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Managing Change Globally
1. MANAGING CHANGE Tom Peters - “To up the odds of survival, leaders at all levels must become obsessive about change” - “Change must become the norm, not cause for alarm.” Jack Welch - “When the rate of change on the outside exceeds the rate of change on the inside, the end is in sight”
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3. Dealing with its impact on the corporate culture >>>Organizations today are beset by change >>>Others have trouble transferring their skills to a new assignment in different industry.
10. Types of changes affecting organizations Technological Machines Equipment Processes Automation Computers New raw materials Robots Environmental Laws Taxes Social trends Fashion trends Political trends Economic trends Interest rates Consumer trends Competition Suppliers population trends Internal Policies Procedures New Methods Rules Reorganization Budget adjustment Restructuring of jobs Personnel Management Ownership Products/services sold
11. The change process Kurt Lewin— Change is a function of the forces that support or promote the change and those forces that oppose or resist the change Lewin’s Three –Step Model for Change Unfreezing-deals with breaking down the forces supporting or maintaining the old behavior Presenting a new alternative-involvesoffering a clear and attractive option representing new patterns of behavior Refreezing-requires that the change behavior be reinforced by the formal or informal reward systems and by the work group.
12. Reasons for resisting change Fear of the unknown Economics Fear that skills and expertise will lose value Threats to power Additional work and inconvenience Threats to interpersonal relations
13. Four Basic Situations Usually Occur: If employees cannot foresee how the change will affect them, they will resist the change or be neutral at best. If employees perceive that the change does not fit their needs and hopes, they will resist the change. If employees see that the change is inevitable, they may first resist and then resign themselves to the change.
14. If employees view the change as being in their best interests, they will be motivated to make the change work. STEPS ARE RECOMMENDED BEFORE ISSUING A CHANGE DIRECTIVE Determine the response needed from the employee to accomplish the task effectively. Estimate the expected response if the directive is simply published or orally passed to the employee (as many are)
15. 3. If a discrepancy exists between the needed response and the estimated response, determine how the two responses can be reconciled(opposition is never an acceptable response)
16. Employee response model Very negative 1. Opposition Neutral 2. Acceptance Very Positive 3. Commitment
17. SEVERAL SUGGESTIONS FOR REDUCING RESISTANCE TO CHANGE Build Trust Discuss Upcoming Changes Involve the Employees Make Sure the Changes Are Reasonable Avoid Threats Follow a Sensible Time Schedule Leading Change Establish a Sense of Urgency Create a Guiding Coalition
20. SEVERAL SUGGESTIONS FOR REDUCING RESISTANCE TO CHANGE 10. Develop a vision and strategy 11. Communicate the Change Vision 12. Empower Broad-Based Action Generate Short-Term Wins Consolidate Gains and Produce More Change Anchor New Approaches in the Culture
21. ORGANIZATIONAL DEVELOPMENT --is an organizationwide, planned effort managed from the top, with a goal of increasing organizational performance through planned interventions in the organization Ultimate goal---to structure the organizational environment so that managers and employees can use their skills and abilities to the fullest
22. MOST ORGANIZATIONAL DEVELOPMENT EFFORTS INCLUDE THE FOLLOWING PHASES Diagnosis—in this stage one should collect data for a reason Most frequently used methods for doing diagnosis Review available records. Survey questionnaires. Personal interviews. Direct observations.
23. MOST ORGANIZATIONAL DEVELOPMENT EFFORTS INCLUDE THE FOLLOWING PHASES Change planning-the data collected in the diagnosis stage must be carefully interpreted to determine the best plan for organizational improvement --the key to interpreting data is to look for trends and areas of general agreement --the end result of the change planning process is to identify specific problem areas and outline steps for resolving the problems Intervention/education—its purpose is to share the information obtained in the diagnostic phase with the affected employees and help them realize the need for change
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25. Team BuildingSOME OF THE SPECIFIC ACTIVITIES USED: Clarifying employee roles Reducing conflict Improving interpersonal relations Improving problem-solving skills
26. Most frequently used intervention/education methods Sensitivity Training—designed to make one or more aware of oneself and one’s impact to others ---involves a group, usually called a training group or T-group, that meets and has no agenda or particular focus EVALUATION---the most difficult phase in OD process the basic question to be answered is, Did the OD process produce the desired results?
27. Managing innovations INNOVATIONS—is an organization’s best sustainable source of growth, competitive advantage , and new wealth. Four Principles According to Robert Tucker An organization’s approach to innovation must be comprehensive. Innovation must include systematic, organized and continual search for new opportunities
28. Four Principles According to Robert Tucker 3. Organizations must involve everyone in the innovation process. 4. An organization must work constantly on improving its climate for innovation.
29. The Learning Organization >>has been defined as an organization skilled at creating , acquiring and transferring knowledge , and in modifying behavior to reflect the new knowledge
30. Five Principles for Creating a Learning Organization---Peter Senge Systems Thinking—managers must learn to see the big picture and not concentrate only on their part; they must learn to recognize the effects of one level of learning on another Personal mastery--Individual managers and employees must be empowered to experiment, innovate and explore Mental models—Managers and employees should be encouraged to develop mental models as ways of stretching their minds to find new and better ways of doing things
31. 4. Shared vision—Managers should develop and communicate a shared vision that can be used as a framework fro addressing problems and opportunities. 5.Team building—Team learning is the process of aligning a team so as to avoid wasted energy and to get the desired results. HONDA, CORNING & GENERAL ELECTRIC>>>examples of companies that have become good learning organizations
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