131007PPT Transforming Orgs

8/13/2019 131007PPT Transforming Orgs

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ORGANIZATIONAL TRANSFORMATION

Transformational change refers to change thatcannot be handled within the existing paradigm andorganizational routines

It involves a sea change in the assumptions, valuesand practices of the organization.

It entails reshaping of the organizations culture anddesign

It focuses on changing the behaviour and mindset ofpeople in the organization

Single loop or adaptive learning (improving the

status quo) versus Double loop or generativelearning (changing the status quo) (Chris Argyris,1977). Third type is deuterolearning or learning howto learn.


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WHAT IS CULTURE?

It is the aggregate of beliefs, attitudes, values,

assumptions, and ways of thinking that is shared by

members of an organization and taught to new

members.

Culture is the soul of the organization the beliefs

and values, and how they are manifested. I think ofthe structure as the skeleton, and as the flesh and

blood. And culture is the soul that holds the thing

together and gives it life force. (Henry Mintzberg)


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HOW IS CULTURE OPERATIONALIZED?

Each organization has unique culture, distinguished

by its

Beliefs and philosophy Approaches to decision making and problems solving

Is based on the values and principles displayed by

leaders

Has its own stories and myths

Determines how to respond to threats and

opportunities

In both the external and internal environment Is deeply rooted

Core essence of organization

Often first expounded by founder


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COMPONENTS OF CULTURE

Routine ways of communicating

Norms shared by individuals and teams

Dominant values held by an organization

Guiding philosophy for managements policies

and decision making Rules of the game for getting along in the

organization

Climate of the organization


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THE LIABILITIES OF CULTURE

Culture can have dysfunctional aspects in

some instances.

Culture as a Barrier to Change When organization is undergoing change, culture may

impede change.

Culture as a Barrier to Diversity Strong cultures put considerable pressure on employees

to conform.

Culture as a Barrier to Mergers and Acquisitions

Merging the cultures of two organizations can be difficult,if not impossible.


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REQUIREMENTS FOR SUCCESSFULLY

CHANGING ORGANIZATIONAL CULTURE

Understand the old culture first

Support employees and teams who have ideas for a better

culture and are willing to act on those ideas

Find the most effective subculture in the organization and use

it as a model

Use the vision of a new culture as a guide for change

Recognize that significant cultural change takes time

Live the new culture


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SOME CHANGE TACTICS

Timing The greater the degree of change the more it may be useful to

build on actual or perceived crisis

Look for windows of opportunity e.g. new CEO, period following

takeover etc. Choose time for promoting change e.g. if there is a need to

reduce personnel do this before embarking on change

Job losses and de-layering Tactical choice of layers to be removed e.g. blockers of change

Avoid creeping job losses

Visible responsible and caring approach towards those who

lose jobs

Visible short term wins


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CHANGING ORGANIZATIONAL

CULTURE Change the reward system to encourage

acceptance of a new set of values.

Replace unwritten norms with formal rules andregulations that are tightly enforced.

Shake up current subcultures through

transfers, job rotation, and/or terminations. Work to get peer group consensus throughutilization of employee participation andcreation of a climate with a high level of trust.


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CREATING A HIGH PERFORMANCE

CULTURE

Culture reinforcement tools

Intensely people oriented Results oriented

Emphasis on achievement and excellence


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RESULTS ORIENTATION

Celebrate employee achievements

Hold managers responsible for growth and

development of people Use the full range of rewards and punishments

to enforce high standards

Encourage employees to use initiative andcreativity

Set reasonable and clear performancestandards for all employees


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EMPHASIS ON ACHIEVEMENT AND

EXCELLENCE

Atmosphere provides pressure to be the best

Management policies and practices inspire

people to do their best Excellence is held above all other goals

There are persistent unit cost reduction, zero

defects, improved product quality, andextraordinary customer service

Cultural changes are linked with improved

results


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LEADING CULTURAL CHANGE

Three key roles for executive leadership in

managing transformational change:

3. Envisioning: articulate a clear and crediblevision; set new and difficult standards for

performance and generate enthusiasm for newstrategy

4. Energizing: demonstrate personal excitement

for change and model he behaviour expectedof others; display integrity and credibility; shareexamples of early success

5. Enabling: provide resources necessary forundertaking the change; use rewards toreinforce new behaviour; build an effectiveTMT to manage new systems and change


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ATTRIBUTES OF EFFECTIVE LEADERS

Inner drive/energy: necessary to initiate and

sustain leadership of change over extended

periods of time. Intellectual capacity: necessary to listen to input

from diverse sources and synthesize vision and

strategy Integrity: necessary to synthesize vision and

strategy that benefits the organization first and

the individual second

Mental/emotion health: necessary for self-

confidence and interpersonal skills


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LEADERS AS CREATORS OF CULTURE

Diagnose which aspect of existing culture arestrategy supportive and which are not

Communicate openly and honestly theaspects of culture being changed or the needfor a new culture

Follow swiftly with visible actions to modify

the culture or implant a new one Top leaders must break the mold of cultural

norms in an existing culture Middle managers transmit and integrate the

culture changes


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LEARNING ORGANIZATIONS

A type of Organizational transformation intervention that aims

at

helping organizations to develop and use knowledge to change

and improve themselves continuously --- this involves twointerrelated processes ----organization learningwhich

enhances

an organization's capacity to acquire and develop newknowledge,

and knowledge managementwhich focusses on how that

knowledge can be organized or used to improve performance.

Can be a source of strategic renewal and can enable

organizations to acquire and apply knowledge faster and more

CHARACTERISTICS OF LEARNING


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CHARACTERISTICS OF LEARNING

ORGANIZATIONS

Learning embedded in culture Values experimentation, initiative, innovation, and

flexibility

Visible and strong management support Mechanisms and structures to nurture ideas Knowledge and information is acquired and

disseminated Resources are committed in fostering learning

Employees empowered to resolve problems

Equal emphasis on short- and long-termperformance

Deep desire throughout to develop, define, andadapt knowledge

GUIDELINES FOR CREATING


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GUIDELINES FOR CREATING

LEARNING ORGANIZATIONS

Encourage creative thinking

Create a climate to encourageexperimentation

Provide incentives for learning and innovation

Encourage systems thinking

Create a culture for team and individual

learning Have a system to channel and nurture

creative ideas and innovation

Create a shared vision for learning Broaden employees frames of reference

Create an environment that allows learning


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ORGANIZATIONAL KNOWLEDGE

The tacit and explicit knowledge that

individuals possess about products,

services, systems, and processes

Often codified in manuals, databases,

and information systems Steps in Knowledge Management:

generating knowledge, organizing

knowledge and distributing knowledge

Documents

131007PPT Transforming Orgs