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MANAGING ORGANIZATIONS            Session 13: Organizational Change                                                Sourav ...
2REVISITING APPEX CORPORATION  Why did Shikhar Ghosh make so many structural changes in Apex Corporation ?  Were all the c...
3STRUCTURAL CHANGES AT VFM SOLUTIONS   If VFM solution decides to sell computers to corporate customers        (option 1),...
4CORPORATE SALES – OPTION 1                   VIKAS      MANISH                    FRANCIS                                ...
5CORPORATE SALES – OPTION 1                   VIKAS       MANISH                    FRANCIS                               ...
6CORPORATE SALES – OPTION 2                   VIKAS       MANISH                    FRANCIS                               ...
7CORPORATE SALES – OPTION 3                   VIKAS       MANISH                    FRANCIS                               ...
8CORPORATE SALES – OPTION 4                   VIKAS       MANISH                    FRANCIS                               ...
9CORPORATE SALES – OPTION 5                      ADVANTAGES                                               1. No senior lev...
THREE DIMENSIONS FOR CONSIDERATION                                                        10DURING STRUCTURAL CHANGES 1   ...
11SERVICES – VARIOUS OPTIONS                    VIKAS       MANISH                    FRANCIS                             ...
12SERVICES – VIABLE OPTION ?                                     ADVANTAGES                                               ...
13A PROCESS MODEL OF ORGANIZATIONAL CHANGE                                       Integrate as regular                     ...
14ORGANIZATIONS AND INDIVIDUALS SEEM TO RESIST CHANGE                                             INTERDEPENDENT          ...
OVERCOMING RESISTANCE IS CRITICAL FOR                                                    15MANAGING CHANGE                ...
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Man org session 13_org change_9th august 2012

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Man org session 13_org change_9th august 2012

  1. 1. MANAGING ORGANIZATIONS Session 13: Organizational Change Sourav MukherjiPGP 2012-14 Section C & E Associate Professor of Organization & StrategyTerm 1:June-September 2012 Indian Institute of Management Bangalore, India
  2. 2. 2REVISITING APPEX CORPORATION Why did Shikhar Ghosh make so many structural changes in Apex Corporation ? Were all the changes in structure necessary ? What did he achieve or fail to achieve with so many changes ? © S Mukherji
  3. 3. 3STRUCTURAL CHANGES AT VFM SOLUTIONS If VFM solution decides to sell computers to corporate customers (option 1), what kind of change should it bring about in its organization structure ? © S Mukherji
  4. 4. 4CORPORATE SALES – OPTION 1 VIKAS MANISH FRANCIS PARTHA SOHO CALL SALES CENTRE © S Mukherji
  5. 5. 5CORPORATE SALES – OPTION 1 VIKAS MANISH FRANCIS PARTHA NEW APPOINTEE CORPORATE SALES SOHO CALL SALES CENTRE © S Mukherji
  6. 6. 6CORPORATE SALES – OPTION 2 VIKAS MANISH FRANCIS PARTHA NEW APPOINTEE CORPORATE SALES SOHO CALL SALES CENTRE © S Mukherji
  7. 7. 7CORPORATE SALES – OPTION 3 VIKAS MANISH FRANCIS NEW APPOINTEE PARTHA CORPORATE SALES SOHO CALL SALES CENTRE © S Mukherji
  8. 8. 8CORPORATE SALES – OPTION 4 VIKAS MANISH FRANCIS NEW PARTHA APPOINTEE CORPORATE SALES SOHO CALL SALES CENTRE © S Mukherji
  9. 9. 9CORPORATE SALES – OPTION 5 ADVANTAGES 1. No senior level appointment Less risky, less resources VIKAS 2. Using existing resources, knowledge 3. Promotion for Partha Succession planning MANISH FRANCIS DOUBTS / CHALLENGES 1. Is Partha ready for this role yet ? 2. Does he need to be trained ? 3. What is the size of opportunity ? PARTHA 4. Will the new opportunity get adequate focus from VFM ? SOHO CALL CORPORATE SALES CENTRE SALES © S Mukherji
  10. 10. THREE DIMENSIONS FOR CONSIDERATION 10DURING STRUCTURAL CHANGES 1 Strategic Objective • What is the size of proposed business ? • How does the proposed change enable / facilitate the objective of the organization / business unit • Is the change consistent with business objective ? • What are the interdependencies with current job ? Are there any conflict of interests ? 2 Job Content Are there complementarities ? • Can the new job be done through existing set of skill sets and competencies ? • What is the extent of education and training necessary for existing employees to make this transition ? • Have we addressed the aspirations and apprehensions 3 Human dimension of of existing employees ? change • Has there been adequate communication to set expectations? • What are the implications for political and informal relations in the organization ? • What is likely to be the relationship between new recruits and existing employees of the organization ? © S Mukherji
  11. 11. 11SERVICES – VARIOUS OPTIONS VIKAS MANISH FRANCIS PARTHA SERVICE MANAGERS SERVICE SOHO CALL ENGINEERS SALES CENTRE © S Mukherji
  12. 12. 12SERVICES – VIABLE OPTION ? ADVANTAGES 1. Less conflict of interest 2. Similar nature of job / role VIKAS 3. Manish has capacity to take additional responsibility MANISH FRANCIS DOUBTS / CHALLENGES 1. Integration between sales & service 2. Conflict resolution PARTHA SOHO CALL SERVICE SALES CENTRE MANAGERS SERVICE ENGINEERS © S Mukherji
  13. 13. 13A PROCESS MODEL OF ORGANIZATIONAL CHANGE Integrate as regular organizational practices INSTITUTIONALIZATION Evaluate, monitor impact Fine tuning Refreeze Level of Planning specific steps Support for IMPLEMENTATION Identify change agents Change Identify potential resistance Address apprehensions Preparation for hardships PREPARATION Creating the need for change Unfreeze Disturbing the status quo Time © S Mukherji
  14. 14. 14ORGANIZATIONS AND INDIVIDUALS SEEM TO RESIST CHANGE INTERDEPENDENT SUBSYSTEMS STRUCTURAL INERTIA SECURITY / HABIT ECONOMIC FACTORS GROUP NORMS Individual Organizational resistance resistance to to change change SELECTIVE FEAR OF INFORMATION UNKNOWN THREAT TO POSITION THREAT TO PROCESSING OF POWER EXPERTISE THREAT TO RESOURCE ALLOCATION © S Mukherji
  15. 15. OVERCOMING RESISTANCE IS CRITICAL FOR 15MANAGING CHANGE Different ways of overcoming resistance to change  Evangelize and communication  Address apprehensions, increase transparency, articulate rational, temporary sacrifice / inconvenience for greater good  Participation  Increases “felt-need”, collective responsibility, process fairness, means to a desired goal  Facilitation and support  Education, training, re-skilling, counseling  Negotiation  Addresses the power equations, reward packages  Cooptation  Peer pressure  Coercion © S Mukherji

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