasonably symbol quickly at the practice/artifact level Low – promoted unifying High – operates through feeling often ceases after shared understanding and formal program ends; methods creates a culture of trust and often lead to resistance and understanding. lack of common ownership Variable – depends on ability of interventions to affect more than just practices or artifacts: highly structured programs likely to reach all employees Low – tend to be inflexible and imply instant fix programmed nature implies conformity and devalues deviance. Low in short term – involves only part of the organisation High on long term – involves discussing proposals and implications with employees High – concrete problems lead willing to accommodate new views and find best fit with organisational requirements.

Adaptability

Penetration

Commonality

Low – based on senior management’s desires; lack of ownership by employees likely to be highest with transformational change

High – employees are keen to preserve what they have created; especially high when a development of existing practices which employees own rather than transformational change.

• • • •

• • • • • •

J. The Transglobal & Cross Cultural Contents:
• •

A global economy is now a reality. The shape of international trade has changed dramatically in recent years with the emergence of European Community, revolutionary changes in the former Soviet Union & Eastern Europe and strong markets developing in China, India, Japan, Korea and many other emerging nations. Many organisations, now do business in more than one country. These multinational organisations add powerful new dimensions to organisational behaviour. These multinational organisations add powerful new dimensions to organisational behaviour. They encompass different social, legal, political communication and economic environments. Conditions affecting Multinational operations:

• •

People of the world are organised into communities and nations, each in its own way, according to its resources and cultural heritage. There are similarities and significant differences. a) Social Conditions:

Durability

The two approaches effectiveness differs across the parameters. No approach is the best fit any organisation. No one approach will give everything we require. Strategy for culture change should be tailored to the requirements of the organisation at a particular time. Top-down approach brings relatively rapid changes in the organisation. Bottom-up approach takes a longer time. Managing organisational culture change is extremely complex. It needs to take account of the existing culture. Also what type of change we need – transformational or developmental WHIPP says: ‘culture is a Pandora’s box’

In many countries the overriding social condition is poorly developed human resources.

and those trained locals become the nucleus for developing still more people. Managers in foreign countries need to become familiar with local customs and practices. • • • • c) Political Conditions: • The following have a significant effect on organisational behaviour: o Instability of the government o Nationalistic drives – foreigners cornered. They need to recognise that the resolution of ethical issues are not always clear cut Another major issue revolves around the treatment of women and other minorities. customs and behaviours. o Subordination of employers and labour to an authoritarian state. scientists and technicians. Managers need to be aware of the possible differences in both laws and ethical values that define acceptable and unacceptable behaviours in foreign countries. • • • • • • • • b) Legal & Ethical Conditions: • • • Countries around the world vary substantially in their legal systems. A major issue affecting multinational corporations has been how to deal with contrasting local practices. Parallely vast training programs begin to prepare the local workforce. What is called as ‘training multiplier effect’ or ‘ripple-effect of self development’ comes into action. Lending of skilled people to a nation for training their local replacements may provide a more lasting benefit to its development than lending the capital. Their employment practices and their business practices vary. Another social factor on which countries are often compared is the work ethic of their employees – long/short hours. Loaned skilled people develop others. A significant social condition in many countries is that the local culture is not familiar with the advanced technology or complex organisations. d) Economic Conditions: • The most significant economic conditions in less developed nations are: . These deficiencies limit the ability to employ local labour productively. Needed skills must be imported temporarily from other countries.• There are major shortages of managerial personnel.

They represent a critical environmental condition to which the managers of international operations must adapt. − Rapid inflation. • • • These beliefs. Then. Inflation makes the economic life of workers insecure. • • • • • • • • • • • e) Culture & Behaviours: • • • • Culture determines behaviours. political and economic conditions as a whole. norms and values are passed on to future generations through cultural rituals. some workers passively accept the situation. All these factors make it difficult to motivate employees. Instead they are too well established and woven into the whole social fabric of the nation. Looking at social. others aggressively protest. Money loses its value rapidly. Human resource practices too. Tremendous disparity in distribution of wealth starts. Cultural norms: • . social unrest increases. legal. Culture may be understood as the all encompassing: o Shared beliefs o Norms o Values that guide the everyday life of individuals. stories and symbols. ethical. But culture is the determining factor. As a result natives of those countries may not believe that additional effort on their part will earn associated rewards. vary across cultures. security and trained human resources that developing countries require to be more productive. bad condition causes hurdle in the introduction of advanced technology and sophisticated organisation systems. − Unequal distribution of wealth • Rapid population increases coupled with a lack of national economic growth make it unlikely that family incomes will progress significantly. These limiting conditions cannot be changed rapidly. Behaviour in organisational settings varies across cultures.− Low per capita income. They constrain the stability. Differing standards of living and varied geographical conditions can also cause variations in behaviour.

In many cultures. elitism and concern for form. o They tell us what we can do and what we cannot. Culture not only influences behaviour and human resources but also life style like elegance. Stories and rituals: − It is important to communicate the norms. etc). Cultural values of the society define the meaning and reason of business and how it is organised. Japanese find a higher value in belongingness in a group. values and beliefs of a society to its members. Spain. Cultural clusters do have some differences but similarities are predominant. International business utilizes the culture clustering approach in formulating their global strategies. stories and rituals. Arab culture concentrates on their own family security and relying on god for destiny. People also expect recognition for seniority and age in hierarchical culture. Latin American countries Sometimes cultural differences have a direct impact on the strategic orientation of companies like USA companies emphasize on more profits. f) Culture Clusters: • • Countries that share cultural similarities form cultural clusters. − Culture is continuously reinforced when people see symbols. • Cultural Symbols. • Cultural Values: − − − − − − − − − − Tell us what is most dear to our hearts. Americans for example value freedom most. cultural values of the society define the meaning and reason of business and how it is organised – high profits are not a criterion – Arabs. In more egalitarian culture (like US. people expect reward and compensation for their performance rather than for their seniority. In many hierarchical cultures (like India. Hofstede’s Cultural Dimensions: • A pioneering work done by Dutch Scientist Geert Hofsteds. dividends and stock prices while Japanese companies focus more on new product development and market share. − Culture is passed on from one generation to another through its symbols. • K.o Prescribe behaviours and practices. etc) the meaning and value of a job lies more in the status than in the pay packet. Germany. Cultural values also have a major influence on the way people relate to each other and also to what they aspire for in a job. Italy. Japan. hear stories and engage in rituals. .

Have flatter organisation structures Have smaller proportion of supervisory personnel Have highly qualified people in the lower state of workforce. • Organisations in low distance countries: − − − − Tend to be decentralized. represent cultures with lower distance. Organisations tend have tall structures. and The powerful should not hide their power • The dimension of power can be measured in a number of ways: − − − − In high power distance countries generally people dislike work People try to avoid the work. etc. must force workers to perform. Norway. Uncertainty avoidance.. Managers believe that they must adopt theory X leadership style. Individualism and Masculinity/Feminity. Those at the top make most of the decisions. • • High power distance countries have norms. Most people should be dependent on a leader. and must supervise their subordinates closely. some are high. 1) Power Distance: • • Power distance is the extent to which less powerful members of countries companies and organisations accept that power is distributed unequally. Germany. Such structures encourage and promote inequality between people at different levels. • USA. Countries in which people blindly obey the orders of superiors have high power distance. some are low. • In high power distance countries: − − − − − − Decision make is centralised. Australia. values and beliefs such as: − − − − − Inequality is fundamentally good. . The powerful are entitled to privileges. They will have a large proportion of supervisory personnel People at low level have low of job qualifications. The 4 dimensions are: Power Distance. Managers believe that they must be authoritarian.• He identified four cultural dimensions around which countries have been clustered with people in each group exhibiting identical behaviours. Canada. Everyone has a place.

and Consensus is important. 3) Individualism/Collectivism: • Individualism is the tendency of people to look after themselves and their family only. Less risk taking managers. India.• France. Experts and authorities are usually correct. values and beliefs which accept that: − − − − − Conflict should be avoided. These employees have a high level of uncertainty avoidance and prefer to avoid ambiguity at work. Fewer written rules More risk taking by managers Higher labour turnover More ambitious employees Organisation encourages employees to use their initiative and assume responsibility for their actions. • . • Countries with high uncertainty avoidance culture have: − − − − − A great deal of structuring of organisational activities. Deviant people and idea should not be tolerated. Mexico and Indonesia are examples of societies with a high power distance. • • High uncertainty avoidance countries are characterized by norms. Low labour turnover Less ambitious employees • Societies with low uncertainty avoidance cultures have: − − − − − − Less structuring of activities. 2) Uncertainty Avoidance: • • Is the extent to which people threatened by ambiguous situations? Employees in some cultures value clarity and feel very comfortable receiving specific directions from their supervisors. More written rules. Collectivism is the tendency of people to belong to groups and to look after each in exchange for loyalty. Laws are very important and should be followed. Brazil.

Pakistan and a number of South American countries exhibit collectivism. and beliefs which accept that: − − − • People are responsible for themselves. Promotions are based on one’s performance Decision making is an individual’s responsibility. • In a collectivist organisation: − − − Tend to promote nepotism in selecting managers. and Groups protect individuals in exchange for their loyalty to the group. Denmark & Sweden. values and beliefs that: − − − − − − Gender roles should be clearly distinguished. money. and other material things. . India.• • Individualism is common in US. values. Men usually choose jobs that are associated with long term careers. success and money are important. especially men. • • • • • In highly masculine societies. Men are assertive and dominant. There are men’s jobs and women’s jobs. should be decisive. People of Indonesia. Australia. Countries high on individualism have norms. • In a individualistic organisation: − − − Favouritism shown to friends and relatives is considered to be unfair and even illegal. Women usually choose jobs that are associated with short term employment. Important decisions are made by older senior managers. and Advancement. before marriage. such as family. that: − − − One’s identity is based on one’s group membership. jobs are clearly defined by gender. Group decision making is best. Highly masculine cultures have norms. 4) Masculinity/Feminity: • Masculinity refers to a situation in which the dominant values in a society are success. Individual achievement is ideal and People need not be emotionally dependent on organisations or groups. Canada. Work takes priority over other duties. • Collectivist countries believe. Machismo or exaggerated maleness is good. Promotions are mostly based on seniority and age. People.

L. Adjustment Phase-1 Phase 3 Phase 2 Phase 4 • • Time Crisis/ Culture Shock • The curve is based on psychological reactions to the overseas assignments and comprise 4 phases. A slow negative appraisals of location and situation leads to a crisis. Cultural Adjustment: • The process of cultural adjustment is a critical determinant of an expatriate’s performance. ‘failure as an early recall’ may be triggered at this point. Adjustments to a foreign culture are multifaceted. The way the expatriate copes with the psychological adjustment at this phase has an important outcome in terms of success or failure. A haunting thought. fear of the unknown. There can be an upswing of mood upon arrival in the ‘assignment’ country that produces a ‘honeymoon’ phase. and individuals vary in terms of their reactions and copying behaviours. Then novelty fades off. The concept of an adjustment cycle or U curve shows that typical phases that may be encountered during cultural adjustment. • • • Phase 2: • • This is a very critical time. realities of everyday life in an alien land starts. Phase 1: • The expatriate may experience a range of positive and negative emotions such as excitement anxiety. sense of adventure and so on. • .

The table below shows the motivational approaches and cultural factors for three distinct cultures. A healthy recovery is maintained The bottom of the U-shaped curve is marked by ‘culture shock’. profit sharing social services. Factor American Management Leadership styles friendliness Control Emotional appeal Recognition Material awards Threats Japanese Persuasion. money Opportunity Group participation Religion. parenthood Of others/ parenthood • • Independence decision making space. Service culture shock is often a positive sign indicating that the expatriate is becoming deeply involved in the new culture instead of remaining isolated in an expatriate ghetto • • M. salary fringe benefits increase Loss of job Out of group Demotion . there is an upswing The person begins to adjust to the new environment. commission Annual bonus. family affair. personal attention. which is the expatriate’s reaction to a new. and applications reflect the culture of the country directly or indirectly. he comes in terms with the demands of the new environment. Cultural Contracts in motivation – Motivation Across Cultures: • • What are the motivations of people in international settings? In multicultural work environments. company success nationalistic. functional group activities Group harmony Arab Coaching.Phase 3: • Once the individual passes this crisis point. not everyone is motivated by the same factors. approaches. unpredictable and uncertain environment. Gift for self/family. Then. Motivational processes. admiration Individual Group identity Individual status contribution belonging to group class/society promotion Salary. time. • • Phase 4: • • • The upswing levels off after sometime. Culture shock is a natural response to the stress of immersing oneself in the new environment.

Social skill: refers to the proficiency in managing relationships and building networks along with an ability to find common ground and to build rapport. Also in response to the cultural and institutional context of the multinational country locations. Leaders with a high level of self regulation exhibit trustworthiness. Leadership Across Cultures: • A multinational leader needs to possess certain unique qualities to become successful in global settings. Self regulation: is the ability to control redirect disruptive impulses and moods – the ability to think before doing. freedom belonging social status N. Leaders with a high level of empathy demonstrates an ability to build and retain talent in their organisation. Successful leadership in multinational companies requires that managers adjust their leadership styles to fit the different situations. show cross cultural sensitivity and become known for offering great services to clients and customers. An international manager emotional intelligence. self regulation. a) EI has a set of 5 individual and social competencies. integrity. security. motivation. a realistic self assessment and a self deprecating humour. Such responses are required while dealing with contingency factors such as subordinates’ characteristics. drive to achieve and optimism. • • Self awareness: is the ability to recognise and understand one’s moods. Motivation: is reflected in a passion to work for reasons that go beyond money or status. the leadership needs to be situational. Leaders high on motivation exhibit remarkable commitment.Cultural values Competition. Leaders with a high level of social skill are effective at leading change. • • • b) Leadership in the National Context: • • In international settings. Reputation. family taking. organisational • • • • • • Empathy: refers to understanding the emotional make up of other people and skill in treating people according to their emotional reactions. risk Group harmony. religion possession. show a superior ability to build and lead teams and become known for their persuasiveness. • • . Leaders with a high level of self-awareness exhibits self confidence. comfort with ambiguity and openness to change. empathy and social skills. emotions and drives as well as their effects on other people. they are: self awareness. material achievements.

Universalism in Leadership/Transformational Leadership: • • Universalism of leadership is a new concept. This means. • • . They are capable of motivating their followers to accept new goals and new ways of doing things. Challenges subordinates to find new solutions to old problems. Articulates a vision: • • • • • • • Presents in vivid and emotional terms an idealized vision of future of the organisation What it can and should become And makes the vision clear to all in organisation. Transformational leadership is projected as an approach which can cut across all cultural barriers. 4. Or a cultural context so that subordinates see the need to follow the leader’s ideals. Subordinates share a commitment to radical change. Helps subordinates envision a future state of a better organisation. TL is effective in any organisation anywhere in the world. Provides goals and a plan: • • Has a vision that is future oriented.O. 3. Breaks from the status quo: • • • Has a strong desire to break from tradition An expert in finding ways to do things differently. Provides clear steps for followers to transform the company. T Leaders are visionary agents with a sense of mission. • • 2. The transformational leader has following attributes: 1. TL represents a higher level of leadership. whether or not effective leaders act similarly regardless of their respective culture. Gives a meaning or a purpose to goals: • • Places the goals in emotion – laden stories.

Displays strong enthusiasm for the leadership role. • • • • • • P. Korea and Japan tend to emphasize personal relationships. true transformational leaders are rare. He said. Is motivated to lead: • • • Seeks leadership positions. Transformational leaders are not new to the present century. Muhammad were among the first transformational leaders. focus on non verbal cues. He called this leadership as ‘Charisma’ And noted that existed in all cultures. Takes risks: • Is willing to take more risks with the organisation than the average leader. • • • • • . Individual differences (also refer Hofstede’s theory given earlier) • High context cultures such as China. 8. Barriers to Cultural Adaptation: 1. Builds a Power Base: • Uses personal power based on expertise. Max Weba. USA and Scandinavian countries. Jesus Christ. Most people also consider MK Gandhi & Martin Luther King as representatives of transformational leadership. excitement regarding the leader’s ideas. Low-context cultures such as Germany. However. Acts as a role model 7. reverence. 6. a German sociologist recognised the existence of this leadership throughout history. Conduct business first and value expertise and performance Lack of attention to these factors results in costly failures for expatriates. Tend to rely on written rules and documents. respect and admiration of followers. Impress upon the need to attend to social needs before business matters. Transformational leaders succeed because subordinates respond to them with high levels of performance.5. personal devotion. Demonstrates high ethical and moral standards: • • • Behaves consistently and fairly with a known ethical standard. and a willingness to sacrifice for the good of the company. place high value on trust.

Cultural distance: • Predicting the amount of adaptation that may be required when an expatriate manager moves to another country requires an understanding of the ‘culture distance’ between the two countries. This is the understanding of the ways in which those differences can affect business relationships. They fail to recognise the key differences between their own and other’s cultures. They see the situations around them from their own perspective. • • • • • • • 3. This predisposition ‘ethnocentrism’ is known as the ‘self-reference criterion’ or • • • • It interferes with the understanding of human behaviours in other cultures. • • • 4. Parochialism: • The dominant feature of all international operations is that they are conducted in a social system different from the one in which the organisation is based. In effect they are assuming that the two cultures are more similar than they actually are. This new social system affects the responses of all persons involved. Further productivity from local employees is also reduced. Even if they do. expatriate employees minimally need to develop ‘cultural empathy’ This is the awareness of differences across cultures. they tend to conclude that the impact of those differences is insignificant. Managers and employees who come to a host country exhibit a variety of behaviours true to the citizens of their homeland. . Ethnocentrism: • Another potential barrier to easy adaptation to another culture occurs when people are predisposed to believe that their homeland conditions are the best. This is an appreciation of the contribution each culture make to overall success. Many are predisposed to parochialism. In order to integrate the imported and local systems.2.

which is ‘insecurity and disorientation’ caused by encountering all sorts of different cultures. Cultural Shock: • Companies often assign employees to new job assignments in different areas to provide them with invaluable breadth of experience. A cultural change does not have to be dramatic to cause some degree of shook-like moving from a big town to a small town. Second phase: positive attitude is soon followed by. they will reach the fourth phase. Third phase: critical stage. For unprepared employee. regain a sense of self esteem and respond constructively to their new surroundings at work and home. the new environment can appear to be chaotic and somewhat overwhelming. Such shocks are in four phases. may fear losing face and self confidence. First phase: they are excited and stimulated by the challenge of a new job. tend to suffer cultural shock. they accept the new culture. that of ‘adaptation’. At this point. Cultural shock is even greater when an employee moves from one nation to another. insecurity and anxiety caused by a strong new environment? They fail to act properly and lose their self-confidence. Ethnocentric problems may be magnified by cultural distances. Fourth phase: if they survive the first few weeks. ‘disillusionment’ as they discover various problems they had not anticipated regarding travel. • • • • • • • • • • • • • • • • • . Such shock is even greater when an employee moves from one nation to another. home and culture. The employees who move to new job locations of the experience various degrees of ‘cultural shock’ Which is a feeling of confusion. They may not know how to act. shopping or language skills. Cultural distance affects the responses of all people to business related issues. The new environment may be as systematic as the culture of the employee. They should dedicate themselves to learn the new culture and adapt to it. Although it is different.• Cultural distance is the amount of difference between any two social systems and may vary from minimal to maximal. it can be understood if employees have receptive attitudes. • • 5. or emotionally upset.

Pre-departure Training: . France. NZ Nordic group – Norway. Austria. Canada. Venezuela Pacific Rim Cluster – Japan. They should have a desire to live in another nation. Hong Kong. Sweden. Different management philosophies. are sent to nations that are similar to their own. Denmark Latin European – Portugal. • 2. Australia. Finland. Potential employees should have a capability to learn the new language quickly. especially on their first international assignments. may be chosen They should have a desire to experience another culture. Argentina. Italy. Forms of country Customs Housing conditions Privacy Time Activity HR Practices Currency Work attitudes Strange language. Switzerland. Careful Selection: • • • • • Employees who are low in ethnocentrism and Who are less prone to troublesome characteristics. Taiwan. An attitude to learn the new culture and the family culture is necessary. Mexico. It occurs in response to: − − − − − − − − − − − − − − Dramatic differences in languages. UK. Q.• • Cultural shock is virtually universal. Compatible Assignments: • Adjustments to new surroundings is easier if employees. Belgium Latin American – Peru. Israel. etc. Overcoming Barriers to cultural Adaptation: 1. New food Separation from friends and relatives. These are grouped into 6 socio cultural clusters: − − − − − − − Anglo American – USA. Chile. Spain. China. Brazil & India do not fall into any group • 3. Korea Central European Group – Germany.

better positions. Training includes – geography. Companies need repatriation policies. customs. separation from relatives and friends. The local national working for the same organisation can also assist. Extra pay. 4. position. transportation and shopping. • 5. Orientation & Support in the New Country: • • • • • • Efforts to quickly settle the employee and family. Creates better impression. coming back to their homeland culture – needs time to adjust. language and political environments. lesser misunderstanding. • • • Forces inhibiting and supporting cultural adaptation: Inhibiting Forces Supporting Forces . Faster cultural adaptation. Better communications. Often tend to suffer cultural shock in their own homeland – reverse cultural shock. fringe benefits. culture. Support for intensified need deficiencies like financial difficulties. Preparation for Reentry: • • Repatriation has to be smoothly blended. insecurities. personal and organisational costs. Better autonomy emoluments. inconveniences. power in host country best less in home country. The previous job holder may also stay back for sometime and assist. A mentor may help a lot during transition. Assistance in housing.• • • • • • Learn the local language Helps to reduce. After enjoying a new culture.

non verbal communications are also important. Non-verbal communication is called as cross cultural communications.Individual Differences Parochialism Ethnocentrism Cultural distance Culture shock Cultural Adaptation Careful Selection Compatible assignments Pre-departure training Orientation & support Preparation for reentry R. . They include: • • • • • • Relative values for time efficiency Values of life Eye contact Posture Meaning of silence Language • • • • • • Thought patterns Personal space Physical appearance Gestures Legitimacy of touch Clusters • They are very important contingency factors. Cross Cultural Communications: • • • Besides verbal communications.

To make an individual choose change. but an opportunity when it is done by people. then. DEALING WITH INDIVIDUALS: • The strategy for change are implemented through three change levers. while abandoning the familiar. both Change is resisted as much as stagnation is Continuity without change leads to stagnation. What they resist is being changed. Individuals tend to perceive change as a discontinuity. feel or do something different. seems to lie in making them choose it. the organisation can not change. Change gives rise to emotions.III MBA – CHANGE & KNOWLEDGE MANAGEMENT MODULE 4 – CHANGE MANAGEMENT G. Change. Managing change. Change that is internal to an individual is far better accepted than change externally imposed. requires managing employee feelings to generate positive excitement for the intended change and change process. Change is always a threat when done to people. means learning new skills. Organisations can not ignore. Fundamental requirement for effecting change management is the understanding of: − The nature of human response to change − Overcoming individual and group resistance to change. and acquiring new relationships. to be avoided or coped with Individuals may not resist change. These emotions can vary from being intensely negative to being appreciably positive. boredom and frustration Change without continuity or stability leads to ambiguity. a) Human Response to Change: • • • • Individuals fear and seek change. we need to understand what factors make him prone to it and what prompts him to resist it. to many individuals. conflict and the inability to cope with the situation. • • • • • • • . For change to occur in any organisation. and − Tuning the organisation to change. therefore. The strategy to make people to accept change. Hence it is difficult to impose change. and new routines. Change may be perceived as an opportunity or a threat. deny or suppress emotions at work. accustomed and proven ways of doing things. Change is intensely personal. each individual must think. which are o Structure o Process o Culture • • If people within the organisation do not change.

Support the change process with adequate resources. often. b) Dealing with Individuals for Change Management: • • Create a culture where employees seek change. Individuals can manage change well if it gives them positive emotions rather than negative emotions. Change should not be what happens to them in the organisation but what they can make happen in the organisation. They avoid risk. When such supportive structures exist. Build a positive imagery for its employees of the envisaged change to reflect a better future. Reasons for change resistance: i) • • • • • • Climbers Personal Loss: Job security Salary and income Pride and satisfaction Job nature Friendship and associations Freedom Negative Attitudes: • ii) Towards their organisations and supervisors . namely: Aggressive resistance Passive resistance Neutral Campers Passive acceptance Active involvement Quitters 12. The above are intrinsic to the change management process. Individuals. process and facilities. 11. have fear of failure and feeling of incompetence. It is apparent that individuals need to own their responsibilities and be clear about the results to which they are accountable. Employee attitudes for change: • • • • • • • • • • Individuals tend to fall into any one of the attitudinal continuums. minimize loss and want to have a control in their behaviour. The organisational leadership has to examine the following also during the initiation of change.Any change is as good as the willingness of the one affected by it. and are not afraid to think and act differently to make change happen. individuals may even welcome change rather than resist it. behave to maximize win.

the best. The benefits could be: security. Seen as a challenge to one’s authority. Cognitive Rigidity: vii) • • Some people do not see the need for change or may not be convinced about the arguments in favour of change. .• Lack of trust resulted from earlier bitter experiences in the organisation iii) • • • Lack of Involvement: Some people resist change because they have not been involved in the change process. Their ideas have not been sought for Some others are very sensitive about ‘change’ since they have wrong or incomplete information. Inappropriate Timing: vi) • • Change is generally introduced at a time when business is not good and everyone is already burdened with extra work to tide over the bad times. Personal Criticism: • • • iv) Change may be considered as a personal affront. Challenging Authority: viii) • • Some people resist change to challenge authority. Some think. Loss of Status and authority: v) • • Change may lead to the relegation of one’s job to lower levels in the hierarchy. job nature and opportunities to contribute to and determine the change process. May be loss of one’s authority and power. The way that change is introduced may also not be to everyone’s liking. status and authority. Others still find the old practices that have evolved overtime. monetary and other benefits. Or oppose disliked bosses who are in favour of change. personal satisfaction. 13. it questions one’s capabilities and performance. Reasons why people accept change: • • People welcome change when it benefits them.

It is the individuals who work within the structures and systems and on the tasks and processes. they alone are not sufficient to bring in the change. who make the change to happen and achieve highest levels of performance. To overcome resistance. We gave to deal with an individual’s attitude to overcome his resistance to change. Affective refers – one’s emotional component of likes and dislikes. • • • • • 16. Integration: • • A number of quantitative & qualitative techniques are available. • • • . conative and affective dimensions. Creative and intellectual energies of the individuals should be diverted to the change initiatives of the organisation. A feeling of dissatisfaction to be generated with the existing state of organisation. beliefs and values Conative refers – one’s action tendencies. Dealing with individual resistance to change: • • Individuals need to be motivated to accept change. intelligence and judgement – in managing the change. Cognitive refers – one’s perceptions. Attitude consists of cognitive. Individual – focused approaches to managing change: • Though appropriate structures.14. Surveys like questionnaires. This classifies individuals into different categories in the attitudinal continuum. systems and processes are necessary. • 15. we have to deal with the above components. The idea that a change is good for everybody should be driven home. Organisations have to deal with individual attitudes and behaviours to tap individual wisdom – their experience. interviews and observation methods are useful.

scheming. shy. low conflict – tolerance level. persuasive. self-centrical cautious. patient. systematic. convincible. he can resist it actively. to ACCOMMODATOR OPPORTUNIST CONFORMIST OSTRICH VANQUISHER Initiator of change actively involved. dogmatic. High in change rigid. but can be positive or negative depending upon his advantage. social. warm. high fear of uncertainty and failure. brash. cordial. self change is critical. predictable. Slow. overbearing. self-centered. Passive resistance aloof. cooperative. overly dependent. cold.17. Aggressive risky. amiable. independent. unambitious. high sense of achievement. low conflict – tolerance Aggressive level. low self confidence. unbending. forceful. short-term – perspective Behavioural Description Diplomatic. less moralistic. secretive. formalized. selfreliant. indecisive. poised. plays to his advantage. patient. to change defensive. respects authority. aggressive. withdrawn. demanding. If opposing change. dynamic. conservative. co-operative. task-oriented. respectful and fearful of authority. inclined to oversell. impatient. Natural. self sacrificing. integrative of other people’s ideas. . change non-companionable. critical. stable. stubborn. silent. Passive acceptance active involvement. acceptance when sensitive to failure and punishment. superficial. stubborn. trustful. persistent. skeptical. Reckless. rigid. trustful. Personality types and their general response to change: Type SQUEALER BRAVADO Response Change Highly emotional. resistance impulsive. optimistic. predictable. enthusiastic. relation oriented. dependable. Brave. retaliative. unable to face problems Receptive. stable. consistent. Receptive. decisive. moralistic. determined. resistance to argumentative. high fear of failure. individualistic. adventurous.

persuasive convincing. his/her cognitions have to be positively influenced. • • Cognitive Changes: Change Mechanisms: 2. It is not only what managers say. Explaining the nature and direction of change: • • The change process has to be clear. Cognitive changes tend to occur in individuals when information is presented in a logical and coherent. capable of empathy. original. To create readiness in an individual for change. Behaviours of senior managers influence employees’ perceptions and beliefs. send signals to others in terms of their fourth and commitment to the change process. receptive.Inventive. Core competency required and plan of action for managing change has to be clearly stated. • • STRATEGIST . integrative of other people’s ideas. scope and expected outcomes of change. opinions and beliefs often act as the precursor to one’s response to change. well knit and integrated. open minded. equalitarian. It is important to communicate the intended change and the reasons for it in advance and as completely as possible. Top management should be committed to the intended change. self-reliant. fears and expectations. the company strategy and its competitive advantage. Employees have to be aware of the focus. Such a talk gets a feedback from employees regarding their hopes. positive. Communication: • • Effective communication is fundamental to change management. c) Managing change: The Cognitive Dimension: • One’s own perceptions. • • • • • • 2. This has to be done individually and in groups. Responsibility of each person in relation to the company’s strategy has to be understood. realistic. but what and how they do. problem solver. interpersistent Active self involvement and capable of involving others in the change process. Employees cognize the explicit and implicit behaviours exhibited by senior managers.

Oral persuasive communication is carried out through speeches. modify and realign their personal values. Written communications are through specific written documents. they tend to form a benchmark for individuals to adopt. • • • • • • • • • o Employee Training: .• Communications about change have to be clear. Persuasive communications may be resorted to in times of urgency and crisis and when employees are either in high or low state of readiness for change. reliable and perhaps repeated and number of times to drive home its importance and the depth of the management’s commitment. Values agreed upon should be documented. all our vision and mission statements are only decorative pieces in the corporate lobby. These values have to be shared and imbibed by all through out the organisation. These values are based on group and individual behaviours and also the work processes. These values enable and stable and trustworthy relationships. It employees have to be attended to change. Work can be soulful enchanting experience when employees strongly believe in what they do and are convinced about what the company is or should be doing. Values tie together people. The messages must be credible and take a variety of forms. systems and processes. hope and a positive outcome. If not. • • • • • • o Creating a Common Value Orientation: • • Values are basic to human behaviour. Non routine communications are through media. The values talked about in change management are: o What are the values to be espoused if the change needs to be implemented? o How are they similar to one’s personal value? o How to bring about changes in personal values if need be? • Organisations have to identify the values basic to the change initiative and implementation. communication should lead to optimism. Value may be generated by discussion and active employee involvement at all levels in the organisation. precise. Once a set of values are collectively agreed upon.

delivering value to the work process. Knowledge provides a competitive advantage. It prompts the people in the direction of group support and leads to acceptance of change. Vicarious learning is facilitated by study/observation trips to innovative organisations and further involving employees in benchmarking their best practices. Desire to acquire information. Training should bring forth:     Inherent talents. . • • • • • • • d) Managing change: The Affective Dimension: • • Individuals fear and seek change. Current skills have to be assessed and future skills needed for the business determined and the training skills decided to bridge the gap. New ways of training employees aimed at thinking skills and multiskill development have to be planned. organisation and employee competency. Building effective teams takes years. Employees should be considered as a resource. ‘Vicarious learning’ – where employees observe organisations that have benefitted from implementing new or innovative techniques and practices. Training should be run like business. It provides opportunities for employees to learn by their own activities and to exercise control over the outcome. Employee training sets the supportive climate for change management when it is competency driven for the current and future demands. Participation needs to be managed carefully or else it creates more problems. knowledge and skills. needing constant monitoring and reviewing. To be successful a climate of interpersonal trust and open communication should prevail within the organisation. Urge to accomplish Preference with passion • • • • • • • o Participative Management: • Facilitates the release of one’s inherent enthusiasm and creativity for the benefit of the entire organisation. both Change affects human emotion.• Competitive organisations required knowledge workers who are capable of performing jobs related to corporate goals and market needs and demands. not a cost.

o Are employees suitably trained to be empowered? o Is the organisational culture & climate conducive for empowerment? o Do the employees perceive meaningfulness in what they do? o Is the information shared to empower the people? o Sustaining employee empowerment. Company shares may be given at concessional rates. A personal sense of ownership motivates employees to take the initiative. • • • • . Stock ownership may be performance based. It is the integrating of ownership. generate productive ideas. − Creating positive feelings about the desired state and the change process. authority and accountability at work. Affective Changes – Change Mechanism 5. − Addressing avoidance learning – focusing on intended change as the only alternative to avoid/overcome fear or insecurity. Employee as partners: • Employees tend to entertain positive emotions for the organisation and the work they do when they are also stakeholders in the company. The approach promotes a binding relationship. employee empowerment depends upon a number of factors. it has to anticipate individual feelings about the intended change and deal with their emotions in positive and constructive ways. − Focusing on the benefits of change at the individual level. To be successfully implemented. • • 6. o How willing are superiors to share their authority down the line through out the organisation? o Willingness on the part of employees to make decisions and be accountable for their actions. Employee empowerment: • • To empower is to give autonomy to an employee enabling him to make decisions on his job and accountable for his actions.• If an organisation has to implement change. − Demonstrating some of the benefits of change early in the change process. and feel responsible for improving organisational performance. Dealing with human emotions could be in terms of: − Creating feeling of psychological safety about change. o Commitment on the part of top management in real earnest.

Some of the ways to do this are: o Empathy o Modeling o Shock therapy o Mentoring o Manipulation o Employee counseling • • . Financial rewards and financial health are tied up. Dealing with negative emotions: • Some employees may have negative emotions towards the intended change. • • 7. Organisations should create a meaningful reward system. Compensation System: • Managing change through people behaviour is possible when the desired behaviour is appropriately rewarded.• For success trust between the employee and management is necessary. These negative emotions must be understood to successfully handle. Rewards are effective when a certain ‘value’ is built into the rewards – a value which is a part of the performance rather than a pretension. how much they cost to the company. Rewards are financial and non-financial. not all rewards are same) • • • • • The major demotivators are perceived unfairness in dispensing rewards. Types of rewards − Power rewards (higher responsibilities) − Pay for performance − Pay for knowledge and skill • 8. Rewards should have the following characters: o Clarity and specification (expected performance and work behaviours) o Immediacy (delayed rewards lose values) o Magnitude (commensurate) o Individuality (personalization. Employees are also given to understand how much they contribute to.

Therefore. Now. Cross Training: • • Training is provision of information and skills. wherein an employee can switch periodically from one job to another. Tohat are the factors for change under conation? 1. Job activities and responsibilities have to redefine due to the change management and changes in the job design and performance. For every employee there is a psychological contract with the organisation – may be explicit or implicit. • • • • • • 2. • • • . change benefits the employee. constantans improves actions. Such skills can come by cross training.e) Managing change: The Conative Dimension: • Resistance to change occurs due to unwillingness to deviate from habitual behaviours or from reluctance to acquire new skills and behaviours. Clarifying Contractual Obligations: • • Change benefits the organisation. there is a mutuality of interest. Cross training facilitates job rotation. Emphasis on action learning in implementing change: • • • Learning occurs with actions. a new role relationship. too. The psychological contract has two dimensions: the personal goals of a human being and the organisational goals. Mutuality is the basis for the release of human energy for effective change management. Action learning is a social process. no actions without learning. starts. Cross training provides a flexible force and flexible factory. Employees today should be enabled to perform a variety of tasks rather than a few limited jobs. accepts supportive criticism for improvements • • 3. solves task related problems. Tasks or activities are the basis for learning Action learning leads to continuous improvement and performance of self leading to overall improvement of the organisation. Where the employee accepts his job duties and responsibilities. a new job contract is necessary to be made which aligns with overall corporate strategy which the employee must understand and agree after discussions with the management.

the way they adapt. • • Supporting climate – learning environment: . Cross trained employees tend to be amenable to and willing for organisational change initiatives since a number of skills have already been built into their behavioural repertoire. 4. Any kind of mental stretching should be done gradually by exposing one to changes of graded difficulties. modify and develop are important. Employee elasticity: Stretching the Potential: • • Good HR stretch employees to the maximum of their potential ability to work. thus slowly stepping up one’s self confidence. Cross training can be across different functional areas like finance and marketing. • • • • • Positive attitudes to such training is built if employees are rewarded for acquiring new skills. • • • • 5. Success of cross functional training depends upon employee willingness to learn new skills on the job. and activities together form the organisation structure which supports the organisation. Within the limits of ‘mental elasticity’ human capabilities at work could be stretched to the optimum to meet the global business competition. It also solves the shortage of manpower. etc. there should be the necessary support structure. Stretching employee potential facilitates change management. It could also be diagonal. Create the right climate for optimizing employee performance: • To create the right climate for employees to take an active interest in the change process and achieve the intended results. An employee’s career path need not be limited to vertical mobility. a learning environment within the organisation and the free sharing of information.• With this the employee brings a fresh perspective to each job in addition to what has learnt already. systems. o The people in the organisation structure. Some techniques in stretching limits manage change are: o Sensitivity training o Participative management o Behavioural modification o Job rotation o Cross training o Role play. Supportive climate – Organisational design: o Organisational processes.

They enter the group as peers. The training may vary in duration from a few weeks to few hours. • Supportive climate – information sharing: o The commonest way of bringing about change in employee attitudes and performance is through information sharing. The primary target of managing change would be the group itself and the relationships among its members. Initially. flexibility and innovation in all activities. − The present day business needs speed. An unstructured. the change management should consider individuals as well as the group in which they work. and any division of labour or rules of procedures.− Organisations should create a learning environment where people can acquire advanced knowledge and skill. perhaps ambiguous. away from their usual roles and responsibilities. • • • • • . CHANGE MANAGEMENT – DEALING WITH GROUPS: • For successful organisation change. The major forms of group-based changes are: o Sensitivity training. whey the company needs change and what they should know additionally to perform better in the changed scenario. a structure. initially as strangers. o Team building o Self-managed teams 1) Sensitivity Training: • • • • Also called as T-group training. H. unrepresentative of the group memberships and move quickly into an exploration of group processes and leadership. The trainer plays a relatively passive role in the training process. o Sharing information raises the level of employee trust in the organisation. the group begins without an agenda. o It empowers people and performance improves. situation is created and the group is encouraged to experiment with new individual behaviours and group interactions. T-group is an ad hoc assembly of individuals who meet together. o Employees should know what the company plans are. how the company is doing.

• Individuals join teams for a variety of reasons: − Out of the herd instinct. brought together only by the common goal of learning more about themselves. Understanding why people behave the way they do. Commitment to and belief in working together. the impact they have on others. Developing increased tolerances for other people’s behaviour.• The people in each group are strangers to each other. 2) Team Building: • A team is a group of individuals who tend to work interdependently to satisfy organisational as well as their own individual objectives. Understanding group processes. . the interventions through sensitivity training aims at the following: − − − − − • Understanding of one’s own behaviour and how one’s behaviour affects others. The trainer initially observes: − − − − • • Problems of communication Attempted seizures of power Misunderstandings Other phenomena of interpersonal life. They slowly correct their faults. Encouraging one to try out new ways of interacting with people and receiving feedback. They become sensitive to the nature of group development. Absence of an agenda initially creates a vacuum and often quite uncomfortable. • • • • • • • The trainer communicates these observations to groups. They become sensitive to the action of others. Accountability – for their performance. They attain increased sensitivity to their own behaviours. Members emerge with a restructuring of their values about people and their operations in group settings. Members gradually begin to attend to such matters themselves. abilities of individuals are mutually supportive. Thus. Interdependency – where the skills. Teams have the following characteristics: − − − − • A reason or charter for working together. • Sensitivity training is good for change planning and implementation.

In the hope of personal gains. Commitment – to achieve the goal through group effort. . • The success of team effort depends upon: − The leadership provided to the members who constitute the team. • Team values are: o Quality o Customer service o Innovativeness o People o Informality • The operational basis of a team lies in − − Synergy Interdependence • A team’s behaviour is characterised by the following elements: − − − − A Goal – is commonly agreed upon by the members Interdependence – where people have agreed to work together and are supportive of each others. From the inability to say no Teams have the advantage: − Of improving up and setting goals and priorities. Promotion of scientific inquiry in addressing issues and problems. From a sense of duty. − Improving performance qualitatively and quantitatively. • The value base of team lies in: − − − − Belief in a democratic work environment. From group compulsion.− − − − − − • To overcome one’s fears and insecurities. and Accountability – where one is accountable to superiors or the top management for achieving the goal. − Deciding on means and methods. Concern for the development of individual potentialities. Due to a rational belief to joint effort. Involving individuals and groups is the change process from the very beginning is one way of ensuring their commitment and accountability towards achieving the intended changes. Interpersonal trust.

Data flow Conflict. Individuals try to assert • • • • • • Who are these people? What is their unique competence? What information should I share with them? Will they accept me? What is our mission? How to we develop team spirit? What resources are available to us? What problems do we foresee with the team? 2. Start to get to know and accept one another. shows empathy. dominance & rebellion Inflighting Listening and experimenting f. b. b. These stages of team development are not rigidly followed.− • Overcoming barriers to effective team functioning. d. who: − Understands and is committed to group goals and values his/her team membership − Is friendly. they then pass through several stages as they learn to work together as a team. Tensions rise between the individuals. Jockey for position of relative control Argue about appropriate directions for the group. a. concerned and interested in others. i. • • • • The stages are the result of a variety of questions. f. c. − Includes others in the decision making process. Storming: • • • • • . d. issues and characteristics as shown below: Key questions faced • • Developmental stages 1. Forming: a. Begin turning their attention to group’s tasks. j. − Recognizes and respects individual differences. goals An aura of country Interactions are cautions High degree of motivation. h. Members compete for status. − Listed to others. e. k. An effective team member is one. They do represent a broad pattern. c. − Acknowledges interpersonal conflicts and deals with them positively. They may be observed and predicted in many settings a cross the team’s time together. is understanding. g. Also referred as: Dependence Acceptance Orientation & hesitant participation Testing inclusion Also referred as Counter dependence. and values the ideas and contribution of others. e. External pressures interfere with the group. 3) Team Development Stages / Life Cycle of a Team: • When a member of individuals begin to work at interdependent jobs. Characteristics Members share personal information.

How will we closeness & control each cohesiveness other’s actions? • Getting organised. Norming believe in? Also referred as: What behaviours • Resolution do we expect of • Goals and each other? norms What should we • Integration be doing? • Intimacy. d. a. • Openness. Transactional leadership skills include: o o o o Goal setting Assertiveness Conflict management Supervision o o o o Communication Problem solving Decision making Rewarding competency • . a. project teams disband sooner or later. d. c. Functional roles are also smoothly exchanged as needed. b. Tasks are efficiently accomplished. b. Handles complex challenges. Tentative balance among competing forces. Break up is called adjournment. e. Functional roles are performed. More co-operative feelings. affection What actions will 4.• • • • • • • • • • • • • Control What do we 3. c. 4) Ingredients of Effective Leadership: • • A process of dealing with members’ aspirations and expectations. e. Feedback for future teams. Group matures and learns. Transformational leadership skills relate to: o o o o Futuristic thinking Value clarification Entrepreneurism Influencing o Envisioning o Creativity o Mentoring • & inspiring for higher motivation and achievement – how the leader regarded and respected – credibility. Groups. Performing contribute to our Also referred as: success? • Performance Should we take • Productivity risks? • Mature Have we been closeness empowered to • Achievement succeed? How can we change and grow? How can we 5. a. Groups norms guide individuals. d. Group begins moving together in co-operative fashion b. Group may review its performance. In flexible organisations adjournments are more frequent. c. Adjourning celebrate our Also referred as: success? • Adjourned What connections • Terminated should we maintain? What have we learned from our experience? Where do we go from here? themselves.

• 5) Ingredients of Effective Teams: • What contributes to team success o o o o o o Careful composition Clear direction Accountability Integration & co-ordination Innovativeness Scope for learning o o o o o Information sharing Measurable goals Sufficient resources Flexibility Stimulation of openness • Four Major factors are: Supportive Environment: − − − − − Management to build a supportive environment. Providing adequate time for meetings. 6) Potential Team Problems: . unify efforts and stimulate more cohesive teams. Administered in proportion to the team performance. focus attention.o Enables a leader to get a job done successfully. • A leader needs to exhibit greater transactional skills in the initial stages of group formation (first & second stages) Later. − All members carry their weight. more transformational skills are required. as the group matures. Team Rewards: − − − − − Stimulates teamwork Recognition or financial Most powerful if they are valued by team members. Should be perceived as ‘possible to earn’. − Each member should know the roles of all the others in the group with whom they are interacting. trust and compatibility Skills & Role Clarity: − Team members must be reasonably qualified to perform − They should have a desire to co-operate. Super-ordinate Goal: − Team members should be oriented towards their overall task. Encouraging members to think like a team. Demonstrating faith in members’ capacity to achieve These steps contribute to further co-operation.

Since team’s composition is likely to change frequently due to various reasons. Too many changes and personnel transfers interfere with group relationships and prevent the growth of team work. Participative discussions. It is a belief that workers are lazy. A multi-skilled workforce Shared leadership through team meetings. The combination of empowerment and training to plan. Accept the turnover and plan for it. • • • • • Social Loafing: • When employees think that their contributions to a group cannot be measured. Social loafing is based on a perception of unfair division of labour. teams must learn to manage their internal turnover. SMTs are characterised by: − − − − − − − Goal setting through team effort. direct. Social loafing may also arise if a member believes that others intend to withhold their efforts and thus he would be foolish not to do the same – The Sucker Effect. They have wide ranging autonomy and freedom. They are natural work groups that are given substantial autonomy. They are asked to control specific behavioural or operational activities and produce significant results. Interpersonal trust. Develop a plan for team turnover right from the start. • • • • 7) Self Managed work Teams (SMT or SMWT): • • • • An empowerment tool Also known as self reliant or self-directed teams. It is a feeling of being able to hide in a crowd and therefore not be able to be singled out for blame. they may lessen their output and engage in social loafing. Integrating new members into the team is also important. Individual and mutual accountability A result focused performance • • • . complied with the capability to act like manager.Changing composition: • Being complex and dynamic teamwork is sensitive to all aspects of organisational environment. monitor and control their own activities distinguishes these teams from many others.

. • Areas of Job Freedom and Participation Continuum By Tannenbaum & Schmidt: “How to choose Leadership Pattern” Area of authority applied by Manager Joins Consults Sells Tells Low Amount of participation Description of typical action Manager makes & announce s decision Manager presents decision subject to change seeks ideas. − Promotes collaborative work relationships. sells decision Benevolent autocracy Manager seeks ideas before deciding Manager asks group for recomme nded actions before deciding Participative commuters such as quality circles Manager decides with group. Inability of some employees to adapt to a team structure.− Active problem solving. − More efficient operations through the reduced number of job classifications. self managing teams. • SMTs have several advantages: − Improved flexibility of staff. − Lower absenteeism and turnover rates. suggestion systems Consensus decision making. one person one vote Democratic management Manager asks group to decide Withdraws Total of Job Freedom Area of employee participation in decision making Medium High Popular terms Autocratic managem ent Consultative management. • SMTs have the following disadvantages: − − − − Extended time to implement them High training investment Inefficiencies due to job rotation. − Higher level of organisational commitment and job satisfaction. − Faster synergetic performance − Enhances individual and team capacity − Lot of scope for innovations − Pushes responsibility down to the lowest levels.

• • • • • Most auto companies today employ ‘platform teams’ that consist of a core group of designers. The success of cross-functional teams. Cross-functional teams are of great assistance in designing and prototyping new models and products. inexpensive car. RESISTANCE TO CHANGE & OVERCOMING IT: • Resistance to change consist of any employee behaviours designed to − Delay − Discredit − Prevent the implementation of work change. I. depends upon: − − − − Setting achievable goals Gaining commitment from team members Setting ground rules for team activities. in 1978. Effective management of relationships among people of diverse backgrounds and work cultures. engineers and even factory workers on whom rests the total responsibility for the development and manufacture of a single product. • Employee resist change because it threatens their: − − − − − Need for security Social interaction Status Competence Self esteem a) Nature & Effects: • The perceived threat stemming from a change may be . ‘Taurus’ team at Ford Honda. − Ensuring early success to generate enthusiasm and greater belief in team effort.empowerment 8) Cross Functional Teams: • • A type of SMT Consists of individuals from different functional areas working on the design or development of a product.

o Required o Unintended o Large • o Imagined o Direct o Small o Intended o Indirect Regardless of the nature of change. − Dislike the method used. − Do not see a personal gain for themselves. − People disagree with the nature of the change. May reject an insensitive and authoritarian approach that did not involve them in the change process May be a perception of poor timings. People resist because of the fear of unknown. Particularly employees too have a desire for new experience and the accompanying rewards that come with the change. Some perceive as gainers due to change. . Changes. The method by which it is introduced People may resent having been ill informed. some employees will try to protect themselves from its effects. sometimes. A lesson to management is: change is likely to be a success or a problem. ‘Change’ does not respect blue or white collar. depending upon how skillfully it is managed to minimize resistance. • • b) Reasons for Resistance: (3 broad reasons) First • • • • • • Not comfortable with the nature of the change itself It may violate their moral belief system They may believe that the decision is technically incorrect May be reluctant to change the present familiar comforts to an uncertainty. Inequity of the people’s experience Some perceive as losers due to change. Threats to job security. set up a ‘chain reaction effect’ also. This reactions may be: o Complaints o Passive resistance o Sabotage o Foot dragging o Absenteeism o Work slowdowns • • • • White and blue collared people resist change. Second • • • • Third • • • • Their resistance will be even more intense if all the 3 reasons exist.

group resistances: • • • • • Political coalitions Opposing group values. d) Implications of Resistance: • • • • All 3 types of resistance must be anticipated and treated effectively.c) Types of Resistance: (3 types) 6. rational objections: • • • • • Time required to adjust. full support may not be expected all time – may be weak. Then only employees will accept change co-operatively. it may need to use authority. Desire to retain existing friendships. Low tolerance of change. Technical. Logical. Economic costs of change. We must recognise that authority can only be used sparingly. desire for status quo. Questioned technical feasibilities of changes. emotional resistances: • • • • • Fear of the unknown. such as skill downgrading. 8. moderate or opposition – form all people. human – all 3 have to be faced and solved. . Lack of trust in others. What is important is: create a genuine climate when people trust management. If authority is overused. it eventually becomes worthless. Need for security. have a positive feeling towards change and feel secure enough to tolerate other changes. • • • • e) Possible benefits of resistance: • Resistance is not all bad. 7. logical. Sociological. Dislike of management or other change agent. Psychological. Parochial. If management cannot win support. Extra effort to relearn Possibility of less desirable conditions. In a typical operating situation. narrow outlook Vested interests.

This approach in the long run should lead to better acceptance of change. So that. and balances and ensures proper • • • • Resistance also identifies specific problem areas.• • It can bring some benefits. Harvard Business Review. Such a release encourage employees to think and talk more about a change so that they understand it better. people Where there is a lack of will often help with the information or inaccurate implementation of the information and analysis change Participation + Involve ment People who participate Where the initiators do not will be committed to have all the information they implementing change need to design the change and and any relevant where others have information they have considerable power to resist will be integrated into the change plan Can be very time consuming if lots of people are involved Can be very time consuming if participators design an inappropriate change. it is made certain that the proposals are appropriate. Resistance may encourage management to reexamine its change proposals. Resistance creates checks implementation of change. There are 6 approaches to manage the resistances as given below: Each has its own advantages and disadvantages. • • • • Change is necessary in a competitive environment. • • • • • f) Managing Resistance: Kotter & Schlesigner “Choosing strategies for change”. Hurdles to change need to be managed. That may encourage management to communicate the change better. It provides an emotional release of pent-up feelings. Resistance also gives management the information about the intensity of employee emotions on an issue. Commonly used in situations Education + Communication Once persuaded. Advantages Disadvantages Commonly used in situations Facilitation + Support Advantages Disadvantages Where people are resisting No other approach Can be time because of fear and anxiety works as well with consuming adjustment problems expensive and still . It enables management to take corrective actions much before serious problems arise.

BUILDING EFFECTIVE CHANGE INITIATIVES: 6. Negotiation _ Agreement Where someone or some Sometimes it is group will clearly lose out in relatively easy way to a change and where that avoid major resistance group has considerable power to resist Manipulation _ Co-operation Can be too expensive in many cases if it alerts others to negotiate. norms. . systematic process of organisational change? OD draws from psychology sociology and anthropology theory OD also relies on information from personality learning theory. group dynamics. Change: involving total system and the entire • c) Emphasis upon Work Groups: some OD efforts are aimed at individual and organisational change. Where other tactics will not It can be a relatively Can lead to future work. The basic characteristics of OD are as follows: a) Planned Change: also called as change intervention. It takes months and years. having a sociological flavour. organisational objectives. d) Long-range Change: OD is not a stop gap arrangement. if it the change initiators possess overcome any kind of leaves people angry considerable power resistance at the initiators. h) Organisational Culture: includes – accepted patterns of behaviour. value systems. OD stresses an collaboration among all levels. having the overall system perspective in view. power leadership and organisational design. b) Comprehensive organisation. most OD are oriented towards group. f) Emphasis on Intervention: active intervention of the change agent in the ongoing activities in the organisation. culture of each organisation must be understood and the relations consist with that culture must be developed. g) Collaborative Management: unlike the traditional management.fail. motivation theory. or are too expensive quick and inexpensive problems if people solution to resistance feel manipulated problems Coercion Where speed is essential and It is speedy and can Can be risky. etc.. J. e) Participation of a Change Agent: It is generally advised to avail the services of an outside expert. Organisational Development: • • • Is a planned.

The operationalising of the action research model. Effective management of the OD process and stabilization of changes. 7. An open. Pre-requisites for organisational development: • • • OD must fulfill certain conditions if it were to be effective.i) Action Research: A process of identifying the organisation’s specific problems. Trust and support among organisational members Synergetic solutions to problems. Initial top-level involvement. decision making) The culture of the organisation (norms. It is not a guarantee for success of OD But favourable environment conducive for organisational change will be created. the following criteria are to be satisfied. gathering and analyzing the organisational data and taking actions to resolve problems. Motivational level of employees. Intergroup collaboration. Acknowledgement of the congruency between OD and many previous effective management practices. Monitoring the process and the measuring of results. Development of internal OD resources and facilitative skills. • • • • • • • • • • • • • 8. Situations appropriate for OD programs: • The organisation’s managerial strategy (communication pattern. educational philosophy about the theory and technology OD. Involvement of personal and IR/HR management people and congruency with personnel policy and practice. The introduction into the system of a behavioural science consultant. including the formal leader. Perceptions of organisational problems by key people and perceptions of the relevance of the behavioural sciences in solving these problems. Participation of work teams. To reduce the negative effects in an OD program. A typical change strategies and associated HR Initiatives: Types of change strategy HR Activities Advantages Disadvantages . Further expansion of efforts after the early successes. values. • • • • • • 9. power structure) Structure and the role in organisation.

Stable environments have less change. c. b. Slow Expensive May meet resistance through negative attitudes to change. labour unions. Some changes originate within the organisation. likes change workshops Quality group programmes Joint consultation Team briefing and other forms of employee communications Performance management Employee counseling Severance Redundancy programs Recruitment and selection • • • Greater sense of employee ownership Fresh ideas introduced Longerlasting change • • • • Time consuming.Education & Employee Involvement • • • • • • • Changes personnel in • • • Management development Employee training. Changes to employee relations structures (consultation and bargaining) • • • Longer lasting change Regeneration of employee knowledge and skill Regeneration of tired systems • • Dealing with negative consequences for employees Possibly expensive Slower to have impact May be difficult to establish causal link changes to structures and systems and organisational change. Some changes are through government laws. communities. etc. But dynamic environments are the norm. Changes to career management. Changes to performance management. Changes to reward systems. d. a) Transformational leadership & change: • Management has a key role in initiating and implementing change successfully. Some more are from competitors. Implementing change successfully: a. • • Impact Speed • • Changes structures systems to and • • • • • Changes to organisational structures including employee accountabilities. e. customers. . 10.

They take bold strategic changes to position the organisation for its future.• A master strategy for change has to be made not overlooking simple. They articulate vision and promote in vigorously. but important details. To create an organisation that welcomes change. such as difficulty in letting go of old methods. leaders still have two tasks: − To persuade the employees that the vision is urgent. • Charisma is a leadership trait can help influence employees to take early and sustained action. Charismatically model their behaviour. − And to motivate their employees to do it. The overall plan should address behavioural issues. • • • b) Transformation Leaders: • • Are instrumental in the change process. A vision is a crystallized long-range image or idea of what can and should be accomplished. • Charismatic leaders are: . Workers’ fear of uncertainty. A vision may also integrate the shared beliefs and value that serve as a basis for changing an organisation’s culture. It excites them to new levels of commitment and enthusiasm. It stretches people beyond their current capabilities and thinking. Be learning individuals Make a learning organisation • • c) Creating Vision: • Transformational leaders create and communicate a vision for the organisation. They stimulate employees to: − − − − − Rise above their narrow focus Make them to see a broader picture action. • • • • d) Communicating Charisma: • After the vision.

who treat employees individually and guide them for action. keep change goals constantly in mind to avoid functional myopia • c) Establish check points. Relationships and Time Estimates: . • • • • 11. Their critical task is to develop people’s capacity to learn from the experience of change. • • b) Determine the objectives: • Objectives help to break the goal down into specific responsibilities for each team member. In ‘single loop learning’ employees simply solve current problems and blindly adapt to changes which have been imposed on them. Establish ownership for different functions. Activities. but also prepare the participants to manage future changes even more effectively. Express high performance expectations Use provocative symbols and language to inspire others. but an organisation that will continue to change. Warm mentors. • Employees trust and respect charismatic leaders and emotionally committed to such leaders. e) Stimulating Learning: • Transformational leaders not only make a very good change in organisation. Some common sense principles for Change Managers: a) Set a clear goal: • • Start at the end and work backwards While setting a goal dialogue among yourself. This process is called as ‘double-loop learning’ This means that the changes handled not only reflect the current information gathered.− − − − − − Dynamic risk takers Have depth of expertise Well deserved self confidence. Write down the change goal in a piece of paper and ask ‘Is that what you want?’ The goal should be specific and measurable and the team and the user should move in the same direction. the team and the end users of the project.

create opportunity for people to set goals and objectives. have different objectives and have different types of training.• • • Check points help members monitor their own progress. Create a sense of ‘ownership’. Be a good listener. Encourage transparency and visibility of the project team’s efforts. It is important to keep learning. Use the appropriate method. d) Direct people individually and as a Project Team: • • • One can not do it alone. Establish a detailed check list of activities. There are hosts of possible approaches to conflict management like giving in. • • . develop sensitivity to why people do what they do. yet must work together on a unique task. Appropriate the position of the other person. compromising. let members go public with their views and choices. from experiences. persuading. A strong team of supporters and collaborators are required. finding common good etc. The team should also discuss ‘what if’ and ‘what can go wrong’ situations. they serve to ensure interest and create energy. and as teams. • • g) Build Agreements that vitalize team members: • Conflicts are inevitable. Set long-term and short-term check points for early detection of problems. keep people informed on a regular and frequent basis. • • e) Reinforce the commitment and excitement of the Change Team: • Volunteering increases commitment. smoothing over. as individuals. Treat team members as individuals with their own characteristics. Expect differences. Use them to create a synergy and unleash creativity. Logical arguments have their limits. reaching agreement in conflict situations is not only a logical but also an emotional experience. • • f) Keep everyone connected with the Change Program Informed of the Program: • Change involves people from different departments who use different languages.

Plan time for thinking. This is achieved through alliances. What people want most from a change manager is credibility: Credibility = Competence + Honesty + Direction + Inspiration + Power It is • i) Encourage Risk Taking and Creativity: • • • • Failure is the stepping stone for success. important to build personal power. . experimenting.h) Empower yourself and others in the Team: • • Influence without exercising authority is the key. I failed my way to success – Thomas Alva Edison. networks and exchanges. we make significant progress only when we stick our necks out. Like turtles. innovation and creativity.

Within the firm. . technology. pressure mounts as the organisation outgrows its old ways of doing things. Outside the organisation. • • • 2. Pressures like these – or the anticipation of such pressures. conflicts arise. − Demand changes in the structure. Recognising the need for change: • • Becoming aware of the need is not enough Managers should also recognise the need for change. employees retire or resign. tasks and people in the organisation. Becoming aware of the pressure for change: • Most organisational changes are carried out in response to or in anticipation of pressures from inside or outside the organisation. the technological innovations act as powerful triggers for change.III MBA – CHANGE MANAGEMENT MODULE 5 – ORGANISATIONAL CHANGE PROCESS 3) Organisational Change Process: a) The entire change process can be summarized in six stages: • Becoming aware of the pressure for change Recognising the need for change Diagnosing the problem Planning the change Implementing the change Following up on the change • • • • • 1.

secondary data. Managers believe that the uncertainty associated with organisational change is best managed through incremental processes in which they continually make adjustments to their strategy and structure. • • • • • • • • • 5. observations. Planning the Change: • • A strategy for change is formulated. 4. Generally. etc. What are the consequences of those pressures? For diagnosing the problems various procedures are available like: Interviews. a top-down strategy calls for intervention at the high level of an organisation. Organisations must choose between evolutionary and revolutionary change. Diagnosing the problem: • • • • • • Recognizing that change is needed is not enough. Managers must diagnose the pressures for change. Managers must determine how it may affect the company. Pressure may be likely economic or technical reasons. TQM is a method of evolutionary change. The organisation waits until it believes that the costs of not changing exceed the costs of overcoming organisational inertia and then introduces its master plan for change. A firm that adopts evolutionary change adopts a bottom-up change strategy. Firms opting for bottom-up strategy prepare the organisation for change by involving managers and employees at all levels. Questionnaire. Implementing the change: . They discuss the need for change and diagnose the problems facing the organisation. A firm that pursues revolutionary change adopts a top-down change strategy. Winding up of divisions or departments and downsizing are examples of this type of change.3.

Follow up on the change: • The final step in the change process is to evaluate the effects of the change. Lewin’s Process Model: Unfreeze (awareness of need for change) Reducing the forces who wants status quo Change (Move) (movement from old state to new state) Developing new attitudes. • • • • • • • • Hostility Physical abuse Loss of interest in work Excessive idling time Low productivity Tardiness Development of tension & anxiety Groups deciding fairday’s work • • • • • • • • Aggression Apathy towards work Spoilage of material Corrupting valuable software Absenteeism Resignation Tensed up on the job Imposing their individuals. − − − − − − Education and communication Participation and involvement Facilitation and support Negotiation and agreement Manipulation and co-operation Explicit and implicit coercion • Each has its own advantages and disadvantages. attitudes and behaviours Old Stage New State .• • • The next step is to implement the change. 6. And institute procedural modifications that will ensure that change continues to be implemented. values and behaviours Refreeze (assurance of permanent change) Reinforcing new values. Here. resistance to change surfaces. wall on • There are 6 approaches for managing resistance. There are several ways to show the resistance. • b) The entire change process can be summarized in six stages: 18.

Unfreezing: involves • Encouraging individuals to discard old behaviours by shaking up the status quo situations.• • • • • • • According to Kurt Lewin’s Force Field Model. Highly useful in understanding the ways of managing change. values and attitudes. Searching for new solutions. Moving to a desired condition. Managers must ensure that the organisational cultures and reward systems encourage the new behaviours and avoid the old ways of functioning. Learning theory and reinforcement theory can play important roles in the refreezing phase. organizing and implementing the change from the disassembly of the current state to the realization of a fully functional future state within the organisation. Refreezing the system. • • . Popularly called as. Moving means – developing new behaviours. three stage model of change system. departments or organisation in which the changes e to take place. Such changes are sometimes through structural changes. By unfreezing the current situation. New ways of operating are cemented and reinforced. sometimes through OD techniques. Presenting a case to make the people to recognise for a change and how their jobs will be improved by the change. So that it remains in the desired state. • • Refreezing: • • Changes become relatively permanent. attitudes and behaviours are established as the new way of life. Managing the transition is essential to keep the organisation going. effective change occurs. there is a transition which is not shown. • • Moving (changing): • Aims to shift or alter the behaviour of the individuals. Transition management is the process of systematically planning. the two phases of change. • • • Transition Management: • Between. New values.

Lewin’s Force Field Theory of Change: Level of Performance Resistance to Change Change Resistance to Change P2 P1 Forces for change Time • In any organisation. Successful change. An interim management structure or interim positions may be created to ensure continuity and control of the business during transition. Failure in efforts to change can be traced back to one of the 3 stages. or do both simultaneously. skills and behaviour. managers must adopt a change strategy to increase the forces for change and reduce the resistance to change. values. employees. Lewin’s model proposes that for change efforts to be successful. customers and suppliers. there are people who push for change and there are individuals who resist for change and desire status quo. When the forces are in balance. Initially the two groups may be equal in their forces. the 3 stage process must be completed. Communication of the changes to all involved. Organisational change can occur at three levels: o Individual – Changes in individual’s attitudes. they change. • • • • • • . the organisation is in a state of inertia and does not change. To get the organisation change. again they balance and balanced at any time between the two opposing forces.• Transition management ensures that business continues while the change is occurring. This Lewin termed as ‘quasi stationery equilibrium’ Lewin’s theory states how the forces for change and resistance balance. thus requires that old behaviours are discarded and new behaviours introduced Those new behaviours have to be institutionalized and rewarded • • • • • • 19. play a role in transition management.

o Structure & Systems – Change in work design reporting relationships information systems the reward systems, etc. o Organisational Climate – Change in leadership style interpersonal relations, decision making style and other such aspects.

K. MODEL OF ORGANISATIONAL CHANGE – THE CONTINUOUS CHANGE PROCESS MODEL:
• • • •

Lewin’s model is very simple and straight forward. Many models of organisation change use his approach. However, it does not deal with several important issues. A more complex and more helpful approach is illustrated in the figure below:

1. Forces for change

2. Recognise & define problem Change Agent

3. Problem solving process

5. Measure evaluate control

4. Implement the change

Transition manage ment

• • •

This approach treats planned change from the perspective of top management. It indicates that the change is continuous. As change becomes continuous in the organisations, different steps are probably occurring simultaneously through out the organisation. This model incorporates Lewin’s concept into the implementation phase. In this approach, top management perceives that certain forces or trends call for a change. Such an issue is subjected to the organisation’s usual problem solving and decision making processes. Usually, top management defines its goals in terms of what the organisation or certain processes or outputs will be like after the change. Alternatives for change are generated and evaluated and an acceptable one is selected. Early in the process, the organisation may seek the assistance of a change agent – a person who will be responsible for managing the change efforts. The change agent: o May be a member of the organisation

• •

o An outsider, such as a consultant o Someone from company headquarters – a far away place o An outsider is preferred because of his assumed impartiality Under the direction and management of change agent, the organisation implements the change through Lewin’s unfreeze, change and refreeze process. The final step is measurement, evaluation and control. With this, the top management determines the effectiveness of the change process by various benchmarks and indicators of organisational productivity and effectiveness.

• •

L. LEADERSHIP STYLES:
(Top Down & Bottom up approaches are given in Module 3)

Laissez or free-reign leadership approaches
• • • •

In this type of leadership approach, the leader is just a figure-head. He does not give any directions. He delegates the authority to subordinates. Subordinates must plan, motivate, control and otherwise be responsible for their own actions. The leader acts principally as a liaison between the group and the outside elements. He supplies necessary materials and information to group member. He lets the subordinates develop their own techniques for accomplishing goals within the organisational policies and objectives. The leader participates very little and instead of leading and directing, he just becomes one of its members. This type of leadership is highly effective when the group members are highly intelligent and are fully aware of their roles and responsibilities. This type of leadership is evident in research laboratories where the scientists are fairly free to conduct their research and make their decisions. Also true to university professors.

• •

Advantages:
• • •

Creates an environment of freedom, individually as well as team spirit. It is highly creative with a free and informal work environment. This approach is very useful where people are highly motivated and achievement oriented.

Disadvantages:
• •

It may result in disorganized activities which may lead to inefficiency and chaos. Insecurity and frustration may develop due to lack of specific decision making authority and guidance.

The team spirit may suffer due to possible presence of some uncooperative team members. Some members may put their own interests above the group and team interests. OD Definition: is the process of planned change and improvement of organisations through the application of knowledge of behavioral sciences. 3 points to remember in this definition are: i. Organisation development involves attempts to plan organisational changes. ii. Specific intention of organisation development is to improve organisation. iii. The planned improvement must be based on knowledge of the behavioral sciences such as OB, psychology, sociology, cultural anthropology and related field of study rather than financial and technological considerations.

M. OD INTERVENTIONS:

• •

Several OD interventions also called techniques, have evolved over a long period: Good interventions have 3 characteristics: (i) (ii) (iii) They are based on valid information about the functioning of the organisation, usually collected by the employees. The intervention under the guidance of the change agent, provides employees with opportunities to make their own choices regarding the nature of the problems and their preferred solutions. Interventions are aimed at gaining the employee’s personal commitment to their choices.

Organisation confrontation meeting f.9. T-Group/Sensitivity Training b. Team building e. Strategic change v. Quality circles k. Managing workplace diversity r. Formal structural change h. Different types of OD interventions and the level of their impact: Interventions: Human Process: a. Work design Human Resource Management: m. Career planning & development q. Employee wellness Strategic: s. Reward systems p. Process consultation c. Performance appraisal o. Integrated strategic management t. Inter-group relations Technostructural: g. Total quality management l. Differentiation & integration i. Culture change u. Cooperative union management projects j. Goal setting n. The OD Paradigms & Values: • • • • • • Organisational Level Affected Individual Group Organisation √ – √ – – – – – √ √ – √ √ √ √ √ √ √ – – – – √ √ √ √ √ √ – – √ √ √ √ √ √ √ √ – – – – – √ – – – – √ √ √ √ √ – √ – – – √ √ – – √ √ √ √ Values human & organisational growth Collaborative and participative process A spirit of inquiry Strong emphasis on collaboration The change agent as a catalyst Important factors in OD efforts: a) Respect for people: . Third party intervention d. Self designing organisations 10.

4. A behaviour scientist directs the discussions. • • • • • • . encounter group or T-groups (Training groups) All refer to a method of changing behaviour through unstructured group interactions. 5. beliefs and attitudes. Increased ability to empathies with others. e) Participation: • • All those who are affected by the change should be involved in decision making surrounding the change. They should be openly confronted. Provide the participants with increased awareness of their own behaviour and how others perceive them. To develop greater sensitivity to the behaviour of others. Improved listening skills. The individuals learn through observing and participating rather than being told. authenticity. Members meet in a free and open environment and discuss about themselves and their interactive processes. Explanations on a few OD Techniques: a) Sensitivity Training: • Also known as laboratory training. The more we involve. The OD specialist (behavioral scientist) creates the opportunity for participants to express their ideas. c) Power Equalisation: • Effective organisations deemphasize hierarchial authority and control d) Confrontation: • • Problems should not be swept under the rug. 2. the more will be committed to implementing those decisions 11. openness and supportive climate. To develop increased understanding of group processes.Individuals are perceived as being responsible conscientious and caring. • They should be treated with dignity and respect b) Trust & support: • • The effective and healthy organisation is characterized by trust. The objectives of T-groups are: 1. 3.

• • • • • • d) Team Building: . But they are unable to identify what can be improved and how. An outside consultant to assist the manager to perceive is employed. Managers often sense that their unit’s performance can be improved. but more task oriented. Greater openness 7. it is important that the organisational family – the manager and those employees who report directly to him participate. Similar to sensitivity training. formal communication channels are some of the areas. Even though every employee in an organisation can participate in survey feedback. Improved conflict resolution skills b) Implications of Resistance: • • • • It is a tool for assessing attitudes of organisational members. A questionnaire is usually filled by all employees of the organisation. The questionnaire seeks to find out the perceptions of the employees on a range of topics like − − − − − Decision making practice Communication effectiveness Coordination between units. informal relationships among unit members. Identifying discrepancies among perceptions and Solving these differences. Work flow.6. Satisfaction with the organisation Job peers and immediate supervisors • • • The steps involved are as follows: Data Collection Feedback to organisational unit Action Decision Consultants c) Process Consultation: • Is a technique concerned with the interpersonal relations and dynamics operating in work groups. Increased tolerance of individual differences and 8. He understands and suggests the processes which the manager must act upon.

These work groups focus on solving actual problems in building efficient management teams. In this method each group meets independently to develop lists of its perceptions of itself. stereotypes and perceptions that groups have with each other. Then selects the most appropriate solution. OD consultant also helps in assessing group tasks. It utilizes high interaction group activities to create trust and openness among team members. the participants are likely to be committed to the solution and interpersonal support and trust are developed. The support and trust of group members enhance the implementation of change. ‘Problem solving’ is one of the popular approaches for improving intergroup relations. • • • • • • . Step-3 • • • • e) Intergroup Development: • Seeks to change the attitude. Engineers accountants production engineers maintenance engineers Such stereotypes can have obvious negative impact on the coordinative efforts between the departments. Aimed at helping groups to become effective at task accomplishment. Team building process involves the following steps: Step-1 Step-2 • • • • • • • • • The team leader defines a problem. The group proposes several solutions. role clarification. Through this process. Team building includes OD consultant feedback in such areas as communication and conflict resolution. member roles and strategies for accomplishing work tasks. Hence change efforts are directed towards the group to change their attitudes. the other group and how it believes the other perceives it. Determines underlying cause in such areas as communication.• Is a conscious effort by management to develop effective work groups through out the organisation. Eg. leadership style. stereotypes and perceptions through intergroup development. organisational structure and interpersonal relations. The group analyses the problem. A major area of concern in OD is the dysfunctional conflict that exist between groups.

3 . g) Grid Training: • Grid organisational development is an extension of the managerial / leadership grid concept developed by Blake & Mouton Carried out on an organisation-wide basis. group problem solving. The steps in grid OD are shown below: Steps 1 Training Activities In a week-long seminar. • • • • • 2 . Differences are clearly articulated and the group look for the cause of disparities. these key managers will work to implement the grid program through out the organisation. Intergroup tensions are dealt with openly and joint problem solving procedures are developed. key managers learn about grid concepts and how they are applied. OD consultants help the parties resolve their differences through such techniques as problem solving. Or may be caused by sub optimal interpersonal relations. Most organisational problems stem from poor communication and inadequate planning. Black & Mouton proposed a multi step process for improving organisations by attempting to cultivate these skills. Team Development Intergroup development . Seeks to promote organisational excellence by fostering concern for production and concern for people. after which similarities and differences are discussed. After appropriate introduction. groups or departments. and communication.9 grid level. To resolve serious conflicts those are related to specific work issues. The trained managers bring their new understanding of managerial grid concepts relationships and team effectiveness so that the team operates at 9. They assess their own managerial styles and work on improving such skills as team development. • f) Third Party Interventions: • • • • This is concerned with helping individuals. This phase focuses on the relationship between the organisation’s work groups to improve coordination & cooperation.• The groups then share lists. bargaining and conciliation.

. The programs vary. QWL programs focus strongly on providing a work environment conducive to satisfying individual needs. Richard Walton’s categories of programs are shown below: • • • Adequate & fair Compensation Development of Human capacities Social Integration Total Life Space Safe & Healthy work Environment Growth & Security Constitutionlism Social Relevance • There are a few popular approaches to humanize workplace. Goal Organisation members seek to make the ideal attainment model a reality. They set goals to be tested. 6 Organisational Top managers together create an ideal model of goal setting the organisation.4 . h) Quality of Work Life: (QWL) • Is defined as the degree to which members of a work organisation are able to satisfy important personal needs through their experiences in the organisation. 5 . evaluated and refined by managers and subordinates working together throughout the organisation. Each submits proposals on how their activities should be carried out in order to achieve excellence and they proceed to take whatever corrective actions are necessary. Stabilization Eventually. but the goal of ‘humanizing the work place’ is of paramount importance. the results of all the phases are evaluated to determine which areas of the organisation still need improvement or alteration. Efforts are made to stabilize positive changes and to identify new areas of opportunity for the organisation.

• • • • The hurdles are − − Both management and labour must cooperate in designing the programs Plan agreed by all must be implemented. This allows the organisation to change by playing to its strengths and competitive advantages. this approach seeks to identify the unique qualities and special strengths of an organisation. Organisational commitment Reduced turnover among workers Increased productivity Profitability and goal attainment for the organisation. − For instance. These qualities are further built on to improve performance It focuses on organisations success and abilities than on its problems.• One such is ‘work restructuring’ – the process of changing the way jobs are done to make them more interesting to workers. • • • • • • . AI process essentially consists of four steps. Job enlargement and job enrichment are two such. employees are asked to recount times they felt the organisation worked best. Rather than looking for problems to fix. The first step is Discovery: − The idea is to find out what people think are the strengths of the organisation. QWL programs benefit the organisation in these ways: − − − − − Increased job satisfaction. Often played out in large group meetings over two or three days and overseen by a trained change agent. Another approach in Quality Circles These are small groups of employees who meet regularly on voluntary basis to identify and solve problems related to the quality of work they perform. They identify a problem and then look for solutions. Appreciative inquiry is positive. − Or when they specifically felt most satisfied with their jobs. i) Appreciative Inquiry: (AI) • • • • Most OD approaches are problem oriented.

• • Companies who used this OD technique.• The second step is Dreaming: − The information from the discovery phase is used to speculate on possible futures of the organisation. The fourth step is Destiny: − In this final step. originality and novelty that is also appropriate to the context. participants focus on finding a common vision of how the organisation will look and agree on its unique qualities. The essence of creativity is the element of freshness. 12. have increased their sales and profits by several crores of money. • The third step is Design: − Based on the dream articulation. CREATIVITY IN ORGANISATIONS: • Organisational culture promotes creativity and innovation 12. − This typically includes the writing of action plans and development of implementation strategies. • . participants discuss how the organisation is going to fulfill its dream. Nature of Creativity: • Creativity refers to the process by which novel but situationally appropriate outcomes are brought about. Benefits & Limitations of Organisational Development: Benefits • • • • • • • • • • • • Limitations • • • • • • • • • • • Organisation-wide changes Higher motivation Higher productivity Better quality of work Higher job satisfaction Improved team work Better resolution of conflict Commitment to objectives Reduced absence Lower turnover Creation of learning Individuals and groups Time consuming Expensive Delayed pay-off period Possible failure Possible invasion of privacy Possible psychological harm Potential conformity Emphasis on group processes rather than performance Possible conceptual ambiguity Difficulty in evaluation Cultural incompatibility N. − For instance people are asked to envision the organisation in five years and describe what different is going to happen.

the mind constantly considers the problem and works on it. the act must be unique and appropriate to the context. The Creative Process: • Researchers have developed a model that outlines the various stages of the creative process. − It is an experience of suddenly becoming aware of a unique idea. − Plays powerful role in dissolving previously held notions about a problem. − The flashes of inspiration have no definite schedules. . − The problem or issue not forgotten. − They might come at any time of the day or night. − Involves developing a clear understanding of what one wants to achieve through a novel solution Step-2 Incubation Step-3 Insight Step-4 Verification • • • Incubation: − Is a process of reflective thought and is often conducted subconsciously. The ability to promote creativity in organisations is an important competence to face the turbulence of dynamics of changes in the organisations. The process of creativity occurs in the following four stages: Step-1 Preparation Preparation: − An important condition for creativity. − But the problem is still simmering in one’s mind − But it is not at the forefront of his attention. • • 13.• To call anything creative. • Insight: − Individuals experience insight at some point during the incubation stage. − Incubation assists in divergent thinking and generating different approaches to the issue. − The problem is only put in the back burner. The social and technological changes that organisations face require creative decisions. − During incubation.

Creativity Inducing Factors: a. Grid analysis c. These are the supporting environments and facilities to encourage people to search for new ideas: Creative People Organisational Support Organisational Culture Enhanced Creativity . Brainstorming b. − At this stage. Inventive thinking style. tenacity is very important. − The new idea has to be subjected to evaluation and experimentation. but verification of their value is important.− It can also be lost if not documented. Characteristics of Creative Individuals: • It is said that creative people posses intellectual and personality characteristics different from their less creative counterparts. − It is not sufficient we have come up with an idea. Some of the traits of creative people include: − − − − − − − − Willingness to give up immediate gain to reach long range goals. High intellectual abilities. • 15. • Creative processes do not always follow an order. Methods of Enhancing Creativity: a. A great amount of energy. 14. Belief that fantasy and day dreaming are not a waste of time. • Verification: − Ideas are generated at the insight stage. An irritation with status quo Perseverance A pursuit of hobbies and specialised interests. since other people may resist or reject the creative ideas. Lateral thinking 16.

• . d. − Divergent thinking is key to creativity f. Organisational Support: − May come in many ways. Organisational Culture: − − − − − Openness to new ideas. development. Time & Resources: − People are more creative when they have funds. extended leave. seminars. manufacturing and marketing. facilities. processes and services. research. Exposure: − Expose employees to various kinds of experience. − Like foreign assignments. − Sets goals for creativity − Encourage employees to take risks and accept failures. Diversity: − Diverse ethnic and cultural groups. etc. − Make the job intrinsically motivating.Diversity b. Creative People: Exposure Time & Resources i. INNOVATIONS IN ORGANISATIONS: • Innovation is the process of creating and doing new things that are introduced into the market place as products. − People need enough resources O. Friendly supervision Team building Participative decision making Flexible organisation structures. e. − Break out of the shell and take risks. c. Selecting creative people is the starting point in enhancing creativity in organisations. if any. g. − Lavishness does not work. materials. Innovation involves every aspect of organisation. information and time.

• The greatest challenge is to bring the innovative technology into the market in a cost effective manner. Do not focus only on immediate problems. 1) Types of Innovation: • • Radical innovation – major break through – eg: xerox System innovation – creating new functionalities by assembling parts in new ways – eg: automobile Incremental innovation – continues the technical improvements – applicable to radical and systems also – forces organisations to continually improve products. . • 2) A Six Step Model for Planned Innovation or Change: • The process followed by managers when they engage in planned innovation and change are illustrated in the sketch Step-1 Perceiving an opportunity or a problem Step-2 Diagnosing the situation and generating ideas Step-3 Presenting a proposal & adopting the change or innovation Step-6 Monitoring and evaluating results Step-5 Implementing the change or innovation Step-4 Planning to over come resistance to change or innovation Step-1 : Perceiving an opportunity or a problem • Look ahead for opportunities to solve current and anticipated problems. • • Step-2 : Diagnosing the situations and generating ideas • Diagnose the situation and generate new ideas. Hold periodic sessions with senior/junior managers and elicit suggestions.

• • Step-4 : Planning to overcome resistance • • Understand the reasons and resistance for change. Perceptual Blocks Cultural Blocks Emotional Blocks Need for Creativity & Creativity & Innovation . It is also essential to guard against ways which hinder creativity. Overcome the resistance. Step-5 : Implementing the innovation or change • • Moment of truth when the change is put into operation. There are three broad categories of obstructions for creativity. If the planning is carefully done. Do not overlook the status of ongoing activities relative to the competition. Preparation of a business plan is necessary for budget proposals. Feedback for improvements in successive innovations.• • This will fix the problems and take advantage of the opportunities. Otherwise good ideas will be rejected when they are proposed. BLOCKS FOR CREATIVITY & INNOVATIONS: • • • It is not enough to take positive steps to promote creativity. • P. implementation will be smooth Step-6 : Monitoring the results • Monitor and evaluate what happens after the change has been implemented. perceptual. Step-3 : Presenting a proposal and adopting the change • Establish the fact that innovation and change are important to the organisation. cultural and emotional blocks as shown in the sketch.

The drive to be practical and economical. It can’t work 12. Too old fashioned 46. It has been done before 15. The old times won’t use it. The timing is off 37. Too academic 41. I know it won’t work 11. 2. There are better ways. The new people won’t understand 35. Too many projects now 13. We have been doing it this way for 48. Perceptual Blocks: Include such factors as: − − − − The failure to use all the senses in observing Failure to investigate the obvious Difficulty in seeing remote relationships Failure to distinguish between cause and effect. A belief that indulging in fantasy or other forms of open-ended exploration is a waste of time. We have not the manpower 50. 34. It needs more stud 16. Costs too much 8. 40. A good idea but… 2. 38. Too hard to implement. Cultural Blocks: Include: A desire to conform to established norms. The boss won’t go for it. The union won’t go for it. 4. 43. Too late 44. Overemphasis on competition or conflict avoidance and smoothing. Too soon 47. 39. Too hard to administer 42. It is not good enough 18. It does not fit human nature 14. Emotional Blocks: Include: − The fear of making a mistake. Too much paper work 45. 3.Innovation 1. Be practical 6. Long time and it works 49. Against company policy 3. − Fear and distrust of others − Fear of grabbing the first idea that comes along Sixty-One Ways to Block Creativity: 1. All right in theory 5. Ahead of the times. It is not budgeted 17. Let me add to that 32. 36. That is not our problem 33. Can you put into practice? 7. Don’t start anything yet 9. We have not the time − − − − . They won’t go for it. It is not part of your job 19. Have you considered 10.

Let us make a survey first 23. Why has not someone suggested it before if it is a good idea? You are off base! . Of course. We have tried it before 55. Surely you know better 51. Let us sit on it for a while 26. We are too big 52. What bubble head thought that up? 56. Let us think it over for a while 27. Some other time 31. Who do you think you are? 60. 28. We can too small 53. Let us form a committee 22. we have never done it that way 54. it won’t work 29. Let us not step on toes 24. Who else has tried it? 61.20. Our Plan is different 30. What will the union think? 58. Not ready for it yet. Let us discuss it 21. Let us put it off for a while 25. What you are really saying is? 59. What will the customers think? 57.

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