MANAGING CHANGES 12332313131312312321312312312312

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1. Managing Change

2. Roadmap
The context
What is organizational change?
Processes for managing change
People and change
Organizational Development
Conflict resolution
Fostering innovation
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3. Ghoshal & Bartlett
Old values: compliance, control, contract and constraint
New values: discipline, support, trust and stretch
Successful change involves simplification, integration, and
regeneration
Phased approach essential, along with focus on people’s
attitudes, assumptions and behaviors
Brings both organizational design and human resources lessons
to bear
Ghoshal and Bartlett provide a high-level model for change, let’s
look at some of the details and lessons learned at a more
granular level
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4. What is Organizational Change?
An alteration of an organization’s environment, structure,
culture, technology, or people
◦A constant force
◦An organizational reality
◦An opportunity or a threat
Change agent
◦A person who initiates and assumes the responsibility for managing a
change in an organization
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5. Basic Questions for Change Agents
What are the forces acting upon me?
◦What are the pressures I should take into consideration as I decide
what to change and how I should change it?
What should we change?
◦Should the changes be strategic and companywide or relatively
limited?
How should we change it?
◦How should we actually implement the change?
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6. Forces for Change
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External ForcesInternal Forces
Competition Laws and
regulations
Strategy modifications
New technologies New equipment
Labor market shifts New processes
Business cycles Workforce composition
Social change Job restructuring
Compensation and
benefits
Labor surpluses and
shortages
Employee attitude
Prentice Hall, 2002

7. Three Categories of Change
LIS580- SPRING 2006 7
Organizational Culture
Prentice Hall, 2002

8. Model for Planned Organizational Change
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FIGURE 8–1
G.Dessler, 2003

9. Two Views of the Change
Process
“Calm waters” metaphor
◦A description of traditional practices in and theories about organizations that
likens the organization to a large ship making a predictable trip across a calm
sea and experiencing an occasional storm
“White-water rapids” metaphor
◦A description of the organization as a small raft navigating a raging river
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Prentice Hall, 2002

10. Change in “Calm Waters”
Kurt Lewin’s Three-Step Process
◦Unfreezing
◦The driving forces, which direct behavior away
from the status quo, can be increased
◦The restraining forces, which hinder movement
from the existing equilibrium, can be decreased
◦The two approaches can be combined
◦Implementation of change
◦Refreezing
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Prentice Hall, 2002

11. Change in “White-water Rapids”
Change is constant in a dynamic environment
The only certainty is continuing uncertainty
Competitive advantages do not last
Managers must quickly and properly react to
unexpected events
◦Be alert to problems and opportunities
◦Become change agents in stimulating, implementing and
supporting change in the organization
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Prentice Hall, 2002

12. Is a New Structure Really Required?
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When you identify a problem
with your design, first look for
ways to fix it without
substantially altering it. If that
doesn’t work, you’ll have to
make fundamental changes or
even reject the design. Here’s a
step-by-step process for
resolving problems.

13. Is a New Structure Really Required?
(cont’d)
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14. A Nine-step Process For Leading
Organizational Change
1.Create a Sense of Urgency
2.Decide What to Change
3.Create a Guiding Coalition
and Mobilize Commitment
4.Develop and Communicate
a Shared Vision
5.Empower Employees to
Make the Change
6.Generate Short-Term Wins
7.Consolidate Gains and
Produce More Change
8.Anchor the New Ways of
Doing Things in the
Company Culture
9.Monitor Progress and
Adjust the Vision as
Required
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G.Dessler, 2003

15. Why People Resist Change
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16. How Immune Is the Person to
Change?
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FIGURE 8–3
Source: Robert Kegan and Lisa Lahey, “The Real Reason People
Won’t Change,” Harvard Business Review, November 2001, p. 89.
G.Dessler, 2003

17. Dealing with Change
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G.Dessler, 2003

18. Barriers to Empowerment
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FIGURE 8–5
Source: Reprinted by permission of Harvard Business School Press. From
Leading Change by John P. Kotter. Boston, MA. 1996, p. 102. Copyright ©
1996 by the President and Fellows of Harvard College, all rights reserved.
G.Dessler, 2003

19. Organizational Development
Organizational Development (OD)
◦An approach to organizational change in which the employees themselves
formulate the change that’s required and implement it,
usually with the
aid of a trained
consultant.
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G.Dessler, 2003

20. OD Interventions
Human Process Interventions
◦Aimed at enabling employees to develop a better
understanding of their own and others’ behaviors for the
purpose of improving that behavior such that the
organization benefits.
Sensitivity Training (Laboratory or T-groups)
◦Purpose is to increase participants’ insight into their own
behavior and that of others by encouraging an open
expression of feelings in a trainer-guided group.
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G.Dessler, 2003

21. OD Interventions (cont’d)
Team Building
◦The process of improving the effectiveness of a team through action
research or other techniques.
Survey Research
◦The process of collecting data from attitude surveys filled out by employees
of an organization, then feeding the data back to workgroups to provide a
basis for problem analysis and action planning.
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G.Dessler, 2003

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G.Dessler, 2003

23. Technostructural Applications of
OD
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G.Dessler, 2003

24. Strategic Applications of OD
Strategic Intervention
◦An OD application aimed at effecting a suitable fit among
a firm’s strategy, structure, culture, and external
environments.
Integrated Strategic Management
◦An OD program to create or change a company’s strategy
by:
◦Analyzing the current strategy
◦Choosing a desired strategy
◦Designing a strategic change plan
◦Implementing the new plan.
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G.Dessler, 2003

25. Organizational Stressors: Role Demands
Role conflicts
◦Work expectations that are hard to satisfy
Role overload
◦Having more work to accomplish than time permits
Role ambiguity
◦When role expectations are not clearly understood
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Prentice Hall, 2002

26. Conflict Handling Styles
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FIGURE 8–7
Source: Source: Kenneth W. Thomas, “Organizational Conflict,” ed., Steven Kerr, Organizational Behavior (Columbus, OH:
Grid Publishing, 1979), in Andrew DuBrin, Applying Psychology (Upper Saddle River, NJ: Prentice Hall, 2000), p. 223.
G.Dessler, 2003

27. Conflict Resolution Modes
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G.Dessler, 2003

28. Stimulating Innovation
Creativity
◦The ability to combine ideas in a unique way or to make
unusual connections
Innovation
◦The process of taking a creative idea and turning it into a
useful product, service, or method of operation
◦Perception
◦Incubation
◦Inspiration
◦Innovation
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Prentice Hall, 2002

29. Structural Variables Affecting
Innovation
Organic structures
◦Positively influence innovation through less work
specialization, fewer rules and decentralization
Easy availability of plentiful resources
◦Allow management to purchase innovations, bear the
cost of instituting innovations, and absorb failures
Frequent inter-unit communication
◦Helps to break down barriers to innovation by facilitating
interaction across departmental lines
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Prentice Hall, 2002

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Any Question ?