CHANGEAnderson, D and Anderson, L.A. 2001. Beyond change management : advanced strategies for today’s transformational leaders. SanFransisco: Jossey-Bass A Wiley CompanyCameron, E. and Green,M. 2009. Making sense of change management : a complete guide to the models, tools and techniques oforganizational change ,2nd ed. London & Philadelpia: Kogan PageSchein, E.H. 2006. Organization Development. San Fransisco: John Wiley & SonsCummings, T.G. & Worley, C.G. 2005. Organization Development and Change, 8 edition. South Western: Thomson CorporationJonesch, G.R. 2007. Organizational Theory, Design and Change, 5 edition. Prentice Hall
Key Elements of Leadership Influence Leaders Leadership Organizational Followers Objectives Change People
Defining Organizational ChangeOrganizational change: the process by whichorganizations move from their present state tosome desired future state to increase theireffectiveness (Jonesch, 2007)
Learning Objective• Describe and discuss the multi-dimensional nature of organizational change• Analyze change situation in terms of the different type of change experience• Identify approach for organizational change
The Drivers of Change Environment MarketplaceRequirements for Success Business Imperatives Organizational Imperatives Cultural Imperatives Leader and Employee Behavior Leader and Employee Mindset
Forces for ChangeForce Examples • More cultural diversityNature of the work force • Increase in professionals • Many new entrants with inadequate skills • More computers and automationTechnology • TQM programs • Reengineering programsEconomic shocks • Dot-com crashes • Ethics scandalsCompetition • Interest rate fluctuations • Foreign currency fluctuations • Global competitors • Mergers and consolidations • Growth of specialty retailers
Forces for Change:Environmental ForcesPut pressure on a firm’s relationships with customers,suppliers, and employees.Environmental forces include:– Technology– Market forces– Political and regulatory agencies and laws– Social trends
Forces for Change:Internal Forces• Arise from events within the company.• May originate with top executives and managers and travel in a top-down direction.• May originate with front-line employees or labor unions and travel in a bottom-up direction.
Model of Change Sequence of EventsEnvironmental ForcesMonitor globalcompetition, and Implementother factors Need for change Initiate change change Evaluate Facilitate search, Use force field analysis, Internal problems and creativity, idea tactics for overcoming Forces opportunities, champions, venture resistanceConsider plans, define needed teams, skunk works andgoals, company changes in idea incubatorsproblems, and technologyneeds products, structure, and culture
Types of Change• Planned Change--change that is anticipated and allows for advanced preparation• Dynamic Change--change that is ongoing or happens so quickly that the impact on the organization cannot be anticipated and specific preparations cannot be made
Types of Organizational Change• Anticipatory changes: Planned changes based on expected situations• Reactive changes: Changes made in response to unexpected situations• Incremental changes: Subsystem adjustments required to keep the organization on course• Strategic changes: Altering the overall shape or direction of the organization
Tuning• The most common, least intense, and least risky type of change• Also known as preventive maintenance and kaizen (continuous improvement)• Key is to actively anticipate and avoid problems rather than waiting for something to go wrongAdaptation• Incremental changes that are in reaction to external problems, events, or pressures
Reorientation• Change that is anticipatory and strategic in scope and causes the organization to be significantly redirected• Also called “frame bending” (Nadler and Tushman)Re-Creation• Intense, risky, and decisive change that reinvents the organization• Also called “frame breaking” (Nadler and Tushman)
Basic Approaches toOrganization Change1. Structural2. Technical3. BehavioralDeveloping strategy includes planning activitiesto resolve difficulties and build on strengths.
Structural Approach to Change• Changes that relate elements of organization to one another.• Includes removing or adding layers to hierarchy.• Downsizing associated with restructuring.• Changes can involve decentralization and centralization.
Technical Approach to Change• Changes in machinery, methods, automation, and job design.• Changes help companies become more productive.
Behavioral Approach to ChangeEmphasizes better utilization of humanresources by improving:• Morale.• Motivation.• Commitment of members.OD traditionally associated with behavioralstrategies.
OD Practitioner Behavioral Structure Technological Strategy Strategy StrategyChange Attitude Change Structures Change Production and Values and Design and MethodsNew Behaviors New Relationships New Processes Improved PErformance