You are on page 1of 31

Managing Change

20 Oct 10

Prof. Samir Pradhan

Organizational Change
Planned Change change resulting from a deliberate decision to alter the organization Unplanned Change change that is imposed on the organization and is often unforeseen

Managers must be prepared to handle both

External Forces for Change
Globalization Workforce Diversity

Changing Technology

Ethical Behavior

more Change middle-aged Workforce Diversity .Globalization Organizations must rethink the most efficient ways to Majority of Use resources new workers Disseminate/gather information will be female Develop people Will be from small towns Or tier 2/3 cites Structural Change & Workforce is aging Mental less young workers.

Ethical Behavior Other Organizations Customers Ethical Treatment Environment Changes in work relationships Society Technological Change Changing Technology Changes in organizational structure .

Internal Forces for Change Declining Effectiveness Company Crisis Changing Work Climate Changing Employee Expectations .

such as making small improvements Strategic Change .change in which the organization moves to a radically different. and sometimes unknown. such as organizational restructuring Transformational Change .change of a relatively small scope.change of a larger scale.Scope of Change Incremental Change . future state .

The Change Agent s Role Change Agent .the individual or group who undertakes the task of introducing and managing a change in an organization The change agent can be internal or external .

political system. accused of favoritism  may be too close to the situation to be objective .Internal Change Agents Advantages  know past history. and culture  must live with results of change so will move carefully Disadvantages  may be associated with factions.

they must be perceived as trustworthy.External Change Agents Advantages  outsider¶s objective view  impartiality Disadvantages  limited knowledge of organization¶s history  may be viewed with suspicion To succeed. be experts with proven track records. be similar to those they are working with .

Resistance to Change ‡ ‡ ‡ ‡ ‡ ‡ ‡ Fear of the unknown Fear of loss Fear of failure Disruption of interpersonal relationships Personality conflicts Politics Cultural assumptions and values .

Dealing with Resistance to Change ‡ Communication ± details ± rationale ‡ Participation in the process ± ownership ± commitment ‡ Empathy and support .

Copyright © 1987 John Wiley & Sons. identify Sadness. p. transfer Anger Neutralize. Inc. plan Confusion Table adapted from H. Inc. 15. Aftershock: Helping People through corporate Change. Woodward and S. acknowledge Explain. Reprinted by Permission of John Wiley & Sons. Buchholz. . worry Explore.Reactions to Change & Managerial Interventions Reaction Disengagement psychological withdrawal from change Disidentification feeling that one¶s identity is being threatened by change Disenchantment feeling negativity or anger toward a change Disorientation feelings of loss and confusion due to change Expression Withdrawal Managerial Intervention Confront.

and behaviors are substituted for old ones 3. Moving . Unfreezing . values. Refreezing .involves encouraging individuals to discard old behaviors by shaking up the equilibrium state that maintains the status quo 2. and behaviors as the new status quo .new attitudes.Lewin s Three Step Change Model 1. values.involves the establishment of new attitudes.

have no energy Family history of cardiovascular disease New.Force Field Analysis of Decision to Engage in Exercise Forces for change Weight gain Feel lethargic. physically demanding job Forces for status quo Lack of time No exercise facility at work Spouse/partner hates to exercise No interest in physical activity or sports Equilibrium .

Applying Lewin s Model to the Organization ‡ Unfreezing: the organization eliminates rewards for current behavior ‡ Moving: the organization initiates new options and explains their rationale ‡ Refreezing: organizational culture & formal reward systems encourage the new behaviors .

Organizational Development (OD) Organizational Development (OD) .a systematic approach to organizational improvement that applies behavioral science theory and research in order to increase individual and organizational well-being and effectiveness .

Diagnosis & Needs Analysis Diagnosis and needs analysis Follow-up Intervention Ask ‡ What are the forces for change? ‡ What are the forces preserving the status quo? ‡ What are the most likely sources of resistance? ‡ What are the goals to be accomplished by change? .

OD Intervention Methods: Organizational/Group Techniques Survey Feedback .a widely used method of intervention whereby employee attitudes are solicited by questionnaire Anonymous Group reporting format No repercussions Clear purpose Follow up .

OD Intervention Methods: Organizational/Group Techniques Management by Objective an organization-wide intervention technique of joint goal setting between employees and managers Initial objectives Periodic progress reviews Problem solving to remove obstacles to goal achievement .

a program that embeds product and service quality excellence into the organizational culture Raise aspirations about product/service quality Embed product/service quality excellence in the organizational culture .OD Intervention Methods: Organizational/Group Techniques Quality Program .

an intervention designed to improve the effectiveness of a work group Seek feedback Discuss errors Reflect on successes & failures Experiment with new ways of performing Climate of psychological safety .OD Intervention Methods: Organizational/Group Techniques Team Building .

OD Intervention Methods: Organizational/Group Techniques Large Group Interventions events that bring all of the key members of a group together in one room for an extended Outside consultants determine period of time participants & goals Participants = critical mass supporting change .

OD Intervention Methods: Organizational/Group Techniques Process Consultation .an OD method that helps managers and employers improve the processes that are used in organizations Outside consultant: Enters organization Defines the relationship Chooses an approach Gathers data Diagnoses problem Intervenes Leaves organization .

increasing the job knowledge. skills. and abilities that are necessary to do a job effectively In formal classroom settings On the job (Continual updating) .OD Intervention Methods: Individual-Focused Techniques Skills Training .

Training can: ‡ help employees understand each other ‡recognize their own feelings ‡improve communication .an intervention designed to help individuals understand how their behavior Outside trainer who affects others intervenes only to move the group forward.OD Intervention Methods: Individual-Focused Techniques Sensitivity Training .

OD Intervention Methods: Individual-Focused Techniques Management Development Training a host of techniques for enhancing managers skills in anVerbal information organization Intellectual skills Attitudes Development .

OD Intervention Methods: Individual-Focused Techniques Role Negotiation .a technique whereby individuals meet and clarify their psychological contract Outcomes: ‡ Better understanding of what each can be expected to give & receive ‡ Less ambiguity .

OD Intervention Methods: Individual-Focused Techniques Job Redesign .an OD intervention method that alters jobs to improve the fit between individual Realign task demands and skills and the demands individual capabilities of the job Redesign jobs to fit new techniques or organization structures .

OD Intervention Methods: Individual-Focused Techniques Health Promotion Programs Career Planning Ex. employee assistance Match individual¶s career aspirations with organizational opportunities . Stress reduction education.

Ethical Considerations in Organizational Development ‡ ‡ ‡ ‡ Selection of the OD method Voluntary participation Confidentiality Potential for manipulation by the change agent .