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Management of Change
in the Context of
New Socio Economic & Geo Political Realties in Post WTO Scenario
Economic & Social Forces Driving Need for Major Change in Org
Technological Change Faster and better communication Faster & better transportation More information networks connecting people globally International Economic Integration Fewer & Reduced tarriffs( WTO ) Currencies linked via floating exchange rates More global capital flows Maturation of Market in Developed Countries Slower domestic growth More aggressive exporters More deregulation Fall of Communist & Socialist regimes More countries linked to the capitalist system More privatization
MORE Opportunities MORE HAZARDS Bigger markets More competition Fewer barriers Increased speed Change Mgmt by Dr. Ali Sajid
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Economic & Social Forces Driving Need for Maj change in Org.
More large-scale change in Org To avoid hazards and/or capitalize on opportunities, firms must become stronger competitors. Typical transformation methods include: Mergers & acquisitions Reengineering Strategic Change Restructuring Cultural Change
Quality Programs
Organization Compared
Twentieth Century
Structure
Twenty-First Century
No bureaucratic, with fewer rules & Structure employees Bureaucratic Limited to fewer levels Multi-leveled Organized with the expectation that Organized with the expectation that mgt will lead, lower-level employees senior management will manage will manage. Characterized by policies & Characterized by policies & procedures that create many procedures that produce the minimal complicated internal internal interdependence needed to interdependencies serve customers. Systems Systems Depend on few performance info Depend on many performance info systems. system, providing data on customers Distribute performance data to especially executives only Distribute performance data widely Offer mgt training & support systems Offer mgt training & support system to senior people only to many people Culture Culture Inwardly focused Externally oriented Centralized Empowering Slow to make decisions Quick to make decisions Political Open & candid Risk averse Change Mgmt by Ali Sajid Dr. More risk tolerant 9
Current Model
Twenty-firstcentury Prototype Hierarchy Organization Network Self-sufficiency Structure Interdependencies Security Worker Expectations Personal growth Homogeneous Workforce Culturally diverse B individuals Work By teams Domestic Markets Global Cost Competitive Advantage Time Profits Focus Customers Capital Resources Information Board of directors Governance Varied constituents Affordability Quality No compromises Autocratic Leadership Inspirational
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Why Change ?
World of work- Changing as org of
Change?
The most important question in performance evaluation becomes not How well did you perform your job since the last time we met? But
Concept of Organization
Old way to view org is known as chain of command. Developed in 1840s, when businesses -needed to manage mass production, wide distribution, & geographically dispersed orgs. Doesnt describe Org as Flow of Process. Tends to emphasize: Individual accountability rather than Group Process, or output of group & process. There is no reference to Products or Customers in this view. Purpose of the org is accountability & control.
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Learning Org & Organizational Structure Effectiveness of any Leadership System depends in part on its orgl structure Clarification of authority Responsibility Reporting lines Performance standards to develop structures that help them to maintain stability.
a. b. c. d.
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CHANGE
An Essential part of Creativity & Inov. In mgt change is expected to be a Part of Everyday life. As it is said that
Nothing is certain but death & taxes But A third certainty could be added i.e." CHANGE
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Technological Factors
Clients
Social Factors
Competitors
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Select one word that symbolizes the world we live in CHANGE Change was always there but it used to be incremental Today we are faced with change that is exponential change heaped upon change Change flows and endures
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Change Management A systematic approach to dealing with change, both from the perspective of an organization and of individual level.
A proactive approach to dealing with change is at the core of all three aspects.
For an org, Change Management means
Defining & implementing procedures and/or technologies to deal with changes in the business environment & to profit from changing opportunities.
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Brain Teasers Dont change with the times change before the times
Darwin
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It is not the strongest of the species that survives, nor the most intelligent, but rather the one most responsive to change
Charles Darwin
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Key Questions while Assessing Type & Amount of Change for Quality. 1. How extensive should the change be? If extensive, transformation may be required. 2. Is change really needed? Is the organization simply choosing the easiest thing to change? This entails an accurate diagnosis of organizational problems & a sound change plan. 3. kinds of results desired, lT ST? ST- Transitional; LT require transformation. 4. kind of change - org able to make? Some - more difficult to change . 5. kind of implementation plans currently in place? evaluated to ensure -fit with new plans & programs. 6. Consequences of not changing at all? Massive org change can be very traumatic for firms; sometimes costs of the change may be too high.
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Understanding the Model for Change: Source of Dissatisfaction with Status Quo
For Change dissatisfaction originate from many sources. Customers demanding hi standards; Want no defects,want on time delivery at
reasonable prices.
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Understanding Change Model: Implementation Implementation plans (P) need to establish momentum to accomplish desired change.
Sequences of events, programs, meeting, & activities designed to help employees learn new perspectives, skills, attitudes, & behaviors. Strategic initiatives -executed which specify assignments,
objectives, & outcomes for particular programs. Change programs, different elements of org design, tasks, people, structures in place,to be altered to accomplish strategic objectives.
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When change occurs, crucial organizational dynamics usually shift at same time. Power can change from one group to another. Finance group went from being critical action group to playing support roles, during transformation process at Ford
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Understanding Change Model: Cost of Change Once change - made & org fully adapted to new vision while remaining open to further change as needed, reinforcement & consolidation of change must occur so that Sustained achievement of intended results & continual actions in accordance with new vision & values routine.
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Systems, performance appraisal, MIS that support goal need to be finalized. Understanding & interpreting reasons for success & problems, & continual use of themes and symbols, are critical so that org can look at the problems & possibilities for next round of change.
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Process Of Innovation
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Promotes & actively supports Entrepreneurial Manager Confident of ability. Willing to take risks. Seizes opportunity. Expects surprise. Makes things happen. Creativity
Manager as Trustee
Threatened by changes.
Bothered by uncertainty. Prefers predictability. Supports the status quo. Waits for things to happen. Avoids & even discourages
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4.
Final Application- new product finally commercialized or Put on sale in open market, or new process is implemented as part of normal operating routines.
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Barriers To Inov!
Top Mgt Isolation- Fosters misunderstandings & contributes to a riskaverse climate. Intolerance to Differences- Denies uniqueness, creates homogeneity,& brands as troublemakers those who question status quo. Vested Interests- focus on part rather than whole & emphasizes defense of one's turf against encroachment of outsider. Short Time Horizons- Emphasizes Short Term Goals rather than potential for New ideas to generate LT gains. Overly Rationale Thinking- Tries to make creativity a systematic process & emphasizes schedules over results. Inappropriate Incentives - Uses Rewards & Control to Reinforce Routines, Discourages Surprises & Differences Linked to Inov.
Excessive Bureaucracy- Gives Preference to Rules, Procedures & Efficiency that frustrate creativity & inov.
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Internal Change
Within orgs As a result of new orgl objectives & cultures Both types are interrelated. Linkage frequently results from changes in values & attitudes that affect people in system.
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Why People Resist To Change in tech org? Lack of Trust- Promises of improvement likely to fall
on deaf ears, if employees do not trust mgt. Mgr- unlikely to permit necessary participation if they dont trust their people. Fear of Failure- just as student doubts their chances of ever graduation, challenges presented by significant on job changes can also be intimidating. Personality Conflicts- mgr - disliked by their people -poor conduits of change.
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2. Proactive Process- mangt tries to change things by setting a new course rather than by correcting current one.
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Magrs must stimulate & Lead change in order to create learning orgswith core ingredients:
Mental Models- everyone sets aside old ways of thinking. Personal Mastery- everyone becomes self aware & open to others. System Thinking- everyone knows how whole org works. Shared Vision- everyone understands & agrees to plan of action. Team Learning- everyone works together to accomplish plan.
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Orgl Effectiveness
Result of activities that improve Orgs Structure, Technology & People.
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G.E-transformational change 1988 - WORKOUT program. to org act with Speed, Simplicity, & Self-Confidence,
town meetings within business units to hear strategy of business unit presented by sr mgt, to diagnose problems might present, & to develop team & cross functional solutions to problems.
Data about org processes, measurements, & procedures discussed with assessments of political processes drive behavior one way or another.
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Basic questions can help determine the desirability of a vision for change
1. who are satisfied today,will this keep them satisfied? 2.If the vision is made real,how it affect customers? 3.For those who are not entirely happy today, will this make them happier for people who dont buy from us now, will this attract them? 4.In a few years, will we be doing a better job than the competition of offering increasingly superior products & services that serve real customer needs?
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Basic questions can help determine the desirability of a vision for change 1.How will this vision affect stockholders? Will it keep them satisfied? 2. If not entirely happy today, will this improve matters? 3.If we are successful in implementing this change, are we likely to provide better financial returns than if we do otherwise?
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Basic questions can help determine the desirability of a vision for change 1. How will this vision affect employee? 2. If they are satisfied today, will this keep them happy? 3. If they are disgruntled, will this help capture their hearts & minds? 4. If we are successful, will we be able to offer better employment opportunities than those firms with whom we compete in labor markets?
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or heritage.
Yet take a hard look at what routines & structures no longer work & seek to move beyond them.
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sources.
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Powerless as a result.
Their traditional role as authoritarian changed, feel disenfranchised
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HR & Quality Mgrs to select, train, & development, etc - to facilitate moves toward QM. H R mgrs assist in design & delivery of QM programs can work strategically with CEO office & committee to ensure satisfactory program design, delivery, & assessment.
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Plan should enable org to bridge gap between what is and what should be. While plan itself can be relatively simple, essential elements must include a) specification of clear roles b) responsibilities for all parties to change.
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Which Plan?????
Planned Or Emergent
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ENVIRONMENT
Stable
Turbulent
Planned
Emergent
Approaches to Change
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The Change Process-III Planning the Change Process comprises six interrelated activities; 1. Establishing a change mgt team. 2. Mgt structures.
3. Activity Planning
4. Commitment Planning 5. Audit & post audits. 6. Training
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Be provide to employees at all levels simultaneously so that clear messages are reinforced all at once. Be skills based, measurable, & with attainable outcomes. Be designed by HR Dept in concert with mgmt. Play an active role in Change Mgmt by Dr. Ali Sajid need diagnosis, developing,& delivering training.
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An example of a dysfunctional culture is a high-tech company that stresses individual rewards while innovation depends on teamwork. To change mgt practices, org must first address their fundamental values.
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Cultural values -often seen in mission & vision statements of org Culture - powerful influence on behavior because it is shared widely & operates without being talked about, often without being thought of. Culture is reflected by mgt policies & actions that a company practices.
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responsibility
Breaking down of org barriers Improvements that are linked to company objectives Realignment of reward & measurement systems.
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COMMUNICATE, INVOLVE PEOPLE, Effective communication is critical from & BE HONEST beginning of a change effort. EveryIelement
of change must be talked about, presented, & discussed, Managers to gauge peoples reactions & consequences of making change. Believable info - stimulates enthusiasm & clearly demonstrate reward for participation, is key to successful communication about M o C . Companies publicize heroes, & celebrate who Change Mgmt by Dr. Ali Sajid 94 epitomize desired behaviors, reward for
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9. COMMUNICATE, INVOLVE PEOPLE, & BE HONEST - II Supervisors to fully understand program & be able to communicate it as coaches to employees. Rewards must also be publicized. Else Employees in one company did not believe that their initiatives would be taken seriously.
Groups efforts if praised & made front page other groups begin to take new initiatives seriously. Recognition must be consistent with desired behavioral standards & business values.
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Though any org change, the org leaders must prove their commitment to change itself.
By reinforcing new behaviors, managers emphasize importance of transformation. Senior mgmt commitment to programs must demonstrate daily. Change is an ongoing process, difficult to keep tenth commandment. Process of adaptation & change is the behavior that should be reinforced& institutionalized, not change itself. Executives want investment in training, systems revision, process analysis, diagnosis, surveys, & all tools has a good payout. Change Mgmt by Dr. Ali Sajid 96
10. REINFORCE & INSTITUTIONALIZE THE CHANGE - II One of problems associated with major organizational
Maintaining this commitment is critical for reinforcing & institutionalizing any change.
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10. REINFORCE & INSTITUTIONALIZE THE CHANGE - III Anchoring Change in a Culture Comes last, not first: Most alterations in norms & shared values come at the end of the transformation process. Depends on results: New approaches usually sink into a culture only after its very clear that they work & are superior to old methods. Requires a lot of talk: without verbal instruction & support, people are often reluctant to admit the validity of new practices. May involve turnover: Sometimes the only way to change a culture is to change key people. Makes decision on succession crucial: if promotion processes are not changed to be compatible with the new practices,the old culture will reassert itself.
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1. Unfreezing
Stage of Preparing a situation for change Developing a felt need for change Can be assisted through environmental pressures, declining performance, recognizing problems or opportunities that exist Observing behavioral models that display alternative approaches. Helps people break old habits & recognize alternative ways of thinking about or doing things.
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1. Unfreezing..ctd
At this stage managers task is to, create a felt need for change Can be done by Establishing a good relationship with people involved Helping others realizes that present behaviors are not effective Minimizing expressed resistance to change
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2. Changing
Something New takes place in system & chg is actually implemented. Mgrs initiates chgs in orgl targets of tasks People, culture, technology & structure. Done ideally in response to good Problem diagnosis & a careful examination of alternatives. If chg implemented before felt need, -increased likelihood of failure.
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2. Changing
At this stage mgrs task is to implement chg, Can be done by: A) Identifying new more effective ways of behaving B) Choosing appropriate chgs in: tasks, people, culture, technology & structure. C) Taking action to put these chgs into place.
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3. Refreezing
1. Mgr is concerned about stabilizing chg & creating conditions for its LT continuity. 2. Accomplish by providing appropriate rewards for (a) performance, (b) positive reinforcement, necessary resource support. 3. Evaluate results carefully, provide feedback to people involved, make required modifications in original ch. 4. If refreezing done poorly A) Chgs -too easily forgotten B) Abandoned with passage of time 5. If it is done well Chg can be more long lasting
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3. Refreezing ..ctd..
Managers task is to stabilize chg, Done by: Creating acceptance & continuity for new behaviors Providing any necessary resource support Using performance contingent rewards & positive reinforcement.
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1. Force-Coercion Strategy
Uses power bases of legitimacy, rewards & punishments as primary inducements to change. Likely outcomes of force coercion -immediate compliance but little commitment. Done in more than one way Direct facing stra- chg agent takes direct & unilateral action to command that chg takes place. Involves Exercise of formal authority or legitimate power, offering special rewards, & or threatening punishment. In Political maneuvering, chg-agent works indirectly to gain special advantage over other persons & thereby make them change. Involves bargaining, obtaining control of important resources, granting small favors in return Change Mgmt by 107 Strategy has limited results.Dr. Ali Sajid
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Change Agent
Individual either: Manager from within org e.g. Z .A Khan of Engro, Sindh Outside consultant-takes leadership role in initiating & introducing ch process.
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Power is redistributed within orgl structure. If structure is changed in addition to power redistribution, both changes results from planned chg process.
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& Commitment To SolutionsCA to stimulate thought & find solutions by creativity -developing new & plausible alternatives. -Subordinates be encouraged to participate. 5. Experimentation & Search For Results-Solutions developed in 4th phase - tested in small scale pilot programs & results analyzed. -One unit- try out idea before org-wide basis. 6. Reinforcement & AcceptanceIf course of action -tested & found desirable, should be accepted more willingly. -Improved performance should be source of reinforcement -so should lead to commitment to ch.
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Organizational Development
Organizational Development
OD is long range effort to improve org,s ability to deal with its environment & solve problems. Help orgs cope with forces for ch in their environments while simultaneously improving internal problem-solving capabilities. Outcome goal of OD focus on task accomplishments, & process goal of OD focus on way people work together. OD tries to achieve ch in a way that leaves orgl members more active & self reliant in maintaining longer run orgl effectiveness. Committed to improve orgs through freedom of choice, shared power & self reliance.
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A General Model Of OD
To begin with OD process successfully, facilitator must Establish working relationship with members of client system Diagnosis-gathering & analyzing data to assess situation & set appropriate ch objectives. Helps unfreeze existing situation. Active interventions- ch objectives are perused through variety of specific interventions.
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A General Model Of OD ..
Evaluation- an essential to OD process Examination of process to determine if things are proceeding as desired & if further action is needed. Eventually OD facilitator should achieve terminal relationship that leaves client able to function on its own. If OD process has been done well, & its members should be prepared to better manage their continuing needs for self renewal & development.
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Phases Of OD Process
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Orgl Features
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Methodological Foundation Of OD
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Types Of Interventions
OD intervention -structured activity helps create ch in org development. OD inter designed to help improve individual effectiveness include, Sensitivity Training Management Training Role Negotiation Job Redesign Carrier Planning
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