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

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

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

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

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

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

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

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

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

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

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Is aimed at any aspect of one’s current self

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

we get the essence of culture. 4. An Affiliative Culture: Interpersonal relationships are given high priority. Conformity and adherence are valued. favouritism and so on. Twelve Types of Corporate Culture: Furnham & Günter in their book ‘Corporate Assessment’ (1993) classified corporate culture as follows: 1. A Humanistic – Helpful Culture: Organisations are managed in a participative. assistance and support to their subordinates. . 9. Communication Patterns: • The degree to which organisational communications are restricted to the formal hierarchy of authority. 6. conflict avoidance dominate this type of organisations. consensus seeking. A Conventional Culture: These are conservative bureaucratic and traditional organisations. Management Support: • The degree to which managers provide clear communication. 7.4. Control: • The number of rules and regulations and the amount of direct supervision that is used to oversee and control employee behaviour. Reward System: • The degree to which reward allocations are based on employee performance criteria in contrast to seniority. consultative and mutually supportive manner. Integration: • The degree to which units within the organisation are encouraged to operate in a coordinated manner. An Approval Culture: Agreement. Conflict Tolerance: • The degree to which employees are encouraged to air their conflicts and criticism openly. 2. B. 3. Identity: • The degree to which members identify with the organisation as a whole rather than with their particular work group or field of professional expertise. 8. • When these characteristics are mixed and meshed. 10. 5.

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

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

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

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

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

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

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

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

organisation

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

2

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

1

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

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

• •

4. Design Parameters for cultural change:

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

• •

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

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

Penetration

Commonality

Adoptability

Development component (process)

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

Durability
• •

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

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

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

Adaptability

Penetration

Commonality

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

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

• • • •

• • • • • •

J. The Transglobal & Cross Cultural Contents:
• •

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

• •

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

Durability

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

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

A significant social condition in many countries is that the local culture is not familiar with the advanced technology or complex organisations. These deficiencies limit the ability to employ local labour productively. and those trained locals become the nucleus for developing still more people. Their employment practices and their business practices vary. d) Economic Conditions: • The most significant economic conditions in less developed nations are: . 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. Another social factor on which countries are often compared is the work ethic of their employees – long/short hours.• There are major shortages of managerial personnel. 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. Needed skills must be imported temporarily from other countries. customs and behaviours. 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. • • • • • • • • b) Legal & Ethical Conditions: • • • Countries around the world vary substantially in their legal systems. o Subordination of employers and labour to an authoritarian state. scientists and technicians. Loaned skilled people develop others. A major issue affecting multinational corporations has been how to deal with contrasting local practices. Managers in foreign countries need to become familiar with local customs and practices. Parallely vast training programs begin to prepare the local workforce.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

they alone are not sufficient to bring in the change. To overcome resistance. We gave to deal with an individual’s attitude to overcome his resistance to change. who make the change to happen and achieve highest levels of performance. It is the individuals who work within the structures and systems and on the tasks and processes. conative and affective dimensions. Organisations have to deal with individual attitudes and behaviours to tap individual wisdom – their experience. we have to deal with the above components. Affective refers – one’s emotional component of likes and dislikes. Individual – focused approaches to managing change: • Though appropriate structures. intelligence and judgement – in managing the change. interviews and observation methods are useful. beliefs and values Conative refers – one’s action tendencies. systems and processes are necessary. Attitude consists of cognitive. • 15.14. Cognitive refers – one’s perceptions. This classifies individuals into different categories in the attitudinal continuum. Dealing with individual resistance to change: • • Individuals need to be motivated to accept change. • • • . • • • • • 16. A feeling of dissatisfaction to be generated with the existing state of organisation. The idea that a change is good for everybody should be driven home. Integration: • • A number of quantitative & qualitative techniques are available. Creative and intellectual energies of the individuals should be diverted to the change initiatives of the organisation. Surveys like questionnaires.

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

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

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

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

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

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

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

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

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

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

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

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

c. • Openness. Tentative balance among competing forces. 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. c. How will we closeness & control each cohesiveness other’s actions? • Getting organised. Group may review its performance. c. In flexible organisations adjournments are more frequent. Transactional leadership skills include: o o o o Goal setting Assertiveness Conflict management Supervision o o o o Communication Problem solving Decision making Rewarding competency • . d. b. project teams disband sooner or later. affection What actions will 4. Performing contribute to our Also referred as: success? • Performance Should we take • Productivity risks? • Mature Have we been closeness empowered to • Achievement succeed? How can we change and grow? How can we 5. a. e. 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. b. Groups. Group begins moving together in co-operative fashion b. Feedback for future teams. Functional roles are performed. Handles complex challenges. Groups norms guide individuals. d. 4) Ingredients of Effective Leadership: • • A process of dealing with members’ aspirations and expectations. d. 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. Tasks are efficiently accomplished.• • • • • • • • • • • • • Control What do we 3. Group matures and learns. Functional roles are also smoothly exchanged as needed. e. Break up is called adjournment. a. More co-operative feelings.

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

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

− Active problem solving. . 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. − Faster synergetic performance − Enhances individual and team capacity − Lot of scope for innovations − Pushes responsibility down to the lowest levels. • SMTs have the following disadvantages: − − − − Extended time to implement them High training investment Inefficiencies due to job rotation. − Promotes collaborative work relationships. self managing teams. • SMTs have several advantages: − Improved flexibility of staff. suggestion systems Consensus decision making. • 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. − Higher level of organisational commitment and job satisfaction. − More efficient operations through the reduced number of job classifications. Inability of some employees to adapt to a team structure. − Lower absenteeism and turnover rates. 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 . depends upon: − − − − Setting achievable goals Gaining commitment from team members Setting ground rules for team activities. I. in 1978. ‘Taurus’ team at Ford Honda. Cross-functional teams are of great assistance in designing and prototyping new models and products. Effective management of relationships among people of diverse backgrounds and work cultures. RESISTANCE TO CHANGE & OVERCOMING IT: • Resistance to change consist of any employee behaviours designed to − Delay − Discredit − Prevent the implementation of work change. engineers and even factory workers on whom rests the total responsibility for the development and manufacture of a single product. • • • • • Most auto companies today employ ‘platform teams’ that consist of a core group of designers.empowerment 8) Cross Functional Teams: • • A type of SMT Consists of individuals from different functional areas working on the design or development of a product. The success of cross-functional teams. inexpensive car. − Ensuring early success to generate enthusiasm and greater belief in team effort.

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

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

Such a release encourage employees to think and talk more about a change so that they understand it better. That may encourage management to communicate the change better. It enables management to take corrective actions much before serious problems arise. Resistance also gives management the information about the intensity of employee emotions on an issue. • • • • Change is necessary in a competitive environment. This approach in the long run should lead to better acceptance of change. Resistance may encourage management to reexamine its change proposals. So that. Harvard Business Review. and balances and ensures proper • • • • Resistance also identifies specific problem areas. 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. • • • • • f) Managing Resistance: Kotter & Schlesigner “Choosing strategies for change”. Resistance creates checks implementation of change. it is made certain that the proposals are appropriate. Commonly used in situations Education + Communication Once persuaded. There are 6 approaches to manage the resistances as given below: Each has its own advantages and disadvantages. It provides an emotional release of pent-up feelings. people Where there is a lack of will often help with the information or inaccurate implementation of the information and analysis change Participation + Involve ment People who participate Where the initiators do not will be committed to have all the information they implementing change need to design the change and and any relevant where others have information they have considerable power to resist will be integrated into the change plan Can be very time consuming if lots of people are involved Can be very time consuming if participators design an inappropriate change. Hurdles to change need to be managed.

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

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

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

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

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

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

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

conflicts arise. 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. 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. • • • 2. pressure mounts as the organisation outgrows its old ways of doing things. − Demand changes in the structure. technology.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. Outside the organisation. the technological innovations act as powerful triggers for change. Pressures like these – or the anticipation of such pressures. . tasks and people in the organisation. Within the firm.

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

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

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

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

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

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

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

1. Forces for change

2. Recognise & define problem Change Agent

3. Problem solving process

5. Measure evaluate control

4. Implement the change

Transition manage ment

• • •

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

• •

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

• •

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

Laissez or free-reign leadership approaches
• • • •

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

• •

Advantages:
• • •

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

Disadvantages:
• •

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

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

M. OD INTERVENTIONS:

• •

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

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

openness and supportive climate. beliefs and attitudes. authenticity. e) Participation: • • All those who are affected by the change should be involved in decision making surrounding the change. Improved listening skills. The more we involve. 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. Increased ability to empathies with others. 4. Provide the participants with increased awareness of their own behaviour and how others perceive them. The objectives of T-groups are: 1. To develop greater sensitivity to the behaviour of others. To develop increased understanding of group processes. c) Power Equalisation: • Effective organisations deemphasize hierarchial authority and control d) Confrontation: • • Problems should not be swept under the rug. the more will be committed to implementing those decisions 11. • • • • • • .Individuals are perceived as being responsible conscientious and caring. 2. 5. encounter group or T-groups (Training groups) All refer to a method of changing behaviour through unstructured group interactions. They should be openly confronted. 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. 3. Members meet in a free and open environment and discuss about themselves and their interactive processes. A behaviour scientist directs the discussions.

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

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

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

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

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

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

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

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

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

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. 1) Types of Innovation: • • Radical innovation – major break through – eg: xerox System innovation – creating new functionalities by assembling parts in new ways – eg: automobile Incremental innovation – continues the technical improvements – applicable to radical and systems also – forces organisations to continually improve products. . • 2) A Six Step Model for Planned Innovation or Change: • The process followed by managers when they engage in planned innovation and change are illustrated in the sketch Step-1 Perceiving an opportunity or a problem Step-2 Diagnosing the situation and generating ideas Step-3 Presenting a proposal & adopting the change or innovation Step-6 Monitoring and evaluating results Step-5 Implementing the change or innovation Step-4 Planning to over come resistance to change or innovation Step-1 : Perceiving an opportunity or a problem • Look ahead for opportunities to solve current and anticipated problems.• The greatest challenge is to bring the innovative technology into the market in a cost effective manner.

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

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

What will the customers think? 57. Our Plan is different 30.20. What will the union think? 58. Who else has tried it? 61. Let us form a committee 22. We have tried it before 55. we have never done it that way 54. Of course. Surely you know better 51. Who do you think you are? 60. it won’t work 29. We are too big 52. Let us think it over for a while 27. Let us not step on toes 24. Let us make a survey first 23. What bubble head thought that up? 56. Let us discuss it 21. Why has not someone suggested it before if it is a good idea? You are off base! . What you are really saying is? 59. Let us sit on it for a while 26. We can too small 53. Not ready for it yet. Some other time 31. Let us put it off for a while 25. 28.

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