Assigment

Mid semester test (10%)

Group + Presentation Change Management
Model (20%)
Individual-4 X Forum (20%)
Book Review (10%)

2
Organizational Change
Todays successful organizations
simultaneously embrace two types of planned
change
Incremental change = efforts to gradually improve
basic operational and work processes in different
parts of the company
Transformational change = redesigning and
renewing the entire organization
3
Types of Organizational Change
Culture/People
Strategy
Structure
Technology Products
SOURCE: Based on Harold J. Leavitt, Applied
Organizational Change in Industry: Structural, Technical,
and Human Approaches, In New Perspectives in
Organization Research, ed.W.W. Cooper, H.J. Leavitt,
and Shelly II (New York: Wiley, 1964), 55-74.
4
Organizational Change
C Technology: General rule = change is bottom up
C New product:
Horizontal linkage model emphasizes shared development of innovations
among several departments
Time-based competition is based on the ability to deliver products and
services faster than competitors
C Structure: Successful change = through a top-down approach
C Culture/people:
Training is the most frequently used tool for changing the organizations
mind-set
5
Horizontal Linkage Model
For New Product Innovation
Research
Department
Marketing
Department
Manufacturing
Department
New
Technology
Customers
Market
Conditions
Organization
6
Structural Changes
Any change in the way in which the
organization is designed and managed
Hierarchy of authority
Goals
Structural characteristics
Administrative procedures
Management systems
Ethical Dilemma: Research for Sale
7
Culture-People Changes
Changes in structure, technologies, and
products or services do not happen on their
own

Changes in any of these areas require changes
in people
8
Three Stages for Achieving
Behavioral and Attitudinal Change
OUnfreezing
OChanging
ORefreezing
Kurt Lewin
Theory
Changing Forms
Ghazally Ismail and Murtedza Mohamed (1996)
4 Forms
1. Mandatory legalistative By government
2. Reformation Idealogy very compilicated
3. Inovation changing organization current
practices
4. Responsive counter balance from employee.

10
Model of Change
Sequence of Events
Environmental
Forces
Internal
Forces
Need for
change
Initiate change Implement
change
Monitor global
competition, and other
factors
Consider plans,
goals, company
problems, and
needs
Evaluate problems
and opportunities,
define needed
changes in
technology
products, structure,
and culture
Facilitate search,
creativity, idea
champions, venture
teams, skunk works and
idea incubators
Use force field analysis,
tactics for overcoming
resistance
11
Forces for Change
Environmental Forces
Customers
Competitors
Technology
Economic
International arena
Internal Forces activities and decisions
12
Need for Change
-Performance gap = disparity between
existing and desired performance levels.

Current procedures are not up to standard
New idea or technology could improve
current performance
13
Initiating Change
Stage where the ideas that solve perceived
needs are developed
Search = process of learning about current
developments inside or outside the organization that can
be used to meet the perceived need for change
Creativity = generation of novel ideas that might meet
perceived needs or offer opportunities for the
organization
Critical phase of change management
Experiential Exercise: Is Your Company Creative?
14
Characteristics of Creative People
O Conceptual fluency
E Open-minded
O Originality
O Less authority
E Independence Self-confidence
O Playfulness
E Undisciplined exploration
E Curiosity
O Persistence
E Commitment - Focused approach
15
Idea Champion
A person who sees the need for and
Champions productive change within
the organization
Change does not occur by itself
16
Four Roles in Organizational Change
Inventor
Develops and
understands
technical aspects of
ideas
Does not know how
to win support for
the idea or make a
business of it
Sponsor
High-level manager
who removes
organizational
barriers
Approves and
protects idea
within
organization
Critic
Provides reality
test
Looks for short-
comings
Defines hard-nosed
criteria that idea
must pass
Sources: Based on Harold L. Angle and Andrew H. Van de Ven, Suggestions for Managing the Innovation Journey, in Research in the Management of Innovation: The Minnesota
Studies, ed. A. H. Van de Ven, H. L. Angle, and Marshall Scott Poole (Cambridge, Mass.: Ballinger/Harper & Row, 1989); and Jay R. Galgraith, Designing the Innovating
Organization, Organizational Dynamics (winter 1982) 5-25.
Champion
Believes in idea
Visualizes benefits
Confronts
organization
realities of cost,
benefits
Obtains financial &
political support
Overcomes obstacles
Championing an idea successfully requires roles in organizations
17
Resistance to Change
NSelf-Interest: fear of personal loss is perhaps the biggest
obstacle to organizational change
NLack of Understanding and Trust: do not understand the
intended purpose of a change or distrust the intentions
NUncertainty: lack of information about future events
NDifferent Assessments and Goals: people who will be
affected by innovation may assess the situation differently.
18
Force-Field Analysis
The process of determining which forces drive
and which resist a proposed change
Restraining Forces (Barriers)
Lack of resources
Resistance from middle managers
Inadequate employee skills
Driving Forces
Thought of as problems
or opportunities that
provide motivation for
change
Kurt Lewin
19
Traditional to Just-In-Time
Inventory Systems
20
Tactics for Overcoming
Resistance to Change
Communication
education


Participation



Change is technical; users
need accurate information
& analysis
Users need to feel involved;
design requires information
from others; have power to
resist
Approach When to Use
21
Tactics for Overcoming
Resistance to Change
Negotiation


Coercion

Top management support

Group has power over
implementation; will lose
out in the change
Crisis exists; initiators
clearly have power; other
techniques have failed
Involves multiple
departments or
reallocation of resources;
users doubt legitimacy of
change


Approach
When to use