Organizational Development

Organizational Change & Culture

WHAT IS CHANGE?
Change is concerned with making things different. The coping process of moving from present state to the desired state that individual, groups and organisation undertake in response to dynamic internal & external factors.
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Environmental Factors Causing Changes

The Impact of Globalization The Impact of IT Revolution Changing Nature of the Work Force

Globalization
Org. move beyond domestic market boundaries Adopt & transform organizations to accept new cultures, to create new structures

IT Revolution
E-era/ internet culture New org. culture, virtual teams

Environmental Factors Causing Changes

Workforce Diversity
Young organizations. Employees seek quality of work life Higher expectations from both the sides 5

Motivating Change Creating a readiness for change among employees Overcoming resistance to change

Creating a shared vision Enriching commitment Describing a desired future state

Developing political support for the needed changes Assessing change-agent power Identify & Influencing stakeholders Managing transition from the current state to the desired future state Activity Planning Commitment Planning Management structure Sustaining momentum for Change Providing resources for change Building a support system for change agent Developing new competencies & skills Reinforcing new behaviors

Effective Change Management

People

Culture

Task

Technology

Design

Strategy

System Model of Change

System Model of Change

The People Variable: Individuals working with the organization (their personality, attitudes, perceptions , attributes etc. ) The Culture Variable: Reflection of shared beliefs, values, expectations and norm of organizational members. The Task Variable: Nature of the work (Simple/complex/ novel/repetitive etc.)
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System Model of Change

The Technology Variable: Problem solving methods and techniques used and the application of knowledge to the various organizational process. The Design Variable: Organizational Design pattern The Strategy Variable: Organizations planning & decision making process with specific reference to the actives undertaken to identify organizational goals and , prepare specific plans to acquire, allocate , and use resources in order to accomplish those goals.
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Formula for change

DxVxF>R
D V Dissatisfaction with how things are now Vision of what is possible

F
R

First, concrete steps that can be taken towards the vision.

Resistance for Change

If the product of these three factors is greater than R , then change is possible. Because of the multiplication of D, V and F, if any one is absent or low, then the product will be low and therefore not capable of overcoming the resistance.
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Models To Manage Change

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Kurt Lewins Change Manage Model

1. Unfreezing 2. Change 3. Refreezing

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Change Management Process A Structured Approach

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Resistance to change
Reasons
1. Economic reasons 2. Personal reasons 3. Social reasons
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How to overcome resistance

Increasing the strength of pressure for change. Reducing the strength of the resisting forces or removes them from scene. Modify the direction of a force.
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Communication strategy for change

A communications strategy should coincide with the general stages of a planned change and the relevant associated information requirements. The Kurt Lewin model incorporating three general stages of change: unfreezing, changing or moving, and refreezing.
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Communication during unfreezing stage

1. Readying the organization for change 2. Challenging the status quo 3. Providing a rationale 4. Focusing on communication principles
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Communication during Changing stage

1. Dealing with uncertainty

2. Focusing on specifics
3. Reporting the progress

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Communication during Refreezing stage

1. Building understanding

2. Understanding personal implication for change

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Managerial implications
1. Communication must come from top 2. Devise a communication system 3. Monitor & evaluate system 4. Be open & honest all the times 5. Combine written & face to face communication 6. Be relevant
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Implementation is the institutionalization and internalisation of a change after it has been accepted by an organization.
The implementation process should start with planning. The three important stages of implementation of change process are:

Monitoring the change Taking action in relation to the change Making necessary adjustment in the program accepted for implementation.
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Organizational Diagnosis for Change

The starting point of a planned organizational change is an accurate diagnosis of the organizational problem & functioning. Organization diagnosis involves following four basic steps Recognition & interpretation of the organizational problem & then asses the need for change. Determine the organizations readiness & capability for change. Identify managerial & employees resources and motivations for change. Determine the new or change goals and change strategy.
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Managing Change

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STEPS IN ORGANISATION DIAGONOSIS FOR CHANGE

MANAGING PLANNED CHANGES CHANGING PEOPLE BEHAVIOUR CHANGING TASK & TECHNOLOGY CHANGING ORGANISATION CULTURE CHANGING ORGANISATION DESIGN

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Managing Planned Changes

CHANGES
FIRST ORDER CHANGE SECOND ORDER CHANGE

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First Order Change

when the new state of thing have the same basic nature as the old state of thing, except for some moderate adjustments to the existing structure of the organization, the change is known as incremental or first order change. In this type of change only minor adjustments are made to few processes in the organization; major changes are not made. First order changes are easily reversible. The best example of first order change can be seen in Toyota and other Japanese companies. They adopted this type of change to improve their production process and organizational efficiency.
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Second Order change

When the new state of thing have a completely different nature from the old state of things it is known as fundamental or, quantum or second order change. This change is initiated when the organization needs to be restructured and the fundamental nature of the organization is being changed. Thus, the restructured organization differs completely from the old fundamental structure of the organization. Second order change is revolutionary in nature and involves a major reinvention of the organization. Second order change is generally irreversible and it is impossible to return back to the previous state once the change process is complete.
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Changing People Behavior

METHODS SURVEY FEEDBACK PROCESS CONSULTATION

TEAM BUILDING

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Survey Feedback
In this approach information is collected trough a questionnaire obtained by the members of an organization, department or team. The information so collected is organized in to understandable and useful form and fed back to the employees who provide it. All such information can be used by employees for planning action on how to deal with specific issues and problems. Benefits of the survey feedback method
This approach can be used to as a diagnostic tool to identify team, department and organizational problem and will also be useful if used along with other approaches and techniques to work out large scale, long term change programmes. This approach helps in improving relationship among team members or between departments through a discussion of the common problems.
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Team Building
The members of the team diagnose how they work together and plan changes to improve their effectiveness. The team building starts with the team members recognizing a problem in-group functioning identify the barrier and design and take actions to remove them. The team building process will contribute information personally. The member also gather information using interview or questionnaire method, analyze the information and diagnose the problem with members planning specific actions and assigning individual to implement them. At some later stage, team member may evaluate their plans and progress to determine whether their actions can solve the problem identified
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Process Consultation
During process consultation, guidance is provided by a consultant in order to help member perceive, understand and act on process events that occur in the work environment. Process events refers to the way in which employees do their work and also include all formal or informal behavior of individuals while performing a task. Process consultation involves the use of skilled third party or facilitator who may either be an outsider to the organization or a member of the organization itself.
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Quality of work life Program

These are the activities undertaken to improve employees working condition. Typically QWL programmes focus on security, safety, and health, participation in decision-making. Opportunities to use and develop competencies create meaningful work. Opportunities for satisfying social needs, and so on. Moreover, firms use QWL programmes to increase productivity and output through greater involvement and participation by employees in decision-making process affecting their jobs.
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Changing Task & Technology

METHODS JOB DESIGN SOCIO-TECH SYSTEM QUALITY CIRCLES

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Changing Task & Technology

Job redesign: As an approach to change, a job design involves a deliberate, planned restructuring of the way work is performed so as to bring about increased employees motivation, involvement and efficiency, this all is done in order to improve job performance. b) Socio-technical system (STS): STS simultaneously analyze and focus on the technical and social aspect of the organization to optimize their relationship and thus increase organizational effectiveness. Under this approach the organization, on the one hand is viewed as a technical system for making products and providing services, while on the other hand the organization is also a social system, comprising of human beings. Hence, managing organizational change effectively means dealing with both the social and technical aspects of the change.
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Changing Task & Technology

Quality circles: Quality circles consist of work group with some volunteers from the same work area who regularly meet to monitor and solve job related quality or production problems. This concept of quality circles originated from Japan but its use has spread to many countries across the world. Quality circles are being used to improve working conditions, increase the level of employee involvement and commitment and encourage employee self-development. d) Re-engineering: This can be referred to as a fundamental rethinking and radical redesign of business processes to reduce costs and improve quality service and speed. Re-engineering begins with no assumptions and asking fundamental questions such as Why does the organization do the work in the way that it is doing it? Why does the organization do what it does? Total Quality Management (TQM): It refers to the organizational activities and processes designed and carried out to meet or exceed customer requirement while reducing both the time and cost involved in providing them. TQM is evolved around the concept of continuous improvement.
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Changing Organization Design

METHODS COLLATERAL MATRIX NETWORK

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Changing Organizational Design

When organizations start growing and becoming increasingly complex, the management has to cope with these constant changes by being more flexible and adaptive with its hierarchy system and standardized procedures. We will examine three such organizational designs, which are flexible and adaptive: collateral organization, matrix organization and network organization. a) Collateral Organization A collateral organization is a parallel, co-existing organization that can be used to supplement an existing formal organization. The collateral organization utilizes teams of people outside the normal formal channels of communication like ways of working together, with identified authority in making decisions and solving difficult problems. All this collateral functioning is done with the existing people (or employees) in the formal organization i.e. , it co-exists with it. Open and free flow of communication between mangers and employees is one of the main feature of collator organization.
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Changing Organizational Design

Matrix Organization Network organizationsNetwork organizations combine some of the features of matrix and collateral organizations although they place more emphasis on sophisticated information technologies to perform work and coordinate activities. Managers in a network organization need to work with temporary teams of employees (who bring their expertise to work on the projects). Moreover, the collaborative behaviors and attitudes are typical to the high performance high commitment work systems Thus, organizations attempt ion strategic change programmes need to go for strategic planned programme, which includes assessment and redefinition of the goals themselves.

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Changing Organization Culture

Trying to bring about a change in the organizational culture is a very challenging task because it further, requires assessing accurately the organizations existing culture before planning the change may be difficult to change. It will be possible to experience success at attempts of bringing organizational changes if due attention is paid to the following issues: Take advantage of opportunities that suggest organizational change. While going for organizational changes, managers and employees must Combine caution with optimism. While administering change, try to retain the core cultural values that have served well. Adopt changing socialization processes to bring about effective cultural changes
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Goals of Cultural Change Programs

Delegation to persons with the appropriate competencies to perform the task. Provide opportunities and empowering people so as to facilitate easy acceptance and provide the necessary responsibility to perform their job

Go for proper integration of people and technology to usher high performance and high commitment from employees.
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RESISTANCE TO CHANGE
A) INDIVIDUAL HABIT SECURITY ECONOMIC FACTORS FEAR OF UNKNOWN SOCIAL FACTOR B) ORGANISATION STRUCTURAL INERTIA LIMITED FOCUS OF CHANGE GROUP INERTIA THREAT TO EXPERTISE
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HOW TO OVERCOME RESISTANCE TO CHANGE?

EDUCATING EMPLOYEES EMPLOYEE INVOVLEMENT FACILITATION NEGOTIATION MANIPULATION & CO-OPTATION COERCION

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Organizational Climate & Culture

A set of attribute specific to a particular organization that may be induced from the way that organization deals with its members and its environment. For the individual members within the organization, climate takes the form of a set of attitudes and expectations which describe the organization in terms of both static characteristics ( such as degree of autonomy) and behavior outcome and outcome-outcome contingencies.
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Organizational Culture
Organizational Culture is a set of assumptions, beliefs, values, and norms that are shared by an organizations members Internally oriented characteristics beliefs, values, attitudes, feelings , personality types etc. Externally oriented characteristics like products, buildings ,dresses etc..
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Organization Development

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Organization Development
Organizational Development is a systematic process for applying behavioral science principles and practices in organizations to increase individual and organizational effectiveness. Organizational Development, wherever implemented, attempts to improve the overall effectiveness of the individual and the organization. Today, many people still regard it as new. Neither then nor now is OD new. In fact, some organizations have been engaged in OD activities for longer than you and I have been around.

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The End
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