MGT100 Organization and Management Topic XII

Organizational Change

• – – – Content – Categories of change – Forces for change Change process Resistance to change Making changes in the organization 2

Categories of change

• • Definition of change Categories of change – Structure – – Technology People 3

What is Change?

• • • Organisational change – Any alterations in the people, structure, or technology of an organisation Characteristics of change – Is constant yet varies in degree and direction – – Produces uncertainty yet is not completely unpredictable Creates both threats and opportunities

Managing change is an integral part of every manager’s job

4

Forces for change

• • • External forces Internal forces Manager as a change agent 5

Forces for Change

• – – – External forces – Marketplace – Governmental laws and regulations Technology Labor market Economic changes • Internal forces – – – Changes in organisational strategy Workforce changes New equipment – Employee attitudes 6

The Manager as Change Agent • • Change agents – People who act as catalysts and assume the responsibility for changing process are called change agents.

Types of change agents – Managers: internal entrepreneurs – – Non-managers: change specialists Outside consultants: change implementation experts 7

Making changes in the organization • • • Planned changes Organization development Organization development techniques – Survey feedback – – – Process consultation Team-building Intergroup development 8

Change process

• • • “Calm Water” metaphor “White-Water Rapids” metaphor Handle change 9

Change Process Viewpoints

• • The calm waters metaphor – Lewin’s description of the change process as a break in the organisation’s equilibrium state • Unfreezing the status quo • • Changing to a new state Refreezing to make the change permanent White-water rapids metaphor – The lack of environmental stability and predictability requires that managers and organisations continually adapt (manage change actively) to survive 10

The Change Process 11

Managing Change

Three categories of change

12

Organisational Development Techniques 13

Resistance to change

• Reason to resist change Fear of the unknown Fear of losing something of value Individual resistance Belief that Change is not good for the organization • Techniques for reducing resistance 14

Managing Resistance to Change

• Why do people resist change?

– – – – The ambiguity and uncertainty that change introduces The comfort of old habits A concern over personal loss of status, money, authority, friendships, and personal convenience The perception that change is incompatible with the goals and interest of the organisation 15

Using Force Field Analysis • • • • • Kurt Lewin proposed that two sets of forces operate in any system.

Driving forces (encourage change) Resisting forces (discourage change) Equilibrium is when the forces are balanced against each other.

To make change managers may need to maximise driving forces and minimise resisting forces. 16

      Techniques to reduce resistance to change

Education and communication Participation Facilitation and support Negotiation Manipulation and co-optation Coercion

17

Contemporary issues in managing change • Changing organisational cultures – Cultures are naturally resistant to change.

– Conditions that facilitate cultural change: • The occurrence of a dramatic crisis • • • Leadership changing hands A young, flexible, and small organisation A weak organisational culture 18

How can cultural change be accomplished?

• • • • • Make it clear to employees that the organisation’s forthcoming.

Appoint new leadership with a new vision.

Initiate a reorganisation.

Introduce new stories and rituals to convey the new vision.

• 19

Managing the downsized workplace

Managing the downsized workplace Open and honest communication Assistance to ‘downsized’ workers Help for survivors of downsizing

20

Handling employee stress

• What is stress?

–

Stress

• The physical and psychological tension an individual feels when confronted with extraordinary demands, constraints, or opportunities and their associated importance and uncertainties.

• Functional Stress – Stress that has a positive effect on performance.

–

How potential stress becomes actual stress

• When there is uncertainty over the outcome.

• When the outcome is important.

21

Causes of stress 22

Symptoms of stress 23

Issues in managing change

• – – – – – Reducing stress – Engage in proper employee selection – – – Match employees’ KSA’s to jobs’ TDR’s Use realistic job interviews for reduce Improve organisational communications Develop a performance planning program Use job redesign Provide a counseling program Offer time planning management assistance Sponsor wellness programs 24

Issues in managing change

• Making change happen successfully – Embrace change—become a change – – – capable organisation.

Create a simple, compelling message explaining why change is necessary.

Communicate constantly and honestly.

– – possible—get all employees committed.

Encourage employees to be flexible.

25

Characteristics of change capable organisations • • •

Link the present and the future.

Make learning a way of life.

Actively support and encourage day-to-day improvements and changes.

• • • • •

Ensure diverse teams.

Encourage mavericks.

Shelter breakthroughs Integrate technology.

Build and deepen trust.

26

Stimulating innovation

• • Creativity – The ability to combine ideas in a unique way or to make an unusual association.

Innovation – Turning the outcomes of the creative process into useful products, services, or work methods 27

Systems view of innovation

28

Innovation variables

29

Stimulating and nurturing innovation • Structural variables – Adopt an organic structure – Make available plentiful resources – – – Engage in frequent inter-unit communication Minimize extreme time pressures on creative activities Provide explicit support for creativity 30

• Stimulating and nurturing

innovation (cont’d)

Cultural variables – Accept ambiguity – – – – – – – Tolerate the impractical Have low external controls Tolerate risk taking Tolerate conflict Focus on ends rather than means Develop an open-system focus Provide positive feedback 31

Stimulating and nurturing

innovation (cont’d)

• Human resource variables – Actively promote training and development to keep employees’ skills current.

– – Offer high job security to encourage risk taking.

Encourage individual to be “champions” of change.

32