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

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

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

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

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

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

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

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

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

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

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Is aimed at any aspect of one’s current self

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

• Facilitating through patterns: People with high self-efficacy say ‘I know I can figure out how to solve this problem’. since they expect failure. People with high self-esteem believe that they have abilities to undertake challenging jobs. 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. This is called as organisation based self esteem (OBSE) Directly related to the desire for success. People with low self-esteem are more susceptible to external influence. low esteems will tend to be concerned with pleasing others. . People with low efficacy say ‘I know I can not do that. High esteem people tend to choose unconventional jobs. In managerial positions. Self esteem has to do with people and self-perceived competence and self image in an organisation. Self managed work teams Job design and goal setting. Low esteems are less likely to take unpopular stands. Leadership 4) Self-Esteem: • • • • • • • • • • • Refers to the feeling of like or dislike of one-self. I do not have the requisite ability’ Vulnerability to Stress: People with low self-efficacy tend to experience stress and burnout. Low esteem people are dependent on the receipt of positive evaluations and approvals from 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.

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

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

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. 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 .A.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.Greenberg & B.

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

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

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

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

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

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

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

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

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

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

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

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

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

The new behaviour reinforced and further strengthened through: − − − • Regular feedbacks Incentives & Rewards. Also to check if any modifications and refinements are required for the process. It includes processes aimed at transitioning the organisation from its current state to the desired future state. Contingency perspective – focuses on structural change. Population ecology perspective – looks at the limits of change and resistance to change. • • .c) Action Phase: • • The changes derived from planning stage are implemented in this stage. professionalization and compliance. This is done to assess the progress and check whether positive results are being achieved. Resource dependence perspective – examines strategic 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. the contract with the OD professional is gradually terminated. The change activities are monitored and evaluated periodically. • Slowly. Institutional perspective – looks at becoming and change through imitation. 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.

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. Two central dimensions of structure-specialization and integration. 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. Organisation is something that gets resources from outside. the job of a truck loader. personnel. Variety of things that exists outside yet surrounds the organisation. accounting. are called as horizontal specialization or horizontal division of labour. Specialization is also known as ‘division of labour’ In an organisation there is usually a horizontal and vertical division of labour. • Specialization: • • • • • . etc.a) Notion of Environment: • The most important notion in the four perspectives of organisational change is the idea of environment. converts them into products and services and gives these products and services back to the surroundings. Any job that consists of a single activity or very few activities is a highly specialised job eg. The term ‘environment’ means ‘the surrounding’ That is everything that surrounds the organisation. Refers to the member and variety of different activities that make up individual jobs in an organisation. • • b) Contingency Perspective: • • Mainly concerned with the structure of an organisation. An organisation changes if the environment changes.. Organisations divided into manufacturing. Environment derived from ‘Environ’ means to ‘surround’.. marketing. The fundamental idea is that it is the ‘environment’ which is the source of most of the major changes. Signifies everything that exists outside our organisation.

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

In recent years a new approach called. In other words. The other feature is the level of stability.• One is the level of complexity – how many different organisations are there in the environment. Over the years. contingency perspective has come under lot of scholarly criticism. It is based on the assumption that attributes of size. effective organisations have a cluster of common attributes. If is therefore. Dependence of an organisation on other external organisations for resources makes it vulnerable because it creates uncertainty. strategy and environment commonly occur together. But the contingency variables are themselves related to one another. If the answer is few. environment and structure and so on. the environment is unstable. technology. Pfeffer and Salancik profounded two strategies: internal and external. the environment is complex. This makes them dependent on the groups and organisations in the environments which control the resources that the organisation requires. then the environment is stable. If they are changing rapidly. This cluster of attributes is called a ‘configuration’. • • • • • • • • • • • • • • • • 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. Scholars say that it considers only two variables at a time: strategy and structure. the higher the level of uncertainty. necessary to study how the variables impact on one another and how these relationships affect structure. 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. size and structure. ‘configurational approach’ has emerged to deal with this inadequacy in the contingent perspective. The higher the level of complexity and instability. Internal strategies are aimed at adapting and changing the organisation to fit the environment. the environment is simple. 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. If the answer is many. There are 7 strategies identified: • • • • Internal Strategy: • • Domain choice • Recruitment • Buffing .

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

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

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

their emotional and personal relationships are involved. so that managers can be educated to be aware of this and equipped to manage this reaction. Changes are perceived as ‘deviant or normal’ and ‘threatening or desirable’ ‘Deviants’ are those which are imposed or outside the prevailing cultural norms. values and policies. 9 Facilitating the change process with necessary resources. to overcome resistance and gain commitment. ‘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. dramatic changes as part of the overall process of transformation. 2 Producing a written statement about the future direction of the organisation that makes clear its new objectives. 3 Creating a shared awareness of conditions to produce a common perception that change must be implemented. 6 Recognising that resistance to change is a part of the normal process of adaptation. 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. 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. bottom up is incremental. while bottom up is participative. • • • • • • • . 10 Maintaining open communication about progress. Such changes are generally met with resistance and require careful implementation to overcome the fear.16)Leading the Change Process: • • Implementation of strategic change is likely to be problematic. 5 Generating an acceptance that this type of change will require a long time to implement fully even though there may be short-term. Changes are implemented ‘top down’ or ‘bottom up’ approach Top down is transformational. 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. Top down is perceived as imposed and controlled. mistakes and subsequent learning.

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. − Seeing the people of the organisation as a ‘strategic resource’ for achieving ‘competitive advantage’ • Mabey & Salaman model has an ‘open’ approach to HR strategies. the HR philosophy has to be integrated with the line manager. but difficult to achieve.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. Used for both top down and bottom up approaches. In strategic HRM. These 3 contribute to the employees’ behaviour. The features are: − Specific HR outcomes or desired employee behaviour has to be adapted to achieve the desired corporate strategy. • • 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. A fantastic. Line Managers: • • . idealistic situation. • • • The 3 key levers are: cultural. personnel and structural.

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

. innovative and risk seeking. • 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. Risk Tolerance: • The degree to which employees are encouraged to be aggressive. 3. freedom and independence that individuals have 2.III MBA – CHANGE & KNOWLEDGE MANAGEMENT CHANGE MANAGEMENT MODULE 3 – ORGANISATIONAL CULTURE CHANGE A. Two terms are key to the concept of culture History – cultural heritage of a society are passed on from generation to generation. Shared phenomenon – is basic to culture and implies that the cultural ethos is shared among the members of the society. Individual Initiative: • The degree of responsibility. 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.

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

At this point. McDonald’s. money. Wal-Mart D. An Avoidance Culture: Punishing mistakes and no reward to good work characterise this type of organisations. C. The founder brings in one or more other key people and creates a core group that shares a common vision with the founder. A Power Culture: Using positional power. Egs: Motorola. incorporating.Bate in 1995. A single person (founder) has an idea for a new enterprise. 3. and is worth the investment of time. That is. obtaining patents. 5. 9. The founding core group begins to act in concert to create an organisation by raising funds. outperforming others and this culture promotes win-lose situations. Four Practical Approaches to Cultural Change: Book Titled ‘Strategies for Cultural Change’ by S. o The delivered results are frustratingly disproportionate to the efforts and costs incurred. others are brought into the organisation. o The classifications below help practitioners to gain a broad perspective of approaches that are available to them. and energy that will be required. An Oppositional Culture: Awarding negativism and being critical is the virtue in these organisations.5. How Organisational Culture Starts: 1. and a common history begins to be built. formal roles and seeking instructions from seniors all the time for all the activities are the traits of this culture. locating space. o This gap is due to the excessive attention paid on cultural plans and inadequate considerations of approach strategy. is worth running some risks for. o Managers should know that many times the gap between plans and implementation of culture is wide. o HR managers should advocate a suitable approach for implementation of cultural change based on the type of cultural change planned and organisational environment. 8. hard work are valued here and avoiding mistakes is the hallmark of this type. research and development. all in this core group believe that the idea is a good one. quality emphasis behaviour is valued in this culture. perfection. A Competitive Culture: Employees are rewards and for exceeding targets. 6. 2. A Self Actualisation Culture: Creativity. Here. members criticize each others decisions. hierarchical orientation. achieving targets and accomplishing their own goals and pursuing standards of excellence 12. A Perfectionist Culture: Perseverance. 7. A Dependent Culture: Centralisation. is workable. 10. building and so on. arbitrariness and subjectivity prevail in the organisations of this culture. An Achievement Culture: It is characterised by success. 11. 4. .

technical level • Is used to defined existing order and oppose change initiations. Does not succeed in bringing about fundamental cultural change. not confrontation.o The approaches: Appr oach 1. Loses sight of its radical intent. breadth of support leads to crisis of change. 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. 4. Aggressive • • • • • Characteristics Rapid change Dismantles traditional values New culture is noncomplex Top down monitored Detailed plans/actions Reasonable. Conciliative • • • • • • • • • • 3. quiet Slow change over to new values Deals with means. 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 . logical network Advocates one world view • It Can Lead to a strong integrated culture. 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. Indoctrinative • E. Continuous development Based on power and control Uses informal network Unseen manipulation High participation Act first. Gets seduced back to status quo • 2. not ends Collusion.

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

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

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

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

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

• • • 3.. Every opportunity should be taken to close the cultural gaps. autonomy and innovation are usually conveyed through bureaucratic methods such as team briefings. provision of educations and training. etc. Such changes are tied to an organisation’s critical path Based on solving concrete business problems. selection and retention. training. procedures and structures support them Spread the changes out to other areas of . • • 2. 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. o Employee believes the new culture conflicts with their existing culture. Typically looks towards organisation-wide consensus. To succeed. Bottom up approach for cultural change: • • • • • Focuses on incremental approach Change is developed from bottom up. excellence. empowerment. and focusing on existing values and cultures. Top Down Strategy for cultural change: • • • • Often called ‘programmatic change’ Typically initiated and led from the top. Writes on corporate excellence follow this. Change of organisation structure. organisations need to decide how practices or procedures will be amended to support the new espoused values and contradictory practices removed. performance management and employee relations. performance related pay are a few HR interventions for change of culture.• Culture change programs must take into account an organisation’s existing practices and approaches in recruitment. 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. management of office space. In order to create a change in culture. HRD programmes like quality.

organisation

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

2

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

1

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

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

• •

4. Design Parameters for cultural change:

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

• •

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

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

Penetration

Commonality

Adoptability

Development component (process)

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

Durability
• •

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

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

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

Adaptability

Penetration

Commonality

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

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

• • • •

• • • • • •

J. The Transglobal & Cross Cultural Contents:
• •

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

• •

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

Durability

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

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

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

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

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

represent cultures with lower distance. • • High power distance countries have norms. Australia. etc. Such structures encourage and promote inequality between people at different levels. Countries in which people blindly obey the orders of superiors have high power distance. Organisations tend have tall structures. Germany. • In high power distance countries: − − − − − − Decision make is centralised. Norway. Everyone has a place. Those at the top make most of the decisions. 1) Power Distance: • • Power distance is the extent to which less powerful members of countries companies and organisations accept that power is distributed unequally. must force workers to perform. Managers believe that they must adopt theory X leadership style. 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. Canada. and must supervise their subordinates closely. Managers believe that they must be authoritarian. The 4 dimensions are: Power Distance.. Individualism and Masculinity/Feminity. Most people should be dependent on a leader. values and beliefs such as: − − − − − Inequality is fundamentally good. . Have flatter organisation structures Have smaller proportion of supervisory personnel Have highly qualified people in the lower state of workforce. • Organisations in low distance countries: − − − − Tend to be decentralized.• He identified four cultural dimensions around which countries have been clustered with people in each group exhibiting identical behaviours. • USA. The powerful are entitled to privileges. some are low. They will have a large proportion of supervisory personnel People at low level have low of job qualifications. some are high. Uncertainty avoidance.

Brazil. These employees have a high level of uncertainty avoidance and prefer to avoid ambiguity at work. Low labour turnover Less ambitious employees • Societies with low uncertainty avoidance cultures have: − − − − − − Less structuring of activities. • Countries with high uncertainty avoidance culture have: − − − − − A great deal of structuring of organisational activities. Deviant people and idea should not be tolerated. 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. Mexico and Indonesia are examples of societies with a high power distance. • .• France. Less risk taking managers. 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. Collectivism is the tendency of people to belong to groups and to look after each in exchange for loyalty. Experts and authorities are usually correct. 3) Individualism/Collectivism: • Individualism is the tendency of people to look after themselves and their family only. More written rules. Laws are very important and should be followed. and Consensus is important. • • High uncertainty avoidance countries are characterized by norms. values and beliefs which accept that: − − − − − Conflict should be avoided. India.

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

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. Then novelty fades off. realities of everyday life in an alien land starts. A haunting thought. 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. There can be an upswing of mood upon arrival in the ‘assignment’ country that produces a ‘honeymoon’ phase. Cultural Adjustment: • The process of cultural adjustment is a critical determinant of an expatriate’s performance.L. 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. fear of the unknown. Adjustments to a foreign culture are multifaceted. ‘failure as an early recall’ may be triggered at this point. • . A slow negative appraisals of location and situation leads to a crisis. • • • Phase 2: • • This is a very critical time. The concept of an adjustment cycle or U curve shows that typical phases that may be encountered during cultural adjustment.

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

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

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

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

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

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

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

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

Individual Differences Parochialism Ethnocentrism Cultural distance Culture shock Cultural Adaptation Careful Selection Compatible assignments Pre-departure training Orientation & support Preparation for reentry R. non verbal communications are also important. . Cross Cultural Communications: • • • Besides verbal communications. Non-verbal communication is called as cross cultural communications. 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.

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

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

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

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

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

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

These values have to be shared and imbibed by all through out the organisation. It employees have to be attended to change. Written communications are through specific written documents. reliable and perhaps repeated and number of times to drive home its importance and the depth of the management’s commitment. Value may be generated by discussion and active employee involvement at all levels in the organisation. These values enable and stable and trustworthy relationships. 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.• Communications about change have to be clear. Once a set of values are collectively agreed upon. Values tie together people. • • • • • • • • • o Employee Training: . Non routine communications are through media. 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. systems and processes. hope and a positive outcome. Values agreed upon should be documented. Oral persuasive communication is carried out through speeches. precise. • • • • • • o Creating a Common Value Orientation: • • Values are basic to human behaviour. communication should lead to optimism. 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. modify and realign their personal values. they tend to form a benchmark for individuals to adopt. These values are based on group and individual behaviours and also the work processes. If not. The messages must be credible and take a variety of forms. all our vision and mission statements are only decorative pieces in the corporate lobby.

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

• If an organisation has to implement change. − Demonstrating some of the benefits of change early in the change process. o Commitment on the part of top management in real earnest. − Focusing on the benefits of change at the individual level. Employee empowerment: • • To empower is to give autonomy to an employee enabling him to make decisions on his job and accountable for his actions. employee empowerment depends upon a number of factors. 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. • • • • . Affective Changes – Change Mechanism 5. and feel responsible for improving organisational performance. − Addressing avoidance learning – focusing on intended change as the only alternative to avoid/overcome fear or insecurity. Stock ownership may be performance based. A personal sense of ownership motivates employees to take the initiative. authority and accountability at work. • • 6. To be successfully implemented. The approach promotes a binding relationship. Dealing with human emotions could be in terms of: − Creating feeling of psychological safety about change. 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. Company shares may be given at concessional rates. It is the integrating of ownership. generate productive ideas. 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. 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.

Compensation System: • Managing change through people behaviour is possible when the desired behaviour is appropriately rewarded. how much they cost to the company. • • 7.• For success trust between the employee and management is necessary. Dealing with negative emotions: • Some employees may have negative emotions towards the intended change. Some of the ways to do this are: o Empathy o Modeling o Shock therapy o Mentoring o Manipulation o Employee counseling • • . 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. Financial rewards and financial health are tied up. Employees are also given to understand how much they contribute to. Organisations should create a meaningful reward system. 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. Types of rewards − Power rewards (higher responsibilities) − Pay for performance − Pay for knowledge and skill • 8. These negative emotions must be understood to successfully handle. not all rewards are same) • • • • • The major demotivators are perceived unfairness in dispensing rewards.

Tohat are the factors for change under conation? 1. Employees today should be enabled to perform a variety of tasks rather than a few limited jobs. Where the employee accepts his job duties and responsibilities. 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. Now. Cross training facilitates job rotation. The psychological contract has two dimensions: the personal goals of a human being and the organisational goals. • • • • • • 2. Therefore.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. constantans improves actions. Such skills can come by cross training. starts. • • • . no actions without learning. a new role relationship. For every employee there is a psychological contract with the organisation – may be explicit or implicit. Mutuality is the basis for the release of human energy for effective change management. accepts supportive criticism for improvements • • 3. 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. Clarifying Contractual Obligations: • • Change benefits the organisation. Cross training provides a flexible force and flexible factory. change benefits the employee. wherein an employee can switch periodically from one job to another. 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. Cross Training: • • Training is provision of information and skills. Emphasis on action learning in implementing change: • • • Learning occurs with actions. Action learning is a social process. solves task related problems. too.

there should be the necessary support structure. and activities together form the organisation structure which supports the organisation. Success of cross functional training depends upon employee willingness to learn new skills on the job. Within the limits of ‘mental elasticity’ human capabilities at work could be stretched to the optimum to meet the global business competition. a learning environment within the organisation and the free sharing of information. the way they adapt. • • Supporting climate – learning environment: . thus slowly stepping up one’s self confidence.• With this the employee brings a fresh perspective to each job in addition to what has learnt already. modify and develop are important. Employee elasticity: Stretching the Potential: • • Good HR stretch employees to the maximum of their potential ability to work. systems. 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. o The people in the organisation structure. Stretching employee potential facilitates change management. 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. It could also be diagonal. 4. Cross training can be across different functional areas like finance and marketing. 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. It also solves the shortage of manpower. Any kind of mental stretching should be done gradually by exposing one to changes of graded difficulties. • • • • • Positive attitudes to such training is built if employees are rewarded for acquiring new skills. Supportive climate – Organisational design: o Organisational processes. etc. • • • • 5.

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

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

From a sense of duty. From group compulsion. Interpersonal trust. and Accountability – where one is accountable to superiors or the top management for achieving the goal. • The value base of team lies in: − − − − Belief in a democratic work environment. − Deciding on means and methods. 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. Promotion of scientific inquiry in addressing issues and problems. In the hope of personal gains. Concern for the development of individual potentialities. From the inability to say no Teams have the advantage: − Of improving up and setting goals and priorities. • The success of team effort depends upon: − The leadership provided to the members who constitute the team. − Improving performance qualitatively and quantitatively. .− − − − − − • To overcome one’s fears and insecurities. Commitment – to achieve the goal through group effort. Due to a rational belief to joint effort. • 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.

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

c. More co-operative feelings. Tentative balance among competing forces. Break up is called adjournment. 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. c. Tasks are efficiently accomplished. a. b. Group matures and learns. 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. d. Group may review its performance. 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. project teams disband sooner or later. In flexible organisations adjournments are more frequent. Functional roles are also smoothly exchanged as needed. a. d. Groups. 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 • . d. 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. Handles complex challenges. 4) Ingredients of Effective Leadership: • • A process of dealing with members’ aspirations and expectations. e. How will we closeness & control each cohesiveness other’s actions? • Getting organised. Group begins moving together in co-operative fashion b. Groups norms guide individuals.• • • • • • • • • • • • • Control What do we 3. c. • Openness. Feedback for future teams. b. e. a. Functional roles are performed. affection What actions will 4.

focus attention. trust and compatibility Skills & Role Clarity: − Team members must be reasonably qualified to perform − They should have a desire to co-operate. as the group matures. Providing adequate time for meetings. 6) Potential Team Problems: . unify efforts and stimulate more cohesive teams. Demonstrating faith in members’ capacity to achieve These steps contribute to further co-operation.o Enables a leader to get a job done successfully. more transformational skills are required. Administered in proportion to the team performance. • 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. • A leader needs to exhibit greater transactional skills in the initial stages of group formation (first & second stages) Later. Encouraging members to think like a team. − All members carry their weight. Should be perceived as ‘possible to earn’. Super-ordinate Goal: − Team members should be oriented towards their overall task. Team Rewards: − − − − − Stimulates teamwork Recognition or financial Most powerful if they are valued by team members. − Each member should know the roles of all the others in the group with whom they are interacting.

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

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. − Promotes collaborative work relationships. sells decision Benevolent autocracy Manager seeks ideas before deciding Manager asks group for recomme nded actions before deciding Participative commuters such as quality circles Manager decides with group. suggestion systems Consensus decision making. − More efficient operations through the reduced number of job classifications. self managing teams. − Lower absenteeism and turnover rates. Inability of some employees to adapt to a team structure. • SMTs have several advantages: − Improved flexibility of staff. − Faster synergetic performance − Enhances individual and team capacity − Lot of scope for innovations − Pushes responsibility down to the lowest levels. .− Active problem solving. • 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. • SMTs have the following disadvantages: − − − − Extended time to implement them High training investment Inefficiencies due to job rotation. − Higher level of organisational commitment and job satisfaction.

in 1978. Cross-functional teams are of great assistance in designing and prototyping new models and products. • 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 . inexpensive car. engineers and even factory workers on whom rests the total responsibility for the development and manufacture of a single product. • • • • • Most auto companies today employ ‘platform teams’ that consist of a core group of designers.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. ‘Taurus’ team at Ford Honda. depends upon: − − − − Setting achievable goals Gaining commitment from team members Setting ground rules for team activities. − Ensuring early success to generate enthusiasm and greater belief in team effort. RESISTANCE TO CHANGE & OVERCOMING IT: • Resistance to change consist of any employee behaviours designed to − Delay − Discredit − Prevent the implementation of work change. I. The success of cross-functional teams. Effective management of relationships among people of diverse backgrounds and work cultures.

Changes. ‘Change’ does not respect blue or white collar. sometimes. some employees will try to protect themselves from its effects. May reject an insensitive and authoritarian approach that did not involve them in the change process May be a perception of poor timings. Particularly employees too have a desire for new experience and the accompanying rewards that come with the change. − Dislike the method used. − Do not see a personal gain for themselves.o Required o Unintended o Large • o Imagined o Direct o Small o Intended o Indirect Regardless of the nature of change. Some perceive as gainers due to change. Second • • • • Third • • • • Their resistance will be even more intense if all the 3 reasons exist. set up a ‘chain reaction effect’ also. A lesson to management is: change is likely to be a success or a problem. People resist because of the fear of unknown. Threats to job security. − People disagree with the nature of the 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. . The method by which it is introduced People may resent having been ill informed. Inequity of the people’s experience Some perceive as losers due to change. • • 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. depending upon how skillfully it is managed to minimize resistance.

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

• • • • • f) Managing Resistance: Kotter & Schlesigner “Choosing strategies for change”. it is made certain that the proposals are appropriate. Resistance may encourage management to reexamine its change proposals.• • It can bring some benefits. So that. Harvard Business Review. Advantages Disadvantages Commonly used in situations Facilitation + Support Advantages Disadvantages Where people are resisting No other approach Can be time because of fear and anxiety works as well with consuming adjustment problems expensive and still . It provides an emotional release of pent-up feelings. 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. • • • • Change is necessary in a competitive environment. Resistance also gives management the information about the intensity of employee emotions on an issue. Such a release encourage employees to think and talk more about a change so that they understand it better. It enables management to take corrective actions much before serious problems arise. Hurdles to change need to be managed. Commonly used in situations Education + Communication Once persuaded. This approach in the long run should lead to better acceptance of change. There are 6 approaches to manage the resistances as given below: Each has its own advantages and disadvantages. That may encourage management to communicate the change better. Resistance creates checks implementation of change. and balances and ensures proper • • • • Resistance also identifies specific problem areas.

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

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

labour unions. Some more are from competitors. e. Some changes are through government laws. communities. • • Impact Speed • • Changes structures systems to and • • • • • Changes to organisational structures including employee accountabilities.Education & Employee Involvement • • • • • • • Changes personnel in • • • Management development Employee training. d. Some changes originate within the organisation. Stable environments have less change. customers. b. Changes to performance management. . Slow Expensive May meet resistance through negative attitudes to change. 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. But dynamic environments are the norm. Implementing change successfully: a. etc. 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. a) Transformational leadership & change: • Management has a key role in initiating and implementing change successfully. Changes to career management. 10. c. Changes to reward systems.

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

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

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

. we make significant progress only when we stick our necks out. This is achieved through alliances.h) Empower yourself and others in the Team: • • Influence without exercising authority is the key. important to build personal power. 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. Like turtles. innovation and creativity. I failed my way to success – Thomas Alva Edison. experimenting. Plan time for thinking. networks and exchanges.

pressure mounts as the organisation outgrows its old ways of doing things. Within the firm. tasks and people in the organisation. Pressures like these – or the anticipation of such pressures. Outside the organisation. technology. . employees retire or resign. − Demand changes in the structure. 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.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. • • • 2. Recognising the need for change: • • Becoming aware of the need is not enough Managers should also recognise the need for change. the technological innovations act as powerful triggers for change. conflicts arise.

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

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. attitudes and behaviours Old Stage New State .• • • The next step is to implement the change. And institute procedural modifications that will ensure that change continues to be implemented. values and behaviours Refreeze (assurance of permanent change) Reinforcing new values. • b) The entire change process can be summarized in six stages: 18. 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. wall on • There are 6 approaches for managing resistance. Here. − − − − − − 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. resistance to change surfaces. Follow up on the change: • The final step in the change process is to evaluate the effects of the change.

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

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

• •

Advantages:
• • •

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

Disadvantages:
• •

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

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

M. OD INTERVENTIONS:

• •

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

Culture change u. Self designing organisations 10. Team building e. Third party intervention d. Quality circles k. Reward systems p. Total quality management l. Managing workplace diversity r. Career planning & development q. Cooperative union management projects j. Different types of OD interventions and the level of their impact: Interventions: Human Process: a. Work design Human Resource Management: m. Employee wellness Strategic: s. 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: . Formal structural change h. Integrated strategic management t.9. Process consultation c. Organisation confrontation meeting f. Differentiation & integration i. Inter-group relations Technostructural: g. Strategic change v. T-Group/Sensitivity Training b. Performance appraisal o. Goal setting n.

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

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

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

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

Stabilization Eventually. 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. 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. the results of all the phases are evaluated to determine which areas of the organisation still need improvement or alteration. QWL programs focus strongly on providing a work environment conducive to satisfying individual needs. 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. 5 . but the goal of ‘humanizing the work place’ is of paramount importance. They set goals to be tested. . 6 Organisational Top managers together create an ideal model of goal setting the organisation. evaluated and refined by managers and subordinates working together throughout the organisation. The programs vary. Goal Organisation members seek to make the ideal attainment model a reality. Efforts are made to stabilize positive changes and to identify new areas of opportunity for the organisation.4 .

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

participants focus on finding a common vision of how the organisation will look and agree on its unique qualities. CREATIVITY IN ORGANISATIONS: • Organisational culture promotes creativity and innovation 12. • . • • Companies who used this OD technique. have increased their sales and profits by several crores of money. participants discuss how the organisation is going to fulfill its dream. • The third step is Design: − Based on the dream articulation. 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. originality and novelty that is also appropriate to the context.• The second step is Dreaming: − The information from the discovery phase is used to speculate on possible futures of the organisation. Nature of Creativity: • Creativity refers to the process by which novel but situationally appropriate outcomes are brought about. The fourth step is Destiny: − In this final step. − This typically includes the writing of action plans and development of implementation strategies. − For instance people are asked to envision the organisation in five years and describe what different is going to happen. The essence of creativity is the element of freshness.

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

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

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

. Hold periodic sessions with senior/junior managers and elicit suggestions. Do not focus only on immediate problems. • 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.• 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. • • Step-2 : Diagnosing the situations and generating ideas • Diagnose the situation and generate new ideas.

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

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

Not ready for it yet. What will the customers think? 57. Who else has tried it? 61. Why has not someone suggested it before if it is a good idea? You are off base! . What bubble head thought that up? 56. it won’t work 29. We have tried it before 55. Who do you think you are? 60. Let us put it off for a while 25. What will the union think? 58. We are too big 52. we have never done it that way 54. 28.20. What you are really saying is? 59. We can too small 53. Some other time 31. Let us make a survey first 23. Let us form a committee 22. Of course. Let us think it over for a while 27. Let us sit on it for a while 26. Let us not step on toes 24. Our Plan is different 30. Surely you know better 51. Let us discuss it 21.

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