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Organizational Change and Development

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Organizational Change and Development

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  2. 2. Organizational Change Organizational change is the process by whichorganization move from their present state to somedesired future state to increase effectiveness. When an organization system is disturbed by someinternal or external forces change frequently occur or anyalteration which occur in the overall work environment ofan organization. 14-2
  3. 3. CHARACTERSTICS OF O.C. Change happen for the pressure of both internal and external forces in the organization. Change in any part of the organization affect the whole organization. Change may affect people , structure, technology, and other element of the organization. Change also affect the rate of speed and degree of significance of the organization. Change may be reactive or proactive. 14-3
  4. 4. The Evolution of StarbucksIn the beginning they had only just a shop thatsold some selected coffee beans.As Starbucks growing, they realized that theinformal techniques were not sufficient and Howard Schultzneeded to have a more formalized with peopleand places.Now Starbucks was the biggest coffee chainnetwork in the world with more than 15000 Dave Olsenshops in over 44 countries. And they grown toofast.They adopting the Italian culture and make some important changes in organization. Exploring Behavior in Action Dawn Pinaud 14-4
  5. 5. Change Forces INTETRNAL ExTERNAL FORCES FORCESWork force TechnologyManagerial ChANgE Marketingpersonnel FORCES conditionsManagement Social changesstructure Political forcesAvoid developinginertia 14-5
  6. 6. Internal Pressures for Change Work force Avoid developing inertia Managerial Management personnel structure 14-6
  7. 7. External Pressures for Change Technological Political advances Forces Marketing Social conditions changes 14-7
  8. 8. Companies’ ResponsesManagerial to Pressures for “Green”Advice Policies and Practices Taking as it positive way: It create a healthy image in customers. It help in cost cutting. Energy saving in the office. Help in reducing carbon in environment. 14-8
  9. 9. Change Agents• A Persons in organization responsible for managing change activities.• Can be managers or non managers, current employees, newly hired employees or outside consultants. 14-9
  10. 10. Process of Planned ChangeKurt Lewin Unfreezing Moving Refreezing• Provide rationale • Provide information • Implement new for change that suspects evaluation systems• Create minor proposed changes • Implement new levels of • Bring about actual hiring and promotion guilt/anxiety about shifts in behavior systems not changing• Create sense of psychological safety concerning change 14-10
  11. 11. Coca-Cola Is Finding a New Fizz Experiencing Strategic OBNeville Isdell Sandy Douglas Coca-Cola is changing its culture, and also enhance its product line to better satisfy the demand of customers. 14-11
  12. 12. Speed of Change Urgency Degree of supportCriteria to Amount and complexity of changeConsider Competitive environment Knowledge and skills available Financial and other resources 14-12
  13. 13. Resistance to Change Effort to block new ways of doing things Four FactorsIndividualResistance Group Resistance Organizational Resistance 14-13
  14. 14. Individual Resistance•Below are stated some reasons why people resistschanges. Some of these appear to be rational oremotional. These reasons are:-•Economic factors•Habits•Insecurity•Lack of communication•Extend of change•Psychological factors•Social factors 14-14
  15. 15. Group Resistance Most organizational changes have impact on formal groups in the organization the main reason why the groups resists change isthat they fear that their cohesiveness or existence is threatened by it. 14-15
  16. 16. Organizational Resistance Organizational resistance means the change is resisted at the level of the organization itself.Some organization are so designed that they resist new ideas, this is specifically true in case of organization which are conservative in nature.Majority of the business firm are also resistance to changes. The major reason for organizational resistance are:-•Threat to power•Group inertia•Organizational structure•Threat to specialization•Resource constants•Sunk costs 14-16
  17. 17. Minimizing Resistance to ChangeCommunication • Highest priority and first strategy for change • Improves urgency to change • Reduces uncertainty (fear of unknown) • Problems -- time consuming and costly 14-17
  18. 18. Minimizing Resistance to ChangeCommunication • Provides new knowledge and skills Training • Includes coaching and action learning • Helps break old routines and adopt new roles • Problems -- potentially time consuming and costly 14-18
  19. 19. Minimizing Resistance to ChangeCommunication • Increases ownership of change Training • Helps saving face and Employee reducing fear of Involvement unknown • Includes task forces, search conferences • Problems -- time- consuming, potential conflict 14-19
  20. 20. Minimizing Resistance to ChangeCommunication • When communication, training, and Training involvement do not resolve stress Employee Involvement • Potential benefits Stress • More motivation to Management change • Less fear of unknown • Fewer direct costs • Problems -- time- consuming, expensive, doesn’t help everyone 14-20
  21. 21. Minimizing Resistance to ChangeCommunication Training • When people clearly lose something and Employee won’t otherwise support Involvement change Stress Management • Influence by exchange-- reduces direct costs Negotiation • Problems • Expensive • Increases compliance, not commitment 14-21
  22. 22. Minimizing Resistance to ChangeCommunication Training • When all else fails Employee Involvement • Assertive influence Stress • Firing people -- radical Management form of “unlearning” Negotiation • Problems • Reduces trust Coercion • May create more subtle resistance 14-22
  23. 23. Organization Development (OD) A planned, organization-wide, continuous process designed to improve communication, problem solving, and learning through the application of behavioral science knowledge• Planned change• Long range change• Problem solving• Team building• Feedback 14-23
  24. 24. Basic Organization Development Model Diagnosis of Situation Introduction of Feedback interventions Progress Monitoring 14-24
  25. 25. Organization Development Interventions Organization DevelopmentRelationship Techniques Structural Techniques Job Redesign T-group Training Management by Objectives Team Building Supplemental Organizational Survey Feedback Processes 14-25
  26. 26. Relationship TechniquesT-group Training Team Building Survey Feedback 14-26
  27. 27. StructuralJob RedesignJob Redesign Techniques Management by Management by Objectives (MBO) Objectives (MBO) Supplemental Supplemental Organizational Organizational Processes Processes 14-27
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