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!

) Self Anal!s"s & Mana#e$en%&Self M'n"%'r"n#:
"efinition: # 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! %elf analysis of skills will lead to: − &orking effectively with others $ approachability teamwork co' operation rapport and adaptability( − )ommunication $ listening enthusiasm clarify pertinence confidence! − *udgements and decision making $ decisiveness research planning reaching a conclusion evaluation! − +ersuading and influencing $ communication leadership negotiation motivation charisma determination forcefulness vision empathy! − #bility to solve problems $ critical thinking analysis lateral thinking creativity! − ,ime management $ ensuring assignments are done on time! − -se of I, $ word processing report to solve problems .uickly! − #chieving one’s goals $ determination commitment will power resolution stamina ambition energy resistance! − %pecialist subject knowledge! • %elf analysis provides the opportunity to turn potential failures into triumphs through appropriate interpretations!

#fter analysis one has to self manage! ,here are /0 steps of self management:

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1ake a decision that you desire to achieve the goal! 2elieve that you will achieve the goal! &rite down your goal on paper! 2e honest with yourself! #nalyse your present position! -se deadlines! Identify the rocks that stand in your way! Identify the skills you need! Identify those people from whom you need co'operation 1ake a complete business plan! 3isuali4e the perfect outcome emotionalise how terrific you will feel when the outcome is achieved and make the necessary affirmations consistent with achieving the goal! − "etermine to back your plan with patience and persistence!

() Self)Eff"*"en*!:
• %elf efficiency refers to a person’s belief that he has: − − − − • ,he ability ,he motivation ,he situational contingencies! ,o complete a task successfully!

+eople strong in self efficiency have a − 5)an do’ attitude towards a specific task! − 5)an do’ attitude for various challenges in life!

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%ocial learning6observational learning increases self efficiency by observing someone else’ actions! +eople have the drive for self efficiency $ a belief that they have the necessary capabilities to perform a task! 1anagement should provide opportunities for meaningful involvement of people in the activities towards the achievement of organisational goals or objectives! #lbert 2andura a famous behavioural scientist says: 7-nless people believe that they can produce desired effects and forestall undesired ones by their actions they have little incentives to act( 7,hey have the core belief that they have the power to produce desired results(

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2andura’s task'specific self'efficiency in 5state like’ and specific task oriented! 2andura also states a 5generalised self efficiency’ which reflects people’s belief in successfully accomplishing tasks across a wide variety of achievement situations $ called as 5trait like’

a8 %elf efficacy 3s %elf'esteem: /! %elf esteem Is a global construct of one’s evaluation and belief of overall worthiness Is stable and traitlike %elf efficacy Is one’s belief about a task and contact specific capability! Is changing overtime as new information and task e9periences 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

b8 ,he process ; impact of self efficacy: ,he +rocess: • • • • • "irectly the self'efficacy process starts before individuals select their choices and initiate their efforts! +eople tend to weigh evaluate and integrate information about their personal capabilities! ,his 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 conte9t! ,his evaluation of perception then leads to the e9pectations of personal efficacy which in turn determines: − ,he decision to perform the specific task in this conte9t! − ,he amount of effort that will be e9pended to accomplish the task − ,he level of persistence that will be forthcoming despite problems regardless of evidence and adversity! ,he Impact: %elf'efficacy can directly affect: • • • )hoice behaviour: "ecisions made based on how efficacious a person feels towards the opinion in work assignments or careers etc! 1otivational effort: +eople will try harder and give more effort on tasks where they have high self efficacy than those where the efficacy judgement is low! +erseverance: ,hose 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!

his is called as organisation based self esteem ?@2%E8 "irectly related to the desire for success! +eople with high self'esteem believe that they have abilities to undertake challenging jobs! =igh esteem people tend to choose unconventional jobs! +eople with low self'esteem are more susceptible to e9ternal influence! >ow esteem people are dependent on the receipt of positive evaluations and approvals from others! >ow esteem people prone to the beliefs and behaviours of those they respect! In managerial positions low esteems will tend to be concerned with pleasing others! >ow esteems are less likely to take unpopular stands! .raining and development %tress management! %elf managed work teams *ob design and goal setting! >eadership +) Self)Es%ee$: • • • • • • • • • • • Refers to the feeling of like or dislike of one'self! %elf esteem has to do with people and self'perceived competence and self image in an organisation! .uisite ability’ 3ulnerability to %tress: +eople with low self'efficacy tend to e9perience stress and burnout since they e9pect failure! =igh efficacy people enter into potential stressful situations with confidence and assurance and thus are able to resist stressful reactions! • c8 %ources of %elf'Efficacy: %elf Efficacy 1asterly E9periences or +erformance #ttainments d8 #pplications: • • • • • 3icarious E9periences of 1odeling %ocial +ersuasion +hysiological and +sychological #rousal .• <acilitating through patterns: +eople with high self'efficacy say 5I know I can figure out how to solve this problem’! +eople with low efficacy say 5I know I can not do that I do not have the re.

) R'les: • • • • #ll group members are actors each playing a role! # role is a set of e9pected behaviour patterns attributed to someone occupying a given position in a social unit! Everyone has to play a number of diverse roles both on and off his job! @ur behaviour varies with the role we are playing! a8 Role )oncepts: are associated with roles a i8 Role Identity: • • )ertain attitudes and actual behaviour are consistent with a role and they create 5the role identity’ +eople have the ability to shift roles rapidly when they recognise the situation and its demands clearly re.uire major changes! a ii8Role +erception: • • • It is one’s view! .• • • • • =igh esteems are more satisfied with their jobs! >ow esteems are less satisfied with their jobs! =igh self esteem people have more positive attitudes feelings satisfaction less an9iety hopelessness and depressive symptoms! It is found that males score slightly higher in self'esteem than females! +eople with low self'esteem are not confident in thinking ability likely to fear decision making lack negotiation and interpersonal skills and are reluctant unable to change! Research results on self'esteem are mi9ed! − @ne study found that people with high self'esteem handle failure better than those with low self esteem! − #nother 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! − Aet another study says: 7=igh self esteem can be a good thing but only if like many other human characteristics $ such as creativity intelligence and persistence $ it is nurtured and channeled in constructive ethical ways otherwise it can become antisocial and destructive( • .hat view indicates how one is supposed to act in a given situation! 2ased on the interpretation of how we believe we are supposed to behave we engage in certain types of behaviour! .

• %ince managers perform many different roles they must be highly adaptive and e9hibit role of fle9ibility in order to change from one role to another .uirement may be more difficult than compliance with another! b8 >eader61anager Roles: by 1int4berg .he key is for both parties to gain accurate role perceptions of their own roles and for the roles of the other! Reaching such an understanding re.uickly! %upervisors particularly have to change roles rapidly as they work with seniors subordinates technical and non'technical activities! .he comple9 web of manager $ employee role perception! 1anager 1anager’s perception # of own role 1anager’s perception 2 of employee’s role 1anager’s perception ) of the manager’s role as seen by the employee Employee " Employee’s perception of manager’s role E < Employee’s perception of own role Employee’s perception of the employee’s role as seen by the managers • • • • .uires studying the available job descriptions as well as opening up lines of communication to discover the other’s perceptions! -nless roles are clarified and agreed upon by both parties conflicts will inevitably arise! • a iii8Role E9pectations: • • "efined as how others behave you should act in a given situation! =ow we have to behave to a large part is determined by the role defined in the conte9t in which we are acting eg! Role of a judge or football referee! a iv8Role )onflict: • • &hen an individual is confronted by divergent role e9pectations the result is role conflict! It e9ists when an individual finds that compliance with one role re.

resistant to the group Recognition %eekers )all attention to their own achievements "ominators #ssert authority by manipulat' ing the group #voiders 1aintain distance isolate themselves from follow group members )ompromisers %hift opinions to create group harmony Encouragers +raise and encourage others E9pediters %uggest ways the groups can operate more smoothly . 2!#!2aron8 .ask @riented Roles Initiator )ontributors Recommend new solutions to group members Information %eekers #ttempt to obtain the necessary facts @pinion Givers %hare own opinion with others Energisers %timulate the group into action whenever interest drops Relations @riented Roles =armonisers 1editate group conflicts %elf @riented Roles 2lockers #ct stubborn .<ormal #uthority and status Interpersonal Roles <igure head >eader >iaison Informational Roles 1onitor "isseminator %pokes person "ecisional Roles Entrepreneur "isturbance handler Resource allocator Begotiator c8 %ome Roles )ommonly +layed by Group 1embers: ?by *!Greenberg .

uence6reaction to the e9ternal circumstances and pressures! %ometimes is an 5incremental’ change step by step! %ometimes it is a 5radial’ shift from the current to a new process! It is dependent upon the organisational environment and or culture! • • • • .CHANGE MANAGEMENT MODULE ) Def"na%"'n: 7@rganisational change is the process by which organisations move from their present state to some desired future state to increase their effectiveness( – ORGAN-SAT-ONAL CHANGE .) -$/'r%an*e 'f C0an#e: • • • • )hange is the only thing permanent in the world! )hange is inevitable but pervasive too! >ife itself is almost synonymous with the concept of change! =umans and organisms 5grow up’ leaving behind the characteristics of earlier stages of development and adopt new behaviours with age environments and e9pectations! #n organisation too cannot and should not remain constant6stagnant all the time! Even if the management does not want to change the e9ternal pressures force it to change! )hange encompasses leadership motivation organisational environment roles of people etc! )hange produces emotional reactions too! .o many it is threatening it has visions of revolutions! If throws up also a dissatisfied person a trouble maker! • • • • • • 1) C0ara*%er"s%"*s 'f C0an#e: • • • • • • 3ital if a company were to avoid stagnation! # process and not an event! It is normal and constant! Is fast and is likely to increase further in the present competitive business! 1any a times it is a 5top down’ management directive! %ometimes it is also a 5mutually agreed’ plan for change in various groups of management! It is a 5natural’ and 5adaptive’ change as a conse.

he traditions and norms to which the management and employees are accustomed to! .he unwritten and written long standing rights and policies e9isting in the company and the likely threats to them! • • .he illustration of the : components and their inter'relations are shown in the sketch )hanges =istorical . @rganisation )hanges +eople +a5 H"s%'r! & P'l"%"*s: .he origins of the individuals within the company! .hose three components are: − . image of the company being changed during the change? .he perception of the company that the customers are holding! #re the value .hese factors are: • • • • • • • 2ase .he historical and political evolution of a company will have a significant bearing on its acceptance of change! . political )orporate evolution )ulture 1anagement .he people who work for the company • o .he historical and political evolution of the company! − .he good and bad e9periences of the individuals of the company on whom the new change is vested in! .he image the company likes to promote! .2) C'r/'ra%e C3l%3re an4 C0an#e Mana#e$en%: • #ll changes interface with three organisational components which constitute the organisational culture! . origin of the company #ssociated values of the company! .he management and organisation of the company! − .

he likely 5balance of power’ between the current owners and the functional e9perts! .he 5winners’ and 5losers’ of power personal status sphere of influence etc! and there inter'relationships! • • • +65Mana#e$en% & Or#an"sa%"'n: • • • • • • • • • • • • )hanges will impact the roles of management! It will also impact the structure and operation of the organisation! Role of line management shifts from 5autocrat’ to that of 5facilitator’ %enior management takes more of strategic stance! %enior management encourages opportunities for progress through innovation! .hey recogni4e the contribution to the achievement of business objectives! .he boundaries between jobs divisions and departments become blurred! .he 5acceptance’ of change process by top management! .he re.uirements of specialists slowly decrease! 1ulti skilling of employees increase and in greater demand! 2oth project and group work increase! &ith increased harassing of technology and processes availability of jobs decrease! #ll the activities and outputs gets customer oriented! 2efore embarking upon the change measure and analyse the effect of the change on the workforce their acceptance and willingness and take suitable remedial measures! • • +*5 Pe'/le: • • • • 1ost of the issues in change management are 5people’ oriented! Every decision on change 5impacts’ the people! #ll cautions should be e9ercised in the people oriented changes! .• .hink carefully the impact of change in every job it affects! • .he jobs broaden in terms of scope and of accountability! .ypically with any change people e9pect a reward pay hike promotion or other type of recognition! .he relationships and cordiality between the top management and the people who have been vested with the powers of change! .

7) Le8els 'f C0an#e: ( Le8els – -n4"8"43al9 #r'3/ an4 'r#an"sa%"'nal a8 Individual >evel )hange: • )hange is reflected in such developments as changes in job assignment physical move to a different location or the change in maturity level of a person which occurs overtime! %ome say that changes at the individual level will seldom have significant implications for the total organisation! @thers say the above is not true since any change at individual level will also have repercussions in the group! • • b8 Group >evel )hange: • • • • 1ost organisational changes have their major effects at the group level! .he groups could be departments or informal work groups! )hanges at the group level can affect! − − − − − &ork flows *ob design %ocial organisation Influence the status systems .uire considerable planning for implementation! )hange in the organisational level is generally referred to as 5organisational development’ • • • • • • .his is because most activities in organisations are organised on a group basis! .uently overcome resistance at the individual level! • • c8 @rganisational $ >evel )hanges: • )hanges at this level involve major programs that affect both individuals and groups! "ecisions at this level involve major programs that affect both individual and groups! "ecisions regarding these changes are generally made by senior management! .hey cover long periods of time! Re.hese decisions are rarely implemented only by a single manger! . )ommunication patterns • • 1anagers must consider group factors when implementing change! Informal groups can pose a major barrier to change because of the inherent strength they possess! <ormal groups like unions can resist change envisaged by management! Effective implementation of change at the group level can fre.

hrough ..C1 is continuous improvement! )ontinuous efficiency improvement to reducer costs improve .otal Cuality 1anagement ?.C1 is driven by statistical data! .C1 has D key components %ystems )hange .C1 is an e9ample Revolutionary )hange: %udden drastic .C1 1anagement +eople +rocesses • • • b8 Re'Engineering: • • • Revolutionary change! Enown as 2usiness +rocess Re'engineering! Radial rethinking and redesigning of business processes to obtain rapid organisational effectiveness! Ignores e9isting arrangement of tasks roles and work activities! @rients with customer as object! =as the following components! 2usiness processes Re'engineering 3alues . measurement • • • . organisation'wide re'engineering is an e9ample! a8 .wo .) T!/es 'f C0an#e: • .C18: • • • • Evolutionary change! "eveloped by Edward "emming 2road goal of .uality reduce waste! Employees are e9pected to make suggestions on all aspects of processes and management! .ypes : Evolutionary )hange Revolutionary )hange • • Evolutionary )hange : Gradual incremental . 2enefits *obs and %tructures 1anagement .

revolutionary change $ . 1easurement 2usiness +rocesses 3alues .C1 has analytical thinking measurement comparison fact finding and reasoning! Reengineering demands conceptual thinking rooted in supposition intuition lateral thinking and raw creativity associated with senior management! . %tructures • d8 %imilarities between .C1 $ a continuous bottom up improvement! Re'engineering is radical reinvention and top down approach! 2oth differ in perception too .c8 Integration of evolutionary .C1 is an attitudinal change with constant focus on continuous improvement and customer! Reengineering has a program of change with an identifiable beginning and an end! • • • • .he popular approach is that the two can not co'e9ist! 2ut the two approaches applied together and with understanding and sympathy offer a tremendously powerful recipe for building or rebuilding an organisation! .C1 and Reengineering have four identifiable founding principles and commonalities which are summari4ed as follows: . Reengineering: • 2oth emphasi4e objectivity and this they obtain through statistical analysis and benchmarking! 2oth promote a process orientation although there is a difference in emphasis! .he two differ in their approach to change! . 2enefits *obs .C1 .uality circles! 2oth emphasi4e on power and accountability performance measurement and reward schemes! 2oth stress the role of management on coaching and facilitating rather than pure directions! 2oth stress on job description and proper organisation structural relationships! • • • • • • • • e8 "issimilarities between .C1 .C1 focuses on improvement whereas reengineering focuses on customer relationships! 2oth emphasi4e the importance of customer! 2oth demand change of people’s attitudes and their values and beliefs! 2oth promote empowerment and involvement high value team work in . Re'engineering: • .he two differ in their impact on organisational culture! .C1 %ystems +rocesses +eople 1anagement Reengineering 1anagement .C1 . Reengineering: • • • • • .

• • Reengineering can address major strategic issues at top level management! .C1 can address the problems at the lower levels! 1) :'r*es f'r C0an#e "n Or#an"sa%"'ns: • • • • • )hange has become the norm in most organisations! .ime Reduction 2) Res"s%an*e %' C0an#es: @rganisational >evel @rganisational structures @rganisational )ultures @rganisational %trategies @ver determination ?%tructural inertia8 %ub'unit >evel "ifferences in subcommittee @rientation +ower and )onflict Group >evel Group Borms Group )ohesiveness Group think Individual >evel )ognitive 2iases -ncertainty <ear of loss %elective +erception =abit >ogical Reasons .echnological change 1anaging ethical behaviour Government policies )ompetition %carcity of resources 1ergers and ac.he changes stem from several factors! %ome are e9ternal arising from outside the organisation! %ome are internal arising from sources within the organisation! )auses for change: E9ternal )auses Globalisation &ork force diversity .uisitions +ollution6Ecological controls )alamities6Emergencies Internal )auses @rganisational silence <alling effectiveness )risis )hanging employee e9pectations )hange in the work climate "ownsi4ing Reengineering +roductivity improvements )ycle .

)D"fferen% *0an#e M'4els >ewin’s three stage model of change system: #s per Eurt >ewin’s <orce <ield 1odel effective change occurs by: • • • -nfree4ing the current situation! 1oving to a desired condition! Refree4ing the system so that it remains in this desired state! .ual #rrows )hange Resistance to )hange +0 +/ <orces for change .ime • • Refer the sketch In any organisation there are people who push for change and there are individuals who resist for change and desire status .o get the organisation to change managers must adopt a change strategy to increase the forces for change! %imultaneously reduce the resistance for change! • • • • • • 1.uo! Initially both the groups may be e.7) :'r*e :"el4 T0e'r! 'f C0an#e: ) De8el'/e4 6! K3r% Lew"n >evel of +erformance Resistance to )hange E.ual in their force! #t +/ the change starts occurring in steps and reaches a level of +0! #t +0 the forces balance between the two groups! &hen the forces are in balance the organisation is in a state of inertia and does not change! .

o shift or alter the behaviour of individuals departments or organisations where the changes are to take place! .he change becomes permanent! Bew attitudes values and behaviours are established as the new way of organisational approach! .uilibrium state that maintains status .o change sometimes through structural changes! .uo Encouraging individuals to discard old behaviours! +resenting the e9isting problem 1aking the people to recognise the need for change! Encouraging people to search for new solutions! Eliminating the rewards for current behaviours and discouraging current behaviours! b8 1oving: #ims • .o change sometimes through organisational development techni.uo 1oving "eveloping new attitudes values and behaviours Refree4ing Reinforcing new values attitudes and behaviours • .he new way of operating are cemented and reinforced! 1anagement should ensure that the new organisational culture and record systems encourage a new behaviour! @ld ways of functioning are avoided • • • d8 >ewin’s )hange 1odel: -nfree4ing Reducing the forces for status .ues! • • • c8 Refree4ing: • • .a8 -nfree4ing: Involves • • • • • • %haking up the e.o develop new behaviours values and attitudes! .he model proposes that for change efforts to be successful the : stage processes must be completed! <ailures can be traced back to anyone of the stages! @ld behaviours should be discarded and new behaviours are introduced! • • .

ransition management ensures that business continues while the change is occurring! #n interim management structure or interim positions may be created to ensure continuity and control of the business during transition! )ommunication of the changes to all involved employees customer and suppliers play a great role in transition management! • • • • • 11) Plann"n# M'4els • • • "eveloped by >ippit &atson .he phases are generally se.his model follows a seven step process as in the sketch: • • %couting Entry "iagnosis +lanning .his model is based on the principle that information must be freely and openly shared between the organisation and the change agent! .his information must be able to be translated into action! . <rohman ?/FIJ8 .ermination %tabili4ation .e8 .ransition 1anagement: • • • Is between any two phases of change! 1anaging transition is essential to keep the organisation going! .uences when need arises! %couting: − +hase where the change agent and the organisation jointly e9plore the need for change! − .his is a process of systematically planning organi4ing and implementing change from the disassembly of the current state to the reali4ation of a fully functional future state within an organisation! In the transition state the organisation is neither old nor new! %till the business must carry on! . &estley ?/FGH8! >ater modified by Eolb .uiring change! • • Entry: − In this phase development of mutual contract and mutual e9pectations take place! .uential but the change agent can change the se.hey also e9plore the areas re. Evaluation #ction • .

• "iagnosis: − In this phase the specific improvement goals are identified! • +lanning: − #ctual and possible reasons for resistance to change are identified! − +lanning for specific improvement of goals is also made! • #ction: − Indicates the implementation of the steps identified during the planning stage! • %tabili4ation and Evaluation: − +hase where evaluation is undertaken to determine the e9tent of success of the planned change! − .ermination: − +hase where a decision is made to leave the system or to end and begin another! 1 )T0e A*%"'n Resear*0 M'4els: • • .hese problems are removed with the help of an @" practitioner! b8 )onsultation with a behavioral e9pert: • #fter problems are sensed and reali4ed the help of an @" e9pert is sought c8 "ata gathering .o determine the strengths and weaknesses of the area under study! .uestionnaire! #lso analysis of organisational performance! d8 <eedback to key client or group: • • • "ata gathered is passed on to the client! .he consultant provides the client all relevant and useful data! .his model focuses on the planned change activity as a 5cyclical process’ H main steps involved in the action research model are e9plained below! a8 +roblem Identification: • • # stage in which the management senses the e9istence of one or more problems! .he need for further action or termination is also made in this phase! • . preliminary diagnosis: • • • )onsultant and organisational members gather the data! 1ethods used'interviews process observations .

consultant Bew #ction Rediagnosis of situations etc! .he group does validation further diagnosis and identified the problem! f8 *oint action planning: • • .he specific action depends upon on the organisation’s cultural technological and work environment problems to be resolved and the time and costs associated with the desired @" intervention! g8 #ction: • • %tage involves the actual change from one organisational state to another! Involves and includes: − − − Installing new methods and procedures! Reorgani4ing structures and work designs! Reinforcing new behaviours! h8 "ata gathering after action: • • • Is cyclic in nature! Bew data is taken to find the effects of actions already taken! 2ased on the feedback situations re'diagnosed and new actions taken! i8 %chematic diagram of action research model: +erception of problems by key individuals )onsultation with behavioural science e9perts *oint #ction +lanning <eedback by these e9perts to client group *oint diagnose of problem Bew data gathering as a result of action "ata gathering after action #ction <eedback to client group by consultants Rediagnosis .e8 *oint "iagnosis of the +roblem: • • • • . action planning by client .he consultant and management team jointly agree on problem $ solving methods! .he group discusses the feedback! <ocuses on any additional research needed! Results of additional research are summari4ed and submitted to the group again! .

he basis for this model is that an organisation e9ists in different states at different times! +lanned movement can occur from one state to another! -nderstanding of the present state of the organisation and the processes of change re.uired! 1odel consists of four phases • • • a8 E9ploration +hase: • @rganisation decides whether to plan for specific change and commit resources for it! @rganisational members who are aware of the need for change initiate the change process! .he rules for carrying out the consulting relationships! b8 +lanning +hase: • +lanning commences once the problems facing the organisation are understood! #nd the resources for @" are committed! .uirements wherein: − .1()-n%e#ra%"8e M'4el 'f Planne4 C0an#e: • • • "eveloped by 2ullock and 2atten ?/FHG8 "escribes both organisational states and change processes! .he organisation members make judgements about consultant’s skill and competence! − #nd the consultant assesses whether the client is ready for change and has the necessary resources and commitment! • • • • .he contracting phase lays the ground rules for a collaborative relationship and seeks clarification as to − − − &hat each party e9pects from the relationships! =ow much time each will invest and what it will cost! .he change process is undertaken after the 5diagnoses of sources of problems and then analy4ing it! "iagnosis is jointly undertaken by organisational members and @" practitioners! Goals are set for the change efforts! #ppropriate actions are designed to improve the organisation! #pproval of the key decision makers is also sought during this stage! • • • • • • .his leads to search for @" resources and assistance and then contracting @" e9perts! In the search process there is a mutual assessment of the re.uired to move to another state is re.

his is done to assess the progress and check whether positive results are being achieved! #lso to check if any modifications and refinements are re.his phase involves making the changes as a part and routine of regular organisational functioning after having successfully implemented and stabili4ed them! .uired for the process! • • • d8 Integration +hase: • .he change activities are monitored and evaluated periodically! .he new behaviour reinforced and further strengthened through: − − − • Regular feedbacks Incentives . Rewards! • %lowly the contract with the @" professional is gradually terminated! e8 .he integrative model of change is indicated in the sketch below: E9ploration %tage )hange +rocess Beed awareness %earch )ontracting +lanning +hase )hange +rocess "iagnosis "esign "ecision #ction +hase )hange +rocess Implementation Evaluation Integration +hase )hange +rocess %tabili4ation "iffusion Renewal 1+)Pers/e*%"8es 'n C0an#e: • • • <our major perspectives on organisational change! )ontingency perspective $ focuses on structural change! +opulation ecology perspective $ looks at the limits of change and resistance to change! Institutional perspective $ looks at becoming and change through imitation professionali4ation and compliance! Resource dependence perspective $ e9amines strategic change! • • .he changes derived from planning stage are implemented in this stage! It includes processes aimed at transitioning the organisation from its current state to the desired future state! .c8 #ction +hase: • • .

wo central dimensions of structure'speciali4ation and integration! Refers to the member and variety of different activities that make up individual jobs in an organisation! #ny job that consists of a single activity or very few activities is a highly specialised job eg! the job of a truck loader! %peciali4ation is also known as 5division of labour’ In an organisation there is usually a hori4ontal and vertical division of labour! @rganisations divided into manufacturing marketing accounting personnel etc! are called as hori4ontal speciali4ation or hori4ontal division of labour! • %peciali4ation: • • • • • .he most important notion in the four perspectives of organisational change is the idea of environment! Environment derived from 5Environ’ means to 5surround’! .he term phenomenon does not refer to a single phenomenon It includes a variety of phenomena in organisations! .hese includes: • • • • • • • • • )ustomers %uppliers # society Borms 3alues • • • )ompetitors Governmental agencies #n economy growth rate interest rate of %ocial inflation =abits • • • )ustoms .hat is everything that surrounds the organisation! %ignifies everything that e9ists outside our organisation! 3ariety of things that e9ists outside yet surrounds the organisation! .he fundamental idea is that it is the 5environment’ which is the source of most of the major changes! #n organisation changes if the environment changes! @rganisation is something that gets resources from outside converts them into products and services and gives these products and services back to the surroundings! • • b8 )ontingency +erspective: • • 1ainly concerned with the structure of an organisation! %tructure refers to the way in which an organisation breaks down a comple9 task into individual activities and integrates these separate activities to achieve its purpose! .a8 Botion of Environment: • .he term 5environment’ means 5the surrounding’ .

uires a change in the organisation structure! &hen an organisation grows larger or if they change their strategy or if they ac.hese bring about uniformity and standardi4ation in the activities of the organisation! &ithout these coordination mechanisms an organisation would be inefficient unproductive and chaotic! 2oth speciali4ation and integration are factors that are within the control of an organisation’s management! .he most common and familiar methods of integration are through direct supervision rules procedures and systems and goals plans and targets! .he main idea of contingency perspective is that the most effective or appropriate structure is one that is in 5fit’ or 5alignment’ with its contingency variables! #ny change in one or more contingency variables results in a misfit between the structure and the contingency variable! >ack of fit or misfit affects the performance of the entire organisation! 1isfit re.uired within an organisation! #ny change in these two dimensions is called as 5restructuring’ of an organisation! @rganisational changes almost always involve restructuring! In restructuring several .uire new technology or if there is a change in their environment they need to change their structure in order to remain effective! .Integration: • Refers to the various ways and means of coordinating the work of individuals in the organisation! .hese are the central .he management can determine the e9tent of speciali4ation and type of integration re.he most important aspect of contingency perspective relating to organisational change is the relationship between environment and structure! .here are two dimensions that characterise the environment of an organisation! • • • General: • • • • )ontingency +erspective: • • • • • • • • • • • • • .uestions arise! &hat types of structure? =ow specialised the jobs should be? &hat are the coordinating mechanisms in the organisation? Etc! .hese variables are: si4e of an organisation technology of an organisation strategy of an organisation and environment of an organisation! .uestions based on the contingency perspective! )ontingent means 5depending’! )ontingency factors depend upon contingency variables! .

his makes them dependent on the groups and organisations in the environments which control the resources that the organisation re.uires! "ependence of an organisation on other e9ternal organisations for resources makes it vulnerable because it creates uncertainty! +feffer and %alancik profounded two strategies: internal and e9ternal! Internal strategies are aimed at adapting and changing the organisation to fit the environment! . %#>#B)IE • 2ased on the simple premise that organisations need to ac.• @ne is the level of comple9ity $ how many different organisations are there in the environment! If the answer is few the environment is simple! If the answer is many the environment is comple9! .he higher the level of comple9ity and instability the higher the level of uncertainty! .uired to perform a task and the amount of information already possessed by the organisation! @ver the years contingency perspective has come under lot of scholarly criticism! %cholars say that it considers only two variables at a time: strategy and structureK si4e and structureK environment and structure and so on! 2ut the contingency variables are themselves related to one another! If is therefore necessary to study how the variables impact on one another and how these relationships affect structure! In recent years a new approach called 5configurational approach’ has emerged to deal with this inade.ask uncertainty is the difference between the amount of information re.uire resources from the environment in order to survive! .uacy in the contingent perspective! It is based on the assumption that attributes of si4e technology strategy and environment commonly occur together! In other words effective organisations have a cluster of common attributes! .his cluster of attributes is called a 5configuration’! • • • • • • • • • • • • • • • • c8 Resource "ependence +erspective: by +<E<EER .here are I strategies identified: • • • • Internal %trategy: • • "omain choice • Recruitment • 2uffing .he other feature is the level of stability! #re the different organisations in the environment changing? #nd if yes how fast? If the organisations in the environment are not changing or changing slowly then the environment is stable! If they are changing rapidly the environment is unstable! .

he environment consists of different niches! @rganisations survive in their niches by developing distinctive capabilities such as skills patterns of behaviours management systems suited only for their specific niche! .hose organisations that lack these capabilities are unable to get the re.uently some organisations die and a few others are born into the population! .his perspective states that individual organisations can not adapt to changing environments for a variety of reasons! %ome of the reasons can be: − − − − • @rganisational leaders may have incomplete information about the environment! @rganisational assets may be specific to its current tasks! .Environmental scanning Geographical dispersion E9ternal %trategy: • • • • • %moothing • Rationing #re meant to alter the environment to fit the organisation! G e9ternal strategies: • • #dvertising )oalescing • • )ontracting >obbying • )o'opting d8 +opulation $ Ecology +erspective: • .here may be legal and financial barriers to entry and e9it from current market or industries! • .here are : types of processes for such death and births: − − • • • • • • • • − 3ariation: are those processes that lead to differences in organisations in terms of strategy structure systems skills and culture! %election: refers to the process through which the environment selects those organisations that have the re.uired sources and therefore fail to survive! )onse.uired features $ some are selected out or die! Retention: constitutes those processes that help organisations retain the features that are re.he niche provides the resources for the organisations! .uired by the environment! • # major criticism against this perspective is that it does not provide any positive role for managers! .herefore it is more useful to study a population of organisations rather than a single organisation! +opulations means organisations which are similar $ restaurants te9tile firms two wheeler manufacturers etc! Each population occupies an ecological niche in the environment! .here may be political resistance to change inside the organisation! .

hey help organisations to change rather than learning about change! %emi'theoretical and semi'practical! 0 types of change models: "escriptive . +ainful? @ur knowledge is fragmented! : separate areas of management dealing with change! Or#an"sa%"'nal %0e'r"es: − Results of the work of scholars and academics! − .hey only study organisational changes than change organisations! − Bo single unified and coherent theory! Or#an"sa%"'nal C0an#e M'4els: − − − − − − &ork of academics consultants and practitioners! .)Un4ers%an4"n# %0e *0an#e Pr'*ess: • • # manager fre.ues intended to bring about specific types of changes in organisations! . +rescriptive! "escriptive $ informs us the way in which organisations change! +rescriptive $ lay down guidelines for bringing about effective change in organisations! +rocesses? • • • 1odels are useful and less comple9 than theories and offer practical advice but tend to be general rather than specific! Or#an"sa%"'nal C0an#e T''ls: − %pecial tools and techni.uently grapples with change! &hy? =ow? #re there different types? &hich is better? @rganisational levels? >imitations? 1essy .uisite resources! • • • • • • 1.hey are also called as 5symbolic elements’! @rganisations change their structures and strategies not to improve performance but to conform to the norms and standards of the institutional environment! @rganisations that conform to the norms and standards are considered as legitimate lawful and proper! %uch organisations are able to obtain the necessary resources! @rganisations that lack legitimacy have difficulty in getting the re.e8 Institutional +erspective: • %ocial norms values and culture of the environment in which they operate affect organisations! Borms values and culture make up the institutional norms! .

he above is 5intro organisational’ change! #nother type refers to the organisation as a whole! .hese are strategy structure and people management! # model of change levers is indicated below: 1arketing .echnology Mana#"n# Pe'/le Cuality )osts .his is truly 5organisational’ @rganisational change includes intro organisational! @rganisation levers of change − − − − − − • • • • &hat to change $ is content of change! =ow to change $ is process of change! <our areas which constitute the content of change $ technology marketing .uality and costs! In order to bring about changes in these organisations need to change three other aspects! .• • If we want to change effectively we must integrate theory and practice! It is the combination of right values right knowledge and right action that leads to productive change! Right 3alues 1anagement of change Right knowledge Right action T0ree *'$/'nen%s 'f Pr'43*%"8e C0an#e • • &e have to distinguish between two types of organisational change! @ne type includes all the changes that take place inside an organisation $ computeri4ation new inventory control etc! .

uire careful implementation to overcome the fear! )hanges are implemented 5top down’ or 5bottom up’ approach .uipped to manage this reaction! I Educating participants about the need for change and training them with the necessary competence to be effective to overcome resistance and gain commitment! H +ersevering with the change process and avoiding blame where an attempt to implement a fact of this process fails! %uch negative action will generate resistance and reduce necessary risk'taking behaviour! F <acilitating the change process with necessary resources! /J 1aintaining open communication about progress mistakes and subse.uisites which must e9ist before transformational change can be achieved! .)Lea4"n# %0e C0an#e Pr'*ess: • • Implementation of strategic change is likely to be problematic! %ince this involves people their emotional and personal relationships are involved! )hanges are perceived as 5deviant or normal’ and 5threatening or desirable’ 5"eviants’ are those which are imposed or outside the prevailing cultural norms! %uch changes are generally met with resistance and re.uire a long time to implement fully even though there may be short'term dramatic changes as part of the overall process of transformation! L Recognising that resistance to change is a part of the normal process of adaptation so that managers can be educated to be aware of this and e.hey are: +riority +rere.uent learning! • • • • • • • .op down is perceived as imposed and controlledK while bottom up is participative! 52E)E=#R"’ suggests /J organisation prere.1.uisite / Ensuring senior management commitment to the proposed changes which needs to be visible to all participants through out the organisation! 0 +roducing a written statement about the future direction of the organisation that makes clear its new objectives values and policies! : )reating a shared awareness of conditions to produce a common perception that change must be implemented! D #ssembling 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! G Generating an acceptance that this type of change will re.op down is transformationalK bottom up is incremental! .

%alaman suggests three sources =R1 is moving from =R specialist to the line manager! In strategic =R1 the =R philosophy has to be integrated with the line manager! >ine 1anagers: • • . +ettigrew presented the central components of strategic =R1 as follows: − .he features are: − %pecific =R outcomes or desired employee behaviour has to be adapted to achieve the desired corporate strategy! • • • .he use of planning − # coherent approach to the design and management of personnel systems based on an employment policy and =R strategy and often emphasi4ed by a 5philosophy’ − 1atching =R1 activities and policies to some e9plicit business strategy! − %eeing the people of the organisation as a 5strategic resource’ for achieving 5competitive advantage’ • 1abey .he : key levers are: cultural personnel and structural! .a8 %trategic =R1 for implementing change: • =endry .hese : contribute to the employees’ behaviour! # fantastic idealistic situation but difficult to achieve! )orporate %trategy )ulture +ersonnel %tructure =uman Resource @utcomes )hange is the heart of the 5open’ approach to =R strategies as indicated in the sketch above! -sed for both top down and bottom up approaches! • • b8 Responsibility for leading the implementation of the change process: • 1abey . %alaman model has an 5open’ approach to =R strategies! .

he =R specialist! − − − − − • • =as a close awareness of the organisation’s operating environment and business plans! "evises the personnel strategies for the best =R outcomes! Integrates personnel structural and cultural strategies! %ecures the resources necessary for change programmes! %ells the ideas of =R1 changes to other managers! E9ternal )onsultants: • 2esides line mangers and =R specialists working in concert e9ternal consultants may also be called upon! .hey act as catalysts to develop novel solutions! )onsultant has to be involved from the beginning to the implementation and stabili4ation stages! • • • • • • .he e9ternal consultant provides the off the shelf recipe for the client! Recommends course of actions "iagnoses the problems =elps managers to implement change measures! .• >ine managers better! − − − − )ommunicate plans to their workforce E9plain their relevance vis'M'vis strategy! @perate personnel procedures! 1onitor the performances of the procedures! =uman Resource %pecialists: • Increasing importance to the line manager does not signal the death of =R specialist! #s shown in the open =R1 approach sketch the =R specialist has a 5change maker’ role! .

hat knit the organisation together and are shared by employees c8 /J )haracteristics of )ulture: /! Individual Initiative: • .he degree of responsibility freedom and independence that individuals have 0! Risk .wo terms are key to the concept of culture =istory $ cultural heritage of a society are passed on from generation to generation! %hared phenomenon $ is basic to culture and implies that the cultural ethos is shared among the members of the society! • b8 @rganisational culture6)orporate culture: • • • • • =as been defined as the: +hilosophies #ssumptions #ttitudes • • • Ideologies 2eliefs Borms • • 3alues E9pectations .M<A – CHANGE & KNOWLEDGE MANAGEMENT CHANGE MANAGEMENT MODULE ( – ORGAN-SAT-ONAL CULTURE CHANGE A5 Mean"n# & Def"na%"'n: a8 )ulture: is a comple9 whole: which includes • • • • • • Enowledge 1orals @ther capabilities • • • 2elief >aw @ther habits • • #rt )ustom #nd ac.he degree to which the organisation creates clear objectives and performance e9pectations! .--.uired by a man in society! .he degree to which employees are encouraged to be aggressive innovative and risk seeking! :! "irection: • .olerance: • .

he degree to which members identify with the organisation as a whole rather than with their particular work group or field of professional e9pertise! H! Reward %ystem: • .hese are conservative bureaucratic and traditional organisations! )onformity and adherence are valued! .he degree to which managers provide clear communication assistance and support to their subordinates! L! )ontrol: • .he degree to which employees are encouraged to air their conflicts and criticism openly! /J! )ommunication +atterns: • .D! Integration: • .olerance: • .he number of rules and regulations and the amount of direct supervision that is used to oversee and control employee behaviour! I! Identity: • .he degree to which reward allocations are based on employee performance criteria in contrast to seniority favouritism and so on! F! )onflict . GNnter in their book 5)orporate #ssessment’ ?/FF:8 classified corporate culture as follows: /! # =umanistic $ =elpful )ulture: @rganisations are managed in a participative consultative and mutually supportive manner! 0! #n #ffiliative )ulture: Interpersonal relationships are given high priority! :! #n #pproval )ulture: #greement consensus seeking conflict avoidance dominate this type of organisations! D! # )onventional )ulture: .he degree to which organisational communications are restricted to the formal hierarchy of authority! • &hen these characteristics are mi9ed and meshed we get the essence of culture! <5 Twel8e T!/es 'f C'r/'ra%e C3l%3re: <urnham .he degree to which units within the organisation are encouraged to operate in a coordinated manner! G! 1anagement %upport: • .

uate considerations of approach strategy! o .hat is all in this core group believe that the idea is a good one is workable is worth running some risks for and is worth the investment of time money and energy that will be re.uality emphasis behaviour is valued in this culture! C5 H'w Or#an"sa%"'nal C3l%3re S%ar%s: /! # single person ?founder8 has an idea for a new enterprise! 0! .his gap is due to the e9cessive attention paid on cultural plans and inade.itled 5%trategies for )ultural )hange’ by %!2ate in /FFG! o 1anagers should know that many times the gap between plans and implementation of culture is wide! o .he delivered results are frustratingly disproportionate to the efforts and costs incurred! o .uired! :! .G! # "ependent )ulture: )entralisation formal roles and seeking instructions from seniors all the time for all the activities are the traits of this culture! L! #n #voidance )ulture: +unishing mistakes and no reward to good work characterise this type of organisations! I! #n @ppositional )ulture: #warding negativism and being critical is the virtue in these organisations! =ere members critici4e each others decisions! H! # +ower )ulture: -sing positional power hierarchical orientation arbitrariness and subjectivity prevail in the organisations of this culture! F! # )ompetitive )ulture: Employees are rewards and for e9ceeding targets outperforming others and this culture promotes win'lose situations! /J! # +erfectionist )ulture: +erseverance perfection hard work are valued here and avoiding mistakes is the hallmark of this type! //! #n #chievement )ulture: It is characterised by success achieving targets and accomplishing their own goals and pursuing standards of e9cellence /0! # %elf #ctualisation )ulture: )reativity research and development .he founding core group begins to act in concert to create an organisation by raising funds obtaining patents incorporating locating space building and so on! D! #t this point others are brought into the organisation and a common history begins to be built! G! Egs: 1otorola 1c"onald’s &al'1art D5 :'3r Pra*%"*al A//r'a*0es %' C3l%3ral C0an#e: 2ook .he founder brings in one or more other key people and creates a core group that shares a common vision with the founder! .he classifications below help practitioners to gain a broad perspective of approaches that are available to them! o =R managers should advocate a suitable approach for implementation of cultural change based on the type of cultural change planned and organisational environment! .

uo • 0! )onciliative • • • • • • • • • • :! )orrosive • • • • • • • • • • • >ead to genuine and large scale change initiated by small scale network >ead to wide scale changes at an informational technical level • Is used to defined e9isting order and oppose change initiations! "oes not succeed in bringing about fundamental cultural change! D! Indoctrinative • E5 H'w C3l%3re Per/e%3a%es -%self: D =iring .o . sociali4ation of members who 5fit in’ with the culture Removal of members who deviate from culture 2ehaviour / )ulture : )ulture communications )ulture .op down monitored "etailed plans6actions Reasonable .he approaches: #ppr oach /! #ggressive • • • • • )haracteristics Rapid change "ismantles traditional values Bew culture is non' comple9 .uiet %low change over to new values "eals with means not ends )ollusion not confrontation! )ontinuous development 2ased on power and control -ses informal network -nseen manipulation =igh participation #ct first legitimi4e later +lanned and programmed E9plicit learning process %ociali4ing -nified logical network #dvocates one world view • It )an >ead to a strong integrated culture! %uit a situation where there is a simple source of authority >oads to a common sense welcoming of new culture "isarm opposition • • • 2ut it usually 1obilises distant Is politically native >acks skills breadth of support leads to crisis of change! >oses sight of its radical intent! Gets seduced back to status .

his step impacts the culture by hiring and sociali4ation of members who match the culture! G $ .• • • 0 1anagers seeking to create culture change must intervene at these points / $ .he first thing to change is people’s behaviour through direction and training! 0 $ Indicates the cultural justification for the behaviour of the organisation’s members! : $ Bew rituals new stories and new heroes are needed to be widely and consistently communicated! D $ .ake 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! D! Identify the depth of culture change needed! G! )ommunicate the change translated into goals sub'goals activities and behaviours! L! 1ake changes from top down! .he top management commitment must be seen and felt! I! Involve employees in the change process! H! )heck on the leadership and support processes to overcome an9iety among managers in giving up their earlier responses! # positive and competitive tension is to be nurtured among department! F! 1onitor the progress from time to timeK build momentum in terms of initial success! /J! "efense resistance! "espite this e9pect certain casualties to occur $ some employees may leave the organisation and a few set backs may occur to the change effort! //! "evelop ethical and legal sensitivity! )ulture change can ignite tensions between organisational and individual interests resulting in ethical and legal problems for individual members! +romoting performers demoting laggards and terminating undisciplined people lead to ethical and legal problems! Guidelines for minimi4ing such tensions would be: • • • • %etting realistic values for culture change! Bot promising what the organisations can not deliver! +roviding mechanisms for member dissent and diversity! Educating managers about the legal and ethical pit falls inherent in culture change! .he way to reinforce a culture is to remove those organisational members whose behaviour deviates from the cultural values of the organisation! %uch removal reduces the variances in behaviour and sends to those in the organisation powerful signals relating to appropriate behaviour! • • • • :5 G3"4el"nes&C0e*=l"s%s f'r *3l%3ral *0an#e: /! <ormulate a clear picture of the firm’s new strategy and of the shared values norms and behaviours needed to make it work! 0! .

uently! o #ccepted: • 1ost members must at least accept if not embrace the assumptions and values of culture! o Implicit: • )ulture should be an increasingly acceptable conversation topic among employees! o # reflection of .here is no best culture for all times! • )ulture depends upon the organisation’s goals competition and other factors of environment! industry nature of /! Integrated: • )ultures will be more easily recognised when their elements are generally integrated! #nd elements consistent with each other! .hey must fit together like pieces of pu44le! • • o %table: • )ulture should not keep on changing fre.op 1anagement: • • )ultures evolve from top management! 1anagement’s sayings have powerful influence on employees! o %ymbolic: • • 1anagement actions are even more important to watchful employees! Employees .uickly detect manager’s lip service! o %ubculture: • # culture in an organisation may be made up of various subcultures! o )ultures of varying strength: • • )an be characterised as relatively strong or weak! "epends on the degree of impact on employee behaviour o Bo one type is the best: . C0ara*%er"s%"*s 'f Or#an"sa%"'nal C3l%3res: /! "istinctive: .• =elping them develop guidelines for resolving such issues! G5 1.

hey must be able to communicate to the employees! E9amples of formal communication vehicles for transmitting organisational cultures are: o o o o o E9ecutive visions of the firm’s future )orporate philosophy statements! )odes of ethical conduct! +ublicly recognising heroes and heroines! Retelling historical success stories! • -nintentional communication of organisation’s culture to employees such as a manager’s error and an e9ecutive’s forgiveness! /! @rganisational %ocialisation: • • #ll cultural communications are put under this umbrella! Is a continuous process of transmitting key elements of an organisation’s culture to employees! )onsists of both formal and informal methods! .hese approaches help to shape the attitudes thoughts and behaviour of employees! @rganisational sociali4ation is like placing an organisation’s finger prints on people by planting its own genetic code on them <or employees it is the essential process of learning the ropes to survive and prosper within the firm! %ociali4ation is functional for both workers and their employers! • • • • • 0! %tory .hey enhance cohesion around key values! 1emorable stories uplift people entertain and also teach valuable lessons! %tory telling is a key means of achieving sociali4ation of employees! • • • • • • • • .elling: • 1anagers are encouraged to engage in story telling as a way to forge a culture! It also builds organisational identity! Good stories tap into the emotions of audience! .hey prove to be powerful ways to create shared meaning and purpose! %tories convey a sense of tradition! %tories convey how in the past problems have been solved! .H5 C'$$3n"*a%"n# an4 *0an#"n# *3l%3re: • • • @rganisations have to consciously create and manage their cultures! .

:! Individuali4ation: • @ccurs when employees successfully e9ert influence on the social system around them at work by challenging the culture or deviating from it! . effectiveness: +robable Effectiveness )ulture )hange 1ethod 3ery Great Great 1oderate 1inimal .he interaction between individuali4ation and sociali4ation is shown in the sketch: =igh )onformity %ociali4ation ?impact of organisational culture on employee acceptance of norms8 Isolation >ow >ow Individualisation ?Impact of employee on @rganisational culture "eviation from norms8 =igh Rebellion )reative individualism • • .uestion and e9periment while also not being too disruptive them creative individuali4ation can infuse new life and ideas for the organisation’s benefit! • • D! )ulture )hange 1ethods .he two e9tremes rebellion and conformity may prove dysfunctional to the organisation! Isolation is not productive! &hen we assume that the culture of a certain organisation invites its employees to challenge .

understand the current values cultures patterns of behaviour within the organisations and strategic directions of the organisation! g8 &ork out a desired strategy and desired culture and ensure they match and congruent! h8 Identify the gap between actual and desired culture and take steps to move the actual culture to the desired culture! • • +rior to any culture change senior management must understand the implications of the new culture for their own practices artifacts and declared values and be involved in all the main change phases! .uate resources need to be allocated to support culture change and maintain it once it has been achieved! )ulture change programs must pay careful attention to the organisation’s power bases and opinion $ leaders such as trade unions and employee’s association • • • +ublicly recognise heroes .he reality of achieving this is very comple9 and organisations with similar backgrounds and similar environments develop different cultures at different situations! #de.op 1anagement %upport -se %tories and 1yths -se %logans -5 H'w *an 'r#an"sa%"'ns real"#n *3l%3re> Ar*0"%e*%3re: • • • • • • :ea%3res 'f %0e C0an#e .rain Employees Reward 2ehaviours )ommunicate .. heroines #ppoint a manager of culture <ormulate 3alue statement .ypical frameworks for managing culture change: #s suggested by 2eckhard the general principles for successful cultural change are as follows: f8 Enow .op down and bottom up are two of the approaches by =R1 for change of culture! /! .here has been considerable debate as to whether culture can be managedO >ot of focus on whether or not it can be modified! )ulture can be altered it can be managed! It can be realigned to the strategic direction on organisation wishes to take! )ulture is a dynamic continuously developing phenomenon 1anagers can manage cultureK change cultureK prevent its changeK abandon the cultureK or destroy the culture! .

o succeed it is crucial that employees have the necessary capabilities and behaviours to reali4e the necessary change! .op'down draw backs: o 1essages of initiative autonomy and innovation are usually conveyed through bureaucratic methods such as team briefings etc! o Employee believes the new culture conflicts with their e9isting culture! • • • :! 2ottom up approach for cultural change: • • • • • <ocuses on incremental approach )hange is developed from bottom up! %uch changes are tied to an organisation’s critical path 2ased on solving concrete business problems called 5task alignment’ .ask alignment could be achieved through a series of overlapping steps taken at the business level as shown below: L Evaluate outcomes of changes and amend vision and actions as necessary <IBI%= G D )onfirm changes by ensuring that policies procedures and structures support them %pread the changes out to other areas of .ypically looks towards organisation'wide consensus and focusing on e9isting values and cultures! )hange of organisation structure management of office space provision of educations and training =R" programmes like .• )ulture change programs must take into account an organisation’s e9isting practices and approaches in recruitment selection and retention training performance management and employee relations! In order to create a change in culture organisations need to decide how practices or procedures will be amended to support the new espoused values and contradictory practices removed! Every opportunity should be taken to close the cultural gaps reinforce the e9isting culture to achieve the newly espoused cultures and values! • • 0! .op "own %trategy for cultural change: • • • • @ften called 5programmatic change’ .uality e9cellence empowerment performance related pay are a few =R interventions for change of culture! .ypically initiated and led from the top! &rites on corporate e9cellence follow this! .

organisation

: &ork towards common agreements of the vision and skills and actions to carry it forward

0

&ork jointly to develop a vision for the future of the organisation %,#R,

/

%tart to ensure commitment to the change by involving people in defining the problems

<ocuses on parts of the organisation away from the corporate head.uarters level! Emphasis on individuals shared commitment and vision as a prere.uisite for change! )hange is enabled by developing people’s abilities and through improved co'ordination between people! Results generate stronger commitment! ,he appropriateness of a chosen strategy will depend upon the organisation and what an organisation wishes through cultural change!

• •

D! "esign +arameters for cultural change:

,he relative importance organisations!

weight and value will differ between

• •

&hat is effective or appropriate in one situation may not be in another! 2ate’s development of 5design parameters for cultural change’ +ara' meters E9pressiveness #spect of the organisation #ffective ?feelings8 "escription

component ,he ability of the cultural change approach adopted to e9press a new symbol which captures employees’ attention and e9cites or converts them!

%ocial components ,he ability of the culture change ?relationships8 approach adopted to create a shared common understanding and sense of common purpose amongst a group of employees or the whole organisation! "emographic ,he ability of the culture change component approach adopted to spread through ?number6depth8 out all levels of an organisation and to affect employees’ basic underlying assumptions

+enetration

)ommonality

#doptability

"evelopment component ?process8

,he ability of the culture change approach adopted to adjust to changing organisational and wider environmental circumstances!

"urability
• •

Institutional component ,he ability of the culture change ?structure8 approach adopted to create a lasting culture!

#t the start of a culture change process e9pressiveness may be considered more important whilst commonality and penetration are considered as less important! =owever 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!

G! Relative Effectiveness of ,op'"own #pproach and 2ottom'up #pproaches to cultural change across different "esign +arameters of cultural change: +arameters E9pressiveness >evel of Effectiveness of ,op'"own #pproaches 2ottom'up approaches =igh $ deal in simple >ow 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 .uickly at the practice6artifact level >ow $ promoted unifying =igh $ operates through feeling often ceases after shared understanding and formal program endsK methods creates a culture of trust and often lead to resistance and understanding! lack of common ownership 3ariable $ depends on ability of interventions to affect more than just practices or artifacts: highly structured programs likely to reach all employees >ow $ tend to be infle9ible and imply instant fi9 programmed nature implies conformity and devalues deviance! >ow in short term $ involves only part of the organisation =igh on long term $ involves discussing proposals and implications with employees =igh $ concrete problems lead willing to accommodate new views and find best fit with organisational re.uirements!

#daptability

+enetration

)ommonality

>ow $ based on senior management’s desiresK lack of ownership by employees likely to be highest with transformational change

=igh $ employees are keen to preserve what they have createdK especially high when a development of e9isting practices which employees own rather than transformational change!

• • • •

• • • • • •

?5 T0e Trans#l'6al & Cr'ss C3l%3ral C'n%en%s:
• •

# global economy is now a reality! ,he shape of international trade has changed dramatically in recent years with the emergence of European )ommunity revolutionary changes in the former %oviet -nion ; Eastern Europe and strong markets developing in )hina India *apan Eorea and many other emerging nations! 1any organisations now do business in more than one country! ,hese multinational organisations add powerful new dimensions to organisational behaviour! ,hese multinational organisations add powerful new dimensions to organisational behaviour! ,hey encompass different social legal political communication and economic environments! )onditions affecting 1ultinational operations:

• •

+eople of the world are organised into communities and nations each in its own way according to its resources and cultural heritage! ,here are similarities and significant differences! a8 %ocial )onditions:

"urability

,he two approaches effectiveness differs across the parameters! Bo approach is the best fit any organisation! Bo one approach will give everything we re.uire! %trategy for culture change should be tailored to the re.uirements of the organisation at a particular time! ,op'down approach brings relatively rapid changes in the organisation! 2ottom'up approach takes a longer time! 1anaging organisational culture change is e9tremely comple9! It needs to take account of the e9isting culture! #lso what type of change we need $ transformational or developmental &=I++ says: 5culture is a +andora’s bo9’

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

hey need to recognise that the resolution of ethical issues are not always clear cut #nother major issue revolves around the treatment of women and other minorities! • • • • c8 +olitical )onditions: • .hese deficiencies limit the ability to employ local labour productively! Beeded skills must be imported temporarily from other countries! +arallely vast training programs begin to prepare the local workforce! >ending of skilled people to a nation for training their local replacements may provide a more lasting benefit to its development than lending the capital! &hat is called as 5training multiplier effect’ or 5ripple'effect of self development’ comes into action! >oaned skilled people develop othersK and those trained locals become the nucleus for developing still more people! # significant social condition in many countries is that the local culture is not familiar with the advanced technology or comple9 organisations! #nother social factor on which countries are often compared is the work ethic of their employees $ long6short hours! • • • • • • • • b8 >egal .heir employment practices and their business practices vary! # major issue affecting multinational corporations has been how to deal with contrasting local practices customs and behaviours! 1anagers need to be aware of the possible differences in both laws and ethical values that define acceptable and unacceptable behaviours in foreign countries! 1anagers in foreign countries need to become familiar with local customs and practices! .he most significant economic conditions in less developed nations are: .he following have a significant effect on organisational behaviour: o Instability of the government o Bationalistic drives $ foreigners cornered! o %ubordination of employers and labour to an authoritarian state! d8 Economic )onditions: • . Ethical )onditions: • • • )ountries around the world vary substantially in their legal systems! .• .here are major shortages of managerial personnel scientists and technicians! .

uire to be more productive! .hese limiting conditions cannot be changed rapidly! Instead they are too well established and woven into the whole social fabric of the nation! .ual distribution of wealth • Rapid population increases coupled with a lack of national economic growth make it unlikely that family incomes will progress significantly! #s a result natives of those countries may not believe that additional effort on their part will earn associated rewards! Inflation makes the economic life of workers insecure! 1oney loses its value rapidly social unrest increases! .hey represent a critical environmental condition to which the managers of international operations must adapt! • • • • • • • • • • • e8 )ulture .hese beliefs norms and values are passed on to future generations through cultural rituals stories and symbols! )ultural norms: • . 2ehaviours: • • • • )ulture determines behaviours! 2ehaviour in organisational settings varies across cultures! =uman resource practices too vary across cultures! "iffering standards of living and varied geographical conditions can also cause variations in behaviour! 2ut culture is the determining factor! )ulture may be understood as the all encompassing: o %hared beliefs o Borms o 3alues that guide the everyday life of individuals! • • • .− >ow per capita income! − Rapid inflation! − -ne.hey constrain the stability security and trained human resources that developing countries re.hen some workers passively accept the situationK others aggressively protest! #ll these factors make it difficult to motivate employees! >ooking at social legal ethical political and economic conditions as a whole bad condition causes hurdle in the introduction of advanced technology and sophisticated organisation systems! .remendous disparity in distribution of wealth starts! .

o +rescribe behaviours and practices! o .ell us what is most dear to our hearts! #mericans for e9ample value freedom mostK *apanese find a higher value in belongingness in a groupK #rab culture concentrates on their own family security and relying on god for destiny! )ultural values also have a major influence on the way people relate to each other and also to what they aspire for in a job! In many hierarchical cultures ?like India *apan etc8 the meaning and value of a job lies more in the status than in the pay packet! +eople also e9pect recognition for seniority and age in hierarchical culture! In more egalitarian culture ?like -% Germany etc8 people e9pect reward and compensation for their performance rather than for their seniority! )ulture not only influences behaviour and human resources but also life style like elegance elitism and concern for form! )ultural values of the society define the meaning and reason of business and how it is organised! In many cultures cultural values of the society define the meaning and reason of business and how it is organised $ high profits are not a criterion $ #rabs Italy %pain >atin #merican countries %ometimes cultural differences have a direct impact on the strategic orientation of companies like -%# companies emphasi4e on more profits dividends and stock prices while *apanese companies focus more on new product development and market share! • )ultural %ymbols %tories and rituals: − It is important to communicate the norms values and beliefs of a society to its members! − )ulture is passed on from one generation to another through its symbols stories and rituals! − )ulture is continuously reinforced when people see symbols hear stories and engage in rituals! f8 )ulture )lusters: • • )ountries that share cultural similarities form cultural clusters! )ultural clusters do have some differences but similarities are predominant! International business utili4es the culture clustering approach in formulating their global strategies! • K5 H'fs%e4e@s C3l%3ral D"$ens"'ns: • # pioneering work done by "utch %cientist Geert =ofsteds! .hey tell us what we can do and what we cannot! • )ultural 3alues: − − − − − − − − − − .

he dimension of power can be measured in a number of ways: − − − − In high power distance countries generally people dislike work +eople try to avoid the work! 1anagers believe that they must adopt theory P leadership style! 1anagers believe that they must be authoritarian must force workers to perform and must supervise their subordinates closely! • In high power distance countries: − − − − − − "ecision make is centralised! .he powerful are entitled to privileges and .ualifications! %uch structures encourage and promote ine.• =e identified four cultural dimensions around which countries have been clustered with people in each group e9hibiting identical behaviours! .he powerful should not hide their power • .end to be decentrali4ed! =ave flatter organisation structures =ave smaller proportion of supervisory personnel =ave highly .hey will have a large proportion of supervisory personnel +eople at low level have low of job .uality is fundamentally good! Everyone has a placeK some are high some are low! 1ost people should be dependent on a leader! .uality between people at different levels! • @rganisations in low distance countries: − − − − .ually! )ountries in which people blindly obey the orders of superiors have high power distance! • • =igh power distance countries have norms values and beliefs such as: − − − − − Ine.hose at the top make most of the decisions! @rganisations tend have tall structures! .ualified people in the lower state of workforce! • -%# )anada Germany #ustralia Borway etc! represent cultures with lower distance! .he D dimensions are: +ower "istanceK -ncertainty avoidanceK Individualism and 1asculinity6<eminity! /8 +ower "istance: • • +ower distance is the e9tent to which less powerful members of countries companies and organisations accept that power is distributed une.

hese employees have a high level of uncertainty avoidance and prefer to avoid ambiguity at work! • • =igh uncertainty avoidance countries are characteri4ed by norms values and beliefs which accept that: − − − − − )onflict should be avoided! "eviant people and idea should not be tolerated! >aws are very important and should be followed E9perts and authorities are usually correct and )onsensus is important! • )ountries with high uncertainty avoidance culture have: − − − − − # great deal of structuring of organisational activities! 1ore written rules! >ess risk taking managers! >ow labour turnover >ess ambitious employees • %ocieties with low uncertainty avoidance cultures have: − − − − − − >ess structuring of activities! <ewer written rules 1ore risk taking by managers =igher labour turnover 1ore ambitious employees @rganisation encourages employees to use their initiative and assume responsibility for their actions! :8 Individualism6)ollectivism: • Individualism is the tendency of people to look after themselves and their family only! )ollectivism is the tendency of people to belong to groups and to look after each in e9change for loyalty! • .• <rance India 2ra4il 1e9ico and Indonesia are e9amples of societies with a high power distance! 08 -ncertainty #voidance: • • Is the e9tent to which people threatened by ambiguous situations? Employees in some cultures value clarity and feel very comfortable receiving specific directions from their supervisors! .

%weden! +eople of Indonesia India +akistan and a number of %outh #merican countries e9hibit collectivism! )ountries high on individualism have norms values and beliefs which accept that: − − − • +eople are responsible for themselves! Individual achievement is ideal and +eople need not be emotionally dependent on organisations or groups! • )ollectivist countries believe that: − − − @ne’s identity is based on one’s group membership! Group decision making is best and Groups protect individuals in e9change for their loyalty to the group! • In a collectivist organisation: − − − .end to promote nepotism in selecting managers! +romotions are mostly based on seniority and age! Important decisions are made by older senior managers! • In a individualistic organisation: − − − <avouritism shown to friends and relatives is considered to be unfair and even illegal! +romotions are based on one’s performance "ecision making is an individual’s responsibility! D8 1asculinity6<eminity: • 1asculinity refers to a situation in which the dominant values in a society are success money and other material things! =ighly masculine cultures have norms values and beliefs that: − − − − − − Gender roles should be clearly distinguished! 1en are assertive and dominant! 1achismo or e9aggerated maleness is good! +eople especially men should be decisive! &ork takes priority over other duties such as family and #dvancement success and money are important! • • • • • In highly masculine societies jobs are clearly defined by gender! .here are men’s jobs and women’s jobs! 1en usually choose jobs that are associated with long term careers! &omen usually choose jobs that are associated with short term employment before marriage! .• • Individualism is common in -% )anada #ustralia "enmark .

his is a very critical time! .he e9patriate may e9perience a range of positive and negative emotions such as e9citement an9iety fear of the unknown sense of adventure and so on! .he concept of an adjustment cycle or .here can be an upswing of mood upon arrival in the 5assignment’ country that produces a 5honeymoon’ phase! .curve shows that typical phases that may be encountered during cultural adjustment! #djustment +hase'/ +hase : +hase 0 +hase D • • .ime )risis6 )ulture %hock • .he curve is based on psychological reactions to the overseas assignments and comprise D phases! +hase /: • .he process of cultural adjustment is a critical determinant of an e9patriate’s performance! #djustments to a foreign culture are multifaceted and individuals vary in terms of their reactions and copying behaviours! .L5 C3l%3ral A4A3s%$en%: • .hen novelty fades off realities of everyday life in an alien land starts! # slow negative appraisals of location and situation leads to a crisis! • • • +hase 0: • • .he way the e9patriate copes with the psychological adjustment at this phase has an important outcome in terms of success or failure! # haunting thought 5failure as an early recall’ may be triggered at this point! • .

hen there is an upswing .hreats *apanese +ersuasionK functional group activities Group harmony #rab )oachingK personal attentionK parenthood @f others6 parenthood • • Independence decision making space time money @pportunity Group participation ReligionK company success nationalisticK admiration Individual Group identity Individual status contribution belonging to group class6society promotion %alary commission #nnual bonus Gift for self6familyK profit sharing social services family affairK salary fringe benefits increase >oss of job @ut of group "emotion .he upswing levels off after sometime! # healthy recovery is maintained .+hase :: • @nce the individual passes this crisis point he comes in terms with the demands of the new environment! .he person begins to adjust to the new environment! • • +hase D: • • • .he bottom of the -'shaped curve is marked by 5culture shock’ which is the e9patriate’s reaction to a new unpredictable and uncertain environment! )ulture shock is a natural response to the stress of immersing oneself in the new environment! %ervice culture shock is often a positive sign indicating that the e9patriate is becoming deeply involved in the new culture instead of remaining isolated in an e9patriate ghetto • • M5 C3l%3ral C'n%ra*%s "n $'%"8a%"'n – M'%"8a%"'n A*r'ss C3l%3res: • • &hat are the motivations of people in international settings? In multicultural work environments not everyone is motivated by the same factors! 1otivational processes approaches and applications reflect the culture of the country directly or indirectly! .he table below shows the motivational approaches and cultural factors for three distinct cultures! <actor #merican 1anagement >eadership styles friendliness )ontrol Emotional appeal Recognition 1aterial awards .

uired while dealing with contingency factors such as subordinates’ characteristics! #lso in response to the cultural and institutional conte9t of the multinational country locations! • • .uires that managers adjust their leadership styles to fit the different situations! %uch responses are re.ualities to become successful in global settings! #n international manager emotional intelligence! a8 EI has a set of G individual and social competenciesK they are: self awareness self regulation motivation empathy and social skills! • • %elf awareness: is the ability to recognise and understand one’s moods emotions and drives as well as their effects on other people! >eaders with a high level of self'awareness e9hibits self confidence a realistic self assessment and a self deprecating humour! %elf regulation: is the ability to control redirect disruptive impulses and moods $ the ability to think before doing! >eaders with a high level of self regulation e9hibit trustworthiness integrity comfort with ambiguity and openness to change! 1otivation: is reflected in a passion to work for reasons that go beyond money or status! >eaders high on motivation e9hibit remarkable commitment drive to achieve and optimism! organisational • • • • • • Empathy: refers to understanding the emotional make up of other people and skill in treating people according to their emotional reactions! >eaders with a high level of empathy demonstrates an ability to build and retain talent in their organisation show cross cultural sensitivity and become known for offering great services to clients and customers! %ocial skill: refers to the proficiency in managing relationships and building networks along with an ability to find common ground and to build rapport! >eaders with a high level of social skill are effective at leading change show a superior ability to build and lead teams and become known for their persuasiveness! • • • b8 >eadership in the Bational )onte9t: • • In international settings the leadership needs to be situational! %uccessful leadership in multinational companies re.ue .)ultural values )ompetition risk Group harmonyK ReputationK family takingK material achievementsK securityK religion possessionK freedom belonging social status N5 Lea4ers0"/ A*r'ss C3l%3res: • # multinational leader needs to possess certain uni.

ransformational leadership is projected as an approach which can cut across all cultural barriers! .O5 Un"8ersal"s$ "n Lea4ers0"/&Transf'r$a%"'nal Lea4ers0"/: • • -niversalism of leadership is a new concept! .he transformational leader has following attributes: /! #rticulates a vision: • • • • • • • +resents in vivid and emotional terms an ideali4ed vision of future of the organisation &hat it can and should become #nd makes the vision clear to all in organisation! • • 0! 2reaks from the status .uo: • • • =as a strong desire to break from tradition #n e9pert in finding ways to do things differently! )hallenges subordinates to find new solutions to old problems! :! +rovides goals and a plan: • • =as a vision that is future oriented! +rovides clear steps for followers to transform the company! D! Gives a meaning or a purpose to goals: • • +laces the goals in emotion $ laden stories! @r a cultural conte9t so that subordinates see the need to follow the leader’s ideals! %ubordinates share a commitment to radical change! =elps subordinates envision a future state of a better organisation! • • .> is effective in any organisation anywhere in the world! .hey are capable of motivating their followers to accept new goals and new ways of doing things! .his means whether or not effective leaders act similarly regardless of their respective culture! . >eaders are visionary agents with a sense of mission! .> represents a higher level of leadership! .

G! .ransformational leaders are not new to the present century! 1a9 &eba a German sociologist recognised the e9istence of this leadership throughout history! =e called this leadership as 5)harisma’ #nd noted that e9isted in all cultures! =e saidK *esus )hrist 1uhammad were among the first transformational leaders! 1ost people also consider 1E Gandhi .ransformational leaders succeed because subordinates respond to them with high levels of performance personal devotion reverence e9citement regarding the leader’s ideas and a willingness to sacrifice for the good of the company! =owever true transformational leaders are rare! • • • • • • P5 <arr"ers %' C3l%3ral A4a/%a%"'n: /! Individual differences ?also refer =ofstede’s theory given earlier8 • =igh conte9t cultures such as )hina Eorea and *apan tend to emphasi4e personal relationships place high value on trust focus on non verbal cues! Impress upon the need to attend to social needs before business matters! >ow'conte9t cultures such as Germany -%# and %candinavian countries! .end to rely on written rules and documents! )onduct business first and value e9pertise and performance >ack of attention to these factors results in costly failures for e9patriates! • • • • • .akes risks: • Is willing to take more risks with the organisation than the average leader! L! Is motivated to lead: • • • %eeks leadership positions! "isplays strong enthusiasm for the leadership role! #cts as a role model I! 2uilds a +ower 2ase: • -ses personal power based on e9pertise respect and admiration of followers! H! "emonstrates high ethical and moral standards: • • • 2ehaves consistently and fairly with a known ethical standard! . 1artin >uther Eing as representatives of transformational leadership! .

he 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! .uired when an e9patriate manager moves to another country re.his new social system affects the responses of all persons involved! 1anagers and employees who come to a host country e9hibit a variety of behaviours true to the citi4ens of their homeland! 1any are predisposed to parochialism! .uires an understanding of the 5culture distance’ between the two countries! .his is the awareness of differences across cultures! .hey see the situations around them from their own perspective! .0! +arochialism: • .hey fail to recognise the key differences between their own and other’s cultures! Even if they do they tend to conclude that the impact of those differences is insignificant! In effect they are assuming that the two cultures are more similar than they actually are! • • • • • • • :! Ethnocentrism: • #nother potential barrier to easy adaptation to another culture occurs when people are predisposed to believe that their homeland conditions are the best! .his predisposition 5ethnocentrism’ is known as the 5self'reference criterion’ or • • • • It interferes with the understanding of human behaviours in other cultures! <urther productivity from local employees is also reduced! In order to integrate the imported and local systems e9patriate employees minimally need to develop 5cultural empathy’ .his is an appreciation of the contribution each culture make to overall success! • • • D! )ultural distance: • +redicting the amount of adaptation that may be re.his is the understanding of the ways in which those differences can affect business relationships! .

hey may not know how to act may fear losing face and self confidence or emotionally upset! <ourth phase: if they survive the first few weeks they will reach the fourth phase that of 5adaptation’! #t this point they accept the new culture regain a sense of self esteem and respond constructively to their new surroundings at work and home! • • • • • • • • • • • • • • • • • .he employees who move to new job locations of the e9perience various degrees of 5cultural shock’ &hich is a feeling of confusion insecurity and an9iety caused by a strong new environment? .• )ultural distance is the amount of difference between any two social systems and may vary from minimal to ma9imal! )ultural distance affects the responses of all people to business related issues! Ethnocentric problems may be magnified by cultural distances! • • G! )ultural %hock: • )ompanies often assign employees to new job assignments in different areas to provide them with invaluable breadth of e9perience! .hey should dedicate themselves to learn the new culture and adapt to it! )ultural shock is even greater when an employee moves from one nation to another! %uch shock is even greater when an employee moves from one nation to another! %uch shocks are in four phases! <irst phase: they are e9cited and stimulated by the challenge of a new job home and culture! %econd phase: positive attitude is soon followed by 5disillusionment’ as they discover various problems they had not anticipated regarding travel shopping or language skills! .he new environment may be as systematic as the culture of the employee! #lthough it is different it can be understood if employees have receptive attitudes! .hird phase: critical stage tend to suffer cultural shock which is 5insecurity and disorientation’ caused by encountering all sorts of different cultures! .hey fail to act properly and lose their self'confidence! # cultural change does not have to be dramatic to cause some degree of shook'like moving from a big town to a small town! <or unprepared employee the new environment can appear to be chaotic and somewhat overwhelming! .

aiwan Eorea )entral European Group $ Germany #ustria %wit4erland! Israel 2ra4il . India do not fall into any group • :! +re'departure .raining: .hese are grouped into L socio cultural clusters: − − − − − − − #nglo #merican $ -%# -E )anada #ustralia BQ Bordic group $ Borway <inland %weden "enmark >atin European $ +ortugal %pain Italy <rance 2elgium >atin #merican $ +eru 1e9ico #rgentina )hile 3ene4uela +acific Rim )luster $ *apan )hina =ong Eong .ime #ctivity =R +ractices )urrency &ork attitudes %trange language! Bew food %eparation from friends and relatives! "ifferent management philosophies etc! B5 O8er*'$"n# <arr"ers %' *3l%3ral A4a/%a%"'n: /! )areful %election: • • • • • Employees who are low in ethnocentrism and &ho are less prone to troublesome characteristics may be chosen .uickly! #n attitude to learn the new culture and the family culture is necessary! • 0! )ompatible #ssignments: • #djustments to new surroundings is easier if employees especially on their first international assignments are sent to nations that are similar to their own! .hey should have a desire to live in another nation! +otential employees should have a capability to learn the new language .hey should have a desire to e9perience another culture! .• • )ultural shock is virtually universal! It occurs in response to: − − − − − − − − − − − − − − "ramatic differences in languages! <orms of country )ustoms =ousing conditions +rivacy .

he local national working for the same organisation can also assist! %upport for intensified need deficiencies like financial difficulties inconveniences insecurities separation from relatives and friends! E9tra pay fringe benefits better positions! • G! +reparation for Reentry: • • Repatriation has to be smoothly blended! @ften tend to suffer cultural shock in their own homeland $ reverse cultural shock! #fter enjoying a new culture coming back to their homeland culture $ needs time to adjust! 2etter autonomy emoluments position power in host country best less in home country! )ompanies need repatriation policies! • • • <orces inhibiting and supporting cultural adaptation: Inhibiting <orces %upporting <orces .he previous job holder may also stay back for sometime and assist! . %upport in the Bew )ountry: • • • • • • Efforts to .uickly settle the employee and family! #ssistance in housing transportation and shopping! # mentor may help a lot during transition! .• • • • • • >earn the local language =elps to reduce personal and organisational costs! <aster cultural adaptation! 2etter communicationsK lesser misunderstanding! )reates better impression! .raining includes $ geography customs culture language and political environments! D! @rientation .

hought patterns +ersonal space +hysical appearance Gestures >egitimacy of touch )lusters • .Individual "ifferences +arochialism Ethnocentrism )ultural distance )ulture shock )ultural #daptation )areful %election )ompatible assignments +re'departure training @rientation .hey are very important contingency factors! .hey include: • • • • • • Relative values for time efficiency 3alues of life Eye contact +osture 1eaning of silence >anguage • • • • • • . support +reparation for reentry R5 Cr'ss C3l%3ral C'$$3n"*a%"'ns: • • • 2esides verbal communications non verbal communications are also important! Bon'verbal communication is called as cross cultural communications! .

he nature of human response to change − @vercoming individual and group resistance to change and − .uiring new relationships while abandoning the familiar accustomed and proven ways of doing things! Individuals tend to perceive change as a discontinuity to be avoided or coped with Individuals may not resist change! &hat they resist is being changed! =ence it is difficult to impose change! )hange that is internal to an individual is far better accepted than change e9ternally imposed! )hange is always a threat when done to people but an opportunity when it is done by people! )hange is intensely personal! <or change to occur in any organisation each individual must think feel or do something different! )hange gives rise to emotions! .he strategy for change are implemented through three change levers which are o %tructure o +rocess o )ulture • • If people within the organisation do not change the organisation can not change! <undamental re.uires managing employee feelings to generate positive e9citement for the intended change and change process! .he strategy to make people to accept change then seems to lie in making them choose it! .uning the organisation to change! a8 =uman Response to )hange: • • • • Individuals fear and seek change both )hange is resisted as much as stagnation is )ontinuity without change leads to stagnation boredom and frustration )hange without continuity or stability leads to ambiguity conflict and the inability to cope with the situation! )hange may be perceived as an opportunity or a threat! )hange to many individuals means learning new skills and new routines and ac.--.hese emotions can vary from being intensely negative to being appreciably positive! @rganisations can not ignore deny or suppress emotions at work! 1anaging change therefore re.uirement for effecting change management is the understanding of: − .M<A – CHANGE & KNOWLEDGE MANAGEMENT MODULE + – CHANGE MANAGEMENT G5 DEAL-NG W-TH -ND-C-DUALS: • .o make an individual choose change we need to understand what factors make him prone to it and what prompts him to resist it! • • • • • • • .

uate resources process and facilities! &hen such supportive structures e9ist individuals may even welcome change rather than resist it! .he above are intrinsic to the change management process! .#ny change is as good as the willingness of the one affected by it! It is apparent that individuals need to own their responsibilities and be clear about the results to which they are accountable! b8 "ealing with Individuals for )hange 1anagement: • • )reate a culture where employees seek change and are not afraid to think and act differently to make change happen! )hange should not be what happens to them in the organisation but what they can make happen in the organisation! 2uild a positive imagery for its employees of the envisaged change to reflect a better future! Individuals can manage change well if it gives them positive emotions rather than negative emotions! Individuals often behave to ma9imi4e win minimi4e loss and want to have a control in their behaviour! .he organisational leadership has to e9amine the following also during the initiation of change! //! Employee attitudes for change: • • • • • • • • • • Individuals tend to fall into any one of the attitudinal continuums namely: #ggressive resistance +assive resistance Beutral )ampers +assive acceptance #ctive involvement Cuitters /0! Reasons for change resistance: i8 • • • • • • )limbers +ersonal >oss: *ob security %alary and income +ride and satisfaction *ob nature <riendship and associations <reedom Begative #ttitudes: • ii8 .hey avoid risk have fear of failure and feeling of incompetence! %upport the change process with ade.owards their organisations and supervisors .

uestions one’s capabilities and performance! %een as a challenge to one’s authority! >oss of %tatus and authority: v8 • • )hange may lead to the relegation of one’s job to lower levels in the hierarchy! 1ay be loss of one’s authority and power! Inappropriate .he way that change is introduced may also not be to everyone’s liking! )ognitive Rigidity: vii8 • • %ome people do not see the need for change or may not be convinced about the arguments in favour of change! @thers still find the old practices that have evolved overtime the best! )hallenging #uthority: viii8 • • %ome people resist change to challenge authority! @r oppose disliked bosses who are in favour of change! /:! Reasons why people accept change: • • +eople welcome change when it benefits them! .• >ack of trust resulted from earlier bitter e9periences in the organisation iii8 • • • >ack of Involvement: %ome people resist change because they have not been involved in the change process! .he benefits could be: security monetary and other benefits status and authority personal satisfaction job nature and opportunities to contribute to and determine the change process! .iming: vi8 • • )hange is generally introduced at a time when business is not good and everyone is already burdened with e9tra work to tide over the bad times! .heir ideas have not been sought for %ome others are very sensitive about 5change’ since they have wrong or incomplete information! +ersonal )riticism: • • • iv8 )hange may be considered as a personal affront! %ome think it .

he idea that a change is good for everybody should be driven home! &e gave to deal with an individual’s attitude to overcome his resistance to change! #ttitude consists of cognitive conative and affective dimensions! )ognitive refers $ one’s perceptions beliefs and values )onative refers $ one’s action tendencies! #ffective refers $ one’s emotional component of likes and dislikes! .hough appropriate structures systems and processes are necessary they alone are not sufficient to bring in the change! It is the individuals who work within the structures and systems and on the tasks and processes who make the change to happen and achieve highest levels of performance! @rganisations have to deal with individual attitudes and behaviours to tap individual wisdom $ their e9perience intelligence and judgement $ in managing the change! )reative and intellectual energies of the individuals should be diverted to the change initiatives of the organisation! • • • .o overcome resistance components! we have to deal with the above • • • • • /L! Individual $ focused approaches to managing change: • .ues are available! ./D! Integration: • • # number of . .uantitative .ualitative techni.uestionnaires interviews and observation methods are useful! • /G! "ealing with individual resistance to change: • • Individuals need to be motivated to accept change! # feeling of dissatisfaction to be generated with the e9isting state of organisation! .his classifies individuals into different categories in the attitudinal continuum! %urveys like .

RI)= 3#BC-I%=ER Initiator of change actively involved! If opposing change he can resist it actively! .-BI%.@R @++@R. @%.ype %C-E#>ER 2R#3#"@ Response )hange =ighly emotional low conflict $ tolerance #ggressive level low self confidence stubborn resistance to argumentative critical rigid dogmatic change non'companionable skeptical impatient high fear of uncertainty and failure! %low unambitious conservative cold +assive resistance aloof shy withdrawn indecisive silent to change defensive high fear of failure low conflict $ tolerance level unable to face problems Receptive consistent patient stable =igh in change rigid predictable co'operative moralistic acceptance when sensitive to failure and punishment self change is critical overly dependent trustful formali4ed! relation oriented respectful and fearful of authority! Reckless brash stubborn overbearing #ggressive risky independent self'centered resistance impulsive unbending persistent retaliative short'term $ perspective 2ehavioural "escription "iplomatic self'centrical cautious less moralistic secretive superficial inclined to oversell aggressive scheming plays to his advantage! Receptive social convincible cordial warm dependable patient amiable stable predictable systematic co' operative trustful integrative of other people’s ideas self sacrificing respects authority! 2rave forceful dynamic decisive self' reliant demanding persuasive optimistic determined enthusiastic individualistic task'oriented high sense of achievement adventurous poised! Batural but can be positive or negative depending upon his advantage! +assive acceptance active involvement! to #))@11@"#./I! +ersonality types and their general response to change: . )@B<@R1I%.

EGI%.o create readiness in an individual for change his6her cognitions have to be positively influenced! )ognitive changes tend to occur in individuals when information is presented in a logical and coherent! • • C'#n"%"8e C0an#es: C0an#e Me*0an"s$s: 0! E9plaining the nature and direction of change: • • .he change process has to be clear well knit and integrated! Employees have to be aware of the focus scope and e9pected outcomes of change the company strategy and its competitive advantage! )ore competency re.he )ognitive "imension: • @ne’s own perceptions opinions and beliefs often act as the precursor to one’s response to change! .ualitarian inter' persistent #ctive self involvement and capable of involving others in the change process! c8 1anaging change: .his has to be done individually and in groups! %uch a talk gets a feedback from employees regarding their hopes fears and e9pectations! • • %.op management should be committed to the intended change! Employees cogni4e the e9plicit and implicit behaviours e9hibited by senior managers! 2ehaviours of senior managers influence employees’ perceptions and beliefs! It is not only what managers say but what and how they do send signals to others in terms of their fourth and commitment to the change process! • • • • • • 0! )ommunication: • • Effective communication is fundamental to change management! It is important to communicate the intended change and the reasons for it in advance and as completely as possible! .R#.uired and plan of action for managing change has to be clearly stated! Responsibility of each person in relation to the company’s strategy has to be understood! .Inventive original positive self'reliant receptive persuasive convincing capable of empathy open minded realistic problem solver integrative of other people’s ideas e. .

he messages must be credible and take a variety of forms! It employees have to be attended to changeK communication should lead to optimism hope and a positive outcome! +ersuasive 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! @ral persuasive communication is carried out through speeches! &ritten communications are through specific written documents! Bon routine communications are through media! • • • • • • o )reating a )ommon 3alue @rientation: • • 3alues are basic to human behaviour! .hese values are based on group and individual behaviours and also the work processes! .raining: .hese values enable and stable and trustworthy relationships! 3alues tie together people systems and processes! 3alue may be generated by discussion and active employee involvement at all levels in the organisation! @nce a set of values are collectively agreed upon they tend to form a benchmark for individuals to adopt modify and realign their personal values! 3alues agreed upon should be documented! &ork can be soulful enchanting e9perience when employees strongly believe in what they do and are convinced about what the company is or should be doing! If not all our vision and mission statements are only decorative pieces in the corporate lobby! • • • • • • • • • o Employee .hese values have to be shared and imbibed by all through out the organisation! .he values talked about in change management are: o &hat are the values to be espoused if the change needs to be implemented? o =ow are they similar to one’s personal value? o =ow to bring about changes in personal values if need be? • @rganisations have to identify the values basic to the change initiative and implementation! .• )ommunications about change have to be clear precise reliable and perhaps repeated and number of times to drive home its importance and the depth of the management’s commitment! .

o be successful a climate of interpersonal trust and open communication should prevail within the organisation! 2uilding effective teams takes years needing constant monitoring and reviewing! 53icarious learning’ $ where employees observe organisations that have benefitted from implementing new or innovative techni.raining should bring forth:     Inherent talents! "esire to ac.• )ompetitive organisations re.uire information knowledge and skills! -rge to accomplish +reference with passion • • • • • • • o +articipative 1anagement: • <acilitates the release of one’s inherent enthusiasm and creativity for the benefit of the entire organisation! It prompts the people in the direction of group support and leads to acceptance of change! It provides opportunities for employees to learn by their own activities and to e9ercise control over the outcome! +articipation needs to be managed carefully or else it creates more problems! .raining should be run like business delivering value to the work process organisation and employee competency! .uired knowledge workers who are capable of performing jobs related to corporate goals and market needs and demands! Enowledge provides a competitive advantage! Bew ways of training employees aimed at thinking skills and multi' skill development have to be planned! Employees should be considered as a resource not a cost! Employee training sets the supportive climate for change management when it is competency driven for the current and future demands! )urrent skills have to be assessed and future skills needed for the business determined and the training skills decided to bridge the gap! .he #ffective "imension: • • Individuals fear and seek change both )hange affects human emotion! .ues and practices! 3icarious learning is facilitated by study6observation trips to innovative organisations and further involving employees in benchmarking their best practices! • • • • • • • d8 1anaging change: .

climate conducive for empowerment? o "o the employees perceive meaningfulness in what they do? o Is the information shared to empower the people? o %ustaining employee empowerment! • • L! 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! # personal sense of ownership motivates employees to take the initiative generate productive ideas and feel responsible for improving organisational performance! %tock ownership may be performance based! )ompany shares may be given at concessional rates! .• If an organisation has to implement change it has to anticipate individual feelings about the intended change and deal with their emotions in positive and constructive ways! "ealing with human emotions could be in terms of: − )reating feeling of psychological safety about change! − )reating positive feelings about the desired state and the change process! − <ocusing on the benefits of change at the individual level! − "emonstrating some of the benefits of change early in the change process! − #ddressing avoidance learning $ focusing on intended change as the only alternative to avoid6overcome fear or insecurity! Affe*%"8e C0an#es – C0an#e Me*0an"s$ G! Employee empowerment: • • .he approach promotes a binding relationship! • • • • .o be successfully implemented employee empowerment depends upon a number of factors! o )ommitment on the part of top management in real earnest! o =ow willing are superiors to share their authority down the line through out the organisation? o &illingness on the part of employees to make decisions and be accountable for their actions! o #re employees suitably trained to be empowered? o Is the organisational culture .o empower is to give autonomy to an employee enabling him to make decisions on his job and accountable for his actions! It is the integrating of ownership authority and accountability at work! .

he major demotivators are perceived unfairness in dispensing rewards! .• <or success trust between the employee and management is necessary! Employees are also given to understand how much they contribute toK how much they cost to the company! <inancial rewards and financial health are tied up! • • I! )ompensation %ystem: • 1anaging change through people behaviour is possible when the desired behaviour is appropriately rewarded! @rganisations should create a meaningful reward system! Rewards are financial and non'financial! Rewards are effective when a certain 5value’ is built into the rewards $ a value which is a part of the performance rather than a pretension! Rewards should have the following characters: o )larity and specification ?e9pected performance and work behaviours8 o Immediacy ?delayed rewards lose values8 o 1agnitude ?commensurate8 o Individuality ?personali4ationK not all rewards are same8 • • • • • .ypes of rewards − +ower rewards ?higher responsibilities8 − +ay for performance − +ay for knowledge and skill • H! "ealing with negative emotions: • %ome employees may have negative emotions towards the intended change! .hese negative emotions must be understood to successfully handle! %ome of the ways to do this are: o Empathy o 1odeling o %hock therapy o 1entoring o 1anipulation o Employee counseling • • .

e8 1anaging change: .ohat are the factors for change under conation? /! )larifying )ontractual @bligations: • • )hange benefits the organisationK change benefits the employeeK there is a mutuality of interest! 1utuality is the basis for the release of human energy for effective change management! <or every employee there is a psychological contract with the organisation $ may be e9plicit or implicit! .raining: • • .raining is provision of information and skills! Employees today should be enabled to perform a variety of tasks rather than a few limited jobs! %uch skills can come by cross training! )ross training provides a fle9ible force and fle9ible factory! )ross training facilitates job rotation wherein an employee can switch periodically from one job to another! • • • .uire new skills and behaviours! .he )onative "imension: • Resistance to change occurs due to unwillingness to deviate from habitual behaviours or from reluctance to ac.he psychological contract has two dimensions: the personal goals of a human being and the organisational goals! *ob activities and responsibilities have to redefine due to the change management and changes in the job design and performance! .herefore 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! Bow a new role relationship too starts! • • • • • • 0! Emphasis on action learning in implementing change: • • • >earning occurs with actionsK no actions without learning! .asks or activities are the basis for learning #ction learning leads to continuous improvement and performance of self leading to overall improvement of the organisation! #ction learning is a social process! &here the employee accepts his job duties and responsibilities solves task related problems constantans improves actions accepts supportive criticism for improvements • • :! )ross .

ues in stretching limits manage change are: o %ensitivity training o +articipative management o 2ehavioural modification o *ob rotation o )ross training o Role play etc! • • • • G! )reate the right climate for optimi4ing employee performance: • .o create the right climate for employees to take an active interest in the change process and achieve the intended results there should be the necessary support structure a learning environment within the organisation and the free sharing of information! %upportive climate $ @rganisational design: o @rganisational processes systems and activities together form the organisation structure which supports the organisation! o .uiring new skills! D! Employee elasticity: %tretching the +otential: • • Good =R stretch employees to the ma9imum of their potential ability to work! %tretching employee potential facilitates change management! &ithin the limits of 5mental elasticity’ human capabilities at work could be stretched to the optimum to meet the global business competition! #ny kind of mental stretching should be done gradually by e9posing one to changes of graded difficulties thus slowly stepping up one’s self confidence! %ome techni.• &ith this the employee brings a fresh perspective to each job in addition to what has learnt already! It also solves the shortage of manpower! )ross training can be across different functional areas like finance and marketing! #n employee’s career path need not be limited to vertical mobility! It could also be diagonal! )ross 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! %uccess of cross functional training depends upon employee willingness to learn new skills on the job! • • • • • +ositive attitudes to such training is built if employees are rewarded for ac.he people in the organisation structure the way they adapt modify and develop are important! • • %upporting climate $ learning environment: .

uickly into an e9ploration of group processes and leadership! #n unstructured perhaps ambiguous situation is created and the group is encouraged to e9periment with new individual behaviours and group interactions! .he trainer plays a relatively passive role in the training process! Initially the group begins without an agenda a structure and any division of labour or rules of procedures! • • • • • .he training may vary in duration from a few weeks to few hours! .eam building o %elf'managed teams /8 %ensitivity .uire advanced knowledge and skill! − .he commonest way of bringing about change in employee attitudes and performance is through information sharing! o Employees should know what the company plans are how the company is doing whey the company needs change and what they should know additionally to perform better in the changed scenario! o %haring information raises the level of employee trust in the organisation! o It empowers people and performance improves! H5 CHANGE MANAGEMENT – DEAL-NG W-TH GROUPS: • <or successful organisation change the change management should consider individuals as well as the group in which they work! .raining: • • • • #lso called as .'group training! .he present day business needs speed fle9ibility and innovation in all activities! • %upportive climate $ information sharing: o .hey enter the group as peers unrepresentative of the group memberships and move .he major forms of group'based changes are: o %ensitivity training! o .'group is an ad hoc assembly of individuals who meet together initially as strangers away from their usual roles and responsibilities! .− @rganisations should create a learning environment where people can ac.he primary target of managing change would be the group itself and the relationships among its members! .

he trainer communicates these observations to groups! 1embers gradually begin to attend to such matters themselves! .hus the interventions through sensitivity training aims at the following: − − − − − • -nderstanding of one’s own behaviour and how one’s behaviour affects others! -nderstanding why people behave the way they do! Encouraging one to try out new ways of interacting with people and receiving feedback! -nderstanding group processes! "eveloping increased tolerances for other people’s behaviour! • %ensitivity training is good for change planning and implementation! 08 .uite uncomfortable! .eams have the following characteristics: − − − − • # reason or charter for working together! Interdependency $ where the skills abilities of individuals are mutually supportive! )ommitment to and belief in working together! #ccountability $ for their performance! • Individuals join teams for a variety of reasons: − @ut of the herd instinct! .hey attain increased sensitivity to their own behaviours! .he people in each group are strangers to each other brought together only by the common goal of learning more about themselves the impact they have on others! #bsence of an agenda initially creates a vacuum and often .hey slowly correct their faults! .eam 2uilding: • # team is a group of individuals who tend to work interdependently to satisfy organisational as well as their own individual objectives! .hey become sensitive to the nature of group development! 1embers emerge with a restructuring of their values about people and their operations in group settings! .hey become sensitive to the action of others! .• .he trainer initially observes: − − − − • • +roblems of communication #ttempted sei4ures of power 1isunderstandings @ther phenomena of interpersonal life! • • • • • • • .

ualitatively and .he value base of team lies in: − − − − 2elief in a democratic work environment! +romotion of scientific in.uantitatively! • .eam values are: o Cuality o )ustomer service o Innovativeness o +eople o Informality • .he success of team effort depends upon: − .uiry in addressing issues and problems! Interpersonal trust! )oncern for the development of individual potentialities! • .− − − − − − • .he leadership provided to the members who constitute the team! .o overcome one’s fears and insecurities! <rom a sense of duty! In the hope of personal gains! "ue to a rational belief to joint effort! <rom group compulsion! <rom the inability to say no .eams have the advantage: − @f improving up and setting goals and priorities! − "eciding on means and methods! − Improving performance .he operational basis of a team lies in − − %ynergy Interdependence • # team’s behaviour is characterised by the following elements: − − − − # Goal $ is commonly agreed upon by the members Interdependence $ where people have agreed to work together and are supportive of each others! )ommitment $ to achieve the goal through group effortK and #ccountability $ where one is accountable to superiors or the top management for achieving the goal! 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! • .

− • @vercoming barriers to effective team functioning! #n effective team member is one who: − -nderstands and is committed to group goals and values his6her team membership − Is friendly concerned and interested in others! − >isted to others shows empathy is understanding and values the ideas and contribution of others! − Recogni4es and respects individual differences! − Includes others in the decision making process! − #cknowledges interpersonal conflicts and deals with them positively! :8 .esting inclusion #lso referred as )ounter dependence! "ata flow )onflict dominance . hesitant participation . rebellion Inflighting >istening and e9perimenting f! g! h! i! j! k! a! b! c! d! e! f! )haracteristics 1embers share personal information! %tart to get to know and accept one another! 2egin turning their attention to group’s tasks goals #n aura of country Interactions are cautions =igh degree of motivation! 1embers compete for status! *ockey for position of relative control #rgue about appropriate directions for the group! E9ternal pressures interfere with the group! .he stages are the result of a variety of .hey may be observed and predicted in many settings a cross the team’s time together! • • • • .hey do represent a broad pattern! .eam "evelopment %tages 6 >ife )ycle of a .hese stages of team development are not rigidly followed! .ensions rise between the individuals! Individuals try to assert • • • • • • &ho are these people? &hat is their uni.uestions characteristics as shown below: Eey .ue competence? &hat information should I share with them? &ill they accept me? &hat is our mission? =ow to we develop team spirit? &hat resources are available to us? &hat problems do we foresee with the team? 0! %torming: • • • • • .uestions faced • • issues and "evelopmental stages /! <orming: a! b! c! d! e! #lso referred as: "ependence #cceptance @rientation .eam: • &hen a member of individuals begin to work at interdependent jobs they then pass through several stages as they learn to work together as a team! .

entative balance among competing forces! c! Groups norms guide individuals! d! 1ore co'operative feelings! a! Group matures and learns! b! =andles comple9 challenges! c! <unctional roles are performed! d! <unctional roles are also smoothly e9changed as needed! e! .asks are efficiently accomplished! a! Groups project teams disband sooner or later! b! 2reak up is called adjournment! c! In fle9ible organisations adjournments are more fre.ransactional leadership skills include: o o o o Goal setting #ssertiveness )onflict management %upervision o o o o )ommunication +roblem solving "ecision making Rewarding competency • .erminated should we maintain? &hat have we learned from our e9perience? &here do we go from here? themselves! a! Group begins moving together in co'operative fashion b! .• • • • • • • • • • • • • )ontrol &hat do we :! Borming believe in? #lso referred as: &hat behaviours • Resolution do we e9pect of • Goals and each other? norms &hat should we • Integration be doing? • Intimacy =ow will we closeness . inspiring for higher motivation and achievement $ how the leader regarded and respected $ credibility! .ransformational leadership skills relate to: o o o o <uturistic thinking 3alue clarification Entrepreneurism Influencing o Envisioning o )reativity o 1entoring • .uent! d! Group may review its performance! e! <eedback for future teams! D8 Ingredients of Effective >eadership: • • # process of dealing with members’ aspirations and e9pectations! . control each cohesiveness other’s actions? • Getting organised! • @penness affection &hat actions will D! +erforming contribute to our #lso referred as: success? • +erformance %hould we take • +roductivity risks? • 1ature =ave we been closeness empowered to • #chievement succeed? =ow can we change and grow? =ow can we G! #djourning celebrate our #lso referred as: success? • #djourned &hat connections • .

eam members must be reasonably . second stages8 >ater as the group matures more transformational skills are re.eam +roblems: .hese steps contribute to further co'operation trust and compatibility S="lls & R'le Clar"%!: − .hey should have a desire to co'operate! − Each member should know the roles of all the others in the group with whom they are interacting! S3/er)'r4"na%e G'al: − .uired! • G8 Ingredients of Effective . co'ordination Innovativeness %cope for learning o o o o o Information sharing 1easurable goals %ufficient resources <le9ibility %timulation of openness • <our 1ajor factors are: S3//'r%"8e En8"r'n$en%: − − − − − 1anagement to build a supportive environment! Encouraging members to think like a team! +roviding ade.o Enables a leader to get a job done successfully! • # leader needs to e9hibit greater transactional skills in the initial stages of group formation ?first .uate time for meetings! "emonstrating faith in members’ capacity to achieve .eams: • &hat contributes to team success o o o o o o )areful composition )lear direction #ccountability Integration .eam members should be oriented towards their overall task! − #ll members carry their weight focus attention unify efforts and stimulate more cohesive teams! Tea$ Rewar4s: − − − − − %timulates teamwork Recognition or financial 1ost powerful if they are valued by team members! %hould be perceived as 5possible to earn’! #dministered in proportion to the team performance! L8 +otential .ualified to perform − .

hey are asked to control specific behavioural or operational activities and produce significant results! . or %1&.s are characterised by: − − − − − − − Goal setting through team effort! # multi'skilled workforce %hared leadership through team meetings! +articipative discussions! Interpersonal trust! Individual and mutual accountability # result focused performance • • • .uently due to various reasons teams must learn to manage their internal turnover! #ccept the turnover and plan for it! "evelop a plan for team turnover right from the start! Integrating new members into the team is also important! • • • • • S'*"al L'af"n#: • &hen employees think that their contributions to a group cannot be measured they may lessen their output and engage in social loafing! %ocial loafing is based on a perception of unfair division of labour! It is a belief that workers are la4y! It is a feeling of being able to hide in a crowd and therefore not be able to be singled out for blame! %ocial 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 $ .8: • • • • #n empowerment tool #lso known as self reliant or self'directed teams! .C0an#"n# *'$/'s"%"'n: • 2eing comple9 and dynamic teamwork is sensitive to all aspects of organisational environment! .he combination of empowerment and training to plan direct monitor and control their own activities distinguishes these teams from many others! .he %ucker Effect! • • • • I8 %elf 1anaged work .hey are natural work groups that are given substantial autonomy! .oo many changes and personnel transfers interfere with group relationships and prevent the growth of team work! %ince team’s composition is likely to change fre.eams ?%1.hey have wide ranging autonomy and freedom complied with the capability to act like manager! %1.

announce s decision 1anager presents decision subject to change seeks ideasK sells decision 2enevo' lent autocracy 1anager seeks ideas before deciding 1anager asks group for recomme nded actions before deciding +articipa' tive com' muters such as .otal of *ob <reedom #rea of employee participation in decision making 1edium =igh +opular terms #uto' cratic managem ent )onsul' tative manage' mentK sugges' tion systems )on' sensus decision makingK self managing teamsK .s have the following disadvantages: − − − − E9tended time to implement them =igh training investment Inefficiencies due to job rotation! Inability of some employees to adapt to a team structure! • #reas of *ob <reedom and +articipation )ontinuum 2y .uality circles 1anager decides with groupK one person one vote "emo' cratic manage' ment 1anager asks group to decide &ithdraws .s have several advantages: − Improved fle9ibility of staff! − 1ore efficient operations through the reduced number of job classifications! − >ower absenteeism and turnover rates! − =igher level of organisational commitment and job satisfaction! − +romotes collaborative work relationships! − <aster synergetic performance − Enhances individual and team capacity − >ot of scope for innovations − +ushes responsibility down to the lowest levels! • %1. %chmidt: 7=ow to choose >eadership +attern( #rea of authority applied by 1anager *oins )onsults %ells .annenbaum .ells >ow #mount of participation "escription of typical action 1anager makes .− #ctive problem solving! • %1.

aurus’ team at <ord =onda ine9pensive car in /FIH! )ross'functional teams are of great assistance in designing and prototyping new models and products! .empower' ment H8 )ross <unctional . )onsists of individuals from different functional areas working on the design or development of a product! 5. Effects: • .eams: • • # type of %1.he success of cross'functional teams depends upon: − − − − %etting achievable goals Gaining commitment from team members %etting ground rules for team activities! Effective management of relationships among people of diverse backgrounds and work cultures! − Ensuring early success to generate enthusiasm and greater belief in team effort! • • • • • 1ost auto companies today employ 5platform teams’ that consist of a core group of designers engineers and even factory workers on whom rests the total responsibility for the development and manufacture of a single product! -5 RES-STANCE TO CHANGE & OCERCOM-NG -T: • Resistance to change consist of any employee behaviours designed to − "elay − "iscredit − +revent the implementation of work change! • Employee resist change because it threatens their: − − − − − Beed for security %ocial interaction %tatus )ompetence %elf esteem a8 Bature .he perceived threat stemming from a change may be .

he method by which it is introduced +eople may resent having been ill informed! 1ay reject an insensitive and authoritarian approach that did not involve them in the change process 1ay be a perception of poor timings! Ine.heir resistance will be even more intense if all the : reasons e9ist! − +eople disagree with the nature of the change! − "islike the method used! − "o not see a personal gain for themselves! .hreats to job security! .o Re.uity of the people’s e9perience %ome perceive as losers due to change! %ome perceive as gainers due to change! %econd • • • • .hey may believe that the decision is technically incorrect 1ay be reluctant to change the present familiar comforts to an uncertainty! +eople resist because of the fear of unknown! .hird • • • • .his reactions may be: o )omplaints o +assive resistance o %abotage o <oot dragging o #bsenteeism o &ork slowdowns • • • • &hite and blue collared people resist change! 5)hange’ does not respect blue or white collar! +articularly employees too have a desire for new e9perience and the accompanying rewards that come with the change! # lesson to management is: change is likely to be a success or a problem depending upon how skillfully it is managed to minimi4e resistance! )hanges sometimes set up a 5chain reaction effect’ also! • • b8 Reasons for Resistance: ?: broad reasons8 <irst • • • • • • Bot comfortable with the nature of the change itself It may violate their moral belief system .uired o -nintended o >arge • o Imagined o "irect o %mall o Intended o Indirect Regardless of the nature of change some employees will try to protect themselves from its effects! .

hen only employees will accept change co'operatively! .echnical logical human $ all : have to be faced and solved! In a typical operating situation full support may not be e9pected all time $ may be weak moderate or opposition $ form all people! &hat is important is: create a genuine climate when people trust managementK have a positive feeling towards change and feel secure enough to tolerate other changes! If management cannot win support it may need to use authority! &e must recognise that authority can only be used sparingly! If authority is overused it eventually becomes worthless! • • • • e8 +ossible benefits of resistance: • Resistance is not all bad! .uired to adjust! E9tra effort to relearn +ossibility of less desirable conditions such as skill downgrading! Economic costs of change! Cuestioned technical feasibilities of changes! I! +sychological emotional resistances: • • • • • <ear of the unknown! >ow tolerance of change! "islike of management or other change agent! >ack of trust in others! Beed for securityK desire for status .ime re.c8 .ypes of Resistance: ?: types8 L! >ogical rational objections: • • • • • .uo! H! %ociological group resistances: • • • • • +olitical coalitions @pposing group values! +arochial narrow outlook 3ested interests! "esire to retain e9isting friendships! d8 Implications of Resistance: • • • • #ll : types of resistance must be anticipated and treated effectively! .

hat may encourage management to communicate the change better! .• • It can bring some benefits! Resistance may encourage management to ree9amine its change proposals! %o that it is made certain that the proposals are appropriate! Resistance creates checks implementation of change! and balances and ensures proper • • • • Resistance also identifies specific problem areas! It enables management to take corrective actions much before serious problems arise! . %chlesigner 7)hoosing strategies for change( =arvard 2usiness Review! • • • • )hange is necessary in a competitive environment! =urdles to change need to be managed! .his approach in the long run should lead to better acceptance of change! Resistance also gives management the information about the intensity of employee emotions on an issue! It provides an emotional release of pent'up feelings! %uch a release encourage employees to think and talk more about a change so that they understand it better! • • • • • f8 1anaging Resistance: Eotter .here are L approaches to manage the resistances as given below: Each has its own advantages and disadvantages! )ommonly used in situations Education R )ommunication @nce persuaded people &here there is a lack of will often help with the information or inaccurate implementation of the information and analysis change +articipation R Involve ment +eople who participate &here 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 )an be very time consuming if lots of people are involved )an be very time consuming if participators design an inappropriate change! #dvantages "isadvantages )ommonly used in situations <acilitation R %upport #dvantages "isadvantages &here people are resisting Bo other approach )an be time because of fear and an9iety works as well with consuming adjustment problems e9pensive and still .

uick and ine9pensive problems if people solution to resistance feel manipulated problems )oercion &here speed is essential and It is speedy and can )an be risky if it the change initiators possess overcome any kind of leaves people angry considerable power resistance at the initiators! ?5 <U-LD-NG E::ECT-CE CHANGE -N-T-AT-CES: L! @rganisational "evelopment: • • • Is a planned systematic process of organisational change? @" draws from psychology sociology and anthropology theory @" also relies on information from personality learning theory motivation theory group dynamics power leadership and organisational design! .fail! Begotiation S #greement &here someone or some %ometimes 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 1anipulation S )o'operation )an be too e9pensive in many cases if it alerts others to negotiate! &here other tactics will not It can be a relatively )an lead to future work or are too e9pensive .he basic characteristics of @" are as follows: a8 +lanned )hange: also called as change intervention! b8 )omprehensive organisation! )hange: involving total system and the entire • c8 Emphasis upon &ork Groups: some @" efforts are aimed at individual and organisational change most @" are oriented towards group having a sociological flavour! d8 >ong'range )hange: @" is not a stop gap arrangement! It takes months and years! e8 +articipation of a )hange #gent: It is generally advised to avail the services of an outside e9pert! f8 Emphasis on Intervention: active intervention of the change agent in the ongoing activities in the organisation! g8 )ollaborative 1anagement: unlike the traditional management @" stresses an collaboration among all levels having the overall system perspective in view! h8 @rganisational )ulture: includes $ accepted patterns of behaviour norms organisational objectives value systems etc! culture of each organisation must be understood and the relations consist with that culture must be developed! .

uisites for organisational development: • • • @" must fulfill certain conditions if it were to be effective! It is not a guarantee for success of @" 2ut favourable environment conducive for organisational change will be created! .rust and support among organisational members %ynergetic solutions to problems! • • • • • • F! # typical change strategies and associated =R Initiatives: .he organisation’s managerial strategy ?communication patternK decision making8 .ypes of change strategy =R #ctivities #dvantages "isadvantages .o reduce the negative effects in an @" program the following criteria are to be satisfied! +erceptions of organisational problems by key people and perceptions of the relevance of the behavioural sciences in solving these problems! .he operationalising of the action research model! <urther e9pansion of efforts after the early successes! #n open educational philosophy about the theory and technology @"! #cknowledgement of the congruency between @" and many previous effective management practices! Involvement of personal and IR6=R management people and congruency with personnel policy and practice! "evelopment of internal @" resources and facilitative skills! Effective management of the @" process and stabili4ation of changes! 1onitoring the process and the measuring of results! • • • • • • • • • • • • • H! %ituations appropriate for @" programs: • .i8 #ction Research: # process of identifying the organisation’s specific problems gathering and analy4ing the organisational data and taking actions to resolve problems! I! +re're.he introduction into the system of a behavioural science consultant! Initial top'level involvement! +articipation of work teams including the formal leader! .he culture of the organisation ?norms values power structure8 %tructure and the role in organisation! Intergroup collaboration! 1otivational level of employees! .

ime consuming! %low E9pensive 1ay meet resistance through negative attitudes to change! • • Impact %peed • • )hanges structures systems to and • • • • • )hanges to organisational structures including employee accountabilities! )hanges to reward systems! )hanges to performance management! )hanges to career management! )hanges to employee relations structures ?consultation and bargaining8 • • • >onger lasting change Re' generation of employee knowledge and skill Re' generation of tired systems • • "ealing with negative conse.eam briefing and other forms of employee communications +erformance management Employee counseling %everance Redundancy programs Recruitment and selection • • • Greater sense of employee ownership <resh ideas introduced >onger' lasting change • • • • .uences for employees +ossibly e9pensive %lower to have impact 1ay be difficult to establish causal link changes to structures and systems and organisa' tional change! /J! Implementing change successfully: a! %ome changes originate within the organisation! b! %ome changes are through government laws! c! %ome more are from competitors customers labour unions communities etc! d! %table environments have less change! e! 2ut dynamic environments are the norm! a8 .ransformational leadership .Education . Employee Involvement • • • • • • • )hanges personnel in • • • 1anagement development Employee training likes change workshops Cuality group programmes *oint consultation . change: • 1anagement has a key role in initiating and implementing change successfully! .

o persuade the employees that the vision is urgent! − #nd to motivate their employees to do it! • )harisma is a leadership trait can help influence employees to take early and sustained action! • )harismatic leaders are: .ransformational leaders create and communicate a vision for the organisation! # vision is a crystalli4ed long'range image or idea of what can and should be accomplished! It stretches people beyond their current capabilities and thinking! It e9cites them to new levels of commitment and enthusiasm! # vision may also integrate the shared beliefs and value that serve as a basis for changing an organisation’s culture! • • • • d8 )ommunicating )harisma: • #fter the vision leaders still have two tasks: − .hey take bold strategic changes to position the organisation for its future! .hey articulate vision and promote in vigorously! .• # master strategy for change has to be made not overlooking simple but important details! .hey stimulate employees to: − − − − − Rise above their narrow focus 1ake them to see a broader picture action! )harismatically model their behaviour! 2e learning individuals 1ake a learning organisation • • c8 )reating 3ision: • .o create an organisation that welcomes change! • • • b8 .he overall plan should address behavioural issues such as difficulty in letting go of old methods! &orkers’ fear of uncertainty! .ransformation >eaders: • • #re instrumental in the change process! .

he goal should be specific and measurable and the team and the user should move in the same direction! • • b8 "etermine the objectives: • @bjectives help to break the goal down into specific responsibilities for each team member! Establish ownership for different functionsK keep change goals constantly in mind to avoid functional myopia • c8 Establish check points #ctivities Relationships and .ransformational leaders not only make a very good change in organisation but an organisation that will continue to change! .− − − − − − "ynamic risk takers =ave depth of e9pertise &ell deserved self confidence! E9press high performance e9pectations -se provocative symbols and language to inspire others! &arm mentors who treat employees individually and guide them for action! • Employees trust and respect charismatic leaders and emotionally committed to such leaders! e8 %timulating >earning: • .his process is called as 5double'loop learning’ .heir critical task is to develop people’s capacity to learn from the e9perience of change! .his means that the changes handled not only reflect the current information gathered but also prepare the participants to manage future changes even more effectively! In 5single loop learning’ employees simply solve current problems and blindly adapt to changes which have been imposed on them! • • • • //! %ome common sense principles for )hange 1anagers: a8 %et a clear goal: • • %tart at the end and work backwards &hile setting a goal dialogue among yourself the team and the end users of the project! &rite down the change goal in a piece of paper and ask 5Is that what you want?’ .ime Estimates: .

eam: • 3olunteering increases commitmentK create opportunity for people to set goals and objectives! )reate a sense of 5ownership’ let members go public with their views and choices! Encourage transparency and visibility of the project team’s efforts! • • f8 Eeep everyone connected with the )hange +rogram Informed of the +rogram: • )hange involves people from different departments who use different languages have different objectives and have different types of training yet must work together on a uni.ue task! #ppropriate the position of the other personK keep people informed on a regular and fre.eam: • • • @ne can not do it alone! # strong team of supporters and collaborators are re.here are hosts of possible approaches to conflict management like giving in smoothing over compromising persuading finding common good etc! -se the appropriate method! >ogical arguments have their limitsK reaching agreement in conflict situations is not only a logical but also an emotional e9perience! • • .uent basis! 2e a good listener! • • g8 2uild #greements that vitali4e team members: • )onflicts are inevitableK they serve to ensure interest and create energy! -se them to create a synergy and unleash creativity! .uired! It is important to keep learning as individuals and as teams from e9periences! .he team should also discuss 5what if’ and 5what can go wrong’ situations! d8 "irect people individually and as a +roject .reat team members as individuals with their own characteristics! E9pect differencesK develop sensitivity to why people do what they do! • • e8 Reinforce the commitment and e9citement of the )hange .• • • )heck points help members monitor their own progress! %et long'term and short'term check points for early detection of problems! Establish a detailed check list of activities! .

eam: • • Influence without e9ercising authority is the key! .his is achieved through alliances networks and e9changes! important to build personal power! &hat people want most from a change manager is credibility: )redibility T )ompetence R =onesty R "irection R Inspiration R +ower It is • i8 Encourage Risk .aking and )reativity: • • • • <ailure is the stepping stone for success! I failed my way to success $ .h8 Empower yourself and others in the .homas #lva Edison! +lan time for thinking e9perimenting innovation and creativity! >ike turtles we make significant progress only when we stick our necks out! .

M<A – CHANGE MANAGEMENT MODULE .--. – ORGAN-SAT-ONAL CHANGE PROCESS () Or#an"sa%"'nal C0an#e Pr'*ess: a8 .he entire change process can be summari4ed in si9 stages: • 2ecoming aware of the pressure for change Recognising the need for change "iagnosing the problem +lanning the change Implementing the change <ollowing up on the change • • • • • /! 2ecoming aware of the pressure for change: • 1ost organisational changes are carried out in response to or in anticipation of pressures from inside or outside the organisation! @utside the organisation the technological innovations act as powerful triggers for change! &ithin the firm conflicts ariseK employees retire or resignK pressure mounts as the organisation outgrows its old ways of doing things! +ressures like these $ or the anticipation of such pressures! − "emand changes in the structure technology tasks and people in the organisation! • • • 0! Recognising the need for change: • • 2ecoming aware of the need is not enough 1anagers should also recognise the need for change! .

C1 is a method of evolutionary change! • • • • • • • • • G! Implementing the change: .hey discuss the need for change and diagnose the problems facing the organisation! .uences of those pressures? <or diagnosing the problems various procedures are available like: Interviews Cuestionnaire observations secondary data etc! D! +lanning the )hange: • • # strategy for change is formulated! @rganisations must choose between evolutionary and revolutionary change! # firm that pursues revolutionary change adopts a top'down change strategy! .:! "iagnosing the problem: • • • • • • Recogni4ing that change is needed is not enough! 1anagers must diagnose the pressures for change! +ressure may be likely economic or technical reasons! 1anagers must determine how it may affect the company! &hat are the conse.he organisation waits until it believes that the costs of not changing e9ceed the costs of overcoming organisational inertia and then introduces its master plan for change! Generally a top'down strategy calls for intervention at the high level of an organisation! &inding up of divisions or departments and downsi4ing are e9amples of this type of change! # firm that adopts evolutionary change adopts a bottom'up change strategy! 1anagers 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! <irms opting for bottom'up strategy prepare the organisation for change by involving managers and employees at all levels! .

uo )hange ?1ove8 ?movement from old state to new state8 "eveloping new attitudes values and behaviours Refree4e ?assurance of permanent change8 Reinforcing new values attitudes and behaviours @ld %tage Bew %tate .ardiness "evelopment of tension .ensed up on the job Imposing their individuals! wall on • .he final step in the change process is to evaluate the effects of the change! #nd institute procedural modifications that will ensure that change continues to be implemented! • b8 .he entire change process can be summari4ed in si9 stages: /H! >ewin’s +rocess 1odel: -nfree4e ?awareness of need for change8 Reducing the forces who wants status .here are several ways to show the resistance! • • • • • • • • =ostility +hysical abuse >oss of interest in work E9cessive idling time >ow productivity .he ne9t step is to implement the change! =ere resistance to change surfaces! .here are L approaches for managing resistance! − − − − − − Education and communication +articipation and involvement <acilitation and support Begotiation and agreement 1anipulation and co'operation E9plicit and implicit coercion • Each has its own advantages and disadvantages! L! <ollow up on the change: • .• • • . an9iety Groups deciding fairday’s work • • • • • • • • #ggression #pathy towards work %poilage of material )orrupting valuable software #bsenteeism Resignation .

• • • • • • • #ccording to Eurt >ewin’s <orce <ield 1odel effective change occurs! 2y unfree4ing the current situation! 1oving to a desired condition! Refree4ing the system! %o that it remains in the desired state! +opularly called as three stage model of change system! =ighly useful in understanding the ways of managing change! -nfree4ing: involves • Encouraging individuals to discard old behaviours by shaking up the status .uo situations! +resenting a case to make the people to recognise for a change and how their jobs will be improved by the change! %earching for new solutions! • • 1oving ?changing8: • #ims to shift or alter the behaviour of the individuals departments or organisation in which the changes e to take place! 1oving means $ developing new behaviours values and attitudes! %uch changes are sometimes through structural changes sometimes through @" techni.ransition 1anagement: • 2etween the two phases of change there is a transition which is not shown! 1anaging the transition is essential to keep the organisation going! .ransition management is the process of systematically planning organi4ing and implementing the change from the disassembly of the current state to the reali4ation of a fully functional future state within the organisation! • • .ues! • • Refree4ing: • • )hanges become relatively permanent! Bew values attitudes and behaviours are established as the new way of life! Bew ways of operating are cemented and reinforced! 1anagers must ensure that the organisational cultures and reward systems encourage the new behaviours and avoid the old ways of functioning! >earning theory and reinforcement theory can play important roles in the refree4ing phase! • • • .

uilibrium’ >ewin’s theory states how the forces for change and resistance balanceK they changeK again they balance and balanced at any time between the two opposing forces! &hen the forces are in balance the organisation is in a state of inertia and does not change! .• .ual in their forces! .uires that old behaviours are discarded and new behaviours introduced .hose new behaviours have to be institutionali4ed and rewarded • • • • • • /F! >ewin’s <orce <ield .o get the organisation change managers must adopt a change strategy to increase the forces for change and reduce the resistance to change or do both simultaneously! @rganisational change can occur at three levels: o Individual $ )hanges in individual’s attitudes values skills and behaviour! • • • • • • .his >ewin termed as 5.heory of )hange: >evel of +erformance Resistance to )hange )hange Resistance to )hange +0 +/ <orces for change .ime • In any organisation there are people who push for change and there are individuals who resist for change and desire status .ransition management ensures that business continues while the change is occurring! #n interim management structure or interim positions may be created to ensure continuity and control of the business during transition! )ommunication of the changes to all involved employees customers and suppliers play a role in transition management! >ewin’s model proposes that for change efforts to be successful the : stage process must be completed! <ailure in efforts to change can be traced back to one of the : stages! %uccessful change thus re.uo! Initially the two groups may be e.uasi stationery e.

o %tructure ; %ystems $ )hange in work design reporting relationships information systems the reward systems etc! o @rganisational )limate $ )hange in leadership style interpersonal relations decision making style and other such aspects!

K5 MODEL O: ORGAN-SAT-ONAL CHANGE – THE CONT-NUOUS CHANGE PROCESS MODEL:
• • • •

>ewin’s model is very simple and straight forward! 1any models of organisation change use his approach! =owever it does not deal with several important issues! # more comple9 and more helpful approach is illustrated in the figure below:

/! <orces for change

0! Recognise ; define problem )hange #gent

:! +roblem solving process

G! 1easure evaluate control

D! Implement the change

,ransi' tion manage ment

• • •

,his approach treats planned change from the perspective of top management! It indicates that the change is continuous! #s change becomes continuous in the organisations different steps are probably occurring simultaneously through out the organisation! ,his model incorporates >ewin’s concept into the implementation phase! In this approach top management perceives that certain forces or trends call for a change! %uch an issue is subjected to the organisation’s usual problem solving and decision making processes! -sually top management defines its goals in terms of what the organisation or certain processes or outputs will be like after the change! #lternatives 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! ,he change agent: o 1ay be a member of the organisation

• •

o #n outsider such as a consultant o %omeone from company head.uarters $ a far away place o #n outsider is preferred because of his assumed impartiality -nder the direction and management of change agent the organisation implements the change through >ewin’s unfree4e change and refree4e process! ,he final step is measurement evaluation and control! &ith this the top management determines the effectiveness of the change process by various benchmarks and indicators of organisational productivity and effectiveness!

• •

L5 LEADERSH-P STDLES:
?,op "own ; 2ottom up approaches are given in 1odule :8

>aisse4 or free'reign leadership approaches
• • • •

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

• •

#dvantages:
• • •

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

"isadvantages:
• •

It may result in disorgani4ed activities which may lead to inefficiency and chaos! Insecurity and frustration may develop due to lack of specific decision making authority and guidance!

,he team spirit may suffer due to possible presence of some uncooperative team members! %ome members may put their own interests above the group and team interests! @" "efinition: is the process of planned change and improvement of organisations through the application of knowledge of behavioral sciences! : points to remember in this definition are: i! @rganisation development involves attempts to plan organisational changes! ii! %pecific intention of organisation development is to improve organisation! iii! ,he planned improvement must be based on knowledge of the behavioral sciences such as @2 psychology sociology cultural anthropology and related field of study rather than financial and technological considerations!

M5 OD -NTERCENT-ONS:

• •

%everal @" interventions also called techni.ues have evolved over a long period: Good interventions have : characteristics: ?i8 ?ii8 ?iii8 ,hey are based on valid information about the functioning of the organisation usually collected by the employees! ,he 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!

! 1anaging workplace diversity r! Employee wellness %trategic: s! Integrated strategic management t! )ulture change u! %trategic change v! %elf designing organisations /J! .echnostructural: g! <ormal structural change h! "ifferentiation . integration i! )ooperative union management projects j! Cuality circles k! .eam building e! @rganisation confrontation meeting f! Inter'group relations .hird party intervention d! .uiry %trong emphasis on collaboration . 3alues: • • • • • • @rganisational >evel #ffected Individual Group @rganisation U $ U $ $ $ $ $ U U $ U U U U U U U $ $ $ $ U U U U U U $ $ U U U U U U U U $ $ $ $ $ U $ $ $ $ U U U U U $ U $ $ $ U U $ $ U U U U 3alues human .otal .uality management l! &ork design =uman Resource 1anagement: m! Goal setting n! +erformance appraisal o! Reward systems p! )areer planning . organisational growth )ollaborative and participative process # spirit of in.he @" +aradigms .he change agent as a catalyst Important factors in @" efforts: a8 Respect for people: . development .raining b! +rocess consultation c! .'Group6%ensitivity .F! "ifferent types of @" interventions and the level of their impact: Interventions: =uman +rocess: a! .

hey should be openly confronted! e8 +articipation: • • #ll those who are affected by the change should be involved in decision making surrounding the change! .rust .'groups are: /! +rovide the participants with increased awareness of their own behaviour and how others perceive them! 0! .raining: • #lso known as laboratory training encounter group or . support: • • .ualisation: • Effective organisations deemphasi4e hierarchial authority and control d8 )onfrontation: • • +roblems should not be swept under the rug! .he individuals learn through observing and participating rather than being told! .raining groups8 #ll refer to a method of changing behaviour through unstructured group interactions! 1embers meet in a free and open environment and discuss about themselves and their interactive processes! # behaviour scientist directs the discussions! .o develop greater sensitivity to the behaviour of others! :! .Individuals are perceived as being responsible conscientious and caring! • .o develop increased understanding of group processes! D! Increased ability to empathies with others! G! Improved listening skills! • • • • • • .he effective and healthy organisation is characteri4ed by trust authenticity openness and supportive climate! c8 +ower E.'groups ?.he @" specialist ?behavioral scientist8 creates the opportunity for participants to e9press their ideas beliefs and attitudes! .he objectives of .echni.hey should be treated with dignity and respect b8 .he more we involve the more will be committed to implementing those decisions //! E9planations on a few @" .ues: a8 %ensitivity .

ue concerned with the interpersonal relations and dynamics operating in work groups! 1anagers often sense that their unit’s performance can be improved! 2ut they are unable to identify what can be improved and how! #n outside consultant to assist the manager to perceive is employed! =e understands and suggests the processes which the manager must act upon! &ork flowK informal relationships among unit membersK formal communication channels are some of the areas! %imilar to sensitivity training but more task oriented! • • • • • • d8 .uestionnaire is usually filled by all employees of the organisation! .he steps involved are as follows: "ata )ollection <eedback to organisational unit #ction "ecision )onsultants c8 +rocess )onsultation: • Is a techni.he .eam 2uilding: .L! Greater openness I! Increased tolerance of individual differences and H! Improved conflict resolution skills b8 Implications of Resistance: • • • • It is a tool for assessing attitudes of organisational members! Identifying discrepancies among perceptions and %olving these differences! Even though every employee in an organisation can participate in survey feedback it is important that the organisational family $ the manager and those employees who report directly to him participate! # .uestionnaire seeks to find out the perceptions of the employees on a range of topics like − − − − − "ecision making practice )ommunication effectiveness )oordination between units! %atisfaction with the organisation *ob peers and immediate supervisors • • • .

he support and trust of group members enhance the implementation of change! %tep': • • • • e8 Intergroup "evelopment: • %eeks to change the attitude stereotypes and perceptions that groups have with each other! Eg! Engineers accountants production engineers maintenance engineers %uch stereotypes can have obvious negative impact on the coordinative efforts between the departments! # major area of concern in @" is the dysfunctional conflict that e9ist between groups! =ence change efforts are directed towards the group to change their attitudes stereotypes and perceptions through intergroup development! 5+roblem solving’ is one of the popular approaches for improving intergroup relations! In this method each group meets independently to develop lists of its perceptions of itselfK the other group and how it believes the other perceives it! • • • • • • .• Is a conscious effort by management to develop effective work groups through out the organisation! .hrough this process the participants are likely to be committed to the solution and interpersonal support and trust are developed! .he group analyses the problem! "etermines underlying cause in such areas as communication role clarification leadership style organisational structure and interpersonal relations! .hen selects the most appropriate solution! .hese work groups focus on solving actual problems in building efficient management teams! #imed at helping groups to become effective at task accomplishment! It utili4es high interaction group activities to create trust and openness among team members! .he group proposes several solutions! .eam building process involves the following steps: %tep'/ %tep'0 • • • • • • • • • .he team leader defines a problem! .eam building includes @" consultant feedback in such areas as communication and conflict resolution! @" consultant also helps in assessing group tasks member roles and strategies for accomplishing work tasks! .

1outon )arried out on an organisation'wide basis! %eeks to promote organisational e9cellence by fostering concern for production and concern for people! 1ost organisational problems stem from poor communication and inade.uate planning! 2lack .hird +arty Interventions: • • • • .his phase focuses on the relationship between the organisation’s work groups to improve coordination .• .o resolve serious conflicts those are related to specific work issues! @r may be caused by sub optimal interpersonal relations! @" consultants help the parties resolve their differences through such techni.hey assess their own managerial styles and work on improving such skills as team development group problem solving and communication! #fter appropriate introduction these key managers will work to implement the grid program through out the organisation! . 1outon proposed a multi step process for improving organisations by attempting to cultivate these skills! .eam "evelopment Intergroup development .ues as problem solving bargaining and conciliation! g8 Grid .he steps in grid @" are shown below: %teps / .raining #ctivities In a week'long seminar key managers learn about grid concepts and how they are applied! .he groups then share lists after which similarities and differences are discussed! "ifferences are clearly articulated and the group look for the cause of disparities! • f8 .he trained managers bring their new understanding of managerial grid concepts relationships and team effectiveness so that the team operates at F!F grid level! .his is concerned with helping individuals groups or departments! . cooperation! Intergroup tensions are dealt with openly and joint problem solving procedures are developed! • • • • • 0 ! : ! .raining: • Grid organisational development is an e9tension of the managerial 6 leadership grid concept developed by 2lake .

hey set goals to be tested evaluated and refined by managers and subordinates working together throughout the organisation! Goal @rganisation members seek to make the ideal attainment model a reality! Each submits proposals on how their activities should be carried out in order to achieve e9cellence and they proceed to take whatever corrective actions are necessary! %tabili4ation Eventually the results of all the phases are evaluated to determine which areas of the organisation still need improvement or alteration! Efforts are made to stabili4e positive changes and to identify new areas of opportunity for the organisation! h8 Cuality of &ork >ife: ?C&>8 • Is defined as the degree to which members of a work organisation are able to satisfy important personal needs through their e9periences in the organisation! C&> programs focus strongly on providing a work environment conducive to satisfying individual needs! .otal >ife %pace %afe .he programs vary but the goal of 5humani4ing the work place’ is of paramount importance! Richard &alton’s categories of programs are shown below: • • • #de. fair )ompensation "evelop' ment of =uman capacities %ocial Integration .D ! G ! L @rganisational . =ealthy work Environment Growth .op managers together create an ideal model of goal setting the organisation! .uate .here are a few popular approaches to humani4e workplace! . %ecurity )onstitutionlism %ocial Relevance • .

hese .ualities and special strengths of an organisation! .ue .uiry: ?#I8 • • • • 1ost @" approaches are problem oriented! .ualities are further built on to improve performance It focuses on organisations success and abilities than on its problems! .uiry is positive! Rather than looking for problems to fi9 this approach seeks to identify the uni.uality of work they perform! C&> programs benefit the organisation in these ways: − − − − − Increased job satisfaction! @rganisational commitment Reduced turnover among workers Increased productivity +rofitability and goal attainment for the organisation! • • • • .hey identify a problem and then look for solutions! #ppreciative in.hese are small groups of employees who meet regularly on voluntary basis to identify and solve problems related to the .• @ne such is 5work restructuring’ $ the process of changing the way jobs are done to make them more interesting to workers! *ob enlargement and job enrichment are two such! #nother approach in Cuality )ircles .his allows the organisation to change by playing to its strengths and competitive advantages! #I process essentially consists of four steps! @ften played out in large group meetings over two or three days and overseen by a trained change agent! .he hurdles are − − 2oth management and labour must cooperate in designing the programs +lan agreed by all must be implemented! i8 #ppreciative In.he idea is to find out what people think are the strengths of the organisation! − <or instance employees are asked to recount times they felt the organisation worked best! − @r when they specifically felt most satisfied with their jobs! • • • • • • .he first step is "iscovery: − .

he second step is "reaming: − .• .ualities! .ime consuming E9pensive "elayed pay'off period +ossible failure +ossible invasion of privacy +ossible psychological harm +otential conformity Emphasis on group processes rather than performance +ossible conceptual ambiguity "ifficulty in evaluation )ultural incompatibility N5 CREAT-C-TD -N ORGAN-SAT-ONS: • @rganisational culture promotes creativity and innovation /0! Bature of )reativity: • )reativity refers to the process by which novel but situationally appropriate outcomes are brought about! . >imitations of @rganisational "evelopment: 2enefits • • • • • • • • • • • • >imitations • • • • • • • • • • • @rganisation'wide changes =igher motivation =igher productivity 2etter .ue .he essence of creativity is the element of freshness originality and novelty that is also appropriate to the conte9t! • .he fourth step is "estiny: − In this final step participants discuss how the organisation is going to fulfill its dream! − .he information from the discovery phase is used to speculate on possible futures of the organisation! − <or instance people are asked to envision the organisation in five years and describe what different is going to happen! • .his typically includes the writing of action plans and development of implementation strategies! • • )ompanies who used this @" techni.he third step is "esign: − 2ased on the dream articulation participants focus on finding a common vision of how the organisation will look and agree on its uni.uality of work =igher job satisfaction Improved team work 2etter resolution of conflict )ommitment to objectives Reduced absence >ower turnover )reation of learning Individuals and groups .ue have increased their sales and profits by several crores of money! /0! 2enefits .

he process of creativity occurs in the following four stages: %tep'/ +reparation +reparation: − #n important condition for creativity! − Involves developing a clear understanding of what one wants to achieve through a novel solution %tep'0 Incubation %tep': Insight %tep'D 3erification • • • Incubation: − Is a process of reflective thought and is often conducted subconsciously! − "uring incubation the mind constantly considers the problem and works on it! − +lays powerful role in dissolving previously held notions about a problem! − .he ability to promote creativity in organisations is an important competence to face the turbulence of dynamics of changes in the organisations! • • /:! .ue and appropriate to the conte9t! .he problem or issue not forgotten! − .he )reative +rocess: • Researchers have developed a model that outlines the various stages of the creative process! .uire creative decisions! .o call anything creative the act must be uni.he problem is only put in the back burner! − 2ut the problem is still simmering in one’s mind − 2ut it is not at the forefront of his attention! − Incubation assists in divergent thinking and generating different approaches to the issue! • Insight: − Individuals e9perience insight at some point during the incubation stage! − It is an e9perience of suddenly becoming aware of a uni.he social and technological changes that organisations face re.he flashes of inspiration have no definite schedules! − .• .ue idea! − .hey might come at any time of the day or night! .

hese are the supporting environments and facilities to encourage people to search for new ideas: )reative +eople @rganisational %upport @rganisational )ulture Enhanced )reativity .uo +erseverance # pursuit of hobbies and specialised interests! 2elief that fantasy and day dreaming are not a waste of time! Inventive thinking style! =igh intellectual abilities! • /G! 1ethods of Enhancing )reativity: a! 2rainstorming b! Grid analysis c! >ateral thinking /L! )reativity Inducing <actors: a! .he new idea has to be subjected to evaluation and e9perimentation! − #t this stage tenacity is very important since other people may resist or reject the creative ideas! • )reative processes do not always follow an order! /D! )haracteristics of )reative Individuals: • It is said that creative people posses intellectual and personality characteristics different from their less creative counterparts! %ome of the traits of creative people include: − − − − − − − − &illingness to give up immediate gain to reach long range goals! # great amount of energy! #n irritation with status .− It can also be lost if not documented! • 3erification: − Ideas are generated at the insight stage! − It is not sufficient we have come up with an idea but verification of their value is important! − .

eam building +articipative decision making <le9ible organisation structures! e! "iversity: − "iverse ethnic and cultural groups! − "ivergent thinking is key to creativity f! E9posure: − E9pose employees to various kinds of e9perience! − >ike foreign assignments seminars e9tended leave etc! g! . Resources i! %electing creative people is the starting point in enhancing creativity in organisations! c! @rganisational %upport: − 1ay come in many ways! − %ets goals for creativity − Encourage employees to take risks and accept failures if any! − 2reak out of the shell and take risks! − 1ake the job intrinsically motivating! d! @rganisational )ulture: − − − − − @penness to new ideas! <riendly supervision .ime ."iversity b! )reative +eople: E9posure . Resources: − +eople are more creative when they have funds materials facilities information and time! − >avishness does not work! − +eople need enough resources O5 -NNOCAT-ONS -N ORGAN-SAT-ONS: • Innovation is the process of creating and doing new things that are introduced into the market place as products processes and services! Innovation involves every aspect of organisation manufacturing and marketing! research development • .ime .

• . adopting the change or innovation %tep'L 1onitoring and evaluating results %tep'G Implementing the change or innovation %tep'D +lanning to over come resistance to change or innovation %tep'/ : +erceiving an opportunity or a problem • >ook ahead for opportunities to solve current and anticipated problems! "o not focus only on immediate problems! =old periodic sessions with senior6junior managers and elicit suggestions! • • %tep'0 : "iagnosing the situations and generating ideas • "iagnose the situation and generate new ideas! .he process followed by managers when they engage in planned innovation and change are illustrated in the sketch %tep'/ +erceiving an opportunity or a problem %tep'0 "iagnosing the situation and generating ideas %tep': +resenting a pro' posal .he greatest challenge is to bring the innovative technology into the market in a cost effective manner! /8 .ypes of Innovation: • • Radical innovation $ major break through $ eg: 9ero9 %ystem 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! • 08 # %i9 %tep 1odel for +lanned Innovation or )hange: • .

here are three broad categories of obstructions for creativity perceptual cultural and emotional blocks as shown in the sketch! +erceptual 2locks )ultural 2locks Emotional 2locks Beed for )reativity . Innovation .his will fi9 the problems and take advantage of the opportunities! "o not overlook the status of ongoing activities relative to the competition! %tep': : +resenting a proposal and adopting the change • Establish the fact that innovation and change are important to the organisation! @therwise good ideas will be rejected when they are proposed! +reparation of a business plan is necessary for budget proposals! • • %tep'D : +lanning to overcome resistance • • -nderstand the reasons and resistance for change! @vercome the resistance! %tep'G : Implementing the innovation or change • • 1oment of truth when the change is put into operation! If the planning is carefully done implementation will be smooth %tep'L : 1onitoring the results • 1onitor and evaluate what happens after the change has been implemented! <eedback for improvements in successive innovations! • P5 <LOCKS :OR CREAT-C-TD & -NNOCAT-ONS: • • • It is not enough to take positive steps to promote creativity! It is also essential to guard against ways which hinder creativity! .• • . )reativity .

hat is not our problem ::! .he union won’t go for it! :H! .oo academic D/! .oo hard to implement! D:! .he failure to use all the senses in observing <ailure to investigate the obvious "ifficulty in seeing remote relationships <ailure to distinguish between cause and effect! 0! )ultural 2locks: Include: # desire to conform to established norms! @veremphasis on competition or conflict avoidance and smoothing! .he old times won’t use it! :L! .oo many projects now /:! It does not fit human nature /D! It has been done before /G! It needs more stud /L! It is not budgeted /I! It is not good enough /H! It is not part of your job /F! >et me add to that :0! .he fear of making a mistake! − <ear and distrust of others − <ear of grabbing the first idea that comes along %i9ty'@ne &ays to 2lock )reativity: /! # good idea butV 0! #gainst company policy :! #head of the times! D! #ll right in theory G! 2e practical L! )an you put into practice? I! )osts too much H! "on’t start anything yet F! =ave you considered /J! I know it won’t work //! It can’t work /0! .here are better ways! :F! .oo soon DI! &e have been doing it this way for DH! >ong time and it works DF! &e have not the manpower GJ! &e have not the time − − − − .he new people won’t understand :G! .hey won’t go for it! DJ! .he drive to be practical and economical! # belief that indulging in fantasy or other forms of open'ended e9ploration is a waste of time! :! Emotional 2locks: Include: − .oo much paper work DG! .oo hard to administer D0! .he boss won’t go for it! :D! .Innovation /! +erceptual 2locks: Include such factors as: − − − − .oo old fashioned DL! .he timing is off :I! .oo late DD! .

0J! >et us discuss it 0/! >et us form a committee 00! >et us make a survey first 0:! >et us not step on toes 0D! >et us put it off for a while 0G! >et us sit on it for a while 0L! >et us think it over for a while 0I! Bot ready for it yet! 0H! @f course it won’t work 0F! @ur +lan is different :J! %ome other time :/! %urely you know better G/! &e are too big G0! &e can too small G:! we have never done it that way GD! &e have tried it before GG! &hat bubble head thought that up? GL! &hat will the customers think? GI! &hat will the union think? GH! &hat you are really saying is? GF! &ho do you think you are? LJ! &ho else has tried it? L/! &hy has not someone suggested it before if it is a good idea? Aou are off baseO .