Managing Change
Organizational Change                        Unplanned Change –Planned Change –        change that is imposedchange result...
Globalization   Organizations must rethink    the most efficient ways to                                                 M...
Scope of ChangeIncremental Change – change of a  relatively small scope, such as making  small improvementsStrategic Chang...
The Change Agent’s RoleChange Agent – the individual or group who undertakes the task of introducing and managing a change...
Internal Change AgentsAdvantages             Disadvantages• know past history,   • may be associated  political system,   ...
External Change Agents                          DisadvantagesAdvantages                          •   limited knowledge of•...
Resistance to Change• Fear of the unknown• Fear of loss• Fear of failure• Disruption of  interpersonal  relationships• Per...
Dealing with  Resistance to Change• Communication   – details   – rationale• Participation in  the process   – ownership  ...
Reactions to Change and Managerial InterventionsReaction                 Expression     Managerial                        ...
Lewin’s Three-Step Change          Model1. Unfreezing – involves encouraging  individuals to discard old behaviors by  sha...
Applying Lewin’s Model     to the Organization   Unfreezing              Moving              Refreezing  Reducing forces  ...
Organizational Development (OD) Organizational Development (OD) – a  systematic approach to organizational  improvement th...
Diagnosis and Needs           AnalysisDiagnosis andneeds analysis                       Intervention                    Fo...
OD Intervention Methods:Organizational/Group TechniquesSurvey Feedback – a widely used method of                   Anonymo...
OD Intervention Methods: Organizational/Group TechniquesManagement by Objectives – an organization- wide intervention tech...
OD Intervention Methods: Organizational/Group TechniquesQuality Program – a program that        Raise aspirations about em...
OD Intervention Methods:  Organizational/Group TechniquesTeam Building –  an intervention                       Seek feedb...
OD Intervention Methods: Organizational/Group TechniquesProcess Consultation –an OD methodthat helps         Outside consu...
OD Intervention Methods:  Individual-Focused TechniquesSkills Training –  increasing the  job knowledge,  skills, and     ...
OD Intervention Methods:  Individual-Focused TechniquesLeadership Training  and Development –    a variety of  techniques ...
OD Intervention Methods:   Individual-Focused TechniquesExecutive Coaching – a host of techniques for enhancing           ...
OD Intervention Methods:  Individual-Focused TechniquesRole Negotiation – a technique whereby individuals meet and clarify...
OD Intervention Methods:  Individual-Focused TechniquesJob Redesign –  an OD  intervention  method that alters  jobs to im...
OD Intervention Methods:  Individual-Focused TechniquesHealthPromotion   Ex. Stress reduction education,             emplo...
Ethical Considerations inOrganizational Development•   Selection of the OD method•   Voluntary participation•   Confidenti...
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  • Org change new

    1. 1. Managing Change
    2. 2. Organizational Change Unplanned Change –Planned Change – change that is imposedchange resulting on the organizationfrom a deliberate and is oftendecision to alter the unforeseenorganization Managers must be prepared to handle both
    3. 3. Globalization Organizations must rethink the most efficient ways to Majority of Use resources new workers Disseminate/gather information will be female Develop people Workforce will grow in diversity -Structural Change and Workforce is aging -Mental less young workers, moreChange middle-aged Workforce Diversity
    4. 4. Scope of ChangeIncremental Change – change of a relatively small scope, such as making small improvementsStrategic Change – change of a larger scale, such as organizational restructuringTransformational Change – change in which the organization moves to a radically different, and sometimes unknown, future state
    5. 5. The Change Agent’s RoleChange Agent – the individual or group who undertakes the task of introducing and managing a change in an organizationEffective change leaders build relationships – Within the leadership team – Between the team and organizational members – Between the team and key environmental players
    6. 6. Internal Change AgentsAdvantages Disadvantages• know past history, • may be associated political system, with factions, and culture accused of• must live with favoritism results of change • may be too close to so will move the situation to be carefully objective
    7. 7. External Change Agents DisadvantagesAdvantages • limited knowledge of• outsider’s organization’s objective view history• impartiality • may be viewed with suspicionTo succeed, they must be perceived as trustworthy,be experts with proven track records, be similar tothose they are working with
    8. 8. Resistance to Change• Fear of the unknown• Fear of loss• Fear of failure• Disruption of interpersonal relationships• Personality conflicts• Politics• Cultural assumptions and values
    9. 9. Dealing with Resistance to Change• Communication – details – rationale• Participation in the process – ownership – commitment• Empathy and support
    10. 10. Reactions to Change and Managerial InterventionsReaction Expression Managerial InterventionDisengagement Withdrawal Confront, identifypsychological withdrawalfrom changeDisidentification Sadness, worry Explore, transferfeeling that one’sidentity is beingthreatened by changeDisenchantment Anger Neutralize,feeling negativity or acknowledgeanger toward a changeDisorientation Confusion Explain, planfeelings of loss andconfusion due to change Table adapted from H. Woodward and S. Buchholz. Aftershock: Helping People through corporate Change, p. 15. Copyright © 1987 John Wiley & Sons, Inc. Reprinted by Permission of John Wiley & Sons, Inc.
    11. 11. Lewin’s Three-Step Change Model1. Unfreezing – involves encouraging individuals to discard old behaviors by shaking up the equilibrium state that maintains the status quo2. Moving – new attitudes, values, and behaviors are substituted for old ones3. Refreezing – involves the establishment of new attitudes, values, and behaviors as the new status quo
    12. 12. Applying Lewin’s Model to the Organization Unfreezing Moving Refreezing Reducing forces Developing new Reinforcing new For status quo attitudes, values, attitudes, values, and behaviors and behaviors• Unfreezing: the organization eliminates rewards for current behavior• Moving: the organization initiates new options and explains their rationale• Refreezing: organizational culture and formal reward systems encourage the new behaviors
    13. 13. Organizational Development (OD) Organizational Development (OD) – a systematic approach to organizational improvement that applies behavioral science theory and research in order to increase individual and organizational well-being and effectiveness
    14. 14. Diagnosis and Needs AnalysisDiagnosis andneeds analysis Intervention Follow-upAsk• What are the forces for change?• What are the forces preserving the status quo?• What are the most likely sources of resistance?• What are the goals to be accomplished by change?
    15. 15. OD Intervention Methods:Organizational/Group TechniquesSurvey Feedback – a widely used method of Anonymous intervention Group reporting format whereby employee No repercussions attitudes are Clear purpose solicited by Follow-up questionnaire
    16. 16. OD Intervention Methods: Organizational/Group TechniquesManagement by Objectives – an organization- wide intervention technique of joint goal setting Initial objectives between Periodic progress employees and reviews managers Problem solving to remove obstacles to goal achievement
    17. 17. OD Intervention Methods: Organizational/Group TechniquesQuality Program – a program that Raise aspirations about embeds product product/service and service quality quality Embed product/service excellence into the quality excellence in organizational the organizational culture culture
    18. 18. OD Intervention Methods: Organizational/Group TechniquesTeam Building – an intervention Seek feedback designed to Discuss errors improve the Reflect on successes and effectiveness of a failures work group Experiment with new ways of performing Climate of psychological safety
    19. 19. OD Intervention Methods: Organizational/Group TechniquesProcess Consultation –an OD methodthat helps Outside consultant: Enters organizationmanagers and Defines the relationshipemployers Chooses an approachimprove the Gathers dataprocesses that are Diagnoses problemused in Intervenesorganizations Leaves organization
    20. 20. OD Intervention Methods: Individual-Focused TechniquesSkills Training – increasing the job knowledge, skills, and In formal classroom abilities that are settings necessary to do On the job (Continual a job effectively updating)
    21. 21. OD Intervention Methods: Individual-Focused TechniquesLeadership Training and Development – a variety of techniques that are Action learning designed to enhance Simulation individual’s Business games leadership skills Role-playing Case studies
    22. 22. OD Intervention Methods: Individual-Focused TechniquesExecutive Coaching – a host of techniques for enhancing Verbal information managers’ skills Intellectual skills in an organization Attitudes Development
    23. 23. OD Intervention Methods: Individual-Focused TechniquesRole Negotiation – a technique whereby individuals meet and clarify their Outcomes psychological • Better understanding of contract what each can be expected to give and receive • Less ambiguity
    24. 24. OD Intervention Methods: Individual-Focused TechniquesJob Redesign – an OD intervention method that alters jobs to improve Realign task demands the fit between and individual individual skills capabilities and the demands Redesign jobs to fit new techniques or of the job organization structures
    25. 25. OD Intervention Methods: Individual-Focused TechniquesHealthPromotion Ex. Stress reduction education, employee assistanceProgramsCareer Match individual’s career aspirations with organizationalPlanning opportunities
    26. 26. Ethical Considerations inOrganizational Development• Selection of the OD method• Voluntary participation• Confidentiality• Potential for manipulation by the change agent

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