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:

− − − − − − − − − − −

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.

• • • •

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

• •

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

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



Is aimed at any aspect of one’s current self

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

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

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

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

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.Greenberg & B.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.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.

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

The good and bad experiences of the individuals of the company on whom the new change is vested in.8) Corporate Culture and Change Management: • All changes interface with three organisational components which constitute the organisational culture. Those three components are: − The historical and political evolution of the company. • • . These factors are: • • • • • • • Base & origin of the company Associated values of the company. − The management and organisation of the company. History & Politics: The historical and political evolution of a company will have a significant bearing on its acceptance of change. The perception of the company that the customers are holding. Are the value & image of the company being changed during the change? The origins of the individuals within the company. The unwritten and written long standing rights and policies existing in the company and the likely threats to them. The traditions and norms to which the management and employees are accustomed to. The image the company likes to promote. − 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 likely ‘balance of power’ between the current owners and the functional experts.Management & Organisation: • • • • • • • • • • • • Changes will impact the roles of management. personal status. Think carefully the impact of change in every job it affects. Typically with any change people expect a reward pay hike. With increased harassing of technology and processes availability of jobs decrease. The ‘acceptance’ of change process by top management. and there inter-relationships. divisions and departments become blurred. • • 4c. sphere of influence. promotion or other type of recognition. They recognize the contribution to the achievement of business objectives. Multi skilling of employees increase and in greater demand. • • • 4b. All the activities and outputs gets customer oriented. Senior management encourages opportunities for progress through innovation. measure and analyse the effect of the change on the workforce. The ‘winners’ and ‘losers’ of power.. All cautions should be exercised in the people oriented changes. The jobs broaden in terms of scope and of accountability. The requirements of specialists slowly decrease. Role of line management shifts from ‘autocrat’ to that of ‘facilitator’ Senior management takes more of strategic stance. Both project and group work increase.• The relationships and cordiality between the top management and the people who have been vested with the powers of change. Every decision on change ‘impacts’ the people. People: • • • • Most of the issues in change management are ‘people’ oriented. • . It will also impact the structure and operation of the organisation. etc. Before embarking upon the change. The boundaries between jobs. their acceptance and willingness and take suitable remedial measures.

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

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

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

The changes stem from several factors.• • Reengineering can address major strategic issues at top level management. 7) Forces for Change in Organisations: • • • • • Change has become the norm in most organisations. arising from outside the organisation. TQM can address the problems at the lower levels. Some are internal. Some are external. arising from sources within the organisation. 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 .

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

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

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

d) Feedback to key client or group: • • • Data gathered is passed on to the client. . These problems are removed with the help of an OD practitioner. − The need for further action or termination is also made in this phase. 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. − Planning for specific improvement of goals is also made. 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. • 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. a) Problem Identification: • • A stage in which the management senses the existence of one or more problems. Methods used-interviews. Also analysis of organisational performance. b) Consultation with a behavioral expert: • After problems are sensed and realized. process observations. questionnaire. • Action: − Indicates the implementation of the steps identified during the planning stage. The consultant provides the client all relevant and useful data.• Diagnosis: − In this phase the specific improvement goals are identified. • Planning: − Actual and possible reasons for resistance to change are identified.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

or destroy the culture. • • Prior to any culture change. Typical frameworks for managing culture change: As suggested by Beckhard the general principles for successful cultural change are as follows: f) Know & understand the current values. once it has been achieved. artifacts and declared values and be involved in all the main change phases. 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. prevent its change. h) Identify the gap between actual and desired culture and take steps to move the actual culture to the desired culture. cultures. 1. g) Work out a desired strategy and desired culture and ensure they match and congruent. abandon the culture.Train Employees Reward Behaviours Communicate Top Management Support Use Stories and Myths Use Slogans I. continuously developing phenomenon Managers can manage culture. It can be realigned to the strategic direction on organisation wishes to take. patterns of behaviour within the organisations and strategic directions of the organisation. 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 . The reality of achieving this is very complex and organisations with similar backgrounds and similar environments develop different cultures at different situations. Top down and bottom up are two of the approaches by HRM for change of culture. senior management must understand the implications of the new culture for their own practices. Culture can be altered. Culture is a dynamic. it can be managed. change culture. Adequate resources need to be allocated to support culture change and maintain it.

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


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


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


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

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

• •

4. Design Parameters for cultural change:

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

• •

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

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




Development component (process)

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

• •

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

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

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




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

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

• • • •

• • • • • •

J. The Transglobal & Cross Cultural Contents:
• •

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

• •

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


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

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

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

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

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

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

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

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

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

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

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

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

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

• • • • • • • 3. This is the understanding of the ways in which those differences can affect business relationships. This is an appreciation of the contribution each culture make to overall success. . 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. expatriate employees minimally need to develop ‘cultural empathy’ This is the awareness of differences across cultures. This new social system affects the responses of all persons involved. They fail to recognise the key differences between their own and other’s cultures. Even if they do. Ethnocentrism: • Another potential barrier to easy adaptation to another culture occurs when people are predisposed to believe that their homeland conditions are the best. They see the situations around them from their own perspective.2. In order to integrate the imported and local systems. In effect they are assuming that the two cultures are more similar than they actually are. Further productivity from local employees is also reduced. 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. • • • 4. they tend to conclude that the impact of those differences is insignificant. Many are predisposed to parochialism. 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.

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

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

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

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 communication is called as cross cultural communications. Cross Cultural Communications: • • • Besides verbal 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. non verbal communications are also important.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

− Higher level of organisational commitment and job satisfaction. • 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. − More efficient operations through the reduced number of job classifications. − Faster synergetic performance − Enhances individual and team capacity − Lot of scope for innovations − Pushes responsibility down to the lowest levels. Inability of some employees to adapt to a team structure.− Active problem solving. − Promotes collaborative work relationships. − Lower absenteeism and turnover rates. one person one vote Democratic management Manager asks group to decide Withdraws Total of Job Freedom Area of employee participation in decision making Medium High Popular terms Autocratic managem ent Consultative management. • SMTs have several advantages: − Improved flexibility of staff. self managing teams. . • SMTs have the following disadvantages: − − − − Extended time to implement them High training investment Inefficiencies due to job rotation. suggestion systems Consensus decision making. 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.

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

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

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

Resistance also gives management the information about the intensity of employee emotions on an issue. and balances and ensures proper • • • • Resistance also identifies specific problem areas. • • • • Change is necessary in a competitive environment. Harvard Business Review. It enables management to take corrective actions much before serious problems arise. Resistance creates checks implementation of change. 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 can bring some benefits. Commonly used in situations Education + Communication Once persuaded. it is made certain that the proposals are appropriate. 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. • • • • • f) Managing Resistance: Kotter & Schlesigner “Choosing strategies for change”. Such a release encourage employees to think and talk more about a change so that they understand it better. So that. There are 6 approaches to manage the resistances as given below: Each has its own advantages and disadvantages. Hurdles to change need to be managed. That may encourage management to communicate the change better. It provides an emotional release of pent-up feelings. This approach in the long run should lead to better acceptance of change. Resistance may encourage management to reexamine its change proposals.

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

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

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

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

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

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

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

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

A firm that pursues revolutionary change adopts a top-down change strategy. They discuss the need for change and diagnose the problems facing the organisation. Pressure may be likely economic or technical reasons. Managers believe that the uncertainty associated with organisational change is best managed through incremental processes in which they continually make adjustments to their strategy and structure. • • • • • • • • • 5. Managers must diagnose the pressures for change. Firms opting for bottom-up strategy prepare the organisation for change by involving managers and employees at all levels. Questionnaire. etc. observations. 4.3. A firm that adopts evolutionary change adopts a bottom-up change strategy. TQM is a method of evolutionary change. Managers must determine how it may affect the company. secondary data. Generally. What are the consequences of those pressures? For diagnosing the problems various procedures are available like: Interviews. a top-down strategy calls for intervention at the high level of an organisation. 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. Planning the Change: • • A strategy for change is formulated. Implementing the change: . Winding up of divisions or departments and downsizing are examples of this type of change. Organisations must choose between evolutionary and revolutionary change. Diagnosing the problem: • • • • • • Recognizing that change is needed is not enough.

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

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

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

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

• • • •

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.

• •

(Top Down & Bottom up approaches are given in Module 3)

Laissez or free-reign leadership approaches
• • • •

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

• •

• • •

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

• •

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

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


• •

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.

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

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

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

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

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

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

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

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

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

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

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

• The greatest challenge is to bring the innovative technology into the market in a cost effective manner. Do not focus only on immediate problems. Hold periodic sessions with senior/junior managers and elicit suggestions. • • Step-2 : Diagnosing the situations and generating ideas • Diagnose the situation and generate new ideas. • 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. . 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.

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

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

Of course. Not ready for it yet. Our Plan is different 30. We have tried it before 55. What you are really saying is? 59. Let us sit on it for a while 26. Some other time 31. it won’t work 29. 28. What bubble head thought that up? 56. Who do you think you are? 60. Let us make a survey first 23. Let us think it over for a while 27. we have never done it that way 54. Why has not someone suggested it before if it is a good idea? You are off base! .20. What will the union think? 58. Let us form a committee 22. Let us not step on toes 24. Let us put it off for a while 25. We are too big 52. Surely you know better 51. We can too small 53. What will the customers think? 57. Who else has tried it? 61. Let us discuss it 21.

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