Professional Documents
Culture Documents
OBJECTIVES LEARNING
Change Management The process of renewing the organization s direction, structure and capabilities to serve the ever-changing needs of the market place, customers and employees.
Examples
More cultural diversity Aging population Many new entrants with inadequate skills Faster, cheaper, and more mobile computers On-line music sharing Deciphering of the human genetic code Rise and fall of dot-com stocks 200002 stock market collapse Record low interest rates Global competitors Mergers and consolidations Growth of e-commerce
Technology
Economic shocks
Competition
Examples
Internet chat rooms Retirement of Baby Boomers Rise in discount and big box retailers IraqU.S. war Opening of markets in China War on terrorism following 9/11/01
World politics
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Economic factors
Technological factors
Information technology / the internet New production processes Computerization of processes Changes in transport technology
Examples
L& T - Restructuring Hindustan Unilever from Hindustan Lever Ltd. Hutch- Vodafone Pepsi- Environmental issues Satyam Infosys-leadership changes
A dramatic crisis Leadership turnover Stage of life-cycle Age of the organization Size of organization Strength of current culture
Formation
Growth
Collectivity stage:
Informal communicatio n High commitment
F & C stage:
Formalization of rules Stable structure Emphasis on efficiency
E of S stage:
More complex str decentralizn Diversified markets
Decline stage:
High employee turnover Increased conflict centralization
Varieties of change
Smooth incremental change (transactional)
Evolves slowly in a systematic and predictable way. Change happens at a constant rate. Change in the means and ways by which organizations achieve their goals.
Varieties of change
Discontinuous
Rate of change
Smooth incremental
Bumpy incremental
Time
Goals of Planned Change: Improving the ability of the organization to adapt to changes in its environment. Changing the behavior of individuals and groups in the organization.
Resistance to Change
Forms of Resistance to Change
Overt and immediate
Voicing complaints, engaging in job actions
Resistance to change
Sources of resistance Coping mechanisms
Perceived peripherality of change Participation in diagnosis Perception of imposition Indifference of top management Fear of large-scale disturbance Fear of inadequate resources Fear of obsolescence Fear of loss of power Fear of overload Participation and involvement Active support from the top Phasing of change Provision of resources Development of skills Role definition and reorientation Role clarity and definition
Refreezing
Stabilizing a change intervention by balancing driving and restraining forces.
Driving Forces
Forces that direct behavior away from the status quo.
Restraining Forces
Forces that hinder movement from the existing equilibrium.
6. 7. 8.
Assess/align the capabilities Of change agents : Challenge personal Assumptions Attitudes styles
Organizational Development
Organizational Development (OD) A collection of planned interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-being. OD Values:
1. Respect for people 2. Trust and support 3. Power equalization 4. Confrontation 5. Participation
Action Research
Action Research A change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicate.
Process Steps:
1. 2. 3. 4. 5. Diagnosis Analysis Feedback Action Evaluation
Action research benefits: Problem-focused rather than solution-centered. Heavy employee involvement reduces resistance to change.
E X H I B I T 186
Source: Based on P. M. Senge, The Fifth Discipline (New York: Doubleday, 1990).
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