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

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

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

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

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

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

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

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

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

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

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Is aimed at any aspect of one’s current self

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

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

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

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

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. 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 .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.A.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

That is. is workable. An Avoidance Culture: Punishing mistakes and no reward to good work characterise this type of organisations. o The classifications below help practitioners to gain a broad perspective of approaches that are available to them. 3. Wal-Mart D. locating space. . An Oppositional Culture: Awarding negativism and being critical is the virtue in these organisations. McDonald’s. members criticize each others decisions. research and development. and energy that will be required. 10. o This gap is due to the excessive attention paid on cultural plans and inadequate considerations of approach strategy. 7. achieving targets and accomplishing their own goals and pursuing standards of excellence 12.5. A Perfectionist Culture: Perseverance. outperforming others and this culture promotes win-lose situations. quality emphasis behaviour is valued in this culture. The founding core group begins to act in concert to create an organisation by raising funds. 5. How Organisational Culture Starts: 1. Four Practical Approaches to Cultural Change: Book Titled ‘Strategies for Cultural Change’ by S. Here. o The delivered results are frustratingly disproportionate to the efforts and costs incurred. A Self Actualisation Culture: Creativity. At this point. A Competitive Culture: Employees are rewards and for exceeding targets. A Dependent Culture: Centralisation. 11. obtaining patents. A Power Culture: Using positional power. formal roles and seeking instructions from seniors all the time for all the activities are the traits of this culture. The founder brings in one or more other key people and creates a core group that shares a common vision with the founder.Bate in 1995. is worth running some risks for. money. incorporating. o Managers should know that many times the gap between plans and implementation of culture is wide. and a common history begins to be built. Egs: Motorola. An Achievement Culture: It is characterised by success. A single person (founder) has an idea for a new enterprise. 6. all in this core group believe that the idea is a good one. 8. 4. hard work are valued here and avoiding mistakes is the hallmark of this type. perfection. others are brought into the organisation. 9. and is worth the investment of time. building and so on. hierarchical orientation. arbitrariness and subjectivity prevail in the organisations of this culture. 2. o HR managers should advocate a suitable approach for implementation of cultural change based on the type of cultural change planned and organisational environment. C.

Loses sight of its radical intent. 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. Indoctrinative • E. Conciliative • • • • • • • • • • 3. breadth of support leads to crisis of change. Does not succeed in bringing about fundamental cultural change. Continuous development Based on power and control Uses informal network Unseen manipulation High participation Act first. 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. legitimize later Planned and programmed Explicit learning process Socializing Unified. not confrontation. logical network Advocates one world view • It Can Lead to a strong integrated culture. Gets seduced back to status quo • 2. 4.o The approaches: Appr oach 1. 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 .

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

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

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

Isolation is not productive. them creative individualization can infuse new life and ideas for the organisation’s benefit. • • 4.3. question and experiment while also not being too disruptive. The interaction between individualization and socialization is shown in the sketch: High Conformity Socialization (impact of organisational culture on employee acceptance of norms) Isolation Low Low Individualisation (Impact of employee on Organisational culture. Individualization: • Occurs when employees successfully exert influence on the social system around them at work by challenging the culture or deviating from it. Culture Change Methods & effectiveness: Probable Effectiveness Culture Change Method Very Great Great Moderate Minimal . When we assume that the culture of a certain organisation invites its employees to challenge. Deviation from norms) High Rebellion Creative individualism • • The two extremes rebellion and conformity may prove dysfunctional to the organisation.

it can be managed. or destroy the culture. artifacts and declared values and be involved in all the main change phases. Culture can be altered. once it has been achieved. senior management must understand the implications of the new culture for their own practices. It can be realigned to the strategic direction on organisation wishes to take. continuously developing phenomenon Managers can manage culture. Culture is a dynamic. g) Work out a desired strategy and desired culture and ensure they match and congruent. 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. Top down and bottom up are two of the approaches by HRM for change of culture. Culture change programs must pay careful attention to the organisation’s power bases and opinion – leaders such as trade unions and employee’s association • • • Publicly recognise heroes & heroines Appoint a manager of culture Formulate Value statement . • • Prior to any culture change. prevent its change. The reality of achieving this is very complex and organisations with similar backgrounds and similar environments develop different cultures at different situations. change culture. h) Identify the gap between actual and desired culture and take steps to move the actual culture to the desired culture. patterns of behaviour within the organisations and strategic directions of the organisation. 1.Train Employees Reward Behaviours Communicate Top Management Support Use Stories and Myths Use Slogans I. cultures. Adequate resources need to be allocated to support culture change and maintain it. 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. abandon the culture.

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

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

e. How will we closeness & control each cohesiveness other’s actions? • Getting organised. c. d. Transformational leadership skills relate to: o o o o Futuristic thinking Value clarification Entrepreneurism Influencing o Envisioning o Creativity o Mentoring • & inspiring for higher motivation and achievement – how the leader regarded and respected – credibility. Group begins moving together in co-operative fashion b. More co-operative feelings. Feedback for future teams. a. 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. 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. Handles complex challenges. project teams disband sooner or later. Tasks are efficiently accomplished. c. Group matures and learns. Functional roles are also smoothly exchanged as needed. e. • Openness.• • • • • • • • • • • • • Control What do we 3. d. Break up is called adjournment. Tentative balance among competing forces. Group may review its performance. a. a. affection What actions will 4. b. c. Adjourning celebrate our Also referred as: success? • Adjourned What connections • Terminated should we maintain? What have we learned from our experience? Where do we go from here? themselves. Groups norms guide individuals. 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. Functional roles are performed. In flexible organisations adjournments are more frequent. Groups. b. 4) Ingredients of Effective Leadership: • • A process of dealing with members’ aspirations and expectations.

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

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

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

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

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

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

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

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

the following criteria are to be satisfied. Pre-requisites for organisational development: • • • OD must fulfill certain conditions if it were to be effective. including the formal leader. Perceptions of organisational problems by key people and perceptions of the relevance of the behavioural sciences in solving these problems. 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. Development of internal OD resources and facilitative skills. Monitoring the process and the measuring of results. Motivational level of employees. Further expansion of efforts after the early successes. decision making) The culture of the organisation (norms. • • • • • • • • • • • • • 8. A typical change strategies and associated HR Initiatives: Types of change strategy HR Activities Advantages Disadvantages . Trust and support among organisational members Synergetic solutions to problems. Acknowledgement of the congruency between OD and many previous effective management practices. The introduction into the system of a behavioural science consultant. Situations appropriate for OD programs: • The organisation’s managerial strategy (communication pattern.i) Action Research: A process of identifying the organisation’s specific problems. To reduce the negative effects in an OD program. Initial top-level involvement. gathering and analyzing the organisational data and taking actions to resolve problems. Intergroup collaboration. An open. 7. • • • • • • 9. educational philosophy about the theory and technology OD. Participation of work teams. values. power structure) Structure and the role in organisation. 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.

Some changes originate within the organisation. communities. • • Impact Speed • • Changes structures systems to and • • • • • Changes to organisational structures including employee accountabilities. c. labour unions. etc. d. Slow Expensive May meet resistance through negative attitudes to change. b. e. Changes to employee relations structures (consultation and bargaining) • • • Longer lasting change Regeneration of employee knowledge and skill Regeneration of tired systems • • Dealing with negative consequences for employees Possibly expensive Slower to have impact May be difficult to establish causal link changes to structures and systems and organisational change. a) Transformational leadership & change: • Management has a key role in initiating and implementing change successfully. Changes to performance management. Some more are from competitors. . Changes to career management.Education & Employee Involvement • • • • • • • Changes personnel in • • • Management development Employee training. 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. Changes to reward systems. Implementing change successfully: a. Stable environments have less change. Some changes are through government laws. customers. But dynamic environments are the norm. 10.

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

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

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

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

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

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

• • • The next step is to implement the change. And institute procedural modifications that will ensure that change continues to be implemented. resistance to change surfaces. • • • • • • • • 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. • b) The entire change process can be summarized in six stages: 18. values and behaviours Refreeze (assurance of permanent change) Reinforcing new values. wall on • There are 6 approaches for managing resistance. attitudes and behaviours Old Stage New State . Here. 6. There are several ways to show the resistance. Follow up on the change: • The final step in the change process is to evaluate the effects of the change. Lewin’s Process Model: Unfreeze (awareness of need for change) Reducing the forces who wants status quo Change (Move) (movement from old state to new state) Developing new attitudes. − − − − − − 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.

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

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

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Let us sit on it for a while 26. Let us discuss it 21. What will the customers think? 57. 28. Some other time 31. What you are really saying is? 59. it won’t work 29. Let us put it off for a while 25. Our Plan is different 30. Not ready for it yet. Let us form a committee 22. Surely you know better 51. Of course. Let us not step on toes 24. Let us think it over for a while 27.20. What bubble head thought that up? 56. What will the union think? 58. we have never done it that way 54. We have tried it before 55. Who do you think you are? 60. Who else has tried it? 61. Why has not someone suggested it before if it is a good idea? You are off base! . Let us make a survey first 23. We can too small 53. We are too big 52.

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