Managing Organization ABE Graduate Diploma (QCF Level -6) Prepared & Presented By Pyi Kyaw Lynn B.A (English), Yangon University M.B.A (Finance), Assumption University of Thailand

1. Managing Organization
ABE Graduate Diploma (QCF Level -6)
Prepared & Presented
By
Pyi Kyaw Lynn
B.A (English), Yangon University
M.B.A (Finance), Assumption University of Thailand
8/2/2015 1PKL

2. CHAPTER [VIII] : ORGANIZATIONAL CHANGE & DEVELOPMENT
8/2/2015 2
TODAY’S AGENDA
 The Dynamics of Change
 The Process of Change
 Change Strategies
 The Role of Managers
 Culture & Change
 Organizational Development
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3. [A] The Dynamics of Change
 Driving forces’ compelling change arise mainly from the external environment
of the organization (both general & specific), but also from the internal environment
in terms of performance results and aspects of the organization’s resources.
 Restraining forces’ seek to resist change and maintain the status quo. The
features include organizational inertia, vested interests of groups & the fears of
individuals, etc.
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STATUS
QUO
DRIVING FORCES RESTRAINING
FORCES
FORCE FIELD ANALYSIS
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4. Pressures From External Environment
 Political/legal pressures : Changes in regulation or the direction of government
policies. Legislative changes have direct impact on organizations.
 Economic pressures : Changes in economies of the countries.
 Social/demographic pressures : Factors such as birth & mortality rates, social tastes,
fashions & public attitudes affect on firms.
 Technological pressures : Continual innovations in information & communication
technology .
 Market pressures : Customer demands & the actions of competitors are significant for
the organizations.
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Pressures From Internal Environment
 Performance : Achievement of objectives drive for a change. Successful performance is
related to CSF.
 Employee demands : The interest, commitment and motivation of employees are
important and CSF for the organizations.
 Innovation : Development of new ideas or products impact on the operations of the
firms and outputs. Capability of the firms to develop its own innovations provide
competitive advantage.
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5. [B] The Process of Change
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 Change is a threat to the status quo so management need to
consider all aspects before implementing the strategy in a
planned manner.
Planning
Change
 Analysis of the current position and identifying the factors no
longer appropriate in meeting the objectives.
 Specification of new position & setting timescales within which
the changes are required to be completed.
Identify the
Required
Changes
 Management to establish open communication with those
affected, keeping them informed & seeking their ideas &
suggestions for implementation.
Identify Those
Affected
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6. Cont’d
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 Management to consider the best way of implementing the
changes.
 This involve agreeing strategies which overcome any resistance
to change.
Select the Best
Overall
Strategy
 Involve decisions on the length of the changeover period & the
programs required to train staff.
 Costs to be addressed and pros and cons to be weighed.
Draw &
Implement
Detailed Plan
 To review the effectiveness of the new position in achieving the
required objectives.
 To enable a smooth transition with minimal disruption to
operations & the morale of staff.
Review
&
Evaluation
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7. [C] Change Strategies
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4 - Reason to Resist Change
 Fear of people of losing
something such as power, status,
money, etc.
 The way of lessening the
resistance is negotiation.
 A situation when people don’t
understand the reasons & benefits of
change & don’t believe in
management.
 The scenario is common in
organization with “us & them culture.
 A condition arise where both the
originators of the change & those
affected have same information
but make different assessments.
 Some see positively, negatively.
 A situation where those affected by
the change don’t adapt to change
well because of their personality.
 E.g., Some people feel that they are
not able to learn new skill or
technology.
Parochial self - interest Misunderstanding & Lack of Trust
Different Assessments Low tolerance for change
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8. Kotter & Schlesinger’s Model of Change
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Reasons for Resisting
Change
Strategies for
Change
Appropriate
Management Style
 Parochial self –
interest
 Misunderstanding
& lack of trust
 Different
assessments
 Low tolerance to
change
 Negotiate
 Educate
 Participate
 Force & support
 Collaborative
 Directive or
consultative
 Consultative,
collaborative or
delegative
 Combination of
directive &
supportive
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9. Lewin’s Three-Step Model of Change
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 To create the motivation for change in the workforce who need to
understand need to change before implementing.
 Associated with breaking old patterns of behavior – the existing
culture – so that new patterns can be set up.
 To unfreeze resistance : managers need to increase the tension &
dissatisfaction with the present & need to enhance the desirability
& feasibility of the alternative.
 Associates with the communication process & should address
 the reason for change
 the benefits to firm & individuals accrue from the change
 who is involved
 Concerned with identifying what the new behavior, process &
procedure should be.
 Involves the development of new responses by staff based on the
new information made available to them.
 Moving them towards the new culture to fit the requirements.
nfreezing
hanging
U
C
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10. Cont’d
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 The stage encompasses consolidation or reinforcement to
integrate the changes made.
 To stabilize the new culture in order to prevent people slipping
back into the old patterns.
 To be positive reinforcement such as praise or reward for
adapting to the new circumstances.
 Negative reinforcement such as sanctions can be applied to
those who fail to comply.
 Reinforcement way include –
 Setting up employee suggestion schemes
 Giving staff a greater input into the decision making
process
 Implementing schemes which reward good effort
 Creating term spirit through identification schemes such as
logos, advertising T-shirts.
 Producing company newsletters
 Making managers more visible. E.g., open door policies.
efreezingR
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11. Business Process Re-engineering
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 BPR is management technique & the fundamental rethinking &
radical redesign of business to achieve dramatic improvements in
critical, complementary measures of performance such as cost,
quality, service & speed.
 BPR involves “ re-inventing” the enterprise. Managers are
required to dismiss many ways in which things have been done in
the past.
 Managers must –
 Abandon existing ideas of how the firm should be managed.
 Abandon well- established organizational principles &
procedures.
 Create new organizational principles & procedures.
TECHINQUE
REINVENTING
MANAGERS
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12. Principles of BPR
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Simple
Processes
Combining
Tasks
Empower
ment
Natural
Order
 BPR is best implemented if process are kept as simple as possible. In
case of complex structures, reverse this & processes to be organized
outputs, rather than tasks.
 Fragmented tasks to be combined & linked parallel activities. Several
teams or individuals to be formed as a single team. E.g., customer
service team.
 Decision to be taken place at lower level where work is performed,
enabling customers to elicit faster responses & quicker decisions.
 Process to follow natural order & re-engineering can improve outputs
by –
 Convergence : identifying tasks that can be carried out simultaneously.
 Reduced time frames : to eliminate obsolescence or inconsistency
between the start & end points of the process.
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13. Cont’d
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Multiple
Versions
Location
Streamlining
Checking &
Control
Reduction of
External
Contact Points
 To break the cases down into straightforward, medium-hard &
difficult. E.g., Operations in hospitals
 Work should be moved across conventional boundaries. E.g., Life
insurance underwriter can perform work with a laptop in the client’s
home rather than traditional back office.
 To be done without lowering standards by applying Management by
Exception.
 To reduce collection of data & information, enabling fewer resources.
E.g., Application of IT systems.
 To appoint managers for the holistic relationship with customers,
providing the single point of contact, instigating all necessary tasks &
trouble shoot appropriately.
Case Managers
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14. Implications of BPR in Organizational Structures
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Dramatic implications for the shape of an organization structure
 Flexible work teams can be replaced & formed by breaking
down of departments, lacking rigid departmental structure.
 E.g., One team is formed to secure orders, produce goods,
invoice, deliver & record payment for the goods instead of
performing separately in an organization.
Flexible work
teams
 Replace of department by flexible team strip out some middle
management layers - a process known as delayering, resulting
flatter organizational structure.
Delayering
 The process in which the size of the organization is reduced by
concentrating on core activities. E.g., Stripping out of non-core
personnel with outsourcing.
Downsizing
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15. [D] The Role of Managers
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PROVIDING
LEADERSHIP
MANAGING
CONFLICT
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16. Managing Conflict : Reactions to Change
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ACCEPTANCE
 Acceptance of change not to be
enthusiastic.
 To be recognized that the change
process is going to take place.
 Individual to agree or accept his
role in the process
INDIFFERENCE
 If change does not directly
affect an individual, indifference
may be result.
 Individual may appear apathetic
and lack of interest in the
proposals.
ACTIVE RESISTANCE
 A deliberate attempt to avoid or
reverse the proposed change but
not malicious/harmful in nature.
 E.g., absenteeism, strikes,
sabotages, or deliberate errors.
PASSIVE RESISTANCE
 Individual does not co-operate &
refuse to learn the new
technology.
 Deliberately stick to the old work
patterns.
 E.g., procrastination.
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17. Managing Conflict : Uses of Conflict
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 Argument is where
differences are
resolved by
discussion.
 To be effective
argument, arguing
group to work as a
team and to
discuss based on
trust & openness.
 The healthiest form of
conflict as it can be used to
set standards, motivate
people & reward high
achievers.
 Can be destructive
in nature as it
diverts attention
away from the
task.
 Encourage
defensive
behavior & result
in breakdown of
the group.
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18. Managing Conflict : Negotiation
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Pre-negotiation
stage
Negotiation
stage
Post Negotiation
stage
 The stage when a meeting is set & agenda agreed.
 The involved parties determine an expected outcome &
minimum acceptable outcome.
 The parties put their case & argue against the case of the
other side.
 Elements of common ground to be sought & the parties are
prepared to compromise or concede minor points.
 After an agreement, a program for implementation to be
established.
 The negotiators “sell” the agreement to those not directly
involved in the negotiations.
Three Stages To Process Of Negotiation
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19. Areas of Managing Cultural Change
8/2/2015 19
Top
management’
s active
involvement
&
commitment
Managers to
adopt new
patterns of
behavior
rather than
directing
To have
positive
support for
new behaviors,
including
recognition,
rewards for
new patterns
To review
recruitment
& selection
policies to
ensure that
new patterns
of behavior
are recruited.
New
behaviors to
be clearly
communicat
ed to existing
staffs & new
comers via
an induction
programs.
Training
&
develop
ment
[E] Culture & Change
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20. [F] Organizational Development
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DEFINITION
FLEXIBILITY
FEEDBACK
COLLABORATION
CONFLICT
 To develop a flexible, self-renewing system that can organize in
different ways depending on the tasks.
 A generic term covering a wide range of intervention strategies
designed to promote organizational health & adaptability to change.
OD aims to create the conditions of organizational functioning that
enable the organization to develop naturally & harmoniously.
 To reach the point where decision making is based on the authority
of knowledge rather than organizational position.
 To create or improve feedback mechanisms which continuously
monitor the external & internal environments in respect of the need
for change.
 To encourage high collaboration & low competition among
interdependent parts of the organization.
DECISION
MAKING
 To create conditions in which conflict among members is brought
out into the open & managed rather than covered up.
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21. Distinction Between OD & MD
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MANAGEMENT DEVELOPMENT
 Individual manager or group
of managers
 Developing a manager’s full
potential
 Poor performance by manager
 Lack of “ready made”
managers in succession plans
 Need to train new managers
TARGET
TYPICAL
GOALS
SYMPTOMS
ADDRESSED
 Planned program of
development through external
courses & suitable on site
experience
STRATEGY
 System or subsystem of
organization
 Increasing effectiveness of
work group/organization
 Ineffective performance of
organization in response to
change imperatives.
 Lack of flexibility in
organization & management.
 Problem-solving for work
groups
ORGANIZATINAL DEVELOPMENT
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22. Cont’d
8/2/2015 22
MANAGEMENT DEVELOPMENT
 Courses, training managers,
coaching on-sites, secondment
to other companies.
 The manager being developed
 Personnel & training
executives.
 Manager’s immediate
supervisor.
 Regular appraisal interviews
between manager & his
superior
PROCESS OF
INTERVENTION
OR ACTIVITIES
KEY INITIATORS
& MANAGERS
OF EFFORT
EVALUATION
 Transfer of learning
 Firms to have right climate for
applying new knowledge.
 Manager to retain motivation.
PROBLEMS &
CRITICISMS
 Team-building, confrontation,
meetings, survey feedback,
intergroup interfaces
 op management
 Personnel & Training
Executives
 OD practitioners/external
consultants.
 Establishment of feedback
system to ascertain objectives
being met
 OD requires willingness to
take risks.
 Changes might antagonize
workers.
ORGANIZATINAL DEVELOPMENT
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23. Learning Organization
 Learning organization is based on the need for organizations to develop
a capacity to do this, i.e. to learn from the environment & from
operational problems so that they are able to recognize the change
imperatives and how they may be responded to.
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 Learning organization consider the context which is leading to
problems & failures.
 Learning organization question the operating practices & procedures,
and explore the policy , cultural, attitudinal & constraints which
underline them.

24. Kolb’s Learning Cycle
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CONCRETE EXPERIENCE
OBSERVATION &
REFLECTION
APPLICATION OF CONCEPTS
IN NEW SITUATIONS
FORMATION OF CONCEPTS
 Basic of the cycle
 Past or new
experiences can be
used for further
learning
 To examine bad or good
experience and
frequency of
happening.
 What it means in terms
of learning cycle.
 To generalize individual
experience to be used in
other ways in terms of
principles & trends.
 To test the analysis of
experience by
applying the ideas &
principles.
 Application is active
experimentation by
modifying behavior
& beginning of the
new learning cycle.
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25. Kolb’s Experiential Learning Cycle
31/08/2014 25

26. Learning Cycle
31/08/2014 26

27. Characteristics of the Learning Organization
8/2/2015 27
Learning
approach to
strategy
Learning
climate
Self
development
Inter-
company
learning
 Organization development process to be designed as a learning
process. Mistakes to be valued rather than criticized.
 Management must change to supporting rather than
controlling or leading & encouraging direct involvement of all
workers.
 Training & development to be a high priority as they increase
the flow of ideas & information and develop the skills.
 Involves looking at best practice within the industry, adopting,
developing techniques & system to use within own organization
 The use of information to be regarded as a resource rather
than a control mechanism.
Informatting
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28. Cont’d
8/2/2015 28
Establishing
structures
Environment
al scanning
Participative
policy
making
Reward
flexibility
 The concept views organizational structures as temporary
rather than fixed, able to change & response to changing
conditions & exploit opportunities.
 Monitoring opportunities from the environment not only to be
the role of specialist department but to encourage through out
the organization. Internal exchange idea is that each
department view other departments/ individuals to be regarded
as customers whose needs to be identified & satisfied.
 All stakeholders with an interest in the organization to have a
right to participate in the policy setting of the organization.
 There has to be a flexible & open & rationale approach to
rewards system which shift the balance of power within the
organization away from salary as an indicator of power.
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29. Features of Learning Organization
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Learning
from past
experience
Learning
from others
Experimentat
ion
Disseminating
knowledge
 Scientific method of diagnosing &
resolving problems.
 Problems are addressed by
solutions & evidence rather than
intuition or guess work.
Learning
organization  Looking for innovative
approached to problem-
solving.
 Conducting post –
incident reviews &
encouraging reflection.
 Identifying the success or
failure factors from which
to learn.
 Looking at best practice & using
benchmarking
 Exploring learning opportunities
offered by customers, suppliers, etc.
 Through
education &
training
programs &
shared
approach to
information.
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Systematic
problem solving

30. Barriers to Organizational Development
8/2/2015 30
Lack of management
direction & vision
Structural
factors
Professsional
factors
Cultural
factors
Short - termism
Insensitivity to
slow change
 Lack of clarity in goals & objectives, resistance to change of
top management, failure of management will or support to
push through change
 Poor communication in tall structures & the excessive
departmentalism inhibit the flow and dissemination of ideas,
information & knowledge.
 Organization fail to recognize slow changes compared to
sudden changes in environment. OD encourage proactive
rather than reactive change.
 Dominance of established professional patterns & lack of
credence to challenge these views to open up new ideas.
 Lack of team-based approach, defensive style of
bureaucracies which rewards success & punish failure inhibits
risk-taking & leading to problems being hidden.
 Cost & budgetary savings due to financial constraints. Limited
resources tend to conflicts of interest among team members.
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31. 8/2/2015 31PKL
Thank You !!

32. Q & A
 1. ‘Organizational Development’ is concerned with improving the overall
levels of performance and effectiveness of an organization.
Identify and appraise the different characteristics needed to ensure
Organizational Development is successful within an organization.
[10 marks]
Organizational Development is also an essential process within the
establishment of the ‘learning organization’.
Discuss the key features of a ‘learning organization’. [10 marks]
 2. (a) Explain the term ‘Organizational Development’
You are one of the managers of an international chain of hotels and wish
to introduce the concept of Organizational Development. [5 marks]
(b) Critically evaluate the barriers to organizational development that you
need to overcome to make this strategy work. [15 marks]
8/2/2015 32PKL

33. Q & A
 3. (a) Explain the three main stages, according to Lewin, in the creation of
programs of organizational development. [10 marks]
(b) Discuss the advantages and disadvantages of using an external
consultant to promote effective organizational development. [15 marks]
 4. (a) Grid training is a useful part of wider programs of organizational
development. It is derived from the Blake and Mouton Managerial Grid and
helps managers achieve maximum concern for people and production.
Explain the main features of a program of organizational development.
[10 marks]
(b) Refer to the lecture notes.
Evaluate the usefulness of a specific intervention strategy, such as “Grid
Training” within overall programs of organizational development. [15 marks]
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34. Q & A
 5. “Organizational development is concerned with attempts to improve
the overall performance and effectiveness of an organization.” (Mullins)
Explain the differences between organizational development and
managerial development. [10 marks]
Assess the problems caused by an unplanned approach to organizational
development. [15 marks]
 6. Systems thinking are the approach to management that integrates
principles & practices needed to create a “learning organization”.
Critically analyze the main features of a systems approach to
organizations. [25 marks]
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35. Q & A
 7. There are many ways in which manages can contribute to the
development of their organization. An alternative is to appoint a “third-
party”, an external consultant, to stimulates and guide the process.
(a) Explain the difference between “organizational development” and
“management development”. [10 marks]
(b) Examine the advantages and disadvantages of using third party
intervention as a way of achieving organizational development.
[15 marks]
 8. Organizational development is concerned with improving the overall
levels of performance and effectiveness of an organization.
Discuss the key factors that might constrain organizational development.
[10 marks]
Examine the impact that employee’s commitment has on the level of
work performance. [15 marks]
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36. Q & A
 9. Organizational development is a generic term, covering a wide range
of intervention strategies, designed to promote organizational health
and adaptability to change.
Describe and justify the five operational objectives of an organizational
development program. [10 marks]
Identify and analyze five of the key distinctions between “organizational
development” and “management development”. Use relevant concepts
and theories to support your answers. [15 marks]
 10. For organizations to adapt successfully to the turbulent environments
of the modern day, they have to recognize and accept the need for
change. The concept of the “learning organization” is based on the need
for the organizations to develop a capacity to do this.
Explain and discuss the concept of the “learning organization”, using
relevant theory and workplace examples to support your answer.
[20 marks]
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37. Q & A
 11. Explain the barriers to change that are found within organizations
and discuss how these can be overcome. Use relevant theory and give
examples from the workplace to support your answer. [20 marks]
 12. You are one of the managers of an international chain of hotels. The
organization is in the process of changing its strategy from competing on
price to one of service excellence, customer loyalty and customer
retention. This will involve changes to employees’ work practices.
Discuss the change strategies that the organization can use to introduce
these changes and outline the types of change that might affect
employees and the organization. Use relevant theory to support your
answer. [20 marks]
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