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  1. 1. Managing Change Module 10 LIS 580: Spring 2006 Instructor- Michael Crandall
  2. 2. April 27, 2006 LIS580- Spring 2006 2 Roadmap • The context • What is organizational change? • Processes for managing change • People and change • Organizational Development • Conflict resolution • Fostering innovation
  3. 3. April 27, 2006 LIS580- Spring 2006 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
  4. 4. April 27, 2006 LIS580- Spring 2006 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
  5. 5. April 27, 2006 LIS580- Spring 2006 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? G.Dessler, 2003
  6. 6. April 27, 2006 LIS580- Spring 2006 6 Forces for Change External Forces Internal 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. 7. April 27, 2006 LIS580- Spring 2006 7 Three Categories of Change Organizational Culture Prentice Hall, 2002
  8. 8. April 27, 2006 LIS580- Spring 2006 8 Model for Planned Organizational Change FIGURE 8–1Source: Adapted from Larry Short, “Planned Organizational Change,” MSU Business Topics, Autumn 1973, pp. 53–61 ed. Theodore Herbert, Organizational Behavior: Readings and Cases (New York: McMillan, 1976), p. 351. G.Dessler, 2003
  9. 9. April 27, 2006 LIS580- Spring 2006 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 Prentice Hall, 2002
  10. 10. April 27, 2006 LIS580- Spring 2006 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 Prentice Hall, 2002
  11. 11. April 27, 2006 LIS580- Spring 2006 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 Prentice Hall, 2002
  12. 12. April 27, 2006 LIS580- Spring 2006 12 Is a New Structure Really Required? FIGURE 8–2 Source: Adapted from Michael Goold and Andrew Campbell, “Do You Have a Well-Designed Organization?” Harvard Business Review, March 2002, p. 124. 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. 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. G.Dessler, 2003
  13. 13. April 27, 2006 LIS580- Spring 2006 13 Is a New Structure Really Required? (cont’d) FIGURE 8–2b Source: Adapted from Michael Goold and Andrew Campbell, “Do You Have a Well-Designed Organization?” Harvard Business Review, March 2002, p. 124. G.Dessler, 2003
  14. 14. April 27, 2006 LIS580- Spring 2006 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 G.Dessler, 2003
  15. 15. April 27, 2006 LIS580- Spring 2006 15 Why People Resist Change Prentice Hall, 2002
  16. 16. April 27, 2006 LIS580- Spring 2006 16 FIGURE 8–3 How Immune Is the Person to Change? Source: Robert Kegan and Lisa Lahey, “The Real Reason People Won’t Change,” Harvard Business Review, November 2001, p. 89. G.Dessler, 2003
  17. 17. April 27, 2006 LIS580- Spring 2006 17 G.Dessler, 2003 Dealing with Change
  18. 18. April 27, 2006 LIS580- Spring 2006 18 FIGURE 8–5 Barriers to Empowerment 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. 19. April 27, 2006 LIS580- Spring 2006 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. G.Dessler, 2003
  20. 20. April 27, 2006 LIS580- Spring 2006 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. G.Dessler, 2003
  21. 21. April 27, 2006 LIS580- Spring 2006 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. G.Dessler, 2003
  22. 22. April 27, 2006 LIS580- Spring 2006 22 G.Dessler, 2003
  23. 23. April 27, 2006 LIS580- Spring 2006 23 Technostructural Applications of OD • Formal Structure Change Program – An intervention technique in which employees collect information on existing formal organizational structures and analyze it for the purpose of redesigning and implementing new organizational structures. G.Dessler, 2003
  24. 24. April 27, 2006 LIS580- Spring 2006 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. G.Dessler, 2003
  25. 25. April 27, 2006 LIS580- Spring 2006 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 Prentice Hall, 2002
  26. 26. April 27, 2006 LIS580- Spring 2006 26 FIGURE 8–7 Conflict Handling Styles 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. 27. April 27, 2006 LIS580- Spring 2006 27 G.Dessler, 2003 Conflict Resolution Modes
  28. 28. April 27, 2006 LIS580- Spring 2006 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 Prentice Hall, 2002
  29. 29. April 27, 2006 LIS580- Spring 2006 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 Prentice Hall, 2002
  30. 30. April 27, 2006 LIS580- Spring 2006 30 Next Week • Leading– Monday’s topic is “motivation” – Read Chapters 10 and 11 and the assigned articles • Discussion group-- think about the following questions: – Does NASA have clear and consistent leadership? – What are some of the problems with the leadership structure? – How do you think this affects the motivation of the engineers and managers? – Does this have impact on safety & performance? – What could be done to improve the situation?

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