Mgt of Change

Change Mgmt by Dr. Ali Sajid 1

Management of Change

Dr. Ali Sajid


• When you betray somebody else,

you also betray yourself.

Isaac Bashevis Singer


• Goodness is the only investment that never fails.

Henry David Thoreau


Management of Change in the Context of

New Socio Economic & Geo Political Realties

in Post WTO Scenario


In Uni-Polar World Dominated by

WTO Threat, winning Requires:

Faster actions,

More creative maneuvering,

More flexibility,

Closer partnerships with Global &

Regional Forces. than was typical in traditional Developing Countries bureaucracy.


Economic & Social Forces Driving Need for Major Change in Org

Technological Change Faster and better

communication Faster & better

transportation More information

networks connecting people globally

International Economic Integration

Fewer & Reduced tarriffs( WTO )

Currencies linked via floating exchange rates

More global capital flows

Maturation of Market in Developed Countries

Slower domestic growth

More aggressive exporters

More deregulation

Fall of Communist & Socialist regimes

More countries linked to the capitalist system

More privatization

The Globalization of markets & Competition

MORE HAZARDS•More competition •Increased speed

MORE Opportunities •Bigger markets •Fewer barriers Contd


More large-scale change in OrgTo avoid hazards and/or capitalize on opportunities,

firms must become stronger competitors. Typical transformation methods include:

• Reengineering • Restructuring • Quality Programs

• Mergers & acquisitions • Strategic Change • Cultural Change

Economic & Social Forces Driving Need for Maj change in Org….


Change world order requires more agile mgt

that pursues opportunity without being

bogged down by

cumbersome structures or

weighty procedures

that impede action.

Leadership in LDC, must learn how to:

Face this new music

& How to Respond


Organization Compared

Structure

• Bureaucratic

• Multi-leveled

• Organized with the expectation that senior management will manage

• Characterized by policies & procedures that create many complicated internal interdependencies

Systems

• Depend on few performance info systems.

• Distribute performance data to executives only

• Offer mgt training & support systems to senior people only

Culture

• Inwardly focused

• Centralized

• Slow to make decisions

• Political

• Risk averse

Structure

• No bureaucratic, with fewer rules & employees

• Limited to fewer levels

• Organized with the expectation that mgt will lead, lower-level employees will manage.

• Characterized by policies & procedures that produce the minimal internal interdependence needed to serve customers.

Systems

• Depend on many performance info system, providing data on customers especially

• Distribute performance data widely

• Offer mgt training & support system to many people

Culture

• Externally oriented

• Empowering

• Quick to make decisions

• Open & candid

• More risk tolerant

Twentieth Century Twenty-First Century


Current Model Twenty-first-century Prototype

Hierarchy

Self-sufficiency

Security

Homogeneous

B individuals

Domestic

Cost

Profits

Capital

Board of directors

Affordability

Autocratic

Organization

Structure

Worker Expectations

Workforce

Work

Markets

Competitive Advantage

Focus

Resources

Governance

Quality

Leadership

Network

Interdependencies

Personal growth

Culturally diverse

By teams

Global

Time

Customers

Information

Varied constituents

No compromises

Inspirational


Why Change ?

World of work- Changing as org of

work - Changing their ways.

Same time- org’s having to adapt to a

changing world of work.

Organization in pvt & public sectors face a

tougher world -judged more harshly than

before on their effectiveness & in which:


“Fewer protective hedges behind

which to shelter”.


Change?

The most important question in performance evaluation becomes not

How well did you perform your job since the last time we met?”

But

“How much did you change it”General Colin Powell


Concept of Organization

• Old way to view org is known as chain of command.

• Developed in 1840s, when businesses -needed to manage mass production, wide distribution, & geographically dispersed orgs.

• Doesn’t describe Org as Flow of Process.• Tends to emphasize:• Individual accountability rather than Group

Process, or output of group & process.• There is no reference to Products or Customers

in this view. • Purpose of the org is accountability & control.


Learning Tech Organizations

Utilizes people, values & systems to

continuously change & improve its performance

using lessons of experience.


Learning Org & Organizational Structure

Effectiveness of any “Leadership System” depends in part on its orgl structure–

a. Clarification of authorityb. Responsibilityc. Reporting lines d. Performance standards to develop

structures that help them to maintain stability.


CHANGE• An Essential part of Creativity & Inov.

• In mgt change is expected to be a Part of Everyday life.

• As it is said that

“Nothing is certain but death & taxes”

But A third certainty could be added

i.e." CHANGE”


A Model for an Organization’s Environment

Macro or Far Environment

Technological Factors

Social Factors

Political Factors

Economic Factors

Near or Operating Environment

Customers

Clients

Competitors

Partners

Suppliers

ORGANIZATION


• Select one word that symbolizes the world we live in – CHANGE

• Change was always there but it used to be incremental

• Today we are faced with change that is exponential – change heaped upon change

• Change flows and endures


Change Management

• A systematic approach to dealing with change, both from the perspective of an “organization and of individual level”.

• Change management at least three different aspects, including:– adapting to change– controlling change– effecting change


• A proactive approach to dealing with change is at the core of all three aspects.

• For an org, Change Management means

“Defining & implementing procedures and/or technologies to deal with changes in the business

environment & to profit from changing opportunities”.


Brain Teasers

“Don’t change with the times – change before the times”

Darwin


It is not the strongest of the species that survives, nor the most intelligent, but rather the

one most responsive to change”

Charles Darwin


Key Questions while Assessing Type & Amount of Change for Quality.

1. How extensive should the change be? If extensive, transformation may be required.

2. Is change really needed? Is the organization simply choosing the easiest thing to change? This entails an accurate diagnosis of organizational problems & a sound change plan.

3. kinds of results desired, lT ST? ST- Transitional; LT require transformation.

4. kind of change - org able to make? Some - more difficult to change .

5. kind of implementation plans currently in place? evaluated to ensure -fit with new plans & programs.

6. Consequences of not changing at all? Massive org change can be very traumatic for firms;

sometimes costs of the change may be too high.


Understanding the Model for Change: Source of Dissatisfaction with Status Quo

For Change dissatisfaction originate from many

sources.

Customers demanding hi standards;

Want no defects,-

want on time delivery at reasonable prices.

don’t get - will take business elsewhere.

Resultantly many begin TQM programs as a

response to customer concerns or complaints.


Understanding Change Model: Implementation Implementation plans (P) need to establish momentum to

accomplish desired change.

Sequences of events, programs, meeting, & activities designed to

help employees learn new perspectives, skills, attitudes, &

behaviors.

Strategic initiatives -executed which specify assignments, objectives, &

outcomes for particular programs.

Change programs, different elements of org design, tasks, people,

structures in place,to be altered to accomplish strategic

objectives.


Understanding Change Model:

Cost of Change When change occurs, crucial organizational dynamics usually shift at same time. Power can change from one group to another.

Finance group went from being critical action group to playing support roles, during transformation process at Ford


Understanding the Change Model: Cost of Change

Definitions of competence shift.

Relationships b/w org members change;

Teams become cross functional & fluid,

established networks of support (and resistance) become obsolete.

Rewards & identities change as well;

Change seen as a demotion or as punishment.

Successful change leaders should do their utmost to guard against that phenomenon.


Understanding Change Model:

Cost of Change Once change - made & org fully adapted to

new vision

while remaining open to further change as needed,

reinforcement & consolidation of change must occur so that Sustained achievement of intended results & continual actions in accordance with new vision & values routine.


Understanding the Change Model: Cost of the Change

Systems, performance appraisal, MIS that support goal need to be finalized.

Understanding & interpreting reasons for success & problems, & continual use of themes and symbols, are critical so that org can look at the problems & possibilities for next round of change.


Forms Of Orgl Innovation

Process Innovation-

Results in better

Ways of doing things

Product Innovation-results in creation of new & improved

goods & services.


Process Of Innovation


Entrepreneurial Manager

Confident of ability.

Willing to take risks.

Seizes opportunity.

Expects surprise.

Makes things happen.

Promotes & actively supports

Creativity

Avoids & even discourages

Manager as Trustee

Threatened by changes.

Bothered by uncertainty.

Prefers predictability.

Supports the status quo.

Waits for things to happen.


Steps in Product Innovation

1. Idea Creation- New knowledge forms around basic discoveries, extensions of existing understandings or spontaneous creativity made possible by individual ingenuity & communication with others.

2. Initial Experimentation- ideas - initially tested in concept by discussions with others referrals to customers, clients or Technical experts, & or in forms of prototypes or samples.


Steps in Product Innovation ..Contd

3. Feasibility Determination- Practically & financial values-examined in formal feasibility studies, also Identify potential costs & benefits & Potential Markets or applications.

4. Final Application- new product finally commercialized or Put on sale in open market, or new process is implemented as part of normal operating routines.


Characteristics Of Innovative Orgs• In highly innovative-orgs Supports Staff inov as well.

• Critical Inov Roles to be filed by talented workers include:– Idea Generators- create new insight from “Internal Discovery”

or “External Awareness” or both.– Info Gatekeepers- Link b/w people & groups within org & with

external sources.– Product Champions- “Advocate push for change & inov” in

general & adoption of specific product or process in particular.– Project Managers- “Perform Technical Functions Needed” to

keep innovative project on track with all needed resources support.

– Inov Leaders- “Encourage, Sponsor, & Coach others to keep Inov values & Goals in Place” & “Channel Energies in right direction”.


Barriers To Inov!

• Top Mgt Isolation- Fosters misunderstandings & contributes to a risk-averse climate.

• Intolerance to Differences- Denies uniqueness, creates homogeneity,& brands as troublemakers those who question status quo.

• Vested Interests- focus on part rather than whole & emphasizes defense of one's turf against encroachment of outsider.

• Short Time Horizons- Emphasizes Short Term Goals rather than potential for “New ideas to generate LT gains”.

• Overly Rationale Thinking- Tries to make creativity a systematic process & “emphasizes schedules over results”.

• Inappropriate Incentives - Uses Rewards & Control to Reinforce Routines, Discourages Surprises & Differences Linked to Inov.

• Excessive Bureaucracy- Gives Preference to Rules, Procedures & Efficiency that frustrate creativity & inov.



Types Of Orgl Change

1. Anticipatory Change- Planned changes based on expected situations.

2. Reactive- Changes made in response to unexpected situations.

3. Incremental-subsystems adjustments required to keep org on course.

4. Strategic- altering overall shape or direction of org.


Forces Causing Change


External Change Forces

• Have greater impact on orgl change

• Ranges from technological discoveries to changing lifestyles

• Pressures org to change its “goals, structure & methods of operation”.


Internal Change

• Within orgs• As a result of new orgl objectives & cultures• Both types are interrelated.• Linkage frequently results from changes in

values & attitudes that affect people in system.


Planned Vs Unplanned Change

Unplanned Occurs spontaneously & without change agents direction.

Planned occurs as a “Result of Specific Efforts” in its behalf

By Change Agent.


Forces & Targets For Change

• Tasks- Nature of work as represented by orgl mission, objectives, strategy & job designs for individual & groups.

• People- Attitudes & competencies of employees, & HR systems that supports them.

• Culture- Value system for orgs as a whole & norms guiding individual & group behavior.


Forces & Targets For Change.. Cont!!

• Technology- Operations tech used to support job designs, arrange work flows & integrate people & machines in systems.

• Structure- Configuration of org as a Complex system, including its bureaucratic features & lines of authority & communication.


Individual Reaction To Change


How People Respond To chg They Fear & Dislike


Why People Resist To Change?

• Fear of unknown-Not understanding what is happening & why?

• Disrupted habits- Feeling upset when old ways of doing things cant be followed.

• Loss of confidence- Feeling incapable of performing well under new ways of doing things.

• Loss of control-Feeling things are being done to you rather than by or with you.

• Poor timing- Feeling overwhelmed or that things are moving too fast.

• Work overload- Not having physical or psychic energy to commit to change.

• Loss of face- feeling inadequate or humiliated because old ways weren't good ways.


Why People Resist To Change?

• Lack of Purpose- Not seeing a reason for change or not understanding its benefits.

• Surprise- Schedule changes in measurable, comfortable stages. Too much, too soon can be counterproductive.

• Inertia-many members of typical org desired to maintain safe, secure & predictable status quo. Technological inertia also is common problem.

• Misunderstanding/ignorance/lack of Skill- • W/O adequate introductory or remedial training

otherwise positive change may be perceived in negative light.

• Emotional side effects- Those forced to accept on job changes -experience sense of loss over past ways of doing things.


Why People Resist To Change in tech org?

• Lack of Trust- Promises of improvement likely to fall on deaf ears, if employees do not trust mgt.

• Mgr- unlikely to permit necessary participation if they don’t trust their people.

• Fear of Failure- just as student doubts their chances of ever graduation, challenges presented by significant on job changes can also be intimidating.

• Personality Conflicts- mgr - disliked by their people -poor conduits of change.

• Lack of Tact- “Not necessarily, what is said that shapes our attitude toward people & events.”

• “How it is said is often more important. • Tactful & sensitive handling of changes is essential.


Why People Resist To Change?• Threat of job status/ security-• AS employment fulfills basic needs employees can be

expected to resist changes with real or imaginary job status or job security.

• Breakup of Work Groups- Significant changes can tear fabric of on job social relationships.

• So, members of cohesive work groups exert peer pressure to resist changes-threaten to breakup group.


Ways Of Dealing With Change

1. Reactive Process- Mgt tries to keep org on a steady course by solving problems as they come up.

2. Proactive Process- mangt tries to change things by setting a new course

rather than by

correcting current one.


Dealing With Resistance To Change• Resistance - Feedback - Informed change agent can use

constructively to modify planned change.• Means that something can be done to achieve better fit

b/w planned change, situation & people involved.• Alternatives to Manage Resistance are,

– Education & Communication– Participation + Involvement– Facilitation + Support– Negotiation + Agreement– Manipulation + Co-operation– Explicit + Implicit coercion


Magrs must stimulate & Lead change in order to create learning orgs-

with core ingredients:

– Mental Models- everyone sets aside old ways of thinking.

– Personal Mastery- everyone becomes self aware & open to others.

– System Thinking- everyone knows how whole org works.

– Shared Vision- everyone understands & agrees to plan of action.

– Team Learning- everyone works together to accomplish plan.


Strategies To Overcome Resistance

To Change



Orgl Effectiveness

Result of activities that improve Orgs Structure, Technology &

People.



Building & Sustaining Total Quality Organizations


TEN Commandments

for Change


1. ANALYZE ORG & NEED FOR CHANGE

Analysis, should cover:

“org history, its operations, functioning, strengths, weaknesses.

Who will support the change? Who will resist it?

particular levers of action change -that implementers should take to initiate process. Org with employee participation in decision making

to continue that tradition when implementing change.


1. ANALYZE ORG & NEED FOR QUALITY

G.E-transformational change 1988 - WORKOUT program. to org act with Speed, Simplicity, & Self-Confidence,

town meetings within business units to hear strategy of business unit presented by sr mgt, to diagnose problems might present, & to develop team & cross functional solutions to problems.

Data about org processes, measurements, & procedures discussed with assessments of political processes -drive behavior one way or another.


1. ANALYZE ORG & NEED FOR CHANGE

Diagnosis -use of data to identify gaps between what currently exists & what should

be.

Diagnosis is conclusion about what data mean.

When a gap b/w what is & what should be is determined, a diagnosis is made.

A critical step in determining what meaning, priority, & relationship are to the facts.

Action, - planning & implementation of steps -can be taken to improve the situation.

“Problem Analysis” is not a clean, well defined process. -often an iterative,

incomplete, messy, ambiguous set of activities, examining formal & informal process

that occur within org.


2. Create a Shared Vision & Common Direction

New model of Managing (M) is strategic & org vision, image of future operations of

the org .


1. who are satisfied today,will this keep them satisfied? 2.If the vision is made real,how it affect customers?3.For those who are not entirely happy today, will this make them happier” for people who don’t buy from us now, will this attract them? 4.In a few years, will we be doing a better job than the competition of offering increasingly superior products & services that serve real customer needs?

Basic questions can help determine the desirability of a vision for change


Basic questions can help determine the

desirability of a vision for change

1.How will this vision affect stockholders? Will it keep them satisfied?

2. If not entirely happy today, will this improve matters?

3.If we are successful in implementing this change, are we likely to provide better financial returns than if we do otherwise?


Basic questions can help determine the desirability of a vision for change

1.How will this vision affect employee?

2. If they are satisfied today, will this keep them happy?

3. If they are disgruntled, will this help capture their hearts & minds?

4. If we are successful, will we be able to offer better employment opportunities than those firms with whom we compete in labor markets?


In blunt terms Orgs that fail to change are sure

to fail


3. Separate From the Past

Critical to hang on to some elements of org life that

provide continuity, such as location, some legends,

or heritage.

Yet take a hard look at what routines & structures

no longer work & seek to move beyond them.

In changing org to develop products quicker,

Change leaders kept legends of product

development successes,

modified structures & routines that no longer

worked.


4. Create a Sense Of Urgency

Coupled with dissatisfaction with status quo.

Persuading an org to change when things seem to be

going well is difficult.

Change leaders need to generate a sense of

urgency by carefully outlining situation at

hand & constantly communicating to org itself.

Data about customer satisfaction, competitive forces, &

“need for change as a state of mind” can be provided

to org members -so that they see need to implement

QM programs.


STRONG LEADER ROLE -

Executive action speak louder than words.

No major drive for change, w /o support of leaders

who can serve as strategists for change.

Top mgt is responsible for initiating supporting

vision for changed culture

Aligning employees around a vision, & leadership

in change process can come from a variety of

sources.


5. SUPPORT A STRONG LEADER ROLE - I

“Employee Involvement” strategies implicit in

change process enable leaders to emerge

from a variety of positions in org.

Leaders get lost in shuffle & feel

“Powerless as a result”.

Their traditional role as authoritarian changed,

feel disenfranchised


5. SUPPORT A STRONG LEADER ROLE - II

To implement Change, programs recognize changing role of leader,

Either give them new skills in coaching & developing of work teams, or abandon their role entirely

HR & Quality Mgrs to select, train, & development, etc - to facilitate moves toward QM.

H R mgrs assist in design & delivery of QM programs -can work strategically with CEO office & committee to

ensure satisfactory program design, delivery, & assessment.


6. LINE UP PLITICAL SPONSORSHIP - I

To determine, support for change is “Force Field Analysis” Forces -drive & restrain change lead to assessment of key owners of process. “Stakeholder Analysis”. To Determine key supporters Commitment charts -enable change initiator to understand

“Dynamics necessary to achieve requisite commitment”. People -in midst of a change can withhold support for a variety of reasons. Resistance often appears irritating to people, initiating change, but sources behind resistance be understood.

When change leader understands sources of resistance of key stakeholders, plans can be develop to attain commitment & reduce causes of resistance.

Then Change can be achieved with minimal cost.


6. LINE UP PLITICAL SPONSORSHIP - II

Reasons people resist changes:

a. A desire not to lose something of value

b. A misunderstanding of change & its implications

c. A belief - change does not make sense for org.

d. A low tolerance for change itself.

Understanding reasons enables CL to develop

implementation plans - might minimize resistance.

If resistance to implementing M o C program comes

from a lack of understanding of change d process then

educate


7. CRAFT AN IMPLEMENTATION PLAN

Plan should enable org to bridge gap between

what is and what should be.

While plan itself can be relatively simple,

essential elements must include

a) specification of clear roles

b) responsibilities for all parties to change.


7. CRAFT AN IMPLEMENTATION PLAN

Analysis of key stakeholders & resisters so that plans

deal with “sources of resistance”.

Coaching & training is an effective approach to reducing

resistance. Negotiations (& reexamination of union

contracts) reduces resistance.

Political power, cooperation, influence, coercion can be

utilized.


Successful M o C plan involve three

steps

1. Unfreezing the present level.

2. Moving to the new level.

3. Refreezing the new level.

Three-Step Model for Change for M o C


7. CRAFT AN IMPLEMENTATION PLAN -II

Which Plan?????

Planned Or

Emergent


ENVIRONMENT

Stable

Planned

Turbulent

Emergent

Approaches to Change


Conditions for planned & emergent approaches to

change

•Turbulent environment •Organization Wide change•Behavior/attitude

•Stable Environment •Small Scale•Localized Change•Technical or structural •Focus

Planned Change

Emergent Change


The Change Process-III

Planning the Change

Process comprises six interrelated activities;

1. Establishing a change mgt team.

2. Mgt structures.

3. Activity Planning

4. Commitment Planning

5. Audit & post audits.

6. Training


7. CRAFT AN IMPLEMENTATION PLAN - IV

An essential part of any M o C Program is training.

Org need make tremendous investments in training so that employees understand what is expected of them & why.

It is critical that training.

•Be delivered on job, with real-world relevance & application time.

•Be delivered as needed, coordinated with needs of employees.

•Be conducted by line people, team members, leaders, supervisors, or managers.

•Be provide to employees at all levels simultaneously so that clear messages are reinforced all at once.

•Be skills based, measurable, & with attainable outcomes.

•Be designed by HR Dept in concert with mgmt.

•Play an active role in need diagnosis, developing,& delivering training.


7. CRAFT AN IMPLEMENTATION PLAN - IV

Training should teach people some qualitative skills, such as

how to Work & Communicate in groups.

In M o C programs, Org dependent on teamwork.

Employees need to learn how to handle team dynamics meetings

can be effective, to increase involvement, & to aid individual

employee efforts in problem analysis & diagnosis. M o C is often

based on employee actions;

Training in effective facilitation & support is critical.


8. DEVELOP ENABLING STRUCTURES - I

Altering Status Quo & developing new ways to org,

measure, & assess progress -critical for any org change.

Enabling structures are - pilot tests, workshops, or training,

or more symbolic structures such as banners, meetings,

or moving around office space at the request of a

team.

Systems & structures must be in place to absorb

changes.

Consistency be maintained between “goals &

performance targets” critical requisite for success.


8. DEVELOP ENABLING STRUCTURES - I

Specific performance targets – overcome

implementation problems.

Appropriate org structures be in place for managing new

initiatives.

Parallel learning structures (task forces, teams, etc.)

can effective, may also presents a broad admn

burden.


8. DEVELOP ENABLING STRUCTURES - II

Job Designs -reflect each employees discretionary decision making ability & teamwork.

Compensation systems –to reflect team related contributions & skill mastery, systems for generating employee ideas & suggestions must be in place.

Selection, Recruitment, & Development Systems to reflect realities of changed mgt & screen out -not appropriate.

Informal structures (ceremonies, gatherings, recognition) to reinforce small & large gains.


Corporate Culture & Org Change

• A Corporate culture is a company’s value system & its collection of guiding principles.

• Barriers to change :

a. Employee resistance

b. “Dysfunctional Corporate Culture” one whose shared values & behavior are at odds with its LT term health.



• An example of a dysfunctional culture is a high-tech company that stresses individual rewards while innovation depends on teamwork.

• To change mgt practices, org must first address their fundamental values.



• Cultural values -often seen in mission & vision statements of org

• Culture - powerful influence on behavior because it is shared widely & operates without being talked about,

often without being thought of.

• Culture is reflected by mgt policies & actions that a company practices.



• Org that believe in principles of M O C more likely to implement the practices successfully.

• Conversely, actions set culture in motion.

• Behavior leads people to thing in certain ways. • TQ practices used routinely with an org, its people

learn to believe in principles, & cultural changes can occur.


Developing a Culture of M O C Depends on

• Top mgmt leadership

• A relentless focus on customer

• Systematic improvement of all business practices

• Decentralization of decision-making

responsibility

• Breaking down of org barriers

• Improvements that are linked to company

objectives

• Realignment of reward & measurement systems.


Creativity & Innovation in Tech Org

Innovation is a process of taking a new idea & putting it into practice.Act of converting new ideas into usable applications.Creativity is an application of ingenuity & imagination that results in a novel approach or unique solution to a problem.


9. COMMUNICATE, INVOLVE PEOPLE,

& BE HONEST - I Effective communication is critical from beginning of a change

effort. Every element of change must be talked about, presented, & discussed,

Managers to gauge peoples reactions & consequences of making change.

Believable info - stimulates enthusiasm & clearly demonstrate reward for participation, is key to successful communication about M o C .

Companies publicize heroes, & celebrate who epitomize desired behaviors, reward for participation new programs

Communications is face-to-face conversations, group or site visits, videotapes, brochures, booklets, company newsletters, advertising campaigns anything that skills.


9. COMMUNICATE, INVOLVE PEOPLE, & BE HONEST - IISupervisors to fully understand program & be able to

communicate it as coaches to employees.

Rewards must also be publicized.

Else

Employees in one company did not believe that their initiatives would be taken seriously.

Groups efforts if praised & made front page other groups begin to take new initiatives seriously.

Recognition must be consistent with desired behavioral standards & business values.


10. REINFORCE & INSTITUTIONALIZE CHANGE

Though any org change, the org leaders must prove their commitment to change itself.

By reinforcing new behaviors, managers emphasize importance of transformation.

Senior mgmt commitment to programs must demonstrate daily. Change is an ongoing process, difficult to keep tenth commandment.

Process of adaptation & change is the behavior that should be reinforced& institutionalized, not change itself. Executives want investment in training, systems revision, process analysis, diagnosis, surveys, & all tools has a good payout.


10. REINFORCE & INSTITUTIONALIZE THE CHANGE - II

One of problems associated with major organizational change

efforts lies in the energy & commitment of managers who are

charged with implementing the change.

Maintaining this commitment is critical for reinforcing &

institutionalizing any change.


10. REINFORCE & INSTITUTIONALIZE THE CHANGE - III Anchoring Change in a Culture

Comes last, not first: Most alterations in norms & shared values come at the end of the transformation process.

Depends on results: New approaches usually sink into a culture only after its very clear that they work & are superior to old methods.

Requires a lot of talk: without verbal instruction & support, people are often reluctant to admit the validity of new practices.

May involve turnover: Sometimes the only way to change a culture is to change key people.

Makes decision on succession crucial: if promotion processes are not changed to be compatible with the new practices,the old culture will reassert itself.


How To Manage Planned Change?


Three phases of planed changes are,

1. Unfreezing- preparing a system for change.

2. Changing-making actual changes in system.

3. Refreezing- stabilizing system after change.


1. Unfreezing • Stage of Preparing a situation for change• Developing a felt need for change• Can be assisted through environmental

pressures, declining performance, recognizing problems or opportunities that exist

• Observing behavioral models that display alternative approaches.

• Helps people break old habits & recognize alternative ways of thinking about or doing things.


1. Unfreezing..ctd

• At this stage managers task is to,• create a felt need for change• Can be done by

– Establishing a good relationship with people involved

– Helping others realizes that present behaviors are not effective

– Minimizing expressed resistance to change


2. Changing…• Something New takes place in system & chg is actually

implemented.

• Mgrs initiates chgs in orgl targets of tasks• People, culture, technology & structure.

• Done ideally in response to good “Problem diagnosis” & a careful examination of alternatives.

• If chg implemented before felt need, -increased likelihood of failure.


2. Changing…

• At this stage mgrs task is to implement chg,• Can be done by:

– A) Identifying new more effective ways of behaving

– B) Choosing appropriate chgs in:– tasks, people, culture, technology &

structure.– C) Taking action to put these chgs into place.


3. Refreezing

• 1. Mgr is concerned about stabilizing chg & creating conditions for its LT continuity.

• 2. Accomplish by providing appropriate rewards for (a) performance, (b) positive reinforcement, © necessary resource support.

• 3. Evaluate results carefully, provide feedback to people involved, make required modifications in original ch.

• 4. If refreezing done poorly– A) Chgs -too easily forgotten – B) Abandoned with passage of time

• 5. If it is done well– Chg can be more long lasting


3. Refreezing ..ctd..

• Managers task is to stabilize chg,• Done by:

– Creating acceptance & continuity for new behaviors

– Providing any necessary resource support– Using performance contingent rewards &

positive reinforcement.


1. Force-Coercion Strategy

• Uses power bases of legitimacy, rewards & punishments as primary inducements to change.

• Likely outcomes of force –coercion -immediate compliance but little commitment.

• Done in more than one way– Direct facing stra- chg agent takes direct & unilateral

action to command that chg takes place.• Involves Exercise of formal authority or legitimate power,

offering special rewards, & or threatening punishment.• In Political maneuvering, chg-agent works indirectly to

gain special advantage over other persons & thereby make them change.

• Involves bargaining, obtaining control of important resources, granting small favors in return

• Strategy has limited results.


2. Rationale Persuasion Strategies

• Attempts to being about chg through Special knowledge, Empirical data, & Rationale argument.

• Informational stragty- assumes that rationale people can be guided by facts, reasons & self interest in deciding whether or not to support ch.


3. Shared Power Strategy

• Identifies or establishes values & assumptions from which support for a proposed ch will naturally emerge.

• Slow process is slow but high commitment.• Also called normative-reductive st- based on

empowerment &highly participative in nature.• Relies on involving others in examining personal

needs & values group norms, &operating goals as they relate to issues at hand.

• Power is shared by change agent.• Managers need reference power & skills to work

effectively• Is time consuming but results in long lasting &

internalized ch.


Choosing A Chg Strategy


Process Of Managing Change



Change Agent

• Individual either:– Manager from within org e.g. Z .A Khan of

Engro, Sindh – Outside consultant-takes leadership role in

initiating & introducing ch process.


Two Basic Ideas Necessary For Orgl Effectiveness

• Power is redistributed within orgl structure.

• If structure is changed in addition to power redistribution, both changes results from planned chg process.


Six Phases Of Chg Process

Shows stimuli on power structure & responses.• 1. Pressure & Arousal- Top mangt feels -need or

pressure for chg or an opportunity presents itself for improving future position of org. (PTV).

• 2. Intervention & Reorientation-• -Chg Agent (CA) assigned task of defining problem • -beginning process of getting org members to focus • 3. Diagnosis & Recognition Of Problem- • Info gathered & analyzed by CA & mgt. • Problem areas -diagnosed • those need - given attention.


Six Phases Of Chg Process …4. Intervention & Commitment To Solutions- CA to stimulate thought & find solutions by creativity-developing new & plausible alternatives. -Subordinates be encouraged to participate. 5. Experimentation & Search For Results- -Solutions developed in 4th phase - tested in small scale pilot programs & results analyzed. -One unit- try out idea before org-wide basis. 6. Reinforcement & Acceptance- If course of action -tested & found desirable, should be

accepted more willingly. -Improved performance should be source of reinforcement -so should lead to commitment to ch.


Pressure on top management

Stimulus power structure

Reaction of power structure

Arousal to take action

Phase 1

Intervention at top

Reorientation to internal problems

Phase 2

Diagnosis of problem areas

Phase 3

Recognition of specific problems

Solution invention

Phase 4

Commitment to new action

New solution experimentation

Phase 5

Search for results

Reinforcement from good results

New process acceptance

Phase 6


Change Agent (CA)

• Chg agent is person or group of person that tries to ch existing behaviors of another person or social system.

• They make things happen & part of every managers job is to act as a ch agent in work setting.

• Requires being alert to situations or people needing ch

• Open to good ideas• Able to support implementation of new ideas

in actual practice.


Organizational Development

OD- Special & Comprehensive

Approach To Planned Orgl Ch!


Organizational Development

• OD is long –range effort to improve org,s ability to deal with its environment & solve problems.

• Help orgs cope with forces for ch in their environments while simultaneously improving internal problem-solving capabilities.

• Outcome goal of OD focus on task accomplishments, & process goal of OD focus on way people work together.

• OD tries to achieve ch in a way that leaves orgl members more active & self reliant in maintaining longer run orgl effectiveness.

• Committed to improve orgs through freedom of choice, shared power & self reliance.


A General Model Of OD

• To begin with OD process successfully, facilitator must– Establish working relationship with

members of client system– Diagnosis-gathering & analyzing data to

assess situation & set appropriate ch objectives.

– Helps unfreeze existing situation.– Active interventions- ch objectives are

perused through variety of specific interventions.


A General Model Of OD ..

• Evaluation- an essential to OD process– Examination of process to determine if

things are proceeding as desired & if further action is needed.

– Eventually OD facilitator should achieve terminal relationship that leaves client able to function on its own.

– If OD process has been done well, & its members should be prepared to better manage their continuing needs for self renewal & development.


Phases Of OD Process


Orgl Features


General Model For OD


Methodological Foundation Of OD


Types Of Interventions

• OD intervention -structured activity helps create ch in org development.

• OD inter designed to help improve individual effectiveness include,– Sensitivity Training– Management Training– Role Negotiation– Job Redesign– Carrier Planning


OD Intervention For Different Levels


OD Int For Group Effectiveness

• Team Building- structured experiences to help group members set goals, improve interpersonal relations & become a better functioning team.

• Process Consultation- third party observation & advice on critical group processes e.g. communication, conflict & decision making.

• Intergroup Team Building- structured experiences to help two or more groups set shared goals, improve intergroup relations & become better coordinated.


OD Int With Special Emphasis On Orgl Effectiveness

• Survey Feedback- comprehensive & systematic data collection to identify attitudes & needs , analyze results & plan for constructive action.

• Confrontation Meeting- one-day intensive structure meeting to gather data on work place problems & plan for constructive actions.

• Structural Redesign- realigning orgs structure to meet needs of environmental & contextual forces.

• Mangt By Objectives- formalizing MBO throughout org to link individual, subunit orgl objectives.

Mgt of Change

Documents