Seminar+1+PPT

BMO6624 Organisation Change ManagementSeminar Outline

• Introduction

• Assessment

• Formation of groups

• Why study Organisational Change Management?

• Organisational Development (chpt.1&2)

• OD Vs OCM- an explanation

Assessments

Assessment* Weight

Assignment 1

Learning and Reflective Journal 15%

Assignment 2

Literature Review 35%

Assignment 3

Group Facilitation and Project Presentation

10%

Assignment 4

Group Project Report40%

Assessments (2)1. Individual Reflection of four topics (800-1000 words)

2. Literature Review (2000 words)

3. Group Presentation and Activity (In class)

4. Group Report (3000 or so words)

Important note

1. Assignment coversheet signed

2. Submit by Assessment Dropbox on VU Collaborae

3. Turnitin report required as noted in the study guide.

4. Medical Certificate needed to cover late

5. I Mark lost for each date Late if Late by 6 days not marked ie fail

To get us in the mood

http://www.youtube.com/watch?v=yhx0vE9CjRQ&index=2&list=PLc-1xwo5clV0_Aoo1su4S_aN-mKkZ0K14

http://www.youtube.com/watch?v=x-9FaJPhFxQ&list=PLc-1xwo5clV0_Aoo1su4S_aN-mKkZ0K14

http://www.youtube.com/watch?v=Fv8HjxWKEF0

http://www.youtube.com/watch?v=rxl4a4dEt9Q

Management guru Tom Peter’s blunt formula is “change or die” Why?

Era where all aspects of Business Is Unusual

Three to five year Strategic Plan is often changed

What are your examples of change and change management (share with person next to you and present back)

Why Study- Organisational Change Management?

Plan for today

Summarise Last session

1.7.15 pm Shem McDonald from Melbourne Student Learning will talk about Literature Reviews

2.8 to 8.15 Share last change experiences

3.Break – Strict 10 to 15

4.8.30 Seminar for rest of Session _ I will start on time

Chapter 1 and 2

Psychological Contract – Reflection 1 (Have a go and email me)

http://trove.nla.gov.au/work/9437423?selectedversion=NBD50858808

Organisations are faced with fierce

• Global competition

• Market Deregulation

• World Politics/Wars and International

conflicts/disuptes

• Economic shocks

• Technology

• Social Trends and New Technologies

• Nature of the Workforce.Contd…..Contd…..

The pace, volume and complexity of managing

business and maintaining the competitive

advantage is no longer an easy task

Some of the changes are big; some are small.

Some occur rapidly; while others occur slowly.

Some are threatened, some are real.

Contd..Contd..

Some planned, others are unplanned and some

are controlled and while others are not.

They occur in all domains:

Education systems, Management information

systems; Business strategies, Product life

cycles, Human resource system, Leadership

positions, technology etc

Contd..Contd..

What ever the area of business or type, one

question gets asked over and over again “ how

are we going to implement these changes?”

It is this question that lead to the study of

Organisational Change Management in Business

Schools around the world and it is this question

that forms the basis of our lecture topics.

Contd..Contd..

Change has occurred for decades

However, today’s Organisations operate in:

Simultaneous, Unpredictable and turbulent

environment and

At a global scale, the forces multiply, competition

intensifies, complex relations with other firms-

survival

Contd..Contd..

1. Development Change- Fine tuning

“To do better than” or “To do more of” what already

exists.

2. Transitional Change

Old system is replaced by New

changes in services, quality technology as well as

workforce

THREE TYPES OF CHANGETHREE TYPES OF CHANGE

3. Transformational Change

Most radical form of organizational change.

Reconceptualisation of the organisation’s mission,

vision, culture, critical success factors, forms and

structures and leadership.

Contd..Contd..

THREE PERSPECTIVES ON THREE PERSPECTIVES ON CHANGECHANGE

OldState Transition Stage

Developmental change

Transitional change

Transformational change

NewState

Plateau

Birth Death

ReemergenceChaos

1. Change Strategists- Leaders & Visionaries are the initiators of change

Concerned with:

-Relationship between Organisations and the

Environment (industry, market & competition)

-Provide a vision to integrate the two and design

strategic plan to implement it.

THREE ELEMETS OF THREE ELEMETS OF CHANGECHANGE

2. Change Implementors : Agents and Champions

Responsible For:

The micro dynamics of the day by day change

effort,

internal organizational structure and

coordination of units.

This role is traditionally associated with middle managers

Who manages change in your organisation?

Contd..Contd..

3. Change Recipients: Changees

Their actions or reactions crucially determine success or failure of change.

Their role emerges towards the end of the change process.

Typically, they are not invited to participate in either the conception or implementation of the change.

While there are more recipients however change effort gets confined to upper and middle organizational ranks.

Contd..Contd..

Definition: Change in its broad sense, is planned or unplanned response to pressures and forces. There is no universal agreement on the magnitude, the time frame and the implications of these forces.

One part of the organization might perceive reasons for change while other sections may not.

THE CHALLENGE OF CHANGE

• Different parts of the organisations may drive different forces of change

• One assumption is that there is no margin for error, it has to be managed perfectly the first time round- Project change management.

• The other assumption is that mistakes can be made and accepted as part of managing change, the idea is that you can learn from your mistakes, thus increasing flexibility and long term success.

• Change can be seen as an obstacle or challenge, threats or opportunities – despair or mobilize energy.

WHEN TO CHANGE How do you know when to change? Organisations can

institute a change when : Things are going well- fine tuning Results are mixed- transitional Full fledged crises – transformational

Some argue that change can only be introduced when there is a genuine crises while others believe in manufacturing a sense of crises to create an atmosphere for change.

One thing for certain “when to change” involves an exquisite sense of timing : have we started too soon or too late?

ENABLING CHANGE

How do we enable the change to be effective?

Some key questions before implementation:

Pace: Time frame in which to plan and design the program. At what speed should the program unfold? How much room is there fore trial and error learning? How much time do you have to respond to the Driving forces- customer needs and competitive demands?

Scope: How large or small should be the change? How to carryout action research?

Depth: How far can a large scale change go to ensure maximum impact? how do you deal with resistance ? how much high risk/reward factors are involved?

Publicity:

How loud, how long and how much can the organization publicise? Should it be visible via speeches, banners, news letters, roadshows, to create the hype and excitement and the expectation is that every body will be motivated and committed?

The problem with this approach is that it raises expectations that are high already and leaves itself to criticism with little room for flexible adjustment.

The counter argument is for a quite , understated introduction, that controls resistance, allows for mistakes in learning and moderates expectations.

Supporting Structures:

What mechanisms does the organization have, or put in place, to further the change effort? Some care and nurturing will be needed.

Driving Force:

Who drives the change? Who should initiate the change? What should be the role of the sponsor?

Pace

Publicity

Scope

Depth

SupportingStructures

Drivingforce

EnablingChange

REACTING TO CHANGEHow to deal with resistance to change which includes issues such as:

• inertia, habit and comfort that surrounds the job;

•confusion and the threat of loss of control;

•collective decision to maintain status quo and culture;

•effort to block the organization from understanding the gravity of a problem;

• fear of downsizing, streamlining and restructuring- loss of job;

• There are limits to the stress that organisations can absorb. If reacting to change is not dealt properly, the organization can become saturated and unwilling or unable to integrate new and deeper changes.

Activity and Video

http://www.youtube.com/watch?v=Dg8KNE_NVJM

http://www.youtube.com/watch?v=ak4_Woqzh90

PowerPoint permissionsCengage Learning Australia hereby permits the usage and posting of our copyright controlled PowerPoint slide content for all courses wherein the associated text has been adopted. PowerPoint slides may be placed on course management systems that operate under a controlled environment (accessed restricted to enrolled students, instructors and content administrators). Cengage Learning Australia does not require a copyright clearance form for the usage of PowerPoint slides as outlined above.

CHAPTER 1

Introduction

• After studying this chapter, you should be able to:

– Describe what are Organisation Development (OD) and Organisation Transformation (OT), and explain the similarities and differences

– Explain the relevance of OD and its role within organisations

– Analyse the evolutionary historical context of OD and have an understanding of its future

– Assess the environment of OT and comment on its relevance in today’s change environment

LEARNING OBJECTIVES

32

MANAGING IN A CHANGING ENVIRONMENT

‘For the purposes of sustainability, organisations need to be able to implement both incremental and transformational change.’

(see Kammen, 1999, cited in Waddell, 5e, p.2)

‘[Managing change] requires organisational and management skills to compete in a mature market and develop new products and services.’

(Tushman & O’Reilly, 1996)

33

MANAGING IN A CHANGING ENVIRONMENT

WHAT IS YOUR THEORY OF CHANGE?

• Do you think change moves in a straight line from A to B? Or is it more circular?

• How do you react to change? How does your family react? How did your parents react?

• How do you make sense of Figure 1.1? What are the main elements involved in a process of change?

• Is the management of change necessary? Important?

Talk to your classmates and jot down a few ideas

35

WHAT IS ORGANISATION DEVELOPMENT?

Organisation development is a system wide application of behavioural science knowledge to the planned development and reinforcement of organisational strategies, structures and processes for improving an organisation’s effectiveness.

ORGANISATION DEVELOPMENT: VIEWS FROM THE FIELD

37

Warner Burke (1982)

Organisation development is a planned process ofchange in an organisation’s culture through the

utilisation of behavioural science technology, research and theory.

What does this mean to you?

38

Wendell French (1969)

Organisation development refers to a long-range effort

to improve an organisation’s problem-solving

capabilities and its ability to cope with changes in its

external environment with the help of external or internal

behavioural-scientist consultants, or change agents, as

they are sometimes called.

What does this mean to you?

39

Richard Beckhard (1969)

Organisation development is an effort:

(1) planned, (2) organisation-wide, and (3) managed from the top, to (4) increase organisation effectiveness and health through (5) planned interventions in the organisation’s ‘processes’, using behavioural science knowledge.

Does real change always need to be managed from the top?

40

Michael Beer (1980)Organisation development is a system-wideprocess of data collection, diagnosis, action planning, intervention and evaluation aimed at:

1.Enhancing congruence between organisational structure, process, strategy, people and culture

2.Developing new and creative organisational solutions, and

3.Developing the organisation’s self-renewing capacity

For Beer, OD occurs through the collaboration of organisational members working with a change agent using behavioural science theory, research and technology.

41

Dexter Dunphy & Doug Stace (1994)

Organisation development is a ‘soft’ approach that describes a process of change undertaken in small incremental steps managed participatively.

Is OD always a ‘soft’ process? Does it have to be participative?

42

Warner Burke & David Bradford(2005)

Based on a set of values, largely humanistic, application of the behavioural sciences, and open systems theory, organization development is a system-wide process of planned change aimed toward improving overall organization effectiveness by way of enhanced congruence of such key organization dimensions as external environment, mission, strategy, leadership, culture, structure, information and regard systems, and work policies and procedures.

What are humanistic values? Why are values included here?

43

1. OD applies to an entire system

2. OD is based on behavioural science knowledge and practice

3. OD is oriented to improve an organisation’s effectiveness through processes of adaptive development

4. OD creates change and also reinforces it

5. OD encompasses strategy, structure and process changes

6. OD is oriented towards improving organisational effectiveness

WHAT MAKES OD UNIQUE?

44

THE INTERDEPENDENCY OF CHANGE PROCESSES

45

WHY STUDY ORGANISATIONAL DEVELOPMENT?

The knowledge gained from studying organisation development is playing an increasingly important role in helping organisations change themselves. There are three major trends to which organisations need to understand and respond effectively:

• Globalisation is changing markets and environments

• Information technology is changing work and knowledge

• Managerial innovation is responding to these trends and accelerating their effect on organisations

46

SHORT HISTORY OF OD:FIVE DEVELOPMENTS

47

Origin: T-groupsKurt Lewin’s research: unstructured group in which

participants learn from their own interactions and evolving dynamics about such issues as

interpersonal relations, personal growth, leadership and group dynamics

Now: Team Building

T-group style development expanded into business and industry

LABORATORY TRAINING

48

ACTION RESEARCH/SURVEY FEEDBACK

OriginResearchers John Collier, Kurt Lewin and William Whyte found that research must be closely linked to action to be useful in managing change

NowOD practitioners now use action research cycles and surveys to help gather information about an issue or problem before a change process starts

49

PARTICIPATIVE MANAGEMENTOrigin

Likert found that participative management was the most effective

way to make change happen. He identified four systems:1. Exploitative authoritative systems (autocratic; top-down)

2. Benevolent authoritative systems (paternalistic)

3. Consultative systems (workers involved; management decides)

4. Participative systems (managers and staff involved in all levels of decision making)

NowDebates about levels of staff involvement in managing change

50

PRODUCTIVITY AND QWLOrigin

Eric Trist examined the technical and human sides of organisations and how they interrelate

Aimed at improving productivity AND quality of workers’ lives: an early example of win-win

NowStrongly aligned to TQM developed by Deming and Duran and pioneered by Toyota, Ericsson and Sheraton

51

STRATEGIC CHANGEOrigin

Beckhard was one of the first to use strategic thinking to align both the organisation’s relationship

to its environment and the fit between its technical, political and cultural systems

Now

A competitive OD strategy involves the whole organisation and is multi-levelled: might include finance and marketing, as well as using team building, action research and survey feedback

52

THE EVOLUTION OF ODExpansion of the OD network

Growth in professional societies

Growth in educational programs

New theorists, researchers & practitioners

Gen 1: Argyris, Bennis, Schein, Beckhard & Tannenbaum

Gen 2: Burke, Greiner, Lawler III, Margulies & Raia, Vaill & Lundberg

Wider network of use of OD

A now-international span of organisations using the OD approach, both for business and broader organisational development

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THE LIMIT OF OD? THE RISE OF ORGANISATION TRANSFORMATION

Calls for Organisation Transformation (OT) arise when:

- There is a crisisOT approaches can respond quickly, often perceived as a ‘quick fix’

and observable, which may even receive significant coverage in the media as a result

- Where the environment may be unpredictable and planning would be difficult

- The factors pressing the change are external

OT also calls for a different leadership style than for OD

OT is regarded as more ‘revolutionary’ and OD and more ‘evolutionary’

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• As organisations and their surrounding economy become more complex and uncertain, the scale and intricacy of organisational change has increased

• Organisational change is a fact of life

• Organisation Development has become a significant approach to planning change using behavioural science

• This has been shown to enable organisations to become more effective

• Unpredictable environments, external factors and crises have seen the development of OT as another aspect of organisation responsiveness to change

SUMMARY

BMO6624

Organisational Change Management