Organizational Change
Presented by Team 9
Organizational Change
Definition
Any alteration to the Organizational culture Business processes
Three components of OC
Structure Technology People
Physical environment
Job design /
responsibilities Staff skills / knowledge Policies / procedures
Phases of Organizational Change
Ending
Transition
Communicate reason for change
Transition
Ending Beginning
Identifying Priorities and resistance Minimize obstacles
Beginning
Sustain change Collect feedbacks
Model for Organizational Change
Force Field Analysis
Developed by Kurt Lewin, German American
Pshycologist Significant contribution to the fields of social psychology, organizational development, process management, and change management. Framework for looking at the factors/forces that influence a situation Driving forces
Driving or pushing for change
Hindering forces or Restraining forces Blocking movement towards the goal
Status quo is the result of the opposing forces
Lewins Force Field Analysis model
Force Field Analysis ( Contd)
FORCES FOR CHANGE Equilibriu m
FORCES FOR STATUS QUO --Lack of time -- No exercise facility --No interest in physical activity
--Weight Gain --Lacking energy --Diagnosed potential heart disease --Stressful job
Lewins change model
Lewins change model
Unfreezing
Encouraging individuals to disregard old behaviors by shaking up the equilibrium state that maintains the status quo Moving New attitudes, values and behaviors are substituted for old ones Refreezing New attitudes, values and behaviors are established as the new status quo
Forces for change
External Forces
Globalization Workforce diversity Technological change Managing ethical behavior
Internal Forces
Declining Effectiveness Crisis in organization
Changes in Employee expectations
Changes in work climate
Forces for change
Characteristics of organizations:
Adaptiveness Flexibility Responsiveness
Two forms of change
Planned change Unplanned change
Forces of change
External forces
Internal forces
PROCESS OF CHANGE
Organizations respond to change by continuing to
do what they are good at
Change process involves harnessing the energy
of diverse individuals
Most changes will be met with resistance
RESISTANCE TO CHANGE
Major Reasons Fear of the unknown
New situation introduces ambiguity Occurs when there is little communication about
change
Fear of loss
Jobs, status Loss of positive qualities (such as autonomy) in
existing job
RESISTANCE TO CHANGE
Major Reasons Fear of failure
Increased task difficulty. Questioning of owns own
competencies Not measuring up to elevated expectations Fear of change itself not taking place
Disruption of interpersonal relationships
RESISTANCE TO CHANGE
Major Reasons Personality conflicts
Negative personality engenders negative reactions
Politics Shift of existing balance of power Threat of losing political advantages Cultural values
Viewing strategic initiatives from the standpoint of management teams ideologies Difficult to overcome
MANAGING RESISTANCE TO CHANGE
Traditional View
Resistance to change is something to be overcome
Contemporary view
Resistance is a form of feedback and can be used productively to manage change
3 Key strategies
Communication
Participation
Empathy & Support
MANAGING RESISTANCE TO CHANGE
COMMUNICATION
Encourage open communication Employees need to know rationale behind change Pay attention to informal communication channels
PARTICIPATION
Employees become involved in the change Feeling of ownership
Participation increases commitment
MANAGING RESISTANCE TO CHANGE
EMPATHY AND SUPPORT
Active listening Expression of concerns Emotional support Counselling
Some resistance is inevitable
Proper planning to deal with it early in change process
Scope for Change
Incremental Change Transformational Change
Relatively small scope Modification in work procedure Fine tuning of the organization Making small improvements Change of a large scale Organizational restructuring Moves from an old state to a new known state Involves a series steps
Strategic Change
Organization changes to a radically different state The organization's mission, culture etc., will change dramatically
Role of Change Agents
Change Agent - the individual or group who undertakes
the task of introducing and managing a change in an
organization
Internal
External
Build relationships:
Within the leadership team Between the team and organizational members Between the team and key environmental players
Change Agents
Internal
Advantages: Knows the structure of the organization Careful moves
External
Advantages: Outsiders objective view Impartiality
Disadvantages: Accused of favoritism Objective View
Disadvantages: Limited knowledge about the organization May be viewed with suspicion
Characteristics of Change agents
Young(25-40 age range)
Flexible
Balance of technical and interpersonal skills Tough decision makers Energize people More than one leadership style Comfortable with uncertainty
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