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  • Organization Change

  • Processes for Planned Organization ChangeProcess ModelPlanned organization change requires a systematic process of movement from one condition to anotherUnfreezingProcess by which people become aware of the need for changeChangeMovement from the old way of doing things to a new wayRefreezingProcess of making new behaviors relatively permanent and resistant to further change

  • Process of Organizational Change

  • Processes for Planned Organization Change The Continuous Change Process ModelIncorporates the forces for change, a problem-solving process, a change agent, and transition managementTakes a top management perspectivePerceives forces and trends that indicate need for changeDetermines alternatives for change Selects the appropriate alternative

  • Continuous Change Process Model of Organization Change

  • Processes for Planned Organization Change The Continuous Change Process Model Change agent: a person responsible for managing a change effortAssists management with problem recognition/definitionCan be involved in generating/evaluating potential action plansCan be from inside or outside of the organizationImplements the changeMeasures, evaluates, controls the desired resultsTransition managementProcess of systematically planning, organizing, and implementing change

  • OD: Group and Individual Change

  • Resistance to ChangeThe Resistance to Change ParadoxOrganizations invite change when change offers competitive advantageOrganizations resist change when change threatens the organizations structure and control systemsOrganizations must balance stability (permanence) with the need to react to external shifts (change)Resistance can warn of the need to reexamine the need for change

  • Resistance to Change: Sources of Resistance to ChangeOrganizational SourcesOverdeterminationNarrow focus of changeGroup inertiaThreatened expertiseThreatened powerResource allocation changes

    Individual SourcesHabitSecurityEconomic factorsFear of the unknownLack of awarenessSocial factors

  • Managing Successful Organization Change and DevelopmentKeys to Managing Change in OrganizationsConsider international issuesTake a holistic viewStart smallSecure top management supportEncourage participation by those affected by the changeFoster open communicationReward those who contribute to change

  • Different Types of Planned ChangeMagnitude of ChangeIncrementalQuantumDegree of OrganizationOver organizedUnderorganizedDomestic vs. International Settings

  • Diagnosing Organizational Systems

    The key to effective diagnosis is Know what to look for at each organizational level Recognize how the levels affect each other

  • Organization-Level Diagnostic ModelInputsTechnology

    Strategy Structure

    HR Measurement Systems Systems

    GeneralEnvironment

    IndustryStructure

    Design ComponentsCultureOrganizationEffectivenessOutputs

  • Organization Environments and InputsEnvironmental TypesGeneral EnvironmentTask Environment and Industry StructureRate of Change and ComplexityEnacted EnvironmentEnvironmental DimensionsInformation UncertaintyResource Dependency

  • Organization Design ComponentsStrategythe way an organization uses its resources (human, economic, or technical) to gain and sustain a competitive advantageTechnologythe way an organization converts inputs into products and servicesStructurehow attention and resources are focused on task accomplishment

  • Organization Design ComponentsHuman Resource Systemsthe mechanisms for selecting, developing, appraising, and rewarding organization membersMeasurement Systemsmethods of gathering, assessing, and disseminating information on the activities of groups and individuals in organizations

  • Organization Design ComponentsOrganization CultureThe basic assumptions, values, and norms shared by organization membersRepresents both an outcome of organization design and a foundation or constraint to change

  • OutputsOrganization Performancee.g., profits, profitability, stock priceProductivitye.g., cost/employee, cost/unit, error rates, qualityStakeholder Satisfactione.g., market share, employee satisfaction, regulation compliance

  • Goal Clarity

    Task GroupStructure Functioning

    Group PerformanceComposition NormsGroup-Level Diagnostic ModelInputsDesign ComponentsOutputs

    OrganizationDesign

    GroupEffectiveness

  • Group-Level Design ComponentsGoal Clarityextent to which group understands its objectivesTask Structurethe way the groups work is designedTeam Functioningthe quality of group dynamics among membersGroup Compositionthe characteristics of group membersPerformance Normsthe unwritten rules that govern behavior

  • Group-Level OutputsProduct or Service QualityProductivitye.g., cost/member, number of decisionsTeam Cohesivenesse.g., commitment to group and organizationWork Satisfaction

  • Possible Effects of FeedbackFeedback occursWhat is the direction of the feedback?Is the energy createdby the feedback?NoChangeDo structures andprocesses turn energyinto action?ChangeFailure,frustration,no changeAnxiety,resistance,no changeEnergy to usedata to identify andsolve problemsEnergyto deny orfight dataNOYESNOYES

  • The Design of Effective InterventionsContingencies Related to the Change Situation

    Readiness for Change Capability to Change Cultural Context Capabilities of the Change Agent

  • The Design of Effective InterventionsContingencies Related to the Target of Change

    Strategic IssuesTechnology and structure issuesHuman resources issuesHuman process issues

  • Intervention OverviewHuman Process InterventionsTechnostructural InterventionsHuman Resources Management InterventionsStrategic Interventions

  • Human Process InterventionsProcess Consultation and Team BuildingThird-party Interventions (Conflict Resolution)Organization Confrontation MeetingIntergroup RelationshipsLarge-group Interventions

  • Technostructural InterventionsStructural DesignDownsizingReengineeringParallel StructuresHigh Involvement OrganizationsTotal Quality ManagementWork Design

  • Human Resources Management InterventionsGoal SettingPerformance AppraisalReward SystemsCoaching and MentoringCareer Planning and DevelopmentManagement and LeadershipManaging Work Force DiversityEmployee Wellness Programs

  • Strategic InterventionsTransformational ChangeIntegrated Strategic ChangeOrganization DesignCulture ChangeContinuous ChangeMergers and Acquisitions Alliances and Networks

  • Strategic InterventionsTransorganizational ChangeSelf-designing OrganizationsOrganization Learning and Knowledge ManagementBuilt to Change Organizations

  • Motivating ChangeCreating VisionDevelopingPolitical SupportManaging the TransitionSustaining MomentumEffectiveChangeManagementChange Management Activities

  • Motivating ChangeCreating Readiness for ChangeSensitize the organization to pressures for changeIdentify gaps between actual and desired statesConvey credible positive expectations for changeOvercoming Resistance to ChangeProvide empathy and supportCommunicateInvolve members in planning and decision making

  • Creating a VisionDiscover and Describe the Organizations Core IdeologyWhat are the core values that inform members what is important in the organization?What is the organizations core purpose or reason for being?Construct the Envisioned FutureWhat are the bold and valued outcomes?What is the desired future state?

  • Developing Political SupportAssess Change Agent PowerIdentify Key StakeholdersInfluence Stakeholders

  • Change as a Transition StateCurrentStateTransitionStateDesiredFuture State

  • Implementation and Evaluation FeedbackDiagnosisDesign andImplementationof InterventionsAlternativeInterventionsImplementation ofInterventionClarifyIntentionPlan forNext StepsImplementationFeedbackMeasures ofthe Intervention and ImmediateEffectsEvaluationFeedbackMeasure ofLong-termEffects

  • Institutionalization FrameworkOrganizationCharacteristicsInterventionCharacteristicsInstitutionalizationProcessesIndicators ofInstitutionalization

  • Organization CharacteristicsCongruenceExtent to which an intervention supports or aligns with the current environment, strategic orientation, or other changes taking placeStability of Environment and TechnologyUnionization

  • Intervention CharacteristicsGoal SpecificityProgrammabilityLevel of Change TargetInternal SupportSponsor

  • Institutionalization ProcessesSocializationCommitmentReward AllocationDiffusionSensing and Calibration

  • Indicators of InstitutionalizationKnowledgePerformancePreferencesNormative ConsensusValue Consensus

  • Contingencies Influencing Structural DesignEnvironmentOrganizationSizeTechnologyOrganizationGoalsWorldwideOperationsStructuralDesign

  • The Downsizing ProcessClarify the organizations strategyAssess downsizing options and make relevant choicesImplement the changesAddress the needs of survivors and those who leaveFollow through with growth plans

  • Downsizing Tactics

    Tactic

    Characteristics

    Examples

    Workforce Reduction

    Reduces headcount

    Short-term focus

    Fosters transition

    Attrition

    Retirement/buyout

    Layoffs

    Organization

    Redesign

    Changes organization

    Medium-term focus

    Fosters transition & transformation

    Eliminate functions, layers, products

    Merge units

    Redesign tasks

    Systemic