Organization renewal: the challenge of change
Organization renewal: the challenge of change Contributing
factors to the accelerating rate of changeIdentification of ways an
organization uses renewing process to adapt change Determine the
individual and group methods of coping with changeUnderstand and
apply the socio-technical-system approach to OD The challenge of
change Market , product and competitive condition are rapid ally
changes Under these pressure origination are changingOrganization
are downsizing , reengineering, flattering structure, going global
and initiating more sophisticating technologyDownsizing effect on
moral, trust and productivity of employeesRenewal Top managers make
adaptive change There are organization who :Effectively manage
changeContinuously adopting their bureaucracies,
Strategies,SystemProduct and culture Organizations adopt these
practices to survive: from shocks,Prosper from the forces
Focus of ODChanging organization systemStressing the situation,
nature of problems and their system wide impactSolving given
problem manager must use system approach and analyse: The
organization Its departmental system interrelationshipPossible
effects on internal environmentCase of singer machine and mobile
industry
Constant change Innovation are often quickly and being overtaken
by competitors with technology improvement This result due to rate
of changeTodays manager face risk situationOrganization must have
capacity to adapt If you want to make revolution , you have to
start up with unleashing(let loose) revolutionary product and idea
Organization renewal: adapting to change Organization renewal is an
ongoing processes of building innovation and adaption into the
organizationManaging effectively is a major challenge facing
organization todaywhen an organization fail to change it effect on
its survivalOrganization must adapt itself by introducing internal
changes that will allow it to be more effective
Entropy Principal of physics stating that everything that is
organized will breakdown or run down unless it is maintained
Organizational renewal , then, is an approach to preventing
corporate entropyWhy change so difficult?Due to culture of
organization Organization structure , procedures, and relationship
continue to reinforce prior pattern of behaviour and to resist new
ones
Lesson in corporate renewal Informed opportunismDirection and
empowermentFriendly facts A different mirrorTeam work and
trustStability in motionAttitude and attentionCause and commitment
1. Informed opportunismRenewing organization set directionHave not
detail strategyTreat information as their main strategic
advantageFlexibility as their main strategic weapon
2. Direction and empowerment Renewing companies treat everyone
as a source of creative inputThey give up some control over
subordinate to gain what counts: Results3. Friendly factsRenewing
companies treat facts as friendsFinancial control as liberating
They love facts and information that remove decision making from
mere opinion 4. Different mirror Leader get determination from
their ability to anticipate crisesWillingness to listen all
sources-to look into different mirror
5. Team work and trust Renewing constantly use such words as
teamwork and trustThey are relentless (persistence) at fighting
office politics
6. Stability in motion Renewing companies know how to keep thing
movingThey undergo constant change against a base of underlying
stability
7. Attitude and attentionVisible management attention gets thing
doneAction may start with words but must backed by behaviour
8. Causes and commitment Renewing organization run on
causesCommitment result from management ability to run grand cause
into small action so that every one can contribute Approaches to
change Satiability and adaption are essential to continued survival
and growth Organization that operate in mature field with stable
product and relatively few competitors need different adaptive
orientation than :Firm operating in high growth market , among
numerous competitors, and with high degree of innovation
Stable environment characteristicUnchanging basic product and
servicesStatic level of competitionA low level of technological
innovationFormalized and centralized structure Slow steady rate of
growth Hyper turbulent environment Rapidly changing product
lineIncreasing and changing set of informationRapid and continual
technology innovationRapid market growth
Approaches to change Static organization can no longer
surviveOrganization must device methods of continues self renewal
Organization must recognize when it is necessary to changeMust
develop ability to implement change when neededTo meet this
condition many companies have created OD units These units develop
new programs to help the organization improve its adaption to its
environment and maintain stable identity A model of adaptive
orientationSluggish-Thermostat(stable environment, low adoption
)Satisficing management (stable environment , high adoption)
Reactive management (hyper turbulent environment- low
adoption)Renewing /transformational management (hyper turbulent
environment , high adoption )Sluggish-Thermostat(stable
environment, low adoption )
David miller describe organization resist change until cost
trade off favour it Organizations set their thermostat so low that
they become incentive to change
Sluggish managementRefers to managerial style based on:Low
riskFormalized procedureHigh degree of structure and
controlOrganizations have very stable goalsHigh centralized
structure Tend to have more managerial levelHigh ratio of superiors
to subordinateEmphasis upon formal control systemSluggish
managementThere may be tendency to value traditionKeep on doing
things as they have always been done to value seniority more than
performanceTo be adverse to accept new ideaAlthough this is low
risk style of management, it may lead to serious problem in long
run
Satisfying management (stable environment , high adoption)
Management that is adequate and average Style of management that
emphasize a more centralized decision making structure with problem
referred to topBecause of stable environment here tend to be more
levels of management, with coordination done by formal
coordinationSuch organization often tend to accept strategies that
are good enough because of the low level of pressure from
environment
Reactive management (hyper turbulent environment- low
adoption)
Rapidly change environmentLow level of adoptionTend to deal with
problem on short run, crises basisReactive management: style of
reacting to stimulus after conditions in the environment have
changed It is Short termCrises type of adoptionOften involve
replacement of key people Hasty organizationDrastic cutting of
personnel and product line
Renewing /transformational management (hyper turbulent
environment , high adoption )
Respond to change and must proactively take advantage of new
opportunity and innovationThese organizations tend to fit the
renewal/transformational orientationChampion of innovationFaster at
developing new ideaMore responsive to competitive change More
participative in getting commitment Involvement of organization
members in renewal processOrganization utilize renewing managerial
style Renewing /transformational management Introducing change to
deal with future condition before these condition actually
occurGeneral motors, 3M, IBM( on demand product)Renewing management
orientation has both ability and need to respond to hyper turbulent
environmentMost modern organization are increasingly finding the
need for adoptive organizationThe system approach: Findings new
ways to work togetherView the organization as a unified system
composed of interrelated unitsMangers look at the organization as a
whole and part of larger external environmentIn downsizing mangers
may be used system approach to determine how to cut cost One
approach is Horizontal corporation: break the component into key
process and creates team from different department to run them
Communication with employees and customerQualities of systemSystem
must be design to accomplish an objectiveThe element of system must
have an established arrangementInterrelation must exist among the
individual elements of system The basic ingredients of process(the
flow of information, energy, and materials) are more vital than the
basic element of systemOrganization overall objectives are more
important than the objective of elements
The organization as an open systemFlow of information,
personnel, and materialTime and change become critical aspectThree
basic element of such systemInputs are the resources that are
applied to the process function Process are activities and function
that are performed to produced goalOutputs products are services
produced by the organization
The sociotechnical systemCoordinating human and technical
activitiesOrganize around processFlatten the hierarchyUse team to
manage everythingLet customers drive performanceReward team
performance Primary component of organizationGoal and value
subsystemTechnical systemThe structural subsystem The psychological
subsystem(culture)The managerial subsystem Goal and value
subsystemBasic mission and visionProfitsGrowthSurvival and are
taken from larger enviornment
Technical systemPrimary functionActivitiesOperation including
technical and equipment , used to produce the output of the
systemThe structural subsystemFormal designPolicies and
procedureSet forth by organizational chart Division of workPattern
of authority
The psychological subsystem Network of social
relationshipBehavioural pattern of members, such as norms, roles,
and communication
Managerial subsystem DirectingOrganizing Coordinating all
activities toward common goalIntegrating the activities of other
system Organization transformationOrganization development Action
of changing an organizations form , shape, or appearance , or
change the organization energy from one form to another Unplanned
changes within system in response to crises and lifecycle
consideration Focus on planned changes introduced by practitioner
Second order changes First order change Significant changes
introduce in short, almost immediate time frame to deal with
survival or crises type problem Large scale change over a longer
time frame on a more gradual basis Planned change process
Deliberate attempt to modify the functioning of the total
organization orOne of the major parts in order to bring about
improved effectiveness Practitioner bring about this
changeOrganization being change called as client Planned change
effort can focus on individual , team, or organization behaviour
Individual effectiveness Organization made up of membersEach member
has unique value of beliefs, and motivationTop management form the
culture of organizationOrganization effectiveness increase through
culture that achieve goal and satisfies members needEmpowering the
employeesIndividual effectiveness Manger ability to unlock the
employee potential that result into an immense source of product
energy This improve leadership, decision making , or problem
solving among organization members Develop better manager and
employees will make more effective organization
Team effectiveness Change effort may also focus on: Fundamental
unit of organization the team or groupAs mean for improving the
organization effectivenessConcept of High involvement or
self-managed work teamsOrganization must elicit the commitment of
its employees Improve problem solving process while work through
conflicts and issues surrounding ways the group an improve it
effectiveness and productivity Activities are designed to improve
the operation of work team Task activities : what the team doesTeam
process: how the team work and the quality of relationship among
team members Process observation: Technique used in examining group
activitiesContents- the task of groupProcess the way the group
function
Organization effectiveness OD planned change efforts is
organization systemTotal organization many be examined through
climate surveyPlanned change program are designed to deal with
specific problem area indentify in the surveyImprove effectiveness
by structural, technical, or managerial subsystem change Objective
is to increase effectiveness, efficiency, moral of total
organization functioning Planned change efforts aims aim at
improving the overall goal attainment of such systemThis focus on
change programOD occur when the change effort is focused on total
systemOD may involve individual, group, and inter group
approachesIt become OD only when total system is target for change
In OD set of goals or purposes indentified, and course of action is
undertaken involving the commitment of organization members to
organization improvement