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Organizational Change

Presentation
Organizational Behavior

• Group Members:

1. M Mujtaba
2. Ahsan Nadeem
3. Shahab Murtaza
4. Zuhair Nasir
Forces For Change
➢ Nature of the Workforce
– More cultural diversity , increased immigeration and outsourcing,
➢ Technology
– Faster, cheaper, more mobile computers
and handheld devices
➢ Economic Shocks
– Financial sector collapse, recession
➢ Competition
– Global marketplace , mergers,
➢ Social Trends
– Environmental awareness and liberalization
of attitudes, Education, Needs etc.
➢ World Politics
– USSR,SOCIALIST
Planned Change
•Change
• – Making things different
➢ Planned Change
– An intentional, goal-oriented activity
– Goals of planned change
• Improving the ability of the organization to adapt to changes in its
environment
• Changing employee behavior
– Change Agents
• Persons who act as catalysts and assume the responsibility for
managing change activities
Resistance to Change
• Resistance to change appears to be a natural and
positive reaction to change.

•Forms of Resistance to Change:


– Overt(open) and Immediate
• Voicing complaints, engaging in job actions
– Implicit(not directly) and Deferred(postpone)
• Loss of employee loyalty and motivation, increased errors or
mistakes, increased absenteeism
• Deferred resistance clouds the link between source and
reaction
Overcoming Resistance to Change
➢ Education and Communication
– Show those effected the logic behind the change
➢ Participation
– Participation in the decision process lessens resistance
➢ Building Support and Commitment
– Counseling, therapy, or new-skills training
➢ Implementing Change Fairly
– Be consistent and procedurally fair
➢ Manipulation and Cooptation
– “Spinning” the message to gain cooperation
➢ Selecting people who accept change
– Hire people who enjoy change in the first place
➢ Coercion
– Direct threats and force
The Politics of Change

➢Impetus(The force or energy) for change is


likely to come from external change agents,
new employees, or managers outside the main
power structure.
➢Internal change agents are most threatened by
their loss of status in the organization.
➢Long-time power holders tend to implement
incremental but not radical change.
➢The outcomes of power struggles in the
organization will determine the speed and quality
of change.
Lewin’s Three-Step Change Model
➢ Unfreezing
– Change efforts to overcome the pressures of both individual
resistance and group conformity by increasing the driving
force and decreasing the restraining force
➢ Moving
– Moving from the status quo to the desired end state
➢ Refreezing
– Stabilizing a change intervention by balancing driving and
restraining forces
Lewin: Unfreezing the Status Quo
➢ Driving Forces
– Forces that direct behavior away from the status quo
➢ Restraining Forces
– Forces that hinder movement from the existing equilibrium
Kotter’s Eight-Step Plan
➢A detailed approach to implementing change that is built
on Lewin’s three-step model

➢To implement change:

1. Establish a sense of urgency


2. Form a coalition (of people)
3. Create a new vision
4. Communicate the vision
5. Empower(authority) others by removing barriers
6. Create and reward short-term “wins”
7. Consolidate(The merger of two or more ), reassess, and adjust
8. Reinforce the changes
Action Research
• A change process based on systematic collection of data
and then selection of a change action based on what the
analyzed data indicates
➢ Process steps:
1. Diagnosis
2. Analysis
3. Feedback
4. Action
5. Evaluation
➢ Action research benefits:
– Problem-focused rather than solution-centered
– Heavy employee involvement reduces resistance to
change
Organizational Development
➢ Organizational Development (OD)
– A collection of planned interventions, built on humanistic-
democratic values, that seeks to improve organizational
effectiveness and employee well-being
➢ OD Values
– Respect for people
– Trust and support
– Power equalization
– Confrontation
– Participation
Six OD Techniques
1. Sensitivity Training
– Training groups (T-groups) seek to change behavior through
unstructured group interaction
– Provides increased awareness of others and self
– Increases empathy with others, listening skills, openness, and
tolerance for others
2. Survey Feedback Approach
• – The use of questionnaires to identify discrepancies among
member perceptions; a discussion follows and remedies are
suggested
3. Process Consultation (PC)
• – A consultant gives a client insights into what is going on
around the client, within the client, and between the client and
other people; identifies processes that need improvement.
Six OD Techniques
4. Team Building
– High interaction among team members to increase trust and
openness
5. Intergroup Development
– OD efforts to change the attitudes, stereotypes, and
perceptions that groups have of each other
6. Appreciative Inquiry
– Instead of looking for problems to fix, appreciative inquiry
seeks to identify the unique qualities and special strengths of
an organization, which employees can then build on to
improve performance. This process comprises of four steps:
• Discovery: Recalling the strengths of the organization
• Dreaming: Speculation on the future of the organization
• Design: Finding a common vision
• Destiny: Deciding how to fulfill the dream
Creating a Culture for Change:
Innovation
1. Stimulating a Culture of Innovation
– Innovation: a new idea applied to initiating or improving a
product, process, or service

– Sources of Innovation:
• Structural variables: organic structures
• Long managerial tenure
• Slack resources
• High degree of interunit communication

– Idea Champions: Individuals who actively promote the


innovation
Creating a Culture for Change:
Learning
2. Learning Organization
– An organization that has developed the continuous capacity
to adapt and change
– Characteristics
• Holds a shared vision
• Discards old ways of thinking
• Views organization as a system of relationships
• Communicates openly
• Works together to achieve shared vision
Creating a Learning Organization
➢ Overcomes traditional organization problems such as:
– Fragmentation
– Competition
– Reactiveness

➢ Manage Learning by:


– Establishing a strategy
– Redesigning the organization’s structure
• Flatten structure and increase cross-functional activities
– Reshaping the organization’s culture
• Reward risk-taking and intelligent mistakes

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