Fisb organisational change (5)


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Fisb organisational change (5)

  1. 1. Organisational Change 13/04/2010
  2. 2. What is Organisational Change ? <ul><li>Change is a part of life. Human beings---  childhood to </li></ul><ul><li>maturity--  Change of Behaviour </li></ul><ul><li>Example-  Computer Age </li></ul><ul><li>Technological/Behavioral Change </li></ul><ul><li>Work Values… Generation Gaps. </li></ul><ul><li>Economic Shocks </li></ul><ul><li>Whether change will happen? When ? Its irrelevant. Its dynamic </li></ul>
  3. 3. <ul><li>Need to Change </li></ul><ul><li>Managing a Planned Change </li></ul><ul><li>Introducing a Change--  Resistance </li></ul><ul><li>Kurt Lewin’s Force Field Analysis </li></ul>
  4. 4. Lewin’s Force-Field Analysis Equilibrium (Status-quo Situation) Driving Forces Restraining Forces Manager needs to identify the two sets of forces and their intensity Facilitating Forces Inhibiting Forces Increase Reduce
  5. 5. Steps followed in Force Field Analysis <ul><li>Define the ultimate objectives </li></ul><ul><li>Brainstorm Session . Identify & List-  </li></ul><ul><li>(a) Resisting Forces </li></ul><ul><li>(b) Driving Forces </li></ul><ul><li>Quantify the strength of each of these forces on a 5-point scale </li></ul><ul><li>Remove the forces one by one through discussion about which the team </li></ul><ul><li>has no control </li></ul><ul><li>5. Identify the weak Driving Forces and try to strengthen them through discussion </li></ul><ul><li>Identify the restraining forces and agree on actions to make them weak </li></ul><ul><li>Work out an Action Plan to introduce Change </li></ul>
  6. 6. Resistance to Change CHANGE ECONOMIC THREAT SOCIAL CONCERNS SECURITY UNDERMINING STATUS & AUTHORITY <ul><li>Its natural human reaction </li></ul><ul><li>Creates anxiety </li></ul><ul><li>Concerned about ambiguity due to change </li></ul>- Possible Benefits of Resistance RETRAINING NON-INVOLVEMENT IN THE DECISION MAKING PROCESS FEAR OF UNKNON SELECTIVE INFORMATION PROCESSING
  7. 7. Possible Benefits of Resistance <ul><li>Forces management to re-examine its proposals </li></ul><ul><li>Employees act as check-and balance </li></ul><ul><li>Management does not implement change in a haste </li></ul><ul><li>Management can take corrective steps in time </li></ul><ul><li>Information on the intensity of employee emotions </li></ul><ul><li>Provides emotional release to employees </li></ul><ul><li>Understanding of employees develops </li></ul>
  8. 8. Organisational Resistance <ul><li>STRUCTURAL DISEQUILIBRIUM </li></ul><ul><li>Change itself creates disequilibrium </li></ul><ul><li>Change in one sub system may not be accepted by another sub system </li></ul><ul><li>Threatens expertise of existing people </li></ul><ul><li>Threatens existing power relations </li></ul><ul><li>Threat to existing resource allocation… reduced budgets </li></ul><ul><li>Individuals may be ready to accept change but trade unions may resist </li></ul><ul><li>Resistance in case change is introduced on personal basis and not on professional grounds </li></ul><ul><li>Resistance in case established institutions are ignored </li></ul><ul><li>Older employees are more likely to resist more … difficult to change from the tried and tested methods </li></ul>
  9. 9. Organisational Resistance <ul><li>CONSEQUENCES </li></ul><ul><li>-----  Overt & Covert Behaviour </li></ul><ul><li>Striking work </li></ul><ul><li>Slow down of work </li></ul><ul><li>Very low work place engagement.. Low motivation, morale </li></ul><ul><li>High employee turnover </li></ul><ul><li>Absenteeism </li></ul><ul><li>Indiscipline </li></ul>
  10. 10. Dealing with resistance to Change <ul><li>Gray & Strace (1984) suggested three strategies to introduce change: </li></ul><ul><li>Introduce multiple changes at the same time…incremental resistance </li></ul><ul><li>Work through informal leaders </li></ul><ul><li>Introduce change where the resistance is likely to be the least </li></ul>
  11. 11. Kurt Lewin’s Model Phase I Phase II Phase III Unfreezing Changing Refreezing Recognising the need for change Modifying old ways And introducing new behaviours Making new behaviours permanent Dramatic drop in Market Share/ High Attrition
  12. 12. Larry Griener’s Model <ul><li>Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 </li></ul>Pressure on Top Management Sequential Stages : Intervention at the top Diagnosis of Problem areas Inventions Of new solutions Experimentation with new solutions Reinforcement of positive results Arousal to take action Re-orientation to Internal Problems Recognition of specific problems Commitment to new Course of action Search for Results Acceptance of new practices Stimulus on Power Structure Reaction of Power Structure
  13. 13. Lewitt’s Model Structure Technology People (Actors) Task It focuses on the interactive Nature of the various Subsystems. Change in One subsystem automatically affects the other subsystems
  14. 14. Action Research <ul><li>Role of a Change Agent -------  </li></ul><ul><li>DIAGNOSIS </li></ul><ul><li>ANALYSIS </li></ul><ul><li>FEEDBACK </li></ul><ul><li>ACTION & EVALUATION </li></ul>
  15. 15. Skills of a Change Agent <ul><li>COGNITIVE SKILLS – Should be able to </li></ul><ul><li>understand and analyse his own motivation in perceiving the need for change </li></ul><ul><li>ACTION SKILLS- As a consultant,counsellor,facilitator, trainer etc </li></ul><ul><li>COMMUNICATION SKILLS </li></ul>
  16. 16. Focus for Change in future <ul><li>Post economic liberalisation---  </li></ul><ul><li>INNOVATION- Product, process or service </li></ul><ul><li>EMPOWERMENT- Intrinsic task motivation </li></ul>