Organizational Change 2012

7/29/2019 Organizational Change 2012

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ORGANIZATIONAL

CHANGE

Triggers of ChangeAny disorganizing pressure arising outsideor inside the organization, indicating thatcurrent arrangements, systems, procedures,rules and other aspects of organization

structure and process are no longer effective


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External Triggers for

Organizational Change

Developments in technology

Developments in new materials

Changes in customers requirements and tastes

Activities and innovations of competitors New legislation and government policies

Shifts in local, national and international politics

Changes in social and cultural values

Changing domestic and global economic and

trading conditions


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Internal Triggers for


New product and service design innovations

Innovations in the manufacturing process

New ideas about how to deliver services to customers

Low performance and morale, triggering job redesign Appointment of new senior manager or top

management team

Inadequate skills and knowledge base, triggeringtraining programmes

Office and factory relocation, closer to suppliersand markets

Recognition of problems, triggeringreallocation of responsibilities


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Lewins Three-Step Model

In some cases, it is better to anticipate

events and trends, and be proactive in

introducing appropriate organizational

changes

For change to occur, we first need to

unfreeze the current state of affairs, move

to the desired new state, and then

refreeze and stabilize those changes

Due to constant transformation,

refreezing no longer seems to be an

option


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Many organizations now face a high-velocity environment in which turbulent

and rapidly changing external conditions

are translated into a complex, multi-faceted, fluid and interlinked stream of

initiatives affecting work and organization

design, resource allocation and systems

and procedures in continuous attempts to

improve performance. The environmentfor most organizations is likely to remain

volatile, or become even more turbulent.


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-- Challenge or Paradox

Triggers and consequences are many andcomplex, hence establishing cause andeffect relationship is problematic

Studying change at different levels iscomplex i.e. individual, group and

organization levels Change is to be studied as a process a

series of events unfolding through time

Change that affects many is difficult to

evaluate as there may be no agreedcommon criteria on which to base

judgements

Change can only be understood fullyin relation to continuity, with respect

to what has not changed


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Shallow

Deep

Deepest

Fine Tuning:focus on efficiencyRestructure: centralize, decentralize

Reallocate resources: grow some departments, cut others

Improve business planning: symbolize a shift in thinking

Change the leadership: new CEO with major change

Change the organizations definition of success: create

new goals, objectives, targets to change behaviour

Change the mission, vision, values and philosophy:symbolize a radical shift in thinking and behaviour

Paradigm shift: change how we think, how we solveproblems, how boundaries are defined, the way we do

business: frame-breaking, mould-breaking, fundamental

strategic change


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Change and the Individual

Future Shock The stress and

disorientation suffered by people when

they are subjected to too much change

in too short a time

Coping Cycle The human response to

trauma and significant loss, suggesting

that the individual typically (but not

always) passes through a series of

emotional stages, including denial,

anger, bargaining, depression and

acceptance


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Coping Cycle

Denial Unwillingness to confront the

reality

Anger Turn accusations on those

apparently responsible

Bargaining Attempts to negotiate, to

mitigate loss

Depression The reality of loss or

transition is appreciated

Acceptance Coming to terms with

and accepting the situation and its full

implications


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The Pressure--Performance

Relationship

PressureLevel

Response Experience Performance

Very low Boredom Low levels of interest,

challenge & motivation

Low, acceptable

Low tomoderate

Comfort Aroused interest, usedabilities, satisfaction,

motivation

Moderate tohigh

Moderate to

high

Stretch Challenge, learning,

development, pushing the

limits

High, above

expectations

High to

unrealistic

Stress Overload, failure, poor

health, dysfunctional

coping behaviour

Moderate to low

Extreme Panic Confusion, threat, loss of

self-confidence, withdrawal

Low,

unacceptable


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Implications of Change

Change implies experimentation andcreation of something new

It also means discontinuity anddestruction of familiar structures and

relationships It involves confrontation with the

unknown and loss of the familiar

Thus, there might be resistance to

change an inability or anunwillingness to discuss or to acceptorganizational changes that areperceived in some way damaging orthreatening to the individual


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Sources of Resistance to Change

Ignorance Failure to understand theproblem

Comparison Solution is dislikedbecause an alternative is preferred

Disbelief Feeling that the proposedsolution will not work

Loss Change has unacceptablepersonal costs

Inadequacy Rewards from change

are not sufficient Anxiety Fear of being unable to cope

with the new situation

Demolition Change threatens to

destroy existing social arrangements


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Sources of Resistance to Change (contd.)

Power cut Sources of influence andcontrol will be eroded

Contamination New values andpractices are repellent

Inhibition Willingness to change islow

Mistrust Management motives forchange are considered suspicious

Alienation Other interests are more

highly valued than new proposals Frustration Change will reduce

power and career opportunities


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Methods for overcoming

resistance to change

Education and commitment group meetings,training, counseling, publishing reports

Participation and involvement collaborationin planning and implementation

Facilitation and support building awareness,providing help to overcome fears and anxieties

Negotiation and agreement compromisethrough trading and exchange

Manipulation and co-optation selective

dissemination of information; giving well-paid,high status positions to key resistors

Implicit and explicit coercion use of forceand threats to fire or transfer individuals, or tostifle their promotion and career prospects


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The Change Agent

A member of the organization seeking to promote,further, support, sponsor, initiate, implement or deliver

change. Skills required in a change agent are as follows:

Ability to work independently, without management

power, sanction and support

An effective collaborator, able to compete in ways thatenhance cooperation

Ability to develop high-trust relationships, based on high

ethical standards

Self-confidence, tempered with humility

Respect for the process as well as content of change

Ability to work across business functions and units,

multifaceted and ambidextrous

Willingness to stake reward on results and gain

satisfaction from success


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Contingency Approach to Change Implementation

Dunphy & Stace (1990)

ChangeLeadership

Incrementalchange

strategies

Transformativechange

strategies

Collaborative-

consultative

modes

Participative

evolution minor

adjustment, timeavailable,

change is

favoured

Charismatic

transformation

majoradjustment, little

time, support for

radical change

Directive-coercive

modes

Forced evolution minor

adjustment, time

available,

change is

opposed

Dictatorialtransformation

major

adjustment, no

time, no support

for change


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Kotters Steps to Transforming

your Organisation (1995)

1. Establishing a sense of urgency

2. Forming a powerful guiding coalition

3. Creating a vision

4. Communicating the vision5. Empowering others to act on the vision

6. Planning for and creating short-termwins

7. Consolidating improvements andproducing still more change

8. Institutionalising new approaches

Documents

Organizational Change 2012