CHANGE MANAGEMENT.pptx

CHANGE MANAGEMENT

MODULE 1 – PERSONAL CHANGE

Defining change: Change can be defined as moving away

from present unsatisfactory condition to a satisfied one in the future.

Change is concerned with making things different.

It is concerned with or is an intervention that is planned actions to make things different.

PERSONAL CHANGE: Personal change is the process of movement

of an individual from current undesirable level of behavior to improve organizational and individual effectiveness and efficiency.

Basic process: consists of three steps:Discovery----Clearing----Programming.

Elements: There are four basic elements of personal change which are dealt with in detail as under:

Self analysis. Self awareness. Self esteem. Self efficacy.

SELF ANALYSIS: It is to do with a personal SWOT analysis in the

environment.It helps in understanding whether or not, one has:

Aptitude. Capability to accept roles. Motivation. Who in environment can bear impact on you? Meaningful work to be done. What drains everyone’s energy etc? An important to examine is if one has meaningful

relationship with others etc. How to do self analysis? ----by examining patterns

etc….once a particular pattern is followed, one feels comfortable about the skills, sort of environment one performs best at etc.

SELF AWARENESS:

Self awareness can be defined as the ability to perceive one’s existence, including one’s traits, feelings and behaviors. ------It is the personal understanding of the very core of one’s own identity.A self aware person is one who:

Is aware of his strengths and limitations. Has a clear idea of his priorities. Is aware of his attitudes, beliefs, and values. Knows how his behavior is affecting others. Is aware of his fear, anxieties, defenses he takes

etc.

Assumptions in self awareness: Self awareness is self responsibility. It is a learning process. It is to do with internalizing. Self awareness is vital to an individual as he won’t repeat the

mistakes again. (thus the better he does this and understands himself, the

better he accepts change)Personal development through self awareness (how self awareness helps managers)

Skill development. Knowing your strengths and weaknesses. Developing intuitive decision making skills. Stress management. Motivation related issues. Leadership development. (Note: self awareness thus means and includes knowing your

values, personality, needs, emotions, habits, strengths etc ---- without self analysis, self awareness is not possible)

How to be self aware? (techniques used) Ask somebody. Observation. Mental models. Physical states. Questionnaires. Seek professional help etc.

Models used in self awareness:

JOHARI WINDOW MBTI

JOHARI WINDOW A Johari window is a cognitive psychological tool created

by Joseph Luft and Harry Ingham in 1969 in the United States, used to help people better understand their interpersonal communication and relationships. It is used primarily in self-help groups and corporate settings as a heuristic exercise.

When performing the exercise, the subject is given a list of 56 adjectives and picks five or six that they feel describe their own personality. Peers of the subject are then given the same list, and each pick five or six adjectives that describe the subject. These adjectives are then mapped onto a grid.

Charles Handy calls this concept the Johari House with four rooms. Room 1 is the part of ourselves that we see and others see. Room 2 is the aspect that others see but we are not aware of. Room 3 is the most mysterious room in that the unconscious or subconscious part of us is seen by neither ourselves nor others. Room 4 is our private space, which we know but keep from others.

The Johari Window, named after the first names of its inventors, Joseph Luft and Harry Ingham, is one of the most useful models describing the process of human interaction.

A four paned "window," as illustrated above, divides personal awareness into four different types, as represented by its four quadrants: open, hidden, blind, and unknown.

The lines dividing the four panes are like window shades, which can move as an interaction progresses.

In this model, each person is represented by their own window. Let's describe mine:

1. The "open" quadrant represents things that both I know about myself, and that you know about me.

For example, I know my name, and so do you, and if you have explored some of my website, you know some of my interests.

The knowledge that the window represents, can include not only factual information, but my feelings, motives, behaviors, wants, needs and desires... indeed, any information describing who I am.

When I first meet a new person, the size of the opening of this first quadrant is not very large, since there has been little time to exchange information.

As the process of getting to know one another continues, the window shades move down or to the right, placing more information into the open window, as described below.

2. The "blind" quadrant represents things that you know about me, but that I am unaware of.

So, for example, we could be eating at a restaurant, and I may have unknowingly gotten some food on my face. This information is in my blind quadrant because you can see it, but I cannot.

If you now tell me that I have something on my face, then the window shade moves to the right, enlarging the open quadrant's area.

Now, I may also have blindspots with respect to many other much more complex things. For example, perhaps in our ongoing conversation, you may notice that eye contact seems to be lacking. You may not say anything, since you may not want to embarrass me, or you may draw your own inferences that perhaps I am being insincere.

Then the problem is, how can I get this information out in the open, since it may be affecting the level of trust that is developing between us? How can I learn more about myself?

Unfortunately, there is no readily available answer. I may notice a slight hesitation on your part, and perhaps this may lead to a question. But who knows if I will pick this up, or if your answer will be on the mark.

3. The "hidden" quadrant represents things that I know about myself, that you do not know.

So for example, I have not told you, nor mentioned anywhere on my website, what one of my favorite ice cream flavors is. This information is in my "hidden" quadrant.

As soon as I tell you that I love "Ben and Jerry's Cherry Garcia" flavored ice cream, I am effectively pulling the window shade down, moving the information in my hidden quadrant and enlarging the open quadrant's area.

Again, there are vast amounts of information, virtually my whole life's story, that has yet to be revealed to you. As we get to know and trust each other, I will then feel more comfortable disclosing more intimate details about myself. This process is called: "Self-disclosure."

4. The "unknown" quadrant represents things that neither I know about myself, nor you know about me.

For example, I may disclose a dream that I had, and as we both attempt to understand its significance, a new awareness may emerge, known to neither of us before the conversation took place.

Being placed in new situations often reveal new information not previously known to self or others.

MBTI The MBTI is the most widely used personality assessment

instrument in the world. It’s a personality test that asks people how they usually feel or act in particular situations. On the basis of their answers, individuals are classified as:

Extraverted v/s Introverted: Extraverted individuals are outgoing, sociable and assertive. Introverts are quiet and shy. [E v/s I]

Sensing v/s Intuitive: Sensing types are practical and prefer routine and order. They focus on details. Intuitives rely on unconscious processes and look at the big picture. [S v/s N]

Thinking v/s Feeling: thinking types use reason and logic to handle problems. Feeling types rely on their personal values and emotions. [T v/s F]

Judging v/s Perceiving: Judging types want control and prefer their world to be ordered and structured. Perceiving types are flexible and spontaneous. [J v/s P]

These classifications are then combined into 16 personality types. A few illustrations are as follows:

INTJs: they are visionaries. They usually have original minds and great drive for their own ideas and purposes. They are characterized as skeptical, critical, independent, determined and often stubborn.

ESTJs: they are organizers. They are realistic, logical, analytical and decisive.

ENTP: this type is a conceptualizer. He or she is innovative, individualistic, versatile and attracted to entrepreneurial ideas.

SELF ESTEEM: It is defined as a person’s self image at an emotional level,

circumventing reason and logic. It refers to an individual’s sense of his/her value or worth or the

extent to which the person values, approves of, appreciates, likes/dislikes himself/herself.

People with healthy self esteem are able to assess oneself correctly.

Low self esteem causes anxiety, stress, reduced job satisfaction etc.How to overcome low self esteem?

Rebut the inner critic. Practice self nurturing. Get help from others etc. 

Factors determining one’s self esteem: Childhood experiences. The way we are/were treated by our family members. Religious authorities, peers etc.

SELF EFFICACY: By self efficacy, we mean, being aware of

one’s own potential. Self efficacy enhances human

accomplishment and well being in many ways.

People with high self efficacy: Approach difficult tasks as challenges. They set goals for themselves and maintain

strong commitment. They approach threatening situations with

assurance that they can exercise control over them.

Self efficacy is very much required for personal change --- people with higher levels of efficacy can overcome obstacles.

Sources of self efficacy:

Mastery Experience (success encourages; failures will not)

Social models (a person might see other people and look up to them as his models)

Social persuasion (if he has doubts, others clarify and persuade him to get back to his potential)

Physical states (some activities require strength and stamina, then people judge their potential if they have it)

ORGANIZATIONAL ROLES:

Personal change has an impact in organization and the roles that an individual plays.

Thus “role” integrates an individual with his organization; it is the convergence region between individual and his organization.

Organizational roles are methods of providing service entitlements to individuals within a system.

Role is defined as the set of behaviors enacted by a person as a result of his occupying certain position in the organization.

How to make organizational roles effective?

The success of an organization depends on effective organizational roles.Role effectiveness depends upon:

Role efficacy (potential effectiveness + role effectiveness + organizational climate) ---- it is the potential effectiveness to produce desired results. ---- people with high role efficacy experience less stress, anxiety etc.

Developing a style/strategy to cope with role conflict and stress.

Change Sequence

Recognizing the need for change. Identifying the change method. Unfreezing the status quo. Moving to a new condition. Refreezing to create a new status quo.

MODULE – 2

ORGANIZATIONAL CHANGE

Meaning: Organizational change can be defined as a concreted,

planned effort to increase organizational effectiveness and health through changes in organization’s dynamics using behavioral science knowledge.

Typically, the concept of organizational change is in regard to organization-wide change, as opposed to smaller changes such as adding a new person, modifying a program, etc.

Examples of organization-wide change might include a change in mission, restructuring operations (e.g., restructuring to self-managed teams, layoffs, etc.), new technologies, mergers, major collaborations, "rightsizing", new programs such as Total Quality Management, re-engineering, etc. Some experts refer to organizational transformation.

Often this term designates a fundamental and radical reorientation in the way the organization operates.

Nature of organizational change: Organizational change results from stimulus (forces) both

inside and outside the enterprise. It takes place in all organizations at varying rates of speed. The areas of organizational change include technology,

people, structure, procedures, policies etc. It also implies dissatisfaction in old and belief in new

philosophies. Organizational change is a continuous process and is

intrinsic to the organization. It is both complex and unpredictable. The rate of organizational change is faster than our

abilities to comprehend and cope with it. Dynamic. Organizational change underlies a qualitatively different

way of perceiving and thinking to improve the past and the present.

Types of organizational change: HAPPENED change: it is a change that is rather unpredictable;

it takes place naturally due to external factors; it occurs when organization reaches its plateau and falls prey to environment’s demands; example – currency devaluation (it affects business of the company that has to import raw materials)

REACTIVE change: it is a change that occurs in response to an event; this type of change is attempted when demand for company’s product is being lost to competitors. (example – launching of Flatron TV sets in place of old version sets)

ANTICIPATORY change: it refers to making changes in the organization during the course of expecting/anticipating changes; failing to anticipate will lead to bad consequences (example – IBM dint anticipate changes in computer industry and lost its lead in PC manufacturing business to Apple)

PLANNED change: here the future state is being consciously chosen and it is undertaken to improve upon current ways of operating; it is a calculated change to achieve desirable output or performance (example – Jet Airways retrenching its workforce)

INCREMENTAL change: it refers to the changes in the small (micro) units or subcomponents of an organization; less damages if neglected.

OPERATIONAL changes: when changes are to be made in order to improve the quality of the product or service of an organization because of competition, change in customer preferences etc, they are called operational changes; they bringing in new technology, reengineering, better distribution etc.

STRATEGIC change: change that is addressed to an organization as a whole or to most of the organizations’ components including strategy may be called as strategic change. (for example – Toyota making significant changes in its workforce composition enabled it to confer considerable degree of autonomy on workers, thereby operating with a flexible and decentralized structure)

DIRECTIONAL change: a change in direction may become imperative for an organization due to severe competition or regulatory swifts/shifts in government policy and control. (for example – pricing, exim restrictions etc)

FUNDAMENTAL change: this entails a redefinition of the current purpose/mission of the organization.

TOTAL change: for total change to take place an organization is constrained to develop a new vision, a strong link between its strategy, employees and business performance; thus the organization has to achieve a total turnaround; thus this change may be opted for when organization has gone through long term failure of business etc.

TRANSFORMATIONAL change: change involving the entire/greater part of the organization; it could be the change in shape (size, complexity etc); change in structure (systems, ownership etc); or change in nature (basic assumptions, culture etc)

REVOLUTIONARY change: it refers to the abrupt changes in organizations’ strategy and design comprising of three interrelated components namely

Envisioning. Energizing. Enabling.

 FORCES FOR ORGANIZATIONAL CHANGE MANAGEMENT:

What Provokes "Organizational Change"? Change should not be done for the sake of change --

it's a strategy to accomplish some overall goal. Usually organizational change is provoked by some

major outside driving force, e.g., substantial cuts in funding, address major new markets/clients, need for dramatic increases in productivity/services, etc.

Typically, organizations must undertake organization-wide change to evolve to a different level in their life cycle, e.g., going from a highly reactive, entrepreneurial organization to more stable and planned development.

Transition to a new chief executive can provoke organization-wide change when his or her new and unique personality pervades the entire organization.

External forces:

Political forces (mixed economy in India) Economic forces (inflation, deflation,

recession --- jobs, fluctuation in interest rates)

Technological forces (computers, cell phones etc)

Governmental forces (deregulation, forex, protectionism attitude etc)

Global competition (strategic alliance) Changing customer needs and preferences

(Sony play station etc)

Internal forces:

System dynamics. Inadequacy of administration process. Individual/group expectations. Technological change. Person focused change. Profitability issues. Resource constraints.

UNDERSTANDING THE CHANGE PROCESS: (organizational change process)

Organizational change can succeed only when personal change takes place.

Individual change tends to happen over an extended period of time and hence does organizational change.

STEPS IN CHANGE PROCESS: Preparation Phase: Contact stage: (where change is happened/yet to happen) Awareness stage: (where person knows that change is being

contemplated) Acceptance phase: Understanding stage: (person demonstrates some degree of

comprehension) Positive perception: (where person develops positive view

towards the change) Commitment phase: Installation stage: (change is installed and thus becomes

operational) Adoption stage: (change is used long enough to demonstrate

worth and positive impact) Institutionalization stage: (change is used in routine operating

procedures in organization) Internalization: (persons are highly committed to change

because of their personal thoughts, goals and value systems)

REQUIREMENTS of organizational change (five phases)

Cummings and Worley describe a comprehensive, five-phase, general process for managing change, including:

1) Motivating change, 2) creating vision, 3) developing political support, 4) managing the transition and 5) sustaining momentum.

Motivating Change This phase includes creating a readiness for change in your

client organization and developing approaches to overcome resistance to change. General

guidelines for managing this phase include enlightening members of the organization about the need for

change, expressing the current status of the organization and where it needs to be in the future, and

developing realistic approaches about how change might be accomplished. Creating Vision Leaders in the organization must articulate a clear vision that

describes what the change effort is striving to accomplish. Ideally, people in the organization have

strong input to the creation of the vision and how it can be achieved Developing Political Support This phase of change management is often overlooked, yet it is

the phase that often stops successful change from occurring. Politics in organizations is about power.

Managing Transition This phase occurs when the organization works to

make the actual transition from the current state to the future state. In consultations, this phase usually is

called implementation of the action plans.Sustaining Momentum

Often, the most difficult phase in managing change is this phase when leaders work to sustain the

momentum of the implementation and adjustment of plans. Change efforts can encounter a wide

variety of obstacles, for example, strong resistance from members of the organization, sudden

departure of a key leader in the organization, or a dramatic reduction in sales. Strong, visible,

ongoing support from top leadership is critically important to show overall credibility and

accountabilities in the change effort.

MODELS OF PERSONAL/ORGANIZATIONAL CHANGE:

KURT LEWIN’S 3 STEP MODEL: It is one of the earliest models of planned change. According to Lewin, change underlies the modification of those forces

that keep a system behavior stable. The level of behavior at any point of time is the result of two sets of

forces – one is striving to maintain the status quo and the other pushing for change.

When both these forces are equal, current level of behavior is monitored and this is called quasi stationary equilibrium.

Thus Lewin’s model is a powerful tool for understanding the change situation.

The 3 stages are explained as under: UNFREEZING (removing the old behavior) – disconfirmation creates

pain; discomfort causes guilt – this motivates a person to change; but unless the person feels comfortable with dropping the old behavior and acquiring the new ones, change will not occur.

MOVING (the next stage…) – the person acquires information and evidence showing that change is possible and desirable and thus changes accordingly; (for example – motivational evidence can be gained from ex – smokers and learn about health related risks of smoking etc)

REFREEZING (accepting new behaviors) – it refers to stabilizing new behaviors into an individual’s personality and attitudes.

PLANNING/LIPPIT’S MODEL/7 STEP approach to change:

This model of change has occupied a prominent place in bringing about a planned change in the organization.

It was developed by Lippit in 1958. The principle of this model is that

information must be freely and openly shared between organization and change agent and information must be transmitted into action.

The model consists of the following 7 stages: SCOUTING: here the organization and change agent will

explore the need for change and the area that is required to be changed.

ENTRY: it refers to the mutual contract and mutual expectations formation stage; establishing a change relationship is the main focus here; in this system, a client is in need of a help and a change agent from outside the system establishes a working relationship.

DIAGNOSIS: here specific improvement goals are identified. PLANNING: it is the planning for specific improvement goals

and also possible reasons for resistance to change are identified.

ACTION: implementation of improved goals according to planning step.

STABILIZATION and evaluation: evaluation will be undertaken to determine the extent of success of planning change and need for further action.

TERMINATION: refers to a phase where in a decision w.r.t continuing or ending the system will be taken.

ACTION RESEARCH/CONTEMPORARY research activity model of change:

This model is based on systematic collection of data and then selecting a change action based on the indication of analyzed data.

AR process of systematically collecting research data about ongoing system relative to some subject, goal, or need of that system, feed data back into system, take action by altering selected variable based on data & hypothesis, evaluate result of action by collecting more data.

Focuses on planed change as a cyclical in which initial research about org. provides inf. to guide subsequent action.

Benefits of this model – it is problem focused, resistance to change will be reduced as employees are also involved in change leading process.

The basic steps in this model are as under:1. Diagnosis – change agent gathers information on

problems of organization from related change concerned staff.

2. Analysis – analysis will be done on problems/its patterns – the change agent classifies them into primary concerns, problem areas and action areas.

3. Feedback – the information that has been collected in the first two steps must be shared with the employees and employees will help change agent to develop plans for needed change.

4. Action – the change agent and the employees carry on specific actions to problems in order to bring about change.

5. Evaluation – the effectiveness of action research would be evaluated using data gathered as a benchmark.

Alternatively, the steps in action research model can be explained as under:

1. Perception of the problem by the key individual.

2. Consultation with behavioral science expert and their feedback.

3. Joint diagnosis of the problem.4. Joint action planning.5. Data gathering.6. Feedback by consultant.7. Re diagnosis and action planning by client

and consultant.8. New action (new data gathering and re-

diagnosis of the situation)

INTEGRATIVE MODEL OF PLANNED CHANGE: This planned change model rests on the fact that an organization

exists in different states at different times and planned movement can occur from movement to another.

4 phases are involved here: Exploratory ---- Planning ---- Action ---- Integration.

Exploratory phase – it is where the organization will explore the need for change and decide about change and commit resources for it; it also includes search for OD experts; problem is thereby understood in this phase.

Planning phase – this would start once the problem is understood and OD resources are committed; diagnosis will be done to discover the problem by collecting related information; the action for change will also be justified.

Action phase – after implementing actions, the aim is to transfer the organization from current state to desired state; evaluation is also carried out.

Integration phase – the changes will be integrated to the organization’s regular functioning procedure; changes would be stabilized; the contracts with the OD experts are gradually terminated.

 FORCE – FIELD ANALYSIS:

Introduction – According to Kurt Lewin, a change issue is held in balance by interaction of two opposing sets of forces namely:

Those seeking to promote change (DRIVING forces) Those seeking to maintain the status quo

(RESTRAINING forces) Lewin postulated that organizations as systems

won’t always be in a static pattern but would operate by making use of a dynamic balance of forces working in opposite directions.

In order for any change to occur, the driving forces must exceed the restraining forces.

The force field diagram: (Draw the diagram)

The force filed diagram is a model built on this idea that the forces to change issue are both driving and restraining the change process.

These forces include persons, habits, customers and attitudes.

This diagram can be used at any level, personal, project, organizational, network etc. to visualize the forces that may work in favor and against the change initiatives.The diagram helps the user to picture the war between the forces around a given issue.

Usually, a planned change issue is described at the top. Below this are two columns representing (driving forces

– left column, restraining forces – right column, arrows are drawn towards the middle, longer arrows indicate stronger forces.

The idea is to understand and to make explicit that all the forces are acting on a given issue.

When these forces are in equilibrium & the so called status quo is maintained organisations generally experience difficulty. If this state of equilibrium lasts too long then the orgn. may fail or require external support to keep it going.

Many managers try to instigate change by increasing the driving forces without paying any attention to the restraining forces, this approach simply pressurises people & increases tension in the organisation, it does nothing to help the process of change.

Real & productive change can only occur when the restraining forces are weakened or when the driving forces are strengthened at the same time as the restraining forces are weakened.

Be aware of the influence of both of these forces. We must look for ways to reduce those restraining forces that they & their management team have some control over.

Steps in force filed analysis:1. Describe the current situation.2. Describe the desired situation.3. Identify where current situation will go if no action is

taken.4. List the driving forces.5. List the restraining forces.6. Discuss and interrogate all the forces.7. Allocate a score to each force using numerical scale.8. Chart the forces.9. Determine if change is viable and change can occur.10. Discuss how change can be affected by reducing the

restraining forces or by increasing the driving forces.11. Remember that increasing driving forces/reducing the

restraining forces may increase or decrease other forces or even create new ones.

Uses of the force field analysis model of change:

1. Investigate the balance of power involved in an issue.

2. Identify the most important players or target groups for a campaign on the issue.

3. Identify opponents or allies.4. Identify how you can influence each

target group.

MANAGERIAL APPROACHES/OPTIONS for implementing change:

There are three approaches which are used in organizations to create change; these approaches differ from each other in terms of assumptions, strategy and kind of result they are most likely to stimulate.

TOP DOWN APPROACH: LAISSEZ FAIRE APPROACH: COLLABORATIVE APPROACH:

Top Down Approach Meaning – one of the most common ways by which organizations

attempt to implement change is by pushing changes down the hierarchy; in this approach, solutions or decisions as regards change are arrived at by people at the top and then passed down the formal channels of communication and control in a unilateral manner.

Examples – mostly these changes focus on tangibles – changes in structure, reporting systems, replacement of executives, announcement of plans and procedures etc.

Assumptions: The reason for existing behavior in the organization can be traced to

single tangible factor (low performance, high absenteeism, low productivity etc); correspondingly the overall systems can be changed by changing these tangible factors of existing behavior (thus for example, changes in structure or procedure should lead to basic changes in the organization)

The second assumption underlying this approach is that change can be understood as coercion – compliance phenomenon. (that is to say that change consists of compliance of those less powerful to desire of those with more power); the change process is appreciated with assumption that people resist change – the strategy thereby to be used is that people have to be coerced to accept changes (for example – managements may declare lockouts if the unions do not fall in line)

A top down approach can be effective, provided the change initiator has considerable power (coercive/charismatic)Merits:

The merit of this approach is that the resulting change is quick.

If other strategies won’t work, this would be the only option left to the manager.Demerits:

People do not like to be coerced. The changes in behavior that occur are often

superficial. This approach considers only unfreezing and

refreezing stages of the change process; however it fails to recognize the intervening and socio-cultural processes of the transition.

LAISSEZ – FAIRE APPROACH: Meaning – reverse of the top down approach. Assumptions:

1. The system as a whole can change only when members in individual capacity can change.

2. People are rational beings who follow their rational self interests.3. Explanation: people will change when they realize that it is

advantageous for them to change and thus to create change enough information will have to be given as such.

4. For example, if sales in the organization are declining, it may try to improve the situation by giving feedback on sales figures, building awareness about company’s problem among them etc.

5. In this approach, more responsibility is given to the employees for defining and acting upon the problems.

The most common forms of materializing this approach are through communication meetings, workshops, conferences, training programs etc.

Thus the assumption is that people will learn skills from this approach of implementing change and use them for organizational purposes.

Merits: - this approach can be effective if hindrance to change is coming from lack of adequate and accurate information.Demerits:

The assumption that organizational change is sum of individual change is wrong.

This approach would not work if information cannot be passed on to the employees as regards methods of change if there are problems in MIS, power struggle among coalitions etc.

It is rather time consuming, uneconomical and slow process.

COLLABORATIVE APPROACH: It falls between the previous two approaches – neither change

takes place from top nor from members – it involves sharing of power between superiors and subordinates to make changes, they jointly define the problem and develop solutions.

The assumption underlying this approach is that organizational systems and structure which needs to be changed are not mechanical procedures/exhibits in charts; rather they are defined by patterns of behavior and practices which are rooted in the socio-cultural norms, values, attitudes of people.

An effective collaboration can come only when these underpinnings of existing ineffective behaviors are discarded and replaced by new/effective ones.

The collaboration between superior and subordinate in creating change does not mean that superior has no role in the process and subordinate has to completely take over the mantle of change.

Mostly the role of superior consists of providing a broad perspective, to guide the process and direction of change.

He may highlight the problems which may need organization’s attention to invite the participation from them.

PERSPECTIVES of organizational change:

The different perspectives of organizational change give the individual an insight into the basic principles that drive change.

They also gain an understanding of forces and factor those impacts on the readiness and ability of the individual to absorb change.

It shows the individual how to deal with fear that may be generated in a situation where the change is just around the corner.

The perspectives of organizational change relate to:1. Nature of organizational change.2. Principles of organization change (honesty, aim, participation,

recognition, teamwork and vision of change)3. Types of change.4. Forces of organizational change. [these issues have been

discussed in previous pages]

Leading the change process: Change is a matter of phenomenal

concern to managers. It is stated that projects are the principal means by which the organizations deal with change----thus its mechanism for implementing must be always sought after.

Change Management – Dealing with Individuals and Groups

Dealing with Individuals – Change depends on people who want to implement it; if they are not interested, then change cannot take place.

The following have to be understood for change management while dealing with individuals or groups:

The nature of human response to change (and group dealings)

Overcoming individual and group resistance to change.

Tuning the organization itself to change.

Nature of human response to change: Change for individuals mean learning new

skills/routines/relationships. Change is also associated with positive and negative

outcomes. Individuals may not resist change, what they resist is

being changed. To make individuals accept change, we have to

understand factors that make him resist change. Change can also be perceived as a

threat/opportunity. Any change is as good as the willingness of the one

affected by it.

Nature of group response to change: Though dealing with individuals is necessary, yet it

may not bring about desired change as individual is confined to his group, consisting of his peers, role models, supervisors, and subordinates etc who clarify the individual doubts on change process.

Influenced by this, the individuals may or may not accept change.

Major form of group based change orientations can be classified as:

Sensitivity training. Team building. Self managed work teams.

SENSITIVITY TRAINING: It is a method of changing behavior through

unstructured group interaction. The object of this is to provide the subjects with

increased awareness of their own behavior and how other perceives them, greater sensitivity to the behavior of others.

The people in the group are strangers and are brought together for a common goal of learning about themselves, impact that they have on others etc.

The trainer will observe the problems of communication, misunderstanding etc and communicates these observations to the group and they will attend to such matters by themselves, checking the accuracy of their own observations etc.

By this method, the members of the group attain increased sensitivity of their own behavior and actions of others and to the nature of group development.

TEAM BUILDING:

A team is a group of individuals who tend to work independently to satisfy organization or individual goals.

Success depends upon team leader. Team building related to change: 1st stage – building awareness, forming the group,

group members be explained about the need for change.

2nd stage – confrontation with issues, problems, conflicts etc.

3rd stage – maximizing cooperation. 4th stage – it is focused on change implementation

and goal achievement.

SELF MANAGED WORK TEAMS (SMT)

In a SMT, a group of employees are organized into a team responsible for a set of complete task i.e. for planning for resources, decision for roles and responsibilities, quality issues, managing conflicts, team morale etc.

Employees are given autonomy and control over their immediate behavior

They move towards innovative work design – differences in attitudinal change, repositioning of leadership, sharing responsibility etc.

It is to be seen to the extent to which the group is willing to accept new roles and responsibilities.

RESISTANCE to change:INDIVIDUAL resistance to change (Causes)

1. Personal loss – individuals perceive that they lose something (job, salary, friendship etc)

2. Negative attitude – individual may not trust the organization or superior and hence may resist change.

3. Lack of involvement – individuals may resist change as they feel they were not involved in the change process.

4. Personal criticism – change may be considered as an insult: questioning one’s performance, capability etc.

5. Loss of status and authority – due to change being implemented, individual’s job may be lowered in terms of hierarchy and hence may not accept change.

6. Inappropriate timing – change is introduced when business is at failure, so it will be burden to accept new change as it may bring additional responsibilities etc.

7. Cognitive rigidity – few people feel that there is no need for change; or not convinced about arguments in favor of change.

8. Challenging authority – some employees resist change to challenge authority of their disliked bosses.

9. Fear of unknown – change presents unknown, which further creates anxiety, create uncertainty about future and employees resist change for this reason also.

ORGANIZATIONAL/GROUP resistance to change (Causes)

1. Group Inertia – people may accept change at an individual level but do not accept change when they are in a group.

2. Structural inertia – some organizational structures have inbuilt mechanism and can resist change (for example – individual selection process cannot undergo change; when organization is confronted with change inertia counterbalanced to sustain stability.

3. Limited focus of change – organizations are made up of number of sub systems and change cannot be made without affecting other subsystems (for technological change to take place, structure should also undergo change)

4. Threat to established power relationship – redistribution of decision making power may force people to resist change.

5. Resource constraint – inadequate material/finance/human resources may make groups in organization to resist change.

6. Sunk costs – money is needed for implementing change; but most of the capacity is blocked in the fixed assets; therefore even if need is felt for change to be brought about, there would be reluctance as capacity is already sunk in purchase of fixed assets.

Overcoming resistance to change (strategies employed for managing resistance to change)

Education and Communication – if employees are helped to understand the logic of change through proper communication, resistance can be reduced ----- (resistance is also because of poor communication, thereby if employees receive full facts, their misunderstanding is cleared and hence resistance to change is reduced.)

Participation – it is difficult for employees to resist change if they participate in the change process.

Facilitation and Support – As change emits negative outcomes in perception of certain employees like anxiety, fear of unknown etc then it will be better for change agents to give support to such employees through counseling, skill training etc.

Negotiation – this can be done with exchange of something of value to lessen resistance (for example – a reward for a powerful individual may be given if resistance is centered around him; disadvantage – high costs and possibilities of being blackmailed by other individuals)

Manipulation and Cooptation – manipulation may be related to hiding of facts to make them more attractive, with holding undesirable information, creating false rumors to get employees’ acceptance to change are examples of manipulation. ------ Cooptation: it seeks to buy the leaders of the group by giving a key role in change decision; the leaders’ advice is sought not for making a decision but for their endorsement. (disadvantage – the credibility of change agents is affected if other employees come to know about this)

Coercing – if employees resist change, coercive tactics like threat of transfer, loss of promotions, negative performance evaluation, poor letter of recommendation can be used.

TUNING the organizational change: The people in organization are to be tuned for the purpose of organization change intended; else the change can be implemented effectively.3 R’s for tuning:

Reason management – it means how organization is to deal with cognitions, beliefs, reasoning of its employees for purpose of intended change ---- ways: explain why and how of change, participation of employees in the change process; explain the consequences if the change is not implemented with facts, figures, train them etc.

Relationship management – change may affect employer – employee relationship; to avoid this, create safety about change, create positive feeling about change, show successful change in similar organizations; rewarding employees positive involvement in change process etc; counsel, guide etc.

Result management – employees may acknowledge reason for change but need to feel assured through initial success and reassured that intended results are achieved. ------ for this, clarify contractual obligations (allowing employees to identify needs, creating a right climate from their experience and supportive structure)

INTERVENTION strategies used for change implementation:STRUCTURAL Interventions – it emphasizes on making organizations more organic and egalitarian. The types involved here are:

1. Structural reorganization.2. New reward systems.3. Organizational cultural change.4. Downsizing, outsourcing, parallel learning structures5. MBO, quality circles, TQM etc.

TASK-TECHNOLOGY interventions – the focus is on changing actual jobs people do and technological process and tools used to perform these jobs.

6. Job redesign.7. Socio technical systems (STS)8. QWL etc

PEOPLE focused interventions – these have been directed at changing attitudes and behavior of organizational members through the process of communication, decision making and problem solving.

9. Sensitivity training.10. Survey feedback.11. Team building.12. Inter group development.13. Process Consultation etc. 

MODULE 3

ORGANIZATIONAL CULTURE&

CHANGE

Defining culture: The word "culture" is most commonly used in

three basic senses: Excellence of taste in the fine arts and

humanities, also known as high culture An integrated pattern of human knowledge,

belief, and behavior that depends upon the capacity for symbolic thought and social learning

The set of shared attitudes, values, goals, and practices that characterizes an institution, organization or group

Defining organizational culture…. Organizational culture is an idea in the field of

organizational studies and management which describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization.

It has been defined as "the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization.

This definition continues to explain organizational values, also known as "beliefs and ideas about what kinds of goals members of an organization should pursue and ideas about the appropriate kinds or standards of behavior organizational members should use to achieve these goals.

From organizational values develop organizational norms, guidelines, or expectations that prescribe appropriate kinds of behavior by employees in particular situations and control the behavior of organizational members towards one another.

There are the two ways in which cultures often defined.

1. Outcomes- Defining culture as a manifest pattern of behavior- Many people use the term culture to describe patterns of cross individual behavioral consistency For example, when people say that culture is “The way we do things around here,” they are defining consistent way is in which people perform tasks, solve problems, resolve conflicts, treat customers, and treat employees.

2. Process- Defining culture as a set of mechanisms creating cross individual behavioral consistency- In this case culture is defined as the informal values, norms, and beliefs that control how individuals and groups in an organization interact with each other and with people outside the organization.

Functions of organizational culture It defines boundaries. Behavior control. Encourages stability. Provides source of identity. It guides attitude and behavior of employees. It facilitates generation of commitment to

something larger than an individual’s attention.

Assumptions: Market oriented communication system. Customer orientation. Employee participation. Open communication. Entrepreneurism and control.

Nature of organizational culture: Illusive. Intangible. Implicit. Develops a core set of assumptions and

undertakings. Implicit rule to govern behavior.

Types of organizational cultures:

Strong vs. Weak cultures: Strong cultures are where the core values of an

organization are intensely held, widely shared ----- specific results of strong cultures include: low employee turnover, development of cohesiveness, loyalty etc.

Weak cultures – values are loosely held, most members won’t accept core values.Dominant vs. Sub cultures:

Dominant – shared view of majority of members of the organization.

Sub – characteristics of various units in culture.

The four categories of organizational cultures are as under: Power Culture which concentrates power among a few. Control radiates

from the center like a web. Power and influence spread out from a central figure or group. Power desires from the top person and personal relationships with that individual matters more than any formal title of position. Power Cultures have few rules and little bureaucracy; swift decisions can ensue.

In a Role Culture, people have clearly delegated authorities within a highly defined structure. Typically, these organizations form hierarchical bureaucracies. Power derives from a person's position and little scope exists for expert power. Controlled by procedures, roles descriptions and authority definitions. Predictable and consistent systems and procedures are highly valued.

By contrast, in a Task Culture, teams are formed to solve particular problems. Power derives from expertise as long as a team requires expertise. These cultures often feature the multiple reporting lines of a matrix structure. It is all a small team approach, who are highly skilled and specialist in their own markets of experience.

A Person Culture exists where all individuals believe themselves superior to the organization. Survival can become difficult for such organizations, since the concept of an organization suggests that a group of like-minded individuals pursue the organizational goals. Some professional partnerships can operate as person cultures, because each partner brings a particular expertise and clientele to the firm.

Another categorization of type of organizational culture may be as follows:

Constructive Cultures, in which members are encouraged to interact with people and approach tasks in ways that help them, meet their higher-order satisfaction needs.

•Passive/Defensive Cultures, in which members believe they must interact with people in ways that will not threaten their own security.

•Aggressive/Defensive Cultures, in which members are expected to approach tasks in forceful ways to protect their status and security.

Primary Characteristics of Organizational CultureAs we can see, the unique 'behavior' of an organization can be attributed to the makeup of the values that it espouses - the organizational culture. There are 7 primary characteristics of organizational culture. They are listed below.

Innovation and Risk Taking:Risk and returns go hand in hand. Places where you take a risk (calculated risk of course!), the chances of returns are higher. Same goes for innovation. You could either be a follower or a pioneer. Pioneering has its share of risks, but at times it can also have a breakthrough outcome for the organization. Thus, innovation and risk taking is one of the main characteristics of organizational culture defining how much room the business allows for innovation.

Attention to Detail:Attention to detail defines how much importance a company allots to precision and detail in the workplace. This is also a universal value as the degree of attention the employees are expected to give is crucial to the success of any business. The management defines the degree of attention to be given to details.

Outcome Orientation:Some organizations pay more attention to results rather than processes. It is really the business model of each business that defines whether the focus should be on the outcome or the processes. This defines the outcome orientation of the business.

People Orientation:This is still one of the most contentious issues in organizational culture today. How much should be the management focus on the people? Some organizations are famous for being employee oriented as they focus more on creating a better work environment for its 'associates' to work in. Others still are feudal in nature, treating employees no better than work-machines.

Team Orientation:It is a well established fact today that synergistic teams help give better results as compared to individual efforts. Each organization makes its efforts to create teams that will have complementary skills and will effectively work together.

Aggressiveness:Every organization also lays down the level of aggressiveness with which their employees work. Some businesses like Microsoft are known for their aggression and market dominating strategies.

Stability:While some organizations believe that constant change and innovation is the key to their growth, others are more focused on making themselves and their operations stable. The managements of these organizations are looking at ensuring stability of the company rather than looking at indiscriminate growth.

Importance of organizational culture Organizational culture is possibly the most critical

factor determining an organization's capacity, effectiveness, and longevity. It also contributes significantly to the organization's brand image and brand promise.

Organizational Culture creates energy and momentum. The energy will permeate the organization and create a new momentum for success

It educates current and emerging leaders on issues related to organizational culture.

Besides, its associates work parallel with leaders at every level of the organization by engaging and training them to understand workplace culture and to assume their responsibilities as the cultural leaders of their own individual subcultures.

A strong culture is a talent attractor Your organizational culture is part of the package that prospective employees look at when assessing your organization. Gone are the days of selecting the person you want from a large eager pool. The talent market is tighter and those looking for a new organization are more selective than ever. The best people want more than a salary and good benefits. They want an environment they can enjoy and succeed in.

A strong culture is talent retainer How likely are people to stay if they have other options and don’t love where they are? Your organizational culture is a key component of a person’s desire to stay.

A strong culture engages people want to be engaged in their work. A strong culture creates energy and momentum Build a culture that

is vibrant and allows people to be valued and express themselves and you will create a very real energy. That positive energy will permeate the organization and create a new momentum for success. Energy is contagious and will build on itself, reinforcing the culture and the attractiveness of the organization.

A strong culture changes the view of work most people have a negative connotation of the word work. A strong culture creates greater synergy a strong culture brings people together. When people have the opportunity to (and are expected to) communicate and get to know each other better, they will find new connections.

TABLE 1: FORMAL COMPONENTS OF ORGANISATIONAL CULTURE

Component Description Effect on organizational culture

1 Mission/VisionThe milestones to be reached

Could be unrealistic

2 PoliciesStatements designed to be guidelines to behavioral decision

Policies, if not drafted properly can provide leeway

3 ProceduresMethods of providing specific guidelines

Can facilitate or create obstacles in smooth functioning

4 RulesSpecific instructions for performing a task

Rules could be a means or an end in themselves

5 State of organizational development

Organisation at young, growing, maturing, or mature stage of development

State of organizational development has a direct impact on organizational culture

Informal components: Informal culture on the other hand has

tangible and intangible, specific and non – specific manifestations of shared values, beliefs, and assumptions.

This part of organisational culture comprising of artifacts, symbols, ceremonies, rites, and stories is highlighted in almost all the definitions of organisational culture.

How to identify culture in an organization?

Interviewing employees at different levels.

Conducting attitude survey. Analyzing processes. Examining overall organizational relations

etc..

Creating organizational culture: The founders of an organisation generally

tend to have a large impact on establishing the early culture.

The organization’s culture results from the interaction between the founder(s) biases and assumptions and what the original members of the organisation learn from their own experiences.

How is an organization’s culture maintained? (Sustained)…..

1. through the process of selecting for employment or promotion those individuals who are best able to sustain or promote the prevailing culture

2. through actions of top management that constantly reaffirm and reflect the culture

3. through the action of the socialization process that disseminates the culture among all the members of the organisation

Culture, then, is learned. It is both a product of action and a conditioning element of future action, an input and an output.

The internal environment consists of the social and technical systems of the organisation. Thus, in part, culture is the product of these socio-technical systems.

They consist of the decision-making, planning and control procedures of the organisation, its technology, and the procedures for recruitment, selection and training; and are influenced by the common beliefs, attitudes and values of the members of the organisation.

The strategies, structures, procedures and behaviors adopted by management create a work environment. However, if managers have been members of the organisation for some time they are themselves a product of the culture.

Elements of organizational culture (how employees learn a culture)

G. Johnson described a cultural web, identifying a number of elements that can be used to describe or influence Organizational Culture:

1. The Paradigm: What the organization is about; what it does; its mission; its values.

2. Control Systems: The processes in place to monitor what is going on. Role cultures would have vast rulebooks. There would be more reliance on individualism in a power culture.

3. Organizational Structures: Reporting lines, hierarchies, and the way that work flows through the business.

4. Power Structures: Who makes the decisions, how widely spread is power, and on what is power based?

5. Symbols: These include organizational logos and designs, but also extend to symbols of power such as parking spaces and executive washrooms.

6. Rituals and Routines: Management meetings, board reports and so on may become more habitual than necessary.

7. Stories and Myths: build up about people and events, and convey a message about what is valued within the organization.

8. Language: many organizations and units within the organizations use language as a way to identify members of a culture and sub-culture.

LEVELS OF ORGANISATIONAL CULTURE   One comes across a number of elements in the

organisation which depict its culture. Organisational culture can be viewed at three levels based on manifestations of the culture in tangible and intangible forms.

  Level 1: Artifacts, technology, visible and audible. Level 2: Value in physical and social validation. Level 3: environment assumptions about human

nature, human relationships and behavior.

Levels of organizational culture At Level one the organisational culture can be observed in the form of

physical objects, technology and other visible forms of behaviour like ceremonies and rituals. Though the culture would be visible in various forms, it would be only at the superficial level. For example, people may interact with one another but what the underlying feelings are or whether there is understanding among them would require probing.

  2. At Level Two there is greater awareness and internalization

of cultural values. People in the organisation try solutions of a problem in ways which have been tried and tested earlier. If the group is successful there will be shared perception of that ‘success’, leading to cognitive changes turning perception into values and beliefs.

  3. Level Three represents a process of conversion. When the

group repeatedly observes that the method that was tried earlier works most of the time, it becomes the ‘preferred solution’ and gets converted into underlying assumptions or dominant value orientation. The conversion process has both advantages. The advantages are that the dominant value orientation guides behaviour, however at the same time it may influence objective and rational thinking.

Changing organizational culture INTRODUCTION: You cannot change the organizational culture without knowing where your

organization wants to be or what elements of the current organizational culture need to change. What cultural elements support the success of your organization, or not? As an example, your team decides that you spend too much time agreeing with each other rather than challenging the forecasts and assumptions of fellow team members, that typically have been incorrect.

In a second example, your key management team members, who must lead the company, spend most of their time team building with various members of the team on an individual basis, and to promote individual agendas, to the detriment of the cohesive functioning of the whole group. Third, your company employees appear to make a decision, but, in truth, are waiting for the "blessing" from the company owner or founder to actually move forward with the plan.

In each of these situations, components of the organizational culture will keep your organization from moving forward with the success you deserve. You need to consciously identify the cultural impediments and decide to change them.

However, knowing what the desired organizational culture looks like is not enough. Organizations must create plans to ensure that the desired organizational culture becomes a reality.

It is more difficult to change the culture of an existing organization than to create a culture in a brand new organization. When an organizational culture is already established, people must unlearn the old values, assumptions, and behaviors before they can learn the new ones.

Is it possible to change the corporate/organizational culture?

An analysis of new norms, attitudes, new policies, employer being aware, implementing basic assumptions, applying thought to contingencies, in-depth cultural analysis is required.

Changing organizational culture is complex because of the following reasons:

Change is deep rooted in organization (just like personality of individual)

Outward layer of organization has artifacts, norms etc and deeper layer has values and basic assumptions (thus easier to change outward layer but not the inner one)

For changing culture, cultural dimensions will have to be understood.

Change in culture is deceptive. All the aspects of culture may not change at the same rate –

change is slow. Change in culture is a long process and managers often

resist it. Conflicting interests between individual and organization. Changing culture is necessary only when:

It is the only way to ensure organizational survival. Organization is set for expansion. Mergers, change in business endeavors demand it.

Organizational Culture: Change Process Culture change is difficult and time consuming because "culture"

is rooted in the collective history of an organization, and because so much of it is below the surface of awareness. In general, the process of culture change must include the following steps:

Uncover core values and beliefs. These may include stated values and goals, but they are also embedded in organizational metaphors, myths, and stories, and in the behaviors of members.

Acknowledge, respect, and discuss differences between core values and beliefs of different subcultures within the organization.

Look for incongruencies between conscious and unconscious beliefs and values and resolve by choosing those to which the organization wishes to commit. Establish new behavioral norms (and even new metaphor language) that clearly demonstrate desired values.

Repeat these steps over a long period of time. As new members enter the organization, assure that they are surrounded with clear messages about the culture they are entering. Reinforce desirable behavior.

It's clear that culture change is an ongoing process, so it’s very hard to identify organizations that have "completed" a successful culture change.

Another way of looking at the cultural change process:

Cultures tend to be highly complex and resistant to change. To manage this complexity, it is useful to organize the change effort into phases. The Normative Systems Culture Change Process was developed so that cultural members can join together to bring about positive and lasting change.

1. In Phase I, the culture is examined to see what ideas are likely to grow in the culture. Leadership is engaged and goals are determined.

2. In Phase II, the seed of a new cultural ideas are planted in the minds of the members of the culture. Employees at all levels are informed about the initiative and asked to participate.

3. In Phase III, the new cultural practices are nurtured. Individual change is supported by cultural touch points.

4. In Phase IV results are harvested, success is celebrated and plans are set for building on the progress that has been achieved.

The two most important elements for creating organizational cultural change are executive support and training.

Executive support: Executives in the organization must support the cultural change, and in ways beyond verbal support. They must show behavioral support for the cultural change. Executives must lead the change by changing their own behaviors. It is extremely important for executives to consistently support the change.

Training: Culture change depends on behavior change. Members of the organization must clearly understand what is expected of them, and must know how to actually do the new behaviors, once they have been defined. Training can be very useful in both communicating expectations and teaching new behaviors.

Additional Ways to Change the Organizational Culture

1. Create value and belief statements: use employee focus groups, by department, to put the mission, vision, and values into words that state their impact on each employee's job. For one job, the employee stated: "I live the value of quality patient care by listening attentively whenever a patient speaks." This exercise gives all employees a common understanding of the desired culture that actually reflects the actions they must commit to on their jobs.

2. Practice effective communication: keeping all employees informed about the organizational culture change process ensures commitment and success. Telling employees what is expected of them is critical for effective organizational culture change.

3. Review organizational structure: changing the physical structure of the company to align it with the desired organizational culture may be necessary. As an example, in a small company, four distinct business units competing for product, customers, and internal support resources, may not support the creation of an effective organizational culture. These units are unlikely to align to support the overall success of the business.

4. Redesign your approach to rewards and recognition: you will likely need to change the reward system to encourage the behaviors vital to the desired organizational culture.

5. Review all work systems such as employee promotions, pay practices, performance management, and employee selection to make sure they are aligned with the desired culture. As an example, you cannot just reward individual performance if the requirements of your organizational culture specify team work. An executive's total bonus cannot reward the accomplishment of his department's goals without recognizing the importance of him playing well with others on the executive team to accomplish your organizational goals.

The following are the six guidelines for cultural change:

1. Formulate a clear strategic vision 2. Display Top-management commitment 3. Model culture change at the highest

level 4. Modify the organization to support

organizational change 5. Select and socialize newcomers and

terminate deviants 6. Develop legal and ethical sensitivity.  

Organizational cultural change strategies/approaches/methods etc……

1. Top down approach/strategy.

2. Bottom up/Grass root driven approach/strategy.

3. Driven by process Champion approach/strategy.

TOP DOWN approach/strategy: Programmatic cultural changes are typically started and

lead from the top. A CEO or plant manager perceives a problem in the

culture of an organization. S/he calls for change. This is culture change driven in the most conventional way, from the top-down.

Change initiated by senior managers typically works towards artifacts but not towards values.

This approach suffers from three paradoxes: Messages of initiative, autonomy and innovation are

usually conveyed through highly bureaucratic methods. It will be problematic if employees feel that new cultural

change conflicts with existing occupational conflict. If the values brought in by employers are disagreed with

employees’ sense of reality, the new change may not be suitable.

BOTTOM UP/GRASSROOT DRIVEN approach/strategy.

This involves implementing cultural change through lower levels of the organization

Although culture change driven from the grassroots level, whether by an individual employee or a team, cannot be accomplished without support from management, the catalyst is clearly located within the rank and file; the momentum spreads through the organization from the bottom up. The critical difference between a bottom-up change process and the more conventional top-down approach is lodged in the sharing of responsibility and power between management and grassroots leaders.

The other points to be noted as per this approach are:1. Start to ensure commitment to change by involving people

in defining problems.2. Work jointly to develop vision.3. Spread changes to other areas of the organization.4. Confirm change by ensuring that policies, procedures and

structure support them.

 DRIVEN BY PROCESS CHAMPION approach/strategy:

In the absence of either a top-down mandate or a grassroots leader, an experienced safety and health professional operating in the context of a mission to manage safety as a people-oriented activity can drive and steadily champion the process of changing an organization's safety culture.

Today's safety practitioner, in contrast to yesterday's repository of technical skills, recognizes his/her collateral role as a change agent.

S/he welcomes the mandate to partner with line management in leading the organization toward the adoption of new norms, beliefs, and values.

 Trans-global and cross cultural contents:

Cultural differences are said to have substantial impact on international life and transnational dealings.

This is especially true with the negotiation of translational agreements. The parties often spend a great deal of time to reach an agreement.

They more often than not also return to the negotiation table, probably spending more time re-negotiating their original agreement.

One obvious reason is that those agreements are usually concluded between parties belonging to different cultures, and, therefore, each party might perceive the basis of making business in different ways.

Culture differs across nations ---- communication is the main barrier ---thus culture is primarily a system for creating, storing and sending of information in this regard ---- thus culture is important as we have to travel to different countries/cultures and deal with those people.

Leadership and organizational culture:

HOW CAN LEADERS DETECT DESIRABLE AND UNDESIRABLE CHARACTERISTICS OF ORGANIZATIONAL CULTURE?

Productive cultural change will occur if leaders correctly analyze the organization's existing culture, and evaluate it against the cultural attributes needed to achieve strategic objectives.

Consequently, leaders must first possess a clear understanding of the strategic objectives for their organization and identify the actions needed to reach those objectives.

These two tasks by themselves are difficult, particularly for the federal agencies that are experiencing volatile rates of change and reorientation. Nevertheless, without these specifications, any cultural transformation is a blind exercise.

Next conduct an analysis of the organizations existing ideologies, values and norms. Two critical questions that leaders should ask are: (1) Are existing explanations of cause and effect relationships, and acceptable beliefs and behaviors applicable to the organization's achievement of strategic objectives?

(2) Are organizational members facing ambiguities about the external environment and internal work processes that can only be clarified by organizational leadership?

Culture is deep seated and difficult to change, but leaders can influence or manage an organization's culture. It isn't easy, and it cannot be done rapidly, but leaders can have an effect on culture. Schein outlines some specific steps leaders can employ:

What leaders pay attention to, measure and control. Something as simple as what is emphasized or measured, over time, can have an effect on an organization's culture. One example of this is an emphasis on form over substance.

Leader reactions to critical incidents and organizational crises. The way leaders react to crises says a lot about the organization's values, norms and culture. Crises, by their nature, bring out the organization's underlying core values. Often, this is where rhetoric becomes apparent. Reactions to crises are normally highly visible, because everyone's attention is focused on the incident or situation.

Deliberate role modeling, teaching, and coaching. Nothing can take the place of leaders "walking their talk." The personal example of a strategic leader can send a powerful message to the members of an organization, particularly if it is ethical and consistent. Reinforcing that example with teaching and coaching will help others to internalize the desired values.

Criteria for allocation of rewards and status. The consequences of behavior-what behavior is rewarded and what is punished-can significantly influence culture.

Criteria for recruitment, selection, promotion, retirement and excommunication. One of the powerful ways of changing an organization's culture is through the type of people brought into, retained, and advanced in the organization. You should be able to establish a desired culture base in an organization by bringing in and advancing individuals with the values you want, and eliminating those with undesired value bases.

Organizational design and structure. modifying the organization's basic structure may be a way of changing the existing norms, and hence the culture. For example, a culture of mistrust between the leaders and the members of an organization may be exacerbated by a "line" structure that discourages vertical communication.

Organizational systems and procedures. The simplest definition of culture is "that's the way we do things around here." Routines or procedures can become so embedded that they become part of the culture, and changing the culture necessitates changing those routines.

Design of physical space, facades, and buildings. The impact of the design of buildings on culture can easily be illustrated by considering the executive perks in an organization.

Stories about important events and people. This is a way that culture is perpetuated in an organization, in that it helps define and solidify the organization's identity.

Formal statements of organizational philosophy, creeds, and charts. This is the way leaders most often try and influence their organizations, and encompasses the vision or mission statement and statements of the organization's (or the leader's) values and philosophy. By themselves, however, formal statements will have little effect on the organization's culture. They must be linked to actions to affect culture.

Schein has five guidelines for the leader: (with respect to cultural change)

1. Don't oversimplify culture or confuse it with climate, values, or corporate philosophy. Culture underlies and largely determines these other variables. Trying to change values or climate without getting at the underlying culture will be a futile effort.

2. Don't label culture as solely a human resources (read "touchy-feely") aspect of an organization, affecting only its human side. The impact of culture goes far beyond the human side of the organization to affect and influence its basic mission and goals.

3. Don't assume that the leader can manipulate culture as he or she can control many other aspects of the organization. Culture, because it is largely determined and controlled by the members of the organization, not the leaders, is different. Culture may end up controlling the leader rather than being controlled by him or her.

4. Don't assume that there is a "correct" culture, or that a strong culture is better than a weak one. It should be apparent that different cultures may fit different organizations and their environments, and that the desirability of a strong culture depends on how well it supports the organization's strategic goals and objectives.

5. Don't assume that all the aspects of an organization's culture are important, or will have a major impact on the functioning of the organization. Some elements of an organization's culture may have little impact on its functioning, and the leader must distinguish which elements are important, and focus on those.

Emerging trends in organizational culture:

1. Open office layouts: 2. Fostering teams: 3. Focus on customer satisfaction: 4. Greater emphasis on talent retention: 5. Equitable treatment of employees: 6. Concept of learning organisation: 7. Flexi time work systems: 8. Advent of computers as a way of life: 9. Increased quality awareness and focus:

MODULE 4

CREATIVITY&INNOVATION

Creativity is a mental and social process involving the discovery of new ideas or concepts, or new associations of the creative mind between existing ideas or concepts. Creativity is fueled by the process of either conscious or unconscious insight. An alternative conception of creativeness (based on its etymology) is that it is simply the act of making something new.

Creativity refers to the phenomenon whereby something new is created which has some kind of value. What counts as "new" may be in reference to the individual creator, or to the society or domain within which the novelty occurs. What counts as "valuable" is similarly defined in a variety of ways.

Scholarly interest in creativity ranges widely: the mental and neurological processes associated with creative activity; the relationship between personality type and creative ability; the relationship between creativity and intelligence, learning and mental health; and ways of fostering creativity through training and technology.

Creativity and creative acts are therefore studied across several discplines - psychology, cognitive science, education, philosophy (particularly philosophy of science), theology, sociology, linguistics, business studies, and economics. As a result there is a multitude of definitions and approaches.

Creativity comes from the Latin term creō "to create, make". The ways in which societies have perceived the concept of creativity have changed throughout history, as has the term itself. Originally in the Christian period: "creatio" came to designate God's act of Ex nihilo, "creation from nothing." "Creatio" thus had a different meaning than "facere" ("to make") and did not apply to human functions. The ancient view that art is not a domain of creativity persisted in this period

Creative thought is a mental process involving creative problem solving and the discovery of new ideas or concepts, or new associations of the existing ideas or concepts, fueled by the process of either conscious or unconscious insight.

From a scientific point of view, the products of creative thought (sometimes referred to as divergent thought) are usually considered to have both originality and appropriateness.

Although intuitively a simple phenomenon, it is in fact quite complex. It has been studied from the perspectives of behavioral psychology, social psychology, psychometrics, cognitive science, artificial intelligence, philosophy, aesthetics, history, economics, design research, business, and management, among others.

The studies have covered everyday creativity, exceptional creativity and even artificial creativity. Unlike many phenomena in science, there is no single, authoritative perspective or definition of creativity. And unlike many phenomena in psychology, there is no standardized measurement technique.

INNOVATION Innovation is a change in the thought process for doing

something, or the useful application of new inventions or discoveries.

It may refer to an incremental emergent or radical and revolutionary changes in thinking, products, processes, or organizations.

Following Schumpeter (1934), contributors to the scholarly literature on innovation typically distinguish between invention, an idea made manifest, and innovation, ideas applied successfully in practice.

In many fields, such as the arts, economics and government policy, something new must be substantially different to be innovative. In economics the change must increase value, customer value, or producer value. The goal of innovation is positive change, to make someone or something better. Innovation leading to increased productivity is the fundamental source of increasing wealth in an economy.

Innovation is an important topic in the study of economics, business, entrepreneurship, design, technology, sociology, and engineering.

Colloquially, the word "innovation" is often synonymous with the output of the process.

However, economists tend to focus on the process itself, from the origination of an idea to its transformation into something useful, to its implementation; and on the system within which the process of innovation unfolds.

Since innovation is also considered a major driver of the economy, especially when it leads to new product categories or increasing productivity, the factors that lead to innovation are also considered to be critical to policy makers. In particular, followers of innovation economics stress using public policy to spur innovation and growth.

INNOVATION vs. CREATIVITY It is often useful to explicitly distinguish between

creativity and innovation. Creativity is typically used to refer to the act of

producing new ideas, approaches or actions, while innovation is the process of both generating and applying such creative ideas in some specific context.

In the context of an organization, therefore, the term innovation is often used to refer to the entire process by which an organization generates creative new ideas and converts them into novel, useful and viable commercial products, services, and business practices, while the term creativity is reserved to apply specifically to the generation of novel ideas by individuals or groups, as a necessary step within the innovation process.

"...creativity by individuals and teams is a starting point for innovation; the first is a necessary but not sufficient condition for the second."

Although the two words are novel, they go hand in hand. In order to be innovative, employees have to be creative to stay competitive.

Creativity techniques Creativity techniques are methods that promote original

thoughts by facilitating divergent and/or convergent thinking. Some techniques require groups of two or more people while other techniques can be accomplished alone. These methods include word games, written exercises and different types of improvisation. Creativity techniques can be used to develop new materials for artistic purposes or to solve problems.Randomness

Randomness, or aleatory, is the introduction of chance elements. Aleatory is commonly found in music, art, and literature, particularly in poetry. Improvisation

Improvisation is a creative process which can be spoken, written, or composed without prior preparation.

Improvisation, also called extemporization, can lead to the discovery of new ways to act, new patterns of thought and practices, or new structures.

Problem Solving In problem-solving contexts, the random word

creativity technique is perhaps the simplest method. A person confronted with a problem is presented with a randomly generated word, in the hopes of a solution arising from any associations between the word and the problem.Therapeutic Applications

Projective therapy is a form of psychotherapy which uses synthesis to produce original interpretation and problem solving strategies. Fiction is read in the form of a novel or observed in the form of a film. In this therapeutic technique, patients analyze the fictional work and immerse themselves in this fictional world. Rather than focusing on their problems, they analyze the author- or actors- motivation, plot-development and cinematography during the group process.

INNOVATIVE ORGANIZATION:

An innovative organization engages everyone throughout the organization in the task of developing and implementing new ways to reach the organization's goals. And everyone indeed includes everyone from the chief executive to frontline workers.

An innovative organization is an organization that innovates systematically and sustainably in everything it does and how it does it.

Only individuals and teams can innovate but the culture and the “organization” can power people up or hold them back by stifling individual and team innovation initiatives.

How successful innovation happens in an organization?

To be systematically innovative, an organization needs to work simultaneously on three pillars:Culture

The Culture, driven by the executives, gives people the permission to innovate and rewards and recognizes their initiativesOrganization and Processes

The Organization and its Processes must be compatible with innovation and not “get in the way”.Innovation Skills

Individuals must have Innovative Thinking Skills and managers and executives must understand the process of innovation and have Innovation Management Skills.

The 3 pillars for innovation in organizations can be summed up as under:

Culture The role of culture in enabling innovation is critical.

80% of innovative organizations say that their culture actively supports innovation but only 2% of non-innovative organizations can tell the same story. Some of the factors that most influence innovation are:

Leadership Clear common goals Trust Managers’ attitude Teamwork Attitude towards risk-taking Motivation to innovate Time and resources Diversity Openness Flexibility

Organization

Most organizations were created during the “industrial” economy and are still operating with principles inherited from that period. In most cases leaders are not aware of the impact the “Organization” has on innovation. The “Organization” can make innovation easy or difficult. Here are some examples:

Structure Decision making Change management Competence and professional skills Training          

Processes

Two types of processes impact innovation: current processes, such as Performance Management, Marketing Planning or Budget, and specific innovation processes.

Current processes can have a dramatic impact on innovation. Unfortunately, too often the executives and managers who control these processes do not have “enabling innovation” as one of their core priorities. Here are some of examples:

Budget process Performance Management process IT development process Innovation processes

Characteristics of an INNOVATIVE ORGANIZATION

Management is tolerant of failure;  

Bureaucracy and bureaucratic policies are at a minimum;  

Risks are not analyzed endlessly (paralysis by analysis);  

Management gives rewards to people who take risks; 

Management is open to outside ideas;  

Everyone is encouraged to suggest improvements;  

Ideas are listened to, no matter their source;  

Informal communication across departmental lines is encouraged; and  

Interpersonal skills are encouraged.

Other characteristics of an innovative organization include:

Celebrate failure: Supportive atmosphere: Open culture: Openness with customers: Market knowledge: Clear mission/vision: Set employee expectations: Broad-perspective employees:

Creating an Environment for Innovation Once your company has made a conscious

decision to encourage innovation, where and how should you start? How do you encourage people in every part of the company to innovate? In this article, one assumes that one has agreed on a consistent definition of what it means to innovate, and that one has the intention of involving as many in the company as possible and appropriate.

ATMOSPHERE: Innovation needs a good atmosphere in which to develop. It is

definitely a cultural characteristic and must be encouraged and nurtured inside a company. It does not come by simply flipping a switch. One must set an environment that encourages people to think in unusual and creative ways. This is not easy to accomplish when much of business is, by definition, so structured and orderly in its processes. Business, whether products- or services-oriented, needs to have somewhat standardized routines for much of what it needs to accomplish. Innovation, on the other hand, requires thinking out of the ordinary. These two are so different that in order to have effective innovation, care must be taken to encourage and allow unconventional thinking.COMMUNICATION:

One key component of this process is knowledge within the company. The better everyone in the company understands the goals and objectives of the company, the better this process of innovation should be. Internal communication, based on openness and with trust developed over years, is a key to setting this atmosphereCHALLENGE:

Top management must encourage innovation by setting forth one or more challenges to the appropriate people. Without a challenge, there may be no drive to innovate, nothing to provide the impetus.

SOURCES OF IDEAS: The idea sources for innovation (through

brainstorming) may come from the following. One area is inside the company. Your fellow employees are most often a good resource for ideas for improvements in internal processes, product improvements, service improvements and customer contact improvements. They are often the ones in the trenches who see the possible problems in the products, processes or services. Internal communications are critical to the effectiveness of this process.

Another idea source is the customer. Knowledge of customers¹ preferences is absolutely critical. Very few companies can innovate effectively without comprehensive knowledge of their customers’ needs and preferences. 

PROCESSES: In addition to an encouraging atmosphere, there

must be some procedures established to channel the innovation process. In general, the creative process is reasonably well structured. It starts with setting the environment to encourage idea generation. This requires focus in particular areas of interest, so that there is not a dilution of concentration. Brainstorming for ideas is next, with the one rule that there are no bad ideas. TIME HORIZONS:

Depending on the amount of time required for something to be thought up, developed, tested and brought to market, your approach may be quite different. With short horizon projects, the number of people and the scope of the project will of necessity be small.