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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.
• 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.
• • • •
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”
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.
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 low efficacy say ‘I know I can not do that. . People with low self-esteem are more susceptible to external influence. Leadership 4) Self-Esteem: • • • • • • • • • • • Refers to the feeling of like or dislike of one-self. low esteems will tend to be concerned with pleasing others. • 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. I do not have the requisite ability’ Vulnerability to Stress: People with low self-efficacy tend to experience stress and burnout.• Facilitating through patterns: People with high self-efficacy say ‘I know I can figure out how to solve this problem’. High efficacy people enter into potential stressful situations with confidence and assurance and thus are able to resist stressful reactions. Low esteem people prone to the beliefs and behaviours of those they respect. People with high self-esteem believe that they have abilities to undertake challenging jobs. This is called as organisation based self esteem (OBSE) Directly related to the desire for success. High esteem people tend to choose unconventional jobs. since they expect failure. Self managed work teams Job design and goal setting. Low esteems are less likely to take unpopular stands. Low esteem people are dependent on the receipt of positive evaluations and approvals from others. Self esteem has to do with people and self-perceived competence and self image in an organisation. In managerial positions.
A role is a set of expected behaviour patterns attributed to someone occupying a given position in a social unit. both on and off his job. 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. but only if like many other human characteristics – such as creativity. likely to fear decision making. each playing a role. 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. That view indicates how one is supposed to act in a given situation. Based on the interpretation of how we believe we are supposed to behave. lack negotiation and interpersonal skills and are reluctant unable to change. satisfaction. feelings. Low esteems are less satisfied with their jobs. a ii)Role Perception: • • • It is one’s view. High self esteem people have more positive attitudes. − Yet another study says: “High self esteem can be a good thing.• • • • • High esteems are more satisfied with their jobs. Everyone has to play a number of diverse roles. − One study found that people with high self-esteem handle failure better than those with low self esteem. hopelessness and depressive symptoms. less anxiety. People with low self-esteem are not confident in thinking ability. we engage in certain types of behaviour. Research results on self-esteem are mixed. Our behaviour varies with the role we are playing. It is found that males score slightly higher in self-esteem than females. − 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. .
technical and non-technical activities. • a iii)Role Expectations: • • Defined as how others behave you should act in a given situation. Supervisors particularly have to change roles rapidly as they work with seniors. 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. subordinates. as well as opening up lines of communication to discover the other’s perceptions. conflicts will inevitably arise. Unless roles are clarified and agreed upon by both parties. they must be highly adaptive and exhibit role of flexibility in order to change from one role to another quickly. Reaching such an understanding requires studying the available job descriptions. Role of a judge or football referee. The complex web of manager – employee role perception.• Since managers perform many different roles. eg. the result is role conflict. How we have to behave. to a large part is determined by the role defined in the context in which we are acting. a iv)Role Conflict: • • When an individual is confronted by divergent role expectations. b) Leader/Manager Roles: by Mintzberg . It exists when an individual finds that compliance with one role requirement may be more difficult than compliance with another.
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.Greenberg & B.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.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 .
motivation. Change encompasses leadership. A process and not an event. Sometimes it is also a ‘mutually agreed’ plan for change in various groups of management. organisational environment. An organisation too cannot and should not remain constant/stagnant all the time. roles of people. it has visions of revolutions. environments and expectations. • • • • • • 7) Characteristics of Change: • • • • • • Vital if a company were to avoid stagnation. Many a times it is a ‘top down’ management directive. It is normal and constant. Even if the management does not want to change. It is dependent upon the organisational environment and or culture. Change produces emotional reactions too. the external pressures force it to change. Sometimes it is a ‘radial’ shift from the current to a new process. If throws up also a dissatisfied person. Humans and organisms. a trouble maker. Life itself is almost synonymous with the concept of change. step by step.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. ‘grow up’ leaving behind the characteristics of earlier stages of development and adopt new behaviours with age. etc. but pervasive too. Is fast and is likely to increase further in the present competitive business. Sometimes is an ‘incremental’ change. To many it is threatening. • • • • . Change is inevitable. It is a ‘natural’ and ‘adaptive’ change as a consequence/reaction to the external circumstances and pressures.
The good and bad experiences of the individuals of the company on whom the new change is vested in. Those three components are: − The historical and political evolution of the company.8) Corporate Culture and Change Management: • All changes interface with three organisational components which constitute the organisational culture. − The management and organisation of the company. The perception of the company that the customers are holding. • • . These factors are: • • • • • • • Base & origin of the company Associated values of the company. The traditions and norms to which the management and employees are accustomed to. − 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. The unwritten and written long standing rights and policies existing in the company and the likely threats to them. History & Politics: The historical and political evolution of a company will have a significant bearing on its acceptance of change. Are the value & image of the company being changed during the change? The origins of the individuals within the company. The image the company likes to promote.
Both project and group work increase. All cautions should be exercised in the people oriented changes. their acceptance and willingness and take suitable remedial measures. divisions and departments become blurred. Every decision on change ‘impacts’ the people. sphere of influence. The likely ‘balance of power’ between the current owners and the functional experts. The boundaries between jobs. promotion or other type of recognition. personal status. • • • 4b.Management & Organisation: • • • • • • • • • • • • Changes will impact the roles of management. • . Senior management encourages opportunities for progress through innovation. With increased harassing of technology and processes availability of jobs decrease. The ‘winners’ and ‘losers’ of power. It will also impact the structure and operation of the organisation. and there inter-relationships. Multi skilling of employees increase and in greater demand. • • 4c. etc. Think carefully the impact of change in every job it affects. The jobs broaden in terms of scope and of accountability. Role of line management shifts from ‘autocrat’ to that of ‘facilitator’ Senior management takes more of strategic stance. All the activities and outputs gets customer oriented. measure and analyse the effect of the change on the workforce. 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. People: • • • • Most of the issues in change management are ‘people’ oriented. The ‘acceptance’ of change process by top management. Before embarking upon the change. They recognize the contribution to the achievement of business objectives.. The requirements of specialists slowly decrease.
can resist change envisaged by management. • • c) Organisational – Level Changes: • Changes at this level involve major programs that affect both individuals and groups. Decisions at this level involve major programs that affect both individual and groups. Others say. Decisions regarding these changes are generally made by senior management. Effective implementation of change at the group level. They cover long periods of time.9) Levels of Change: 3 Levels – Individual. • • b) Group Level Change: • • • • Most organisational changes have their major effects at the group level. the above is not true. Change in the organisational level is generally referred to as ‘organisational development’ • • • • • • . since any change at individual level. Some say that changes at the individual level will seldom have significant implications for the total organisation. group and organisational a) Individual Level Change: • Change is reflected in such developments as changes in job assignment. will also have repercussions in the group. Changes at the group level can affect. These decisions are rarely implemented only by a single manger. Informal groups can pose a major barrier to change because of the inherent strength they possess. physical move to a different location or the change in maturity level of a person which occurs overtime. The groups could be departments or informal work groups. This is because most activities in organisations are organised on a group basis. − − − − − Work flows Job design Social organisation Influence the status systems & Communication patterns • • Managers must consider group factors when implementing change. Require considerable planning for implementation. Formal groups. can frequently overcome resistance at the individual level. like unions.
Employees are expected to make suggestions on all aspects of processes and management.6) Types of Change: • Two Types : Evolutionary Change Revolutionary Change • • Evolutionary Change : Gradual. drastic & organisation-wide. TQM is an example Revolutionary Change: Sudden. Developed by Edward Demming Broad goal of TQM is continuous improvement. Has the following components. TQM has 4 key components Systems Change Through TQM Management People Processes • • • b) Re-Engineering: • • • Revolutionary change. Orients with customer as object. re-engineering is an example. a) Total Quality Management (TQM): • • • • Evolutionary change. Radial rethinking and redesigning of business processes to obtain rapid organisational effectiveness. reduce waste. Business processes Re-engineering Values & Benefits Jobs and Structures Management & measurement • • • . Known as Business Process Re-engineering. incremental. roles and work activities. improve quality. Continuous efficiency improvement to reducer costs. Ignores existing arrangement of tasks. TQM is driven by statistical data.
lateral thinking and raw creativity associated with senior management. Reengineering demands conceptual thinking rooted in supposition. Both promote a process orientation. improvement. Both differ in perception too TQM has analytical thinking. bottom up. TQM focuses on improvement whereas reengineering focuses on customer relationships. 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.c) Integration of evolutionary & revolutionary change – TQM & Re-engineering: • The popular approach is that the two can not co-exist. But the two approaches applied together and with understanding and sympathy. Both stress on job description and proper organisation structural relationships. intuition. Both promote empowerment and involvement high value team work in quality circles. TQM is an attitudinal change with constant focus on continuous improvement and customer. measurement. • • • • . The two differ in their impact on organisational culture. although there is a difference in emphasis. Both emphasize on power and accountability. comparison fact finding and reasoning. rather than pure directions. offer a tremendously powerful recipe for building or rebuilding an organisation. • • • • • • • • e) Dissimilarities between TQM & Reengineering: • • • • • The two differ in their approach to change. TQM – a continuous. Re-engineering is radical reinvention and top down approach. Both stress the role of management on coaching and facilitating. Both emphasize the importance of customer. Both demand change of people’s attitudes and their values and beliefs. performance measurement and reward schemes. Reengineering has a program of change with an identifiable beginning and an end.
arising from sources within the organisation. TQM can address the problems at the lower levels. The changes stem from several factors. Some are internal. Some are external. 7) Forces for Change in Organisations: • • • • • Change has become the norm in most organisations.• • Reengineering can address major strategic issues at top level management. 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.
To get the organisation to change. there are people who push for change and there are individuals who resist for change and desire status quo. .9) Force Field Theory of Change: . Simultaneously reduce the resistance for change. Refreezing the system so that it remains in this desired state. Moving to a desired condition. At P2 the forces balance between the two groups. At P1.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. Initially both the groups may be equal in their force. the organisation is in a state of inertia and does not change. effective change occurs by: • • • Unfreezing the current situation. When the forces are in balance. the change starts occurring in steps and reaches a level of P2. • • • • • • 10)Different change Models Lewin’s three stage model of change system: As per Kurt Lewin’s Force Field Model. managers must adopt a change strategy to increase the forces for change.
Failures can be traced back to anyone of the stages. Presenting the existing problem Making the people to recognise the need for change. b) Moving: Aims • To shift or alter the behaviour of individuals. To develop new behaviours. Old behaviours should be discarded and new behaviours are introduced. • • • c) Refreezing: • • The change becomes permanent.a) Unfreezing: Involves • • • • • • Shaking up the equilibrium state that maintains status quo Encouraging individuals to discard old behaviours. To change sometimes through structural changes. the 3 stage processes must be completed. • • . New attitudes. values and attitudes. values and behaviours Refreezing Reinforcing new values attitudes and behaviours • The model proposes that for change efforts to be successful. departments or organisations where the changes are to take place. The new way of operating are cemented and reinforced. values and behaviours are established as the new way of organisational approach. Encouraging people to search for new solutions. Old ways of functioning are avoided • • • d) Lewin’s Change Model: Unfreezing Reducing the forces for status quo Moving Developing new attitudes. To change sometimes through organisational development techniques. Eliminating the rewards for current behaviours and discouraging current behaviours. Management should ensure that the new organisational culture and record systems encourage a new behaviour.
Managing transition is essential to keep the organisation going. • • 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. but the change agent can change the sequences when need arises. the business must carry on. − They also explore the areas requiring change. . This is a process of systematically planning. Watson & Westley (1958). In the transition state. 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.e) Transition Management: • • • Is between any two phases of change. An interim management structure or interim positions may be created to ensure continuity and control of the business during transition. customer and suppliers. employees. organizing and implementing change from the disassembly of the current state to the realization of a fully functional future state within an organisation. Communication of the changes to all involved. the organisation is neither old nor new. This information must be able to be translated into action. play a great role in transition management. Transition management ensures that business continues while the change is occurring. This model follows a seven step process as in the sketch: • • Scouting Entry Diagnosis Planning Termination Stabilization & Evaluation Action • The phases are generally sequential. Still. • • • • • 11) Planning Models • • • Developed by Lippit.
questionnaire. b) Consultation with a behavioral expert: • After problems are sensed and realized. 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. Also analysis of organisational performance. • Stabilization and Evaluation: − Phase where evaluation is undertaken to determine the extent of success of the planned change. The consultant provides the client all relevant and useful data. process observations. Methods used-interviews. To determine the strengths and weaknesses of the area under study. • Planning: − Actual and possible reasons for resistance to change are identified. − The need for further action or termination is also made in this phase. d) Feedback to key client or group: • • • Data gathered is passed on to the client.• Diagnosis: − In this phase the specific improvement goals are identified. . • Action: − Indicates the implementation of the steps identified during the planning stage. a) Problem Identification: • • A stage in which the management senses the existence of one or more problems. − Planning for specific improvement of goals is also made. These problems are removed with the help of an OD practitioner. • Termination: − Phase where a decision is made to leave the system or to end and begin another. the help of an OD expert is sought c) Data gathering & preliminary diagnosis: • • • Consultant and organisational members gather the data.
Involves and includes: − − − Installing new methods and procedures. . situations re-diagnosed and new actions taken. Reinforcing new behaviours. Focuses on any additional research needed. New data is taken to find the effects of actions already taken. 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. f) Joint action planning: • • The consultant and management team jointly agree on problem – solving methods. h) Data gathering after action: • • • Is cyclic in nature. The group does validation. The specific action depends upon on the organisation’s cultural. further diagnosis and identified the problem. Reorganizing structures and work designs. etc.e) Joint Diagnosis of the Problem: • • • • The group discusses the feedback. Results of additional research are summarized and submitted to the group again. Based on the feedback. g) Action: • • Stage involves the actual change from one organisational state to another.
The rules for carrying out the consulting relationships. The basis for this model is that an organisation exists in different states at different times.13)Integrative Model of Planned Change: • • • Developed by Bullock and Batten (1985) Describes both organisational states and change processes. And the resources for OD are committed. How much time each will invest and what it will cost. This leads to search for OD resources and assistance and then contracting OD experts. • • • • • • . Diagnosis is jointly undertaken by organisational members and OD practitioners. Appropriate actions are designed to improve the organisation. there is a mutual assessment of the requirements. • • • • The contracting phase lays the ground rules for a collaborative relationship and seeks clarification as to − − − What each party expects from the relationships. The change process is undertaken after the ‘diagnoses of sources of problems and then analyzing it. b) Planning Phase: • Planning commences once the problems facing the organisation are understood. Goals are set for the change efforts. Understanding of the present state of the organisation and the processes of change required to move to another state is required. Approval of the key decision makers is also sought during this stage. In the search process. wherein: − The organisation members make judgements about consultant’s skill and competence. Model consists of four phases • • • a) Exploration Phase: • Organisation decides whether to plan for specific change and commit resources for it. − And the consultant assesses whether the client is ready for change and has the necessary resources and commitment. Planned movement can occur from one state to another. Organisational members who are aware of the need for change initiate the change process.
• Slowly. The change activities are monitored and evaluated periodically. Institutional perspective – looks at becoming and change through imitation. • • . The new behaviour reinforced and further strengthened through: − − − • Regular feedbacks Incentives & Rewards. It includes processes aimed at transitioning the organisation from its current state to the desired future state.c) Action Phase: • • The changes derived from planning stage are implemented in this stage. the contract with the OD professional is gradually terminated. 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. Also to check if any modifications and refinements are required for the process. professionalization and compliance. This is done to assess the progress and check whether positive results are being achieved. Contingency perspective – focuses on structural change. • • • 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. Population ecology perspective – looks at the limits of change and resistance to change. Resource dependence perspective – examines strategic change.
Specialization is also known as ‘division of labour’ In an organisation there is usually a horizontal and vertical division of labour. 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. Variety of things that exists outside yet surrounds the organisation. marketing. The term ‘environment’ means ‘the surrounding’ That is everything that surrounds the organisation. the job of a truck loader. An organisation changes if the environment changes. converts them into products and services and gives these products and services back to the surroundings. Organisation is something that gets resources from outside. Two central dimensions of structure-specialization and integration. Refers to the member and variety of different activities that make up individual jobs in an organisation. personnel. • Specialization: • • • • • . Organisations divided into manufacturing. etc.. 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. The fundamental idea is that it is the ‘environment’ which is the source of most of the major changes. accounting. are called as horizontal specialization or horizontal division of labour.a) Notion of Environment: • The most important notion in the four perspectives of organisational change is the idea of environment. Environment derived from ‘Environ’ means to ‘surround’. Any job that consists of a single activity or very few activities is a highly specialised job eg.. • • b) Contingency Perspective: • • Mainly concerned with the structure of an organisation. Signifies everything that exists outside our organisation.
The most important aspect of contingency perspective relating to organisational change is the relationship between environment and structure. In restructuring several questions arise.Integration: • Refers to the various ways and means of coordinating the work of individuals in the organisation. technology of an organisation. unproductive and chaotic. plans and targets. Contingency factors depend upon contingency variables. The management can determine the extent of specialization and type of integration required within an organisation. Without these coordination mechanisms. 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. Both specialization and integration are factors that are within the control of an organisation’s management. What types of structure? How specialised the jobs should be? What are the coordinating mechanisms in the organisation? Etc. • • • General: • • • • Contingency Perspective: • • • • • • • • • • • • • . Contingent means ‘depending’. Any change in one or more contingency variables results in a misfit between the structure and the contingency variable. These bring about uniformity and standardization in the activities of the organisation. Misfit requires a change in the organisation structure. they need to change their structure in order to remain effective. or if they change their strategy or if they acquire new technology. strategy of an organisation and environment of an organisation. These are the central questions based on the contingency perspective. Organisational changes almost always involve restructuring. These variables are: size of an organisation. rules. an organisation would be inefficient. or if there is a change in their environment. Lack of fit or misfit affects the performance of the entire organisation. procedures and systems and goals. The most common and familiar methods of integration are through direct supervision. Any change in these two dimensions is called as ‘restructuring’ of an organisation. There are two dimensions that characterise the environment of an organisation. When an organisation grows larger.
• One is the level of complexity – how many different organisations are there in the environment. It is based on the assumption that attributes of size. The higher the level of complexity and instability. contingency perspective has come under lot of scholarly criticism. 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. environment and structure and so on. In other words. strategy and environment commonly occur together. In recent years a new approach called. Dependence of an organisation on other external organisations for resources makes it vulnerable because it creates uncertainty. If the answer is many. effective organisations have a cluster of common attributes. 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. • • • • • • • • • • • • • • • • 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. Pfeffer and Salancik profounded two strategies: internal and external. This makes them dependent on the groups and organisations in the environments which control the resources that the organisation requires. If they are changing rapidly. the higher the level of uncertainty. the environment is complex. If the answer is few. But the contingency variables are themselves related to one another. Internal strategies are aimed at adapting and changing the organisation to fit the environment. The other feature is the level of stability. ‘configurational approach’ has emerged to deal with this inadequacy in the contingent perspective. If is therefore. necessary to study how the variables impact on one another and how these relationships affect structure. the environment is unstable. This cluster of attributes is called a ‘configuration’. Over the years. size and structure. the environment is simple. There are 7 strategies identified: • • • • Internal Strategy: • • Domain choice • Recruitment • Buffing . Scholars say that it considers only two variables at a time: strategy and structure. technology. then the environment is stable.
management systems suited only for their specific niche. There may be legal and financial barriers to entry and exit from current market or industries. etc. systems. Each population occupies an ecological niche in the environment. The environment consists of different niches. Selection: refers to the process through which the environment selects those organisations that have the required features – some are selected out or die.Environmental scanning Geographical dispersion External Strategy: • • • • • Smoothing • Rationing Are meant to alter the environment to fit the organisation. textile firms. 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. it is more useful to study a population of organisations rather than a single organisation. • Therefore. . Retention: constitutes those processes that help organisations retain the features that are required by the environment. The niche provides the resources for the organisations. patterns of behaviours. Organisational assets may be specific to its current tasks. Some of the reasons can be: − − − − • Organisational leaders may have incomplete information about the environment. skills and culture. 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. Populations means organisations which are similar – restaurants. • A major criticism against this perspective is that it does not provide any positive role for managers. fail to survive. There may be political resistance to change inside the organisation. two wheeler manufacturers. Organisations survive in their niches by developing distinctive capabilities such as skills. Those organisations that lack these capabilities are unable to get the required sources and therefore. some organisations die and a few others are born into the population. Consequently.
• • • • • • 15)Understanding the change Process: • • A manager frequently grapples with change. They are also called as ‘symbolic elements’. Norms. lawful and proper. values and culture of the environment in which they operate affect organisations. Processes? • • • Models are useful and less complex than theories and offer practical advice. Why? How? Are there different types? Which is better? Organisational levels? Limitations? Messy & Painful? Our knowledge is fragmented. Organisational theories: − Results of the work of scholars and academics. Semi-theoretical and semi-practical. . 2 types of change models: Descriptive & Prescriptive. Organisations that conform to the norms and standards are considered as legitimate. − No single. Prescriptive – lay down guidelines for bringing about effective change in organisations.e) Institutional Perspective: • Social norms. They help organisations to change rather than learning about change. Organisational Change Tools: − Special tools and techniques intended to bring about specific types of changes in organisations. Descriptive – informs us the way in which organisations change. Organisational Change Models: − − − − − − Work of academics. but tend to be general rather than specific. values and culture make up the institutional norms. consultants and practitioners. − They only study organisational changes than change organisations. Such organisations are able to obtain the necessary resources. unified and coherent theory. 3 separate areas of management dealing with change. Organisations that lack legitimacy have difficulty in getting the requisite resources. Organisations change their structures and strategies not to improve performance but to conform to the norms and standards of the institutional environment.
Right Values Management of change Right knowledge Right action Three components of Productive Change • • We have to distinguish between two types of organisational change.• • If we want to change effectively we must integrate theory and practice. structure and people management. marketing. These are strategy. Organisation levers of change − − − − − − • • • • What to change – is content of change. One type includes all the changes that take place inside an organisation – computerization. In order to bring about changes in these organisations need to change three other aspects. right knowledge and right action that leads to productive change. etc. new inventory control. A model of change levers is indicated below: Marketing Technology Managing People Quality Costs . quality and costs. Another type refers to the organisation as a whole. How to change – is process of change. Four areas which constitute the content of change – technology. The above is ‘intro organisational’ change. This is truly ‘organisational’ Organisational change includes intro organisational. It is the combination of right values.
so that managers can be educated to be aware of this and equipped to manage this reaction. 5 Generating an acceptance that this type of change will require a long time to implement fully even though there may be short-term. Such changes are generally met with resistance and require careful implementation to overcome the fear. 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. their emotional and personal relationships are involved. Top down is perceived as imposed and controlled. 9 Facilitating the change process with necessary resources. while bottom up is participative.16)Leading the Change Process: • • Implementation of strategic change is likely to be problematic. mistakes and subsequent learning. 2 Producing a written statement about the future direction of the organisation that makes clear its new objectives. ‘BECKHARD’ suggests 10 organisation prerequisites which must exist before transformational change can be achieved. Such negative action will generate resistance and reduce necessary risk-taking behaviour. 7 Educating participants about the need for change and training them with the necessary competence to be effective. 8 Persevering with the change process and avoiding blame where an attempt to implement a fact of this process fails. dramatic changes as part of the overall process of transformation. Since this involves people. 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. bottom up is incremental. 6 Recognising that resistance to change is a part of the normal process of adaptation. values and policies. 3 Creating a shared awareness of conditions to produce a common perception that change must be implemented. Changes are perceived as ‘deviant or normal’ and ‘threatening or desirable’ ‘Deviants’ are those which are imposed or outside the prevailing cultural norms. • • • • • • • . Changes are implemented ‘top down’ or ‘bottom up’ approach Top down is transformational. to overcome resistance and gain commitment. 10 Maintaining open communication about progress.
The features are: − Specific HR outcomes or desired employee behaviour has to be adapted to achieve the desired corporate strategy. personnel and structural. • • • The 3 key levers are: cultural. idealistic situation. A fantastic. These 3 contribute to the employees’ behaviour. Used for both top down and bottom up approaches. In strategic HRM. • • 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. 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) 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. but difficult to achieve. the HR philosophy has to be integrated with the line manager. Line Managers: • • . − Seeing the people of the organisation as a ‘strategic resource’ for achieving ‘competitive advantage’ • Mabey & Salaman model has an ‘open’ approach to HR strategies.
As shown in the open HRM approach sketch. structural and cultural strategies. The HR specialist.• Line managers better. the HR specialist has a ‘change maker’ role. Human Resource Specialists: • Increasing importance to the line manager does not signal the death of HR specialist. Secures the resources necessary for change programmes. 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. − − − − Communicate plans to their workforce Explain their relevance vis-à-vis strategy. The external consultant provides the off the shelf recipe for the client. Recommends course of actions Diagnoses the problems Helps managers to implement change measures. Sells the ideas of HRM changes to other managers. Operate personnel procedures. external consultants may also be called upon. − − − − − • • Has a close awareness of the organisation’s operating environment and business plans. • • • • • • . Devises the personnel strategies for the best HR outcomes. Integrates personnel. Consultant has to be involved from the beginning to the implementation and stabilization stages.
Two terms are key to the concept of culture History – cultural heritage of a society are passed on from generation to generation. freedom and independence that individuals have 2. Individual Initiative: • The degree of responsibility. innovative and risk seeking. Risk Tolerance: • The degree to which employees are encouraged to be aggressive. Shared phenomenon – is basic to culture and implies that the cultural ethos is shared among the members of the society. 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. Direction: • The degree to which the organisation creates clear objectives and performance expectations. .III MBA – CHANGE & KNOWLEDGE MANAGEMENT CHANGE MANAGEMENT MODULE 3 – ORGANISATIONAL CULTURE CHANGE A. 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.
• When these characteristics are mixed and meshed. Reward System: • The degree to which reward allocations are based on employee performance criteria in contrast to seniority. 5. A Humanistic – Helpful Culture: Organisations are managed in a participative.4. . 7. Conformity and adherence are valued. 3. we get the essence of culture. 8. 2. Control: • The number of rules and regulations and the amount of direct supervision that is used to oversee and control employee behaviour. B. Twelve Types of Corporate Culture: Furnham & Günter in their book ‘Corporate Assessment’ (1993) classified corporate culture as follows: 1. A Conventional Culture: These are conservative bureaucratic and traditional organisations. favouritism and so on. 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. conflict avoidance dominate this type of organisations. Management Support: • The degree to which managers provide clear communication. consensus seeking. 4. An Affiliative Culture: Interpersonal relationships are given high priority. 10. Communication Patterns: • The degree to which organisational communications are restricted to the formal hierarchy of authority. An Approval Culture: Agreement. consultative and mutually supportive manner. 6. Conflict Tolerance: • The degree to which employees are encouraged to air their conflicts and criticism openly. 9. Integration: • The degree to which units within the organisation are encouraged to operate in a coordinated manner. assistance and support to their subordinates.
is worth running some risks for.5. A Self Actualisation Culture: Creativity. hierarchical orientation. 4. Egs: Motorola. money. 10. An Avoidance Culture: Punishing mistakes and no reward to good work characterise this type of organisations. research and development.Bate in 1995. 9. hard work are valued here and avoiding mistakes is the hallmark of this type. members criticize each others decisions. quality emphasis behaviour is valued in this culture. 5. An Achievement Culture: It is characterised by success. obtaining patents. is workable. 11. and is worth the investment of time. o The classifications below help practitioners to gain a broad perspective of approaches that are available to them. A Dependent Culture: Centralisation. 7. That is. formal roles and seeking instructions from seniors all the time for all the activities are the traits of this culture. The founder brings in one or more other key people and creates a core group that shares a common vision with the founder. building and so on. An Oppositional Culture: Awarding negativism and being critical is the virtue in these organisations. A single person (founder) has an idea for a new enterprise. At this point. 2. C. A Competitive Culture: Employees are rewards and for exceeding targets. A Power Culture: Using positional power. arbitrariness and subjectivity prevail in the organisations of this culture. 3. perfection. locating space. A Perfectionist Culture: Perseverance. The founding core group begins to act in concert to create an organisation by raising funds. 6. 8. o This gap is due to the excessive attention paid on cultural plans and inadequate considerations of approach strategy. all in this core group believe that the idea is a good one. outperforming others and this culture promotes win-lose situations. others are brought into the organisation. achieving targets and accomplishing their own goals and pursuing standards of excellence 12. How Organisational Culture Starts: 1. o The delivered results are frustratingly disproportionate to the efforts and costs incurred. and a common history begins to be built. Wal-Mart D. o Managers should know that many times the gap between plans and implementation of culture is wide. Here. . o HR managers should advocate a suitable approach for implementation of cultural change based on the type of cultural change planned and organisational environment. McDonald’s. and energy that will be required. incorporating. Four Practical Approaches to Cultural Change: Book Titled ‘Strategies for Cultural Change’ by S.
Aggressive • • • • • Characteristics Rapid change Dismantles traditional values New culture is noncomplex Top down monitored Detailed plans/actions Reasonable. quiet Slow change over to new values Deals with means. Indoctrinative • E. not ends Collusion. Conciliative • • • • • • • • • • 3. not confrontation. Does not succeed in bringing about fundamental cultural change. 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. technical level • Is used to defined existing order and oppose change initiations. Corrosive • • • • • • • • • • • Lead to genuine and large scale change initiated by small scale network Lead to wide scale changes at an informational. legitimize later Planned and programmed Explicit learning process Socializing Unified. logical network Advocates one world view • It Can Lead to a strong integrated culture. 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 . Gets seduced back to status quo • 2. Loses sight of its radical intent. Continuous development Based on power and control Uses informal network Unseen manipulation High participation Act first. 4. breadth of support leads to crisis of change.o The approaches: Appr oach 1.
8. 7. through direction and training. Guidelines for minimizing such tensions would be: • • • • Setting realistic values for culture change.• • • 2 Managers seeking to create culture change must intervene at these points 1 – The first thing to change is people’s behaviour. Defense resistance. Guidelines/Checklists for cultural change: 1. 2 – Indicates the cultural justification for the behaviour of the organisation’s members. 6. resulting in ethical and legal problems for individual members. Develop ethical and legal sensitivity. 9. Make changes from top down. Promoting performers. 5. Involve employees in the change process. build momentum in terms of initial success. A positive and competitive tension is to be nurtured among department. Take a close look at the inner functioning of the organisation and determine if cultural change is necessary. activities and behaviours. Educating managers about the legal and ethical pit falls inherent in culture change. Providing mechanisms for member dissent and diversity. Monitor the progress from time to time. 5 – The way to reinforce a culture is to remove those organisational members whose behaviour deviates from the cultural values of the organisation. Culture change can ignite tensions between organisational and individual interests. expect certain casualties to occur – some employees may leave the organisation and a few set backs may occur to the change effort. 3. Communicate the change translated into goals. Formulate a clear picture of the firm’s new strategy and of the shared values. 10. demoting laggards and terminating undisciplined people lead to ethical and legal problems. 4 – This step impacts the culture by hiring and socialization of members who match the culture. . new stories and new heroes are needed to be widely and consistently communicated. sub-goals. 11. Despite this. Identify aspects of the current culture that could still be valid and other aspects that need to be modified or changed. Such removal reduces the variances in behaviour and sends to those in the organisation powerful signals relating to appropriate behaviour. 2. • • • • F. 3 – New rituals. 4. The top management commitment must be seen and felt. Identify the depth of culture change needed. Check on the leadership and support processes to overcome anxiety among managers in giving up their earlier responses. norms and behaviours needed to make it work. Not promising what the organisations can not deliver.
industry. o Symbolic: • • Management actions are even more important to watchful employees. And elements consistent with each other. nature of competition and other factors of environment. Management’s sayings have powerful influence on employees. • Culture depends upon the organisation’s goals. They must fit together like pieces of puzzle. Integrated: • Cultures will be more easily recognised when their elements are generally integrated. o Subculture: • A culture in an organisation may be made up of various subcultures. 1.• Helping them develop guidelines for resolving such issues. o Implicit: • Culture should be an increasingly acceptable conversation topic among employees. if not embrace the assumptions and values of culture. 10 Characteristics of Organisational Cultures: 1. o A reflection of Top Management: • • Cultures evolve from top management. • • o Stable: • Culture should not keep on changing frequently. Employees quickly detect manager’s lip service. o Cultures of varying strength: • • Can be characterised as relatively strong or weak. o Accepted: • Most members must at least accept. G. Distinctive: There is no best culture for all times. Depends on the degree of impact on employee behaviour o No one type is the best: .
Organisational Socialisation: • • All cultural communications are put under this umbrella. Stories convey how in the past problems have been solved. entertain and also teach valuable lessons. Organisational socialization is like placing an organisation’s finger prints on people by planting its own genetic code on them For employees. thoughts and behaviour of employees. • • • • • 2. It also builds organisational identity. • • • • • • • • . Stories convey a sense of tradition. Good stories tap into the emotions of audience. it is the essential process of learning the ropes to survive and prosper within the firm. Consists of both formal and informal methods. Socialization is functional for both workers and their employers. They prove to be powerful ways to create shared meaning and purpose. They enhance cohesion around key values. Publicly recognising heroes and heroines.H. They must be able to communicate to the employees. Memorable stories uplift people. Retelling historical success stories. Communicating and changing culture: • • • Organisations have to consciously create and manage their cultures. Story telling is a key means of achieving socialization of employees. These approaches help to shape the attitudes. Is a continuous process of transmitting key elements of an organisation’s culture to employees. Story Telling: • Managers are encouraged to engage in story telling as a way to forge a culture. such as a manager’s error and an executive’s forgiveness. • Unintentional communication of organisation’s culture to employees. Codes of ethical conduct. 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. 1.
Deviation from norms) High Rebellion Creative individualism • • The two extremes rebellion and conformity may prove dysfunctional to the organisation.3. question and experiment while also not being too disruptive. • • 4. Individualization: • Occurs when employees successfully exert influence on the social system around them at work by challenging the culture or deviating from it. Isolation is not productive. Culture Change Methods & effectiveness: Probable Effectiveness Culture Change Method Very Great Great Moderate Minimal . 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. When we assume that the culture of a certain organisation invites its employees to challenge. them creative individualization can infuse new life and ideas for the organisation’s benefit.
1. senior management must understand the implications of the new culture for their own practices. prevent its change. 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. It can be realigned to the strategic direction on organisation wishes to take. artifacts and declared values and be involved in all the main change phases. Culture can be altered. h) Identify the gap between actual and desired culture and take steps to move the actual culture to the desired culture. or destroy the culture. cultures. patterns of behaviour within the organisations and strategic directions of the organisation. g) Work out a desired strategy and desired culture and ensure they match and congruent. abandon the culture. The reality of achieving this is very complex and organisations with similar backgrounds and similar environments develop different cultures at different situations. • • Prior to any culture change. change culture. continuously developing phenomenon Managers can manage culture. 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. Culture is a dynamic. Adequate resources need to be allocated to support culture change and maintain it. Top down and bottom up are two of the approaches by HRM for change of culture. 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 . once it has been achieved. it can be managed.
selection and retention. Top Down Strategy for cultural change: • • • • Often called ‘programmatic change’ Typically initiated and led from the top. excellence. Writes on corporate excellence follow this. provision of educations and training. Such changes are tied to an organisation’s critical path Based on solving concrete business problems. HRD programmes like quality. organisations need to decide how practices or procedures will be amended to support the new espoused values and contradictory practices removed. o Employee believes the new culture conflicts with their existing culture. it is crucial that employees have the necessary capabilities and behaviours to realize the necessary change. reinforce the existing culture to achieve the newly espoused cultures and values. Top-down draw backs: o Messages of initiative. performance related pay are a few HR interventions for change of culture. Bottom up approach for cultural change: • • • • • Focuses on incremental approach Change is developed from bottom up. and focusing on existing values and cultures. procedures and structures support them Spread the changes out to other areas of .• Culture change programs must take into account an organisation’s existing practices and approaches in recruitment. performance management and employee relations. Every opportunity should be taken to close the cultural gaps. Typically looks towards organisation-wide consensus. 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.. Change of organisation structure. empowerment. To succeed. training. In order to create a change in culture. etc. management of office space. autonomy and innovation are usually conveyed through bureaucratic methods such as team briefings. • • 2. • • • 3.
3 Work towards common agreements of the vision and skills and actions to carry it forward
Work jointly to develop a vision for the future of the organisation START
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
Development component (process)
The ability of the culture change approach adopted to adjust to changing organisational and wider environmental circumstances.
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.
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:
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.
• • • • • • • • b) Legal & Ethical Conditions: • • • Countries around the world vary substantially in their legal systems. o Subordination of employers and labour to an authoritarian state. Needed skills must be imported temporarily from other countries. A major issue affecting multinational corporations has been how to deal with contrasting local practices. • • • • c) Political Conditions: • The following have a significant effect on organisational behaviour: o Instability of the government o Nationalistic drives – foreigners cornered. These deficiencies limit the ability to employ local labour productively. d) Economic Conditions: • The most significant economic conditions in less developed nations are: . Parallely vast training programs begin to prepare the local workforce. Loaned skilled people develop others. scientists and technicians. A significant social condition in many countries is that the local culture is not familiar with the advanced technology or complex organisations. Managers need to be aware of the possible differences in both laws and ethical values that define acceptable and unacceptable behaviours in foreign countries. Their employment practices and their business practices vary. Managers in foreign countries need to become familiar with local customs and practices. 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. Another social factor on which countries are often compared is the work ethic of their employees – long/short hours. customs and behaviours. and those trained locals become the nucleus for developing still more people. 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.• There are major shortages of managerial personnel.
Looking at social. Tremendous disparity in distribution of wealth starts. stories and symbols. Then. They represent a critical environmental condition to which the managers of international operations must adapt. security and trained human resources that developing countries require to be more productive. Cultural norms: • . norms and values are passed on to future generations through cultural rituals. Behaviour in organisational settings varies across cultures. some workers passively accept the situation. political and economic conditions as a whole. Money loses its value rapidly. − Rapid inflation. ethical. Instead they are too well established and woven into the whole social fabric of the nation. vary across cultures. bad condition causes hurdle in the introduction of advanced technology and sophisticated organisation systems. • • • These beliefs. Culture may be understood as the all encompassing: o Shared beliefs o Norms o Values that guide the everyday life of individuals. They constrain the stability. − Unequal distribution of wealth • Rapid population increases coupled with a lack of national economic growth make it unlikely that family incomes will progress significantly. legal. Human resource practices too. social unrest increases. • • • • • • • • • • • e) Culture & Behaviours: • • • • Culture determines behaviours. But culture is the determining factor.− Low per capita income. others aggressively protest. These limiting conditions cannot be changed rapidly. Differing standards of living and varied geographical conditions can also cause variations in behaviour. As a result natives of those countries may not believe that additional effort on their part will earn associated rewards. Inflation makes the economic life of workers insecure. All these factors make it difficult to motivate employees.
In more egalitarian culture (like US. Italy. Hofstede’s Cultural Dimensions: • A pioneering work done by Dutch Scientist Geert Hofsteds. people expect reward and compensation for their performance rather than for their seniority. Cultural values of the society define the meaning and reason of business and how it is organised. • K. Japan. Germany. Stories and rituals: − It is important to communicate the norms. • Cultural Symbols. People also expect recognition for seniority and age in hierarchical culture. Japanese find a higher value in belongingness in a group. . 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. values and beliefs of a society to its members. o They tell us what we can do and what we cannot. stories and rituals. Cultural clusters do have some differences but similarities are predominant. etc) the meaning and value of a job lies more in the status than in the pay packet. Spain. f) Culture Clusters: • • Countries that share cultural similarities form cultural clusters. dividends and stock prices while Japanese companies focus more on new product development and market share. elitism and concern for form. Latin American countries Sometimes cultural differences have a direct impact on the strategic orientation of companies like USA companies emphasize on more profits. − Culture is passed on from one generation to another through its symbols. • Cultural Values: − − − − − − − − − − Tell us what is most dear to our hearts.o Prescribe behaviours and practices. − Culture is continuously reinforced when people see symbols. Culture not only influences behaviour and human resources but also life style like elegance. In many hierarchical cultures (like India. cultural values of the society define the meaning and reason of business and how it is organised – high profits are not a criterion – Arabs. etc). Americans for example value freedom most. In many cultures. Arab culture concentrates on their own family security and relying on god for destiny. International business utilizes the culture clustering approach in formulating their global strategies. hear stories and engage in rituals.
and must supervise their subordinates closely. Managers believe that they must be authoritarian. Everyone has a place.• He identified four cultural dimensions around which countries have been clustered with people in each group exhibiting identical behaviours. Such structures encourage and promote inequality between people at different levels. • • High power distance countries have norms. Canada. 1) Power Distance: • • Power distance is the extent to which less powerful members of countries companies and organisations accept that power is distributed unequally. Have flatter organisation structures Have smaller proportion of supervisory personnel Have highly qualified people in the lower state of workforce. Those at the top make most of the decisions. . Most people should be dependent on a leader. Norway. must force workers to perform. represent cultures with lower distance. • In high power distance countries: − − − − − − Decision make is centralised. Managers believe that they must adopt theory X leadership style. some are high. values and beliefs such as: − − − − − Inequality is fundamentally good. Germany. Countries in which people blindly obey the orders of superiors have high power distance. some are low. Australia. Organisations tend have tall structures. The 4 dimensions are: Power Distance. 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. • USA. They will have a large proportion of supervisory personnel People at low level have low of job qualifications. The powerful are entitled to privileges. etc. Individualism and Masculinity/Feminity.. • Organisations in low distance countries: − − − − Tend to be decentralized. Uncertainty avoidance.
Laws are very important and should be followed. Collectivism is the tendency of people to belong to groups and to look after each in exchange for loyalty. values and beliefs which accept that: − − − − − Conflict should be avoided. • Countries with high uncertainty avoidance culture have: − − − − − A great deal of structuring of organisational activities.• France. 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. Low labour turnover Less ambitious employees • Societies with low uncertainty avoidance cultures have: − − − − − − Less structuring of activities. • • High uncertainty avoidance countries are characterized by norms. India. Brazil. These employees have a high level of uncertainty avoidance and prefer to avoid ambiguity at work. and Consensus is important. 3) Individualism/Collectivism: • Individualism is the tendency of people to look after themselves and their family only. 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. • . Experts and authorities are usually correct. Mexico and Indonesia are examples of societies with a high power distance. Less risk taking managers. More written rules. Deviant people and idea should not be tolerated.
Highly masculine cultures have norms. Australia. India. Men usually choose jobs that are associated with long term careers. Group decision making is best. Men are assertive and dominant. and Groups protect individuals in exchange for their loyalty to the group. values. money. before marriage. Important decisions are made by older senior managers. People. success and money are important. Promotions are based on one’s performance Decision making is an individual’s responsibility. • • • • • In highly masculine societies. should be decisive. • Collectivist countries believe. Denmark & Sweden. that: − − − One’s identity is based on one’s group membership. Countries high on individualism have norms. People of Indonesia. jobs are clearly defined by gender. . and Advancement. Machismo or exaggerated maleness is good. such as family. There are men’s jobs and women’s jobs. and beliefs which accept that: − − − • People are responsible for themselves. Women usually choose jobs that are associated with short term employment. 4) Masculinity/Feminity: • Masculinity refers to a situation in which the dominant values in a society are success. especially men. • In a collectivist organisation: − − − Tend to promote nepotism in selecting managers. • In a individualistic organisation: − − − Favouritism shown to friends and relatives is considered to be unfair and even illegal. Individual achievement is ideal and People need not be emotionally dependent on organisations or groups. Promotions are mostly based on seniority and age. values and beliefs that: − − − − − − Gender roles should be clearly distinguished. Canada. Work takes priority over other duties. Pakistan and a number of South American countries exhibit collectivism. and other material things.• • Individualism is common in US.
Cultural Adjustment: • The process of cultural adjustment is a critical determinant of an expatriate’s performance. There can be an upswing of mood upon arrival in the ‘assignment’ country that produces a ‘honeymoon’ phase. The concept of an adjustment cycle or U curve shows that typical phases that may be encountered during cultural adjustment. 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 haunting thought. Adjustments to a foreign culture are multifaceted. ‘failure as an early recall’ may be triggered at this point. Then novelty fades off. and individuals vary in terms of their reactions and copying behaviours. Phase 1: • The expatriate may experience a range of positive and negative emotions such as excitement anxiety. • . • • • Phase 2: • • This is a very critical time.L. fear of the unknown. realities of everyday life in an alien land starts. A slow negative appraisals of location and situation leads to a crisis. sense of adventure and so on. The way the expatriate copes with the psychological adjustment at this phase has an important outcome in terms of success or failure.
Culture shock is a natural response to the stress of immersing oneself in the new environment. time. there is an upswing The person begins to adjust to the new environment. not everyone is motivated by the same factors. 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. which is the expatriate’s reaction to a new. Cultural Contracts in motivation – Motivation Across Cultures: • • What are the motivations of people in international settings? In multicultural work environments. The table below shows the motivational approaches and cultural factors for three distinct cultures. family affair. parenthood Of others/ parenthood • • Independence decision making space. functional group activities Group harmony Arab Coaching. money Opportunity Group participation Religion.Phase 3: • Once the individual passes this crisis point. • • Phase 4: • • • The upswing levels off after sometime. approaches. Gift for self/family. company success nationalistic. A healthy recovery is maintained The bottom of the U-shaped curve is marked by ‘culture shock’. personal attention. Then. he comes in terms with the demands of the new environment. commission Annual bonus. salary fringe benefits increase Loss of job Out of group Demotion . Factor American Management Leadership styles friendliness Control Emotional appeal Recognition Material awards Threats Japanese Persuasion. Motivational processes. admiration Individual Group identity Individual status contribution belonging to group class/society promotion Salary. unpredictable and uncertain environment. profit sharing social services. and applications reflect the culture of the country directly or indirectly.
Such responses are required while dealing with contingency factors such as subordinates’ characteristics. a realistic self assessment and a self deprecating humour. comfort with ambiguity and openness to change. show cross cultural sensitivity and become known for offering great services to clients and customers. An international manager emotional intelligence. • • . security. integrity. motivation. material achievements. Motivation: is reflected in a passion to work for reasons that go beyond money or status. Self regulation: is the ability to control redirect disruptive impulses and moods – the ability to think before doing. they are: self awareness. Leaders with a high level of empathy demonstrates an ability to build and retain talent in their organisation. Social skill: refers to the proficiency in managing relationships and building networks along with an ability to find common ground and to build rapport. Leaders with a high level of self-awareness exhibits self confidence. freedom belonging social status N. emotions and drives as well as their effects on other people. Reputation. show a superior ability to build and lead teams and become known for their persuasiveness. • • Self awareness: is the ability to recognise and understand one’s moods. drive to achieve and optimism. risk Group harmony.Cultural values Competition. organisational • • • • • • Empathy: refers to understanding the emotional make up of other people and skill in treating people according to their emotional reactions. Leaders with a high level of self regulation exhibit trustworthiness. a) EI has a set of 5 individual and social competencies. the leadership needs to be situational. Leaders high on motivation exhibit remarkable commitment. • • • b) Leadership in the National Context: • • In international settings. religion possession. Successful leadership in multinational companies requires that managers adjust their leadership styles to fit the different situations. Also in response to the cultural and institutional context of the multinational country locations. Leaders with a high level of social skill are effective at leading change. Leadership Across Cultures: • A multinational leader needs to possess certain unique qualities to become successful in global settings. self regulation. empathy and social skills. family taking.
whether or not effective leaders act similarly regardless of their respective culture. This means. Helps subordinates envision a future state of a better organisation. • • . Or a cultural context so that subordinates see the need to follow the leader’s ideals. Subordinates share a commitment to radical change. 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. Breaks from the status quo: • • • Has a strong desire to break from tradition An expert in finding ways to do things differently. 4. T Leaders are visionary agents with a sense of mission. The transformational leader has following attributes: 1. Gives a meaning or a purpose to goals: • • Places the goals in emotion – laden stories. TL is effective in any organisation anywhere in the world. • • 2. They are capable of motivating their followers to accept new goals and new ways of doing things. Provides clear steps for followers to transform the company. Transformational leadership is projected as an approach which can cut across all cultural barriers. TL represents a higher level of leadership. Provides goals and a plan: • • Has a vision that is future oriented. Universalism in Leadership/Transformational Leadership: • • Universalism of leadership is a new concept.O. 3.
However. Demonstrates high ethical and moral standards: • • • Behaves consistently and fairly with a known ethical standard. a German sociologist recognised the existence of this leadership throughout history. Takes risks: • Is willing to take more risks with the organisation than the average leader. reverence. respect and admiration of followers. Tend to rely on written rules and documents. 6. Low-context cultures such as Germany. • • • • • • P. Displays strong enthusiasm for the leadership role. Jesus Christ. Max Weba. personal devotion. and a willingness to sacrifice for the good of the company. Acts as a role model 7. Transformational leaders are not new to the present century. Conduct business first and value expertise and performance Lack of attention to these factors results in costly failures for expatriates. Korea and Japan tend to emphasize personal relationships. • • • • • . Muhammad were among the first transformational leaders. USA and Scandinavian countries. Is motivated to lead: • • • Seeks leadership positions. Individual differences (also refer Hofstede’s theory given earlier) • High context cultures such as China. He called this leadership as ‘Charisma’ And noted that existed in all cultures. focus on non verbal cues. place high value on trust. Impress upon the need to attend to social needs before business matters. Barriers to Cultural Adaptation: 1. 8. He said. Builds a Power Base: • Uses personal power based on expertise. Transformational leaders succeed because subordinates respond to them with high levels of performance. Most people also consider MK Gandhi & Martin Luther King as representatives of transformational leadership. excitement regarding the leader’s ideas.5. true transformational leaders are rare.
They fail to recognise the key differences between their own and other’s cultures. In effect they are assuming that the two cultures are more similar than they actually are. • • • • • • • 3. • • • 4. Ethnocentrism: • Another potential barrier to easy adaptation to another culture occurs when people are predisposed to believe that their homeland conditions are the best. expatriate employees minimally need to develop ‘cultural empathy’ This is the awareness of differences across cultures. 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. Many are predisposed to parochialism. This new social system affects the responses of all persons involved. Even if they do.2. This is the understanding of the ways in which those differences can affect business relationships. Further productivity from local employees is also reduced. they tend to conclude that the impact of those differences is insignificant. This predisposition ‘ethnocentrism’ is known as the ‘self-reference criterion’ or • • • • It interferes with the understanding of human behaviours in other cultures. They see the situations around them from their own perspective. Managers and employees who come to a host country exhibit a variety of behaviours true to the citizens of their homeland. This is an appreciation of the contribution each culture make to overall success. . In order to integrate the imported and local systems. 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.
Second phase: positive attitude is soon followed by. Although it is different. they accept the new culture. it can be understood if employees have receptive attitudes. Cultural distance affects the responses of all people to business related issues. First phase: they are excited and stimulated by the challenge of a new job. insecurity and anxiety caused by a strong new environment? They fail to act properly and lose their self-confidence. may fear losing face and self confidence. home and culture. shopping or language skills. They may not know how to act. Fourth phase: if they survive the first few weeks. the new environment can appear to be chaotic and somewhat overwhelming. Such shock is even greater when an employee moves from one nation to another. tend to suffer cultural shock. The employees who move to new job locations of the experience various degrees of ‘cultural shock’ Which is a feeling of confusion. 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. or emotionally upset. • • • • • • • • • • • • • • • • • . regain a sense of self esteem and respond constructively to their new surroundings at work and home. which is ‘insecurity and disorientation’ caused by encountering all sorts of different cultures. The new environment may be as systematic as the culture of the employee. ‘disillusionment’ as they discover various problems they had not anticipated regarding travel. At this point. • • 5. Such shocks are in four phases. Cultural Shock: • Companies often assign employees to new job assignments in different areas to provide them with invaluable breadth of experience.• Cultural distance is the amount of difference between any two social systems and may vary from minimal to maximal. For unprepared employee. Third phase: critical stage. They should dedicate themselves to learn the new culture and adapt to it. they will reach the fourth phase. Cultural shock is even greater when an employee moves from one nation to another. that of ‘adaptation’. Ethnocentric problems may be magnified by cultural distances.
Pre-departure Training: . Argentina. Denmark Latin European – Portugal. Overcoming Barriers to cultural Adaptation: 1. Spain. Venezuela Pacific Rim Cluster – Japan. Different management philosophies. Belgium Latin American – Peru. Compatible Assignments: • Adjustments to new surroundings is easier if employees. are sent to nations that are similar to their own. New food Separation from friends and relatives. Brazil & India do not fall into any group • 3. especially on their first international assignments. UK. France. Austria. These are grouped into 6 socio cultural clusters: − − − − − − − Anglo American – USA. Switzerland. may be chosen They should have a desire to experience another culture. Australia. Canada. Korea Central European Group – Germany. Forms of country Customs Housing conditions Privacy Time Activity HR Practices Currency Work attitudes Strange language. Israel. China. Potential employees should have a capability to learn the new language quickly. An attitude to learn the new culture and the family culture is necessary. They should have a desire to live in another nation.• • Cultural shock is virtually universal. Careful Selection: • • • • • Employees who are low in ethnocentrism and Who are less prone to troublesome characteristics. Finland. etc. NZ Nordic group – Norway. Mexico. Taiwan. Q. Chile. • 2. It occurs in response to: − − − − − − − − − − − − − − Dramatic differences in languages. Hong Kong. Italy. Sweden.
fringe benefits. Preparation for Reentry: • • Repatriation has to be smoothly blended. transportation and shopping. culture. separation from relatives and friends. better positions. • • • Forces inhibiting and supporting cultural adaptation: Inhibiting Forces Supporting Forces . Creates better impression. Training includes – geography. customs. Companies need repatriation policies. power in host country best less in home country. insecurities. coming back to their homeland culture – needs time to adjust. Extra pay. Better autonomy emoluments. Support for intensified need deficiencies like financial difficulties. lesser misunderstanding. Orientation & Support in the New Country: • • • • • • Efforts to quickly settle the employee and family. The previous job holder may also stay back for sometime and assist. position. Often tend to suffer cultural shock in their own homeland – reverse cultural shock. A mentor may help a lot during transition. personal and organisational costs. language and political environments. Faster cultural adaptation. 4. The local national working for the same organisation can also assist. inconveniences. • 5. After enjoying a new culture. Assistance in housing. Better communications.• • • • • • Learn the local language Helps to reduce.
Cross Cultural Communications: • • • Besides verbal 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. non verbal communications are also important. Non-verbal communication is called as cross cultural communications.
Change is intensely personal. DEALING WITH INDIVIDUALS: • The strategy for change are implemented through three change levers. we need to understand what factors make him prone to it and what prompts him to resist it. both Change is resisted as much as stagnation is Continuity without change leads to stagnation. and − Tuning the organisation to change. means learning new skills. feel or do something different. Change that is internal to an individual is far better accepted than change externally imposed. Hence it is difficult to impose change.III MBA – CHANGE & KNOWLEDGE MANAGEMENT MODULE 4 – CHANGE MANAGEMENT G. Fundamental requirement for effecting change management is the understanding of: − The nature of human response to change − Overcoming individual and group resistance to change. Managing change. These emotions can vary from being intensely negative to being appreciably positive. Change is always a threat when done to people. therefore. conflict and the inability to cope with the situation. and new routines. and acquiring new relationships. but an opportunity when it is done by people. to be avoided or coped with Individuals may not resist change. For change to occur in any organisation. Organisations can not ignore. Individuals tend to perceive change as a discontinuity. the organisation can not change. seems to lie in making them choose it. then. What they resist is being changed. each individual must think. • • • • • • • . requires managing employee feelings to generate positive excitement for the intended change and change process. while abandoning the familiar. which are o Structure o Process o Culture • • If people within the organisation do not change. Change gives rise to emotions. deny or suppress emotions at work. a) Human Response to Change: • • • • Individuals fear and seek change. to many individuals. Change may be perceived as an opportunity or a threat. accustomed and proven ways of doing things. The strategy to make people to accept change. To make an individual choose change. boredom and frustration Change without continuity or stability leads to ambiguity. Change.
Change should not be what happens to them in the organisation but what they can make happen in the organisation. Build a positive imagery for its employees of the envisaged change to reflect a better future. individuals may even welcome change rather than resist it. behave to maximize win. It is apparent that individuals need to own their responsibilities and be clear about the results to which they are accountable. have fear of failure and feeling of incompetence. 11. When such supportive structures exist. Support the change process with adequate resources. They avoid risk. Individuals. often. and are not afraid to think and act differently to make change happen.Any change is as good as the willingness of the one affected by it. process and facilities. b) Dealing with Individuals for Change Management: • • Create a culture where employees seek change. namely: Aggressive resistance Passive resistance Neutral Campers Passive acceptance Active involvement Quitters 12. minimize loss and want to have a control in their behaviour. Employee attitudes for change: • • • • • • • • • • Individuals tend to fall into any one of the attitudinal continuums. The organisational leadership has to examine the following also during the initiation of change. Individuals can manage change well if it gives them positive emotions rather than negative emotions. The above are intrinsic to the change management process. 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 .
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. Seen as a challenge to one’s authority. personal satisfaction.• 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. May be loss of one’s authority and power. Cognitive Rigidity: vii) • • Some people do not see the need for change or may not be convinced about the arguments in favour of change. Personal Criticism: • • • iv) Change may be considered as a personal affront. . Reasons why people accept change: • • People welcome change when it benefits them. it questions one’s capabilities and performance. Challenging Authority: viii) • • Some people resist change to challenge authority. The way that change is introduced may also not be to everyone’s liking. Loss of Status and authority: v) • • Change may lead to the relegation of one’s job to lower levels in the hierarchy. Some think. monetary and other benefits. the best. 13. job nature and opportunities to contribute to and determine the change process. status and authority. Others still find the old practices that have evolved overtime. Or oppose disliked bosses who are in favour of change. The benefits could be: security.
This classifies individuals into different categories in the attitudinal continuum. systems and processes are necessary. conative and affective dimensions. Attitude consists of cognitive. we have to deal with the above components. • • • • • 16. It is the individuals who work within the structures and systems and on the tasks and processes. Individual – focused approaches to managing change: • Though appropriate structures. Dealing with individual resistance to change: • • Individuals need to be motivated to accept change.14. who make the change to happen and achieve highest levels of performance. Organisations have to deal with individual attitudes and behaviours to tap individual wisdom – their experience. A feeling of dissatisfaction to be generated with the existing state of organisation. To overcome resistance. intelligence and judgement – in managing the change. they alone are not sufficient to bring in the change. The idea that a change is good for everybody should be driven home. Cognitive refers – one’s perceptions. Surveys like questionnaires. Integration: • • A number of quantitative & qualitative techniques are available. Affective refers – one’s emotional component of likes and dislikes. • • • . beliefs and values Conative refers – one’s action tendencies. We gave to deal with an individual’s attitude to overcome his resistance to change. interviews and observation methods are useful. Creative and intellectual energies of the individuals should be diverted to the change initiatives of the organisation. • 15.
dependable. dynamic. secretive. Passive acceptance active involvement. acceptance when sensitive to failure and punishment. decisive. high sense of achievement. self-centered. predictable. forceful. resistance impulsive. trustful. poised. overly dependent. Slow. inclined to oversell. . silent. rigid. Natural. brash. cooperative. demanding. unbending. Passive resistance aloof. high fear of uncertainty and failure. indecisive. persistent. moralistic. less moralistic. retaliative. stubborn. self change is critical. patient. task-oriented. adventurous. aggressive. trustful. plays to his advantage. warm. co-operative. unable to face problems Receptive. integrative of other people’s ideas. dogmatic. self-centrical cautious. individualistic. If opposing change. formalized. systematic. resistance to argumentative. low self confidence. low conflict – tolerance level. High in change rigid. high fear of failure. predictable. unambitious. patient. respectful and fearful of authority. stable. selfreliant. respects authority. he can resist it actively. convincible. overbearing. critical. skeptical. withdrawn. shy.17. Personality types and their general response to change: Type SQUEALER BRAVADO Response Change Highly emotional. independent. short-term – perspective Behavioural Description Diplomatic. Aggressive risky. consistent. impatient. amiable. stable. Reckless. low conflict – tolerance Aggressive level. superficial. determined. but can be positive or negative depending upon his advantage. Brave. cordial. persuasive. conservative. optimistic. stubborn. social. change non-companionable. relation oriented. enthusiastic. Receptive. scheming. cold. to change defensive. self sacrificing. to ACCOMMODATOR OPPORTUNIST CONFORMIST OSTRICH VANQUISHER Initiator of change actively involved.
capable of empathy. • • • • • • 2. positive. send signals to others in terms of their fourth and commitment to the change process. To create readiness in an individual for change. This has to be done individually and in groups. original. Explaining the nature and direction of change: • • The change process has to be clear. open minded. well knit and integrated. the company strategy and its competitive advantage. problem solver. Cognitive changes tend to occur in individuals when information is presented in a logical and coherent. Core competency required and plan of action for managing change has to be clearly stated. • • Cognitive Changes: Change Mechanisms: 2. c) Managing change: The Cognitive Dimension: • One’s own perceptions. Communication: • • Effective communication is fundamental to change management. fears and expectations. Top management should be committed to the intended change. scope and expected outcomes of change.Inventive. interpersistent Active self involvement and capable of involving others in the change process. Employees have to be aware of the focus. equalitarian. opinions and beliefs often act as the precursor to one’s response to change. Responsibility of each person in relation to the company’s strategy has to be understood. his/her cognitions have to be positively influenced. self-reliant. It is important to communicate the intended change and the reasons for it in advance and as completely as possible. receptive. It is not only what managers say. • • STRATEGIST . but what and how they do. Behaviours of senior managers influence employees’ perceptions and beliefs. integrative of other people’s ideas. Such a talk gets a feedback from employees regarding their hopes. Employees cognize the explicit and implicit behaviours exhibited by senior managers. persuasive convincing. realistic.
Values agreed upon should be documented. Oral persuasive communication is carried out through speeches. they tend to form a benchmark for individuals to adopt. systems and processes. communication should lead to optimism. reliable and perhaps repeated and number of times to drive home its importance and the depth of the management’s commitment. It employees have to be attended to change. • • • • • • • • • o Employee Training: . modify and realign their personal values. precise. all our vision and mission statements are only decorative pieces in the corporate lobby. If not. These values are based on group and individual behaviours and also the work processes. Written communications are through specific written documents. Value may be generated by discussion and active employee involvement at all levels in the organisation. Values tie together people. Non routine communications are through media. These values enable and stable and trustworthy relationships. • • • • • • o Creating a Common Value Orientation: • • Values are basic to human behaviour. Once a set of values are collectively agreed upon. The messages must be credible and take a variety of forms. These values have to be shared and imbibed by all through out the organisation. 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. 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. hope and a positive outcome. 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.• Communications about change have to be clear.
Training should be run like business. ‘Vicarious learning’ – where employees observe organisations that have benefitted from implementing new or innovative techniques and practices. Training should bring forth: Inherent talents. knowledge and skills. 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. Employees should be considered as a resource. Employee training sets the supportive climate for change management when it is competency driven for the current and future demands. • • • • • • • d) Managing change: The Affective Dimension: • • Individuals fear and seek change. Knowledge provides a competitive advantage. Vicarious learning is facilitated by study/observation trips to innovative organisations and further involving employees in benchmarking their best practices. Desire to acquire information. . It prompts the people in the direction of group support and leads to acceptance of change. needing constant monitoring and reviewing. delivering value to the work process. Participation needs to be managed carefully or else it creates more problems. It provides opportunities for employees to learn by their own activities and to exercise control over the outcome. not a cost.• Competitive organisations required knowledge workers who are capable of performing jobs related to corporate goals and market needs and demands. Current skills have to be assessed and future skills needed for the business determined and the training skills decided to bridge the gap. Building effective teams takes years. organisation and employee competency. New ways of training employees aimed at thinking skills and multiskill development have to be planned. both Change affects human emotion. To be successful a climate of interpersonal trust and open communication should prevail within the organisation.
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. Dealing with human emotions could be in terms of: − Creating feeling of psychological safety about change. − Focusing on the benefits of change at the individual level. Stock ownership may be performance based. 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. 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. 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. generate productive ideas. Company shares may be given at concessional rates. it has to anticipate individual feelings about the intended change and deal with their emotions in positive and constructive ways. • • • • . − Creating positive feelings about the desired state and the change process. To be successfully implemented. • • 6. employee empowerment depends upon a number of factors. The approach promotes a binding relationship. authority and accountability at work. and feel responsible for improving organisational performance. o Commitment on the part of top management in real earnest. A personal sense of ownership motivates employees to take the initiative. − Addressing avoidance learning – focusing on intended change as the only alternative to avoid/overcome fear or insecurity. It is the integrating of ownership. Affective Changes – Change Mechanism 5. − Demonstrating some of the benefits of change early in the change process.
Types of rewards − Power rewards (higher responsibilities) − Pay for performance − Pay for knowledge and skill • 8. Employees are also given to understand how much they contribute to. how much they cost to the company. Compensation System: • Managing change through people behaviour is possible when the desired behaviour is appropriately rewarded. Organisations should create a meaningful reward system. Financial rewards and financial health are tied up. 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. Dealing with negative emotions: • Some employees may have negative emotions towards the intended change. not all rewards are same) • • • • • The major demotivators are perceived unfairness in dispensing rewards.• For success trust between the employee and management is necessary. 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. Rewards are financial and non-financial. Some of the ways to do this are: o Empathy o Modeling o Shock therapy o Mentoring o Manipulation o Employee counseling • • . • • 7.
Now. • • • • • • 2. Therefore. there is a mutuality of interest. Job activities and responsibilities have to redefine due to the change management and changes in the job design and performance. starts. Employees today should be enabled to perform a variety of tasks rather than a few limited jobs. Mutuality is the basis for the release of human energy for effective change management. Action learning is a social process. Cross training facilitates job rotation. change benefits the employee. Emphasis on action learning in implementing change: • • • Learning occurs with actions. The psychological contract has two dimensions: the personal goals of a human being and the organisational goals. constantans improves actions. solves task related problems. Cross training provides a flexible force and flexible factory. wherein an employee can switch periodically from one job to another. Such skills can come by cross training. • • • . accepts supportive criticism for improvements • • 3.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. For every employee there is a psychological contract with the organisation – may be explicit or implicit. Cross Training: • • Training is provision of information and skills. 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. Tohat are the factors for change under conation? 1. 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. Where the employee accepts his job duties and responsibilities. Clarifying Contractual Obligations: • • Change benefits the organisation. a new role relationship. too. no actions without learning.
and activities together form the organisation structure which supports the organisation. An employee’s career path need not be limited to vertical mobility. 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. 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. Cross training can be across different functional areas like finance and marketing. the way they adapt. Any kind of mental stretching should be done gradually by exposing one to changes of graded difficulties. 4. Success of cross functional training depends upon employee willingness to learn new skills on the job. o The people in the organisation structure. Employee elasticity: Stretching the Potential: • • Good HR stretch employees to the maximum of their potential ability to work.• With this the employee brings a fresh perspective to each job in addition to what has learnt already. Stretching employee potential facilitates change management. etc. It could also be diagonal. a learning environment within the organisation and the free sharing of information. 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. It also solves the shortage of manpower. there should be the necessary support structure. thus slowly stepping up one’s self confidence. modify and develop are important. • • • • 5. • • Supporting climate – learning environment: . Within the limits of ‘mental elasticity’ human capabilities at work could be stretched to the optimum to meet the global business competition. systems. Supportive climate – Organisational design: o Organisational processes. • • • • • Positive attitudes to such training is built if employees are rewarded for acquiring new skills.
• Supportive climate – information sharing: o The commonest way of bringing about change in employee attitudes and performance is through information sharing. Initially. a structure. how the company is doing. initially as strangers. − The present day business needs speed. situation is created and the group is encouraged to experiment with new individual behaviours and group interactions. They enter the group as peers. The training may vary in duration from a few weeks to few hours. unrepresentative of the group memberships and move quickly into an exploration of group processes and leadership. and any division of labour or rules of procedures. An unstructured. flexibility and innovation in all activities. o Sharing information raises the level of employee trust in the organisation. o It empowers people and performance improves. o Employees should know what the company plans are. o Team building o Self-managed teams 1) Sensitivity Training: • • • • Also called as T-group training. • • • • • . The trainer plays a relatively passive role in the training process.− Organisations should create a learning environment where people can acquire advanced knowledge and skill. away from their usual roles and responsibilities. CHANGE MANAGEMENT – DEALING WITH GROUPS: • For successful organisation change. the change management should consider individuals as well as the group in which they work. The primary target of managing change would be the group itself and the relationships among its members. whey the company needs change and what they should know additionally to perform better in the changed scenario. The major forms of group-based changes are: o Sensitivity training. the group begins without an agenda. H. T-group is an ad hoc assembly of individuals who meet together. perhaps ambiguous.
Encouraging one to try out new ways of interacting with people and receiving feedback. 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. the impact they have on others. brought together only by the common goal of learning more about themselves. the interventions through sensitivity training aims at the following: − − − − − • Understanding of one’s own behaviour and how one’s behaviour affects others. They slowly correct their faults. • Sensitivity training is good for change planning and implementation. Understanding why people behave the way they do. Teams have the following characteristics: − − − − • A reason or charter for working together. Developing increased tolerances for other people’s behaviour. . They become sensitive to the action of others. Commitment to and belief in working together. • Individuals join teams for a variety of reasons: − Out of the herd instinct. abilities of individuals are mutually supportive. • • • • • • • The trainer communicates these observations to groups. They attain increased sensitivity to their own behaviours. The trainer initially observes: − − − − • • Problems of communication Attempted seizures of power Misunderstandings Other phenomena of interpersonal life. Members gradually begin to attend to such matters themselves.• The people in each group are strangers to each other. Absence of an agenda initially creates a vacuum and often quite uncomfortable. Understanding group processes. Interdependency – where the skills. Accountability – for their performance. They become sensitive to the nature of group development. Members emerge with a restructuring of their values about people and their operations in group settings. Thus.
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. Concern for the development of individual potentialities. − Improving performance qualitatively and quantitatively. In the hope of personal gains. and Accountability – where one is accountable to superiors or the top management for achieving the goal. • 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.− − − − − − • To overcome one’s fears and insecurities. Due to a rational belief to joint effort. • The value base of team lies in: − − − − Belief in a democratic work environment. − Deciding on means and methods. From a sense of duty. From the inability to say no Teams have the advantage: − Of improving up and setting goals and priorities. 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. From group compulsion. . Promotion of scientific inquiry in addressing issues and problems. Interpersonal trust.
goals An aura of country Interactions are cautions High degree of motivation. Begin turning their attention to group’s tasks. d. These stages of team development are not rigidly followed. Jockey for position of relative control Argue about appropriate directions for the group. and values the ideas and contribution of others. − Recognizes and respects individual differences. k. − Listed to others. e. They may be observed and predicted in many settings a cross the team’s time together. d. e. j. They do represent a broad pattern. 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. b.− • Overcoming barriers to effective team functioning. Storming: • • • • • . is understanding. 3) Team Development Stages / Life Cycle of a Team: • When a member of individuals begin to work at interdependent jobs. dominance & rebellion Inflighting Listening and experimenting f. shows empathy. Members compete for status. External pressures interfere with the group. Tensions rise between the individuals. issues and characteristics as shown below: Key questions faced • • Developmental stages 1. Characteristics Members share personal information. b. Start to get to know and accept one another. i. Data flow Conflict. − Acknowledges interpersonal conflicts and deals with them positively. − Includes others in the decision making process. c. f. • • • • The stages are the result of a variety of questions. concerned and interested in others. Also referred as: Dependence Acceptance Orientation & hesitant participation Testing inclusion Also referred as Counter dependence. 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. c. An effective team member is one. h. Forming: a. a. g.
Functional roles are also smoothly exchanged as needed. a. Handles complex challenges. In flexible organisations adjournments are more frequent. c. 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. e. 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. Feedback for future teams. e. d. c. Groups norms guide individuals. Functional roles are performed. a. 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 • .• • • • • • • • • • • • • Control What do we 3. b. Group matures and learns. Tentative balance among competing forces. b. d. 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. Break up is called adjournment. • Openness. More co-operative feelings. Tasks are efficiently accomplished. 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. How will we closeness & control each cohesiveness other’s actions? • Getting organised. project teams disband sooner or later. Group may review its performance. 4) Ingredients of Effective Leadership: • • A process of dealing with members’ aspirations and expectations. d. Groups. c. Group begins moving together in co-operative fashion b. a. affection What actions will 4.
• A leader needs to exhibit greater transactional skills in the initial stages of group formation (first & second stages) Later.o Enables a leader to get a job done successfully. trust and compatibility Skills & Role Clarity: − Team members must be reasonably qualified to perform − They should have a desire to co-operate. focus attention. Super-ordinate Goal: − Team members should be oriented towards their overall task. unify efforts and stimulate more cohesive teams. Providing adequate time for meetings. Demonstrating faith in members’ capacity to achieve These steps contribute to further co-operation. − All members carry their weight. as the group matures. Team Rewards: − − − − − Stimulates teamwork Recognition or financial Most powerful if they are valued by team members. 6) Potential Team Problems: . 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. more transformational skills are required. • 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. Administered in proportion to the team performance. Encouraging members to think like a team.
direct. They are natural work groups that are given substantial autonomy. It is a belief that workers are lazy. Since team’s composition is likely to change frequently due to various reasons. teams must learn to manage their internal turnover. 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. Interpersonal trust. • • • • • Social Loafing: • When employees think that their contributions to a group cannot be measured. Participative discussions. Social loafing is based on a perception of unfair division of labour.Changing composition: • Being complex and dynamic teamwork is sensitive to all aspects of organisational environment. The combination of empowerment and training to plan. SMTs are characterised by: − − − − − − − Goal setting through team effort. Develop a plan for team turnover right from the start. Integrating new members into the team is also important. Accept the turnover and plan for it. monitor and control their own activities distinguishes these teams from many others. Individual and mutual accountability A result focused performance • • • . It is a feeling of being able to hide in a crowd and therefore not be able to be singled out for blame. • • • • 7) Self Managed work Teams (SMT or SMWT): • • • • An empowerment tool Also known as self reliant or self-directed teams. A multi-skilled workforce Shared leadership through team meetings. complied with the capability to act like manager. Too many changes and personnel transfers interfere with group relationships and prevent the growth of team work. They have wide ranging autonomy and freedom. they may lessen their output and engage in social loafing. They are asked to control specific behavioural or operational activities and produce significant results.
Inability of some employees to adapt to a team structure. − More efficient operations through the reduced number of job classifications. • SMTs have several advantages: − Improved flexibility of staff. suggestion systems Consensus decision making. − Lower absenteeism and turnover rates. 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. − Higher level of organisational commitment and job satisfaction. self managing teams. − Faster synergetic performance − Enhances individual and team capacity − Lot of scope for innovations − Pushes responsibility down to the lowest levels. − Promotes collaborative work relationships. • 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.− Active problem solving. • SMTs have the following disadvantages: − − − − Extended time to implement them High training investment Inefficiencies due to job rotation. 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. .
I. in 1978. Effective management of relationships among people of diverse backgrounds and work cultures. − Ensuring early success to generate enthusiasm and greater belief in team effort. • 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 . depends upon: − − − − Setting achievable goals Gaining commitment from team members Setting ground rules for team activities. • • • • • Most auto companies today employ ‘platform teams’ that consist of a core group of designers. RESISTANCE TO CHANGE & OVERCOMING IT: • Resistance to change consist of any employee behaviours designed to − Delay − Discredit − Prevent the implementation of work change. ‘Taurus’ team at Ford Honda. engineers and even factory workers on whom rests the total responsibility for the development and manufacture of a single product. The success of cross-functional teams. Cross-functional teams are of great assistance in designing and prototyping new models and products.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. inexpensive car.
Inequity of the people’s experience Some perceive as losers due to change. The method by which it is introduced People may resent having been ill informed. Some perceive as gainers due to change. depending upon how skillfully it is managed to minimize resistance. sometimes. set up a ‘chain reaction effect’ also. A lesson to management is: change is likely to be a success or a problem. − Do not see a personal gain for themselves. Changes. ‘Change’ does not respect blue or white collar. Second • • • • Third • • • • Their resistance will be even more intense if all the 3 reasons exist. May reject an insensitive and authoritarian approach that did not involve them in the change process May be a perception of poor timings. − People disagree with the nature of the change. some employees will try to protect themselves from its effects. . • • 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.o Required o Unintended o Large • o Imagined o Direct o Small o Intended o Indirect Regardless of the nature of change. 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. − Dislike the method used. Threats to job security. 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.
Desire to retain existing friendships. Need for security. desire for status quo. it may need to use authority. In a typical operating situation. d) Implications of Resistance: • • • • All 3 types of resistance must be anticipated and treated effectively. Extra effort to relearn Possibility of less desirable conditions. Parochial. moderate or opposition – form all people. 7. group resistances: • • • • • Political coalitions Opposing group values. such as skill downgrading. rational objections: • • • • • Time required to adjust. human – all 3 have to be faced and solved. emotional resistances: • • • • • Fear of the unknown. narrow outlook Vested interests. Questioned technical feasibilities of changes. We must recognise that authority can only be used sparingly. Then only employees will accept change co-operatively. Psychological. Technical. If authority is overused. have a positive feeling towards change and feel secure enough to tolerate other changes. If management cannot win support. Lack of trust in others. Dislike of management or other change agent. 8. logical.c) Types of Resistance: (3 types) 6. Sociological. . • • • • e) Possible benefits of resistance: • Resistance is not all bad. Low tolerance of change. it eventually becomes worthless. Economic costs of change. What is important is: create a genuine climate when people trust management. full support may not be expected all time – may be weak. Logical.
It provides an emotional release of pent-up feelings. Such a release encourage employees to think and talk more about a change so that they understand it better. 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 . • • • • Change is necessary in a competitive environment.• • It can bring some benefits. it is made certain that the proposals are appropriate. It enables management to take corrective actions much before serious problems arise. This approach in the long run should lead to better acceptance of change. Resistance also gives management the information about the intensity of employee emotions on an issue. Harvard Business Review. Hurdles to change need to be managed. Commonly used in situations Education + Communication Once persuaded. • • • • • f) Managing Resistance: Kotter & Schlesigner “Choosing strategies for change”. That may encourage management to communicate the change better. There are 6 approaches to manage the resistances as given below: Each has its own advantages and disadvantages. Resistance may encourage management to reexamine its change proposals. Resistance creates checks implementation of change. 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. and balances and ensures proper • • • • Resistance also identifies specific problem areas. So that.
having a sociological flavour. 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. It takes months and years. etc. group dynamics. power leadership and organisational design. if it the change initiators possess overcome any kind of leaves people angry considerable power resistance at the initiators. systematic process of organisational change? OD draws from psychology sociology and anthropology theory OD also relies on information from personality learning theory. The basic characteristics of OD are as follows: a) Planned Change: also called as change intervention. OD stresses an collaboration among all levels. b) Comprehensive organisation. h) Organisational Culture: includes – accepted patterns of behaviour. J. . having the overall system perspective in view. f) Emphasis on Intervention: active intervention of the change agent in the ongoing activities in the organisation. norms. Change: involving total system and the entire • c) Emphasis upon Work Groups: some OD efforts are aimed at individual and organisational change. most OD are oriented towards group. culture of each organisation must be understood and the relations consist with that culture must be developed.fail. e) Participation of a Change Agent: It is generally advised to avail the services of an outside expert.. d) Long-range Change: OD is not a stop gap arrangement. BUILDING EFFECTIVE CHANGE INITIATIVES: 6. value systems. g) Collaborative Management: unlike the traditional management. motivation theory. Where other tactics will not It can be a relatively Can lead to future work. 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. organisational objectives. Organisational Development: • • • Is a planned.
Participation of work teams.i) Action Research: A process of identifying the organisation’s specific problems. To reduce the negative effects in an OD program. Initial top-level involvement. • • • • • • 9. the following criteria are to be satisfied. gathering and analyzing the organisational data and taking actions to resolve problems. 7. Effective management of the OD process and stabilization of changes. Monitoring the process and the measuring of results. Acknowledgement of the congruency between OD and many previous effective management practices. Further expansion of efforts after the early successes. Pre-requisites for organisational development: • • • OD must fulfill certain conditions if it were to be effective. Situations appropriate for OD programs: • The organisation’s managerial strategy (communication pattern. Involvement of personal and IR/HR management people and congruency with personnel policy and practice. Perceptions of organisational problems by key people and perceptions of the relevance of the behavioural sciences in solving these problems. values. decision making) The culture of the organisation (norms. educational philosophy about the theory and technology OD. Development of internal OD resources and facilitative skills. power structure) Structure and the role in organisation. including the formal leader. An open. The introduction into the system of a behavioural science consultant. A typical change strategies and associated HR Initiatives: Types of change strategy HR Activities Advantages Disadvantages . It is not a guarantee for success of OD But favourable environment conducive for organisational change will be created. Motivational level of employees. Intergroup collaboration. The operationalising of the action research model. Trust and support among organisational members Synergetic solutions to problems. • • • • • • • • • • • • • 8.
customers. Changes to performance management. Some changes originate within the organisation. e. 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. • • Impact Speed • • Changes structures systems to and • • • • • Changes to organisational structures including employee accountabilities. Stable environments have less change. Changes to career management. b. Some more are from competitors. communities. 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.Education & Employee Involvement • • • • • • • Changes personnel in • • • Management development Employee training. Some changes are through government laws. a) Transformational leadership & change: • Management has a key role in initiating and implementing change successfully. 10. Changes to reward systems. labour unions. But dynamic environments are the norm. d. Slow Expensive May meet resistance through negative attitudes to change. . etc. Implementing change successfully: a. c.
− And to motivate their employees to do it. Charismatically model their behaviour.• A master strategy for change has to be made not overlooking simple. They stimulate employees to: − − − − − Rise above their narrow focus Make them to see a broader picture action. The overall plan should address behavioural issues. • • • • d) Communicating Charisma: • After the vision. but important details. • • • b) Transformation Leaders: • • Are instrumental in the change process. leaders still have two tasks: − To persuade the employees that the vision is urgent. Workers’ fear of uncertainty. Be learning individuals Make a learning organisation • • c) Creating Vision: • Transformational leaders create and communicate a vision for the organisation. such as difficulty in letting go of old methods. • Charismatic leaders are: . They articulate vision and promote in vigorously. • Charisma is a leadership trait can help influence employees to take early and sustained action. It stretches people beyond their current capabilities and thinking. To create an organisation that welcomes change. A vision is a crystallized long-range image or idea of what can and should be accomplished. It excites them to new levels of commitment and enthusiasm. A vision may also integrate the shared beliefs and value that serve as a basis for changing an organisation’s culture. They take bold strategic changes to position the organisation for its future.
Warm mentors. but also prepare the participants to manage future changes even more effectively. 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.− − − − − − Dynamic risk takers Have depth of expertise Well deserved self confidence. e) Stimulating Learning: • Transformational leaders not only make a very good change in organisation. but an organisation that will continue to change. 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. Activities. who treat employees individually and guide them for action. • Employees trust and respect charismatic leaders and emotionally committed to such leaders. 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. Express high performance expectations Use provocative symbols and language to inspire others. In ‘single loop learning’ employees simply solve current problems and blindly adapt to changes which have been imposed on them. This process is called as ‘double-loop learning’ This means that the changes handled not only reflect the current information gathered. Relationships and Time Estimates: . • • • • 11. the team and the end users of the project. keep change goals constantly in mind to avoid functional myopia • c) Establish check points. Establish ownership for different functions.
The team should also discuss ‘what if’ and ‘what can go wrong’ situations.• • • Check points help members monitor their own progress. Logical arguments have their limits. create opportunity for people to set goals and objectives. from experiences. compromising. Use the appropriate method. develop sensitivity to why people do what they do. • • g) Build Agreements that vitalize team members: • Conflicts are inevitable. persuading. Expect differences. yet must work together on a unique task. Use them to create a synergy and unleash creativity. • • . Create a sense of ‘ownership’. have different objectives and have different types of training. It is important to keep learning. Be a good listener. Establish a detailed check list of activities. A strong team of supporters and collaborators are required. reaching agreement in conflict situations is not only a logical but also an emotional experience. let members go public with their views and choices. smoothing over. Encourage transparency and visibility of the project team’s efforts. keep people informed on a regular and frequent basis. Appropriate the position of the other person. as individuals. they serve to ensure interest and create energy. finding common good etc. and as teams. There are hosts of possible approaches to conflict management like giving in. • • e) Reinforce the commitment and excitement of the Change Team: • Volunteering increases commitment. Treat team members as individuals with their own characteristics. • • f) Keep everyone connected with the Change Program Informed of the Program: • Change involves people from different departments who use different languages. d) Direct people individually and as a Project Team: • • • One can not do it alone. Set long-term and short-term check points for early detection of problems.
we make significant progress only when we stick our necks out. I failed my way to success – Thomas Alva Edison. Like turtles. networks and exchanges. . experimenting. 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. This is achieved through alliances. innovation and creativity.h) Empower yourself and others in the Team: • • Influence without exercising authority is the key. important to build personal power. Plan time for thinking.
− Demand changes in the structure. employees retire or resign. technology. pressure mounts as the organisation outgrows its old ways of doing things. the technological innovations act as powerful triggers for change. conflicts arise. Pressures like these – or the anticipation of such pressures. Recognising the need for change: • • Becoming aware of the need is not enough Managers should also recognise the need for change. . • • • 2. 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. tasks and people in the organisation. Outside the organisation. Within the firm.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.
TQM is a method of evolutionary change. etc. 4. observations. They discuss the need for change and diagnose the problems facing the organisation. Firms opting for bottom-up strategy prepare the organisation for change by involving managers and employees at all levels. secondary data. Organisations must choose between evolutionary and revolutionary change. Managers must determine how it may affect the company. Implementing the change: .3. a top-down strategy calls for intervention at the high level of an organisation. Managers must diagnose the pressures for change. A firm that adopts evolutionary change adopts a bottom-up change strategy. Generally. Diagnosing the problem: • • • • • • Recognizing that change is needed is not enough. Planning the Change: • • A strategy for change is formulated. A firm that pursues revolutionary change adopts a top-down change strategy. Pressure may be likely economic or technical reasons. 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. Questionnaire. 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. What are the consequences of those pressures? For diagnosing the problems various procedures are available like: Interviews. • • • • • • • • • 5. Winding up of divisions or departments and downsizing are examples of this type of change.
6. • • • • • • • • 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. resistance to change surfaces. 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. values and behaviours Refreeze (assurance of permanent change) Reinforcing new values.• • • The next step is to implement the change. • b) The entire change process can be summarized in six stages: 18. wall on • There are 6 approaches for managing resistance. Here. attitudes and behaviours Old Stage New State . − − − − − − 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. There are several ways to show the resistance. And institute procedural modifications that will ensure that change continues to be implemented. Follow up on the change: • The final step in the change process is to evaluate the effects of the change.
Presenting a case to make the people to recognise for a change and how their jobs will be improved by the change. Searching for new solutions. Moving means – developing new behaviours.• • • • • • • According to Kurt Lewin’s Force Field Model. New values. sometimes through OD techniques. • • • Transition Management: • Between. there is a transition which is not shown. organizing and implementing the change from the disassembly of the current state to the realization of a fully functional future state within the organisation. Moving to a desired condition. Learning theory and reinforcement theory can play important roles in the refreezing phase. Unfreezing: involves • Encouraging individuals to discard old behaviours by shaking up the status quo situations. attitudes and behaviours are established as the new way of life. Such changes are sometimes through structural changes. values and attitudes. Managers must ensure that the organisational cultures and reward systems encourage the new behaviours and avoid the old ways of functioning. • • Moving (changing): • Aims to shift or alter the behaviour of the individuals. By unfreezing the current situation. • • . Refreezing the system. effective change occurs. three stage model of change system. departments or organisation in which the changes e to take place. Managing the transition is essential to keep the organisation going. the two phases of change. • • Refreezing: • • Changes become relatively permanent. Highly useful in understanding the ways of managing change. New ways of operating are cemented and reinforced. Popularly called as. So that it remains in the desired state. Transition management is the process of systematically planning.
they change.• Transition management ensures that business continues while the change is occurring. there are people who push for change and there are individuals who resist for change and desire status quo. Organisational change can occur at three levels: o Individual – Changes in individual’s attitudes. customers and suppliers. An interim management structure or interim positions may be created to ensure continuity and control of the business during transition. Successful change. managers must adopt a change strategy to increase the forces for change and reduce the resistance to change. play a role in transition management. Initially the two groups may be equal in their forces. • • • • • • . 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. the organisation is in a state of inertia and does not change. or do both simultaneously. This Lewin termed as ‘quasi stationery equilibrium’ Lewin’s theory states how the forces for change and resistance balance. Failure in efforts to change can be traced back to one of the 3 stages. To get the organisation change. values. thus requires that old behaviours are discarded and new behaviours introduced Those new behaviours have to be institutionalized and rewarded • • • • • • 19. When the forces are in balance. the 3 stage process must be completed. skills and behaviour. Lewin’s model proposes that for change efforts to be successful. Communication of the changes to all involved. employees. again they balance and balanced at any time between the two opposing forces.
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.
• • •
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.
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.
Culture change u. Work design Human Resource Management: m. Performance appraisal o. Career planning & development q. Team building e. Reward systems p. 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: . Organisation confrontation meeting f. T-Group/Sensitivity Training b. Cooperative union management projects j. Goal setting n. Employee wellness Strategic: s. Integrated strategic management t. Quality circles k. Strategic change v. Formal structural change h. Managing workplace diversity r. Differentiation & integration i. Total quality management l.9. Self designing organisations 10. Different types of OD interventions and the level of their impact: Interventions: Human Process: a. Process consultation c. Third party intervention d. Inter-group relations Technostructural: g.
2. e) Participation: • • All those who are affected by the change should be involved in decision making surrounding the change. c) Power Equalisation: • Effective organisations deemphasize hierarchial authority and control d) Confrontation: • • Problems should not be swept under the rug. A behaviour scientist directs the discussions. authenticity. To develop greater sensitivity to the behaviour of others. Improved listening skills. 5.Individuals are perceived as being responsible conscientious and caring. The OD specialist (behavioral scientist) creates the opportunity for participants to express their ideas. They should be openly confronted. Increased ability to empathies with others. the more will be committed to implementing those decisions 11. • They should be treated with dignity and respect b) Trust & support: • • The effective and healthy organisation is characterized by trust. beliefs and attitudes. 4. Explanations on a few OD Techniques: a) Sensitivity Training: • Also known as laboratory training. • • • • • • . To develop increased understanding of group processes. The more we involve. encounter group or T-groups (Training groups) All refer to a method of changing behaviour through unstructured group interactions. 3. openness and supportive climate. Provide the participants with increased awareness of their own behaviour and how others perceive them. Members meet in a free and open environment and discuss about themselves and their interactive processes. The objectives of T-groups are: 1. The individuals learn through observing and participating rather than being told.
Greater openness 7. 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. but more task oriented. Work flow. formal communication channels are some of the areas. 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. • • • • • • d) Team Building: . Improved conflict resolution skills b) Implications of Resistance: • • • • It is a tool for assessing attitudes of organisational members. Similar to sensitivity training. informal relationships among unit members. Identifying discrepancies among perceptions and Solving these differences. A questionnaire is usually filled by all employees of the organisation. He understands and suggests the processes which the manager must act upon. Managers often sense that their unit’s performance can be improved. it is important that the organisational family – the manager and those employees who report directly to him participate. But they are unable to identify what can be improved and how. Increased tolerance of individual differences and 8.6. An outside consultant to assist the manager to perceive is employed. Even though every employee in an organisation can participate in survey feedback.
Team building includes OD consultant feedback in such areas as communication and conflict resolution. ‘Problem solving’ is one of the popular approaches for improving intergroup relations. role clarification. • • • • • • . Hence change efforts are directed towards the group to change their attitudes. stereotypes and perceptions that groups have with each other. The group analyses the problem. OD consultant also helps in assessing group tasks. In this method each group meets independently to develop lists of its perceptions of itself. stereotypes and perceptions through intergroup development. A major area of concern in OD is the dysfunctional conflict that exist between groups. Engineers accountants production engineers maintenance engineers Such stereotypes can have obvious negative impact on the coordinative efforts between the departments. the other group and how it believes the other perceives it. Eg.• Is a conscious effort by management to develop effective work groups through out the organisation. leadership style. Step-3 • • • • e) Intergroup Development: • Seeks to change the attitude. The support and trust of group members enhance the implementation of change. Then selects the most appropriate solution. the participants are likely to be committed to the solution and interpersonal support and trust are developed. Determines underlying cause in such areas as communication. member roles and strategies for accomplishing work tasks. These work groups focus on solving actual problems in building efficient management teams. Through this process. Aimed at helping groups to become effective at task accomplishment. The group proposes several solutions. organisational structure and interpersonal relations. It utilizes high interaction group activities to create trust and openness among team members. Team building process involves the following steps: Step-1 Step-2 • • • • • • • • • The team leader defines a problem.
these key managers will work to implement the grid program through out the organisation. Or may be caused by sub optimal interpersonal relations. 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. Intergroup tensions are dealt with openly and joint problem solving procedures are developed. This phase focuses on the relationship between the organisation’s work groups to improve coordination & cooperation. After appropriate introduction. bargaining and conciliation. groups or departments. Most organisational problems stem from poor communication and inadequate planning. and communication. key managers learn about grid concepts and how they are applied. • f) Third Party Interventions: • • • • This is concerned with helping individuals.9 grid level. OD consultants help the parties resolve their differences through such techniques as problem solving. Differences are clearly articulated and the group look for the cause of disparities. 3 . Black & Mouton proposed a multi step process for improving organisations by attempting to cultivate these skills. To resolve serious conflicts those are related to specific work issues. The steps in grid OD are shown below: Steps 1 Training Activities In a week-long seminar. after which similarities and differences are discussed. They assess their own managerial styles and work on improving such skills as team development. Team Development Intergroup development . group problem solving. • • • • • 2 .• The groups then share lists. Seeks to promote organisational excellence by fostering concern for production and concern for people. The trained managers bring their new understanding of managerial grid concepts relationships and team effectiveness so that the team operates at 9.
Goal Organisation members seek to make the ideal attainment model a reality. QWL programs focus strongly on providing a work environment conducive to satisfying individual needs. Stabilization Eventually. Efforts are made to stabilize positive changes and to identify new areas of opportunity for the organisation. . 5 . 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. but the goal of ‘humanizing the work place’ is of paramount importance. evaluated and refined by managers and subordinates working together throughout the organisation. the results of all the phases are evaluated to determine which areas of the organisation still need improvement or alteration.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. They set goals to be tested. 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. 6 Organisational Top managers together create an ideal model of goal setting the organisation. The programs vary.
− Or when they specifically felt most satisfied with their jobs. Organisational commitment Reduced turnover among workers Increased productivity Profitability and goal attainment for the organisation. • • • • • • . These qualities are further built on to improve performance It focuses on organisations success and abilities than on its problems. Appreciative inquiry is positive. This allows the organisation to change by playing to its strengths and competitive advantages. QWL programs benefit the organisation in these ways: − − − − − Increased job satisfaction. Rather than looking for problems to fix.• One such is ‘work restructuring’ – the process of changing the way jobs are done to make them more interesting to workers. The first step is Discovery: − The idea is to find out what people think are the strengths of the organisation. Job enlargement and job enrichment are two such. employees are asked to recount times they felt the organisation worked best. They identify a problem and then look for solutions. 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. • • • • The hurdles are − − Both management and labour must cooperate in designing the programs Plan agreed by all must be implemented. AI process essentially consists of four steps. this approach seeks to identify the unique qualities and special strengths of an organisation. − For instance. i) Appreciative Inquiry: (AI) • • • • Most OD approaches are problem oriented. Often played out in large group meetings over two or three days and overseen by a trained change agent.
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. • • Companies who used this OD technique. Nature of Creativity: • Creativity refers to the process by which novel but situationally appropriate outcomes are brought about. − This typically includes the writing of action plans and development of implementation strategies. • The third step is Design: − Based on the dream articulation. originality and novelty that is also appropriate to the context. 12. 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. participants discuss how the organisation is going to fulfill its dream.• The second step is Dreaming: − The information from the discovery phase is used to speculate on possible futures of the organisation. CREATIVITY IN ORGANISATIONS: • Organisational culture promotes creativity and innovation 12. The fourth step is Destiny: − In this final step. • . have increased their sales and profits by several crores of money.
The Creative Process: • Researchers have developed a model that outlines the various stages of the creative process. − The problem or issue not forgotten. − 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 mind constantly considers the problem and works on it. The process of creativity occurs in the following four stages: Step-1 Preparation Preparation: − An important condition for creativity. . − Incubation assists in divergent thinking and generating different approaches to the issue. the act must be unique and appropriate to the context. − The problem is only put in the back burner. • • 13. − Plays powerful role in dissolving previously held notions about a problem. − The flashes of inspiration have no definite schedules. − During incubation. The ability to promote creativity in organisations is an important competence to face the turbulence of dynamics of changes in the organisations.• To call anything creative. The social and technological changes that organisations face require creative decisions. − But the problem is still simmering in one’s mind − But it is not at the forefront of his attention. − It is an experience of suddenly becoming aware of a unique idea. − They might come at any time of the day or night. • Insight: − Individuals experience insight at some point during the incubation stage.
tenacity is very important. High intellectual abilities. • Verification: − Ideas are generated at the insight stage. These are the supporting environments and facilities to encourage people to search for new ideas: Creative People Organisational Support Organisational Culture Enhanced Creativity . Characteristics of Creative Individuals: • It is said that creative people posses intellectual and personality characteristics different from their less creative counterparts. but verification of their value is important. An irritation with status quo Perseverance A pursuit of hobbies and specialised interests. Methods of Enhancing Creativity: a. − It is not sufficient we have come up with an idea. • 15. − The new idea has to be subjected to evaluation and experimentation. Lateral thinking 16. • Creative processes do not always follow an order. Grid analysis c. Brainstorming b. 14. Some of the traits of creative people include: − − − − − − − − Willingness to give up immediate gain to reach long range goals.− It can also be lost if not documented. − At this stage. since other people may resist or reject the creative ideas. A great amount of energy. Belief that fantasy and day dreaming are not a waste of time. Inventive thinking style. Creativity Inducing Factors: a.
manufacturing and marketing. − Lavishness does not work. • . d. materials. processes and services. Selecting creative people is the starting point in enhancing creativity in organisations. Organisational Culture: − − − − − Openness to new ideas. seminars. Innovation involves every aspect of organisation. Organisational Support: − May come in many ways.Diversity b. e. − Like foreign assignments. − Make the job intrinsically motivating. Time & Resources: − People are more creative when they have funds. if any. Friendly supervision Team building Participative decision making Flexible organisation structures. development. Diversity: − Diverse ethnic and cultural groups. g. − Divergent thinking is key to creativity f. etc. research. − Break out of the shell and take risks. facilities. Creative People: Exposure Time & Resources i. − Sets goals for creativity − Encourage employees to take risks and accept failures. information and time. 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. c. Exposure: − Expose employees to various kinds of experience. extended leave.
Do not focus only on immediate problems. .• The greatest challenge is to bring the innovative technology into the market in a cost effective manner. 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.
BLOCKS FOR CREATIVITY & INNOVATIONS: • • • It is not enough to take positive steps to promote creativity.• • This will fix the problems and take advantage of the opportunities. Feedback for improvements in successive innovations. Preparation of a business plan is necessary for budget proposals. perceptual. • P. • • Step-4 : Planning to overcome resistance • • Understand the reasons and resistance for change. cultural and emotional blocks as shown in the sketch. Step-5 : Implementing the innovation or change • • Moment of truth when the change is put into operation. Otherwise good ideas will be rejected when they are proposed. Perceptual Blocks Cultural Blocks Emotional Blocks Need for Creativity & Creativity & Innovation . If the planning is carefully done. Do not overlook the status of ongoing activities relative to the competition. There are three broad categories of obstructions for creativity. Overcome the resistance. It is also essential to guard against ways which hinder creativity. implementation will be smooth Step-6 : Monitoring the results • Monitor and evaluate what happens after the change has been implemented. Step-3 : Presenting a proposal and adopting the change • Establish the fact that innovation and change are important to the organisation.
We have not the manpower 50. 38. A belief that indulging in fantasy or other forms of open-ended exploration is a waste of time. 39. 2. Can you put into practice? 7. 34. 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. It can’t work 12. Let me add to that 32. Too much paper work 45. We have not the time − − − − . The timing is off 37. Have you considered 10. Too soon 47. Against company policy 3. The union won’t go for it. It needs more stud 16.Innovation 1. They won’t go for it. It does not fit human nature 14. Cultural Blocks: Include: A desire to conform to established norms. It has been done before 15. It is not good enough 18. It is not budgeted 17. Long time and it works 49. It is not part of your job 19. Too late 44. Too hard to implement. We have been doing it this way for 48. The boss won’t go for it. A good idea but… 2. 3. Too many projects now 13. 36. 4. The drive to be practical and economical. Don’t start anything yet 9. 40. The old times won’t use it. I know it won’t work 11. Overemphasis on competition or conflict avoidance and smoothing. Too old fashioned 46. Costs too much 8. Too academic 41. 43. Be practical 6. − 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. The new people won’t understand 35. That is not our problem 33. Ahead of the times. Too hard to administer 42. There are better ways. Emotional Blocks: Include: − The fear of making a mistake.
Of course. Let us sit on it for a while 26. we have never done it that way 54. What bubble head thought that up? 56. 28. Let us form a committee 22. What will the customers think? 57. Let us think it over for a while 27. Who else has tried it? 61. We have tried it before 55. What will the union think? 58. What you are really saying is? 59. it won’t work 29. Why has not someone suggested it before if it is a good idea? You are off base! . Let us make a survey first 23. Let us discuss it 21. Some other time 31. Who do you think you are? 60. Let us not step on toes 24. We are too big 52. Not ready for it yet.20. Surely you know better 51. We can too small 53. Our Plan is different 30. Let us put it off for a while 25.