2918350 PPT of Manaing Change

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    Managing,

    and LeadingOrganizational

    Change

    Welcome to . . .

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    What are your reactions when you hear the

    word change?

    Negative perceptions.

    Positive perceptions.

    Your Perceptions of Change

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    Types of Organizational Change

    Anticipatory changes: planned changes based onexpected situations.

    Reactive changes: changes made in response to

    unexpected situations.

    Incremental changes: subsystem adjustmentsrequired to keep the organization on course.

    Strategic changes: altering the overall shape ordirection of the organization.

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    Forces of Change

    External Forces

    Market Place

    Govt Laws and Regulations

    Technology

    Labor market

    Economic Change

    Internal Forces

    Changes in Organisational

    Strategies

    Workforce change

    New Equipment

    Employee Attitude

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    Individual Reactions to Change

    How People Respond to Changes They Like?

    Three-stage process

    Unrealistic optimism

    Reality shock

    Constructive direction

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    Individual Reactions to Change (contd)

    How People Respond to Changes They Fear

    and Dislike?

    Stages

    Getting off on the wrong track Laughing it off

    Growing self-doubt

    Destructive direction

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    Change: Organizational and

    Individual Perspectives (contd)

    Tuning

    The most common, least intense, and least risky type

    of change.

    Also known as preventive maintenance and kaizen(continuous improvement).

    Key is to actively anticipate and avoid problems

    rather than waiting for something to go wrong.

    Adaptation Incremental changes that are in reaction to external

    problems, events, or pressures.

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    Re-Orientation

    Change that is anticipatory and strategic in scope and

    causes the organization to be significantly redirected.

    Also called frame bending(Nadler and Tushman). Re-Creation

    Intense and risky decisive change that reinvents the

    organization.

    Also called frame breaking (Nadler andTushman).

    Change: Organizational and Individual

    Perspectives (contd)

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    Why Do Employees

    Resist Change?

    Surprise

    Unannounced significant changes threaten employees sense ofbalance in the workplace.

    Inertia

    Employees have a desire to maintain a safe, secure, andpredictable status quo.

    Misunderstanding and lack of skills

    Without introductory or remedial training, change may beperceived negatively.

    Poor Timing Other events can conspire to create resentment about a

    particular change.

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    Why Do Employees Resist Change? (contd)

    Emotional Side Effects

    Forced acceptance of change can create a sense ofpowerlessness, anger, and passive resistance to change.

    Lack of Trust

    Promises of improvement mean nothing if employees do nottrust management.

    Fear of Failure

    Employees are intimidated by change and doubt their abilities tomeet new challenges.

    Personality Conflicts Managers who are disliked by their managers are poor conduits

    for change.

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    Threat to Job Status/Security

    Employees worry that any change may threaten their

    job or security.

    Breakup of Work Group Changes can tear apart established on-the-job social

    relationships.

    Competing Commitments

    Change can disrupt employees in their pursuit of

    other goals.

    Why Do Employees Resist Change? (contd)

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    Overcoming Resistance to Change

    Strategies for Overcoming Resistance to

    Change

    Education and communication

    Participation and involvement Facilitation and support

    Negotiation and agreement

    Manipulation and co-optation

    Explicit and implicit coercion

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    LEADER ACTION:

    Stability

    Comfort and

    control

    Lookin

    g Back

    Looking

    Forward

    Chaos

    Fear,Anger and

    ResistanceEnquiry,

    Experimentatio

    n and

    Discovery

    Learning,

    Acceptance &

    Commitment

    Create a feltneed ofchange

    Stabilize andSustain thechange

    Introduce

    thechange

    Revise and

    finalize thechange plan

    1

    2 3

    4

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    Making Change Happen

    Two Approaches to Organization Change

    Organization Development (OD)

    Formal top-down approach

    Grassroots Change

    An unofficial and informal bottom-up approach

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    Planned Change Through Organization

    Development (OD)

    Organization development (OD)

    Planned change programs intended to help people

    and organizations function more effectively.

    Applying behavioral science principles, methods,and theories to create and cope with change.

    OD creates fundamental change in the

    organization, as opposed to fixing a problem or

    improving a procedure.

    OD programs generally are facilitated by hired

    consultants,

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    Planned Change Through Organization

    Development (OD) (contd)

    Objectives of OD

    Deepen the sense of organizational purpose.

    Strengthen interpersonal trust.

    Encourage problem solving rather than avoidance. Develop a satisfying work experience.

    Supplement formal authority with knowledge and skill-

    based authority.

    Increase personal responsibility for planning andimplementing.

    Encourage willingness to change.

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    Planned Change Through Organization

    Development (OD) (contd)

    The OD Process (Kurt Lewin)

    Unfreezing, changing, and refreezing social systems

    Unfreezing: neutralizing resistance by preparing

    people for change. Changing: implementing the planned change

    Refreezing: systematically following a change

    program for lasting results.

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    Unofficial and Informal Grassroots Change

    Grassroots Change

    Change that is spontaneous, informal, experimental,and driven from within.

    Tempered Radicals

    People who quietly try to change the dominantorganizational culture in line with their convictions.

    Guidelines for tempered radicals

    Think small for big results.

    Be authentic.

    Translate.

    Dont go it alone.

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    Managing Change

    Structure

    Technology

    People

    Work specialization,Departmentalization,

    Chain of Command Span of Control,

    Formalization,Job Redesign

    Attitude, Expectations, Perception and

    Behavior

    Work Process, Methods and Equipments

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    Innovation

    C

    R

    E

    A

    T

    I

    VI

    T

    Y

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    Stimulating Innovation

    Creativity

    The ability to combine ideas in a

    unique way or to make an unusual

    association.

    Innovation

    Turning the outcomes of the creation

    process into useful products,services, or work methods.

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    System View of Innovation

    Transformation Outputs

    Creative Individuals,

    Groups and

    Organizations

    Creative Environment,

    Process and Situation

    Innovative Products,

    Work Methods

    Inputs

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    Innovation Variables

    Innovative Variables

    Structural Variables

    Organic structure

    Communication

    Abundant resources

    High interunit stimulate

    Work and network support

    Cultural variables

    Acceptance of ambiguity

    Positive feedbackLow external control

    Tolerance of risks

    Tolerance of conflicts

    Focus on ends

    Open system focus

    HR Variables

    High commitment to T & D

    High job security

    Creative people

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    Structural Variables

    Adopt an organic structure

    Make available plentiful resources

    Engage in frequent inherent

    communication

    Minimize extreme time pressures

    on creative activities

    Provide explicit support forcreativity

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    Cultural Variables

    Accept Ambiguity, have lowexternal control

    Tolerant impractical

    Tolerant risk taking Tolerate conflict

    Focus on ends rather thanmeans

    Develop an open system focus

    Provide positive feedback

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    Human Resources Variables

    Actively promote T & D to

    keep employees skills

    updated

    Offer high job security to

    encourage risk taking

    Encourage individual to

    be Champion to change