Managing Change & Organizational Development

Prof. B D SINGH Dean (Executive Education) AIM, New Delhi

Organizational Change & Development

OBJECTIVES OF THE COURSE The process of managing organizational change is far from a straightforward endeavour. The most carefully developed plans for change can and, often do, disintegrate during implementation, disrupting not only production or service delivery, but also the lives of people who work in organizations. Moreover, in spite of the long history of introducing organizational change initiatives, there is little implementing change as the key facet and fundamental challenge in managing organizational change. Is purpose is twofold:

1.

2.

To gain an understanding of how organizational change is achieved. To enhance personal capabilities and abilities to navigate change in our lives. Pedagogy Pedagogy will consist of lectures, quizzes, case discussions, assignments and other projects. The sessions would be interactive. A high degree of student preparation with reading will be required to be able to achieve the objectives. Besides, students will have to work on a comprehensive research project to investigate and validate some of the key learning in a real world situation.

Course Outline
1.Organizational change-an introduction-changes & their importanceImperative of changes on organization philosophy and other different aspects. Case-Implementing factor Business Excellence Model in Tata Steel 2. Models/Approaches of change, some important & relevant Models. CaseHR initiatives at Hughes Software System.

3.Impact & Resistance to change. Case-1. Making friends at Prillco 2. Problems at Perrier. 4. Organization Culture & change. Case-British Airways 5. Effective Change Management. Case-Gold Smith consulting 6. Organization Development Case-Re-making ABX

7.

Organization Development Intervention comprehensive, Organization Development interventionTeam Interventions etc. Case-The Forum Bank 8. Structural Interventions & the applicability of Organization Development. 9. Knowledge Management & Knowledge Network, as Organization Development intervention. 10. Learning Organization. Case-Rover Case-Leveraging Knowledge of Hewlett Packard 11. Linking vision with change-consolidated change. Case-Cflenger & Columbia shuttle disaster

Text:
1.

1.

2.

3.

Singh Kavita. Organization change and Development, Excel Books, New Delhi,2nd Edition 2010. Suggested Readings Palmer Ian, Richard Dunford and Gib Akin, Managign Organization Change, Tata McGraw Hill Education Pvt. Ltd. New Delhi, Sikh Reprint 2010. French L. Wendell, Cecil H.B. and R.A. Zawacki, Organization Development and Tpalmer Ian, Richard Dunford and Gib Akin, Managing Organizational Change,Tata McGraw Hill Education Pvt. Ltd. New Delhi, Sikh Reprint 2010. French L. Wendell, Cecil H.B. and R.A. Zawacki, Organization Development and Transformation, Tata McGraw Hill Education Pvt. Ltd. New Delhi, Seventh Reprint 2010.

Session-1 INTRODUCTION

There is nothing permanent except change It is not the weather cock that that changes, it is the wind World hates change but it only thing that have brought improvement/progress The growing thought that philosophies the phenomenon of change that all things change, nothing perishes. Iniquitousness of change Change changes us

Change is a Feature of cosmos it is inevitable---It universal Individuals & culture crave for continuance & status quo 1. To make different in particular thing after transformation After 2. To make Radical difference Transformations 3. Same difference in position, course, direction.Webster Dictionary

There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success than to take the lead in the introduction of a new order of things
Machiavelli

Change is not made without inconvenience, even from worse to better.

Richard Hooker(1554-1600), English theologian

Fast changes, unprecedented, contradictory - change will not disappear or dissipate change is only unchanging phenomenon

time & distance lost their significance due to technological explosion Organizations are busy to catch up with the speed of changes---unpredictability of events. Darwinian principles of adaptation and natural selection Survival of the fittest Ability to manage change efficiently & effectively In this volatile of business of ours we can be effort 10 rest on laurels to pause & retrospect time & conditions change so rapidly that we must keep our aim constantly focused on the future ----Walt Disney

Why does Changes Fail?

Inconvenience

about change is that it involves unlearning & learning. To make change in an organization is to make people to believe other than what they are believing now & do differently than what they are doing now.

- Some organizations change mainly in response to external circumstances( reactive change): others change principally because they have decided to change (proactive change). - Some businesses are conservative in outlook, seeking little in the way of change; - others are entrepreneurial in outlook, always seeking new opportunities and new challenges.

- Some organizations are constructed in such a way that change and/or adaptation is a slow and difficult process. - Others are designed with built-in flexibility enabling adaptation to take place regularly and relatively easily. The reality is that every group has forces within it that keep it together and provide it with stability and others that provide it with reasons to change and adapt.

So the ability to recognize that the winds have shifted and to take appropriate action before you rock your boat is crucial to the future of an enterprise. They shape the social needs & values, then they alter the social structure, and finally they reorder the means by which needs are fulfilled by social structures. Lets never rush out with change

Imperatives of Change A organization can ignore change at its own risk Change in life styles affecting organization Changing workplace Non traditional employer Knowledge as asset Increasingly demanding customer

Organizational and Individual Transformation

What are your Options?

Do Nothing. If You Do Not Change You Become Extinct.

Ignore the situation. change will slam into you and knock you off balance.

Get angry wont make it go away- in fact, temper typically makes things worse.

What are your Options?

Wish it away Wishing is a waste of time, too, so dont sit around thinking and talking about the good old days with the hope theyll return.

Run away You cant even run away from it, because theres no place you can run thats beyond the range of change. Get involved
Join a Community Of Practice

What Should I Do?

Might as well face the problems and find the opportunities. How you think and how you act, become very important during times like these. Obviously, you wont be able to control everything that happens to you. But youre in complete control of how you respond to what happens. This is the Age of Instability, where managing change is everybodys job. Think of it as your personal assignment.

What can you do?

Monitor Change See how you can help and fit in. Look for areas you can use your strength. (Join a Community Of Practice CoP) Become part of the solution. Noticing Small Changes Early Helps You Adapt To The Bigger Changes That Are To Come.
Review the web site when you can. Stay informed.

Adapt To Change Quickly. Movement In A New Direction this will Help You Find New opportunities.
Try not to do the same old thing over and over, you will get the same results.

Things to Remember
Old Beliefs Do Not Lead You To New adventures. Move with the direction of the current and do not fight the flow. Enjoy Change Savor the adventure and enjoy the taste of New Cheese. When you move beyond your fear you will feel free. Be ready to change quickly and enjoy it again and again.

Forces of change from external environment Exponentially increased communication- almost instant has really shrunk the globe. Quicker spread of knowledge & technology increasingly facilitates the influence of far-away forces, considerably reducing almost eliminating the erstwhile insulation to change. Knowledge & Technology Explosion: Knowledge is said to be doubling every two years or less.

Globalization:Competition is worldwide because, increasingly, customers can shop worldwide. Goods and services move very freely round the world and sources of supply have proliferated extensively. Global events, seemingly unrelated to your organization, are in fact influencing you probably more than can be imagined. A devaluation of the Thai Baht deeply affects the ability of British shoe manufacturers to supply British retailers at competitive prices. Exceptional computer programming competence in India affects employability in Silicon Valley. A Honda manufacturing investment in England means, because of the EU, that Fiat has a new competitor in its home market-the examples are endless..

Technology:- IT in particular is affecting how goods are made and services delivered, how organizations run themselves internally, and how they bring their goods and services to market. The Internet is changing marketing for a number of industries. Increasingly too, with the inter-linking of networks, IT extends the potential for adding value downstream from your suppliers and upstream to your customers.

Non IT related technologies:- these are also having a profound effect on product and markets. Biotechnology in particular is hatching previously unimagined products addressing markets in unique ways. Organizational accountability:Environmental considerations, pressure groups, professional commitments, political accountability, industry regulation and industry reputation all affect how organizations conduct themselves and the latitude they have in which to manoeuvre. People:- Above all the responsibility of the organization to its employees has changed. As people increasingly become the means by which organizations can differentiate their services and add value in the eyes of their customers, so the need to attract, retain and motivate employees becomes critical.

All these influences create a turbulent and unpredictable operating environment which means that organizations are constantly in a state of change, whether they like it or not.

Some determining factors of change

Planned Unplanned

Internal

Internal planned change

External planned change

Internal unplanned change

External unplanned change

External

Planned Internal Change Change in Products or Services Change in Administrative Systems & procrdures Changes in Organizational size & structure Planned External Change Introduction of New Technologies Advances in Information Processing & Communication Unplanned Internal Changes Changing employee demographics Performance Gaps- Organizations usually stay with a winning course of action & change in response to failure. Unplanned External Changes Government Regulation Economic Competition in the Global arena

Change based on internal/external factors

Planned or unplanned change

Internal changes

Change

service Changes in administrative systems Change in organization size or structure (e.g. downsizing, outsourcing, etc.)

in products or

Changing

employee demographics Performances gaps

External Changes

introduction & new

technology Advances in information processing & communication

Government
regulation
External

competition

Types of Changes
1.

2.

3.
4. 5. 6. 7.

Happened change--Unpredictable-depression Reactive change Anticipatory change Planned change Incremental change Transformational change Revolutionary change

MACRO FORCES

DISCUSSION OF THE MACRO FORCES Changes in Technology

Constant

Change Partnerships and Alliances Changes in the Structure of Work Increasing Diversity in the Work Force Shifting Age Demographics

33

CHANGES IN TECHNOLOGY

Largest Effecting Macro Force Possible Cause Other Macro Forces

Ramifications
Speed of Change New Strategies New Distribution Channels New Relationships Increased Competition
34

CONSTANT CHANGE
Ramifications

Dealing w/ Uncertainty Need More Flexible Process Employee Burn Out

35

PARTNERSHIPS & ALLIANCES

Companies

Cant Do It By Themselves

Anymore Key is to Actively Manage the Relationships Challenges in Making P&A Work
Dealing with Ambiguity Culture Differences Boundary Issues Finding Right Partner
36

CHANGES IN WORK STRUCTURE

Types

of Changes

Information Technology Driven (ERP) More Global Virtual Organizations Focus on Core/Outsourcing Project Work and Cross Functional Teams Customer Focus

37

DIVERSITY
Effects

will Grow by 15% over Next 3 Years (Highest of all Forces) Possibly be Driven by Increased Globalization Today Many People Still View Diversity as an Affirmative Action Issue Not a Strategic One

38

CHANGES IN DEMOGRAPHICS
Caused

by

Declining Birth Rates Baby Boomers Aging Value Conflicts Between Generations Rise of Ethnic Minorities into Leadership
Examples

Finance Industry Healthcare Industry Grocery Industry

39

OTHER MACRO FORCES

Mergers

and Acquisitions

Defensive Move to Take Advantage of Economies of Scale Will Continue to Happen Often Fail: Culture Problems and/or Poor Integration Program
Globalization

Enabled by Technology Free Trade Laws Growing Interdependencies

40

ORGANIZATIONAL CHALLENGES RESULTING FROM MACRO FORCES

Dealing with Inc. Competition and Customization Need to be Flexible and Cope with Uncertainty Create an Environment of Constant Learning Adapting to New Technology and Globalization Developing New Management Competencies

41

ORGANIZATIONAL DEVELOPMENT

42

 Like

any living things the organization should also change on continuous basis Learning organization Responsive organization OD interventions

OD
What is OD?
-

Planned Organization wide Managed from top To increase sustaining Capability & health By using knowledge & behavioral sciences

OD INTERVENTIONS MOST FREQUENTLY USED TODAY

Mission

and Vision Statement Analysis Strategic Planning Reward and Recognition Change Management Leadership Team Building Facilitation
45

EXPANDING THE USE OF OD

More

Accepted Because it is Needed to Enhance Productivity & Profitability Companies Need to Change to Survive Employee Performance is a Key Competitive Advantage More Research: 55% of HBR Articles are OD Related Over Last Year

46

EXPANDING THE USE OF OD

Consulting

Fastest Growing at 18.6% Research Indicates High Use of OD Interventions Lead to High Returns More Exposure to OD Quantitative Data

47

Session-2 Models and Approaches of change

Characteristics of Effective Change Programmes Focus is primarily on intentional, goal-oriented, organizational, purposeful attempts by managers and employees to improve the functioning of teams, departments, divisions or an entire organization in some important way(Cummings & Worely, 1997).

Motivating change by creating a readiness for the change among employees and attempting to overcome resistance to change Creating a shared vision of the desired future state of the organization Developing political support for the needed changes Managing the transition from the current state to the desired future state; and Sustaining momentum for change so that it will be carried to its completion.

Model (1)----Initiatives Contributing to Effective Change Management

Effective Management

Change

1. Motivating change Creating readiness for change Overcoming resistance for change 2. Creating a vision Energizing commitment Describing a desired future state

Developing Political Support

Assessing change-agent power Identifying key stakeholders Influencing stakeholders Managing the Transition Activity Planning Commitment Planning Management Structure Sustaining Momentum Providing a resources for change Building a support system for change agents Developing new competencies and skills Reinforcing new behaviors

Model (2)---System Model of Change

People Culture

Task

Technology

Design

Strategy

The System Model of Change describes the organization as six interacting variables that could serve as the focus of planned change: people, culture, tasks, technology, design, and strategy. The people variable applies to individuals working for the organization, including their individual differences-personalities, attitudes, perceptions attributions, needs and motives. The culture variable reflects the shared beliefs, values, expectations, and norms of organizational members. The task variable involves the nature of work itself-whether jobs are simple or complex, novel or repetitive, standardized or unique. The technology variable

encompasses the problem solving methods and techniques used and the application of knowledge to various organizational processes. It includes such things as the use of information technology robots, and other automation, manufacturing process tools and techniques. The design variable is the formal organizational structure and its system of communication, control, authority, and responsibility. Finally, the strategy variable comprises the organizations planning process and includes decisions about how the organization chooses to compete.

These six variables are interdependent. A change in any one usually results in a change in one or more of the other. Cannot change part of the organization.

Model (3)----Lewins Force Field Analysis Model

Unfreeze (Awaren ess of need for change) Change (Movement from old state to new state) Refreeze (Assurance of permanent change)

Old State

New State

Model (4)---The Continuous Change Process Model

This approach treats planned change from the perspective of top management and indicates that change is continuous.

Continuous Change Organization Change

1. Forces for change

Process

Model

of

2.

Recognize and define problem

3. Problem solving

Change Agent

5. Measure, evaluate, control

4. Implement the change

Transition Management

This model incorporates Lewins concept into implementation phase.

Transition Management is the process for systematically planning, organizing, and implementing change. Once change begins, the organization is in neither the old state nor the new state. Yet business must go on. Transition Management ensures that business continues while the change is occurring, and thus it must begin before the change occurs. The members of the regular management team must take on the role of transition manager and coordinate organizational activities with the change agent. An interim management structure or interim positions may be created to ensure continuity and control of the business during the transition.

Model (5)-----Beckhard (1992) suggests ten organizational prerequisites, which must exist before transformational change can be achieved in an organization. There are summarized in table.

Beckhards Ten Organizational Prerequisites for Transformational

Change

Priority
1 2 3 4

Prerequisites
Ensuring senior management commitment to the imposed changes, which needs to be visible to all participants throughout the organization. Producing a written statement about the future direction of the organization that makes clear its new objectives, values and policies Creating a shared awareness of condition to be produce a common perception that change must be implemented. Assembling a body of key managers and other important opinion-formers to gain their commitment to the change process so that this may be disseminated more widely. Generating an acceptance that this type of change will require a long time to implement fully even though there may be short-term, dramatic changes as part of the overall process of transformation. Recognizing that resistance to change is a part of the normal process of adaptation, so that the manager can be aware of this and equipped to manage this reacting effectively. Educating participants about the need for change and training them with the necessary competence to be effective to overcome resistance and gain commitment Persevering with the change process and avoiding blame where an attempt to implement a facet of this process fails. Such negative action will generate resistance and reduce necessary risk-taking behavior Facilitating the change process with necessary resources. Maintaining open communication about process, mistakes and subsequent learning.

9 10.

Model (6)----Kotters Eight-step Change Management Model

Kotters Eight-step Model of Change: Create a sense of urgency Establishing a powerful group to guide the change Develop a vision Communicate the vision Empower staff Ensure there are short-term wins Consolidate gains Institutionalize the change in the culture of the organization

Model (7)----Change and Transition Management

Trigger layer: Concerning the identification of needs and openings for major change deliberately formulated in the form of opportunities rather than threats or crises. Vision layer: Establishing the future development of the organization by articulating a vision and communicating this effectively in terms of where the organization is heading. Conversion layer: Setting out to mobilize support in the organization for the new vision as the most appropriate method for dealing with the triggers of change. Maintenance and renewal layer: Identifying ways in which changes are sustained and enhanced through alterations in the attitude, values and behaviors, and regression back to tradition is avoided.

Model of Perceptual Transition Management (Buchanan & McCalman, 1989) THEORY PRACTICES Interlocking Processes
Trigger layer Vision layer Conversion layer Maintenance and renewal layer Opportunity, threat, crisis. Clarify, express, communicate Define the future (including structure) Challenges, excitement, innovation Persuade, recruit disciples Detail the structure Sustain and enhance belief Reinforce and justify Regression avoidance(ritual)

Session---3
Impact and Resistance to change
TI M . E T A K E N T O C H A N G E

L o n g

Behavioral Reactions to Change

Organizational Behavior Group Behavior Individual Behavior Attitude

S h or t

Knowledge

Easy

difficult

Time and difficulty involved in Change

Knowledge, it would not be a very difficult and time-consuming endeavor. Changing attitudes is usually considered more difficult and time taking when compared to changing knowledge. Changing individual behavior is a still more time-taking and difficult task. Behavior of a group is usually a more prolonged and harder task. Difficult and prolonged to bring about total behavioral change in an organization starting with its individual members.

 An

individuals attitude towards change is shaped by certain factors. These factors influence the thinking processes, and so individuals tend to perceive situations in a certain way, and this in turn motivates them to behave in a particular manner.

Internal Forces Individuals Attitude, Personality, & Learning ability

Perception About situations

External forces Uncertainty, fear Of loss, or hope of gain

Negative reaction

Positive reaction Enhanced motivation to act & move towards change

Individual expression Withdrawal Worry Anger Confusion

Individual behavioral reactions Disengagement Disidentification disenchantment

Managerial strategies Confront & identify Explore & transfer Neutralize & acknowledge

Internal forces constitute an individuals attitude, personality, & learning ability. The external forces can create uncertainty for organisational members. Perception is a process by which individuals organize & interpret their sensory impressions in order to give a meaning to their experiences.

Disengagement: It is a psychological withdrawal from change. Its symptoms are loss of initiative & interest in the job, Lack of drive & commitment. Physically present but mentally absent. A change agent has to identify & confront disengagement behaviour. Disidentification: This causes the individual to worry & feel vulnerable. Its symptoms are that individuals begin to live in the past, they fall back on the old ways of doing things, and feel their identify has been threatened by change. When faced with disidentification, the change agent can explore & transfer all the possibilities of having the same positive experience in the new situation.

Disenchantment: It is an expression of negativity or anger. The usual symptoms are confusion, denial of change, a feeling that the best has been lost, leading to building coalitions and destructive behaviours like bad mouthing, backstabbing, sabotage, and spreading rumors. A change agent has to acknowledge & neutralize disenchantment behaviour. Disorientation: It is a state of confusion. Symptoms of disorientation are being unsure of their feelings, & seeking excessive details about work. When faced with disorientation, the change agent has to explain and plan by explaining the need for change.

Possible Behaviours Towards Change

Acceptance

Indifference

Passive Resistance

Active Resistance

Enthusiastic cooperation cooperation under pressure from management acceptance passive resignation Indifference apathy loss of interest in the job doing only what is ordered regressive behaviour nonlearning protests working to rule doing as little as possible slowing down personal withdrawal (increase time off job & away from work) Committing errors Spoilage Deliberate sabotages

WHY INDIVIDUALS RESIST CHANGE?

Five main change

reasons-

why

individuals

resist

Selective Perception Lack of Information Fear of the unknown Poor Timing Lack of support Loss of Competency Too much uncertainty Too many surprises Time to adjust Resentment Towards the Initiator Habit---Self-Interest Suspicious Conservatism

I am your constant companion. I am your greatest helper or heaviest burden. I will push you onward or drag you down to failure. I am completely at your command. Half the things you do you might just as well turn over to me, and I will be able to do them quickly, correctly. I am easily managed- you must merely be firm with me. Show me exactly how you want something done, and after a few lessons I will do it automatically. I am the servant of all great people, and alas, of all failures as well. Those who are failures, I have made failures. I am not a machine, though I work with all the precision of a machine plus the intelligence of a human being. You may run me for a profit or turn me for ruin-it makes no difference to me. Take me, train me, be firm with me, and I will place the world at your feet. Be easy with me and I will destroy you. Who I am? I am habit.

WHY ORGANISATIONS RESIST CHANGE?

Power Maintenance: Changes in decision-making authority & control to resource allocation threaten the balance of power in organisations. Structural Stability: Organisations create hierarchies, subgroups, rules, and procedures to promote order & guide behaviours. Functional Sub-optimization: Functional units usually think of themselves first when evaluation potential changes. Organisational Cultural Group Norms: own norms to promote desirable behaviours.

Overcoming Resistance to Change

Education & Communication: Help people learn beforehand the reasons for the change, how it will take form, and what the likely consequences will be. Participation & Involvement: Encourage those involved to help design & implement the changes in order to draw out their ideas and to foster commitment. Facilitation & support: Provide encouragement, support, training, counseling & resources to help those affected by the change adapt to new requirements. Negotiation & Agreement: Bargain to offer incentives in return for agreement to change. This tactic is often necessary when dealing with powerful resistance, like bargaining units. Manipulation & Cooptation: Manipulation is framing & selectively using information & implied incentives to maximize the likelihood of acceptance. Explicit & Implicit Coercion: Some managers use authority and the threat of negative incentives to force acceptance of the proposed change. Management might decide than if employees do not accept proposed changes, then it has to shut the plant down, decrease salaries or layoff people.

Push the change. Strengthen or increase the forces that favour the intended change. Facilitate the Change. Weaken or decrease the forces that resist or oppose the intended change. Do both- strengthen or increase some forces that favor the intended change, as well as weaken or decrease some forces that resist or oppose the intended change.

Session---(4) Effects of Change on Organizations:

Some effects of change internally or externally propelled- on organizations are: Internationalization: In terms of business or enterprise, there is a virtual breakdown of national boundaries. Consequences of social or economic or even political change in one place are invariably experienced elsewhere in some shape or form. Realizing near-similarly or problems and issues, organizations experience virtual compulsion for networking across borders. Shorter Product Life: With an increased rate of obsolescence, there is greater need for dynamic and online programming of new or redesigned products, projects or service to adapt to short to medium rather than long life cycles. It means a vastly quicker response to the market. At the same time, the consistency of standards and quality has become crucial in a situation of increased competition. These require an optimal and efficient mix of flexibility of products with consistency of quality, approach and strategy

Need to deal with competing concepts: In the changing context, no one concept has wide acceptance, and certainly not for any extended period of time. For continued acceptance, there is need to continuously share and reality test the analyses, logic and concepts that organisational strategies are based on. Need for staff Functions : As tasks become more complex, there is need for multi-disciplinary approaches. Diversity of relevant knowledge making it difficult for any function to remain self reliant, there is a certain inevitability of interdependence among functions within organisations. This has several implications for organisational structuring: Overheads increase unless innovative structures like the matrix structure- adopted. There is considerable dilution of the line authority. Organisations become more complex to manage, and to work in.

 Multiple

Group Membership, Rather Than A well- Defined Unitary Role: As roles become more complex, there arises:
The need for broader knowledge perspectives. Need for a greater variety of situational skills: conceptual, human and technical. Need for attitudes conducive to flexibility and risk-taking.

Change In The nature of Work : With newer knowledge or technology inputs, the work itself undergoes change, with:
More mechanized, automated or re-engineered processes. Increased complexity in and resultant problems of- persontask relationship. Greater need for interpersonal competence. Compulsions of a knowledge era, demanding that each functionary at any level develops at least one area or formal and well-defined role and authority to suffice for managerial effectiveness.

Changes In Values of the Managees: An important trend palpable is in the area of changed job characteristics and life styles that the managees value:

Greater autonomy Greater concern for personal growth Direct linkage of organisational tasks to personal advancement in life. Direct linkage of organizational tasks to personal advancement in life. Increased leisure for recreation and the other roles in ones life. Increased awareness of social, economic and workplace status.

Changing Profile of the Manager: With change all around, it is hard for the manager to escape. The profile of the new manager includes some of the following: Manager as Doer: The manager needs, as they say, to do the right things, more than doing things right. There is also need for the manager to possess or acquire one or more distinct areas of personal contribution other than getting things done relevant to the organisational tasks and goals. And, there is need to be in a position where the area of ones forte stays relevant. Managers must more deliberately recognize the importance of ones doing role, in addition to ones traditional roles of managing or supervising. Manager as Innovator: To optimize personal resources needed to perform the added functions, managers need to manage by exception. Effective managers develop experience-based innovative ways to extend their role effectiveness: they increasingly develop their managees to be able to delegate- not abdicate or confiscate. They support delegation by effective monitoring and enabling, including occasional trouble

Shooting. They possess high tolerance of ambiguity, high maneuverability, and the ability to deviate from the dotted line to deal with the unforeseen and unconventional situations. Manager as Entrepreneur: In their entrepreneurial role, effective managers Demonstrate a consistently high sense of responsibility in all matters. They are willing to stick their neck out where their role efficacy demands. Accept accountability as an integrating force in the organisation, and as a measure of trust rather than control. Manifest personal identification with, and stakes in, their organisational roles. Willingly take charge of situations, consistent with their role requirements.

Manager as Integrator:- Effective managers are able to Manager as Implementer: As an implementer, an effective manger carries out the traditional functions of planning, staffing, organization and coordinating, controlling time, cost and quality, supervising, leading, directing, coaching and counseling, empowering and motivating managees. Converge external resources on to their role to optimize their effectiveness. Network with external agencies in order to create a conducive environment for their teams to perform. Conceptualize diverse forces and demands in a manner that these can be coherently negotiated and met. See core issues and common ground, in apparently disorganized and diverse situations, which a change process often presents.

Force Field Analysis for bringing about a New Organizational Culture New (Interim) State

Present State Increased Competition Painful restructuring Top managements desire for new culture Performance problems Desire for increased productivity Forces for change

Desired Future State Fear of change in managers and managees Fear of loss of power by managers

Lack of knowledge about how to institute new conversation Forces against change

Session (5)---Organizational Culture and Change

What is corporate culture? How problems are solved in an organization. It may be defined as the ethos of a company shared values and team spirit, culture is like the DNA of an organization, invisible to the naked eye, but critical to shaping its behavior. The elements of culture, thus, include: Market-oriented communication system (AT&T) Customer orientation (Citibank) Risk-taking and innovation(Boeing, Hewlett, Wipro, Packard) Employee participation, open communication, and security(Sony, Toyota) Entrepreneurism, self-discipline, and control(Asea Brown Bover)

Artifacts: The visible manifestations of culture as seen in the physical and social environment of the organization such as: Its structure, systems and subsystems, symbols, plaques, etc. Its rituals, norms, rules, and procedures The observable behavior of its members (the way they talk, the jargon they use, the way they dress, etc). An example of a cultural artifact is the 24-hours hotline for customers that both IBM and Citibank provide.

Values: Values evolve out of the basic assumptions and from the core(or heart) of the culture. The five core values that formed the basis of cultural change within Bell Atlantic were: integrity, respect and trust, excellence, individuals fulfillment, and profitable growth.

Organization Culture and dealing with change. Organizational culture could be a help or a hindrance to organizational change. The existing corporate culture may even be a liability in implementing a new business strategy successfully. For example, lack of openness and trust, and interdepartmental rivalries might inhibit a department from rectifying certain problems because of consequent changes

Dimensionality of Culture
Manifest Aspects

The Industrial and its competition; company history and tradition; company goals, policies, and procedures; organizational systems and controls; technology, products, and services; leadership; company customers. Intrinsic aspects Basic assumptions Values Norms

ENHANCING CULTURE CONSCIOUSNESS AMONG WORK-TEAMS

Checking

on the common knowledge of organizational culture(the intrinsic and manifest aspects) with each role-set/team member and reinforcing common understanding. Educating all about the company culture.

CHEKLIST FOR CULTURAL CHANGE

1.

2.

3.

4.

Formulate a clear picture of the firms new strategy and of the shared values, norms, and behaviors needed to make it work. Take a close look at eh inner functioning of the organization and determine if cultural change is necessary Identify aspects of the current culture that could still be valid and other aspects that need to be modified or changed. Identify the depth of cultural change needed

5.

6.

Communicate the change translated into goals, sub goals, activities, and behaviors. Make changes from top down. The top managements commitment must be seen and felt( for example, Donald Kendall, the chief executive of PepsiCo, is said to have demonstrated the kind of ingenuity and dedication he expects from his staff by using a snowmobile to get to work in a blizzard).

7.

Involve employees in the change process

8. Check on the leadership and support processes 9. Monitor the progress from time to time; build momentum in terms of initial success. 10. Defuse resistance. Despite this, expect certain casualties to occur.

ARE THERE IDENTIFIABLE PHASES OR STAGES OF ACHIEVING CULTURE CHANGE?

Establishing a sense of urgency Forming a powerful guiding coalition Creating a vision Communicating the vision Empowering others to act on the vision Planning and creating short-term wins Consolidating improvement and producing still more change. Institutionalizing new approaches Levy and Merry (1986) list crisis, transformation, and stabilisation and development as the four stages of organizational change. Sathe (1994) proposes a sevenphase model:

Shock the organization Break the old mindset Make the tough decisions Demand performance Track progress and begin vision certain. Weed out those unwilling or unable to change; recognizing and reward those willing and able to change. Begin to build a culture of high competence and performance. Sathe emphasises the importance of avoiding the vision trap (Langeler, 1992), whereby the vision evolves into an excessively ambiguous goal that can distract the organization from its imprtant task of buidign things people will buy. Whereas most change models take a linear form, Kaplan & Nortons (1996) balanced scorecard approach

outlines a four-phase cycle for organizational change: 1. Clarifying and translating vision and strategy 2. Communicating and linking objective and measures. 3. Planning and target settings. 4. Strategic feedback and learning(and back to the beginning).

CULTURAL ATTRIBUTES OF CHANGE

A

Clear and Communicated Strategic Vision Visible Senior Management Involvement People-based Competitive Edge Marketing Ethos Consensus-driven Management Awareness and Reflection of Social Responsibility

THE ROLE OF COMMUNICATION

Customize

the Message Set the Appropriate Tone Build in Feedback Set the Example Ensure Penetration

Summary
To bring about radical, fundamental, or transformational changes in the organization, it is imperative to change the culture of the organization. The elements of the culture include the basic assumptions, artifacts, values and norms. To bring about the changes in the culture of the organization both the dimensions of culture, the manifest aspect and the intrinsic aspect, need to be changed Based on your experience in any organization discuss how does the proposed strategic change relate to the existing organizational culture?

Culture (Current Vs. Desired)

Strategy (Current Vs. planned)

Change(Intended change)

Session(6) A Systematic Approach to Managing change

Dealing With the Future Corporate winners, whether public or private enterprises will have fostered and maintained a desire to succeed through progressive, dynamic and challenging initiatives strategies and cultures that welcome, address and imaginatively manage change will continue to triumph. Once again, in the words of John Cotter, from the book entitled, the 20% Solution(1995):

The first law of the jungle is that the most adaptable species is always the most successful. In the struggle for survival, the winners are those who are most sensitive to important changes in their environment and quickest to reshape their behavior to meet each new environmental challenge.

Successful organizations are the ones that identify not only the need for change but also requirement to steal a march on their competitors. Innovative responses to triggers Holistic solutions Visionary leadership and committed support. Organizations have to be able to effectively identify the triggers of change. To see problems integratively to see them as wholes related to larger wholes

Ten Key Factors in Effective Change Management

Change is all pervasive 2. Effective Change Needs Active Senior Management Support 3. Change is a Multi-disciplinary activity 4. Change is all about people, pure and simple:- Change management is about people management, When managing change, you manage people. Remember the basics: Openness Communication Involvement 5. Change is about success
1.

6.

7.

8.

9.

10.

Change is a Perceptual Process Change is about identifying triggers, seeking vision, recruiting converts to the vision and maintaining and renewing the need for change on an ongoing basis. Effective Changes Require Competent Change Agents: To be fully effective, the change agents must have certain capabilities, over and above their functional skills and knowledge. In terms of methodology, There is No One Best Way: Which is advised, is that dont take a singular approach Change is about ownership:- Get ownership by getting involvement; get involvement by openness and communication; get people to live the change. Change Is about fun, challenge, and opportunity

Systematic Approach
Five faces of managerial work to carryout steps:
-

Analyzing and planning change Communicating about the change Gaining acceptance of the required changes in behavior Making the initial transition from the status quo to the new situation Consolidating the new conditions and continuing to follow up in order to institutionalize the change.

Keys to Mastering change

Change-adept organization share three key attributes, each associated with a particular role for leaders. The imagination to innovate: To encourage innovation, effective leaders help develop new concepts-the ideas, models, and applications of technology that set an organization apart. The professionalism to perform: Leaders provide personal and organizational competence supported by workforce training and development, to execute flawlessly and deliver value to ever more demanding customers. The openness to collaborate: Leaders make connections with partners who can extend the organizations reach, enhance its offerings, or energise its practices.

Classic Skills for Leaders

1.

2.

3. 4.

5.

Training into the Environment: You can create a network of listening posts-a satellite office, a joint venture, a community service, These stores allow the company to listen to and learn from customers. Challenging the Prevailing Organizational Wisdom: Rotate job assignments and create interdisciplinary project teams to give people fresh ideas and opportunities to test their assumptions. Communicating a Compelling Aspiration Building Coalitions: Change leaders need the involvement of people who have the resources, the knowledge, and the political clout to make things happen. Transferring Ownership to a Working Team

 Learning

to Persevere Making Everyone a Hero

BUILDING A STRATEGY Strategy is the art of guiding the organization so that it continues to exist and triumphs over its competitors. If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle. Sun Tzu (6th-5th century B.C.), Chinese General.

- Changes in organizational process

- Changes in organizational structure

Changes in organizational hierarchy

People-related changes-can be new people or new belief systems

What is Strategic Planning?

A management tool/roadmap to the future used to help an organization do a better job

To set priorities To focus its energy and resources To ensure management and staff are working toward common goals with clear expectations and accountability To ensure agreement with the intended outcomes/results of their efforts To assess and adjust the organizations direction in response to a changing environment

A disciplined effort that produces fundamental decisions and actions that shape and guide what an organization is, who it serves, what it does, and why it does it, with a focus on the future
113

What is Change Management?

A structured approach for managing change at an organizational level. It includes:

Readiness Assessments a strategy that creates data and analytics. This includes definition of the as is condition and the go to condition. Sponsorship - engaging senior managers as change leaders/agents Communications - building awareness of the need for change Education and Training - developing competencies and knowledge to support the change Coaching by Managers - helping employees move through the transition Measurement Systems, Rewards and Reinforcement methods to sustain the change

An array of tools that includes continuous process improvement, benchmarking and the identification of best practices, process mapping, statistical process 114 control, and business process reengineering.

Benefits of Strategic Planning and Change Management

Enhance communication, collaboration, and trust in OM/EO communities via an inclusive, participatory, and systematic process that will increase the effectiveness, efficiency, and quality of NIH administrative management services. Build a Roadmap for the future that includes a shared vision, clear priorities, goals, objectives, and intended outcomes that can be shared internally and externally Lead to action by establishing strategies that define how things will be done, by whom, and by when Establish clear accountability (organizations and individuals) Establish specific measures and targets and a process to collect and analyze data that allows to make sure we are doing the right things and doing them correctly Provide a foundation for consistent implementation of change management and promote the identification and use of best practices to better leverage resources Reduce the potential and impact of risks to NIH better address new external mandates and requirements in a manner that integrates ongoing internal initiatives
115

The Strategic Planning Model

Environmental Factors
Strategic Planning
Data collection and analysis Solicit community inputs Develop strategic plan - Set/modify organizations mission, vision, goals, and objectives

Evaluation and Accountability

Assess resource utilization Benchmarking Best Practices Monthly performance reviews Employee Performance Reviews (PMAP)

Tactical Planning

Org.

Develop annual budget and performance targets Develop tactical plans for programs and functional areas Develop Individual Performance Plans (PMAP)

Program and Budget Execution

Implement programs, administrative strategies, and change management initiatives

Shared Ownership & Communication s

Strategic Planning Process

Data Collection & Analysis
Monthly Tracking

Planning Sessions with Community Input Strategic Plan Planning Teams Implementation Strategies and Change Initiatives

Communication Plan

Key Measures

Accountability for Projects and Change Initiatives

Strategic Outcomes

In order for effective change to be implemented and take hold within an organization breadth and depth are required.

Managing Change Requires Looking at All the Dimensions

Past History in Putting Change in Place Degree of Sponsorship Authenticity of Sponsorship (Walk the Talk?) Organizational and Individual Current Stress Who Will Be Impacted by the Change Cultural Fit of the Change Addressing Whats in It for Me Communication of the Change and Its Progress Skill Sets of the Change Agents

Change = Motivation X Vision X Next Steps

Motivation

Some Good Reason to Give up the Status Quo Vision A Clear and Practical Vision of the Desired Future State Next Steps an Understanding of the Next Steps Required to Progress Toward the Vision If One Is Missing, Little Change Will Take Place

Develop a Compelling Vision

How

Things Will Be Better With the Change More Than Sloganeering Leaders and Change Agents Need Their Own Individual Visions and Need to Know How That Fits Into the Organizations Vision People Need to See How They Fit Into That Vision

Change Is a Journey, Not a Destination

Develop Detailed, Multi-dimensional Plans Change Description Business Objectives Human Objectives Key Role Map Vision Detailed Activities, Resources, Timelines Measurements Recognize That This Is a Journey Will Need to Adapt Plan As Needs Change

Warning: Need to Balance Preparing For and Implementing

There Is a Need to Develop a Comprehensive Plan for the Change There Is a Need to Get the Organization Ready for the Change But If It Takes Too Long, People Lose Interest and Motivation So, Plan for Short Projects That Will Engage the People

Creating a Strategy
a)

b)

c) d)

e)
f)

Evolutionary/Institution Building Jolt and Refocus: Such an approach is often used to shake up a grid locked power structure. Follow the leaders Multi-front Direct Systematic Redesign Unit-level mobilising

Sustaining Momentum
Navigation demands sensitivity on the part of change leaders, who need to detect the reverberations of change to adjust their strategy as the transformation take shape. Successful leaders recognize that the exact course and duration of a transformation cannot be mapped in advance; complicated plans detailing changes from beginning to end will be wasted. But processes to monitor and manage the change are vital if leaders are the sense infection points and move from one episode to the next without faltering.

Transforming a company is not a science: there are no formulae for success. By viewing a company from three perspectiveshow performance needs to change and how fast; leaders aspirations and preferences; and the sources of energy available to drive the change we can gain insight into what strategy will work.
A successful strategy demands effective executive, which would depend upon the type of initiative chosen that links the source of energy to the right performance levers. One should be sure to exploit the interdependent dynamics of the initiatives that keep the change moving ahead.

Build a Strong, Committed Management Coalition

At All Levels Within the Organization Teach Them Their Job Establish a Clear Vision Articulate That Vision Communicate With the Affected Groups Focus Energies on Their Direct Reports Monitor Progress Eliminate Obstacles Recognize and Reward Short-term Wins Stick With It for the Long Haul

Identify All the People Who Are Affected or Who Need to Be Involved

Create a Key Role Map of the Formal Organization Sponsors (at All Levels) Change Agents Targets Augment With Identification of Informal Organization Key People (Understand Why They Have This Influence) Opinion Shapers Gate Keepers Idea Champions Develop an Understanding of Their Level of Influence Level of Commitment to the Change

Analyze Their Readiness for Change

Assess the Organization on Their Readiness for This Particular Change Surveys One-to-One Discussions Understand Where People Are Early Adopters Late Adopters Laggards Are There Outside Organizations That Are Influencers? Understand Their Frames of Reference and Develop Communication Strategies

Start Where People Are Most Receptive

Avoid

the Dedicated Resistors, Focus on Early Adopters (About 20% of the Population) Helps to Get Some Early Wins

People Dont Resist Their Own Ideas

Get

People Involved Early in the Planning Even If They Cant Plan What, They Can Plan How They Are Changed by the Act of Participating in Planning the Change Surfaces Resistance Early and Can Potentially Manage It

Manage the Driving Forces As Well As the Restraining Forces

What Forces Affect Your Change Project?
Driving forces Dealing only with this side will immediately generate counterforces Restraining forces - personal psychological defenses or group norms embedded in the organizational or community culture. Career-based organization Low turnover Success Stable environment Criteria of success not visible Lack of clear authority

Changes at the Top Powerful external influences Powerful leader Acceptance of need to change Externally focused Crisis of opportunity

Establish a Dam Good Reason to Change

Substitute

One Fear for Another

Make the Anxiety Associated With Not Changing Greater Than the Anxiety of Changing Intentionally Create Disorder
Remove

the Mechanisms That Allow People to Stay the Same

Say It Once, Say It Twice, and Say It Again

Keep It Simple No Jargon Use Language of the People Use Storytelling Use Different Mediums Memos Group Meetings Stories in Newsletters One-on-one Meetings (Have Different Levels of Impact) Change Style of Communication Depending Upon Where You Are in the Change Who You Are Communicating With Walk the Talk, Be Honest

Eclipse Memo From Director General to Manager: Today at 11 O'clock There Will Be a Total Eclipse of the Sun. This Is When the Sun Disappears Behind the Moon for Two Minutes. As This Is Something That Cannot Be Seen Every Day, Time Will Be Allowed for Employees to View the Eclipse in the Car Park. People Should Meet in the Car Parking Area at Ten to Eleven, When I Will Deliver a Short Speech Introducing the Eclipse, and Giving Some Background Information. Safety Goggles Will Be Made Available at a Small Cost. Memo From Manager to Department Head: Today at Ten to Eleven, All Staff Should Meet in the Car Parking Area. This Will Be Followed by a Total Eclipse of the Sun, Which Will Disappear for Two Minutes. For a Moderate Cost, This Will Be Made Safe With Goggles. The Director General Will Deliver a Short Speech Beforehand to Give Us All Some Background Information. This Is Not Something That Can Be Seen Every Day.

But Monitor the Communications

Memo From Department Head to Floor Manager: The Director General Will Today Deliver a Short Speech to Make the Sun Disappear for Two Minutes in an Eclipse. This Is Something That Can Not Be Seen Every Day, So People Will Meet in the Car Parking Area at Ten or Eleven. This Will Be Safe, If You Pay a Moderate Cost. Memo From Floor Manager to Supervisor: Ten or Eleven Staff Are to Go to the Car Parking Area, Where the Director General Will Eclipse the Sun for Two Minutes. This Doesn't Happen Every Day. It Will Be Safe, but It Will Cost You. Memo From Supervisor to Workers: Some Workers Will Go to the Car Parking Area Today to See the Director General Disappear. It Is a Pity This Doesn't Happen Every Day!

Encourage the Heart

In

Terms That Have Meaning to Individuals and Teams

Ask Them What a Reward Would Look Like to Them

Highly

Visible Reward Throughout the Change, Not Just at the End

Show Results Early and Often

Plan for Goals (Long and Near Term) That Are Measurable, Tangible and Clear Explicitly Tied to Vision Not a Count of Activities Performance Results That Matter to Customers, Employees or Shareholders Reduction in Delivered Defects Reduction in Cycle Time Reduced Escaped Defects Resulting in Reduced Rework

Prepare for Implementation

Things

Often Get Worse Before They Get Better Increase the Communication
Change the Medium and Words Focus on What Is Ahead Provide As Much Information As Possible
Allow

Resistance to Surface and Manage It

Validate the Feelings of People

Resistance

Can Be at Systemic or Behavioral Level

Systemic Lack of Appropriate Knowledge, Information, Skills and Managerial Capacity (Cognitive)/ structural level Behavioral Reactions, Perceptions and Assumptions (Emotional)

Acknowledge

the Pain of Changing

Deal With the Four Fs of Loss and Change

Letting Go of Familiar Past (Perhaps a Romanticized View) Confronting Feelings About an Uncertain Future Dealing With Loss of Face Redesigning a Focus on New Realities Working on These in Public, Facilitated Forums, Allows People to Constructively to Express Their Anxiety and Anger and Helps to Reduce Passive-Aggressive Inertia and Sabotage

Dont Resist Resistance

Resistance Is Inevitable A Natural Function of Change Manageable Resistance Is Not Necessarily Logical A Sign of Disloyalty To Be Taken Personally A Sign That the Change Project Is Out of Control

Facilitate, Rather Than Just Train

Train Managers As Facilitators for the Change Helps Them to Demonstrate Active Commitment to the Change Can Immediately Reinforce the Training on the Job Trainers Are Generally Not Held Accountable for Achieving Results

Use a Variety of Mediums to Build Competency in the Change

Study

Groups On-the-Dash Coaching Web-based Classroom Training

Recognize Every Person Is a Change Agent

Educate

Leaders of the Change As Well As the Targets of Their Roles in the Change
To Be Open to Change To Anticipate Change, Not Just React to It To Accept That Change Causes Stress and to Developing Coping Mechanisms

Change Agents Must Be Able to Work With Opposites--Polar

Simultaneously Pushing for Change While Allowing Selflearning to Unfold Being Prepared for a Journey of Uncertainty Seeing Problems As Sources of Creative Resolution Having a Vision, but Not Being Blinded by It Valuing the Individual and the Group Incorporating Centralizing and Decentralizing Forces Being Internally Cohesive, but Externally Oriented Valuing Personal Change Agency As the Route to System Change

Final Thoughts
The Ultimate Measure of a Man Is Not Where He Stands in Moments of Comfort, but Where He Stands at Times of Challenge and Controversy Martin Luther King, Jr.

Somebody Has to Do Something, and Its Just Incredibly Pathetic That It Has to Be Us. Jerry Garcia, the Grateful Dead

There is this interesting experiment on frogs. When a frog is put in a hot water, he quickly jumps out of it. However, if you put him in cool water and slowly heat it or pour hot water, the frog does not jump out, he becomes sluggish and enjoys the cosy warmth. And finally, he may diewould rather die- in the hot water then jump out there are more managers in most organisations, which refuse to adapt themselves to the changing environment, they get addicted to the status quo and fear or resent the proposed change.

Preparing Yourself for Change Al Gore, the Vice President of the United States of America has cited in his book, Earth in the Balance, an anecdote relating to Mahatma Gandhi. It reads: Ghandhiji was approached one day by a woman, concerned that her son ate too much sugar. She requested him to counsel her son about its harmful effects. The Mahatma promised to do so, but asked her to return after a fortnight. This she did, and Gandhiji advised the boy as he had promised. The mother was profuse in her gratitude, but could not conceal her puzzlement as to why Ghandhiji had insisted on the interval of two weeks. He was honest in his reply, and said, I needed the two weeks to stop eating sugar myself.
Let him that would move the world, first move himself Socrates Understand your own self.

I m OK. Its the others who are hindrance to change because of their negative attitude or lethargy or lack of vision or absence of will or skill to change If you decide to open your gate of change to really understand and live the principles, your growth will be evolutionary, but the net effect will be revolutionary

Stephen R. Covey

Assemble a change management team Establish a New direction for the Organisation Prepare the Organisation for Change Set up Change Teams to Implement Change Align Structure, Systems & Resources to Support Change Identify & Remove Roadblocks to Change Absorb Changes into the Culture of the Organisation.

Change is a highly interactive phenomenon, and its human face must be delicately attended to. If this is done with imagination & skill, it can pave the way for contributing to the health & growth of an organization & its people.

Session---7 An overview of OD Interventions

Practitioners

have created an array of interventions to help organization members address specific problems effectively. OD is a complete strategy for change that encompasses theory, practice methods, and values. Interventions are just one component of the OD formula.

OD interventions are sets of structured activities in which selected organizational units (target groups or individuals) engage in a task or a sequence of tasks with the goals of organizational improvement and individual development. Consultant usesacceptant(the consultant gives the client a sense of worth, values, acceptable, and support); catalytic (the consultant helps the client generate data and information to restructure); the clients beliefs and action); prescription (the consultant tells the client what to do to solve the problem); and theories and principles(the consultant teaches the client relevant behavioral science theory so the client can learn to diagnose and solve his or her own problems).

The following list shows some of the results one can expect from OD interventions. 1. Feedback. It refers to learning new data about oneself, others, group processes, or organizational dynamics 2. Awareness of Changing Sociocultural Norms or Dysfuntional Current Norms. Often people modify their behavior, attitudes, and values when they become aware of changes in the norms influencing their behavior

3.

4.

5.
6. 7.

8.

Increased Interaction and Communication. Increasing interaction an communication between individuals and groups causes change in attitudes and behavior. Confrontation. This term refers to surfacing and examining differences in beliefs, feelings, attitudes, values, or norms to remove obstacles to effective interaction. Education. Education activities upgrade Participation Increased Accountability. Increased Energy and Optimism

Another way to classify OD interventions is by the primary target of the intervention, for example, individuals, dyads and triads, teams and groups, intergroup relations and the total organization.

Target group
Individuals Dyads/Triads

Interventions Designed to improve Effectiveness

Life-and career-planning activities Coaching and counseling Process consultation Role negotiation technique

Teams and Groups

Team building-Task directed -Process directed Team MBO Quality Circles Self-managed teams
Intergroup activities-process directed -Task directed -Organizational mirroring -Survey feedback MBO(participation forms) Cultural analysis Quality of work life(QWL) programs Total quality management(TQM)

Intergroup Relations

Total Organization

Structural Interventions and the applicability of OD

The structural interventions that are frequently labeled OD or linked to OD: sociotechnical systems(STS), self-managed teams, work redesign, management by objectives(MBO), quality circles, quality of work life projects (QWL), parallel learning structures (or collateral organizations), physical settings, and total quality management (TQM). (We will also examine reengineering, and intervention modality that is usually not considered OD, but nevertheless, needs to be understood by OD practitioners and clients).

SOCIOTECHNICAL SYSTEMS
As directed by Cummings and Worley, STS theory has two basic premises, One is that effective work system must jointly optimize the relationship between their social and technical parts. The second premise is that such systems must effectively manage the boundary separating and relating them to the environment in such a way that effective exchanges occur with the environment along with protection from external disruptions. Furthermore, the implementation of STS is seen as highly participative involving all the relevant stakeholders, including employees, engineers, staff experts, and managers.

The formation of autonomous work groups (the terms self-managing or self-managed are now more frequently used), the grouping of core tasks so that a team has a major unit of the total work to be accomplished, the training of group members in multiple skills, delegation to the work group of many aspects of how the work gets done, and the availability of a great deal of information and feedback to work group for the self-regulation of productivity and quality.

 Self

Managed teams: Problems in implementation Work redesign

Core Job Characteristics

Skill variety Task identity Task significance

Critical Psychological States

Experienced meaningfulness of the work

Outcomes

High internal work motivation

Autonomy

Experienced responsibility for outcomes of the work

High growth satisfaction

High general job satisfaction

High work effectiveness

Feedback From Job

Knowledge of the actual results of the work activities

Moderators -Knowledge and skill -Growth need strength -Context satisfactions

MBO AND APPRAISAL

1.

2.

3.

4.

5.

6.

A collaborative diagnosis of organizational problems, from which it is concluded that a collaborative MBO effort would be functional Increased skills in interpersonal communications and group processes. (this point will be crucial to the team aspects of this approach.) Real subordinate participation, in team configurations, in setting goals A team approach to reviewing individual and group targets and their achievement. Ongoing individual and team problem-solving discussions with superiors A continuous helping relationship within teams and in superior-subordinate relationships. (This characteristic will not occur quickly; a win-win climate that says Lets try to help each other succeed needs to emerge).

7.

Attention to personal and career goals in a real effort to make them complementary to organizational goals.
QUALITY CIRCLES QUALITY OF WORK LIFE PROJECTS At some General Motors plants QWL projects have included some of the following features: Voluntary involvement on the part of employees Union agreement with the process and participation in it Assurance of no loss of jobs as a result of the programs

Training of employees in team problem solving The use of quality circles in team problem solving The use of quality circles where employees discuss problems affecting the performance of the plant and the work environment Work team participation in forecasting, work planning, and team leader and team member selection Regular plant and team meetings to discuss such matters as quality, safety, customer orders, and schedules Encouragement of skill development and job rotation within work teams Skill training Responsiveness to employee concerns

PARALLEL LEARNING STRUCTURES Parallel organizations, or collateral organizations work redesigning efforts, open systems planning programs, and the coordination of employee involvement teams. PHYSICAL SETTING AND ODSetting manages open and transparent.

TOTAL QUALITY MANAGEMENT The following features tend to characterize TQM. This list is largely based on total quality conferences held in the United States and aboard by the Conference Board and on a special issue of Business Week entitled The quality Imperative.

Primary emphasis on customers. The development of an organizational culture in which employees at all levels, including the CEO, give paramount treatment to customer needs and expectations.

Daily operational use of the concept of internal customers. Emphasis on the concept that work flow and internal interdependencies require that organizational members treat each other as valued customers across functional lines as well as within units.

An emphasis on measurement using both statistical quality control and statistical process control techniques. Statistical quality control is a method of measuring and analysing deviations in manufactured products; statistical process control Is a method of analysing deviations in manufacturing processes. Competitive benchmarking. Continuous rating of the companys products and practices against the worlds best firs, including other organizations in other industries. Continuous search for sources of defects with a goal of eliminating them entirely. The Japanese call it kaizen. Participative management. It includes extensive delegation and involvement and a coaching, supportive leadership style

An emphasis on continuous training. Learning new and better ways of doing things and adding new skills are essential. In many organizational training is reinforced by changes in the reward system, for example, the introduction of skill-based or knowledge-based pay. Top management support on an ongoing basis. A long-term perspective and a long-term commitment is required on the part of top management.

REENGINEERING Reengineering seeks to make such processes more efficient by combining, eliminating, or restructuring activities without regard to present hierarchical or control procedures.

HIGH INVOLVEMENT AND HIGH-PERFORMANCE WORK SYSTEMS The terms high-involvement organization, and high performance organizations are seen by Ledford, Lawler, and Mohrman as largely synonymous, but they see high involvement as more descriptive and less loaded than the other terms. High performance and high commitment are possible out-comes in organizations that are designed for high involvement, but may not occur if environmental conditions are unfavorable or if the high involvement design is poorly implemented. Thus they prefer the term that connotes the basic strategy or process that is usedhigh involvementrather than one that connotes a desired outcome.

LARGE-SCALE SYSTEMS CHANGE AND ORGANIZATIONAL TRANSORMATION Replacement of the top management team Redefining the nature of the business from transportation to service Diagonal task forces to plan changes A reduction in hierarchical levels Substantial downsizing of the workforce, including middle management, without layoffs Team building (off site). Including role clarification and negotiation Process consultation

Modifying the budget process Top management commitment and involvement Personal staff trained to be internal consultants Peer support group Performance-based compensation and profit sharing Experiential training programs for senior and middle managers including feedback on managerial behavior Open communications

SUMMARY OF THE CHARACTERISTICS OF SELECTED STRUCTURAL INTERVENTIONS

The following summarizes some of the differences and similarities as well as the overlap between sociotechnical systems systems (STS), self-managed teams, work redesign, MBO, quality circles, quality of work life(QWL) programs, parallel or collateral structures, physical settings, total quality management (TQM), reengineering, and largescale systems change. The creation of self-managed teams involves Providing teams with a grouping of tasks that comprises a major unit of the total work to be performed; Training group members in multiple skills, including teameffectiveness skills Delegating to the team many aspects of how the work gets done;

1. a)

b)

c)

d) Providing a great deal of information and feedback, for selfregulation of quality and productivity; e) Solving the problem of dislocation of first-line supervisors and; f) Reconceptualizing the role of managers with emphasis on coaching, expediting and co-ordinating (Walton, Lawler, and other) Work redesign theory suggests that a) Motivation and performance can be enhanced through redesigning jobs to heighten skill variety, task, identify, task significance, autonomy, and feedback from the job. b) The concept can be extended to the creation of selfmanaged teams; and
c)

Third-party assistance in the development and monitoring of group norms can be useful(Hackman and Oldham)

3.

a)

b)

c)

d)

Traditional MBO theory assumes the need for systematic goal setting linking the goals of superiors to subordinates and that Objectives or targets should be stated in quantitative terms whenever possible, Goal setting and appraisal should be one-on-one dialogues between superior and subordinate. However, additional conceptualization and experience indicate that MBO can vary on an automatic participative continuum and that MBO can feature a participative team approach (French and Hallmannn, Likert and Fisher).

5. Quality circles, at least the participative, problem-solving versions, are based on the assumptions that many, if not most, employees are willing to work collaboratively in group settingsboth natural work teams and cross-functional teamson problems of product quality and system effectiveness, and that they can learn to effectively utilize both technical and process consultants, providing they are :a) Trained in quality control concept and the relevant measuring techniques, and are b) Trained in group dynamics, team leadership, and interpersonal communication skills 6. Quality of Work life(QWL) programs vary in content but frequently include restructuring of several dimensions of the organization, including a) Increased problem solving between management and the union b) Increased participation by teams of employees in shop floor decisions pertaining to production flow, quality control, and safety; and

c)

Skill development through technical skill training, job rotation, and training in team problem solving (Fuller, Carrigan, Bluestone, Goodman, Lawler, Ledfor, Walton, and others). 7. Parallel learning structures(or collateral organizations) ar organizations established within ongoing organizations and have the following features: a) A mandate to deal with complex, nonroutine, future-oriented problems and/or to coordinate large-scale systems change; b) The creation of different norms and culture to enhance creative problems solving and to create a model organizatrion fromm which the organization can learn (Zand, Bushe, and Shani)

8.

9.

A)

B)

C) D) E) F)

Physical setting or arrangements can be the focus of interventions that can utilize and be highly congruent with OD techniques and assumptions(Steele). Total quality management (TQM) programs are combination of a number of approaches including: A high emphasis on customers, including internal customers The use of statical quality control and statistical process control techniques; Competitive benchmarking Participative management; An emphasis on teams and teamwork and; An emphasis on continuous training (Peter and Peters, Ciampa, Sashkin, and others),

9.

a)

b)

i)

ii)

Reengineering as currently conceptualized (Hammere and Champy) Focuses almost exclusively on streamlining business processes, and Appears to pay little attention to the humansocial system. However, it appears theoretically possible for reengineering programs to utilize OD approaches in which Collateral organizations are used extensively, and Organizational members are extensively involved and adequately protected.

11.

a) b) c) d)

e) f) g)

Large-scale systems change(including organiztional transforamtion) with an extensive OD thrust typically requires a multiplicity of interventions over an extended time frame, including A reconceptualization of the nature of the business The use of al parallel learning structure; A reduction in hierarchical levels; Team building and development, including the use of cross-functional teams; Survey feedback; Extensive use of task forces; and Intensive leadership training(Nadler, Ackerman, Porras and Silvers, Cummings and Worley, Weisbordm and others)

Roles of Change Agents and Leadership

Persons who act as catalysts and assume the responsibility for managing change are called change agents. Change can be brought about by managers, non managers, employees or an outside consultant. The following describes types of roles played by change agents. Internal Consultant Internal Support to External Consultant Task force Role of Organizational Management Evolving policy and legitimizing change Institutionalizing change

Two factors are extremely important in institutional change 1. That the change efforts or the new approaches have helped in enhancing performance, and 2. That the initiatives started by the management team are taken forward by the successive management.

SKILLS REQUIRED FOR THE ROLE OF A CHANGE AGENT

A

sensor for the business environment Vertical to horizontal functioning Leadership at all levels Manager as a catalyst Shorter time-frame horizon Balancing work and personal life Maximization of information flow

An effective Change Agents needs the following areas of expertise Strategy formulation, Human resource management, Marketing and sales, and Negotiation/conflict resolution For a successful management of change, the change agent needs to follow the steps that would serve as building blocks

Role of HRD in Managing Change

1. 2. 3. 4. 5. 6. 7. 8. 9.
10. 11.

FREEZE CHANGE Proving support to sustain in embedded change IMPLEMENTING CHANGE MANAGING TRANSITION Incremental changes for improvement COMMUNICATING EFFECTIVELY Developing awareness/winning confidence CHALLENGING THE STATUS QUO Stirring the environment of psychological discomfort
DEVELOPING VISIONARY LEADERSHIP Creating shared vision PREDICTING AND MANAGING RESISTANCE Mobilizing commitment DEVELOPING PROCESS OF CHANGE/CULTURE

12.
13. 14.

a)

b)

Role of Leader Leadership for Change LEVEL 5 LEADERSHIP: GOOD TO GREAT : Collins (2001) has given an alternate model of organizational change based on his and his teams research of financial performance of 1435 firm, He found that every good to great company had Level 5 leaders during critical transition period and journey to greatness has six common steps: First Who, then What: These leaders focused on choosing their team before developing vision and goals. This shows their focus on persons based on their talent and skills. Confront the Brutal Facts: These leaders confronted the reality squarely and did not evade the situation. They also had faith in the capability of their organization to meet the challenges.

c)

The Hedgehog Concept: These companies aimed at being the best in the world; and nothing short of it. They were consistent and passionate about applying the fundamental principles and key economic denominator that made them great. d) A Culture of Discipline: The great companies hired disciplined people and had a culture of self discipline in thought and action. The firms had a consistent system and gave freedom and autonomy to people e) Technology Accelerators: These companies used technology to enhance business results and did not focus on pioneering a technology; in fact these became pioneers in application of some of the technologies

f) The flywheel and the Doom Loop: In these companies transformation from good to good to great happened through relentles hard work and sustained efforts in one direction for a long period of time building momentum till the company reached the point of break-through and crossed it. It is evident that organization transformation is neither simple nor one off effort Sustainable efforts and momentum in a specified direction bring about this change. The above six points have emerged from the study of 11 companies that moved from good to become great companies.

Transformational Leadership Transformational and transactional leadership Key competencies in transformational leaders.
Comparison of Transformational and Transactional Leadership

Transformational Leadership Transactional Leadership

Promotes change Shares vision, values, and emotional bonding Provides Intellectual stimulation Develops pride, gains trust and respect Provides personal attention

Maintains stability Goes into contractual arrangement Provides guidance & role clarification Promises reward for performance Interactions mostly formal and officious

Ability for assessment of current situation Ability to challenge the status quo Adaptability to the changing environment Ability to have a long term vision Capability to articulate and practice a set of core values Risk taking ability Communication skills Sensitivity and ability to arouse passion Understanding and practice of equity, power and freedom Building coalition Flexibility and openness to experience Ability to make fast decisions Ability to modify systems An effective change leader requires clarity of vision, knowledge of what is to be changed and skills to implement change.

Human Resource Development and the Management of Change

The learning organizationpot of gold or chasing rainbows? Learning Organization or The Learning Company (Pedler et al., 1991).

What is Learning Organizations? The Fifth Discipline by Mr Senges . Definitions:Nokia: The fact that learning organization has become a buzzword should not obscure the point that the idea provides Nokia with a fresh approach to understanding change.Jorma Ollila, chief executive officer and president.

Revi suisse-Price Waterhouse:Being a learning organization is a process. This process is necessary to keep things moving. Changes are much easier to achieve when you are moving. When you stand still, you cant realise change-Peter Weibel, chief executive officer.

British Petroleum:- The learning organization is one that consciously manages its learning processes at the individual, team and organizational levels as a primary means of achieving its vision, values and strategic aims.-Peter Moore, human resources strategy advisor.

Reward management and the management of change Managing change through employee involvement