mod 2 orgsnl change

8/7/2019 mod 2 orgsnl change

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Module 2

Organizational change


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Models of organizational changeyLewins view on organization: Kurt Lewin- two opposite forces-

equilibrium- seeking promotion change: driving force, maintainingstatus quo: restraining force.

yModel 1: Kurt Lewins & Friends 3 step model:

y2 ideas about change:

yFirst idea: status quo resultant of 2 opposing forces. Eg:production level of manufacturing company- some forces- higherlevel- some forces lower level


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yIdea 2: model of the change process itself. 3 stage process

y

Unfreezing- the old behavior (or situation), moving to a newlevel of behavior & refreezing the behavior at the new level.Eg: confidence- implementing- permanent in built nature

y 3 stage model:

unfreeze

freeze

refreeze


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yStage 1: unfreeze creates pain & discomfort- causes guilt &

anxietyyStage 2: driving force- stronger/ weaker/ both. Change

occurs increasing the driving force alone- counter parting

restraining forceyStage 3: refreezing primary task- no lasting change


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Model 2: Kurt Lewins Force Field Analysis

y Force field DiagramChange Issue

Driving force Restraining Force

moderate

Strong force

equilibrium

changeNo change

weakweak


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y2 forces driving & restraining

y

Forces include: people, habits, customs & attitudesyFFD- any level: personal, project, organizational- visualize in

favor or against

yTop- planned change issue. Driving force- push- organization-new state of affairs, ext environment (globalization, IT,

changing workforce)yRestraining forces- status quo- resistance to change- employee

changing behavior


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yUses of FFD:

1. Investigate balance of power involved in the issue2. Identify opponents & allies

3. Identify how you can influence each target group

ySteps in FFD:

1. Describe the current situation

2. Describe the desired situation3. Identify where the current situation will go- if action is

implemented


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4. List all forces driving change towards desired situation

5. List all forces resisting change towards desired situation6. Discuss & interrogate all forces: are they valid? Can

they be changed? Which are the critical ones?

7. Allocate scores to each of the scores. Eg: extremelyweak: 1,extremely strong 10

8. Chart the forces, left DF & right RF

9. Discuss how change can reduce restraining forces

10. Increasing DF & reducing RF may also result in some

other forces/ create new ones


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System approach

Men m/c

Material

Money

Methods

InputsInputs

Productivity

Activities

TransformationTransformation Productivity Efficiency

OutputsOutputs

Org decision- affects internal & external groups significant ways- managementmust understand & anticipate- DM


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ySystem theory- solves problem- diagnosing- i/p, Xmn, o/p &

f/byAttempts- view org single unified, purposeful entity,

composed of interrelated parts

yGives manager a way of looking at an organization- as a whole& as apart of an activity. Eg: production department-marketing department- no anticipation about CB- hampered

yThis theory highlights underlying relationships

yFacilitates thinking b4 acting, evaluates the impact of their

actions- maintains good balance- org


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yLimitations:yBroad philosophical perspectives- bridges academia & practical

problemsyObjective- not influenced by one best way ,manager decide

things for others

yOver emphasis on oneness, coordinative & harmony of theorganizations- org inbuilt org conflicts


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y7 stage model:

yModification of Lewins model. 3 stage model expanded to 7stage model

yPhase 1:developing a need for change- unfreezing phase

yPhase 2: establishing a change relationship. Eg: client system-needs help- change agent- establishing a working relationship

y

Phase 3: clarifying/ diagnosing client's system problemyPhase 4:examining alternative routes & goals, establishing

goals & intentions of action


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yPhase 5 :transforming intentions- actual change efforts. Phase3,4,5- Lewins moving phase

yPhase 6: generalizing & stabilizing change- refreezing phase

y Phase 7: achieving terminal relationship- terminating customer

client relationshipyTo ensure complacency & righteousness Kotters 3 part

framework:

1. Defrost the status quo2. Take actions bring about change

3. Anchor the changes in corporate culture


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ADKAR Model

Change

Awareness

Desire

KnowledgeAbility

Reinforcement

Model describes 5 required

building blocks for change-

realized successfully on

individual level


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yAwareness: of why change is needed

y

Desire: to support & participate in the changeyKnowledge: of how to change

yAbility: to implement new skills & behavior

yReinforcement: to sustain the change

yGoal oriented change management model- allows mgmnt- focus

on their activities on specific business resultsyImparting communication & training activities- result of org

change- useful in imparting planning & execution of work


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yADKAR model can be used to:

y

diagnose employee dimension to change (resistance to change,transition through process, creates successful action plan,develop change management)

yBusiness dimension to change (need or opportunity is defined,scope & obj is defined, solutions for business, new processsystem are developed, solution is implemented in the org)

yPeople dimension to change (top level ,manager & employee asa whole- ADKAR model)


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Power of ADKAR for managing change

yFocus on the first element- root cause of failure

yWhere process is breaking down & elements are being

overlookedyFocuses on maximum probability for success

yPlans effectively for a new change/ diagnose y currentchange is failing

yCorrective action taken- action implemented successfully


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Managerial approaches for implementing changeyManaging change is more than reactive & doing damage

control.

yBesides reacting- mgr-consciously initiate &implementchanges- to meet new demands- crated by changedcircumstances

y3 broad approaches- creates change- assumptions differ frompeople, systems change, specific strategies & kind of

response


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Top down approachyMost common way- implement change- pushing down the

hierarchy. Solutions/ decisions- top- passed on through the

formal channels- Unilateral decision . 2 assumptionsy1stassumption: reason for changes existing in the organization

(eg: low performance, high absenteeism, low productivity

rate)- can be traced through single tangible factor-changes instructure, reporting system & procedures


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Perspectives ofOrganizational

change

Cont

ing

enc

yperspective

Institutionalperspective

Resourcedependenceperspective

Populationecology

perspective


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Resource dependence perspectiveySurvive in the industry- organizations- resource- strategies

to control environment-reduce dependency on organizations-

internal & external strategies.yEg: procuring raw materials from other company

l1


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Slide 21

l1 lakshmi, 3/28/2011


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Internal strategies

Internalstrategies

Domainchoice:

Strategy to enternewmkt/ industry

Recruitment

Hiringpeople fromexternal orghelps in

reducing dependence onthe org

Environmental scanning

Monitoringchanges intheenvt &anticipatingto the envt

Buffering,

Smoothing,

Rationing, : strategies-protectingproductionprocess-

fluctuations in demand-maintaining inventory, using

multiple suppliers are

included

Geographical dispersion

Relocation ofbusinessto other location-

market share increases


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External strategiesAdvertising

Enhancing visibility- tomaintain & enhance mkt share

Advertising

Enhancing visibility- tomaintain & enhance mkt share

Contracting

Aimed to reduceuncertainty- longterm relationship-

suppliers

Contracting

Aimed to reduceuncertainty- longterm relationship-

suppliers

Co-opting

Induct people fromo/s to BOD- increase

the reputation

Co-opting

Induct people fromo/s to BOD- increase

the reputation

Coalescing

Possessing benefitsthrough M&A,

strategic alliance &JV

Coalescing

Possessing benefitsthrough M&A,

strategic alliance &JV

Lobbying

Involvesinfluencing

regulatory agencies:govt policies-benefits org

Lobbying

Involvesinfluencing

regulatory agencies:govt policies-benefits org


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Population ecology perspectiveyPopulation- organization plays in a particular sector- occupies

ecological niche. Organization to survive in the industry-

multiple niches. 3 associated concepts - leads to changeVariation

Subsumes-org in

terms of 7s

Variation

Subsumes-org in

terms of 7s

Selection

Selecting requiredfeatures

Selection

Selecting requiredfeatures

Retention

Retainthefeatures thatare

needed by theenvnt

Retention

Retainthefeatures thatare

needed by theenvnt


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Institutional perspectiveySpecial relevance to social norms, values & culture of the

organization. Constitutes institutional environment of

organizations- given more importance than market competitorsunder this perspective- also called as symbolic elements

yInstuitionalization- process- organization adopt- specific

structures- external legitimacy- due course-org resemble eachother- isomorphism- org resembling each other- complyinglaws & regulations. 3 classifications:


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Coerciveisomorphism

OCcomplyingwithgovt legislations &

regulations,structural features-pressure from state,other org/ society atlarge

Mimeticisomorphism:

OC initiated by otherorganizations

(features by imitatingother successful org-cope upthe pressure- PEST) & obtainlegitimacy

Normativeisomorphism:

OCthroughinfluence of

professionalmanagers/ specialist,structural features-pressure from state-reinforce power ofprofessional bodies


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Understanding the change process

yOC- succeeds- individual understands about the change-individual change tends to happen over a period of time

ySteps to understand change:


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Preparation

phase

Contact stage

Earliest encounter- changemay take place/already

takenplace

Awareness stage

Personknows thatchange-

contemplated

Acceptance

phase

Understanding stage

Person- some degree ofcomprehension ofnature

& intent ofthe change

Positive perceptionstage

Developingpositiveviews aboutchange

Commitment

phase

Installation stage

Change implemented,operational

Institutionalizationstage

Change- longhistory ofworth, durability,

implemented in operations

Internalizationstage

Highly committed tochange- congruentto

personal interest,goals& value system


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8 step model for OC


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Leading the change process1. Really understand & clarify mutual expectations about the level

of detail & cost that project requires

2. Consultant or a project manager, agree expectations on a

pragmatic basis3. Assume that situations can be improved- look at ideal situations

4. New overview analysis- suggests new better ways & techniques

5. Detailed job analysis

6. Involve people- less job secure


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Facilitating changeAnalyze org&

need for change

Create a sharedvision&common

direction

Developparticipativeimplementation

process

Support strongleader role

Line uppoliticalsponsorship

Craftanimplementation

plan

Develop enabling

structures

Communicateinvolve people &

be honest

Reinforce &institutionalize

change


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Resistance to changeyDefined as resistance as an inevitable response to any major

change. Individuals naturally rush to defend the status quo ifthey feel their security or status are threatened

yNature of resistance:

yActive resistance: finding fault, ridiculing, appealing to

fear & manipulatingyPassive resistance: agreeing verbally but not

following through, feigning ignorance & withholding info.


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3 levels of resistanceyIndividual resistance

yOrganizational resistance

yGroup resistanceyIndividual resistance: sources of resistance: perceptions,

personalities & needs


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Habit

Programmedresponse

Confrontedwithchange-accustomedhabit-resistance. Eg:usual route

Security

People- highneed for

security-resistchange-threatenssafety

Eg: company-technology

EconomicFactors

Changes-lower- income.Changes in jobtask/establishedwork routines

Fear of theunknown

School- college-first day inafirm. Qualitymanagementprogram-negative attitude

Selectiveinformation

Process

Individual

shapes- ownworld- resistchange-hearwhatwe wantto hear-qualitymgmnt-expressing

im

portance


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Group resistance

Members ignorenegativeinformation- evenif it s wrong

Indiv wants to change-groupnorms constraint-individual unionmember willingtoacceptchange ofmgmnt- union dictates

Members ofcohesivegroup- wishto keepthings,members,task

Changes altersinteractionb/wgroupmembers dueto change intask&

role relationshipGroupnorms

Groupcohesiveness

Groupthink

& escalationof

commitment

Groupinertia


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Intervention strategies for organizational changeyUnderstanding organizational Development (OD)

yConcerned with helping managers plan change in organizing &

managing people- develop coordination, commitment & competenceyPurpose is to enhance both the effectiveness &well being of

their members- planned interventions- through structure &

systems using behavioral science


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OrganizationalDevelopment

Profoundchange

Long lastingimprovement

Value loaded

OD consultants- values-cooperation- conflict, selfcontrol,participative -

authoritative

Diagnosis/prescriptioncycle

sick organizations

diagnosepills

Prescribe intervention&monitor progress

Process oriented

OD specialist-

problem solving, DM,conflicthandling,

trust,power sharing&career development


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Developing learning organizationyLO- places, mechanisms & processes- enhance their

capabilities- work for it- achieve sustainable objectives-themselves & communities they participate

yNot simply- open to creative thought-tap knowledge- abilityto think critically & creatively, ability to communicate the

ideas & concepts, cooperate with human beingsyLearning is an ongoing, creative process for its members


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yLO- single loop & double loop

ySingle loop: learning- organizational productivity & capacity toachieve set objectives- routine behavioral learning. learning

without significant change

yDouble loop: reevaluates the nature of org objectives, values& beliefs- change in the organizational culture

yAdaptive learning: adopt to environmental changes- difficulty-assumptions of cultural values & org structure

yGenerative learning: creativity & innovation- beyongd adopting

to change & anticipating change


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yTheoretical foundation- characteristics of LO is:

Characteristicsof LO

Culture offacilitating

change

Systemsthinking

Presence oftension


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1. Presence of tension: tension- catalyst or motivational need

to learn- stems gap b/w org vision & reality2. The systems thinking: LO recognizes- shared values- of

employees- openness to new idea & external environment

3. Organizational culture conducive to learning: OC- highvalue of learning- empathies- genuine concern for & inemployee suggestions & innovations- operationalized throughreward system


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YLO?yCope up with changing environment & uncertaintyyTo be more flexible & take advantage of the opportunities

yTo be more innovative

yTo make the most of the skills & talents of staff

How do organizations learn?y5 characteristics for building a learning organization


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Personalmastery

Mentalmodels

Buildingsharedvalues

Teamlearning

Systemthinking


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ySystem thinking: analyzing how the org operates- actioncreating problem

yPersonal mastery:by being committed to lifelong learning-more realistic, focusing on becoming best person- strive for

commitmentyMental model: must be managed- prevents new & powerful

insights & organizational insights- focus on openness- real

change cannot be implementedyBuilding Shared Value: visions cannot be dictated- built in- it

fosters long term relationship


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yTeam learning: should know importance of team work-organization cannot learn- of team does not come together &

learn- developing ability to create desired resultsyRules for LO:

1. Thrive on change: distinguish who succeeds & fails2. Encourage experimentation: learning- experimentation

3. Communicate success or failure: learning- knowledge- spread

quickly & efficiently- company should learn from mistakes

4. Facilitate learning from surrounding environment: internal

sources- employees teams, ext- consultancy, customers


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5. Facilitate learning from the employees: employee-themselves- more often- knows- area of improvisation

6. Reward learning: learning culture- reward- breakthrough& initiative-performance appraisal- org- commitment- to

promote acquisition of new skills, teamwork, individualeffort

7. A proper selfishness: LO- clear about goals, vision- but

does to make profits- suffice? Analyze: SW of the company

What sort of org wants to be?


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What does it want to be known for?

How will the success be measured & by whom?How to achieve plan?

8. A sense of caring: like

opportunities to sit in higher level meetings Projects- encourage personal development

Horizontal careers to open up new possibilities Brain storming- new problems

Credit based rewards, encouragement of initiatives

mod 2 orgsnl change

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