Transcript Organizational Change and Development

Organizational Change and
Development
Overview
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Sources of change
Systems view of change
Sources of resistance to change
Overcoming resistance
Lewin’s 3-stage model
Organizational development
Sources of Change
• Globalization
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reductions in communications barriers
reductions in trade barriers
increased global competition
growth in international markets
• Technology
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ubiquity of computing
information based economy
e-commerce
CKO’s in 1/5 of F500
Sources of Change
• Social change
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aging workforce
increased diversity
increased demand for customized products
demand for faster, continuous, new product
development
• Other forces:
– government regulation/de-regulation
– competitors
– suppliers
A Systems View of Change
Work Process
and work
environment
Strategy &
Structure
Culture
Changing Strategy & Structure
• Changing goals and/or way the organization
seeks to achieve its goals
– may include reward systems; organizational
policies; coordination devices; control systems etc.
• Tends to be ‘top-down’
• requires support from lower levels of the
organization
• may include major changes to structure: e.g.
outsourcing, alliances, networks, joint ventures
Changing Work Processes and
Environment
• Changes to how people do their work
– includes production/process technology, job
redesign, empowerment, QC’s, QWL.
• Impetus for change is often from bottom of the
organization
• requires top management support
Changes to Culture
• Changes to the shared norms, beliefs and
values that guide behavior
• Cultural change is often in the direction of
increased flexibility, innovativeness,
creativity
• must involve the ‘whole’ organization
• this type of change is ‘owned’ by everyone
• requires supporting changes in structure
(e.g. rewards) and processes (e.g. job
design)
Individual Sources of Resistance
to Change
• Habit and Personality - cause people to respond
to stimuli in the same way.
• Fear of the Unknown - uncertainty about the
alternative future and about one’s own skills and
abilities
• Fear of Personal Loss - e.g. loss of power,
status, pay
• Lack of Understanding and Trust - knowledge
of the employer’s intentions
Organizational Sources of
Resistance to Change
• Limited focus of change efforts - must consider
systems effects
• Lack of coordination and cooperation - need to
consider organizational interdependencies
• Different assessments and goals - employees,
managers, departments, other change agents
• Established power relationships - e.g.
supervisor-subordinate relations, mid and lower
management
Overcoming Resistance
Approach
Use when…
Communication & change requires new skills;
education
employees need accurate
information to understand change
Employee
employees need to feel involved;
participation
design and implementation requires
information from others
Negotiation
one group (e.g. union) has power
over implementation; or one group
may lose out due to change
Coercion
a crisis exists and a rapid response is
needed; when other implementation
tactics fail
Lewin’s Three Stage Model of Change
• Stage 1: Unfreezing - make employees aware of
the problem(s) and the need for change
– provide information about difference between
current situation and desired state
• Stage 2: Changing - shifting attitudes and
behaviors towards the desired state
– provide information and examples of desired beliefs
and behaviors
• Stage 3: Refreezing - stabilize change, integrate
new behaviors, and reward them
– show positive results of change, maintainance
training
Example: Changing to JIT
DRIVING
FORCES
Cost savings
Fewer
workers
RESTRAINING
FORCES
Rail-freight system
Facilities layout
Response to
Market
Worker skills
Union resistance
A. Traditional Inventory System
Example: Changing to JIT
REDUCED
RESTRAINING
FORCES
DRIVING
FORCES
Cost savings
Use of trucks
Fewer
workers
Addition of docks
Training program
Response to
Market
Reassignment
B. JIT Inventory System
Oganizational Development
• Definition:
– a planned, systematic change process, ...
– ...based upon the behavioral sciences ...
– ...with the aim of improving organizational effectiveness
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– ...by improving internal relationships and increasing
problem solving capabilities.
• Focus of OD is the human and social aspects of the
organization
• Values of OD are fairness, openness, freedom from
coercion, and individual autonomy
OD techniques
• Survey feedback
– surveys used to identify issues
• Process consultation
– focus on communication problems, leadership conflicts,
decision making processes
• Team building
– building trust, cohesiveness and effectiveness
• Intergroup activities
– improving relationships between groups (e.g.
‘valentine’ game
• Large group interventions
Focus
Info Source
Traditional
OD
Problem or
group
Organization
Large Group
Model
System
Info
distribution
Time frame
Limited
Org and
environment
Widely shared
Gradual
Fast
Learning
Individual,
small group
Whole
organization