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Organizational Change

Principles of Management. Organizational Change. Sometimes change can be hard!. Boy, you’ll never get me up there!. Where are Changes Occurring?. Major Types of Change: Technological Management Styles Company Structures Culture/People World Economy. Need for Change.

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Organizational Change

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  1. Principles of Management Organizational Change

  2. Sometimes change can be hard! Boy, you’ll never get me up there!

  3. Where are Changes Occurring? Major Types of Change: • Technological • Management Styles • Company Structures • Culture/People • World Economy

  4. Need for Change Principles of Management • Based on external or internal forces. • Performance gap-a disparity between existing and desired performance levels. • Performance gap may occur because: - current procedures are not up to standard. - a new idea or technology could improve current performance.

  5. Who Brings About Change? Principles of Management

  6. Implementing ChangeMay Require • CreativeCulture • Idea Champions • New Venture Teams

  7. Creative People Principles of Management • Open-minded • Originality • Less authority, independence • Persistence • A relaxed and playful attitude • Persistence, focused approach

  8. Idea Champion Principles of Management A person who sees the need for and champions productive change within the organization.

  9. Four Roles in Championing an Idea • Inventor • Develops and • understands • technical aspects of ideas. • Does not know how • to win support for • the idea or make a • business of it. • Champion • Believes in idea. • Visualizes benefits. • Confronts • organization • realities of cost, benefits. • Obtains financial and • political support. • Overcomes obstacles. • Sponsor • High-level manager • who removes • organizational • barriers. • Approves and • protects idea within • organization. • Critic • Provides reality test. • Looks for short- • comings. • Defines hard-nosed • criteria that idea • must pass.

  10. Teams Facilitating Change Principles of Management New venture team: • a unit separate from the rest of the organization. • responsible for developing and initiating a major innovation. • teams are typically small. • loosely structured. • flexible.

  11. Environmental Forces Strategic Planning Initiate Change Implement Change Internal Forces Model of Change Sequence of Events Principles of Management Monitor global competition, customers, competitors, and other factors. Evaluate problems and opportunities, define needed changes in technology, products, structure, and culture. Use force field analysis, tactics for overcoming resistance. Facilitate search, creativity, idea champions, and venture teams. Consider plans, goals, company problems, and needs.

  12. Organizational Development Principles of Management Can help managers address: • mergers/acquisitions • organizational decline/revitalization • conflict management

  13. OD Activities Principles of Management • Team Building: enhances the cohesiveness and success of organizational groups and teams. • Survey Feedback: begins with a questionnaire distributed to employees on values, climate, participation, leadership, and group cohesion within their organization. • Large-group Intervention: brings together participants from all parts of the organization to discuss problems or opportunities and plan for change.

  14. Two Types of Planned Change Principles of Management Operational Change • based on efforts to improve basic work and organizational processes. Transformational Change • involves redesign and renewal of the total organization.

  15. Using Force Field Analysis to Change from Traditional to JIT Inventory System

  16. Resistance to Change Principles of Management • Self-Interest: the fear of personal loss is perhaps the biggest obstacle to organizational change. • Lack of Understanding and Trust: do not understand the intended purpose of a change, or distrust the intentions. • Uncertainty: the lack of information about future events. • Different Assessments and Goals: people who will be affected by innovation may assess the situation differently. Managers and employees often seem to prefer the status quo.

  17. Three Distinct Steps for Achieving Behavioral and Attitudinal Change Unfreezing: • diagnosis stage • participants are made aware of problems in order to increase their willingness to change their behavior Changing: • intervention stage • individuals experiment with new workplace behavior Re-freezing: • reinforcement stage • individuals acquire a desired new skill or attitude and are rewarded for it by the organization

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