organization effectiveness and change
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ORGANIZATIONEFFECTIVENESS AND
CHANGE
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ORGANIZATIONAL
CULTURE & CHANGE
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CULTURE
What is Culture?
It is the set of important understanding that members ofcommunity share in common.
2 types of culture:-
SOCIETAL---Consists of patterned ways of thinking, feeling andreacting that are acquired by language and symbols that create adistinctiveness among human group.
ORGANIZATIONAL---The deeper level of basic assumptions andbeliefs that are shared by members of an organization, thatoperate unconsciously and define in a basic taken for grantedfashion an organization's view of its self and its environment.
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ORGANIZATIONAL CULTURE
An iceberg whereby the surface is based on a much deeper(and bigger) reality, yet this reality is usually unexamined.
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Goals
Strategy
Structure
Systems & procedures
Products & services
Financial resources
Management
Values, attitudes & beliefs
Leadership style & behaviour
Org. Culture & norms of behaviour
Power, politics & conflict
Informal groupings
Formalorganization
Informalorganization
THE ORGANIZATIONALICEBERG
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ORGANIZATIONAL CULTURE &CHANGE
organizational life is not as neat, tidy or predictable asformal elements of organization such as structure, strategy& technology may imply.
The culture and politics of many organizations constrain thedegree of change and transformation in which they cansuccessfully engage, even though such change may behighly desirable for meeting the challenges and demands ofthe wider environment.
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ORGANIZATIONAL
CHANGE
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ORGANIZATIONAL CHANGE
The illiterate of the 21st century will not be
those who cannot read or write, but thosewho cannot learn, unlearn, and relearn.
Alvin Toffler
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CHANGE
What is Change?
Change refers to any alternation which occurs in theoverall work environment of an organization.
Coping process of moving from a unsatisfactory present
state to a desired state. Change has following characteristics:
Change results from pressure forces internally & externally.
Whole organization is affected by the change in any part.
Change takes place in all parts of organization at varying rates ofspeed and degree of significance.
What is Planned Change?
Results from deliberate attempts by managers toimprove organizational operations.
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CHANGE-IMPORTANT FACTS
Change is the single most important factor in businesstoday:
every business is an ongoing source of change.
every professional discipline is a process of change. Every market force (customers, competitors, technology,
regulations, distribution channels, suppliers, etc.) createschange that forces our change in response.
Complex change is typically accepted if enough time is
allowed. Rapid change can occur if its a small adjustment.
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ORGANIZATIONAL CHANGE
What is Organizational Change?
Organizational change is in regard to organization-widechange, as opposed to smaller changes such as adding anew person, modifying a program, etc.
Also known as organizational transformation.
It designates a fundamental and radical reorientation inthe way the organization operates.
Example of organization-wide change include a changein mission, restructuring operations e.g. restructuring to
self-managed teams, layoffs, etc., new technologies,mergers, major collaborations, "rightsizing", newprograms such as Total Quality Management, re-engineering, etc.
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ORGANIZATIONAL CHANGE
Management of Organizational Change
Management of change is defined as a conscious andconcerted initiative by managers.
To watch over the behavior of uncontrollable forces, toassess their impact and influence of the controllableforces.
And to evolve appropriate strategies and actionprogrammes to maintain a dynamic equilibrium between
these 2 forces.
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ORGANIZATIONAL CHANGE
What is provokes Organizational Change?
Change should not be done for the sake of change; it'sa strategy to accomplish a goal.
Organizational change is provoked by major outsidedriving forces like substantial cuts in funding, addressingmajor new markets/clients, need for dramatic increasesin productivity/services, etc.
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ORGANIZATIONAL CHANGE
What is provokes Organizational Change?
Organization-wide change is undertaken to evolve to adifferent level in their life cycle, e.g., going from aturbulent, entrepreneurial organization to more stable
and planned development.
Example Transition to a new chief executive can provokeorganization-wide change when his or her new andunique personality pervades the entire organization.
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ORGANIZATIONAL CHANGE-IMPORTANT FACTS
Globalization of markets demands globalization ofbusinesses.
Change with times, or get left behind.
You will be hired to bring about change; not to justmaintain the status quo.
You will need to become a change agent.
Change will not stop, it will only go faster.
No matter how well planned, it will not be trouble free.
Each of us is accountable to making change acceptable.
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ARTICLE-A LETTER OFCOMPLAINT
List out the problems faced by thecustomer?
What changes has to be brought about bythe manager to ensure complete customersatisfaction?
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FORCES OF CHANGE
2 Types of Forces:
INTERNAL FORCES EXTERNAL FORCES
Human Resource Problems/Prospects Demographic Characteristics
Managerial Behavior/Decisions
Technological Advancements
Market Changes
Social & Political Pressures
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LEVELS OF CHANGE
3 Levels of Change:
LEVELS OF CHANGE
INDIVIDUAL LEVEL CHANGE Like change in job assignment, transfer
to new location etc.
GROUP LEVEL CHANGES Group work prominent in organizations.
Both Formal & Informal Groups
considered while implementing change
eg Trade Union.
ORGANIZATION LEVEL CHANGES These changes affect both Individual &Group and take place over long period
of time. Always taken by Top
Management. Eg. Reorganization of
Org. Structure, Shift in Organizations
Objective.
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TYPES OF CHANGE
4 Types of Change:
TYPES OF CHANGE
STRATEGIC CHANGE Change in the mission of the organization. Eg.
Acquisition of BA over US Airways.
STRUCTURAL
CHANGE
Shifts in the authority & responsibility distribution. Eg.
Decentralized Operations and Participative
Management Styles.
PROCESS ORIENTED
CHANGE
Relates to technological developments, information
processing, automation etc.
PEOPLE ORIENTED
CHANGE
Changes directed towards performance improvement,
group cohesion, loyalty etc.
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RESISTANCE TO CHANGE
Why do Organization resist change?
Group inertia Peer pressure, group norms.
Security.
Threat to established power relationships. Threat to established resource allocations.
Limited focus of change Change affects others in theorganization.
Poor communication.
Threat to expertise.
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RESISTANCE TO CHANGE
Is Resistance bad?????
Resistance is not all bad. Resistance is important as it:
forces management to check and recheck the proposals.
helps identify specific problem areas where change islikely to cause difficulty.
gives management information about the intensity ofemployee emotions on the issues.
provides a means of release of emotions. This causes
employees to think and talk more about the changes.
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RESISTANCE TO CHANGE
The causes of Resistance are as follows:-
Economic Factors:- It relates to basic economic needs ofworkers like life, job security and safety.
Psychological Factors:-These are sense of pride,achievement, self fulfillment etc.
Social Factors:- These are needs like friendship,
belongingness etc. The informal groups created in theorganizations lead to resistance for change.
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ORGANIZATIONAL CHANGE-
CHANGE AGENTS
People who drive change are change agents.
We are all agents of change:
Change-agent skills are as important to our successas our professional discipline skills.
The purpose of our jobs is to change what is possible,as companies and as individuals, by adding valueevery day.
Can be consultant or trainer, external or internal. No ideal change agent, particular requirement relate to
actual situation in organization.
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CHANGE AGENTSLEVELS OFLEADERSHIP SKILLS
Jim Canterucci defines Change Leaders on 5 levels asfollows:
Level I :- Small change initiatives with clear direction
Accepts the need for change, communicates and defendsthe need for change throughout the organization, createsan open and receptive environment
Level II:- Change projects at local level
Defines and initiates change, identifies leverage points forchange in processes and work habits
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CHANGE AGENTSLEVELS OFLEADERSHIP SKILLS
Level III:- Transformation of a central vision into changeinitiatives and organization-wide communication
Leads change, translate the vision of the organization intothe context of a specific change initiative and bring this
message to the entire organization, redirects approaches inthe face of new opportunities.
Level IV:- Generates change with a high degree oftransformation
Manages complex change, understands the culturaldynamics of the current state of an organization, creates astrategic practical course, balancing the current reality withthe need for rapid adoption of the desired future reality
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CHANGE AGENTSLEVELS OFLEADERSHIP SKILLS
Level V:- Ability to revolutionize organizations
Champions change, challenges the status quo bycomparing it to an ideal or a vision of change, causes crisisin order to support dramatic actions and change efforts,
transforms the organization
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CHANGE AGENTSCHARACTERSTICS
As per Havelock & Shaskin following factors:
HOMOPHILY
EMPATHY
LINKAGE
PROXIMITY STRUCTURING
CAPACITY
OPENNESS
REWARD
ENERGY SYNERGY
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CHANGE AGENTSCHARACTERSTICS
As per Havelock & Shaskin following factors:
HOMOPHILY Degree of closeness and similarity between the change agent and the client.
EMPATHY Involves understanding of feelings and emotions and thoughts.
LINKAGE Degree of collaboration between the change agent and the client.
PROXIMITY Easy access to each other.
STRUCTURING
Involves proper and clear planning of all activities that are related tochange.
CAPACITY Refers to the org. capacity to provide the resources that are need for
successful org. development effort and implementation.
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CHANGE AGENTSCHARACTERSTICS
OPENNESS
Refers to the conceptual environment which is conducive tothe development of respect and understanding for each othersideas, needs and feelings.
REWARD
Rewards should in both long and short run.
Greater potential for rewards, the more determined the effortrequired for change.
ENERGY
Amount of effort put into the change process. Involves both
physical & psychological energy.
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CHANGE AGENTS-SERVICESPROVIDED
Activities in which change agents are involved:-
Provides specialized perspectives, skills & knowledge to theorganization.
Helps with problem solving procedures: identifying, defining, clarifying
the problems, assessing alternatives etc.
Provide training and skill building to employees.
Assist in Team Learning skills.
Develop and conduct surveys within the org.
Imparting skills once the external leaves.
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Organization Effectiveness and ChangePresentation
MANAGING COMPLEXCHANGE
Vision
Skill
Incentive
Resources
Action Plan
All elements areneeded to effectivelymanage complexchange
Without vision-confusion.
Without skill-anxiety
Without incentive-gradual change
Without resources-frustration
Without action plan-false starts
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ORGANIZATIONAL CHANGEPRESENTATION
LEWINS FORCE FIELDTHEORY OF CHANGE
organizational change occurs when:
forces for change strengthen
restraining forces lessen, or
both processes occur simultaneously
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ORGANIZATIONAL CHANGEPRESENTATION
LEWINS FORCE FIELDTHEORY OF CHANGE
Steps in Force Field Analysis:
1. Define problem (current state) andtarget situation (target state).
2. List forces working for and against thedesired changes.
3. Rate the strength of each force.
4. Draw diagram (length of line denotesstrength of the force).
5. Indicate how important each force is.
6. How to strengthen each importantsupporting force?
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ORGANIZATIONAL CHANGEPRESENTATION
LEWINS FORCE FIELDTHEORY OF CHANGE
Steps in Force Field Analysis:
7. How to weaken each important resistingforce?
8. Identify resources needed.9. Make action plan: timings, milestones,
responsibilities.
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LEWINS THREE-STEP CHANGE
MODEL
Unfreezing
Movement orTransitionRefreezing
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LEWINS MODEL-UNFREEZING
Help people accept that change is needed because theexisting situation is not adequate.
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LEWINS MODEL- MOVEMENT ORTRANSITION
Involves rearranging of current work norms andrelationships to meet new needs.
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LEWINS MODEL-REFREEZING
Reinforces the changes made so that the new ways ofbehaving become stabilized.
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ORGANIZATIONAL CHANGEPRESENTATION
PRE-REQUISITES FOREFFECTIVE CHANGE-
FLEXIBILITY The ability to adapt or
deal with ambiguity
The ability to
successfully handleseveral things at onetime
The ability toprioritize, delegate
and provide clearcommunication
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ORGANIZATIONAL CHANGEPRESENTATION
PRE-REQUISITES FOREFFECTIVE CHANGE-FOCUS
The ability to grasp &share vision and long& short term goals.
The ability to celebrategains made.
The ability to focus on
solutions-not reasonsfor failure
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ORGANIZATIONAL CHANGEPRESENTATION
PRE-REQUISITES FOREFFECTIVE CHANGE-
ATTITUDE The ability to be a
stabilizing force.
The ability to takecare of oneself.
The degree of beliefthat change breedscreativity.
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ORGANIZATIONAL CHANGEPRESENTATION
PHASES OFORGANIZATIONAL CHANGE
Ending
Transition
Beginning
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ORGANIZATIONAL CHANGEPRESENTATION
PHASES OFORGANIZATIONAL CHANGE-
ENDING The goal of this phase
is to understand thechange process and
the steps needed tomove through it.
Dealing with grief andloss issues
Normalizing change
Communication in theending phase
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ORGANIZATIONAL CHANGEPRESENTATION
PHASES OFORGANIZATIONAL CHANGE-
TRANSITION The goal of this phase
is to regain theexpected decreases inproductivity.
Identifying priorities
Identifying &minimizing resistanceto change.
Identifying personal
strengths, needs andresources.
Communication in thetransition phase.
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ORGANIZATIONAL CHANGEPRESENTATION
PHASES OFORGANIZATIONAL CHANGE-
BEGINNING The goal of this phase
is implementing thenew.
Flexibility, focus &attitude.
Stress managementfor change.
Communication in the
beginning phase. Developing an action
plan.
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ARTICLE-A LETTER OFCOMPLAINT
List out the problems faced by thecustomer?
What changes has to be brought about bythe manager to ensure complete customersatisfaction?
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ARTICLE-MANAGEMENT OF
CHANGE
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ORGANIZATIONDEVELOPMENT
Organizational Development or O.D. is a planned effort
initiated by process specialists to help an organization developits diagnostic skills, coping capabilities, linkage strategies
and a culture of mutuality.
A planned effort examining, thinking and planning
Initiated by process specialists-Mgr is the key element tosuccess.
Diagnostic skills- data collection-overtime
Coping capabilities-problem-solving, confront and cope
Linking strategies-Indl.& Organl. Goals
Culture of Mutuality-OCTAPACE-fostering of certain valuesand open and proactive systems viz. openness,confrontation, trust, authenticity, pro-activeness, autonomy,collaboration and experimentation.
O G O
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ORGANIZATIONDEVELOPMENT
Definition of O.D.by Edgar Schein
An organization is the planned coordination of the activities of anumber of people for the achievement of some common
explicit purpose or goals through the division of labour andfunction, and through a hierarchy of authority and
responsibility. Development is the act, process, result or state of being
developed-which in turn means to advance, to promote thegrowth of, to evolve the possibility of, to further, to improveor to enhance something.
Two elements stand out viz.(a)Development may be an act, process or an end state(b)Development means bettering something
Thus, O. D. is the act, process or result of furthering,advancing, or promoting the growth of an organization.
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ORGANIZATION DEVELOPMENT-CHARACTERSTICS
The O. D. Approach to Change treats the organization as asystem. A system is an orderly group of logically relatedparts, principles and beliefs. Alternatively, it is a groupingor arrangement that relate or interact with each other insuch a way as to form a whole. Characteristics as follows:-
Total view not a limited view
Relationship between the Organization and the environmentand the internal dynamics of the Organization
Continuous Improvement--Teams-temporary, semi-permanent
and permanent Inter-personal Communication
Individuals- self awareness and self acceptance-developingskills, knowledge and ability of individuals
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ORGANIZATION DEVELOPMENT-OBJECTIVES
The objectives are as follows:-
Individual and group development.
Development of organization culture and processes by
constant interaction between members irrespective of levels ofhierarchy.
Inculcating team spirit.
Empowerment of social side of employees.
Focus of value development.
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ORGANIZATION DEVELOPMENT-OBJECTIVES
6. Transformation and achievement of competitive edge of theorganization.
7. Achieve organization growth by total human inputs by way ofresearch and development, innovations, creativity and exploitinghuman talent.
8. Behaviour modification and self managed team as the basic unitof an organization.
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ORGANIZATION DEVELOPMENT-PROCESS
The O. D. process consists of three components-diagnosis,action and program management.
Diagnosis Component consists of continuous collection ofdata about the total system, its sub-units its processes, andits culture.
Action component consists of all the activities andinterventions designed to improve the organizationsfunctioning. Includes following:-
PLANNING STRATEGY FOR CHANGE
COLLECTION OF DATA ACTION PLANNING AND PROBLEM SOLVING
Program management component is designed to ensuresuccess of the program.
O G O O
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ORGANIZATION DEVELOPMENT-PROCESS
DIAGNOSIS
Starts with the identification of the problem.
Analysis of various symptoms-both overt and covertmay help in identifying the problem.
Provide its causes and determine the nature of futureaction needed.
Bad Decisions might be taken beacuse manager maynot completely know the nature and depth of theproblem.
Hence adequate information should be gathered toidentify the problem.
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ORGANIZATION DEVELOPMENT-PROCESS
PLANNING STRATEGY FOR CHANGE
Employment of management consultants to suggeststrategies.
He/She should analyze the need for change and plan
strategies of change. Action Plans are developed to correct problems, seize
opportunities and maintains areas of strengths .These areinterventions specifically to address issues at the individual,group, inter-group, or organizational levels.
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ORGANIZATION DEVELOPMENT-PROCESS
COLLECTION OF DATA
Surveys performed to determine organizational climate andbehavioral problems.
He/She should analyze the need for change and planstrategies of change.
Action Plans are developed to correct problems, seizeopportunities and maintains areas of strengths .These areinterventions specifically to address issues at the individual,group, inter-group, or organizational levels.
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ORGANIZATION DEVELOPMENT-PROCESS
ACTION PLANNING AND PROBLEM SOLVING
Work Groups are assigned to review the data collected, totalk among themselves areas of disagreement and toestablish priorities to change.
Groups use data to develop specific recommendation tochange.
Discussions focuss on actual problems in their organization.
Plans are specific with fixed responsibility and deadline datespecified.
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ORGANIZATION DEVELOPMENT-PROCESS
EVALUATION
OD is a long process, hence requirement of carefullymonitoring the program and getting feedback on the same isrequired.
This process helps in introducing modifications, wherevernecessary.
Use of critique sessions, systematic appraisal of changeeffforts and comparison pre and post training behavioralpattern is effective for appraisal of OD Program.
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ORGANIZATION DEVELOPMENT-ADVANTAGES
Following are the benefits/advantages of OD:-
Opportunity for People to work as human rather than mereresource in production process.
Equal Opportunities provided to members to develop fullpotential.
Effective Organization in meeting its goal.
Creates Environment for exciting and challenging work.
Creates a sense of belongingness in employees towards work,organization and work environment.
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ORGANIZATION
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ORGANIZATIONTRANSFORMATION
5 STEPS TO SUCCESSFUL ORGANIZATIONALTRANSFORMATION
1. Establishing a sense of urgency
-Examining market and competitive realities
-Identifying and discussing crises,potential crises, or major
opportunities
2. Forming a powerful guiding coalition
-Assembling a group with enough power to lead the changeeffort
-Encouraging the group to work together as a team
3. Creating a vision-Creating a vision to help direct the change effort
-Developing strategies for achieving the vision
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ORGANIZATIONTRANSFORMATION
5 STEPS TO SUCCESSFUL ORGANIZATIONALTRANSFORMATION
4. Communicating the vision
-Using every vehicle possible to communicate the new visionand strategies
-Teaching new behaviors by the example of the new coalition.
5. Empowering others to act on the vision
-Getting rid of obstacles to change
-Changing systems or structures that seriously undermine the
vision-Encouraging risk taking and non-traditional ideas, activities,and actions
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ORGANIZATION DEVELOPMENT-INTERVENTIONS
OD interventions are sets of structured activities in whichselected organizational units engage in a series of taskswhich will lead to organizational improvement.
Interventions are actions taken to produce desiredchanges.
They are building blocks which are the planned activitiesdesigned to improve organizations functioning throughparticipation of members.
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ORGANIZATION DEVELOPMENT-INTERVENTIONS
There are one of four reasons why there is need for ODinterventions:
The organization has a problem- some thing is broken, andcorrective actions need to be taken i.e. it needs to be fixed.
Alignment activities- interventions- are developed to getthings back in tune. Features of the organization are out ofalignment, parts of the organization are working at cross-purposes.
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ORGANIZATION DEVELOPMENT-INTERVENTIONS
There are one of four reasons why there is need for ODinterventions:
Enabling actions- interventions- are developed to seize theopportunity .The organization sees an unrealized opportunity:
something it wants is beyond its reach.
New vision- interventions- are developed to make the newvision a reality .The vision guiding the organizationalchanges: yesterdays vision is no longer good enough. Actions
to build the necessary structures, processes, and culture tosupport the.
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ORGANIZATION DEVELOPMENT-INTERVENTIONS
Generally OD interventions follow a well-planned overallOD strategy and get revealed as events unfold and areanswers to the following questions:
What are the change/improvement goals of the program?
What parts of the organization are most receptive to the ODprogram?
What are the key leverage points( individual or group) in theorganization
What are the most pressing problems in the client
organization? What resources are available for the program in terms of
client time and energy and internal and external facilitators?
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ORGANIZATIONAL CLIMATE
Organizational climate is the process of quantifying theculture of an organization. It is a set of properties ofthe work environment, perceived directly or indirectlyby the employees, that is assumed to be a major force
in influencing employee behavior.
In other words, Organizational climate is often definedas the recurring patterns of behavior, attitudes andfeelings that characterize life in the organization.
The organizational climate facilitates the firm to identify
the deficiencies in connection with differentorganizational factors, such as organizational structure,employee compensation system, communication level,physical atmosphere, organizational culture, etc.
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ORGANIZATIONAL CLIMATE
As per Moran and Volkwein (1992), Organizational Climate isdefined as "a relatively enduring characteristic of anorganization which distinguishes it from other organization,hence,
(a) embodies members' collective perceptions about their
organization with respect to such dimensions as autonomy,trust, cohesiveness, support, recognition, innovation andfairness;(b) produced by member interaction;(c) serves as a basis for interpreting the situation;(d) reflects the prevalent norms and attitudes of the
organization's culture; and(e) acts as a source of influence for shaping behavior."
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ORGANIZATIONAL CLIMATE
FEATURES OF ORGANIZATIONAL CLIMATE
GENERAL PERCEPTION
Org. Climate is a general express of what the org. is.
It represents the summary perception which peoplehave about an organization.
DISTINCT IDENTITY
It reflects how an organization is different from otherorganizations.
Gives distinct identity to the organization.
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ORGANIZATIONAL CLIMATE
FEATURES OF ORGANIZATIONAL CLIMATE
ENDURING QUALITY
Built up over a period of time.
Represents a relatively enduring quality of internal
environment that is experienced by the organizationalmembers.
MULTI-DIMENTIONAL CONCEPT
Several Dimensions such as Individual Autonomy,Authority, Structure, Leadership Style, Pattern of
communication etc.
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ORGANIZATIONAL CLIMATE
COMPONENTS OF ORGANIZATIONAL CLIMATE
MEMBERS CONCERN
INTERPERSONAL RELATIONSHIPS
DEGREE OF CONTROL
INDIVIDUAL FREEDOM TYPE OF STRUCTURE
MANAGEMENT ORIENTATION STYLE
REWARD SYSTEM
RISK TAKING
CONFLICT MANAGEMENT
DEGREE OF TRUST
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ORGANIZATIONAL CLIMATE
MEMBERS CONCERN
Orientation of an org. is the main concern of itsmembers as its important determinant of the culture.
Eg Oriented towards Performance Excellence thenclimate is characterised by Achievement.
INTERPERSONAL RELATIONSHIPS
Reflected by Informal Groupings.
DEGREE OF CONTROL
Either rigid or flexible.
For eg. Rigid then Impersonal or BureaucraticAtmosphere.
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ORGANIZATIONAL CLIMATE
INDIVIDUAL FREEDOM
Sufficient freedom or autonomy to work and exerciseauthority result efficiency in operations
TYPE OF STRUCTURE
Clarity of authority and responsibility. Serves as the basis of Inter personal relations
between superiors and subordinates.
Centralisation and Decentralisation of Work.
MANAGEMENT ORIENTATION STYLE
Style of Managers-Task Oriented or Relations Oriented.
Autocratic-Task Oriented.
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ORGANIZATIONAL CLIMATE
REWARD SYSTEM
System of rewards and punishments is an importantconcept.
Rewards based on merit and productivity lead toatmosphere of competition amongst the employees.
RISK TAKING
Important to promote atmosphere where innovativeideas are promoted.
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ORGANIZATIONAL CLIMATE
CONFLICT MANAGEMENT
Cooperative Atmosphere, conflicts to be resolved inhealthy manner.
DEGREE OF TRUST
Important for maintenance of peace in theorganization.
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ORGANIZATIONAL CLIMATE
FACTORS INFLUENCING ORGANIZATIONAL CLIMATE
Organizational Context
Highly favorable climate when the existing organizationaltechniques are such that workers' objectives are absolutelyharmonized to the principles of the company.
Structure
It is the framework that establishes formal relationships anddefines power as well as functional responsibility.
Process
Communication, decision making and control are some of thesignificant procedures through which the organization carriesout its goals.
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ORGANIZATIONAL CLIMATE
FACTORS INFLUENCING ORGANIZATIONAL CLIMATE
Physical Environment
The external conditions of environment, the size and locationof the building in which the staff works, the size of the town,
climate conditions, noise in the work place, etc., affect theorganizational climate.
System Values & Norms:
Every firm has apparent and fairly evident formal valuesystem where certain types of behavior are rewarded as wellas motivated, and certain kinds of behaviour compels a personto formal sanctions.
O G O C
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ORGANIZATIONAL CLIMATE
Motivational Analysis of Organizational-Climate(MAO-C)
It is an instrument that assess motivational climate of anorganization based on the six motives.
The profile includes six scores on six motives. The two highestscores are generally used to interpret the climate: the highestscore shows the dominant climate and the next highest thesecondary climate. The combination of these two motives,
thus, characterizes the organizational climate.
Generally, there are six different kinds of dominant climatecharacterized by different motives.
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The six motives characterizing dominant organizationalclimates are listed in the table given below: -
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ORGANIZATIONAL CLIMATE
TECHNIQUES FOR IMPROVING ORGANIZATIONALCLIMATE
OPEN COMMUNICATION
2 way communication to be promoted.
CONCERN FOR PEOPLE
Mgt to work for the improvement of workingconditions.
Should be interested in Human ResourceDevelopment.
PARTICIPATIVE DECISION MAKING
Involvement of Employees in goal setting and takingdecisions.
Improve sense of commitment and enhances loyalty.
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ORGANIZATIONAL CLIMATE
TECHNIQUES FOR IMPROVING ORGANIZATIONALCLIMATE
CHANGE IN POLICIES
Mgt can change climate by modifying policies,procedures and rules
TECHNOLOGICAL CHANGE
Tech Changes will improve working conditions ofemployees, the change therefore will be easilyacceptable.
O G O C
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ORGANIZATIONAL CULTURE
What is Culture ? The attitude, traits and behavioral patterns which govern the way an
individual interacts with others is termed as culture. Culture issomething which one inherits from his ancestors and it helps indistinguishing one individual from the other.
What is Organization Culture ? Organization culture refers to the beliefs and principles of a particular
organization. The culture followed by the organization has a deepimpact on the employees and their relationship amongst themselves.
Every organization has a unique culture making it different from theother and giving it a sense of direction. It is essential for theemployees to understand the culture of their workplace to adjust well.
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ORGANIZATIONAL CULTURE
Types of Organizational Culture
Strong vs Weak culture
organizational culture can be labelled as strong or weak basedon sacredness of the core values among organizational
members and the degree of commitment the members have tothese core values.
The higher the sacredness and commitment, the stronger theculture increases the possibility of behaviour consistencyamongst its members, while a weak culture opens avenues for
each one of the members showing concerns unique tothemselves.
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ORGANIZATIONAL CULTURE
Types of Organizational Culture Soft vs Hard Culture
Soft work culture can emerge in an organization where theorganization pursues multiple and conflicting goals. In a softculture the employees choose to pursue a few objectives which
serve personal or sectional interests. Eg Indian PSUs wherethe management feels constrained to take action againstemployees to maintain high productivity.
The culture is welfare oriented; people are held accountablefor their mistakes but are not rewarded for good performance.
Consequently, the employees consider work to be lessimportant than personal and social obligations.
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ORGANIZATIONAL CULTURE
Types of Organizational Culture Formal vs Informal culture :
The work culture of an organization, to a large extent, isinfluenced by the formal components of organizational culture.
Roles, responsibilities, accountability, rules and regulations
are components of formal culture. They set the expectationsthat the organization has from every member and indicatesthe consequences if these expectations are not fulfilled
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ORGANIZATIONAL CULTURE
Myths about Organizational Culture
Culture is same as groupthink
Groupthink refers to group members hiding any differences in howthey feel and think and behave in a certain way. The phenomenon
of groupthink is mostly used in a face to face situation whendealing with small groups.
Culture, on the other hand, is a much larger phenomenoncharacterised by historical myths, symbols, beliefs, and artifacts.
Culture is same as organization
Culture is a result of sustained interaction among people in
organizations and exists commonly in thoughts, feelings, andbehaviour of people.
organizations on the other hand, consist of a set of expectationsand a system of reward and punishment substained by rules,regulations, and norms of behaviour.
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ORGANIZATIONAL CULTURE
Myths about Organizational Culture
Culture is a social structure
Social structures in various collectives exhibit tangible and
specific ways in which people relate to one another overtly.However, culture operates on a system of unseen, abstract,and emotionally loaded forms which guide organizationalmembers to deal with their physical and social needs.
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ORGANIZATIONAL CULTURE
Myths about Organizational Culture Organizational culture is same as organizational climate
Organizational culture is a macro phenomenon which refersto the patterns of beliefs, assumptions, values, andbehaviors reflecting commonality in people working
together whereas Organizational climate is a microphenomenon and reflects how employees in anorganization feel about the characteristics and quality ofculture like morale, goodwill, employee relations at theorganizational, department or unit level.
It refers to the psychological environment in whichbehaviour of organizational members occurs. It ispersistent set of perceptions held by organizationalmembers.
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ORGANIZATIONAL CULTURE
Levels of Organizational Culture
Level One
Organizational culture observed in the form of physicalobjects, technology and other visible forms of behavior like
ceremonies and rituals. Though visible but at superficial level.
Level Two
Greater awareness and internalization of cultural values.
Tried and tested way of solving problems. If the group issuccessful there will be shared perception of that success,leading to cognitive changes turning perception into valuesand beliefs.
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ORGANIZATIONAL CULTURE
Levels of Organizational Culture
Level Three
Represents a process of conversion. When the grouprepeatedly observes that the method that was tried earlier
works most of the time, it becomes the preferred solution andgets converted into underlying assumptions or dominant valueorientation.
The conversion process has both advantages. The advantagesare that the dominant value orientation guides behavior,however at the same time it may influence objective and
rational thinking.
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ORGANIZATIONAL CULTURE
Level 1-
Artifacts,
Technology, Visible
and Audible
Level 2- Value
in Physical,
Social
Environment
Level 3-
Assumptions
about Human
Nature,
Relationships
and Behavior
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ORGANIZATIONAL CULTURE
Levels of Organizational Culture
Level Three
Represents a process of conversion. When the grouprepeatedly observes that the method that was tried earlier
works most of the time, it becomes the preferred solution andgets converted into underlying assumptions or dominant valueorientation.
The conversion process has both advantages. The advantagesare that the dominant value orientation guides behavior,however at the same time it may influence objective and
rational thinking.
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ORGANIZATIONAL CULTURE
Features of Organizational Culture Acceptance and appreciation for diversity.
Regard for and fair treatment of each employee as well asrespect for each employees contribution to the company.
Employee pride and enthusiasm for the organization and thework performed.
Equal opportunity for each employee to realize their full
potential within the company.
Strong communication with all employees regarding policiesand company issues
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ORGANIZATIONAL CULTURE
Features of Organizational Culture Strong company leaders with a strong sense of direction and
purpose.
Ability to compete in industry innovation and customer service,
as well as price.
Lower than average turnover rates (perpetuated by a healthyculture).
Investment in learning, training, and employee knowledge.
SOCIALISATION: FAMILIARISATION
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WITH ORGANIZATIONAL CULTURE
MEANING It is the process of indoctrinating the new employees into the
organization culture.
The org. takes steps to get the new entrants adapt to the
existing culture.
It socializes the new employees and moulds them to accept itsstandards and norms.
The process helps employees to be able to understand thebasic values, norms and customs for organizational roles.
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WITH ORGANIZATIONAL CULTURE
MEANING Those who donot adjust to the customs are labelled as
nonconformists or rebels.
Functions
Uniformity of Behaviour Reduces Conflicts
Reduces Ambiguity.
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SOCIALISATION: PROCESS
Unit 2, Lecture 1: Organizational
Socialization Concepts
Outcomes
Pre-arrival Encounter Metamorphosis
Productivity
Commitment
Turnover
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SOCIALISATION: PROCESS
PRE-ARRIVAL STAGE
Learning Period occurs before a new worker joins theorganisation.
Selection of employees on the basis of judgment ofhis/her existing values, beliefs, attitudes andexpectations.
Candidate must be aware of the organization values andexpectation during the selection process in order tominimize the wrong selection.
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SOCIALISATION: PROCESS
ENCOUNTER STAGE
Stage occurs when employee joins the organization.
At this stage employee comes to know about the org.practically and may find divergence between his/herexpectations and those of the organisation.
Here socialising with the employee plays an importantrole as this will help him deattach with the previousvalues, beliefs etc.
For this purpose Induction programs are conducted bythe organisation.
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SOCIALISATION: PROCESS
METAMORPHOSIS OR TRANSFORMATION STAGE
Real transformation takes place.
Employee adjusts to his work groups values and normsand becomes comfortable with the org and his job.
During and after the stage employee becomes acontented employee and likes the place of work andenvironment therein.
This increases commitment and productivity of hiscolleague.
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FORMATION MODEL
Unit 2, Lecture 1: Organizational
Socialization Concepts
New entrants:
Compliancecommitment
Rewards arecritical
Low emotional
investment
Early entrants:
Identificationcommitment
Motivated bysense of obligation
Feeling of
participation
Full members:
Internalizationcommitment
Fully accept goalsof the organization
Self merges with
organization
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EMPOWERMENT
EMPOWERMENT Refers to increasing the spiritual, political, social, or
economic strength of individuals and communities. In otherwords it is the process of supporting another person orpersons to discover and claim personal power.
WORK PLACE EMPOWERMENT
Means empowerment of employees in the work placeproviding them with opportunities to make their owndecisions with regards to their tasks.
One of the most important and popular managementconcepts.
Companies have been initiating empowerment programs inattempts to enhance employee motivation, increaseefficiency, and gain competitive advantages in theturbulent contemporary business environment.
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EMPOWERMENT
EMPOWERMENT IN MANAGEMENT The three keys that managers must use to empower their
employees are:
share information with everyone,
create autonomy through boundaries and
replace the old hierarchy with self-managed teams.
Empowerment is simply the effective use of a managersauthority, and subsequently, it is a productive way tomaximize all-around work efficiency.
Share information with everyone this is the first key toempowering people within an organization. Another strongpoint that this brings is trust; by allowing all of the employeesto view the company information, it helps to build that trustbetween employer and employee.
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EMPOWERMENT
EMPOWERMENT IN MANAGEMENT Create autonomy through boundaries this is the second key
to empowerment which also builds upon the previous one. Byopening communication through sharing information, it opensup the feedback about what is holding them back from beingempowered.
Replace the old hierarchy with self-managed teams this isthe third and final key to empowerment which ties them alltogether. By replacing the old hierarchy with self-managedteams, more responsibility is placed upon unique and self-
managed teams which create better communication andproductivity.
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EMPOWERMENT
NEED FOR EMPOWERMENT TO GAIN CUSTOMER SATISFACTION
CUSTOMIZATION
AIDS COMPLAINT MANAGEMENT
INCREASED PRODUCTIVITY & COST EFFICIENCY
EMPLOYEE SATISFACTION COMMITMENT & LOYALTY POTENT TOOL FOR INTERNAL MARKETING
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EMPOWERMENT
NEED FOR EMPOWERMENT
TO GAIN CUSTOMER SATISFACTION
Employee empowerment is the most imp tool toachieve customer satisfaction.
Employee empowerment helps not only in performingthe task or job efficiently as expected but it also helpsin satisfy the customer beyond what was expected orspecified.
Eg. Disney, MC Donalds.
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EMPOWERMENT
NEED FOR EMPOWERMENT
CUSTOMIZATION
Customer contact employees have a high degree ofpersonal contact with customers, it gives them
opportunity to identify their needs and requirementsclosely and offer products, services or solutions thatare just right for customers.
Helps in cultivating long term relations.
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EMPOWERMENT
NEED FOR EMPOWERMENT AIDS COMPLAINT MANAGEMENT
Handling of problems, issues, complaints etc on thespot.
Empowerment gives employee to take decisions on the
spot and aiming at customer satisfaction. Eg.AT&T Universal Card Services.
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EMPOWERMENT
NEED FOR EMPOWERMENT
INCREASED PRODUCTIVITY & COST EFFICIENCY
Employee satisfaction through empowerment.
It in turn leads to organizational effectiveness in terms
of productivity and efficiency. Eg. GEs Financial Service Operation
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EMPOWERMENT
NEED FOR EMPOWERMENT EMPLOYEE SATISFACTION COMMITMENT & LOYALTY
Human Nature to respond favourably when givenrespect, attention & recognition.
Empowerment provide all of the above and inturn
improves confidence and self esteem of the employees. Empowerment fills the feeling of ownership in
employees.
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EMPOWERMENT
NEED FOR EMPOWERMENT POTENT TOOL FOR INTERNAL MARKETING
Internal Marketing works on a simple concept thaysatisfies employee can satisfy customers moreeffectively and efficiently.
Hence both should be given equal importance. Empowerment creates compatibilty between
organisational objectives and individual satisfaction.
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EMPOWERMENT PROCESS
Phase- I Studying the work environment of theemployees.
Phase- II Redefining tasks and reallocating resources.
Phase III Focusing on the psychological and
motivational needs of employees in empowered position.
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EMPOWERMENT PROCESS
Phase- I Studying the work environment of theemployees.
Several objectives of empowerment like improving the qualityof service encounters, increasing efficiency and productivity,etc.
But utmost importance is to study the work environment,where employees work. Hence it is important to consider thefollowing:
present level of employee- skills, confidence, andenthusiasm towards job etc;
financial and physical resources of the organization;
present level of decision making authority with customercontact employees etc.; and
Relationship between frontline employees and next,organizational hierarchy.
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EMPOWERMENT PROCESS
Phase- I Studying the work environment of theemployees.
Such analysis framework that helps management design theempowering process for employees, so that the ultimateobjectives of empowering are effectively met.
Biswajeet Pattanayak has proposed the following guidelines forempowerment process.
Understand why the organization is making the change andwhat it wants to achieve?
Select strong leaders to head the change
Involve people in planning how to introduce empowerment
Create transition project teams to test and co-ordinateefforts and communicate results
Provide training in new skills and behaviors
Acknowledge and reward achievements
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EMPOWERMENT PROCESS
Phase-II: Redefining tasks and reallocating resources: Every organization will have its own concept about
empowerment.
No specified process which is universally applied, every
organization has to design the empowerment on individualbasis on the analysis of management in Phase-I.
Includes number of activities such as information sharing,redesigning communication system, job enrichment, allocatingresources or providing decision-making authority.
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EMPOWERMENT PROCESS
Phase-II: Redefining tasks and reallocating resources: Pailin has defined empowerment as having three major
dimensions
Influence over standards/participative decision-making: Employee input is essential for job design andsetting of appropriate performance standards, and it shouldbe taken seriously. Therefore, decision-making should beparticipative so that there is continuous feedback tomanagement on how to improve service delivery.
Resource availability: To be truly empowered, employeesmust be given adequate tools to do the job. They need
information about customers, about their organization, itsproducts, and its performance. They must have access tothe basic equipment and supplies necessary to servecustomers well. Full support from senior management.
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O OC SS
Phase-II: Redefining tasks and reallocating resources: Pailin has defined empowerment as having three major
dimensions
Decision-making authority: Empowered employees musthave the authority to make timely decisions. This affectscustomer satisfaction most directly.
Bowen and Lawler defined empowerment as the sharing of 4commodities with frontline employees:-
Information about organizations performance
Rewards linked to the organizations performance
Knowledge that, allows the workers to understand theorganizations performance and make contributions to it.
Power to make decisions that influence the organizationalperformance.
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Phase-III: Focussing on the psychological and motivationalneeds of employees.
Delegating- authority to employees may be necessary toempower them, but it doesnt guarantee that they will havethe will or incentive to use it.
The employment should be thought as a motivational construct- the act of giving a person a sense of power. Important topsychologically enable employees.
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ROLE OF MANAGERS FOR SUCCESSFUL EMPOWERMENT Zaharik & Kennigham have stated duties at the managerial level
for succesful empowerment:
Mentoring
In problem solving, decision-making, and teamwork skills.
Managers must foster a spirit of trust, treat workers withrespect, and listen carefully to their ideas.
Coaching
Coaching employees to do their work better.
Managers to recognize achievement and provideencouragement and psychological support.
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ROLE OF MANAGERS FOR SUCCESSFUL EMPOWERMENT Setting goals
Setting Goals and providing incentives throughcompensation and special awards, both monetary andotherwise. Managers must ensure that the goals of lowerlevel units are consistent with the goals of the Organizationas a whole.
Facilitating
Facilitating the work of the front line by making availableresources and training.
Managers job to help teams and individuals identify theirtraining needs.
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ROLE OF MANAGERS FOR SUCCESSFUL EMPOWERMENT Coordinating
The work of teams, helping to resolve problems within andbetween teams, allocating resources among them.
Monitoring and evaluating Both internal and external performance.
Producing consistent quality requires that diagnosticmeasures be regularly monitored.
Include surveys of employee satisfaction and employeeturnover & satisfaction.
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COSTS OF EMPOWERMENT The costs are as follows:-
Recruitment and Training Costs
Costs of Errors
Labour Costs
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MEANING Learning can be defined as a relatively permanent
change in behaviour or potential behaviour that results
from direct or indirect experience.
The changes brought about by learning result fromdirect or indirect experience.
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MEANING Learning means change. It is not simply a matter of adding
something. There is always reorganization or restructuring.There may be unlearning. Learning involves a change inbehavior; learning may make us respond differently.
In other words, Learning can be defined as a relatively
permanent change in behaviour or potential behaviour thatresults from direct or indirect experience.
The changes brought about by learning result from director indirect experience.
The learning organization is a representation of a desired
end. Organizational learning is a representation of thedynamic human processes required to increase thecognitive capacity of the total organization.
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LEVELS OF ORGANIZATIONAL LEARNING Individuality
At the individual level, managers need to do all they can tofacilitate the learning of new skills, norms, and values so thatindividuals can increase their own personal skills and abilitiesand thereby he builds the organizations core competence.
Group
At the group level, managers need to encourage learning bypromoting the use of various kinds of groups- such as self-managed groups or cross-functional teams- so that individualscan share or pool their skills and abilities to solve problems.
Groups allow for the creation of synergism- the idea that thewhole is much more than the sum of its parts which canenhance performance.
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LEVELS OF ORGANIZATIONAL LEARNING Organizational
At the organizational level, managers can promoteorganizational learning through the way they create anorganizations structure and culture. An Organizationsstructure can be designed to inhibit or facilitate inter-groupcommunication and problem solving, and this affects teammembers approach to learning.
Inter organizational
Organizational structure and culture not only established theshared vision or
framework of common assumptions that guide learning insidean organization, but also determine how learning takes placeat the inter-organizational level.
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ORGANIZATIONAL LEARNING: CURVE FOR CHANGE
It is the period of adaptation following change and there will be atemporary decline in effectiveness before a group reaches a newequilibrium.
Employees need time to understand and adapt in order to acceptchange, trying to integrate the change so likely to be lesseffective.
They have to get rid of old habits (unfreeze) and apply the newones (refreeze), problems to be worked out. Procedures areupset, and communication patterns are disrupted.
Conflicts develop about the change, and cooperation declines.Problems arise and time must be taken to resolve them.
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APPROACHES FOR CHANGING AN EQUILLIBRIUM
The approaches are as follows:-
1. Adding new supporting forces
2. Removing restraining forces
3. Increasing the strength of a supporting force4. Decreasing the strength of a restraining force
5. Converting a restraining force into a supporting force
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APPROACHES FOR CHANGING AN EQUILLIBRIUM The approaches are as follows:-
1. Adding new supporting forces
2. Removing restraining forces
3. Increasing the strength of a supporting force
4. Decreasing the strength of a restraining force5. Converting a restraining force into a supporting force
The techniques are as follows:-
Participation
Shared Rewards
Employee Security Communication
Stimulating Employee Readiness
Working with Unions
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STEPS FOR STARTING ORGANIZATIONAL LEARNING The process does not start by consultant or by merely having a
vision about org. future.
Organizational Leaning to start with an understanding of thepresent capabilities in both the performance and learningsystems. The Steps are as follows:-
Step 1: Knowledge of theory, Research, and Practice
No Universal method, there arethere are multiple theories butare not natural laws, they are simply explanations of socialphenomena that have to be continuously tested within the
organization.
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Step 2: Understanding or Organization Learning SystemsModel
The organizational learning system provides a dynamic socialbasis for judging organizational actions of both learning andperforming.
Step 3: Asking Questions for Inquiry
Using the Organizational Learning Systems Model as aframework offers four sets of introspective questions, one set
for each of the subsystems of learning actions. By asking thesequestions, the organization begins the process of generatingnew information concerning its learning system.
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Step 4: Convert the New Information into meaningfulknowledge
Information is not knowledge. If not converted into actionsthen the organization is not learning; it is simply movinginformation. The process of learning begins with understandingand assigningmeaning to the information through reflection.
Step 5: Analyze the inputs and Outputs of Each Subsystem
The systems nature of organizational learning requires us toexamine the inputs of each of the subsystems to ascertain thenature of the outputs. The analysis of the new information,
using the context of the organizational learning system, allowsthe organization to develop knowledge of its strength andchallenges.
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Step 6: Respond to the Challenges of Each subsystem Challenge I- Inappropriate Screening
Challenge II- Lack of Variety of Environmental InterfaceActions
Challenge III- Lack of Understanding of the Role ofManagemental Cognition and the Environmental InterfaceSubsystem
Challenge IV- Lack of Organizational Reflection
Challenge V- Resistance to the Dual nature of Knowledge
Challenge VI- Lack of Readiness
Challenge VII- Lack of Information Movement
Challenge VIII- Inappropriate Alignment of Roles
Challenge IX- Lack of Understandable Policy RegardingInformation
Challenge X- Lack of Alignment in Multiple OrganizationalMemory.
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Step 7: Take Action One of the questions that occurs in this reflection process is
Once we have the information and have identified thechallenges, where should we start from? Not all of thelearning subsystems are equal in their influence on theorganizational learning system. They all have necessary
functions; however, the guiding function of the meaning andmemory subsystem is the most influential and is also the mostremote and penetrable to change.
It is apparent through this cybernetic relationship, that thepattern maintenance function, as enacted through themeaning and memory subsystem, is a critical factor inunderstanding and possibly adjusting the organizationslearning capacity.
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MEANING Learning can be defined as a relatively permanent
change in behaviour or potential behaviour that results
from direct or indirect experience.
The changes brought about by learning result fromdirect or indirect experience.
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Creativity & innovation
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What is Creativity? Creativity is the generation of ideas that result
in the improvement in the efficiency or
effectiveness of a system. The advantages of this are
1)It is results-oriented, thus establishing some
objective criteria for the evaluation of creativeinput and
2) it opens the door to a proper valuation of
creative activities that may be overlooked because
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FACTORS AFFECTING CREATIVITY1. Problem sensitivity
2. Idea fluency
3. Originality4. Flexibility
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Problem Sensitivity This is basically the ability to recognize that a problem
exists or to be able to cut through consider standing,false impression, lack of facts or other hurdles and
recognize the fact problem. Idea Fluency
Means that a person can pile up a large number ofalternative solutions to a given problem in a given
time. The value of this lies in the fact that the more ideas
you have, the greater are the chances of finding ausable one.
The more plentiful your opportunities to get out of
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Originality Means discovering something entirely new.
It is finding new ways to very existing conditions, ornew ways to adapt existing ideas to new conditions, or
modification of something that will fit in an existingcondition.
Flexibility
Creative flexibility is largely concerned with
willingness to consider a wide variety of approachesto a problem. This is largely a matter of attitude.
Another name of creative flexibility is creativeexpectancy meaning the creative person just expects
to solve the problem no matter how many failures
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Step 1 The creative process is perceptual, not analytical.
Thus, the way creative people see the problem will
affect the outcome more than any thing else.
The clearer the presentation of the problem, the
better the solution can be.
Step 2
Recruit and hire talented creative people, and bewilling to invest in them.
Talent can provide you with unlimited problem-solving
possibilities; a lack of talent will seriously limit what
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Step 3 Know your creative peoples styles, moods, interests,
etc.
Match your people to the problems, knowing you
creative personnel takes time, but the rewards are
more than what you pay for this effort.
Step 4
Once the problem is clear, the talent is good, and thepeople are matched to the problem, turn your
attention to nurturing the right environment.
A good fit between talent and surroundings can have
a s ner effect Conve confidence and encoura e
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Step 5 Be willing to help if problems surface but donot interfere.
Be a good listener.
Step 6
At this stage its necessary for the creatives to get little crazy .First,
they will attack the problem with a vengeance.
This stage is idiosyncratic and unpredictable, but let it unfold.
If you want unique ideas that solve the problem differently than
before, let minds race from one possibility to another.
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Step 7 Give your creatives a free rein.
But ensure that the work get done on time. This a balancing act.
It takes experience to know when youve reached the point where
the reins need to be tightened.
Step 8
Do your critical thinking out of range of your creatives. Then,
carefully prepare your evaluation of their work.
Be clear and specific, but also considerate.
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Step 9 The creative process is dynamic.
Your reaction in the end to their creative work will affect how well
the process works in the future.
Be constructive, and make sure the process ends with a sense ofselffulfillment for the creatives.
Point out good aspects of all alternatives and let them know the
final ideas are theirs.
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CREATIVITY TO INNOVATION
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Innovation refers to the process of bringing any new, problem-solving
or opportunity-addressing idea into use.
Ideas for reorganizing, cutting costs, putting in new budgeting systems,
improving communication, or assembling produces in teams are also
innovations.
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1. Make it the norm2. Put aside ego
3. Mix people up
4. Dont Fear Failure5. Hire Outsiders
6. Abandon the Crowd
7. Let Go of Your Ideas
8. Dont Underestimate Science of Innovation
9. Merge Patience and Passion
10. Make It Meaningful
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Very Large organizations foster resistance to change A large corporations is a formalized structure which maintains
and manages the successes of the past.
Procedures have been designed to achieve efficiency in doingwhat we do best. Innovation may disrupt the stable state ofcorporate society and interfere with the corporations vigorous
and continuing efforts to be efficient. In a large, established organization, innovation thus meets a wall
of resistance.
2. Innovation may threaten current successes Frequently, large corporations are reluctant to innovate in areas
which would compete with their already existing products,markets, and/or technologies.
For eg.Honeywell, for instance might not be expected todevelop a digital thermostat because it currently commands thedominant position in the mechanical thermostat market
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3. The corporate Hierarchy breeds conservativesubordinates.
The subordinate who takes risks thus may turn up as the
one who seems to cause the most problems.
Corporate life pertains, truly innovative people are not as
likely to be promoted and rewarded vis--vis their
conservative counterparts.
4. Product/market boundary charters sometimes preclude
innovation.
When development work goes on within a corporatedivisional structure, division business charters sometimes
cut off potentially successful innovations because they do
not match the current narrow objectives of that division.
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5. In a large organization, the separation of powerconstitutes a weakest link constraint on innovation.
Innovation requires both development and marketing of
the product.
These functions are usually separated in large
organizations as a result, coordination is more difficult,
and inflexibility is likely.
Since enthusiasm and vision are critical to innovation, it is
difficult for one function to sell its idea to the other.
The result is conservative moves that satisfy the minimalvision of both functions.
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6. The politics of large organizations can lead tocompromises that decreases the effectiveness of attempts
at innovation
The balance of organizational power can lead to other
difficulties as is examplified by the old adage that a
camel is a horse designed by a committee.
However,the net result might be seen by consumers as a
nothing product-not because it doesnt have striking
components because the components might not be
compatible with each other and hence and cancel each
other out.
Each member of the coalition can then, with justification,
blame participants other than himself for the products
failure.
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7. The large firms tend to emphasize short-run efficiency Large organizations use management control systems which
emphasize financial measures such as short-term profits, the
bottom line, and return on investment become the objectives.
These are measured on a yearly basis. But the payoff from
innovation is typically for at least five or more years.
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8. The rotation system of training managers at large corporationsdevelop a short-run perspective in managers
Large enterprises train their managers by rotating them through
the organization. Assignments for fast-track, bright managers are
seldom made for more than two years. Thus, these individuals do
not see innovations are being within their horizons on anyparticular assignment.
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9. Large organizations can only