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Managing Organizational Change

Managing Organizational Change. Learning Principles and Change Kurt Lewin. Unfreezing old learning requires people who want to learn new ways to think and act. Unfreezing deals directly with resistance to change. Movement to new learning requires training, demonstration, and empowerment.

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Managing Organizational Change

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  1. Managing Organizational Change

  2. Learning Principles and Change Kurt Lewin • Unfreezing old learning requires people who want to learn new ways to think and act. • Unfreezing deals directly with resistance to change. • Movement to new learning requires training, demonstration, and empowerment. • Refreezing the learned behavior occurs through the application of reinforcement and feedback.

  3. Change Agents • Change agent – an intervener who brings a different perspective to the situation and challenges the status quo. • The success of any change program rests heavily on the quality and workability of the relationship between the change agent and the key decision makers within the organization.

  4. Types of Change Agents External Change Agents Internal Change Agents External-Internal Change Agents

  5. Why People Resist Change • Parochial self-interest • Misunderstanding and lack of trust • Different assessments • Low tolerance for change

  6. Forces for Change Environmental Forces Internal Forces

  7. Diagnosis of a Problem • There is no formula for accurate diagnosis, but the following questions point the manager, or change agent in the right direction: • What is the problem as distinct from the symptoms of the problem? • What must be changed to resolve the problem? • What outcomes (objectives) are expected from the change? • How will those outcomes be measured?

  8. Diagnosis of a Problem:Data Collection Process and Techniques • Questionnaire data can be collected from large numbers of people. • Direct observations can be taken of actual workplace behavior. • Selected individuals in key positions can be interviewed. • Workshops can be arranged with groups to explore different perceptions of problems. • Documents and records of the organization can be examined for archival and current information.

  9. Intervention – A specific action or program undertaken to focus the change process on particular targets.

  10. Depth and Approach of Intended Change • Depth of intended change –refers to the magnitude of the problem to be addressed and the significance of the change required to address the problem. • Three approaches to intended change: • Structural • Behavioral • Technological

  11. Depth and Approach of Intended Change (continued) • Structural • Focuses on changing or redesigning jobs, workflow, or organizational structure. • Behavioral • This is organizational development (OD). • Technological • This change could involve computers, intranets, the IT infrastructure, materials, techniques, or automation of work processes.

  12. Internal Change MastersRosabeth Moss Kanter • Use kaleidoscope thinking • 2. Create clear vision and sense of direction • 3. Build coalitions • 4. Work through teams • 5. Make everyone a hero

  13. Structural Change Alternative Techniques • Changes in the nature of jobs • Work simplification • Job enrichment • Changes in the bases for departmentalization • Function • Territory • Product • Customer • Changes in line – staff relationships

  14. Behavioral Change Alternative Techniques Team Building Diversity Training

  15. Technological Change Alternative Techniques Flexible manufacturing systems Automation Wireless Connectivity Robotics

  16. Anticipated Outcomes of Three Change Approaches Structural changes Nomothethic Satisfaction Morale Performance Work simplification Job enrichment Job description Departmentalization Behavioral changes Group Communications Attitudes Self-awareness Problem solving Initiator of change: internal and/or external change agent Team building Diversity Robots Automation Wireless connectivity Efficiency Output Quality Technological changes Ideographic Types of Change Programs Anticipated Improvement Outcomes

  17. Trends in Organizational Change Downsizing Empowerment Flextime Telecommuting

  18. Minimizing Resistance to Change • Education and communication • Participation and involvement • Facilitation and support • Negotiation and agreement • Manipulation and cooptation • Explicit and implicit coercion

  19. Scanning imperative Performance gap Concern for measurement Experimental mindset Climate of openness Continuous education Operational variety Multiple advocates Involved leadership Systems perspective Factors that Facilitate Organizational Learning Capabilities

  20. Alternative Change Management Approaches Managing Change through Power Managing Change through Reason Managing Change through Reeducation

  21. Managerial Areas Mission and Strategy Organization Structure Human Resource Management • Undertake SWOT Analysis • Define mission and selecting resources to accomplish it. Differentiating: organize work into roles (production, marketing and so forth). Integrate: recombining roles into departments, divisions, regions. Align structure to strategy. Fit people to roles. Specify performancecriteria Measure performance. Staff/ and develop to fill roles (present and future). Determine who influences mission and strategy. Manage coalitional behavior around strategic decisions. Distribute power across role structure. Balance power across group of roles (I.e., sales vs. marketing, production vs. R&D and so forth). Manage succession politics (who gets ahead, how they get ahead). Design and administer reward system (who gets what and how). Manage politics of appraisal (who is appraised by whom and how). Technical System Manage influence of values and philosophy of mission and strategy. Develop culture aligned with mission and strategy. Develop managerial style aligned with technical and political structure. Develop subcultures to support roles (production culture, R&D culture, and so forth). Integrate subcultures to create company culture. Select people to build or reinforce culture. Develop employees (socialization) to mold organizational culture. Manage rewards to shape and reinforce culture. Political System Cultural System Tichy’s Strategic Management Mix

  22. Conditions Which Limit Change Interventions Leadership Climate Formal Organization Organizational Culture

  23. Guidelines for Managing Change • Management and all those involved must have high and visible commitment to the effort. • People who are involved need to have advance information that enables them to know what is to happen and why they are being asked to do what they are to do. • The effort (especially the evaluation and reward systems) must be connected to other parts of the organization.

  24. Guidelines for Managing Change (continued) • The effort needs to be directed by line managers and assisted by a change agent if necessary. • The effort must be based on good diagnosis and must be consistent with the conditions in the organization. • Management must remain committed to the effort throughout all its steps, from diagnosis through implementation and evaluation.

  25. Guidelines for Managing Change (continued) • Evaluation is essential and must consist of more than asking people how they felt about the effort. • People must see clearly the relationship between the effort and the organization’s mission and goals. • The change agent, if used, must be clearly competent and perceived as competent.

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