Organizational Change and Development

1
Organizational Change and Development
2
Overview

• Sources of change
• Systems view of change
• Sources of resistance to change
• Overcoming resistance
• Lewins 3-stage model
• Organizational development

3
Sources of Change

• Globalization
• reductions in communications barriers
• reductions in trade barriers
• increased global competition
• growth in international markets
• Technology
• ubiquity of computing
• information based economy
• e-commerce
• CKOs in 1/5 of F500

4
Sources of Change

• Social change
• aging workforce
• increased diversity
• increased demand for customized products
• demand for faster, continuous, new product
  development
• Other forces
• government regulation/de-regulation
• competitors
• suppliers

5
A Systems View of Change
Work Process and work environment
Strategy Structure
Culture
6
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

7
Changing Work Processes and Environment

• Changes to how people do their work
• includes production/process technology, job
  redesign, empowerment, QCs, QWL.
• Impetus for change is often from bottom of the
  organization
• requires top management support

8
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)

9
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 ones own skills and
  abilities
• Fear of Personal Loss - e.g. loss of power,
  status, pay
• Lack of Understanding and Trust - knowledge of
  the employers intentions

10
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

11
Overcoming Resistance
12
Lewins 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

13
Example Changing to JIT
DRIVING FORCES
RESTRAINING FORCES
Cost savings
Rail-freight system
Fewer workers
Facilities layout
Worker skills
Response to Market
Union resistance
A. Traditional Inventory System
14
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
15
Oganizational Development

• Definition
• a planned, systematic change process, ...
• ...based upon the behavioral sciences ...
• ...with the aim of improving organizational
  effectiveness
• ...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

16
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

17
(No Transcript)