Organizational Change | My Assignment Tutor

1Understanding and leading changeLecture: 03, LO: 01Types of organisational change2IBUS 681, Dr. YangOrganizational Change Reconfigures components of an organization to increase efficiency andeffectiveness Including any alternations in people, structure, or technology23Levels of Organizational Change Levels of analysis: Structural change Group change Individual change Cross-culture variationin restructuring U.S. Japan Germany China South Africa35Internal Change Factors Technical ProductionProcesses Production New Technologies Quality Political Processes New Organizational Goals Conflict New Leadership OrganizationalCulture Values Norms New MemberSocialization6External Change Factors ImmediateEnvironment Domestic Competition Population Trends Social Trends Government Actions GeneralEnvironment Foreign Competition Social Movements Political-EconomicMovements Technology Professionalization Culture Contact47National Culture and OrganizationalChange Time Orientation: Past Present Future Short-term vs. longterm oriented Resistance to Change Tradition Habit Resource Limitations Power and Influence Fear of the Unknown Values56Structure should follow strategy Growth Concentration Diversification Stability No change Retrenchment Turnaround Divestment Liquidation7Action Research ModelFeedback to ClientData gathering afteraction Problem Identification Joint action planning Consultation with abehavioral scientist Data gathering &preliminary diagnosis Joint diagnosis Action Initiate the Inquiry Inquire into Best Practices Discover Themes Envision a Preferred Future Design and Deliver Ways toCreate the FuturePositive Model8General Model of Planned ChangeEvaluatingandInstitutionalizingChangePlanningandImplementingChange Diagnosing EnteringandContracting 9Processes for Planned Organization Change Process Model Planned organization change requires a systematicprocess of movement from one condition to another Unfreezing Process by which people become aware of the need for change Change Movement from the old way of doing things to a new way Refreezing Process of making new behaviors relatively permanent andresistant to further change10Change impact analysisChange impact analysis Change impact analysis (IA) is defined by Bohner and Arnold[1] as “identifyingthe potential consequences of a change, or estimating what needs to bemodified to accomplish a change”, and they focus on IA in terms of scopingchanges within the details of a design. In contrast, Pfleeger and Atlee[2] focuson the risks associated with changes and state that IA is: “the evaluation ofthe many risks associated with the change, including estimates of the effectson resources, effort, and schedule”. Both the design details and risksassociated with modifications are critical to performing IA within changemanagement processes. A technical colloquial term is also mentionedsometimes in this context, dependency hell.11Types of Impact Analysis TechniquesIA techniques can be classified into three types:[3] Trace Dependency Experiential Bohner and Arnold[4] identify two classes of IA, traceability and dependency IA.In traceability IA, links between requirements, specifications, design elements, and tests arecaptured, and these relationships can be analysed to determine the scope of an initiatingchange.[5] In dependency IA, linkages between parts, variables, logic, modules etc. areassessed to determine the consequences of an initiating change. Dependency IA occurs at amore detailed level than traceability IA. Within softwaredesign, static and dynamic algorithms can be run on code to perform dependencyIA.[6][7] Static methods focus on the program structure, while dynamic algorithms gatherinformation about program behaviour at run-time. Literature and engineering practice also suggest a third type of IA, experiential IA, in that theimpact of changes is often determined using expert design knowledge. Review meetingprotocols,[8] informal team discussions, and individual engineering judgement[9] can all beused to determine the consequences of a modification.Compiled by NN 22Areas for Change in an Organisation Changing structure Changing technology (ex: automation, computerisation, E-commerce or Ebusiness) Changing people (changing the quality and characteristics of employees) Changing Culture12Compiled by NN 23Areas for ChangeCultureStructure Human ResourcesTechnologyCompiled by NN 24Areas for Change: StructureStructural components:Job definitionsJob groupingsTeamsDelegationReporting relationships13Compiled by NN 25Areas for Change: TechnologyTechnology may drivechange/innovation by:Requiring new work methods.Providing/removing competitiveedge.Compiled by NN 26Areas for Change: PeopleHuman resources is the vehicle for changingknowledge, skills, perceptions & behavioursneeded for a job. It utilises: Recruitment & selection Training Performance appraisal Reward systems.14Compiled by NN 27Areas for Change: Culture Major organisational changes often require concomitant changes toorganisational culture.Compiled by NN 28Change Management Process Recognition of opportunityor problem Line up powerful sponsors Develop and communicatea vision Empower others toact out the vision Prepare to overcome resistance Plan for & reward visible progress Consolidate improvements &facilitate further change Monitor & institutionalise changeReading 8.4 covers detailed information on change management process.15Managing Change:Managing Resistance To ChangeWhy do employees resist change? Self-interest: not fear change but fear loss (what are losses?) Security Competence: do not know how to do with the new job Relationships: afraid of the familiar contact with peoplelike customers, co-workers or managers can disappear;afraid of losing their sense of belonging to a team orgroup Sense of direction Territory It is important to understand employees’ fears of loss caused bychange as it is a normal part of transition and leaders have to assistthem overcome these fears.Compiled by NN 30Why does individual resist change? Misunderstanding Lack of trust Differential assessment Ability to adjust Laziness16Compiled by NN 31What are emotions accompanying change? Disbelief Annoyance Avoidance Disappointment Blaming Given up Hostility and sabotage Acceptance OptimismManaging Resistance To ChangeManaging resistance to change: Freeze cycle approach (Kurt Lewin 1947 )UnfreezingInitial awareness of need for change is developedChangingFocus on learning needed new behavioursFreezingReinforcing new learned behaviours by positiveresults, feelings of achievement, and rewards fromothers.17Managing Resistance To ChangeOvercoming resistanceMETHODS(Kotter & Schlesinger)Participation &Education & involvementcommunicationFacilitation &supportNegotiation &Manipulation & agreementcooptationExplicit &implicit coercionManaging Resistance To ChangeOvercoming resistance to changeForce -Field Analysis (Kurt Lewin)‘a method involving analysing the two types of forces,driving forces and restraining forces,that influence any proposed change, thenassessing how best to overcome resistance.’ Driving forcesFactors pressuringfor aparticularchange RestrainingforcesFactorspressuringagainst a change C H A N G E 18Managing Resistance To Change Driving forces are factors pressuring for aparticular change Restraining forces are factors pressuringagainst a change The status quo is a condition of equilibriumbetween the two forces Change occurs by increasing driving orreducing restraining forces that is reducingresistance to changeCompiled by NN 36Good union relationsForeign competitionRecent lossesCheaper outside sourcesUnion desire to save jobsCompany reluctance to save jobsDeteriorating company-union relationsStringent work rulesCurrent benefit costsCurrent pay costsEmployee absenteeism levelsCompany desire for flexibilityin layoff decisionsCurrent highCost levelDesired lowCost levelDriving forces for change Restraining forces against changeForce-field analysis of the forces maintaininghigh cost level at Xerox plant (p.587)19Compiled by NN 37Ongoing challenge of making changesuccessfully Change process do not always work the way theyshould, instead an organisation needs to embracechange, be ready for change all the time (be achange-capable organisation) Managers need to act as change agents (changeleaders) and build an effective change agent team Get all organisational members involved-encourageemployees to be change agents


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