Organizational Transformation 3.pptx

7/24/2019 Organizational Transformation 3.pptx

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Organizational Change &Transformation

Aradhna Malik

Assistant Professor

VGSOM, IIT Kharagpr


2/41

Organizational !ltre "Armenakis, #ro$n & Mehta, %''(

Manifested at three le)els*Cltral artefa!ts* Visi+le str!tres & pro!esses,

dress, o+ser)a+le ritals & !eremonies

sposed +eliefs & )ales* Cons!iosl- de)elopedformal organizational pra!ti!es s!h as strategies,

goals & poli!ies, & informal pra!ti!es like impli!it

norms

.nderl-ing assmptions* .n!ons!ios thoghts,+eliefs, e/pe!tations & theories


3/41

Cltral t-pologies "Armenakis, #ro$n & Mehta, %''( Organizational effe!ti)eness in e/ternal en)ironments*#rns & Stalker "'01'(* Me!hanisti! & organi!

Kotter & 2eskett "'00%(* Adapti)e & nadapti)e

Organizational effe!ti)eness "irrespe!ti)e of en)ironment(

3enison "'045(* More and less parti!ipati)e6inn & Spreitzer "'00'(* Cltre in !ompeting )ales frame$ork

7 grop, de)elopmental, rational & hierar!hi!al !ltres

Gregor- et al8 "%0(* #alan!ed & n+alan!ed !ltres

Vales*S!hein "%5(* thi!al & nethi!alPalmer et al8, "%'(* Stakeholder theor- of management 7

9dgement on the +asis of e!onomi!, legal, moral & philanthropi!

responsi+ilities


4/41

Cltral transformation "Armenakis, #ro$n & Mehta, %:(

Organizational transformation*Change !ontent "$hat is to +e !hanged(

Change pro!ess "ho$ the !hange is to +e

implemented(


5/41

;eadiness model for organizational

transformation "Armenakis & 2arris, %%, in Armenakis, #ro$n & Mehta, %''(

/ternal !onte/t

Internal !onte/t

The !hange message

3is!repan!- Appropriateness Self


6/41

TAMS"Training for /!ellen!e in Ameri!an Manfa!tring & Ser)i!es,In!8(

Model of Organizational Transformation"Sparks & 3orris, '00(>A3;S2IP? Good management? In)ol)ement? Vision

CO@[email protected]

IMP;OVM@T

POP>? In)ol)ement? Commni!ation? Team$ork

? Training

MT2O3S? Market resear!h? 6alit- impro)ement

tools

? Pro+lem sol)ingteams? Statisti!al pro!ess

!ontrolST;ATG? Inno)ation 7 In)ention? Pro!ess Balit-

? Cstomer ser)i!e


7/41

Con)e-ing !hange "Armenakis, #ro$n & Mehta, %''(

Change agent element* Prin!ipals $ho $illdri)e the !hange*Glo+al* Primar- initiator of the readiness program

>o!al* S+ordinate managers2orizontal* Opinion leaders $ho are respe!ted +-

their peers & $ho spport the !hange effort & assist

the glo+al & lo!als in selling the !hange to !hange

re!ipients


8/41

Instittionalization model for sstaining !hange"Armenakis, #ro$n & Mehta, %''(

The !hange message

3is!repan!- Appropriateness Self


9/41

Mandate for organizational transformation"Ti!h-, '04D(

n)ironment

Te!hni!al, !onomi! Se!tor? Stagflation? 3e!lining prod!ti)it-? Ser)i!e e!onom-? Information pro!essing

? Atomation

Politi!al Se!tor? Interest 7 Grop politi!s? Glo+al interdependen!e? 3emands for parti!ipation

? Bit- isses

CltralE So!ial Se!tor? 3emographi!s "#a+- +oom &

Ageing(? Indi)idalism )s8 !olle!ti)ism? Professional la+or for!e

? 2igh e/pe!tations

Organization

Te!hni!al S-stem? Indstr- ;e)italization

Politi!al S-stem? 3istri+ti)e Fsti!e

Cltral S-stem? 6alit- of life

MA@AGI@G

ST;ATGIC

C2A@G

Change


10/41

Strategi! management frame$ork"Ti!h-, '04D(

Core dilemmas for organizations*Te!hni!al design pro+lem

Organization fa!es a prod!tion pro+lem

So!ial and te!hni!al resor!es mst +e arranged to prod!e desired

otpt

Politi!al allo!ation pro+lem Organization fa!es a pro+lem of allo!ation of po$er and resor!es

.ses to $hi!h the organization is pt as $ell as $ho reaps the

+enefits mst +e determinedCltralE ideologi!al mi/ pro+lem

Organizations are held together +- a normati)e gle 7 shared

+eliefs

Organizations mst determine $hat )ales need to +e held +- $hat

people


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Strategi! mi/ for organizational transformation"Ti!h-, '04D(

MA@AG;IA>

A;AS

Te!hni!al

s-stem

Politi!al

s-stem

Cltral

s-stem

Mission & Strateg-

Assessing en)ironment? Assessing organization? 3efining mission &

fitting resor!es

? ho gets to inflen!e

mission & strateg-? Managing !oalitional

+eha)ior arond

strategi! de!isions

? Managing inflen!e of

)ales & philosoph-? 3e)eloping !ltre

aligned $ith mission &

strateg-

MA@AG;IA> TOO>S

Organization

Str!tre

3ifferentiation

Integration

Aligning str!tre

to strateg-

3istri+tion of po$er? #alan!ing po$er

a!ross grops of

roles

? 3e)eloping a managerial

st-le aligned $ith str!tre? 3e)elopment of

s+!ltres to spport

roles

? Integration of s+!ltresto form !ompan- !ltre

2;M

? illing people to roles? Spe!if-ing performan!e

!riteria

? Measring performan!e? Staffing & de)elopment

? Managing s!!ession

politi!s? 3esign & administration

of re$ard s-stem

? Managing appraisalpoliti!s

? Sele!tion of people to

+ild or reinfor!e

!ltre? 3e)elopment to mold

organization !ltre

? Management ofre$ards to shape the


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#ondaries & pra!ti!es in instittional

!hange & sta+ilit- "Hietsma & >a$ren!e, %'( #ondar-* A distin!tion that esta+lishes !ategories of o+9e!ts,

people, or a!ti)ities8

Organizational field* A !ommnit- of organizations that partakes of

a !ommon meaning s-stem & $hose parti!ipants intera!t more

freBentl- & fatefll- $ith one another than $ith a!tors otside thefield8J

Pra!ti!es* Shared rotines or re!ognized forms of a!ti)it-J

;elationship +et$een +ondaries & pra!ti!es*

Strong +ondaries fa!ilitate sr)eillan!e & enfor!ement me!hanisms in!ommnities & en!orage shared nderstandings of so!ial o+ligations &

norms

Pra!ti!es nderpin e/pli!it, formal +ondaries, $hi!h in trn help to

maintain ela+orate sets of pra!ti!es

#ondaries & pra!ti!es ha)e material effe!ts on the distri+tion of po$er &pri)ilege, $hi!h !an fel !onfli!ts +oth $ithin & a!ross +ondaries8


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#ondar- $ork & pra!ti!e $ork"Hietsma & >a$ren!e, %'(

#ondar- $ork* A!tors= efforts to esta+lish, e/pand, reinfor!e,or ndermine +ondariessta+lishing +ondaries to prote!t atonom-, prestige, & !ontrol of

resor!es

Strategies to manage !ross +ondar-

pro!esses & artifa!ts that $ork to esta+lish a shared !onte/t=8

#ondar- +rea!hing fo!ssing on framing & resor!es mo+ilization

in an attempt to inflen!e opportnit- str!tres, !on!eptalized as

the relati)e openness of the politi!al s-stem or an indstr-8

Pra!ti!e $ork* Creation, maintenan!e "entreprenership &

inno)ation( & disrption of pra!ti!es "dismantling the

normati)e, !ogniti)e, & reglati)e me!hanisms spporting

them(


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;elationship +et$een +ondar- $ork &

pra!ti!e $ork "Hietsma & >a$ren!e, %'(Pra!ti!e ork

#ondariesPra!ti!es

#ondar- ork

Moti)ate

Creates,

maintains,disrpts

Moti)ate

Moti)ate

Creates,maintains,

disrptsMoti)ate

Pra!ti!es ena!t & spport +ondaries

#ondaries delimit sets of pra!ti!es


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#ondar- $ork, pra!ti!e $ork, & the !-!les of instittional

sta+ilit- & !hange "Hietsma & >a$ren!e, %'(

CyclesBoundary work Practice work

[email protected]@A>

STA#I>IT

#onding the ield? Controlling mem+ership? Co

I@@OVATIO@

[email protected]@A>;STA#I>IHATIO@


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Prin!iples of Organizational Transformation"Tranhant, #rke & Koon!e, '00L(

.nderstand the e/ternal en)ironment in $hi!h -or !ompan- operates, & -o

$ill ne)er +e +lindsided +- -or !stomers or -or !ompetitors again nlist people=s passion & energ- to spport -or !ompan-=s mission & strateg- ;emem+er that $hile !harismati! leadership ma- gra+ the headlines, it is stead-

& !onsistent leadership that a!tall- reslts in !hanges to the +ottomline8 To !hange an organization=s !ltre, -o mst first !hange people=s +eha)ior

>et ser)i!e to !stomers dri)e -or !ompan-=s str!tre If -o implement the right s-stems to spport people in their $ork, that $ill help

!reate the !limate of alignment= -o need for s!!ess Managers mst gi)e emplo-ees $hat the- need to s!!eed or, in some !ases,

get ot of the $a- Team$ork is essential to -or s!!ess A prod!ti)e emplo-ee is a happ- emplo-ee 7 not the other $a- arond Stri)e for a good fit +et$een the skills people ha)e & the e)er-da- 9o+s the- do ;emem+er, emplo-ees are people too #e$are the false indi!ators of s!!ess8 ;e!ognize that a +road & +alan!ed

approa!h is the onl- $a- to s!!essfll- sstain organizational performan!e


17/41

3efinition ";snen, '00'(

Organizational transformation seems toreBire that in order to make histor-, the

!hange agents mst also +reak histor-, that is,

the- mst dismantle the e/isting organizationalpra!ti!es, !ontrol str!tres, & !ltres that

ha)e generated prior s!!ess8J


18/41

Model of the effe!t of instittional phea)al on %nd order

organizational learning & organizational transformation"@e$man, %(

Instittional phea)al

m+eddedness

in old s-stem

A+sorpti)e !apa!it-

? ;ele)an!e of e/isting

resor!es & !apa+ilities? ;ele)an!e of

organizing templates? Clarit- of !ase


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Conditioned emergen!e* A dissipati)e str!tres

approa!h to transformation "Ma!intosh & Ma!lean, '001(

T-pes of strategi! !hange*Mintz+erg & estle- "'00%(* A!!ording to natre &

!onte/t $ithin the organization* /tent of ad9stment to the dire!tion & state of the organization

at the !on!eptal & !on!rete= le)els

S!ope of !hange in Bestion from in!remental throgh to all

en!ompassing

Green$ood & 2innings "'001(*A!!ording to pa!e*

)oltionar-

;e)oltionar-

A!!ording to dire!tion of end reslt* Con)ergent

;adi!al


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Comple/it- theor- of transformation"Ma!Intosh & Ma!>ean, '000(

#ased on the @o+el prize $inning $ork of Il-a Prigogine & !olleages,in the field of noneBili+rim thermod-nami!s*The $orld is regarded as d-nami! & !hara!terized +- s-stems in $hi!h normal

@e$tonian la$s ma- appl-, +t onl- in a minorit- of sitations8

)oltion of noneBili+rim s+s-stems is inflen!ed +- a !om+ination of a

!omple/ net$ork of nonlinear s-stem relationships & random de)elopments,$hi!h !om+ine to !reate ne$ s-stem !onfigrations in a $a- $hi!h is largel-

indeterminate

In e/treme !ases, the s-stem !an +e so far from eBili+rim that the str!tre

+reaks do$n & the s-stem +e!omes !haoti!

In s!h !ir!mstan!es, the operation of simple rles in !on9n!tion $ith

nonlinear pro!esses "i8e8 the a!tion of positi)e feed+a!k on small & possi+l-

random e)ents( !an gi)e rise to the emergen!e of ne$, Balitati)el- different,

str!tres8 < adaptation

These ne$l- formed str!tres signal the transformation of

organizations


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3issipati)e str!tres & organizations"Ma!Intosh & Ma!>ean, '000(

The organization mo)es ot of its normal eBili+rimstate, de either to internal or e/ternal fl!tationsN

In noneBili+rim !onditions, it e/perien!es a

+reakdo$n of its e/isting str!tres & some s-mmetr-+reaking e)ent $hi!h ser)es to irre)ersi+l- se)er the

possi+ilit- of re!onstr!ting them

There follo$s a period of e/perimentation dring

$hi!h the organization sele!ts a ne$ form of +eha)ior$hi!h aligns $ith its deep str!tre

Order emerges in the s-stem as the ne$ +eha)ior

resonates a!ross s+s-stem +ondaries


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Conditioned emergen!e "Ma!Intosh & Ma!>ean, '000( 2o$ organizations +eha)e in the fa!e of de!lining

performan!e*T-pi!al managerial response to the !risis 7 nerg- &

attention are fo!ssed on resol)ing the performan!e

pro+lem e8g8, ;aising the le)el of !ontrol 7 short termfi/

)oltionar- response to the !risis 7 Temporar- dip in

performan!e 7 nerg- & attention are fo!ssed on

sta+ilizing !rrent sitation, !tting losses, and!hanging the !ltre of the organization, or the notions

of the right manner of $orking in the organization "also

referred to as the !hange in the ar!het-pe or identit-

the organization assigns to itself( < Transformation


23/41

SeBen!e of stages that !hara!terize s!!essfl

!onditioned emergen!e programs "Ma!Intosh & Ma!>ean, '000( Stage '* Conditioning*Organization identifies the deep str!tre & rles $hi!h nderpin its !rrent

identit- "ar!het-pe(

3eep str!tre & rles are often +arel- arti!lated )ie$s on $hat the

organization represents & ho$ it operates

Organization formlates a ne$ deep str!tre $hi!h ma- in)ol)e some, +t notall, of the old rles alongside some ne$ ones8 The old rles $hi!h are re9e!ted are sall- defensi)e rotines $hi!h might impede an-

signifi!ant !hange & these are otla$ed +- !onsenss

The ne$ rles are t-pi!all- a mi/tre of the primar- rles "a+ot $hat shold +e done( &

se!ondar- rles "a+ot ho$ the rles themsel)es shold +e maintained & pdated

Creating far


24/41

SeBen!e of stages for s!!essfl !onditioned

emergen!e programs "Contd8( "Ma!Intosh & Ma!>ean, '000(

Stage D* Managing the feed+a!k pro!ess>ook for small signals !onsistent $ith the ne$ deep

str!tre agree to in Stage '8

Positi)e feed+a!k applied to these signals, pro)idesthe mltiplier effe!t $hi!h !ases the nonlinear

de)elopment of ne$ s-stems8


25/41

T-pes of !hange, degree of reBired s-stem !omple/it-,

edge of !haos, & emergen!e "3er)itsiotis, %D(


26/41

Challenges to !onditioned emergen!e in

organizational transformation "Ma!Intosh & Ma!>ean, '000( Management of deep str!tre

Management of insta+ilit-

Management of feed+a!k loops


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holeness pra/is of organizational

transformation">i & >in, %''(

Approa!hes* In)oltionar- transformation* This approa!h fo!sses on o+ser)a+le pro+lems, Bi!k

& short


28/41

holeness pra/is approa!h* 3-nami!s of organizational

pro+lems & possi+ilities ">i & >in, '000(Nature of

problems &possibilities

Type of

problems &possibilities

Ultimate

purpose to beachieved

Policies & programs

derived

Involutionarytransformation

Pro+lems asgi)en

;ea!ting todo$nstreampro+lems

Optimizingorganizationalpro+lem2olisti! & s-nergeti! poli!ies+- integrating interrelateds-stems for pro+lemresoltion & !reation of

possi+ilities


29/41

Go)ernan!e for transformation "3a$son, %':(

#oard & e/e!ti)e team in)ol)ement /ternal pro)o!ation

/pli!it re!ognition of risks not taking a!tion

A!!eptan!e of risk >eadership


30/41

>eadership for organizational transformation"Galante & Asif, %'5(

>eadership strateg- is defined Qas an

organization=s impli!it & e/pli!it !hoi!es a+ot

leadership !ltre, its +eliefs & pra!ti!es, & the

people s-stems needed to ensre s!!ess &realize the strategi! intent $hi!h in!ldes the

$hole organization8J "Pasmore, %'D, in Galante & Asif, %'5(


31/41

lements of leadership strateg- "Galante & Asif, %'5(

Strategi! dri)ers* Identif-ing strategi! leadership dri)ers oforganizational s!!ess

>eadership !ltre* Shaping a !ltre that pro)ides the

!onditions for indi)idals to perform*

3ependent leadership !ltres operate $ith the +elief that people inathorit- are responsi+le for leadership

Independent leadership !ltres operate $ith the +elief that leadership

emerges ot of indi)idal e/pertise & heroi! a!tion

Interdependent leadership !ltres operate $ith the +elief that

leadership is a !olle!ti)e a!ti)it- to the +enefit of the organization as a$hole

>eadership talent* Creating a strong & sstaina+le talent pipeline

Organizational design* )ol)ing the organizational design to +est

spport e/e!tion of the +siness strateg-


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3e)eloping leadership strateg- for

effi!ient organizational transition"Galante & Asif, %'5( Phase '* 3is!o)er-* .nderstanding & shaping the

reBired leadership !apa+ilit- reBired & defining

the leadership gap $ith the !rrent realit- Phase %* 3esigning a leadership strateg-* A

+leprint to ensre the pra!ti!al implementation of

the leadership strateg- $hi!h a!hie)es the desired

leadership !apa+ilities

Phase D* Implementing the leadership strateg-*

#oth !hange management "otside


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Shifting importan!e of managerial roles dring

organizational transformation "#elasen et al, '001(

The !ompeting )ales frame$ork


34/41

Shifting importan!e of managerial roles "Contd8("#elasen et al8, '001(

Role Responsibilities before thetransformation

Responsibilities after the transformation

P;O3.C; Maintains a high le)el of energ-in moti)ating othersN !reates highperforman!e e/pe!tations inothers, fo!sing on reslts

In moti)ating emplo-ees, !onsiders theirindi)idal differen!esN 3e)elops poli!ies &pro!edres $hi!h foster the moti)ation of allemplo-eesN .ses time & stressmanagement strategies to handle dela-s &

interrptionsN Helps lower-level managersdeal with the difficulties of their role

3I;CTO; Sets o+9e!ti)es for a!!omplishinggoalsN Assigns !lear prioritiesamong mltiple goalsN Sets goalsin a parti!ipati)e !onte/t

3efines role & e/pe!tations for emplo-eesNPresents goals to higher le)els for!onsiderationN 3elegates tasks toemplo-ees

COO;3I@ATO; ;eallo!ates resor!es toa!!ommodate ne!essar-!hanges in the $orkflo$

Coordinates units as well as individualemployees; Determines subordinatesassignments based on individual sills !abilities; "aes sure that space# supplies# !other needed materials are available

Items in itali!s are !onsidered less important after the transition, espe!iall- after do$nsizing


35/41


Role Responsibilities before thetransformation

Responsibilities after the transformation

MO@ITO; Sets p & maintains ne!essar-!ommni!ation !hannelsN 3isseminatesinformation regarding !hanges inpoli!ies & pro!edres

;elies on reports from othersN Anal-zesdetailed $ritten & )er+al reportsN O)ersees!omplian!e $ith pro!edresN Interpretsfinancial ! statistical reports; $rites technicalreports on unit performance

M@TO; Gi)es !redit to s+ordinates for their

$ork & ideasN Maintains an open,approa!ha+le & nderstanding attitdeto$ards s+ordinatesN n!oragesparti!ipation in professionalde)elopment a!ti)ities

Helps create policies ! procedures to help

employees e%periencing personal problems;Deals with the personal problems ofemployees; &dvises lower-level managers onhow to handle difficult employee situations

ACI>ITATO; osters a sense of team$ork among

emplo-eesN 2elps s+ordinates resol)e!onfli!tN orks to enhan!e emplo-eeparti!ipation & !ohesi)e $ork !limateNIn)ol)es s+ordinates in dis!ssionso)er $ork mattersN n!oragesparti!ipation in grop de!isionsNa!ilitates & leads meetings

orks to o+tain !onsenss a!ross fn!tional

areasN Helps create policies ! procedures toencourage employee participation



36/41


Role Responsibilities before the transformation Responsibilities after the

transformation

I@@OVATO; Comes p $ith ideas for impro)ing theorganizationN Sggests !hanges in $orkpro!esses & pro!edres to speriorsN Trnspro+lems into opportnitiesN Personall- helpsindi)idal emplo-ees ad9st to !hanges in the

organizationN n!orages !reati)it- amongemplo-eesN 2elps emplo-ees deal $itham+igit- & dela-N Assesses the potentialimpa!t of proposed !hangesN 2elpss+ordinates see the positi)e aspe!ts of ne$!hanges

2as a fair degree of inpt intoorganizational !hange de!isions

#;OK; #ilds !oalitions & net$orks among peersN@rtres !onta!ts $ith people e/ternal to theorganizationN Presents ideas to managers athigher le)elsN represents the nit to others inthe organizationN e/erts lateral & p$ardinflen!e in the organizationN ;epresents thenit to !lients & !stomers

Seeks to e/pand the resor!es of thedi)ision or $ork nitN Speaks at p+li!gatherings & hearingsN mphasizesimportant organizational )ales throgh!eremonies, !ele+rations, & other e)ents



37/41

3ri)ing !ltre transformation dring large s!ale

!hange "2e!kelman, .nger & Garofano, %'D( Signifi!an!e of organizational !ltre in large s!ale !hange &

transformation*Cltre as a primar- sor!e of resistan!e to !hange

Cltre as an important strategi! le)er

Giding prin!iples for a!hie)ing !ltral !hange*Cltre !hange takes pla!e more effe!ti)el- $hen $orked at three

le)els* Organization, team & indi)idal

Cltre !hange is a!!elerated +- !onne!ting indi)idal +eliefs to

organizational reslts* The #A; model

Cltre !hange reBires a planned & dis!iplined implementation!as!ade

Cltre !hange is a!!elerated +- sing a >eader led learning approa!h

Te!hnolog- shold +e le)eraged for !ommni!ations, measrement, &

reporting s!!esses to reinfor!e !ltral !hange


38/41

orking at three le)els for dri)ing

!ltral !hange "2e!kelman, .nger & Garofano, %'D(


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.sing the #A; Model to shape !ltre"2e!kelman, .nger & Garofano, %'D(


40/41

>eader led learning approa!h for !ltral

transformation "2e!kelman, .nger & Garofano, %'D(


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Organizational Transformation 3.pptx