Managing Organizational Change:Strategic Planning and Organizational Development

1. Managing Organizational Change:
Strategic Planning and
Organizational Development
Presented by: Salim Bajubair
Instructor: Michelle Zimmerman, Ph.D.1

2.  Chapter Outline
The prevalence of change in organizations
The nature of the change process
Strategic planning: Deliberate change
Resistance to change: Maintaining the status Quo
Organizational development interventions:
implementing planned change
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3. A century ago, advances in machine
technology made farming so highly efficient
that fewer hands were needed to plant and
reap the harvest. Today’s business leaders
readily acknowledge that the pace of
change in organizations is more rapid than
ever. However, there are many reasons
would make the changing process faster.

4.  Definition of organizational change
It is planned or unplanned transformations
in an organization’s structure, technology,
and/or people.
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5. The Prevalence of Change in
Organizations
The Message Is Clear: Change or Disappear !
innovation is one of the causes of change. For
example, Cannon, Nikon were the leader in the
industry of producing film cameras, when the
digital cameras entered the market, they have
to change otherwise they will be as Kodak.
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7. Change Is a Global Phenomenon7
Study shows that more than 12,000 managers
from 25 different countries were asked to
identify the major changes their organizations
had encountered in the past two years. Most
of them cited large restructuring, mergers,
divestitures and acquisitions, and reduction of
employment.

8. The Nature of Change Process
Targets: What, Exactly, Is Changed?
Magnitude: How Mach Is Changed?
Forces: Why Does Unplanned Change Occur?
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9. Targets: What, Exactly, Is Changed?
There are three prospective a manager will
focus on, and they are:
Changes in organizational structure
Changes in technology
Changes in people
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10. Changes in organizational structure
Changes in technology
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11. Changes in people
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12. Magnitude: how much is Changed?
The changes that organizations make differ
in magnitude. There is
first-order change: change that is
continuous in nature and involves no major
shifts in the way an organization operates.
Second-order change: Radical change;
major shifts involving many different levels of
the organization and many different
aspects of business.
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13. Forces: why does unplanned change occur?
Unplanned change is shifts in organizational activities due
to forces that are external in nature, those beyond the
organization’s control.
There are several forces lead to unplanned change.
a- shifting employee demographics
b- performance gaps
c- government regulation.
d- global competition
e- fluctuating economic conditions.
f- Advances in technology.
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14. Strategic Planning: Deliberate Change
Strategic planning is the process of formulating,
implementing, and evaluating decisions that enable an
organization to achieve its objectives.
The basic three Assumptions about Strategic Planning:
A- it is deliberate
B- occurs when current objectives can not met.
C- new organization objectives require new strategic
plans.
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15. About What Do Companies Make Strategic Plans?
Most of the strategic plans we see these days involve
changing either
Products and services:
Cannon and Nikon were the dominant player in the
market for film cameras, responded to the digital
cameras revolution by adding digital cameras to their
product mix.
Organizational structure:
In 2004, IBM decide to sell its personal computer division
to Lenovo Group.
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16. The Strategic Planning Process Making Change Happen
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17. Resistance to Change: Maintaining the
Status Quo
Individual Barriers to Change
Organizational Barriers to Change
Readiness for Change: When Will Organizational
Change Occur?
Factors Affecting Resistance to Change
How Can Resistance to Organizational Change Be
Overcome?
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18. Individual Barriers to Change
People resist changes in organizations for a variety of
reasons:
Economic insecurity
Fear of the unknown
Threats to social relationships
Habit
Failure to recognize need for change
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19. Organizational Barriers to Change
As individual resist to change, there are conditions associated with
organizations.
 Structural inertia
When an organizational forces encourage employees to perform jobs in certain
ways, thereby make them resistant to change.
 Work group inertia
When a work group encourage employees to perform jobs in certain way, thereby
make them resistant to change.
 Threats to existing balance of power
It occur when there is shift in balance between individuals and organization.
 Previously unsuccessful change efforts.
When anyone has lived through a past disaster and may be reluctant to endure
another attempt in the same thing.
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20. Readiness for Change: When Will Organizational Change Occur?
 There are factors contributing to the benefits of making a
change:
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21. Factors affecting resistance to change
The researchers found that three variables were linked
strongly to openness to change. These were as follows:
Resilience
when people are capable of bouncing back from adversity
Information about change
Facts about how things will be different
Change self efficacy
Beliefs in one’s ability to function effectively despite the demands
of change.
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22. How can resistance to organizational change
be overcome
Gain leadership support
Identify and neutralize change resisters
Educate the workforce
“sell” the need for change
Involve employees in the change efforts
Reward constructive behaviors
Create a “learning organization.”
Take the situation into account
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23. Organizational Development Interventions:
Implementing Planned Change
Management by Objectives: Clarifying Organizational
Goals
Survey Feedback: Inducing Change by Sharing
Information
Appreciative Inquiry
Action Labs
Quality of Work Life Programs: Humanizing the Workplace
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24. MBO: is a technique by which managers and their
subordinates work together to set, and then strive to attain
organizational goals.
Management by Objectives: Clarifying Organizational Goals.
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25. Survey Feedback: inducing change by sharing
information
This technique follows the three steps
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26. Appreciative inquiry:
Appreciative inquiry is an organizational development
intervention that focuses attention away from an organization’s
shortcoming, and toward its capabilities and its potential; based
on the assumption that members of organizations already know
the problems they face and that they stand to benefit more by
focusing on what is possible.
Discovery
Dreaming
Designing
Delivering
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27. Action labs
An organizational development intervention
in which teams of participants work of-site to
develop and implement new ways of solving
organizational problems by focusing on the
ineffectiveness of current methods.
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28. Quality of Word Life Programs: Humanizing the Workplace
Organizational development techniques
designed to improve organizational
functioning by humanizing the workplace,
making it more democratic, and involving
employees in decision making
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29. Questions or Comments
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