What are your reactions when youhear the word “change?”•Negative perceptions….•Positive perceptions….Your Perceptions of Change
Types of Organizational Change– Anticipatory changes: planned changes based onexpected situations.– Reactive changes: changes made in response tounexpected situations.– Incremental changes: subsystem adjustmentsrequired to keep the organization on course.– Strategic changes: altering the overall shape ordirection of the organization.
Forces of Change• External Forces– Market Place– Govt Laws and Regulations– Technology– Labor market– Economic Change• Internal Forces– Changes in OrganisationalStrategies– Workforce change– New Equipment– Employee Attitude
A Journey ThroughChange:StabilityLearningAcceptance,Commitment LookingForwardLookingBackComfortandcontrolFear, AngerandResistanceChaosEnquiry,Experimentation andDiscovery
Individual Reactions to Change• How People Respond to Changes They Like?– Three-stage process– Unrealistic optimism– Reality shock– Constructive direction
Individual Reactions to Change (cont’d)• How People Respond to Changes They Fearand Dislike?– Stages– Getting off on the wrong track– Laughing it off– Growing self-doubt– Destructive direction
Change: Organizational andIndividual Perspectives (cont’d)• Tuning– The most common, least intense, and least risky typeof change.– Also known as preventive maintenance and kaizen(continuous improvement).– Key is to actively anticipate and avoid problemsrather than waiting for something to go wrong.• Adaptation– Incremental changes that are in reaction to externalproblems, events, or pressures.
• Re-Orientation– Change that is anticipatory and strategic in scope andcauses the organization to be significantly redirected.– Also called “frame bending”(Nadler and Tushman).• Re-Creation– Intense and risky decisive change that reinvents theorganization.– Also called “frame breaking” (Nadler andTushman).Change: Organizational and IndividualPerspectives (cont’d)
Why Do EmployeesResist Change?• Surprise– Unannounced significant changes threaten employees’ sense ofbalance in the workplace.• Inertia– Employees have a desire to maintain a safe, secure, andpredictable status quo.• Misunderstanding and lack of skills– Without introductory or remedial training, change may beperceived negatively.• Poor Timing– Other events can conspire to create resentment about aparticular change.
Why Do Employees Resist Change? (cont’d)• Emotional Side Effects– Forced acceptance of change can create a sense ofpowerlessness, anger, and passive resistance to change.• Lack of Trust– Promises of improvement mean nothing if employees do nottrust management.• Fear of Failure– Employees are intimidated by change and doubt their abilities tomeet new challenges.• Personality Conflicts– Managers who are disliked by their managers are poor conduitsfor change.
• Threat to Job Status/Security– Employees worry that any change may threaten theirjob or security.• Breakup of Work Group– Changes can tear apart established on-the-job socialrelationships.• Competing Commitments– Change can disrupt employees in their pursuit ofother goals.Why Do Employees Resist Change? (cont’d)
Overcoming Resistance to Change• Strategies for Overcoming Resistance toChange– Education and communication– Participation and involvement– Facilitation and support– Negotiation and agreement– Manipulation and co-optation– Explicit and implicit coercion
Making Change Happen• Two Approaches to Organization Change– Organization Development (OD)– Formal top-down approach– Grassroots Change– An unofficial and informal bottom-up approach
Planned Change Through OrganizationDevelopment (OD)• Organization development (OD)– Planned change programs intended to help peopleand organizations function more effectively.– Applying behavioral science principles, methods,and theories to create and cope with change.– OD creates fundamental change in theorganization, as opposed to fixing a problem orimproving a procedure.– OD programs generally are facilitated by hiredconsultants,
Planned Change Through OrganizationDevelopment (OD) (cont’d)• Objectives of OD– Deepen the sense of organizational purpose.– Strengthen interpersonal trust.– Encourage problem solving rather than avoidance.– Develop a satisfying work experience.– Supplement formal authority with knowledge and skill-based authority.– Increase personal responsibility for planning andimplementing.– Encourage willingness to change.
Planned Change Through OrganizationDevelopment (OD) (cont’d)• The OD Process (Kurt Lewin)– Unfreezing, changing, and refreezing social systems– Unfreezing: neutralizing resistance by preparingpeople for change.– Changing: implementing the planned change– Refreezing: systematically following a changeprogram for lasting results.
Unofficial and Informal Grassroots Change• Grassroots Change– Change that is spontaneous, informal, experimental,and driven from within.• Tempered Radicals– People who quietly try to change the dominantorganizational culture in line with their convictions.– Guidelines for tempered radicals– Think small for big results.– Be authentic.– Translate.– Don’t go it alone.
Managing ChangeStructureTechnologyPeopleWork specialization,Departmentalization,Chain of Command Span of Control,Formalization,Job RedesignAttitude, Expectations, Perception andBehaviorWork Process, Methods and Equipments
Stimulating Innovation• Creativity– The ability to combine ideas in aunique way or to make an unusualassociation.• Innovation– Turning the outcomes of the creationprocess into useful products,services, or work methods.
System View of InnovationTransformation OutputsCreative Individuals,Groups andOrganizationsCreative Environment,Process and SituationInnovative Products,Work MethodsInputs
Innovation VariablesInnovative VariablesStructural Variables•Organic structure•Communication•Abundant resources•High interunit stimulate•Work and network supportCultural variables•Acceptance of ambiguity•Positive feedback•Low external control•Tolerance of risks•Tolerance of conflicts•Focus on ends•Open system focusHR Variables•High commitment to T & D•High job security•Creative people
Structural Variables• Adopt an organic structure• Make available plentiful resources• Engage in frequent inherentcommunication• Minimize extreme time pressureson creative activities• Provide explicit support forcreativity
Cultural Variables• Accept Ambiguity, have lowexternal control• Tolerant impractical• Tolerant risk taking• Tolerate conflict• Focus on ends rather thanmeans• Develop an open system focus• Provide positive feedback
Human Resources Variables• Actively promote T & D tokeep employee’s skillsupdated• Offer high job security toencourage risk taking• Encourage individual tobe “Champion” to change