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

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

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

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

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

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

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

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

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

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

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Is aimed at any aspect of one’s current self

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

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

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

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

Formal Authority and status Interpersonal Roles Figure head Leader Liaison Informational Roles Monitor Disseminator Spokes person Decisional Roles Entrepreneur Disturbance handler Resource allocator Negotiator c) Some Roles Commonly Played by Group Members: (by J. isolate themselves from follow group members Compromisers Shift opinions to create group harmony Encouragers Praise and encourage others Expediters Suggest ways the groups can operate more smoothly .Greenberg & B.A.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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

the environment is complex. the environment is simple. Pfeffer and Salancik profounded two strategies: internal and external. But the contingency variables are themselves related to one another. In other words. Dependence of an organisation on other external organisations for resources makes it vulnerable because it creates uncertainty. necessary to study how the variables impact on one another and how these relationships affect structure. effective organisations have a cluster of common attributes. Internal strategies are aimed at adapting and changing the organisation to fit the environment. If the answer is many. strategy and environment commonly occur together. then the environment is stable. In recent years a new approach called. Are the different organisations in the environment changing? And if yes how fast? If the organisations in the environment are not changing or changing slowly. The other feature is the level of stability. Over the years. ‘configurational approach’ has emerged to deal with this inadequacy in the contingent perspective. technology. If they are changing rapidly. It is based on the assumption that attributes of size. This cluster of attributes is called a ‘configuration’. the environment is unstable. 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. contingency perspective has come under lot of scholarly criticism.• One is the level of complexity – how many different organisations are there in the environment. 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. If the answer is few. size and structure. Scholars say that it considers only two variables at a time: strategy and structure. The higher the level of complexity and instability. the higher the level of uncertainty. If is therefore. There are 7 strategies identified: • • • • Internal Strategy: • • Domain choice • Recruitment • Buffing . This makes them dependent on the groups and organisations in the environments which control the resources that the organisation requires.

Some of the reasons can be: − − − − • Organisational leaders may have incomplete information about the environment. Populations means organisations which are similar – restaurants.Environmental scanning Geographical dispersion External Strategy: • • • • • Smoothing • Rationing Are meant to alter the environment to fit the organisation. Each population occupies an ecological niche in the environment. two wheeler manufacturers. . skills and culture. 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. textile firms. patterns of behaviours. etc. The environment consists of different niches. • Therefore. There may be legal and financial barriers to entry and exit from current market or industries. it is more useful to study a population of organisations rather than a single organisation. Consequently. Those organisations that lack these capabilities are unable to get the required sources and therefore. Selection: refers to the process through which the environment selects those organisations that have the required features – some are selected out or die. fail to survive. The niche provides the resources for the organisations. systems. 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. Retention: constitutes those processes that help organisations retain the features that are required by the environment. some organisations die and a few others are born into the population. management systems suited only for their specific niche. Organisational assets may be specific to its current tasks. There may be political resistance to change inside the organisation. Organisations survive in their niches by developing distinctive capabilities such as skills.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

organisation

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

2

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

1

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

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

• •

4. Design Parameters for cultural change:

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

• •

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

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

Penetration

Commonality

Adoptability

Development component (process)

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

Durability
• •

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

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

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

Adaptability

Penetration

Commonality

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

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

• • • •

• • • • • •

J. The Transglobal & Cross Cultural Contents:
• •

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

• •

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

Durability

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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. organisation and employee competency. • • • • • • • d) Managing change: The Affective Dimension: • • Individuals fear and seek change. Current skills have to be assessed and future skills needed for the business determined and the training skills decided to bridge the gap. ‘Vicarious learning’ – where employees observe organisations that have benefitted from implementing new or innovative techniques and practices. needing constant monitoring and reviewing.• Competitive organisations required knowledge workers who are capable of performing jobs related to corporate goals and market needs and demands. Training should bring forth:     Inherent talents. delivering value to the work process. Employee training sets the supportive climate for change management when it is competency driven for the current and future demands. Desire to acquire information. Building effective teams takes years. It provides opportunities for employees to learn by their own activities and to exercise control over the outcome. Knowledge provides a competitive advantage. knowledge and skills. Employees should be considered as a resource. New ways of training employees aimed at thinking skills and multiskill development have to be planned. 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. both Change affects human emotion. Vicarious learning is facilitated by study/observation trips to innovative organisations and further involving employees in benchmarking their best practices. It prompts the people in the direction of group support and leads to acceptance of change. Training should be run like business. .

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

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

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

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

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

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

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

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

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 may review its performance. c. Break up is called adjournment. Groups norms guide individuals. d. Feedback for future teams. b. Functional roles are also smoothly exchanged as needed. d. e. Groups. Transformational leadership skills relate to: o o o o Futuristic thinking Value clarification Entrepreneurism Influencing o Envisioning o Creativity o Mentoring • & inspiring for higher motivation and achievement – how the leader regarded and respected – credibility. Group matures and learns. Tentative balance among competing forces. Group begins moving together in co-operative fashion b. Handles complex challenges. In flexible organisations adjournments are more frequent. Transactional leadership skills include: o o o o Goal setting Assertiveness Conflict management Supervision o o o o Communication Problem solving Decision making Rewarding competency • . More co-operative feelings. How will we closeness & control each cohesiveness other’s actions? • Getting organised. c. Norming believe in? Also referred as: What behaviours • Resolution do we expect of • Goals and each other? norms What should we • Integration be doing? • Intimacy. Tasks are efficiently accomplished. 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. Functional roles are performed. affection What actions will 4. 4) Ingredients of Effective Leadership: • • A process of dealing with members’ aspirations and expectations. a. a. c. • Openness. b. a.• • • • • • • • • • • • • Control What do we 3. project teams disband sooner or later. e. d.

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

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

self managing teams. − Promotes collaborative work relationships. • 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. 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. • SMTs have several advantages: − Improved flexibility of staff. − More efficient operations through the reduced number of job classifications. . 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. Inability of some employees to adapt to a team structure. − Higher level of organisational commitment and job satisfaction. − Lower absenteeism and turnover rates.− Active problem solving. • SMTs have the following disadvantages: − − − − Extended time to implement them High training investment Inefficiencies due to job rotation. suggestion systems Consensus decision making. − Faster synergetic performance − Enhances individual and team capacity − Lot of scope for innovations − Pushes responsibility down to the lowest levels.

− Ensuring early success to generate enthusiasm and greater belief in team effort. I. • 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 . RESISTANCE TO CHANGE & OVERCOMING IT: • Resistance to change consist of any employee behaviours designed to − Delay − Discredit − Prevent the implementation of work change.empowerment 8) Cross Functional Teams: • • A type of SMT Consists of individuals from different functional areas working on the design or development of a product. Effective management of relationships among people of diverse backgrounds and work cultures. in 1978. engineers and even factory workers on whom rests the total responsibility for the development and manufacture of a single product. 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. The success of cross-functional teams. Cross-functional teams are of great assistance in designing and prototyping new models and products. ‘Taurus’ team at Ford Honda. inexpensive car.

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

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

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

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

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

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

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

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

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

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

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

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

attitudes and behaviours Old Stage New State . − − − − − − Education and communication Participation and involvement Facilitation and support Negotiation and agreement Manipulation and co-operation Explicit and implicit coercion • Each has its own advantages and disadvantages. There are several ways to show the resistance. resistance to change surfaces. Follow up on the change: • The final step in the change process is to evaluate the effects of the change. Here. And institute procedural modifications that will ensure that change continues to be implemented. 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. • • • • • • • • Hostility Physical abuse Loss of interest in work Excessive idling time Low productivity Tardiness Development of tension & anxiety Groups deciding fairday’s work • • • • • • • • Aggression Apathy towards work Spoilage of material Corrupting valuable software Absenteeism Resignation Tensed up on the job Imposing their individuals. • b) The entire change process can be summarized in six stages: 18.• • • The next step is to implement the change. values and behaviours Refreeze (assurance of permanent change) Reinforcing new values. wall on • There are 6 approaches for managing resistance. 6.

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

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

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

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

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

1. Forces for change

2. Recognise & define problem Change Agent

3. Problem solving process

5. Measure evaluate control

4. Implement the change

Transition manage ment

• • •

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

• •

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

• •

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

Laissez or free-reign leadership approaches
• • • •

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

• •

Advantages:
• • •

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

Disadvantages:
• •

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

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

M. OD INTERVENTIONS:

• •

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

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

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

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

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

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

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. They set goals to be tested. 6 Organisational Top managers together create an ideal model of goal setting the organisation. Richard Walton’s categories of programs are shown below: • • • Adequate & fair Compensation Development of Human capacities Social Integration Total Life Space Safe & Healthy work Environment Growth & Security Constitutionlism Social Relevance • There are a few popular approaches to humanize workplace. Stabilization Eventually. QWL programs focus strongly on providing a work environment conducive to satisfying individual needs. Goal Organisation members seek to make the ideal attainment model a reality. evaluated and refined by managers and subordinates working together throughout the organisation. 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. but the goal of ‘humanizing the work place’ is of paramount importance. the results of all the phases are evaluated to determine which areas of the organisation still need improvement or alteration. 5 .4 . The programs vary. Efforts are made to stabilize positive changes and to identify new areas of opportunity for the organisation. .

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

• 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. 12. − This typically includes the writing of action plans and development of implementation strategies. CREATIVITY IN ORGANISATIONS: • Organisational culture promotes creativity and innovation 12. participants discuss how the organisation is going to fulfill its dream. originality and novelty that is also appropriate to the context. participants focus on finding a common vision of how the organisation will look and agree on its unique qualities. 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. 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. Nature of Creativity: • Creativity refers to the process by which novel but situationally appropriate outcomes are brought about. • • Companies who used this OD technique. have increased their sales and profits by several crores of money.

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

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

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

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

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

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

Of course. What will the union think? 58. Let us form a committee 22. We can too small 53. Not ready for it yet. Let us put it off for a while 25. We have tried it before 55. What will the customers think? 57. we have never done it that way 54. What you are really saying is? 59. Some other time 31. it won’t work 29. What bubble head thought that up? 56. Let us think it over for a while 27. Let us make a survey first 23. Surely you know better 51. 28. Why has not someone suggested it before if it is a good idea? You are off base! . Who else has tried it? 61. Let us not step on toes 24. Our Plan is different 30. Let us sit on it for a while 26. Let us discuss it 21. We are too big 52.20. Who do you think you are? 60.

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