Welcome to . . .

Managing, and Leading Organizational Change

Your Perceptions of Change

What are your reactions when you hear the word change?

Negative perceptions. Positive perceptions.

Types of Organizational Change

Anticipatory changes: planned changes based on expected situations. Reactive changes: changes made in response to unexpected situations. Incremental changes: subsystem adjustments required to keep the organization on course. Strategic changes: altering the overall shape or direction of the organization.

Forces of Change
External Forces
Market Place Govt Laws and Regulations Technology Labor market Economic Change

Internal Forces
Changes in Organisational Strategies Workforce change New Equipment Employee Attitude

A Journey Through Change:

Stability Comfort and control Lookin g Back Fear, Anger and Resistance Chaos Learning Acceptance, Commitment Looking Forwar d

Enquiry, Experimentatio n and Discovery

Individual Reactions to Change

How People Respond to Changes They Like?

Three-stage process Unrealistic optimism Reality shock Constructive direction

Individual Reactions to Change (contd)

How People Respond to Changes They Fear and Dislike?
Stages Getting off on the wrong track Laughing it off Growing self-doubt Destructive direction

Change: Organizational and Individual Perspectives (contd)

Tuning
The most common, least intense, and least risky type of change. Also known as preventive maintenance and kaizen (continuous improvement). Key is to actively anticipate and avoid problems rather than waiting for something to go wrong.

Adaptation
Incremental changes that are in reaction to external problems, events, or pressures.

Change: Organizational and Individual Perspectives (contd)

Re-Orientation
Change that is anticipatory and strategic in scope and causes the organization to be significantly redirected. Also called frame bending(Nadler and Tushman).

Re-Creation
Intense and risky decisive change that reinvents the organization. Also called frame breaking (Nadler and Tushman).

Why Do Employees Resist Change?

Surprise
Unannounced significant changes threaten employees sense of balance in the workplace.

Inertia
Employees have a desire to maintain a safe, secure, and predictable status quo.

Misunderstanding and lack of skills

Without introductory or remedial training, change may be perceived negatively.

Poor Timing
Other events can conspire to create resentment about a particular change.

Why Do Employees Resist Change? (contd)

Emotional Side Effects
Forced acceptance of change can create a sense of powerlessness, anger, and passive resistance to change.

Lack of Trust
Promises of improvement mean nothing if employees do not trust management.

Fear of Failure
Employees are intimidated by change and doubt their abilities to meet new challenges.

Personality Conflicts
Managers who are disliked by their managers are poor conduits for change.

Why Do Employees Resist Change? (contd)

Threat to Job Status/Security
Employees worry that any change may threaten their job or security.

Breakup of Work Group

Changes can tear apart established on-the-job social relationships.

Competing Commitments
Change can disrupt employees in their pursuit of other goals.

Overcoming Resistance to Change

Strategies for Overcoming Resistance to Change
Education and communication Participation and involvement Facilitation and support Negotiation and agreement Manipulation and co-optation Explicit and implicit coercion

LEADER ACTION:
Stability Learning, Acceptance & Commitment Looking Forward Comfort and control Lookin g Back

1
Create a felt need of change

4
Stabilize and Sustain the change

2
Introduce the

3
Revise and
finalize the change plan

Fear,Anger and Resistance

change

Chaos

Enquiry, Experimentatio n and Discovery

Making Change Happen

Two Approaches to Organization Change

Organization Development (OD) Formal top-down approach Grassroots Change An unofficial and informal bottom-up approach

Planned Change Through Organization Development (OD)

Organization development (OD)
Planned change programs intended to help people and organizations function more effectively. Applying behavioral science principles, methods, and theories to create and cope with change. OD creates fundamental change in the organization, as opposed to fixing a problem or improving a procedure. OD programs generally are facilitated by hired consultants,

Planned Change Through Organization Development (OD) (contd)

Objectives of OD
Deepen the sense of organizational purpose. Strengthen interpersonal trust. Encourage problem solving rather than avoidance. Develop a satisfying work experience. Supplement formal authority with knowledge and skillbased authority. Increase personal responsibility for planning and implementing. Encourage willingness to change.

Planned Change Through Organization Development (OD) (contd)

The OD Process (Kurt Lewin)
Unfreezing, changing, and refreezing social systems Unfreezing: neutralizing resistance by preparing people for change. Changing: implementing the planned change Refreezing: systematically following a change program for lasting results.

Unofficial and Informal Grassroots Change

Grassroots Change
Change that is spontaneous, informal, experimental, and driven from within.

Tempered Radicals
People who quietly try to change the dominant organizational culture in line with their convictions. Guidelines for tempered radicals
Think small for big results. Be authentic. Translate. Dont go it alone.

Managing Change
Structure

Work specialization,Departmentalization, Chain of Command Span of Control, Formalization,Job Redesign Work Process, Methods and Equipments

Technology

People

Attitude, Expectations, Perception and Behavior

C R E A T I V I T Y

Innovation

Stimulating Innovation
Creativity
The ability to combine ideas in a unique way or to make an unusual association.

Innovation
Turning the outcomes of the creation process into useful products, services, or work methods.

System View of Innovation

Inputs

Transformation
Creative Environment, Process and Situation

Outputs

Creative Individuals, Groups and Organizations

Innovative Products, Work Methods

Innovation Variables
Structural Variables Organic structure Communication Abundant resources High interunit stimulate Work and network support HR Variables High commitment to T & D High job security Creative people

Innovative Variables
Cultural variables Acceptance of ambiguity Positive feedback Low external control Tolerance of risks Tolerance of conflicts Focus on ends Open system focus

Structural Variables
Adopt an organic structure Make available plentiful resources Engage in frequent inherent communication Minimize extreme time pressures on creative activities Provide explicit support for creativity

Cultural Variables
Accept Ambiguity, have low external control Tolerant impractical Tolerant risk taking Tolerate conflict Focus on ends rather than means Develop an open system focus Provide positive feedback

Human Resources Variables

Actively promote T & D to keep employees skills updated Offer high job security to encourage risk taking Encourage individual to be Champion to change