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1) Self Awareness:
• • • • • Is the ability to be aware of what one is feeling? Is self understanding Is the knowledge of one’s true feelings at the moment? Is one of Goleman’s five dimensions of emotional intelligence in the workplace? Eg: Raju recognises that he is angry, so that he will wait himself to cool down and gather more information before taking an important personnel decision.
2) Self Analysis & Management/Self Monitoring:
Definition: A systematic attempt by an individual to understand and analyse one’s own personality without the help – another. • • If a person knows his skills and abilities it will help him to develop greater self confidence and enable him to present a positive image to those he deals in. Self analysis of skills will lead to: − Working effectively with others – approachability, teamwork, cooperation, rapport and adaptability” − Communication – listening, enthusiasm, clarify, pertinence, confidence. − Judgements and decision making – decisiveness, research, planning, reaching a conclusion, evaluation. − Persuading and influencing – communication, leadership, negotiation, motivation, charisma, determination, forcefulness, vision, empathy. − Ability to solve problems – critical thinking, analysis, lateral thinking, creativity. − Time management – ensuring assignments are done on time. − Use of IT – word processing report to solve problems quickly. − Achieving one’s goals – determination, commitment, will power resolution, stamina, ambition, energy, resistance. − Specialist subject knowledge. • Self analysis provides the opportunity to turn potential failures into triumphs, through appropriate interpretations.
After analysis one has to self manage. There are 12 steps of self management:
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Make a decision that you desire to achieve the goal. Believe that you will achieve the goal. Write down your goal on paper. Be honest with yourself. Analyse your present position. Use deadlines. Identify the rocks that stand in your way. Identify the skills you need. Identify those people from whom you need co-operation Make a complete business plan. Visualize the perfect outcome, emotionalise how terrific you will feel when the outcome is achieved and make the necessary affirmations consistent with achieving the goal. − Determine to back your plan with patience and persistence.
• Self efficiency refers to a person’s belief that he has: − − − − • The ability The motivation The situational contingencies. To complete a task successfully.
People strong in self efficiency have a − ‘Can do’ attitude towards a specific task. − ‘Can do’ attitude for various challenges in life.
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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”
Bandura’s task-specific self-efficiency in ‘state like’ and specific task oriented. Bandura also states a ‘generalised self efficiency’ which reflects people’s belief in successfully accomplishing tasks across a wide variety of achievement situations – called as ‘trait like’
a) Self efficacy Vs Self-esteem: 1. Self esteem Is a global construct of one’s evaluation and belief of overall worthiness Is stable and traitlike Self efficacy Is one’s belief about a task and contact specific capability. Is changing overtime as new information and task experiences and gained and developed and is statelike. Is a current assessment of one’s future success at task.
Is aimed at any aspect of one’s current self
b) The process & impact of self efficacy: The Process: • • • • • Directly, the self-efficacy process starts before individuals select their choices and initiate their efforts. People tend to weigh, evaluate and integrate information about their personal capabilities. This initial stage of process has nothing to do with individual’s abilities or resources. It rather, depends upon how they perceive or believe they can use those abilities and resources to accomplish the given task in this context. This evaluation of perception then leads to the expectations of personal efficacy which in turn determines: − The decision to perform the specific task in this context. − The amount of effort that will be expended to accomplish the task − The level of persistence that will be forthcoming despite problems, regardless of evidence and adversity. The Impact: Self-efficacy can directly affect: • • • Choice behaviour: Decisions made based on how efficacious a person feels towards the opinion in work assignments or careers, etc. Motivational effort: People will try harder and give more effort on tasks where they have high self efficacy than those where the efficacy judgement is low. Perseverance: Those with high self-efficacy bounce back, be resilient when meeting problems or even failure, whereas those with low efficacy tend to give up when obstacles appear.
High efficacy people enter into potential stressful situations with confidence and assurance and thus are able to resist stressful reactions.• Facilitating through patterns: People with high self-efficacy say ‘I know I can figure out how to solve this problem’. Low esteems are less likely to take unpopular stands. 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. Self esteem has to do with people and self-perceived competence and self image in an organisation. People with low self-esteem are more susceptible to external influence. low esteems will tend to be concerned with pleasing others. Low esteem people prone to the beliefs and behaviours of those they respect. . This is called as organisation based self esteem (OBSE) Directly related to the desire for success. • 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. High esteem people tend to choose unconventional jobs. Self managed work teams Job design and goal setting. Low esteem people are dependent on the receipt of positive evaluations and approvals from others. Leadership 4) Self-Esteem: • • • • • • • • • • • Refers to the feeling of like or dislike of one-self. since they expect failure. I do not have the requisite ability’ Vulnerability to Stress: People with low self-efficacy tend to experience stress and burnout. In managerial positions.
but only if like many other human characteristics – such as creativity. Based on the interpretation of how we believe we are supposed to behave. likely to fear decision making. − One study found that people with high self-esteem handle failure better than those with low self esteem. Our behaviour varies with the role we are playing.• • • • • High esteems are more satisfied with their jobs. 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. both on and off his job. lack negotiation and interpersonal skills and are reluctant unable to change. That view indicates how one is supposed to act in a given situation. hopelessness and depressive symptoms. satisfaction. feelings. − 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. we engage in certain types of behaviour. High self esteem people have more positive attitudes. Research results on self-esteem are mixed. It is found that males score slightly higher in self-esteem than females. People with low self-esteem are not confident in thinking ability. A role is a set of expected behaviour patterns attributed to someone occupying a given position in a social unit. 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. . − Yet another study says: “High self esteem can be a good thing. Low esteems are less satisfied with their jobs. less anxiety. Everyone has to play a number of diverse roles. a ii)Role Perception: • • • It is one’s view. each playing a role.
eg. conflicts will inevitably arise. a iv)Role Conflict: • • When an individual is confronted by divergent role expectations. to a large part is determined by the role defined in the context in which we are acting. Role of a judge or football referee. How we have to behave. as well as opening up lines of communication to discover the other’s perceptions. 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. • a iii)Role Expectations: • • Defined as how others behave you should act in a given situation. subordinates. Unless roles are clarified and agreed upon by both parties.• Since managers perform many different roles. the result is role conflict. Supervisors particularly have to change roles rapidly as they work with seniors. Reaching such an understanding requires studying the available job descriptions. they must be highly adaptive and exhibit role of flexibility in order to change from one role to another quickly. It exists when an individual finds that compliance with one role requirement may be more difficult than compliance with another. b) Leader/Manager Roles: by Mintzberg . technical and non-technical activities. The complex web of manager – employee role perception.
Baron) Task Oriented Roles Initiator Contributors Recommend new solutions to group members Information Seekers Attempt to obtain the necessary facts Opinion Givers Share own opinion with others Energisers Stimulate the group into action whenever interest drops Relations Oriented Roles Harmonisers Meditate group conflicts Self Oriented Roles Blockers Act stubborn & resistant to the group Recognition Seekers Call attention to their own achievements Dominators Assert authority by manipulating the group Avoiders Maintain distance.Formal Authority and status Interpersonal Roles Figure head Leader Liaison Informational Roles Monitor Disseminator Spokes person Decisional Roles Entrepreneur Disturbance handler Resource allocator Negotiator c) Some Roles Commonly Played by Group Members: (by J.Greenberg & B.A. isolate themselves from follow group members Compromisers Shift opinions to create group harmony Encouragers Praise and encourage others Expediters Suggest ways the groups can operate more smoothly .
‘grow up’ leaving behind the characteristics of earlier stages of development and adopt new behaviours with age. organisational environment. Change produces emotional reactions too. It is normal and constant. but pervasive too. To many it is threatening. It is a ‘natural’ and ‘adaptive’ change as a consequence/reaction to the external circumstances and pressures. the external pressures force it to change. environments and expectations. step by step. a trouble maker. motivation. Sometimes it is a ‘radial’ shift from the current to a new process. • • • • . If throws up also a dissatisfied person. A process and not an event. An organisation too cannot and should not remain constant/stagnant all the time. • • • • • • 7) Characteristics of Change: • • • • • • Vital if a company were to avoid stagnation. Life itself is almost synonymous with the concept of change. Sometimes it is also a ‘mutually agreed’ plan for change in various groups of management. It is dependent upon the organisational environment and or culture. Is fast and is likely to increase further in the present competitive business. etc. roles of people. it has visions of revolutions. Many a times it is a ‘top down’ management directive. Change is inevitable. Change encompasses leadership.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. Humans and organisms. Sometimes is an ‘incremental’ change. Even if the management does not want to change.
• • . The perception of the company that the customers are holding. Those three components are: − The historical and political evolution of the company. − The management and organisation of the company. The image the company likes to promote. The unwritten and written long standing rights and policies existing in the company and the likely threats to them. Are the value & image of the company being changed during the change? The origins of the individuals within the company. These factors are: • • • • • • • Base & origin of the company Associated values of the company. History & Politics: The historical and political evolution of a company will have a significant bearing on its acceptance of change. − The people who work for the company • o The illustration of the 3 components and their inter-relations are shown in the sketch Changes Historical & political Corporate evolution Culture Management & Organisation Changes People 4a. The good and bad experiences of the individuals of the company on whom the new change is vested in. The traditions and norms to which the management and employees are accustomed to.8) Corporate Culture and Change Management: • All changes interface with three organisational components which constitute the organisational culture.
sphere of influence. The requirements of specialists slowly decrease. and there inter-relationships. etc. measure and analyse the effect of the change on the workforce. Before embarking upon the change. • .. The ‘winners’ and ‘losers’ of power. It will also impact the structure and operation of the organisation. • • 4c. The ‘acceptance’ of change process by top management.Management & Organisation: • • • • • • • • • • • • Changes will impact the roles of management. divisions and departments become blurred. • • • 4b. Every decision on change ‘impacts’ the people. The jobs broaden in terms of scope and of accountability. Multi skilling of employees increase and in greater demand. They recognize the contribution to the achievement of business objectives. All cautions should be exercised in the people oriented changes. their acceptance and willingness and take suitable remedial measures. With increased harassing of technology and processes availability of jobs decrease. Senior management encourages opportunities for progress through innovation. Role of line management shifts from ‘autocrat’ to that of ‘facilitator’ Senior management takes more of strategic stance. Both project and group work increase. The likely ‘balance of power’ between the current owners and the functional experts. The boundaries between jobs. promotion or other type of recognition. personal status. People: • • • • Most of the issues in change management are ‘people’ oriented. Think carefully the impact of change in every job it affects. Typically with any change people expect a reward pay hike.• The relationships and cordiality between the top management and the people who have been vested with the powers of change. All the activities and outputs gets customer oriented.
Informal groups can pose a major barrier to change because of the inherent strength they possess. Others say. They cover long periods of time. can frequently overcome resistance at the individual level. • • c) Organisational – Level Changes: • Changes at this level involve major programs that affect both individuals and groups. Effective implementation of change at the group level. since any change at individual level. can resist change envisaged by management. Require considerable planning for implementation.9) Levels of Change: 3 Levels – Individual. Some say that changes at the individual level will seldom have significant implications for the total organisation. the above is not true. Decisions regarding these changes are generally made by senior management. like unions. These decisions are rarely implemented only by a single manger. group and organisational a) Individual Level Change: • Change is reflected in such developments as changes in job assignment. physical move to a different location or the change in maturity level of a person which occurs overtime. will also have repercussions in the group. The groups could be departments or informal work groups. This is because most activities in organisations are organised on a group basis. Formal groups. − − − − − Work flows Job design Social organisation Influence the status systems & Communication patterns • • Managers must consider group factors when implementing change. Decisions at this level involve major programs that affect both individual and groups. Change in the organisational level is generally referred to as ‘organisational development’ • • • • • • . Changes at the group level can affect. • • b) Group Level Change: • • • • Most organisational changes have their major effects at the group level.
improve quality. Developed by Edward Demming Broad goal of TQM is continuous improvement. Business processes Re-engineering Values & Benefits Jobs and Structures Management & measurement • • • . Employees are expected to make suggestions on all aspects of processes and management. Orients with customer as object. roles and work activities. Known as Business Process Re-engineering. Radial rethinking and redesigning of business processes to obtain rapid organisational effectiveness.6) Types of Change: • Two Types : Evolutionary Change Revolutionary Change • • Evolutionary Change : Gradual. Has the following components. TQM is an example Revolutionary Change: Sudden. reduce waste. drastic & organisation-wide. incremental. TQM has 4 key components Systems Change Through TQM Management People Processes • • • b) Re-Engineering: • • • Revolutionary change. Ignores existing arrangement of tasks. Continuous efficiency improvement to reducer costs. TQM is driven by statistical data. a) Total Quality Management (TQM): • • • • Evolutionary change. re-engineering is an example.
• • • • . Both demand change of people’s attitudes and their values and beliefs. offer a tremendously powerful recipe for building or rebuilding an organisation. TQM – a continuous. comparison fact finding and reasoning. Re-engineering is radical reinvention and top down approach. bottom up. performance measurement and reward schemes. TQM and Reengineering have four identifiable founding principles and commonalities which are summarized as follows: TQM Systems Processes People Management Reengineering Management & Measurement Business Processes Values & Benefits Jobs & Structures • d) Similarities between TQM & Reengineering: • Both emphasize objectivity and this they obtain through statistical analysis and benchmarking. Both differ in perception too TQM has analytical thinking. TQM focuses on improvement whereas reengineering focuses on customer relationships. • • • • • • • • e) Dissimilarities between TQM & Reengineering: • • • • • The two differ in their approach to change. The two differ in their impact on organisational culture. Both emphasize the importance of customer. Reengineering has a program of change with an identifiable beginning and an end. Both stress on job description and proper organisation structural relationships. improvement. Reengineering demands conceptual thinking rooted in supposition. TQM is an attitudinal change with constant focus on continuous improvement and customer. But the two approaches applied together and with understanding and sympathy.c) Integration of evolutionary & revolutionary change – TQM & Re-engineering: • The popular approach is that the two can not co-exist. Both promote a process orientation. although there is a difference in emphasis. rather than pure directions. Both stress the role of management on coaching and facilitating. Both promote empowerment and involvement high value team work in quality circles. intuition. measurement. lateral thinking and raw creativity associated with senior management. Both emphasize on power and accountability.
7) Forces for Change in Organisations: • • • • • Change has become the norm in most organisations. arising from sources within the organisation. arising from outside the organisation. Some are external. 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 .• • Reengineering can address major strategic issues at top level management. TQM can address the problems at the lower levels. The changes stem from several factors. Some are internal.
To get the organisation to change. the change starts occurring in steps and reaches a level of P2.9) Force Field Theory of Change: . When the forces are in balance. . Initially both the groups may be equal in their force. Simultaneously reduce the resistance for 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. At P2 the forces balance between the two groups. At P1. effective change occurs by: • • • Unfreezing the current situation. there are people who push for change and there are individuals who resist for change and desire status quo. the organisation is in a state of inertia and does not change. Moving to a desired condition. Refreezing the system so that it remains in this desired state. • • • • • • 10)Different change Models Lewin’s three stage model of change system: As per Kurt Lewin’s Force Field Model. managers must adopt a change strategy to increase the forces for change.
Old behaviours should be discarded and new behaviours are introduced. Old ways of functioning are avoided • • • d) Lewin’s Change Model: Unfreezing Reducing the forces for status quo Moving Developing new attitudes. the 3 stage processes must be completed. Encouraging people to search for new solutions. To change sometimes through structural changes. • • • c) Refreezing: • • The change becomes permanent. To develop new behaviours. values and behaviours Refreezing Reinforcing new values attitudes and behaviours • The model proposes that for change efforts to be successful. values and attitudes. departments or organisations where the changes are to take place. Failures can be traced back to anyone of the stages. • • . Management should ensure that the new organisational culture and record systems encourage a new behaviour. To change sometimes through organisational development techniques. Presenting the existing problem Making the people to recognise the need for change.a) Unfreezing: Involves • • • • • • Shaking up the equilibrium state that maintains status quo Encouraging individuals to discard old behaviours. Eliminating the rewards for current behaviours and discouraging current behaviours. The new way of operating are cemented and reinforced. b) Moving: Aims • To shift or alter the behaviour of individuals. values and behaviours are established as the new way of organisational approach. New attitudes.
In the transition state. − They also explore the areas requiring change. This information must be able to be translated into action. the business must carry on. An interim management structure or interim positions may be created to ensure continuity and control of the business during transition. . Later modified by Kolb & Frohman (1970) This model is based on the principle that information must be freely and openly shared between the organisation and the change agent. This model follows a seven step process as in the sketch: • • Scouting Entry Diagnosis Planning Termination Stabilization & Evaluation Action • The phases are generally sequential.e) Transition Management: • • • Is between any two phases of change. play a great role in transition management. Still. organizing and implementing change from the disassembly of the current state to the realization of a fully functional future state within an organisation. employees. This is a process of systematically planning. Transition management ensures that business continues while the change is occurring. Scouting: − Phase where the change agent and the organisation jointly explore the need for change. but the change agent can change the sequences when need arises. • • • • • 11) Planning Models • • • Developed by Lippit. Watson & Westley (1958). Communication of the changes to all involved. the organisation is neither old nor new. • • Entry: − In this phase development of mutual contract and mutual expectations take place. customer and suppliers. Managing transition is essential to keep the organisation going.
b) Consultation with a behavioral expert: • After problems are sensed and realized. questionnaire. Also analysis of organisational performance. 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. The consultant provides the client all relevant and useful data. a) Problem Identification: • • A stage in which the management senses the existence of one or more problems.• Diagnosis: − In this phase the specific improvement goals are identified. the help of an OD expert is sought c) Data gathering & preliminary diagnosis: • • • Consultant and organisational members gather the data. • Termination: − Phase where a decision is made to leave the system or to end and begin another. d) Feedback to key client or group: • • • Data gathered is passed on to the client. • Action: − Indicates the implementation of the steps identified during the planning stage. process observations. • Stabilization and Evaluation: − Phase where evaluation is undertaken to determine the extent of success of the planned change. − The need for further action or termination is also made in this phase. . • Planning: − Actual and possible reasons for resistance to change are identified. − Planning for specific improvement of goals is also made. Methods used-interviews. These problems are removed with the help of an OD practitioner. To determine the strengths and weaknesses of the area under study.
g) Action: • • Stage involves the actual change from one organisational state to another. The group does validation. situations re-diagnosed and new actions taken.e) Joint Diagnosis of the Problem: • • • • The group discusses the feedback. further diagnosis and identified the problem. Based on the feedback. Reorganizing structures and work designs. New data is taken to find the effects of actions already taken. Reinforcing new behaviours. . Focuses on any additional research needed. The specific action depends upon on the organisation’s cultural. 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. etc. h) Data gathering after action: • • • Is cyclic in nature. Involves and includes: − − − Installing new methods and procedures. f) Joint action planning: • • The consultant and management team jointly agree on problem – solving methods. technological and work environment problems to be resolved and the time and costs associated with the desired OD intervention.
The rules for carrying out the consulting relationships. • • • • • • . The change process is undertaken after the ‘diagnoses of sources of problems and then analyzing it. Planned movement can occur from one state to another. Organisational members who are aware of the need for change initiate the change process. Appropriate actions are designed to improve the organisation. there is a mutual assessment of the requirements. And the resources for OD are committed. wherein: − The organisation members make judgements about consultant’s skill and competence. b) Planning Phase: • Planning commences once the problems facing the organisation are understood. Diagnosis is jointly undertaken by organisational members and OD practitioners. In the search process. Approval of the key decision makers is also sought during this stage. The basis for this model is that an organisation exists in different states at different times. Model consists of four phases • • • a) Exploration Phase: • Organisation decides whether to plan for specific change and commit resources for it. Understanding of the present state of the organisation and the processes of change required to move to another state is required. This leads to search for OD resources and assistance and then contracting OD experts. • • • • The contracting phase lays the ground rules for a collaborative relationship and seeks clarification as to − − − What each party expects from the relationships. How much time each will invest and what it will cost. Goals are set for the change efforts. − And the consultant assesses whether the client is ready for change and has the necessary resources and commitment.13)Integrative Model of Planned Change: • • • Developed by Bullock and Batten (1985) Describes both organisational states and change processes.
The new behaviour reinforced and further strengthened through: − − − • Regular feedbacks Incentives & Rewards. Also to check if any modifications and refinements are required for the process. professionalization and compliance. Institutional perspective – looks at becoming and change through imitation. It includes processes aimed at transitioning the organisation from its current state to the desired future state. • • • 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. • Slowly. Contingency perspective – focuses on structural change. Population ecology perspective – looks at the limits of change and resistance to change.c) Action Phase: • • The changes derived from planning stage are implemented in this stage. the contract with the OD professional is gradually terminated. e) The integrative model of change is indicated in the sketch below: Exploration Stage Change Process Need awareness Search Contracting Planning Phase Change Process Diagnosis Design Decision Action Phase Change Process Implementation Evaluation Integration Phase Change Process Stabilization Diffusion Renewal 14)Perspectives on Change: • • • Four major perspectives on organisational change. Resource dependence perspective – examines strategic change. The change activities are monitored and evaluated periodically. • • . This is done to assess the progress and check whether positive results are being achieved.
Two central dimensions of structure-specialization and integration. • • b) Contingency Perspective: • • Mainly concerned with the structure of an organisation. etc. The fundamental idea is that it is the ‘environment’ which is the source of most of the major changes. converts them into products and services and gives these products and services back to the surroundings. marketing. accounting. Environment derived from ‘Environ’ means to ‘surround’. Variety of things that exists outside yet surrounds the organisation. The term ‘environment’ means ‘the surrounding’ That is everything that surrounds the organisation. 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. Organisations divided into manufacturing. are called as horizontal specialization or horizontal division of labour. Refers to the member and variety of different activities that make up individual jobs in an organisation. An organisation changes if the environment changes. personnel. the job of a truck loader. Any job that consists of a single activity or very few activities is a highly specialised job eg. Signifies everything that exists outside our organisation.a) Notion of Environment: • The most important notion in the four perspectives of organisational change is the idea of environment.. 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. Organisation is something that gets resources from outside.. • Specialization: • • • • • . Specialization is also known as ‘division of labour’ In an organisation there is usually a horizontal and vertical division of labour.
an organisation would be inefficient. What types of structure? How specialised the jobs should be? What are the coordinating mechanisms in the organisation? Etc. • • • General: • • • • Contingency Perspective: • • • • • • • • • • • • • . The main idea of contingency perspective is that the most effective or appropriate structure is one that is in ‘fit’ or ‘alignment’ with its contingency variables. In restructuring several questions arise. rules. There are two dimensions that characterise the environment of an organisation.Integration: • Refers to the various ways and means of coordinating the work of individuals in the organisation. or if there is a change in their environment. These bring about uniformity and standardization in the activities of the organisation. Any change in these two dimensions is called as ‘restructuring’ of an organisation. plans and targets. or if they change their strategy or if they acquire new technology. Contingent means ‘depending’. Both specialization and integration are factors that are within the control of an organisation’s management. The management can determine the extent of specialization and type of integration required within an organisation. unproductive and chaotic. Misfit requires a change in the organisation structure. Any change in one or more contingency variables results in a misfit between the structure and the contingency variable. Contingency factors depend upon contingency variables. technology of an organisation. procedures and systems and goals. The most common and familiar methods of integration are through direct supervision. strategy of an organisation and environment of an organisation. When an organisation grows larger. These variables are: size of an organisation. The most important aspect of contingency perspective relating to organisational change is the relationship between environment and structure. Organisational changes almost always involve restructuring. These are the central questions based on the contingency perspective. they need to change their structure in order to remain effective. Lack of fit or misfit affects the performance of the entire organisation. Without these coordination mechanisms.
then the environment is stable. Over the years. This cluster of attributes is called a ‘configuration’. the higher the level of uncertainty. Internal strategies are aimed at adapting and changing the organisation to fit the environment. the environment is unstable. ‘configurational approach’ has emerged to deal with this inadequacy in the contingent perspective. Dependence of an organisation on other external organisations for resources makes it vulnerable because it creates uncertainty. Scholars say that it considers only two variables at a time: strategy and structure. If is therefore. 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.• One is the level of complexity – how many different organisations are there in the environment. necessary to study how the variables impact on one another and how these relationships affect structure. If the answer is many. technology. 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. In recent years a new approach called. If the answer is few. effective organisations have a cluster of common attributes. The higher the level of complexity and instability. 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 . In other words. size and structure. If they are changing rapidly. Pfeffer and Salancik profounded two strategies: internal and external. But the contingency variables are themselves related to one another. It is based on the assumption that attributes of size. the environment is complex. The other feature is the level of stability. contingency perspective has come under lot of scholarly criticism. strategy and environment commonly occur together. the environment is simple. environment and structure and so on. • • • • • • • • • • • • • • • • 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.
some organisations die and a few others are born into the population. The niche provides the resources for the organisations. Populations means organisations which are similar – restaurants. fail to survive. There may be political resistance to change inside the organisation. 5 external strategies: • • Advertising Coalescing • • Contracting Lobbying • Co-opting d) Population – Ecology Perspective: • This perspective states that individual organisations can not adapt to changing environments for a variety of reasons. • A major criticism against this perspective is that it does not provide any positive role for managers. There are 3 types of processes for such death and births: − − • • • • • • • • − Variation: are those processes that lead to differences in organisations in terms of strategy structure. 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. skills and culture. Each population occupies an ecological niche in the environment. Some of the reasons can be: − − − − • Organisational leaders may have incomplete information about the environment.Environmental scanning Geographical dispersion External Strategy: • • • • • Smoothing • Rationing Are meant to alter the environment to fit the organisation. etc. textile firms. There may be legal and financial barriers to entry and exit from current market or industries. The environment consists of different niches. two wheeler manufacturers. management systems suited only for their specific niche. • Therefore. . Those organisations that lack these capabilities are unable to get the required sources and therefore. patterns of behaviours. systems. Organisational assets may be specific to its current tasks. Consequently. it is more useful to study a population of organisations rather than a single organisation. Organisations survive in their niches by developing distinctive capabilities such as skills.
Organisational theories: − Results of the work of scholars and academics. − No single. Such organisations are able to obtain the necessary resources. Semi-theoretical and semi-practical.e) Institutional Perspective: • Social norms. values and culture make up the institutional norms. Norms. Organisations that lack legitimacy have difficulty in getting the requisite resources. but tend to be general rather than specific. Organisational Change Models: − − − − − − Work of academics. Organisational Change Tools: − Special tools and techniques intended to bring about specific types of changes in organisations. • • • • • • 15)Understanding the change Process: • • A manager frequently grapples with change. They are also called as ‘symbolic elements’. They help organisations to change rather than learning about change. Organisations that conform to the norms and standards are considered as legitimate. Descriptive – informs us the way in which organisations change. values and culture of the environment in which they operate affect organisations. Why? How? Are there different types? Which is better? Organisational levels? Limitations? Messy & Painful? Our knowledge is fragmented. . Organisations change their structures and strategies not to improve performance but to conform to the norms and standards of the institutional environment. unified and coherent theory. Prescriptive – lay down guidelines for bringing about effective change in organisations. 2 types of change models: Descriptive & Prescriptive. − They only study organisational changes than change organisations. 3 separate areas of management dealing with change. consultants and practitioners. lawful and proper. Processes? • • • Models are useful and less complex than theories and offer practical advice.
One type includes all the changes that take place inside an organisation – computerization. The above is ‘intro organisational’ change. These are strategy.• • If we want to change effectively we must integrate theory and practice. Another type refers to the organisation as a whole. How to change – is process of change. quality and costs. This is truly ‘organisational’ Organisational change includes intro organisational. marketing. It is the combination of right values. Four areas which constitute the content of change – technology. A model of change levers is indicated below: Marketing Technology Managing People Quality Costs . Right Values Management of change Right knowledge Right action Three components of Productive Change • • We have to distinguish between two types of organisational change. Organisation levers of change − − − − − − • • • • What to change – is content of change. etc. right knowledge and right action that leads to productive change. new inventory control. In order to bring about changes in these organisations need to change three other aspects. structure and people management.
to overcome resistance and gain commitment.16)Leading the Change Process: • • Implementation of strategic change is likely to be problematic. so that managers can be educated to be aware of this and equipped to manage this reaction. Such negative action will generate resistance and reduce necessary risk-taking behaviour. 6 Recognising that resistance to change is a part of the normal process of adaptation. bottom up is incremental. Top down is perceived as imposed and controlled. 10 Maintaining open communication about progress. 9 Facilitating the change process with necessary resources. 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. Changes are perceived as ‘deviant or normal’ and ‘threatening or desirable’ ‘Deviants’ are those which are imposed or outside the prevailing cultural norms. 3 Creating a shared awareness of conditions to produce a common perception that change must be implemented. values and policies. 5 Generating an acceptance that this type of change will require a long time to implement fully even though there may be short-term. Changes are implemented ‘top down’ or ‘bottom up’ approach Top down is transformational. their emotional and personal relationships are involved. 7 Educating participants about the need for change and training them with the necessary competence to be effective. while bottom up is participative. Such changes are generally met with resistance and require careful implementation to overcome the fear. 2 Producing a written statement about the future direction of the organisation that makes clear its new objectives. Since this involves people. 4 Assembling a body of key managers and other important opinion – formers to gain their commitment to the change process so that this may be disseminated more widely. 8 Persevering with the change process and avoiding blame where an attempt to implement a fact of this process fails. ‘BECKHARD’ suggests 10 organisation prerequisites which must exist before transformational change can be achieved. • • • • • • • . mistakes and subsequent learning. dramatic changes as part of the overall process of transformation.
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. the HR philosophy has to be integrated with the line manager. Used for both top down and bottom up approaches. • • • The 3 key levers are: cultural. 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. • • b) Responsibility for leading the implementation of the change process: • Mabey & Salaman suggests three sources HRM is moving from HR specialist to the line manager. Line Managers: • • . The features are: − Specific HR outcomes or desired employee behaviour has to be adapted to achieve the desired corporate strategy. In strategic HRM. but difficult to achieve. A fantastic. − Seeing the people of the organisation as a ‘strategic resource’ for achieving ‘competitive advantage’ • Mabey & Salaman model has an ‘open’ approach to HR strategies. idealistic situation. personnel and structural. These 3 contribute to the employees’ behaviour.
the HR specialist has a ‘change maker’ role. • • • • • • . Devises the personnel strategies for the best HR outcomes. − − − − − • • Has a close awareness of the organisation’s operating environment and business plans. Consultant has to be involved from the beginning to the implementation and stabilization stages. As shown in the open HRM approach sketch.• Line managers better. external consultants may also be called upon. They act as catalysts to develop novel solutions. − − − − Communicate plans to their workforce Explain their relevance vis-à-vis strategy. The HR specialist. Recommends course of actions Diagnoses the problems Helps managers to implement change measures. Integrates personnel. Operate personnel procedures. Monitor the performances of the procedures. 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. External Consultants: • Besides line mangers and HR specialists working in concert. structural and cultural strategies. Secures the resources necessary for change programmes. The external consultant provides the off the shelf recipe for the client.
. innovative and risk seeking. Risk Tolerance: • The degree to which employees are encouraged to be aggressive. freedom and independence that individuals have 2.III MBA – CHANGE & KNOWLEDGE MANAGEMENT CHANGE MANAGEMENT MODULE 3 – ORGANISATIONAL CULTURE CHANGE A. Meaning & Defination: a) Culture: is a complex whole: which includes • • • • • • Knowledge Morals Other capabilities • • • Belief Law Other habits • • Art Custom And acquired by a man in society. Two terms are key to the concept of culture History – cultural heritage of a society are passed on from generation to generation. Direction: • The degree to which the organisation creates clear objectives and performance expectations. 3. • b) Organisational culture/Corporate culture: • • • • • Has been defined as the: Philosophies Assumptions Attitudes • • • Ideologies Beliefs Norms • • Values Expectations That knit the organisation together and are shared by employees c) 10 Characteristics of Culture: 1. Individual Initiative: • The degree of responsibility. Shared phenomenon – is basic to culture and implies that the cultural ethos is shared among the members of the society.
• When these characteristics are mixed and meshed. A Conventional Culture: These are conservative bureaucratic and traditional organisations. An Affiliative Culture: Interpersonal relationships are given high priority. 4. Conflict Tolerance: • The degree to which employees are encouraged to air their conflicts and criticism openly. Integration: • The degree to which units within the organisation are encouraged to operate in a coordinated manner. conflict avoidance dominate this type of organisations. 5. A Humanistic – Helpful Culture: Organisations are managed in a participative.4. Control: • The number of rules and regulations and the amount of direct supervision that is used to oversee and control employee behaviour. we get the essence of culture. Conformity and adherence are valued. 6. 7. . Identity: • The degree to which members identify with the organisation as a whole rather than with their particular work group or field of professional expertise. 8. assistance and support to their subordinates. An Approval Culture: Agreement. 2. favouritism and so on. consultative and mutually supportive manner. Communication Patterns: • The degree to which organisational communications are restricted to the formal hierarchy of authority. 10. Management Support: • The degree to which managers provide clear communication. Reward System: • The degree to which reward allocations are based on employee performance criteria in contrast to seniority. 9. consensus seeking. B. 3. Twelve Types of Corporate Culture: Furnham & Günter in their book ‘Corporate Assessment’ (1993) classified corporate culture as follows: 1.
and a common history begins to be built. 3. and energy that will be required. achieving targets and accomplishing their own goals and pursuing standards of excellence 12. How Organisational Culture Starts: 1. o Managers should know that many times the gap between plans and implementation of culture is wide. A single person (founder) has an idea for a new enterprise. quality emphasis behaviour is valued in this culture. McDonald’s. Wal-Mart D. outperforming others and this culture promotes win-lose situations. . locating space. A Perfectionist Culture: Perseverance. obtaining patents. o The classifications below help practitioners to gain a broad perspective of approaches that are available to them. money. A Competitive Culture: Employees are rewards and for exceeding targets. Four Practical Approaches to Cultural Change: Book Titled ‘Strategies for Cultural Change’ by S. That is. o The delivered results are frustratingly disproportionate to the efforts and costs incurred.5. A Power Culture: Using positional power. building and so on. research and development. A Self Actualisation Culture: Creativity. all in this core group believe that the idea is a good one. The founder brings in one or more other key people and creates a core group that shares a common vision with the founder. Egs: Motorola. An Oppositional Culture: Awarding negativism and being critical is the virtue in these organisations. At this point. 2. incorporating. A Dependent Culture: Centralisation. 5. An Achievement Culture: It is characterised by success. others are brought into the organisation.Bate in 1995. is worth running some risks for. hierarchical orientation. 6. hard work are valued here and avoiding mistakes is the hallmark of this type. An Avoidance Culture: Punishing mistakes and no reward to good work characterise this type of organisations. o HR managers should advocate a suitable approach for implementation of cultural change based on the type of cultural change planned and organisational environment. and is worth the investment of time. is workable. 7. Here. The founding core group begins to act in concert to create an organisation by raising funds. members criticize each others decisions. formal roles and seeking instructions from seniors all the time for all the activities are the traits of this culture. C. 11. 10. perfection. o This gap is due to the excessive attention paid on cultural plans and inadequate considerations of approach strategy. 9. 8. 4. arbitrariness and subjectivity prevail in the organisations of this culture.
breadth of support leads to crisis of change. not ends Collusion. 4.o The approaches: Appr oach 1. Corrosive • • • • • • • • • • • Lead to genuine and large scale change initiated by small scale network Lead to wide scale changes at an informational. Gets seduced back to status quo • 2. Continuous development Based on power and control Uses informal network Unseen manipulation High participation Act first. Aggressive • • • • • Characteristics Rapid change Dismantles traditional values New culture is noncomplex Top down monitored Detailed plans/actions Reasonable. Indoctrinative • E. Conciliative • • • • • • • • • • 3. Does not succeed in bringing about fundamental cultural change. not confrontation. Loses sight of its radical intent. logical network Advocates one world view • It Can Lead to a strong integrated culture. quiet Slow change over to new values Deals with means. How Culture Perpetuates Itself: 4 Hiring & socialization of members who ‘fit in’ with the culture Removal of members who deviate from culture Behaviour 1 Culture 3 Culture communications Culture . legitimize later Planned and programmed Explicit learning process Socializing Unified. technical level • Is used to defined existing order and oppose change initiations. 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.
Defense resistance. 7.• • • 2 Managers seeking to create culture change must intervene at these points 1 – The first thing to change is people’s behaviour. Involve employees in the change process. A positive and competitive tension is to be nurtured among department. 10. • • • • F. Check on the leadership and support processes to overcome anxiety among managers in giving up their earlier responses. Monitor the progress from time to time. Guidelines for minimizing such tensions would be: • • • • Setting realistic values for culture change. Identify the depth of culture change needed. Such removal reduces the variances in behaviour and sends to those in the organisation powerful signals relating to appropriate behaviour. Providing mechanisms for member dissent and diversity. Formulate a clear picture of the firm’s new strategy and of the shared values. Make changes from top down. Identify aspects of the current culture that could still be valid and other aspects that need to be modified or changed. Educating managers about the legal and ethical pit falls inherent in culture change. 11. Communicate the change translated into goals. through direction and training. 4. Guidelines/Checklists for cultural change: 1. Take a close look at the inner functioning of the organisation and determine if cultural change is necessary. sub-goals. 3. Not promising what the organisations can not deliver. demoting laggards and terminating undisciplined people lead to ethical and legal problems. 8. . Develop ethical and legal sensitivity. 3 – New rituals. resulting in ethical and legal problems for individual members. 2 – Indicates the cultural justification for the behaviour of the organisation’s members. The top management commitment must be seen and felt. expect certain casualties to occur – some employees may leave the organisation and a few set backs may occur to the change effort. 9. 4 – This step impacts the culture by hiring and socialization of members who match the culture. 5 – The way to reinforce a culture is to remove those organisational members whose behaviour deviates from the cultural values of the organisation. Despite this. new stories and new heroes are needed to be widely and consistently communicated. activities and behaviours. norms and behaviours needed to make it work. Culture change can ignite tensions between organisational and individual interests. Promoting performers. 6. build momentum in terms of initial success. 5. 2.
Integrated: • Cultures will be more easily recognised when their elements are generally integrated. o Cultures of varying strength: • • Can be characterised as relatively strong or weak. Distinctive: There is no best culture for all times. And elements consistent with each other. 1. 10 Characteristics of Organisational Cultures: 1. o Implicit: • Culture should be an increasingly acceptable conversation topic among employees. • Culture depends upon the organisation’s goals.• Helping them develop guidelines for resolving such issues. Employees quickly detect manager’s lip service. o Accepted: • Most members must at least accept. Management’s sayings have powerful influence on employees. industry. They must fit together like pieces of puzzle. G. • • o Stable: • Culture should not keep on changing frequently. nature of competition and other factors of environment. o Subculture: • A culture in an organisation may be made up of various subcultures. Depends on the degree of impact on employee behaviour o No one type is the best: . if not embrace the assumptions and values of culture. o A reflection of Top Management: • • Cultures evolve from top management. o Symbolic: • • Management actions are even more important to watchful employees.
1. 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. such as a manager’s error and an executive’s forgiveness. Codes of ethical conduct. Stories convey how in the past problems have been solved. Is a continuous process of transmitting key elements of an organisation’s culture to employees. • Unintentional communication of organisation’s culture to employees. Organisational socialization is like placing an organisation’s finger prints on people by planting its own genetic code on them For employees. Good stories tap into the emotions of audience. • • • • • 2. They must be able to communicate to the employees. Story Telling: • Managers are encouraged to engage in story telling as a way to forge a culture. Stories convey a sense of tradition. entertain and also teach valuable lessons. These approaches help to shape the attitudes. They prove to be powerful ways to create shared meaning and purpose. Consists of both formal and informal methods. Organisational Socialisation: • • All cultural communications are put under this umbrella. thoughts and behaviour of employees. Publicly recognising heroes and heroines. Socialization is functional for both workers and their employers. Story telling is a key means of achieving socialization of employees. Retelling historical success stories. it is the essential process of learning the ropes to survive and prosper within the firm.H. Communicating and changing culture: • • • Organisations have to consciously create and manage their cultures. It also builds organisational identity. • • • • • • • • . They enhance cohesion around key values. Memorable stories uplift people.
3. question and experiment while also not being too disruptive. • • 4. Deviation from norms) High Rebellion Creative individualism • • The two extremes rebellion and conformity may prove dysfunctional to the organisation. 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. Isolation is not productive. Individualization: • Occurs when employees successfully exert influence on the social system around them at work by challenging the culture or deviating from it. them creative individualization can infuse new life and ideas for the organisation’s benefit. 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.
continuously developing phenomenon Managers can manage culture. artifacts and declared values and be involved in all the main change phases. • • Prior to any culture change. Culture is a dynamic. Adequate resources need to be allocated to support culture change and maintain it. 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. Culture change programs must pay careful attention to the organisation’s power bases and opinion – leaders such as trade unions and employee’s association • • • Publicly recognise heroes & heroines Appoint a manager of culture Formulate Value statement . How can organisations realign culture? Architecture: • • • • • • Features of the Change There has been considerable debate as to whether culture can be managed! Lot of focus on whether or not it can be modified. once it has been achieved. senior management must understand the implications of the new culture for their own practices. Culture can be altered. abandon the culture. change culture. Typical frameworks for managing culture change: As suggested by Beckhard the general principles for successful cultural change are as follows: f) Know & understand the current values. it can be managed. 1.Train Employees Reward Behaviours Communicate Top Management Support Use Stories and Myths Use Slogans I. The reality of achieving this is very complex and organisations with similar backgrounds and similar environments develop different cultures at different situations. Top down and bottom up are two of the approaches by HRM for change of culture. prevent its change. It can be realigned to the strategic direction on organisation wishes to take. or destroy the culture. cultures. g) Work out a desired strategy and desired culture and ensure they match and congruent.
Writes on corporate excellence follow this. performance related pay are a few HR interventions for change of culture. HRD programmes like quality. provision of educations and training. To succeed. management of office space. Top-down draw backs: o Messages of initiative. In order to create a change in culture. Top Down Strategy for cultural change: • • • • Often called ‘programmatic change’ Typically initiated and led from the top. reinforce the existing culture to achieve the newly espoused cultures and values. selection and retention. o Employee believes the new culture conflicts with their existing culture. • • • 3. Typically looks towards organisation-wide consensus.• Culture change programs must take into account an organisation’s existing practices and approaches in recruitment. training. organisations need to decide how practices or procedures will be amended to support the new espoused values and contradictory practices removed.. 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. performance management and employee relations. etc. Change of organisation structure. Bottom up approach for cultural change: • • • • • Focuses on incremental approach Change is developed from bottom up. Every opportunity should be taken to close the cultural gaps. excellence. empowerment. and focusing on existing values and cultures. autonomy and innovation are usually conveyed through bureaucratic methods such as team briefings. procedures and structures support them Spread the changes out to other areas of . called ‘task alignment’ Task alignment could be achieved through a series of overlapping steps taken at the business level as shown below: 6 Evaluate outcomes of changes and amend vision and actions as necessary FINISH 5 4 Confirm changes by ensuring that policies.
3 Work towards common agreements of the vision and skills and actions to carry it forward
Work jointly to develop a vision for the future of the organisation START
Start to ensure commitment to the change by involving people in defining the problems
Focuses on parts of the organisation away from the corporate headquarters level. Emphasis on individuals shared commitment and vision as a prerequisite for change. Change is enabled by developing people’s abilities and through improved co-ordination between people. Results generate stronger commitment. The appropriateness of a chosen strategy will depend upon the organisation and what an organisation wishes through cultural change.
4. Design Parameters for cultural change:
The relative importance, weight and value will differ between organisations. What is effective or appropriate in one situation may not be in another. Bate’s development of ‘design parameters for cultural change’ Parameters Expressiveness Aspect of the organisation Affective (feelings) Description
component The ability of the cultural change approach adopted to express a new symbol which captures employees’ attention and excites or converts them.
Social components The ability of the culture change (relationships) approach adopted to create a shared common understanding and sense of common purpose amongst a group of employees or the whole organisation. Demographic The ability of the culture change component approach adopted to spread through (number/depth) out all levels of an organisation and to affect employees’ basic underlying assumptions
Development component (process)
The ability of the culture change approach adopted to adjust to changing organisational and wider environmental circumstances.
Institutional component The ability of the culture change (structure) approach adopted to create a lasting culture.
At the start of a culture change process, expressiveness may be considered more important whilst commonality and penetration are considered as less important. However, as the process continues and the new culture is spread through out at all levels of the organisation, commonality and penetration may become more important.
5. Relative Effectiveness of Top-Down Approach and Bottom-up Approaches to cultural change across different Design Parameters of cultural change: Parameters Expressiveness Level of Effectiveness of Top-Down Approaches Bottom-up approaches High – deal in simple Low in short term – focus on messages and specialise in concrete problem generates communicating these lots of detail rather than a new effectively and reasonably symbol quickly at the practice/artifact level Low – promoted unifying High – operates through feeling often ceases after shared understanding and formal program ends; methods creates a culture of trust and often lead to resistance and understanding. lack of common ownership Variable – depends on ability of interventions to affect more than just practices or artifacts: highly structured programs likely to reach all employees Low – tend to be inflexible and imply instant fix programmed nature implies conformity and devalues deviance. Low in short term – involves only part of the organisation High on long term – involves discussing proposals and implications with employees High – concrete problems lead willing to accommodate new views and find best fit with organisational requirements.
Low – based on senior management’s desires; lack of ownership by employees likely to be highest with transformational change
High – employees are keen to preserve what they have created; especially high when a development of existing practices which employees own rather than transformational change.
• • • •
• • • • • •
J. The Transglobal & Cross Cultural Contents:
A global economy is now a reality. The shape of international trade has changed dramatically in recent years with the emergence of European Community, revolutionary changes in the former Soviet Union & Eastern Europe and strong markets developing in China, India, Japan, Korea and many other emerging nations. Many organisations, now do business in more than one country. These multinational organisations add powerful new dimensions to organisational behaviour. These multinational organisations add powerful new dimensions to organisational behaviour. They encompass different social, legal, political communication and economic environments. Conditions affecting Multinational operations:
People of the world are organised into communities and nations, each in its own way, according to its resources and cultural heritage. There are similarities and significant differences. a) Social Conditions:
The two approaches effectiveness differs across the parameters. No approach is the best fit any organisation. No one approach will give everything we require. Strategy for culture change should be tailored to the requirements of the organisation at a particular time. Top-down approach brings relatively rapid changes in the organisation. Bottom-up approach takes a longer time. Managing organisational culture change is extremely complex. It needs to take account of the existing culture. Also what type of change we need – transformational or developmental WHIPP says: ‘culture is a Pandora’s box’
In many countries the overriding social condition is poorly developed human resources.
They need to recognise that the resolution of ethical issues are not always clear cut Another major issue revolves around the treatment of women and other minorities. and those trained locals become the nucleus for developing still more people. d) Economic Conditions: • The most significant economic conditions in less developed nations are: . • • • • c) Political Conditions: • The following have a significant effect on organisational behaviour: o Instability of the government o Nationalistic drives – foreigners cornered. o Subordination of employers and labour to an authoritarian state. Loaned skilled people develop others. Managers need to be aware of the possible differences in both laws and ethical values that define acceptable and unacceptable behaviours in foreign countries. Their employment practices and their business practices vary. Managers in foreign countries need to become familiar with local customs and practices. scientists and technicians. A significant social condition in many countries is that the local culture is not familiar with the advanced technology or complex organisations. Parallely vast training programs begin to prepare the local workforce. customs and behaviours. What is called as ‘training multiplier effect’ or ‘ripple-effect of self development’ comes into action. • • • • • • • • b) Legal & Ethical Conditions: • • • Countries around the world vary substantially in their legal systems.• There are major shortages of managerial personnel. Needed skills must be imported temporarily from other countries. A major issue affecting multinational corporations has been how to deal with contrasting local practices. These deficiencies limit the ability to employ local labour productively. Another social factor on which countries are often compared is the work ethic of their employees – long/short hours. Lending of skilled people to a nation for training their local replacements may provide a more lasting benefit to its development than lending the capital.
norms and values are passed on to future generations through cultural rituals. Culture may be understood as the all encompassing: o Shared beliefs o Norms o Values that guide the everyday life of individuals. Human resource practices too. As a result natives of those countries may not believe that additional effort on their part will earn associated rewards. social unrest increases. bad condition causes hurdle in the introduction of advanced technology and sophisticated organisation systems. Then. − Unequal distribution of wealth • Rapid population increases coupled with a lack of national economic growth make it unlikely that family incomes will progress significantly. Looking at social. Instead they are too well established and woven into the whole social fabric of the nation. They constrain the stability. These limiting conditions cannot be changed rapidly. others aggressively protest. political and economic conditions as a whole. legal. • • • • • • • • • • • e) Culture & Behaviours: • • • • Culture determines behaviours.− Low per capita income. Behaviour in organisational settings varies across cultures. Differing standards of living and varied geographical conditions can also cause variations in behaviour. security and trained human resources that developing countries require to be more productive. Cultural norms: • . stories and symbols. Money loses its value rapidly. Tremendous disparity in distribution of wealth starts. − Rapid inflation. Inflation makes the economic life of workers insecure. But culture is the determining factor. vary across cultures. All these factors make it difficult to motivate employees. some workers passively accept the situation. They represent a critical environmental condition to which the managers of international operations must adapt. • • • These beliefs. ethical.
hear stories and engage in rituals. • K. Spain. In many cultures. people expect reward and compensation for their performance rather than for their seniority. values and beliefs of a society to its members. Japan. Japanese find a higher value in belongingness in a group. In many hierarchical cultures (like India. − Culture is continuously reinforced when people see symbols. dividends and stock prices while Japanese companies focus more on new product development and market share. 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. Stories and rituals: − It is important to communicate the norms. etc) the meaning and value of a job lies more in the status than in the pay packet. Americans for example value freedom most. etc). • Cultural Values: − − − − − − − − − − Tell us what is most dear to our hearts. o They tell us what we can do and what we cannot. stories and rituals. • Cultural Symbols. . cultural values of the society define the meaning and reason of business and how it is organised – high profits are not a criterion – Arabs. − Culture is passed on from one generation to another through its symbols. Arab culture concentrates on their own family security and relying on god for destiny. Germany. Hofstede’s Cultural Dimensions: • A pioneering work done by Dutch Scientist Geert Hofsteds. Latin American countries Sometimes cultural differences have a direct impact on the strategic orientation of companies like USA companies emphasize on more profits. f) Culture Clusters: • • Countries that share cultural similarities form cultural clusters. People also expect recognition for seniority and age in hierarchical culture. Culture not only influences behaviour and human resources but also life style like elegance. Italy. Cultural values of the society define the meaning and reason of business and how it is organised. elitism and concern for form.o Prescribe behaviours and practices. In more egalitarian culture (like US. International business utilizes the culture clustering approach in formulating their global strategies. Cultural clusters do have some differences but similarities are predominant.
Such structures encourage and promote inequality between people at different levels. Organisations tend have tall structures. etc. Managers believe that they must adopt theory X leadership style. Australia. Have flatter organisation structures Have smaller proportion of supervisory personnel Have highly qualified people in the lower state of workforce. Canada. • In high power distance countries: − − − − − − Decision make is centralised. Everyone has a place. values and beliefs such as: − − − − − Inequality is fundamentally good. . Individualism and Masculinity/Feminity. 1) Power Distance: • • Power distance is the extent to which less powerful members of countries companies and organisations accept that power is distributed unequally.. They will have a large proportion of supervisory personnel People at low level have low of job qualifications. some are low. Norway. The powerful are entitled to privileges. • Organisations in low distance countries: − − − − Tend to be decentralized. Uncertainty avoidance. Managers believe that they must be authoritarian. 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. Countries in which people blindly obey the orders of superiors have high power distance. Germany. Those at the top make most of the decisions. Most people should be dependent on a leader. and must supervise their subordinates closely. some are high.• He identified four cultural dimensions around which countries have been clustered with people in each group exhibiting identical behaviours. • • High power distance countries have norms. must force workers to perform. The 4 dimensions are: Power Distance. • USA. represent cultures with lower distance.
• France. Fewer written rules More risk taking by managers Higher labour turnover More ambitious employees Organisation encourages employees to use their initiative and assume responsibility for their actions. • . Collectivism is the tendency of people to belong to groups and to look after each in exchange for loyalty. Brazil. Less risk taking managers. These employees have a high level of uncertainty avoidance and prefer to avoid ambiguity at work. • Countries with high uncertainty avoidance culture have: − − − − − A great deal of structuring of organisational activities. Laws are very important and should be followed. • • High uncertainty avoidance countries are characterized by norms. Low labour turnover Less ambitious employees • Societies with low uncertainty avoidance cultures have: − − − − − − Less structuring of activities. values and beliefs which accept that: − − − − − Conflict should be avoided. India. Experts and authorities are usually correct. 3) Individualism/Collectivism: • Individualism is the tendency of people to look after themselves and their family only. 2) Uncertainty Avoidance: • • Is the extent to which people threatened by ambiguous situations? Employees in some cultures value clarity and feel very comfortable receiving specific directions from their supervisors. Mexico and Indonesia are examples of societies with a high power distance. Deviant people and idea should not be tolerated. More written rules. and Consensus is important.
Work takes priority over other duties. Women usually choose jobs that are associated with short term employment. money. jobs are clearly defined by gender. Group decision making is best. especially men. India. and other material things. should be decisive. values and beliefs that: − − − − − − Gender roles should be clearly distinguished. People of Indonesia. Highly masculine cultures have norms. Promotions are based on one’s performance Decision making is an individual’s responsibility. success and money are important. People. Men are assertive and dominant. • • • • • In highly masculine societies. 4) Masculinity/Feminity: • Masculinity refers to a situation in which the dominant values in a society are success. Important decisions are made by older senior managers. and Groups protect individuals in exchange for their loyalty to the group. and beliefs which accept that: − − − • People are responsible for themselves. There are men’s jobs and women’s jobs.• • Individualism is common in US. • Collectivist countries believe. Countries high on individualism have norms. such as family. Machismo or exaggerated maleness is good. • In a collectivist organisation: − − − Tend to promote nepotism in selecting managers. Australia. . Individual achievement is ideal and People need not be emotionally dependent on organisations or groups. before marriage. Canada. Men usually choose jobs that are associated with long term careers. Pakistan and a number of South American countries exhibit collectivism. and Advancement. Denmark & Sweden. that: − − − One’s identity is based on one’s group membership. • In a individualistic organisation: − − − Favouritism shown to friends and relatives is considered to be unfair and even illegal. Promotions are mostly based on seniority and age. values.
fear of the unknown. There can be an upswing of mood upon arrival in the ‘assignment’ country that produces a ‘honeymoon’ phase. A haunting thought. ‘failure as an early recall’ may be triggered at this point. A slow negative appraisals of location and situation leads to a crisis. realities of everyday life in an alien land starts. The concept of an adjustment cycle or U curve shows that typical phases that may be encountered during cultural adjustment. • • • Phase 2: • • This is a very critical time. 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. Phase 1: • The expatriate may experience a range of positive and negative emotions such as excitement anxiety. Cultural Adjustment: • The process of cultural adjustment is a critical determinant of an expatriate’s performance. and individuals vary in terms of their reactions and copying behaviours. Adjustments to a foreign culture are multifaceted. • . The way the expatriate copes with the psychological adjustment at this phase has an important outcome in terms of success or failure.L. sense of adventure and so on. Then novelty fades off.
approaches. Gift for self/family. there is an upswing The person begins to adjust to the new environment.Phase 3: • Once the individual passes this crisis point. Culture shock is a natural response to the stress of immersing oneself in the new environment. commission Annual bonus. and applications reflect the culture of the country directly or indirectly. The table below shows the motivational approaches and cultural factors for three distinct cultures. unpredictable and uncertain environment. he comes in terms with the demands of the new environment. Factor American Management Leadership styles friendliness Control Emotional appeal Recognition Material awards Threats Japanese Persuasion. A healthy recovery is maintained The bottom of the U-shaped curve is marked by ‘culture shock’. admiration Individual Group identity Individual status contribution belonging to group class/society promotion Salary. profit sharing social services. not everyone is motivated by the same factors. • • Phase 4: • • • The upswing levels off after sometime. 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. family affair. parenthood Of others/ parenthood • • Independence decision making space. company success nationalistic. money Opportunity Group participation Religion. Motivational processes. salary fringe benefits increase Loss of job Out of group Demotion . personal attention. which is the expatriate’s reaction to a new. time. Then. functional group activities Group harmony Arab Coaching.
emotions and drives as well as their effects on other people. Leaders high on motivation exhibit remarkable commitment. self regulation. Leaders with a high level of social skill are effective at leading change. a realistic self assessment and a self deprecating humour. religion possession. Leaders with a high level of empathy demonstrates an ability to build and retain talent in their organisation. comfort with ambiguity and openness to change. • • Self awareness: is the ability to recognise and understand one’s moods. Motivation: is reflected in a passion to work for reasons that go beyond money or status. integrity. An international manager emotional intelligence. Social skill: refers to the proficiency in managing relationships and building networks along with an ability to find common ground and to build rapport. security. family taking. • • • b) Leadership in the National Context: • • In international settings. the leadership needs to be situational. material achievements. Reputation. they are: self awareness. risk Group harmony. drive to achieve and optimism. Leadership Across Cultures: • A multinational leader needs to possess certain unique qualities to become successful in global settings. motivation.Cultural values Competition. organisational • • • • • • Empathy: refers to understanding the emotional make up of other people and skill in treating people according to their emotional reactions. Also in response to the cultural and institutional context of the multinational country locations. a) EI has a set of 5 individual and social competencies. Self regulation: is the ability to control redirect disruptive impulses and moods – the ability to think before doing. • • . show a superior ability to build and lead teams and become known for their persuasiveness. freedom belonging social status N. Such responses are required while dealing with contingency factors such as subordinates’ characteristics. Leaders with a high level of self-awareness exhibits self confidence. show cross cultural sensitivity and become known for offering great services to clients and customers. Successful leadership in multinational companies requires that managers adjust their leadership styles to fit the different situations. empathy and social skills. Leaders with a high level of self regulation exhibit trustworthiness.
They are capable of motivating their followers to accept new goals and new ways of doing things. Provides goals and a plan: • • Has a vision that is future oriented. This means. Helps subordinates envision a future state of a better organisation. T Leaders are visionary agents with a sense of mission.O. The transformational leader has following attributes: 1. Challenges subordinates to find new solutions to old problems. Subordinates share a commitment to radical change. TL is effective in any organisation anywhere in the world. 4. Universalism in Leadership/Transformational Leadership: • • Universalism of leadership is a new concept. Breaks from the status quo: • • • Has a strong desire to break from tradition An expert in finding ways to do things differently. TL represents a higher level of leadership. Provides clear steps for followers to transform the company. • • 2. whether or not effective leaders act similarly regardless of their respective culture. 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. Or a cultural context so that subordinates see the need to follow the leader’s ideals. Gives a meaning or a purpose to goals: • • Places the goals in emotion – laden stories. • • . 3. Transformational leadership is projected as an approach which can cut across all cultural barriers.
6.5. respect and admiration of followers. Individual differences (also refer Hofstede’s theory given earlier) • High context cultures such as China. Korea and Japan tend to emphasize personal relationships. However. Jesus Christ. Transformational leaders succeed because subordinates respond to them with high levels of performance. place high value on trust. Conduct business first and value expertise and performance Lack of attention to these factors results in costly failures for expatriates. Muhammad were among the first transformational leaders. Impress upon the need to attend to social needs before business matters. He called this leadership as ‘Charisma’ And noted that existed in all cultures. 8. Demonstrates high ethical and moral standards: • • • Behaves consistently and fairly with a known ethical standard. Displays strong enthusiasm for the leadership role. personal devotion. USA and Scandinavian countries. reverence. He said. • • • • • • P. focus on non verbal cues. Max Weba. excitement regarding the leader’s ideas. Tend to rely on written rules and documents. Is motivated to lead: • • • Seeks leadership positions. Transformational leaders are not new to the present century. true transformational leaders are rare. Low-context cultures such as Germany. Barriers to Cultural Adaptation: 1. Builds a Power Base: • Uses personal power based on expertise. Most people also consider MK Gandhi & Martin Luther King as representatives of transformational leadership. • • • • • . Takes risks: • Is willing to take more risks with the organisation than the average leader. a German sociologist recognised the existence of this leadership throughout history. and a willingness to sacrifice for the good of the company. Acts as a role model 7.
Ethnocentrism: • Another potential barrier to easy adaptation to another culture occurs when people are predisposed to believe that their homeland conditions are the best. Further productivity from local employees is also reduced. . In order to integrate the imported and local systems. This is an appreciation of the contribution each culture make to overall success. In effect they are assuming that the two cultures are more similar than they actually are. This new social system affects the responses of all persons involved.2. 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. they tend to conclude that the impact of those differences is insignificant. • • • • • • • 3. Even if they do. expatriate employees minimally need to develop ‘cultural empathy’ This is the awareness of differences across cultures. They fail to recognise the key differences between their own and other’s cultures. They see the situations around them from their own perspective. • • • 4. This is the understanding of the ways in which those differences can affect business relationships. Managers and employees who come to a host country exhibit a variety of behaviours true to the citizens of their homeland. Many are predisposed to parochialism. This predisposition ‘ethnocentrism’ is known as the ‘self-reference criterion’ or • • • • It interferes with the understanding of human behaviours in other cultures. 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.
Third phase: critical stage. They may not know how to act. the new environment can appear to be chaotic and somewhat overwhelming. or emotionally upset. The new environment may be as systematic as the culture of the employee. that of ‘adaptation’. which is ‘insecurity and disorientation’ caused by encountering all sorts of different cultures. They should dedicate themselves to learn the new culture and adapt to it. ‘disillusionment’ as they discover various problems they had not anticipated regarding travel. • • 5. The employees who move to new job locations of the experience various degrees of ‘cultural shock’ Which is a feeling of confusion. they accept the new culture. First phase: they are excited and stimulated by the challenge of a new job. 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. may fear losing face and self confidence. home and culture. regain a sense of self esteem and respond constructively to their new surroundings at work and home. Fourth phase: if they survive the first few weeks. Cultural distance affects the responses of all people to business related issues. they will reach the fourth phase. it can be understood if employees have receptive attitudes. tend to suffer cultural shock. shopping or language skills. Cultural Shock: • Companies often assign employees to new job assignments in different areas to provide them with invaluable breadth of experience. For unprepared employee. Ethnocentric problems may be magnified by cultural distances. Cultural shock is even greater when an employee moves from one nation to another. Although it is different. Second phase: positive attitude is soon followed by. insecurity and anxiety caused by a strong new environment? They fail to act properly and lose their self-confidence. • • • • • • • • • • • • • • • • • . At this point.• Cultural distance is the amount of difference between any two social systems and may vary from minimal to maximal. Such shocks are in four phases. Such shock is even greater when an employee moves from one nation to another.
• • Cultural shock is virtually universal. Brazil & India do not fall into any group • 3. Mexico. Chile. Belgium Latin American – Peru. France. They should have a desire to live in another nation. Sweden. Austria. China. Australia. Venezuela Pacific Rim Cluster – Japan. Switzerland. Korea Central European Group – Germany. Italy. Pre-departure Training: . UK. Overcoming Barriers to cultural Adaptation: 1. Potential employees should have a capability to learn the new language quickly. Denmark Latin European – Portugal. especially on their first international assignments. may be chosen They should have a desire to experience another culture. • 2. Compatible Assignments: • Adjustments to new surroundings is easier if employees. are sent to nations that are similar to their own. Finland. New food Separation from friends and relatives. NZ Nordic group – Norway. etc. Q. An attitude to learn the new culture and the family culture is necessary. Taiwan. Israel. Careful Selection: • • • • • Employees who are low in ethnocentrism and Who are less prone to troublesome characteristics. These are grouped into 6 socio cultural clusters: − − − − − − − Anglo American – USA. Different management philosophies. Hong Kong. It occurs in response to: − − − − − − − − − − − − − − Dramatic differences in languages. Argentina. Forms of country Customs Housing conditions Privacy Time Activity HR Practices Currency Work attitudes Strange language. Canada. Spain.
transportation and shopping. customs. power in host country best less in home country. 4. culture. better positions. coming back to their homeland culture – needs time to adjust. After enjoying a new culture.• • • • • • Learn the local language Helps to reduce. Extra pay. inconveniences. Support for intensified need deficiencies like financial difficulties. Training includes – geography. Faster cultural adaptation. Companies need repatriation policies. Orientation & Support in the New Country: • • • • • • Efforts to quickly settle the employee and family. The local national working for the same organisation can also assist. insecurities. Creates better impression. lesser misunderstanding. • • • Forces inhibiting and supporting cultural adaptation: Inhibiting Forces Supporting Forces . A mentor may help a lot during transition. Better communications. separation from relatives and friends. position. The previous job holder may also stay back for sometime and assist. Preparation for Reentry: • • Repatriation has to be smoothly blended. language and political environments. Better autonomy emoluments. fringe benefits. personal and organisational costs. Assistance in housing. Often tend to suffer cultural shock in their own homeland – reverse cultural shock. • 5.
.Individual Differences Parochialism Ethnocentrism Cultural distance Culture shock Cultural Adaptation Careful Selection Compatible assignments Pre-departure training Orientation & support Preparation for reentry R. They include: • • • • • • Relative values for time efficiency Values of life Eye contact Posture Meaning of silence Language • • • • • • Thought patterns Personal space Physical appearance Gestures Legitimacy of touch Clusters • They are very important contingency factors. Non-verbal communication is called as cross cultural communications. Cross Cultural Communications: • • • Besides verbal communications. non verbal communications are also important.
Change gives rise to emotions. deny or suppress emotions at work. Change is always a threat when done to people. DEALING WITH INDIVIDUALS: • The strategy for change are implemented through three change levers. Managing change. which are o Structure o Process o Culture • • If people within the organisation do not change. both Change is resisted as much as stagnation is Continuity without change leads to stagnation. • • • • • • • . seems to lie in making them choose it. To make an individual choose change. then. Change that is internal to an individual is far better accepted than change externally imposed. we need to understand what factors make him prone to it and what prompts him to resist it. boredom and frustration Change without continuity or stability leads to ambiguity. a) Human Response to Change: • • • • Individuals fear and seek change. means learning new skills. These emotions can vary from being intensely negative to being appreciably positive. Individuals tend to perceive change as a discontinuity. to be avoided or coped with Individuals may not resist change. and − Tuning the organisation to change.III MBA – CHANGE & KNOWLEDGE MANAGEMENT MODULE 4 – CHANGE MANAGEMENT G. while abandoning the familiar. 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. Change is intensely personal. feel or do something different. The strategy to make people to accept change. accustomed and proven ways of doing things. and new routines. For change to occur in any organisation. but an opportunity when it is done by people. therefore. and acquiring new relationships. the organisation can not change. each individual must think. Change may be perceived as an opportunity or a threat. Hence it is difficult to impose change. requires managing employee feelings to generate positive excitement for the intended change and change process. to many individuals. conflict and the inability to cope with the situation. Organisations can not ignore. What they resist is being changed.
11. have fear of failure and feeling of incompetence. Support the change process with adequate resources. 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 . behave to maximize win.Any change is as good as the willingness of the one affected by it. Individuals can manage change well if it gives them positive emotions rather than negative emotions. minimize loss and want to have a control in their behaviour. The above are intrinsic to the change management process. and are not afraid to think and act differently to make change happen. The organisational leadership has to examine the following also during the initiation of change. Build a positive imagery for its employees of the envisaged change to reflect a better future. namely: Aggressive resistance Passive resistance Neutral Campers Passive acceptance Active involvement Quitters 12. b) Dealing with Individuals for Change Management: • • Create a culture where employees seek change. Change should not be what happens to them in the organisation but what they can make happen in the organisation. When such supportive structures exist. Employee attitudes for change: • • • • • • • • • • Individuals tend to fall into any one of the attitudinal continuums. Individuals. They avoid risk. 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. often. process and facilities.
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. .• 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. Or oppose disliked bosses who are in favour of change. monetary and other benefits. job nature and opportunities to contribute to and determine the change process. The benefits could be: security. 13. Others still find the old practices that have evolved overtime. Loss of Status and authority: v) • • Change may lead to the relegation of one’s job to lower levels in the hierarchy. personal satisfaction. status and authority. Their ideas have not been sought for Some others are very sensitive about ‘change’ since they have wrong or incomplete information. May be loss of one’s authority and power. Some think. Seen as a challenge to one’s authority. Reasons why people accept change: • • People welcome change when it benefits them. Challenging Authority: viii) • • Some people resist change to challenge authority. it questions one’s capabilities and performance. 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. The way that change is introduced may also not be to everyone’s liking. the best.
Integration: • • A number of quantitative & qualitative techniques are available. we have to deal with the above components. Surveys like questionnaires. Creative and intellectual energies of the individuals should be diverted to the change initiatives of the organisation. To overcome resistance. A feeling of dissatisfaction to be generated with the existing state of organisation. intelligence and judgement – in managing the change. conative and affective dimensions. interviews and observation methods are useful. • • • • • 16. We gave to deal with an individual’s attitude to overcome his resistance to change. Cognitive refers – one’s perceptions. • • • . Dealing with individual resistance to change: • • Individuals need to be motivated to accept change. Affective refers – one’s emotional component of likes and dislikes. It is the individuals who work within the structures and systems and on the tasks and processes. The idea that a change is good for everybody should be driven home. who make the change to happen and achieve highest levels of performance. beliefs and values Conative refers – one’s action tendencies.14. they alone are not sufficient to bring in the change. Individual – focused approaches to managing change: • Though appropriate structures. This classifies individuals into different categories in the attitudinal continuum. • 15. systems and processes are necessary. Attitude consists of cognitive. Organisations have to deal with individual attitudes and behaviours to tap individual wisdom – their experience.
17. to ACCOMMODATOR OPPORTUNIST CONFORMIST OSTRICH VANQUISHER Initiator of change actively involved. low conflict – tolerance level. Natural. resistance impulsive. adventurous. self-centrical cautious. consistent. self sacrificing. dynamic. high fear of uncertainty and failure. impatient. retaliative. but can be positive or negative depending upon his advantage. If opposing change. social. cooperative. poised. Reckless. formalized. critical. selfreliant. brash. to change defensive. determined. task-oriented. acceptance when sensitive to failure and punishment. scheming. individualistic. High in change rigid. overbearing. short-term – perspective Behavioural Description Diplomatic. cordial. respects authority. persistent. systematic. rigid. forceful. low self confidence. dogmatic. Personality types and their general response to change: Type SQUEALER BRAVADO Response Change Highly emotional. Receptive. moralistic. aggressive. shy. stubborn. silent. co-operative. amiable. withdrawn. trustful. high fear of failure. predictable. enthusiastic. inclined to oversell. cold. demanding. resistance to argumentative. Slow. stable. patient. Passive resistance aloof. Aggressive risky. plays to his advantage. dependable. unable to face problems Receptive. unambitious. Passive acceptance active involvement. low conflict – tolerance Aggressive level. unbending. self-centered. predictable. integrative of other people’s ideas. independent. indecisive. he can resist it actively. relation oriented. respectful and fearful of authority. superficial. persuasive. Brave. warm. high sense of achievement. self change is critical. secretive. less moralistic. trustful. patient. . skeptical. conservative. overly dependent. decisive. change non-companionable. stubborn. convincible. optimistic. stable.
It is not only what managers say. send signals to others in terms of their fourth and commitment to the change process. Explaining the nature and direction of change: • • The change process has to be clear. positive. realistic. Communication: • • Effective communication is fundamental to change management. To create readiness in an individual for change. but what and how they do. • • • • • • 2. Behaviours of senior managers influence employees’ perceptions and beliefs. Top management should be committed to the intended change. • • STRATEGIST . persuasive convincing. opinions and beliefs often act as the precursor to one’s response to change. well knit and integrated. capable of empathy.Inventive. fears and expectations. open minded. problem solver. Employees cognize the explicit and implicit behaviours exhibited by senior managers. • • Cognitive Changes: Change Mechanisms: 2. equalitarian. receptive. This has to be done individually and in groups. original. Employees have to be aware of the focus. Responsibility of each person in relation to the company’s strategy has to be understood. interpersistent Active self involvement and capable of involving others in the change process. self-reliant. c) Managing change: The Cognitive Dimension: • One’s own perceptions. the company strategy and its competitive advantage. his/her cognitions have to be positively influenced. scope and expected outcomes of change. Such a talk gets a feedback from employees regarding their hopes. It is important to communicate the intended change and the reasons for it in advance and as completely as possible. integrative of other people’s ideas. Core competency required and plan of action for managing change has to be clearly stated. Cognitive changes tend to occur in individuals when information is presented in a logical and coherent.
• • • • • • • • • o Employee Training: . • • • • • • o Creating a Common Value Orientation: • • Values are basic to human behaviour. they tend to form a benchmark for individuals to adopt. 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. Value may be generated by discussion and active employee involvement at all levels in the organisation. Values tie together people. If not. The messages must be credible and take a variety of forms. Once a set of values are collectively agreed upon. all our vision and mission statements are only decorative pieces in the corporate lobby. Oral persuasive communication is carried out through speeches. precise. 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. Written communications are through specific written documents. Values agreed upon should be documented. Non routine communications are through media. These values have to be shared and imbibed by all through out the organisation. It employees have to be attended to change. communication should lead to optimism. modify and realign their personal values.• Communications about change have to be clear. 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. These values are based on group and individual behaviours and also the work processes. hope and a positive outcome. These values enable and stable and trustworthy relationships. reliable and perhaps repeated and number of times to drive home its importance and the depth of the management’s commitment. systems and processes.
Vicarious learning is facilitated by study/observation trips to innovative organisations and further involving employees in benchmarking their best practices. Employee training sets the supportive climate for change management when it is competency driven for the current and future demands. Knowledge provides a competitive advantage.• Competitive organisations required knowledge workers who are capable of performing jobs related to corporate goals and market needs and demands. Employees should be considered as a resource. Building effective teams takes years. Desire to acquire information. It provides opportunities for employees to learn by their own activities and to exercise control over the outcome. organisation and employee competency. Current skills have to be assessed and future skills needed for the business determined and the training skills decided to bridge the gap. Participation needs to be managed carefully or else it creates more problems. not a cost. To be successful a climate of interpersonal trust and open communication should prevail within the organisation. needing constant monitoring and reviewing. Training should be run like business. . • • • • • • • d) Managing change: The Affective Dimension: • • Individuals fear and seek change. both Change affects human emotion. ‘Vicarious learning’ – where employees observe organisations that have benefitted from implementing new or innovative techniques and practices. Urge to accomplish Preference with passion • • • • • • • o Participative Management: • Facilitates the release of one’s inherent enthusiasm and creativity for the benefit of the entire organisation. Training should bring forth: Inherent talents. New ways of training employees aimed at thinking skills and multiskill development have to be planned. knowledge and skills. delivering value to the work process. It prompts the people in the direction of group support and leads to acceptance of change.
employee empowerment depends upon a number of factors. 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. − Demonstrating some of the benefits of change early in the change process. It is the integrating of ownership. and feel responsible for improving organisational performance. o Commitment on the part of top management in real earnest. A personal sense of ownership motivates employees to take the initiative. Company shares may be given at concessional rates. To be successfully implemented. The approach promotes a binding relationship. • • • • . − Addressing avoidance learning – focusing on intended change as the only alternative to avoid/overcome fear or insecurity. Stock ownership may be performance based. − Creating positive feelings about the desired state and the change process. • • 6. it has to anticipate individual feelings about the intended change and deal with their emotions in positive and constructive ways. Employee empowerment: • • To empower is to give autonomy to an employee enabling him to make decisions on his job and accountable for his actions. − Focusing on the benefits of change at the individual level. generate productive ideas.• If an organisation has to implement change. authority and accountability at work. o Are employees suitably trained to be empowered? o Is the organisational culture & climate conducive for empowerment? o Do the employees perceive meaningfulness in what they do? o Is the information shared to empower the people? o Sustaining employee empowerment. Affective Changes – Change Mechanism 5. Dealing with human emotions could be in terms of: − Creating feeling of psychological safety about change. 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.
Financial rewards and financial health are tied up. 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. These negative emotions must be understood to successfully handle.• For success trust between the employee and management is necessary. Organisations should create a meaningful reward system. Employees are also given to understand how much they contribute to. how much they cost to the company. Rewards are financial and non-financial. not all rewards are same) • • • • • The major demotivators are perceived unfairness in dispensing rewards. 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. Compensation System: • Managing change through people behaviour is possible when the desired behaviour is appropriately rewarded. • • 7. Types of rewards − Power rewards (higher responsibilities) − Pay for performance − Pay for knowledge and skill • 8. Some of the ways to do this are: o Empathy o Modeling o Shock therapy o Mentoring o Manipulation o Employee counseling • • . Dealing with negative emotions: • Some employees may have negative emotions towards the intended change.
• • • • • • 2. constantans improves actions. Action learning is a social process. starts. Employees today should be enabled to perform a variety of tasks rather than a few limited jobs. Emphasis on action learning in implementing change: • • • Learning occurs with actions. Tohat are the factors for change under conation? 1.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. a new role relationship. Clarifying Contractual Obligations: • • Change benefits the organisation. there is a mutuality of interest. wherein an employee can switch periodically from one job to another. The psychological contract has two dimensions: the personal goals of a human being and the organisational goals. For every employee there is a psychological contract with the organisation – may be explicit or implicit. no actions without learning. too. Cross training provides a flexible force and flexible factory. accepts supportive criticism for improvements • • 3. a new job contract is necessary to be made which aligns with overall corporate strategy which the employee must understand and agree after discussions with the management. solves task related problems. Therefore. Now. Such skills can come by cross training. • • • . 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. Job activities and responsibilities have to redefine due to the change management and changes in the job design and performance. Where the employee accepts his job duties and responsibilities. Cross training facilitates job rotation. Cross Training: • • Training is provision of information and skills. change benefits the employee. Mutuality is the basis for the release of human energy for effective change management.
Employee elasticity: Stretching the Potential: • • Good HR stretch employees to the maximum of their potential ability to work. and activities together form the organisation structure which supports the organisation. Within the limits of ‘mental elasticity’ human capabilities at work could be stretched to the optimum to meet the global business competition. o The people in the organisation structure. 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. • • Supporting climate – learning environment: .• With this the employee brings a fresh perspective to each job in addition to what has learnt already. An employee’s career path need not be limited to vertical mobility. 4. there should be the necessary support structure. systems. Stretching employee potential facilitates change management. modify and develop are important. Supportive climate – Organisational design: o Organisational processes. thus slowly stepping up one’s self confidence. the way they adapt. etc. Create the right climate for optimizing employee performance: • To create the right climate for employees to take an active interest in the change process and achieve the intended results. Success of cross functional training depends upon employee willingness to learn new skills on the job. • • • • • Positive attitudes to such training is built if employees are rewarded for acquiring new skills. Cross training can be across different functional areas like finance and marketing. It also solves the shortage of manpower. Any kind of mental stretching should be done gradually by exposing one to changes of graded difficulties. a learning environment within the organisation and the free sharing of information. 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. • • • • 5. It could also be diagonal.
o Employees should know what the company plans are. o It empowers people and performance improves. the group begins without an agenda. CHANGE MANAGEMENT – DEALING WITH GROUPS: • For successful organisation change. The training may vary in duration from a few weeks to few hours. a structure. H.− Organisations should create a learning environment where people can acquire advanced knowledge and skill. away from their usual roles and responsibilities. The primary target of managing change would be the group itself and the relationships among its members. initially as strangers. o Sharing information raises the level of employee trust in the organisation. how the company is doing. unrepresentative of the group memberships and move quickly into an exploration of group processes and leadership. • • • • • . and any division of labour or rules of procedures. The major forms of group-based changes are: o Sensitivity training. − The present day business needs speed. the change management should consider individuals as well as the group in which they work. • Supportive climate – information sharing: o The commonest way of bringing about change in employee attitudes and performance is through information sharing. Initially. perhaps ambiguous. T-group is an ad hoc assembly of individuals who meet together. situation is created and the group is encouraged to experiment with new individual behaviours and group interactions. The trainer plays a relatively passive role in the training process. whey the company needs change and what they should know additionally to perform better in the changed scenario. flexibility and innovation in all activities. o Team building o Self-managed teams 1) Sensitivity Training: • • • • Also called as T-group training. They enter the group as peers. An unstructured.
They become sensitive to the action of others.• The people in each group are strangers to each other. . Encouraging one to try out new ways of interacting with people and receiving feedback. 2) Team Building: • A team is a group of individuals who tend to work interdependently to satisfy organisational as well as their own individual objectives. Thus. Teams have the following characteristics: − − − − • A reason or charter for working together. Understanding why people behave the way they do. The trainer initially observes: − − − − • • Problems of communication Attempted seizures of power Misunderstandings Other phenomena of interpersonal life. • • • • • • • The trainer communicates these observations to groups. Absence of an agenda initially creates a vacuum and often quite uncomfortable. • Sensitivity training is good for change planning and implementation. the interventions through sensitivity training aims at the following: − − − − − • Understanding of one’s own behaviour and how one’s behaviour affects others. Members gradually begin to attend to such matters themselves. Understanding group processes. brought together only by the common goal of learning more about themselves. Interdependency – where the skills. Members emerge with a restructuring of their values about people and their operations in group settings. Developing increased tolerances for other people’s behaviour. Commitment to and belief in working together. the impact they have on others. They slowly correct their faults. Accountability – for their performance. They attain increased sensitivity to their own behaviours. abilities of individuals are mutually supportive. • Individuals join teams for a variety of reasons: − Out of the herd instinct. They become sensitive to the nature of group development.
• 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. Promotion of scientific inquiry in addressing issues and problems. − Improving performance qualitatively and quantitatively. From group compulsion. − Deciding on means and methods. and Accountability – where one is accountable to superiors or the top management for achieving the goal. • The value base of team lies in: − − − − Belief in a democratic work environment. In the hope of personal gains. Due to a rational belief to joint effort. From a sense of duty. • 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. Concern for the development of individual potentialities.− − − − − − • To overcome one’s fears and insecurities. From the inability to say no Teams have the advantage: − Of improving up and setting goals and priorities. Commitment – to achieve the goal through group effort. Interpersonal trust. .
• • • • The stages are the result of a variety of questions. − Listed to others. They do represent a broad pattern. Begin turning their attention to group’s tasks. g. k. h. d. Start to get to know and accept one another. External pressures interfere with the group. Tensions rise between the individuals. j. − Acknowledges interpersonal conflicts and deals with them positively. Individuals try to assert • • • • • • Who are these people? What is their unique competence? What information should I share with them? Will they accept me? What is our mission? How to we develop team spirit? What resources are available to us? What problems do we foresee with the team? 2. − Includes others in the decision making process. Jockey for position of relative control Argue about appropriate directions for the group. Also referred as: Dependence Acceptance Orientation & hesitant participation Testing inclusion Also referred as Counter dependence.− • Overcoming barriers to effective team functioning. i. Forming: a. An effective team member is one. shows empathy. b. − Recognizes and respects individual differences. They may be observed and predicted in many settings a cross the team’s time together. Members compete for status. concerned and interested in others. d. b. Data flow Conflict. c. Storming: • • • • • . e. f. who: − Understands and is committed to group goals and values his/her team membership − Is friendly. a. Characteristics Members share personal information. c. is understanding. 3) Team Development Stages / Life Cycle of a Team: • When a member of individuals begin to work at interdependent jobs. goals An aura of country Interactions are cautions High degree of motivation. issues and characteristics as shown below: Key questions faced • • Developmental stages 1. and values the ideas and contribution of others. they then pass through several stages as they learn to work together as a team. These stages of team development are not rigidly followed. dominance & rebellion Inflighting Listening and experimenting f. e.
Group may review its performance. a. Groups norms guide individuals. Break up is called adjournment. Tasks are efficiently accomplished. More co-operative feelings. Groups. Handles complex challenges. • Openness. Tentative balance among competing forces. 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. a. c. c. 4) Ingredients of Effective Leadership: • • A process of dealing with members’ aspirations and expectations. 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 • . Feedback for future teams. Functional roles are performed.• • • • • • • • • • • • • Control What do we 3. b. Group begins moving together in co-operative fashion b. 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. Norming believe in? Also referred as: What behaviours • Resolution do we expect of • Goals and each other? norms What should we • Integration be doing? • Intimacy. e. Performing contribute to our Also referred as: success? • Performance Should we take • Productivity risks? • Mature Have we been closeness empowered to • Achievement succeed? How can we change and grow? How can we 5. Group matures and learns. b. affection What actions will 4. a. e. Functional roles are also smoothly exchanged as needed. d. d. d. project teams disband sooner or later. In flexible organisations adjournments are more frequent. c. How will we closeness & control each cohesiveness other’s actions? • Getting organised.
trust and compatibility Skills & Role Clarity: − Team members must be reasonably qualified to perform − They should have a desire to co-operate. Team Rewards: − − − − − Stimulates teamwork Recognition or financial Most powerful if they are valued by team members. Encouraging members to think like a team. 6) Potential Team Problems: . • A leader needs to exhibit greater transactional skills in the initial stages of group formation (first & second stages) Later. Administered in proportion to the team performance. 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. as the group matures. • 5) Ingredients of Effective Teams: • What contributes to team success o o o o o o Careful composition Clear direction Accountability Integration & co-ordination Innovativeness Scope for learning o o o o o Information sharing Measurable goals Sufficient resources Flexibility Stimulation of openness • Four Major factors are: Supportive Environment: − − − − − Management to build a supportive environment.o Enables a leader to get a job done successfully. focus attention. Demonstrating faith in members’ capacity to achieve These steps contribute to further co-operation. more transformational skills are required. Providing adequate time for meetings. − All members carry their weight. Super-ordinate Goal: − Team members should be oriented towards their overall task. unify efforts and stimulate more cohesive teams.
The combination of empowerment and training to plan. Interpersonal trust. Social loafing may also arise if a member believes that others intend to withhold their efforts and thus he would be foolish not to do the same – The Sucker Effect. Develop a plan for team turnover right from the start. Integrating new members into the team is also important. Individual and mutual accountability A result focused performance • • • . • • • • 7) Self Managed work Teams (SMT or SMWT): • • • • An empowerment tool Also known as self reliant or self-directed teams. direct. Since team’s composition is likely to change frequently due to various reasons. complied with the capability to act like manager. they may lessen their output and engage in social loafing. It is a feeling of being able to hide in a crowd and therefore not be able to be singled out for blame.Changing composition: • Being complex and dynamic teamwork is sensitive to all aspects of organisational environment. • • • • • Social Loafing: • When employees think that their contributions to a group cannot be measured. teams must learn to manage their internal turnover. Participative discussions. They are asked to control specific behavioural or operational activities and produce significant results. Social loafing is based on a perception of unfair division of labour. SMTs are characterised by: − − − − − − − Goal setting through team effort. Accept the turnover and plan for it. They have wide ranging autonomy and freedom. A multi-skilled workforce Shared leadership through team meetings. monitor and control their own activities distinguishes these teams from many others. Too many changes and personnel transfers interfere with group relationships and prevent the growth of team work. They are natural work groups that are given substantial autonomy. It is a belief that workers are lazy.
− Higher level of organisational commitment and job satisfaction.− Active problem solving. suggestion systems Consensus decision making. • SMTs have several advantages: − Improved flexibility of staff. 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. − Faster synergetic performance − Enhances individual and team capacity − Lot of scope for innovations − Pushes responsibility down to the lowest levels. • SMTs have the following disadvantages: − − − − Extended time to implement them High training investment Inefficiencies due to job rotation. Inability of some employees to adapt to a team structure. 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. − Lower absenteeism and turnover rates. self managing teams. . • 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. − Promotes collaborative work relationships.
• Employee resist change because it threatens their: − − − − − Need for security Social interaction Status Competence Self esteem a) Nature & Effects: • The perceived threat stemming from a change may be . inexpensive car. The success of cross-functional teams. Cross-functional teams are of great assistance in designing and prototyping new models and products. − Ensuring early success to generate enthusiasm and greater belief in team effort. ‘Taurus’ team at Ford Honda. engineers and even factory workers on whom rests the total responsibility for the development and manufacture of a single product. Effective management of relationships among people of diverse backgrounds and work cultures. I.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. in 1978. depends upon: − − − − Setting achievable goals Gaining commitment from team members Setting ground rules for team activities. • • • • • Most auto companies today employ ‘platform teams’ that consist of a core group of designers. RESISTANCE TO CHANGE & OVERCOMING IT: • Resistance to change consist of any employee behaviours designed to − Delay − Discredit − Prevent the implementation of work change.
sometimes. . 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. Some perceive as gainers due to change. set up a ‘chain reaction effect’ also. Threats to job security. May reject an insensitive and authoritarian approach that did not involve them in the change process May be a perception of poor timings. Particularly employees too have a desire for new experience and the accompanying rewards that come with the change. depending upon how skillfully it is managed to minimize resistance.o Required o Unintended o Large • o Imagined o Direct o Small o Intended o Indirect Regardless of the nature of change. some employees will try to protect themselves from its effects. Second • • • • Third • • • • Their resistance will be even more intense if all the 3 reasons exist. Changes. People resist because of the fear of unknown. A lesson to management is: change is likely to be a success or a problem. − Dislike the method used. The method by which it is introduced People may resent having been ill informed. − People disagree with the nature of the change. ‘Change’ does not respect blue or white collar. • • 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. Inequity of the people’s experience Some perceive as losers due to change. − Do not see a personal gain for themselves.
Parochial. have a positive feeling towards change and feel secure enough to tolerate other changes. Then only employees will accept change co-operatively. logical. . Economic costs of change. 8. Desire to retain existing friendships. • • • • e) Possible benefits of resistance: • Resistance is not all bad. it may need to use authority.c) Types of Resistance: (3 types) 6. If authority is overused. Psychological. full support may not be expected all time – may be weak. it eventually becomes worthless. emotional resistances: • • • • • Fear of the unknown. In a typical operating situation. Dislike of management or other change agent. moderate or opposition – form all people. human – all 3 have to be faced and solved. group resistances: • • • • • Political coalitions Opposing group values. Questioned technical feasibilities of changes. 7. Low tolerance of change. We must recognise that authority can only be used sparingly. Technical. d) Implications of Resistance: • • • • All 3 types of resistance must be anticipated and treated effectively. What is important is: create a genuine climate when people trust management. narrow outlook Vested interests. If management cannot win support. such as skill downgrading. Need for security. Logical. Sociological. rational objections: • • • • • Time required to adjust. Lack of trust in others. desire for status quo. Extra effort to relearn Possibility of less desirable conditions.
Resistance creates checks implementation of change. Resistance may encourage management to reexamine its change proposals. Resistance also gives management the information about the intensity of employee emotions on an issue. There are 6 approaches to manage the resistances as given below: Each has its own advantages and disadvantages. 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 . Such a release encourage employees to think and talk more about a change so that they understand it better. It enables management to take corrective actions much before serious problems arise. and balances and ensures proper • • • • Resistance also identifies specific problem areas. Commonly used in situations Education + Communication Once persuaded. This approach in the long run should lead to better acceptance of change. • • • • • f) Managing Resistance: Kotter & Schlesigner “Choosing strategies for change”. 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. That may encourage management to communicate the change better. It provides an emotional release of pent-up feelings. So that. it is made certain that the proposals are appropriate. Hurdles to change need to be managed.• • It can bring some benefits. • • • • Change is necessary in a competitive environment.
OD stresses an collaboration among all levels. most OD are oriented towards group. BUILDING EFFECTIVE CHANGE INITIATIVES: 6. group dynamics. . f) Emphasis on Intervention: active intervention of the change agent in the ongoing activities in the organisation. g) Collaborative Management: unlike the traditional management. J. Change: involving total system and the entire • c) Emphasis upon Work Groups: some OD efforts are aimed at individual and organisational change. The basic characteristics of OD are as follows: a) Planned Change: also called as change intervention. d) Long-range Change: OD is not a stop gap arrangement. organisational objectives. h) Organisational Culture: includes – accepted patterns of behaviour.fail. etc. culture of each organisation must be understood and the relations consist with that culture must be developed. systematic process of organisational change? OD draws from psychology sociology and anthropology theory OD also relies on information from personality learning theory. motivation theory. It takes months and years. value systems. b) Comprehensive organisation. e) Participation of a Change Agent: It is generally advised to avail the services of an outside expert. having a sociological flavour. if it the change initiators possess overcome any kind of leaves people angry considerable power resistance at the initiators. Where other tactics will not It can be a relatively Can lead to future work. having the overall system perspective in view. norms. 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. Negotiation _ Agreement Where someone or some Sometimes it is group will clearly lose out in relatively easy way to a change and where that avoid major resistance group has considerable power to resist Manipulation _ Co-operation Can be too expensive in many cases if it alerts others to negotiate. Organisational Development: • • • Is a planned.. power leadership and organisational design.
A typical change strategies and associated HR Initiatives: Types of change strategy HR Activities Advantages Disadvantages . Initial top-level involvement. power structure) Structure and the role in organisation. Monitoring the process and the measuring of results. educational philosophy about the theory and technology OD. gathering and analyzing the organisational data and taking actions to resolve problems. Acknowledgement of the congruency between OD and many previous effective management practices. The introduction into the system of a behavioural science consultant. The operationalising of the action research model. Pre-requisites for organisational development: • • • OD must fulfill certain conditions if it were to be effective.i) Action Research: A process of identifying the organisation’s specific problems. Effective management of the OD process and stabilization of changes. An open. • • • • • • 9. including the formal leader. It is not a guarantee for success of OD But favourable environment conducive for organisational change will be created. To reduce the negative effects in an OD program. Trust and support among organisational members Synergetic solutions to problems. Motivational level of employees. Situations appropriate for OD programs: • The organisation’s managerial strategy (communication pattern. Further expansion of efforts after the early successes. Involvement of personal and IR/HR management people and congruency with personnel policy and practice. Development of internal OD resources and facilitative skills. decision making) The culture of the organisation (norms. Participation of work teams. the following criteria are to be satisfied. • • • • • • • • • • • • • 8. Intergroup collaboration. 7. values. Perceptions of organisational problems by key people and perceptions of the relevance of the behavioural sciences in solving these problems.
Education & Employee Involvement • • • • • • • Changes personnel in • • • Management development Employee training. etc. b. Slow Expensive May meet resistance through negative attitudes to change. • • Impact Speed • • Changes structures systems to and • • • • • Changes to organisational structures including employee accountabilities. c. 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. likes change workshops Quality group programmes Joint consultation Team briefing and other forms of employee communications Performance management Employee counseling Severance Redundancy programs Recruitment and selection • • • Greater sense of employee ownership Fresh ideas introduced Longerlasting change • • • • Time consuming. Some changes are through government laws. Changes to performance management. Implementing change successfully: a. But dynamic environments are the norm. . 10. e. Stable environments have less change. Some changes originate within the organisation. a) Transformational leadership & change: • Management has a key role in initiating and implementing change successfully. Changes to career management. labour unions. Some more are from competitors. customers. d. Changes to reward systems. communities.
It excites them to new levels of commitment and enthusiasm. To create an organisation that welcomes change. They take bold strategic changes to position the organisation for its future. • • • b) Transformation Leaders: • • Are instrumental in the change process. A vision is a crystallized long-range image or idea of what can and should be accomplished. They articulate vision and promote in vigorously. They stimulate employees to: − − − − − Rise above their narrow focus Make them to see a broader picture action. but important details. such as difficulty in letting go of old methods. Charismatically model their behaviour. • Charisma is a leadership trait can help influence employees to take early and sustained action.• A master strategy for change has to be made not overlooking simple. • • • • d) Communicating Charisma: • After the vision. The overall plan should address behavioural issues. A vision may also integrate the shared beliefs and value that serve as a basis for changing an organisation’s culture. It stretches people beyond their current capabilities and thinking. − And to motivate their employees to do it. Workers’ fear of uncertainty. • Charismatic leaders are: . leaders still have two tasks: − To persuade the employees that the vision is urgent. Be learning individuals Make a learning organisation • • c) Creating Vision: • Transformational leaders create and communicate a vision for the organisation.
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. This process is called as ‘double-loop learning’ This means that the changes handled not only reflect the current information gathered.− − − − − − Dynamic risk takers Have depth of expertise Well deserved self confidence. Relationships and Time Estimates: . but also prepare the participants to manage future changes even more effectively. e) Stimulating Learning: • Transformational leaders not only make a very good change in organisation. • Employees trust and respect charismatic leaders and emotionally committed to such leaders. • • • • 11. who treat employees individually and guide them for action. Their critical task is to develop people’s capacity to learn from the experience of change. Express high performance expectations Use provocative symbols and language to inspire others. In ‘single loop learning’ employees simply solve current problems and blindly adapt to changes which have been imposed on them. Warm mentors. Write down the change goal in a piece of paper and ask ‘Is that what you want?’ The goal should be specific and measurable and the team and the user should move in the same direction. but an organisation that will continue to change. keep change goals constantly in mind to avoid functional myopia • c) Establish check points. the team and the end users of the project. Activities. • • b) Determine the objectives: • Objectives help to break the goal down into specific responsibilities for each team member. Establish ownership for different functions.
have different objectives and have different types of training. Expect differences. let members go public with their views and choices. Encourage transparency and visibility of the project team’s efforts. • • e) Reinforce the commitment and excitement of the Change Team: • Volunteering increases commitment. develop sensitivity to why people do what they do. from experiences. as individuals. • • f) Keep everyone connected with the Change Program Informed of the Program: • Change involves people from different departments who use different languages. they serve to ensure interest and create energy. Treat team members as individuals with their own characteristics. Set long-term and short-term check points for early detection of problems. Be a good listener. yet must work together on a unique task.• • • Check points help members monitor their own progress. reaching agreement in conflict situations is not only a logical but also an emotional experience. Establish a detailed check list of activities. Create a sense of ‘ownership’. keep people informed on a regular and frequent basis. Appropriate the position of the other person. A strong team of supporters and collaborators are required. It is important to keep learning. d) Direct people individually and as a Project Team: • • • One can not do it alone. • • . create opportunity for people to set goals and objectives. Use the appropriate method. smoothing over. compromising. and as teams. Use them to create a synergy and unleash creativity. The team should also discuss ‘what if’ and ‘what can go wrong’ situations. finding common good etc. Logical arguments have their limits. There are hosts of possible approaches to conflict management like giving in. • • g) Build Agreements that vitalize team members: • Conflicts are inevitable. persuading.
experimenting. we make significant progress only when we stick our necks out. . important to build personal power. 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. This is achieved through alliances. networks and exchanges.h) Empower yourself and others in the Team: • • Influence without exercising authority is the key. Like turtles. I failed my way to success – Thomas Alva Edison.
technology. Recognising the need for change: • • Becoming aware of the need is not enough Managers should also recognise the need for change. Pressures like these – or the anticipation of such pressures. pressure mounts as the organisation outgrows its old ways of doing things. conflicts arise. − Demand changes in the structure. . tasks and people in the organisation. 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. • • • 2. employees retire or resign.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. the technological innovations act as powerful triggers for change. Outside the organisation.
a top-down strategy calls for intervention at the high level of an organisation. A firm that pursues revolutionary change adopts a top-down change strategy. Managers must determine how it may affect the company. 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. secondary data. 4. Managers believe that the uncertainty associated with organisational change is best managed through incremental processes in which they continually make adjustments to their strategy and structure. Questionnaire. Implementing the change: . etc. They discuss the need for change and diagnose the problems facing the organisation. Diagnosing the problem: • • • • • • Recognizing that change is needed is not enough. Managers must diagnose the pressures for change. Organisations must choose between evolutionary and revolutionary change. Winding up of divisions or departments and downsizing are examples of this type of change. A firm that adopts evolutionary change adopts a bottom-up change strategy. Planning the Change: • • A strategy for change is formulated.3. What are the consequences of those pressures? For diagnosing the problems various procedures are available like: Interviews. observations. Firms opting for bottom-up strategy prepare the organisation for change by involving managers and employees at all levels. Pressure may be likely economic or technical reasons. TQM is a method of evolutionary change. Generally. • • • • • • • • • 5.
There are several ways to show the resistance.• • • The next step is to implement the change. Here. 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. Follow up on the change: • The final step in the change process is to evaluate the effects of the change. − − − − − − 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. • b) The entire change process can be summarized in six stages: 18. 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. wall on • There are 6 approaches for managing resistance. attitudes and behaviours Old Stage New State . values and behaviours Refreeze (assurance of permanent change) Reinforcing new values. And institute procedural modifications that will ensure that change continues to be implemented. 6.
New ways of operating are cemented and reinforced. Learning theory and reinforcement theory can play important roles in the refreezing phase. Highly useful in understanding the ways of managing change. attitudes and behaviours are established as the new way of life. New values. Such changes are sometimes through structural changes. • • • Transition Management: • Between. organizing and implementing the change from the disassembly of the current state to the realization of a fully functional future state within the organisation. Searching for new solutions. Moving means – developing new behaviours. • • Refreezing: • • Changes become relatively permanent. Moving to a desired condition. sometimes through OD techniques. Unfreezing: involves • Encouraging individuals to discard old behaviours by shaking up the status quo situations. • • . • • Moving (changing): • Aims to shift or alter the behaviour of the individuals. the two phases of change. So that it remains in the desired state. Popularly called as. three stage model of change system. Presenting a case to make the people to recognise for a change and how their jobs will be improved by the change. Refreezing the system.• • • • • • • According to Kurt Lewin’s Force Field Model. Managing the transition is essential to keep the organisation going. departments or organisation in which the changes e to take place. Transition management is the process of systematically planning. By unfreezing the current situation. effective change occurs. Managers must ensure that the organisational cultures and reward systems encourage the new behaviours and avoid the old ways of functioning. values and attitudes. there is a transition which is not shown.
Organisational change can occur at three levels: o Individual – Changes in individual’s attitudes. • • • • • • . the 3 stage process must be completed. or do both simultaneously. customers and suppliers. Initially the two groups may be equal in their forces. play a role in transition management. employees. the organisation is in a state of inertia and does not change. An interim management structure or interim positions may be created to ensure continuity and control of the business during transition. managers must adopt a change strategy to increase the forces for change and reduce the resistance to change.• Transition management ensures that business continues while the change is occurring. Failure in efforts to change can be traced back to one of the 3 stages. skills and behaviour. values. Successful change. This Lewin termed as ‘quasi stationery equilibrium’ Lewin’s theory states how the forces for change and resistance balance. To get the organisation change. Communication of the changes to all involved. When the forces are in balance. again they balance and balanced at any time between the two opposing forces. thus requires that old behaviours are discarded and new behaviours introduced Those new behaviours have to be institutionalized and rewarded • • • • • • 19. Lewin’s model proposes that for change efforts to be successful. Lewin’s Force Field Theory of Change: Level of Performance Resistance to Change Change Resistance to Change P2 P1 Forces for change Time • In any organisation. they change. there are people who push for change and there are individuals who resist for change and desire status quo.
o Structure & Systems – Change in work design reporting relationships information systems the reward systems, etc. o Organisational Climate – Change in leadership style interpersonal relations, decision making style and other such aspects.
K. MODEL OF ORGANISATIONAL CHANGE – THE CONTINUOUS CHANGE PROCESS MODEL:
• • • •
Lewin’s model is very simple and straight forward. Many models of organisation change use his approach. However, it does not deal with several important issues. A more complex and more helpful approach is illustrated in the figure below:
1. Forces for change
2. Recognise & define problem Change Agent
3. Problem solving process
5. Measure evaluate control
4. Implement the change
Transition manage ment
• • •
This approach treats planned change from the perspective of top management. It indicates that the change is continuous. As change becomes continuous in the organisations, different steps are probably occurring simultaneously through out the organisation. This model incorporates Lewin’s concept into the implementation phase. In this approach, top management perceives that certain forces or trends call for a change. Such an issue is subjected to the organisation’s usual problem solving and decision making processes. Usually, top management defines its goals in terms of what the organisation or certain processes or outputs will be like after the change. Alternatives for change are generated and evaluated and an acceptable one is selected. Early in the process, the organisation may seek the assistance of a change agent – a person who will be responsible for managing the change efforts. The change agent: o May be a member of the organisation
o An outsider, such as a consultant o Someone from company headquarters – a far away place o An outsider is preferred because of his assumed impartiality Under the direction and management of change agent, the organisation implements the change through Lewin’s unfreeze, change and refreeze process. The final step is measurement, evaluation and control. With this, the top management determines the effectiveness of the change process by various benchmarks and indicators of organisational productivity and effectiveness.
L. LEADERSHIP STYLES:
(Top Down & Bottom up approaches are given in Module 3)
Laissez or free-reign leadership approaches
• • • •
In this type of leadership approach, the leader is just a figure-head. He does not give any directions. He delegates the authority to subordinates. Subordinates must plan, motivate, control and otherwise be responsible for their own actions. The leader acts principally as a liaison between the group and the outside elements. He supplies necessary materials and information to group member. He lets the subordinates develop their own techniques for accomplishing goals within the organisational policies and objectives. The leader participates very little and instead of leading and directing, he just becomes one of its members. This type of leadership is highly effective when the group members are highly intelligent and are fully aware of their roles and responsibilities. This type of leadership is evident in research laboratories where the scientists are fairly free to conduct their research and make their decisions. Also true to university professors.
• • •
Creates an environment of freedom, individually as well as team spirit. It is highly creative with a free and informal work environment. This approach is very useful where people are highly motivated and achievement oriented.
It may result in disorganized activities which may lead to inefficiency and chaos. Insecurity and frustration may develop due to lack of specific decision making authority and guidance.
The team spirit may suffer due to possible presence of some uncooperative team members. Some members may put their own interests above the group and team interests. OD Definition: is the process of planned change and improvement of organisations through the application of knowledge of behavioral sciences. 3 points to remember in this definition are: i. Organisation development involves attempts to plan organisational changes. ii. Specific intention of organisation development is to improve organisation. iii. The planned improvement must be based on knowledge of the behavioral sciences such as OB, psychology, sociology, cultural anthropology and related field of study rather than financial and technological considerations.
M. OD INTERVENTIONS:
Several OD interventions also called techniques, have evolved over a long period: Good interventions have 3 characteristics: (i) (ii) (iii) They are based on valid information about the functioning of the organisation, usually collected by the employees. The intervention under the guidance of the change agent, provides employees with opportunities to make their own choices regarding the nature of the problems and their preferred solutions. Interventions are aimed at gaining the employee’s personal commitment to their choices.
Integrated strategic management t. Organisation confrontation meeting f. Work design Human Resource Management: m. Process consultation c. Reward systems p. The OD Paradigms & Values: • • • • • • Organisational Level Affected Individual Group Organisation √ – √ – – – – – √ √ – √ √ √ √ √ √ √ – – – – √ √ √ √ √ √ – – √ √ √ √ √ √ √ √ – – – – – √ – – – – √ √ √ √ √ – √ – – – √ √ – – √ √ √ √ Values human & organisational growth Collaborative and participative process A spirit of inquiry Strong emphasis on collaboration The change agent as a catalyst Important factors in OD efforts: a) Respect for people: . Managing workplace diversity r. Strategic change v. T-Group/Sensitivity Training b. Self designing organisations 10. Team building e. Quality circles k. Goal setting n. Different types of OD interventions and the level of their impact: Interventions: Human Process: a. Cooperative union management projects j. Total quality management l. Culture change u. Third party intervention d. Career planning & development q. Employee wellness Strategic: s. Performance appraisal o. Differentiation & integration i.9. Formal structural change h. Inter-group relations Technostructural: g.
2. c) Power Equalisation: • Effective organisations deemphasize hierarchial authority and control d) Confrontation: • • Problems should not be swept under the rug. • • • • • • . The more we involve. The OD specialist (behavioral scientist) creates the opportunity for participants to express their ideas. openness and supportive climate. To develop increased understanding of group processes. • They should be treated with dignity and respect b) Trust & support: • • The effective and healthy organisation is characterized by trust. 4. Members meet in a free and open environment and discuss about themselves and their interactive processes. 3. encounter group or T-groups (Training groups) All refer to a method of changing behaviour through unstructured group interactions. authenticity. the more will be committed to implementing those decisions 11. A behaviour scientist directs the discussions. e) Participation: • • All those who are affected by the change should be involved in decision making surrounding the change. To develop greater sensitivity to the behaviour of others. Explanations on a few OD Techniques: a) Sensitivity Training: • Also known as laboratory training. The individuals learn through observing and participating rather than being told. 5. They should be openly confronted.Individuals are perceived as being responsible conscientious and caring. Provide the participants with increased awareness of their own behaviour and how others perceive them. beliefs and attitudes. Increased ability to empathies with others. Improved listening skills. The objectives of T-groups are: 1.
An outside consultant to assist the manager to perceive is employed. formal communication channels are some of the areas.6. Greater openness 7. • • • • • • d) Team Building: . Work flow. but more task oriented. He understands and suggests the processes which the manager must act upon. Increased tolerance of individual differences and 8. Even though every employee in an organisation can participate in survey feedback. Identifying discrepancies among perceptions and Solving these differences. Similar to sensitivity training. informal relationships among unit members. But they are unable to identify what can be improved and how. 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. Managers often sense that their unit’s performance can be improved. 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. 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.
stereotypes and perceptions through intergroup development. member roles and strategies for accomplishing work tasks. role clarification.• Is a conscious effort by management to develop effective work groups through out the organisation. In this method each group meets independently to develop lists of its perceptions of itself. The group analyses the problem. stereotypes and perceptions that groups have with each other. organisational structure and interpersonal relations. Team building process involves the following steps: Step-1 Step-2 • • • • • • • • • The team leader defines a problem. The group proposes several solutions. Team building includes OD consultant feedback in such areas as communication and conflict resolution. OD consultant also helps in assessing group tasks. ‘Problem solving’ is one of the popular approaches for improving intergroup relations. Step-3 • • • • e) Intergroup Development: • Seeks to change the attitude. Engineers accountants production engineers maintenance engineers Such stereotypes can have obvious negative impact on the coordinative efforts between the departments. A major area of concern in OD is the dysfunctional conflict that exist between groups. leadership style. Aimed at helping groups to become effective at task accomplishment. These work groups focus on solving actual problems in building efficient management teams. Then selects the most appropriate solution. Determines underlying cause in such areas as communication. • • • • • • . It utilizes high interaction group activities to create trust and openness among team members. Hence change efforts are directed towards the group to change their attitudes. the other group and how it believes the other perceives it. the participants are likely to be committed to the solution and interpersonal support and trust are developed. The support and trust of group members enhance the implementation of change. Through this process. Eg.
The trained managers bring their new understanding of managerial grid concepts relationships and team effectiveness so that the team operates at 9. Or may be caused by sub optimal interpersonal relations. groups or departments.9 grid level. 3 . • • • • • 2 . After appropriate introduction. Differences are clearly articulated and the group look for the cause of disparities. and communication. these key managers will work to implement the grid program through out the organisation. group problem solving. after which similarities and differences are discussed. This phase focuses on the relationship between the organisation’s work groups to improve coordination & cooperation.• The groups then share lists. The steps in grid OD are shown below: Steps 1 Training Activities In a week-long seminar. OD consultants help the parties resolve their differences through such techniques as problem solving. • f) Third Party Interventions: • • • • This is concerned with helping individuals. To resolve serious conflicts those are related to specific work issues. Intergroup tensions are dealt with openly and joint problem solving procedures are developed. key managers learn about grid concepts and how they are applied. 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. bargaining and conciliation. Seeks to promote organisational excellence by fostering concern for production and concern for people. They assess their own managerial styles and work on improving such skills as team development. Black & Mouton proposed a multi step process for improving organisations by attempting to cultivate these skills. Team Development Intergroup development . Most organisational problems stem from poor communication and inadequate planning.
evaluated and refined by managers and subordinates working together throughout the organisation. but the goal of ‘humanizing the work place’ is of paramount importance. Richard Walton’s categories of programs are shown below: • • • Adequate & fair Compensation Development of Human capacities Social Integration Total Life Space Safe & Healthy work Environment Growth & Security Constitutionlism Social Relevance • There are a few popular approaches to humanize workplace. h) Quality of Work Life: (QWL) • Is defined as the degree to which members of a work organisation are able to satisfy important personal needs through their experiences in the organisation. They set goals to be tested. . QWL programs focus strongly on providing a work environment conducive to satisfying individual needs. Stabilization Eventually. The programs vary. the results of all the phases are evaluated to determine which areas of the organisation still need improvement or alteration. Goal Organisation members seek to make the ideal attainment model a reality. Each submits proposals on how their activities should be carried out in order to achieve excellence and they proceed to take whatever corrective actions are necessary. 5 . 6 Organisational Top managers together create an ideal model of goal setting the organisation.4 . Efforts are made to stabilize positive changes and to identify new areas of opportunity 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. • • • • The hurdles are − − Both management and labour must cooperate in designing the programs Plan agreed by all must be implemented. The first step is Discovery: − The idea is to find out what people think are the strengths of the organisation. 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. i) Appreciative Inquiry: (AI) • • • • Most OD approaches are problem oriented. • • • • • • . − Or when they specifically felt most satisfied with their jobs. This allows the organisation to change by playing to its strengths and competitive advantages. Job enlargement and job enrichment are two such. Organisational commitment Reduced turnover among workers Increased productivity Profitability and goal attainment for the organisation. − For instance. this approach seeks to identify the unique qualities and special strengths of an organisation. They identify a problem and then look for solutions. Rather than looking for problems to fix. Appreciative inquiry is positive.• One such is ‘work restructuring’ – the process of changing the way jobs are done to make them more interesting to workers. QWL programs benefit the organisation in these ways: − − − − − Increased job satisfaction. AI process essentially consists of four steps. Often played out in large group meetings over two or three days and overseen by a trained change agent.
• • Companies who used this OD technique. The fourth step is Destiny: − In this final step. • . Benefits & Limitations of Organisational Development: Benefits • • • • • • • • • • • • Limitations • • • • • • • • • • • Organisation-wide changes Higher motivation Higher productivity Better quality of work Higher job satisfaction Improved team work Better resolution of conflict Commitment to objectives Reduced absence Lower turnover Creation of learning Individuals and groups Time consuming Expensive Delayed pay-off period Possible failure Possible invasion of privacy Possible psychological harm Potential conformity Emphasis on group processes rather than performance Possible conceptual ambiguity Difficulty in evaluation Cultural incompatibility N. originality and novelty that is also appropriate to the context. Nature of Creativity: • Creativity refers to the process by which novel but situationally appropriate outcomes are brought about. have increased their sales and profits by several crores of money. participants focus on finding a common vision of how the organisation will look and agree on its unique qualities. 12. CREATIVITY IN ORGANISATIONS: • Organisational culture promotes creativity and innovation 12. participants discuss how the organisation is going to fulfill its dream. The essence of creativity is the element of freshness. − For instance people are asked to envision the organisation in five years and describe what different is going to happen. − This typically includes the writing of action plans and development of implementation strategies. • The third step is Design: − Based on the dream articulation.• The second step is Dreaming: − The information from the discovery phase is used to speculate on possible futures of the organisation.
− Plays powerful role in dissolving previously held notions about a problem. − But the problem is still simmering in one’s mind − But it is not at the forefront of his attention. − It is an experience of suddenly becoming aware of a unique idea. The Creative Process: • Researchers have developed a model that outlines the various stages of the creative process. The process of creativity occurs in the following four stages: Step-1 Preparation Preparation: − An important condition for creativity. . − Incubation assists in divergent thinking and generating different approaches to the issue. the act must be unique and appropriate to the context.• To call anything creative. The ability to promote creativity in organisations is an important competence to face the turbulence of dynamics of changes in the organisations. • Insight: − Individuals experience insight at some point during the incubation stage. − They might come at any time of the day or night. The social and technological changes that organisations face require creative decisions. − The problem is only put in the back burner. − 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 flashes of inspiration have no definite schedules. − During incubation. − The problem or issue not forgotten. the mind constantly considers the problem and works on it. • • 13.
A great amount of energy. Lateral thinking 16. Grid analysis c. Some of the traits of creative people include: − − − − − − − − Willingness to give up immediate gain to reach long range goals. High intellectual abilities. • 15. Inventive thinking style. • Creative processes do not always follow an order. tenacity is very important. Methods of Enhancing Creativity: a. − The new idea has to be subjected to evaluation and experimentation. These are the supporting environments and facilities to encourage people to search for new ideas: Creative People Organisational Support Organisational Culture Enhanced Creativity . • Verification: − Ideas are generated at the insight stage. Belief that fantasy and day dreaming are not a waste of time. but verification of their value is important. − At this stage.− It can also be lost if not documented. Brainstorming b. 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. 14. An irritation with status quo Perseverance A pursuit of hobbies and specialised interests. − It is not sufficient we have come up with an idea. since other people may resist or reject the creative ideas.
materials. − Lavishness does not work.Diversity b. information and time. c. Creative People: Exposure Time & Resources i. research. processes and services. etc. Diversity: − Diverse ethnic and cultural groups. INNOVATIONS IN ORGANISATIONS: • Innovation is the process of creating and doing new things that are introduced into the market place as products. if any. − People need enough resources O. facilities. Friendly supervision Team building Participative decision making Flexible organisation structures. Innovation involves every aspect of organisation. Selecting creative people is the starting point in enhancing creativity in organisations. − Make the job intrinsically motivating. Organisational Culture: − − − − − Openness to new ideas. − Sets goals for creativity − Encourage employees to take risks and accept failures. − Break out of the shell and take risks. Time & Resources: − People are more creative when they have funds. seminars. Organisational Support: − May come in many ways. − Like foreign assignments. − Divergent thinking is key to creativity f. g. • . development. d. manufacturing and marketing. extended leave. e. Exposure: − Expose employees to various kinds of experience.
1) Types of Innovation: • • Radical innovation – major break through – eg: xerox System innovation – creating new functionalities by assembling parts in new ways – eg: automobile Incremental innovation – continues the technical improvements – applicable to radical and systems also – forces organisations to continually improve products. . • • Step-2 : Diagnosing the situations and generating ideas • Diagnose the situation and generate new ideas.• The greatest challenge is to bring the innovative technology into the market in a cost effective manner. Do not focus only on immediate problems. • 2) A Six Step Model for Planned Innovation or Change: • The process followed by managers when they engage in planned innovation and change are illustrated in the sketch Step-1 Perceiving an opportunity or a problem Step-2 Diagnosing the situation and generating ideas Step-3 Presenting a proposal & adopting the change or innovation Step-6 Monitoring and evaluating results Step-5 Implementing the change or innovation Step-4 Planning to over come resistance to change or innovation Step-1 : Perceiving an opportunity or a problem • Look ahead for opportunities to solve current and anticipated problems. Hold periodic sessions with senior/junior managers and elicit suggestions.
Step-3 : Presenting a proposal and adopting the change • Establish the fact that innovation and change are important to the organisation. • P. Otherwise good ideas will be rejected when they are proposed. If the planning is carefully done. cultural and emotional blocks as shown in the sketch. BLOCKS FOR CREATIVITY & INNOVATIONS: • • • It is not enough to take positive steps to promote creativity. There are three broad categories of obstructions for creativity. Feedback for improvements in successive innovations. Perceptual Blocks Cultural Blocks Emotional Blocks Need for Creativity & Creativity & Innovation .• • This will fix the problems and take advantage of the opportunities. perceptual. Do not overlook the status of ongoing activities relative to the competition. Overcome the resistance. • • Step-4 : Planning to overcome resistance • • Understand the reasons and resistance for change. Step-5 : Implementing the innovation or change • • Moment of truth when the change is put into operation. Preparation of a business plan is necessary for budget proposals. implementation will be smooth Step-6 : Monitoring the results • Monitor and evaluate what happens after the change has been implemented. It is also essential to guard against ways which hinder creativity.
It is not part of your job 19. Costs too much 8. It can’t work 12. We have not the time − − − − . The union won’t go for it. The old times won’t use it. That is not our problem 33. Overemphasis on competition or conflict avoidance and smoothing. Cultural Blocks: Include: A desire to conform to established norms. It is not good enough 18. Be practical 6. The timing is off 37. Too old fashioned 46. 4. They won’t go for it. It has been done before 15. It needs more stud 16. Too academic 41. 3. Too soon 47. Too many projects now 13. 39. Too late 44. Against company policy 3. 38. Perceptual Blocks: Include such factors as: − − − − The failure to use all the senses in observing Failure to investigate the obvious Difficulty in seeing remote relationships Failure to distinguish between cause and effect. We have not the manpower 50. Too hard to administer 42. Can you put into practice? 7. Ahead of the times. I know it won’t work 11. Don’t start anything yet 9. Too much paper work 45. − Fear and distrust of others − Fear of grabbing the first idea that comes along Sixty-One Ways to Block Creativity: 1. A belief that indulging in fantasy or other forms of open-ended exploration is a waste of time. 40. All right in theory 5. The boss won’t go for it. A good idea but… 2. Long time and it works 49. 36. Let me add to that 32. It is not budgeted 17. There are better ways. Emotional Blocks: Include: − The fear of making a mistake. We have been doing it this way for 48. It does not fit human nature 14.Innovation 1. Too hard to implement. 2. Have you considered 10. 34. The new people won’t understand 35. The drive to be practical and economical. 43.
Let us put it off for a while 25. Let us sit on it for a while 26. What you are really saying is? 59. it won’t work 29. We are too big 52. Let us think it over for a while 27. Let us not step on toes 24. 28. Surely you know better 51. What will the customers think? 57. Not ready for it yet. Our Plan is different 30. What bubble head thought that up? 56. We can too small 53. Who else has tried it? 61. Some other time 31. Let us make a survey first 23. Why has not someone suggested it before if it is a good idea? You are off base! . Of course. We have tried it before 55. Who do you think you are? 60. we have never done it that way 54.20. What will the union think? 58. Let us form a committee 22. Let us discuss it 21.
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