Organizational change

Module 2

Models of organizational change
y Lewin·s view on organization: Kurt Lewin- two opposite forces-

equilibrium- seeking promotion change: driving force, maintaining status quo: restraining force. y Model 1: Kurt Lewin·s & Friends 3 step model: y 2 ideas about change: y First idea: status quo resultant of 2 opposing forces. Eg: production level of manufacturing company- some forces- higher level- some forces lower level

y Idea 2: model of the change process itself. 3 stage process y Unfreezing- the old behavior (or situation), moving to a new

level of behavior & refreezing the behavior at the new level. Eg: confidence- implementing- permanent in built nature y 3 stage model: refreeze
freeze

unfreeze

y Stage 1: unfreeze creates pain & discomfort- causes guilt &

anxiety y Stage 2: driving force- stronger/ weaker/ both. Change occurs increasing the driving force alone- counter parting restraining force y Stage 3: refreezing primary task- no lasting change

Model 2: Kurt Lewin·s Force Field Analysis y Force field Diagram Change Issue Driving force Restraining Force weak weak moderate Strong force No change change equilibrium .

Driving force.resistance to change. habits. organizational.planned change issue. project.y 2 forces driving & restraining y Forces include: people.any level: personal. IT. ext environment (globalization.push.visualize in favor or against y Top.organizationnew state of affairs. customs & attitudes y FFD.employee changing behavior . changing workforce) y Restraining forces.status quo.

Identify how you can influence each target group y Steps in FFD: 1.if action is implemented 1. Identify opponents & allies 3. Describe the current situation 2. . Describe the desired situation 3. Identify where the current situation will go.y Uses of FFD: Investigate balance of power involved in the issue 2.

Eg: extremely weak: 1.4. 5. 10. 9. List all forces driving change towards desired situation List all forces resisting change towards desired situation Discuss & interrogate all forces: are they valid? Can they be changed? Which are the critical ones? Allocate scores to each of the scores. left DF & right RF Discuss how change can reduce restraining forces Increasing DF & reducing RF may also result in some other forces/ create new ones . 8. 7.extremely strong 10 Chart the forces. 6.

management must understand & anticipate.System approach Org decision.DM Transformation ‡ Productivity ‡ Activities ‡ ‡ ‡ ‡ ‡ Men m/c Material Money Methods ‡ Productivity ‡ Efficiency Inputs Outputs .affects internal & external groups significant ways.

diagnosing.hampered y This theory highlights underlying relationships y Facilitates thinking b4 acting. evaluates the impact of their actions.maintains good balance. o/p & f/b y Attempts.y System theory. Xmn.solves problem. composed of interrelated parts y Gives manager a way of looking at an organization.as a whole & as apart of an activity.view org ² single unified.org . purposeful entity.i/p. Eg: production departmentmarketing department.no anticipation about CB.

µmanager decide things for othersµ y Over emphasis on oneness.not influenced by ´one best wayµ .bridges academia & practical problems y Objective.y Limitations: y Broad philosophical perspectives. coordinative & harmony of the organizations.org inbuilt org conflicts .

y7 stage model: y Modification of Lewin·s model. 3 stage model expanded to 7 stage model y Phase 1:developing a need for change.change agent.unfreezing phase y Phase 2: establishing a change relationship. Eg: client systemneeds help. establishing goals & intentions of action .establishing a working relationship y Phase 3: clarifying/ diagnosing client's system problem y Phase 4:examining alternative routes & goals.

y Phase 5 :transforming intentions.Lewin·s ´moving phaseµ y Phase 6: generalizing & stabilizing change.4. Take actions bring about change 3. Anchor the changes in corporate culture .refreezing phase y Phase 7: achieving terminal relationship.actual change efforts.terminating customer client relationship y To ensure complacency & righteousness Kotter·s 3 part framework: 1. Defrost the status quo 2. Phase 3.5.

ADKAR Model Model describes 5 required building blocks for changerealized successfully on individual level Awareness Reinforcement Desire Change Ability Knowledge .

allows mgmnt.focus on their activities on specific business results y Imparting communication & training activities.useful in imparting planning & execution of work .y Awareness: of why change is needed y Desire: to support & participate in the change y Knowledge: of how to change y Ability: to implement new skills & behavior y Reinforcement: to sustain the change y Goal oriented change management model.result of org change.

transition through process.ADKAR model) . develop change management) y Business dimension to change (need or opportunity is defined. scope & obj is defined. creates successful action plan.manager & employee as a whole.y ADKAR model can be used to: y diagnose employee dimension to change (resistance to change. new process system are developed. solution is implemented in the org) y People dimension to change (top level . solutions for business.

action implemented successfully .Power of ADKAR for managing change y Focus on the first element.root cause of failure y Where process is breaking down & elements are being overlooked y Focuses on maximum probability for success y Plans effectively for a new change/ diagnose y current change is failing y Corrective action taken.

Managerial approaches for implementing change y Managing change is more than reactive & doing damage control. y Besides reacting.mgr-consciously initiate &implement changes. specific strategies & kind of response .to meet new demands.creates change. systems change.crated by changed circumstances y 3 broad approaches.assumptions differ from people.

Solutions/ decisions.implement change. low productivity rate).can be traced through single tangible factor-changes in structure. reporting system & procedures .Top down approach y Most common way. high absenteeism. 2 assumptions st assumption: reason for changes existing in the organization y1 (eg: low performance.top.passed on through the formal channels.pushing down the hierarchy.´Unilateral decisionµ .

Contingency perspective Population ecology perspective Perspectives of Organizational change Resource dependence perspective Institutional perspective .

resource. y Eg: procuring raw materials from other company l1 .Resource dependence perspective y Survive in the industry.strategies to control environment-reduce dependency on organizationsinternal & external strategies.organizations.

3/28/2011 .Slide 21 l1 lakshmi.

: strategiesprotecting production processfluctuations in demandmaintaining inventory.Internal strategies Domain choice: Strategy to enter new mkt/ industry Geographical dispersion Relocation of business to other locationmarket share increases Buffering. Rationing. using multiple suppliers are included Internal strategies Recruitment Hiring people from external org helps in reducing dependence on the org Environmental scanning Monitoring changes in the envt & anticipating to the envt . Smoothing.

to maintain & enhance mkt share Lobbying Involves influencing regulatory agencies: govt policiesbenefits org Contracting Aimed to reduce uncertainty.External strategies Advertising Enhancing ² visibility.increase the reputation . strategic alliance & JV Co-opting Induct people from o/s to BOD.long term relationshipsuppliers Coalescing Possessing benefits through M&A.

organization plays in a particular sector. 3 associated concepts .Population ecology perspective y Population.leads to change Retention Retain the features that are needed by the envnt Variation Subsumesorg in terms of 7s Selection Selecting required features . Organization to survive in the industrymultiple niches.occupies ecological niche.

Constitutes institutional environment of organizations. values & culture of the organization.specific structures.Institutional perspective y Special relevance to social norms.external legitimacy.complying laws & regulations. 3 classifications: .org resembling each other.due course-org resemble each other.organization adopt.process.also called as symbolic elements y Instuitionalization.´isomorphismµ.given more importance than market competitors under this perspective.

PEST) & obtain legitimacy Normative isomorphism: ‡ OC through influence of professional managers/ specialist. structural featurespressure from statereinforce power of professional bodies . other org/ society at large Mimetic isomorphism: ‡ OC initiated by other organizations (features by imitating other successful orgcope up the pressure . structural featurespressure from state.Coercive isomorphism ‡ OC complying with govt legislations & regulations.

Understanding the change process y OC.succeeds.individual understands about the change- individual change tends to happen over a period of time y Steps to understand change: .

goals & value system .change may take place/ already taken place Acceptance phase Understanding stage Person.congruent to personal interest. durability.Preparation phase Contact stage Earliest encounter. operational Institutionalization stage Change. implemented in operations Awareness stage Person knows that changecontemplated Positive perception stage Developing positive views about change Internalization stage Highly committed to change.some degree of comprehension of nature & intent of the change Commitment phase Installation stage Change implemented.long history of worth.

8 step model for OC .

suggests new better ways & techniques Detailed job analysis Involve people. 6.look at ideal situations New overview analysis. Really understand & clarify mutual expectations about the level of detail & cost that project requires Consultant or a project manager. 4.less job secure . agree expectations on a pragmatic basis Assume that situations can be improved. 5. 2. 3.Leading the change process 1.

Facilitating change Analyze org & need for change Create a shared vision & common direction Develop participative implementation process Craft an implementation plan Line up political sponsorship Support strong leader role Develop enabling structures Communicate involve people & be honest Reinforce & institutionalize change .

Individuals naturally rush to defend the status quo if they feel their security or status are threatened yNature of resistance: yActive resistance: finding fault. ridiculing. . appealing to fear & manipulating yPassive resistance: agreeing verbally but not following through.Resistance to change y Defined as resistance as an inevitable response to any major change. feigning ignorance & withholding info.

3 levels of resistance y Individual resistance y Organizational resistance y Group resistance yIndividual resistance: sources of resistance: perceptions. personalities & needs .

own world.income. Changes in job task/ established work routines Fear of the unknown School.high need for securityresist changethreatens safety Eg: companytechnology Economic Factors Changeslower. Eg: usual route Security People.Habit Programmed response Confronted with changeaccustomed habitresistance.collegefirst day in a firm.resist change-hear what we want to hear-quality mgmntexpressing importance . Quality management programnegative attitude Selective information Process Individual shapes.

Group resistance ‡ Changes alters interaction b/w group members due to change in task & role relationship ‡ Members of cohesive group.even if it s wrong .union dictates Group inertia Group think & escalation of commitment ‡ Members ignore negative information.wish to keep things. task Group norms Group cohesiveness ‡ Indiv wants to changegroup norms constraintindividual union member willing to accept change of mgmnt. members.

planned interventions.through structure & systems using behavioral science .Intervention strategies for organizational change y Understanding organizational Development (OD) y Concerned with helping managers plan change in organizing & managing people. commitment & competence y Purpose is to enhance both the effectiveness &well being of their members.develop coordination.

power sharing & career development Organizational Development Value loaded OD consultants. conflict handling. DM. trust. participative authoritative Diagnosis/prescription cycle ´sickµ organizations ´diagnoseµ pills Prescribe intervention & monitor progress .Profound change Long lasting improvement Process oriented OD specialistproblem solving.conflict. self control.valuescooperation.

creative process for its members . ability to communicate the ideas & concepts.work for it.Developing learning organization y LO. cooperate with human beingsµ y Learning is an ongoing.achieve sustainable objectivesthemselves & communities they participate y Not simply.open to creative thought-tap knowledge.´ability to think critically & creatively.places. mechanisms & processes.enhance their capabilities.

beyongd adopting to change & anticipating change . values & beliefs.difficultyassumptions of cultural values & org structure y Generative learning: creativity & innovation.organizational productivity & capacity to achieve set objectives.routine behavioral learning.single loop & double loop y Single loop: learning.y LO.change in the organizational culture y Adaptive learning: adopt to environmental changes. learning without significant change y Double loop: reevaluates the nature of org objectives.

characteristics of LO is: Culture of facilitating change Characteristics of LO Presence of tension Systems thinking .y Theoretical foundation.

The systems thinking: LO recognizes.genuine concern for & in employee suggestions & innovations.of employees.high value of learning. .catalyst or motivational need to learn.operationalized through reward system 1. Organizational culture conducive to learning: OC.shared values.openness to new idea & external environment 3.Presence of tension: tension.empathies.stems gap b/w org vision & reality 2.

y Cope up with changing environment & uncertainty y To be more flexible & take advantage of the opportunities y To be more innovative y To make the most of the skills & talents of staff Y LO? How do organizations learn? y5 characteristics for building a learning organization .

System thinking Team learning Personal mastery Mental models Building shared values .

strive for commitment y Mental model: must be managed.prevents new & powerful insights & organizational insights.action creating problem y Personal mastery:µby being committed to ² lifelong learningµmore realistic.focus on openness.real change ² cannot be implemented y Building Shared Value: visions cannot be dictated.it fosters long term relationship .built in.y System thinking: analyzing how the org operates. focusing on becoming best person.

Communicate success or failure: learning.experimentation 3.employees teams.company should learn from mistakes 4.knowledge.consultancy.of team does not come together & learn. Encourage experimentation: learning. customers .y Team learning: should know importance of team work- organization cannot learn. Thrive on change: distinguish who succeeds & fails 2. Facilitate learning from surrounding environment: internal sources.spread quickly & efficiently. ext.developing ability to create desired results yRules for LO: 1.

commitment.5. teamwork.knows.but does ´to make profitsµ. individual effort A proper selfishness: LO.reward.org. vision.clear about goals.more often. 6.to promote acquisition of new skills.area of improvisation Reward learning: learning culture. 7.   Facilitate learning from the employees: employeethemselves.breakthrough & initiative-performance appraisal.suffice? Analyze: SW of the company What sort of org wants to be? .

     A sense of caring: like opportunities to sit in higher level meetings Projects. encouragement of initiatives .encourage personal development Horizontal careers to open up new possibilities Brain storming.What does it want to be known for? How will the success be measured & by whom? How to achieve plan? 8.new problems Credit based rewards.

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