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HND – 15. Organizational Change

HND – 15. Organizational Change. Lim Sei Kee @ cK. Introduction. Change – making things different Planned change – change activities that are intentional and goal oriented. What is Organizational Change?.

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HND – 15. Organizational Change

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  1. HND – 15. Organizational Change Lim SeiKee @ cK

  2. Introduction • Change – making things different • Planned change – change activities that are intentional and goal oriented

  3. What is Organizational Change? • An alteration of an organization’s environment, structure, culture, technology, or people • A constant force • An organizational reality • An opportunity or a threat • Change agent • A person who initiates and assumes the responsibility for managing a change in an organization

  4. Forces for Change Force Examples Nature of the workforce More cultural diversity Aging population Many new entrants with inadequate skills Technology Faster, cheaper, and more mobile computers On-line music sharing Deciphering of the human genetic code Economic shocks Rise and fall of dot-com stocks 2000–02 stock market collapse Record low interest rates Competition Global competitors Mergers and consolidations Growth of e-commerce

  5. Forces for Change Force Examples Social trends Internet chat rooms Retirement of Baby Boomers Rise in discount and “big box” retailers World politics Iraq–U.S. war Opening of markets in China War on terrorism following 9/11/01

  6. Sources of Individual Resistance to Change

  7. Sources of Organizational Resistance to Change

  8. Overcoming resistance to change • Education and communication • Participation • Facilitation and support • Negotiation • Manipulation and cooptation • Coercion

  9. Approaches to managing organizational change • Lewin’s three-step model • Kotter’s eight-step plan for implementing change • Action research

  10. Unfreezing Moving Refreezing Kurt Lewin Process of Planned Change • Provide rationale for change • Create minor levels of guilt/anxiety about not changing • Create sense of psychological safety concerning change • Provide information that suspects proposed changes • Bring about actual shifts in behavior • Implement new evaluation systems • Create minor levels of guilt/anxiety about not changing • Implement new hiring and promotion systems Adapted from Exhibit 14-3: Process of Planned Change

  11. Unfreezing the Status Quo

  12. KOTTER’S EIGHT-STEP PLAN FOR IMPLEMENTING CHANGE UNFREEZING 1. Create a sense of urgency – offer a compelling reason why change is needed 2. Form a coalition with enough power to lead the change 3. Create a new vision to direct the change, and strategies for its achievement 4. Communicate the vision throughout the organization MOVEMENT 5. Empower others to act by encouraging risk-taking and creative problem-solving 6. Plan for, create, and reward short-term “wins” that move toward the new vision 7. Consolidate improvements, reassess changes, and make adjustments REFREEZING 8. Reinforce the changes, show relationships between new behaviors and success

  13. Action Research Action Research A change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicate. • Process Steps: • Diagnosis • Analysis • Feedback • Action • Evaluation Action research benefits: Problem-focused rather than solution-centered. Heavy employee involvement reduces resistance to change.

  14. Organizational Development A collection of planned interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-being. • OD Values: • Respect for people • Trust and support • Power equalization • Confrontation • Participation

  15. Organizational Development Techniques Sensitivity Training Training groups (T-groups) that seek to change behavior through unstructured group interaction. Provides increased awareness of others and self. Increases empathy with others, improves listening skills, greater openess, and increased tolerance for others.

  16. Organizational Development Techniques Team Building High interaction among team members to increase trust and openness. • Team Building Activities: • Goal and priority setting. • Developing interpersonal relations. • Role analysis to each member’s role and responsibilities. • Team process analysis.

  17. Organizational Development Techniques Intergroup Development OD efforts to change the attitudes, stereotypes, and perceptions that groups have of each other. • Intergroup Problem Solving: • Groups independently develop lists of perceptions. • Share and discuss lists. • Look for causes of misperceptions. • Work to develop integrative solutions.

  18. Organizational Development Techniques Appreciative Inquiry Seeks to identify the unique qualities and special strengths of an organization, which can then be built on to improve performance. • Appreciative Inquiry (AI): • Discovery: recalling the strengths of the organization. • Dreaming: speculation on the future of the organization. • Design: finding a common vision. • Destiny: deciding how to fulfill the dream.

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