HRM 601 Organizational Behavior Session 14 Organizational Change & Development

The Need for Change in Organizations Change as a survival tactic -- if the organization does not keep pace the changing technology, consumer demands, and effective business processes, they will lose their competitive edge.

The Learning Organization Organizations that acquiring and applying knowledge to help cope with and adapt to change. Knowledge acquisition Information distribution Information interpretation Organizational memorization

Planned Change Changes in products or services Changes in size or structure Changes in administrative structures Changes in technology

Unplanned Change Government regulation Economic competition Performance Gaps

Areas of Organizational Change Goals and strategies Technology Job design Structure Processes People

The Change Process Unfreezing (Facing the Problem) Moving (Creating a New State) Refreezing (Maintaining the Change Status Quo New State

Individual Barriers to Change Economic fears Fear of the unknown Fear of social disruptions Effort Fear of loss of power and autonomy Commitment to the old position

Organizational Barriers to Change Structural inertia Work group norms Threat to existing balance of power History of change efforts gone wrong Boards of Directors

Overcoming Resistance to Change Informing about pressures for change Pointing out discrepancies between current state and desired one Convey positive expectations for change

What is Organizational Development? It is the application of social science techniques to plan change in organizational settings for the purpose of enhancing organizational effectiveness and the development of individuals.

Underlying Values Concept of people Concern for science Democratic principles The helping relationship

Potential Conflicts with OD Conflict with profit making Conflict with managerial prerogatives

Organizational Level Diagnosis Inputs General Environment Industry Structure Transformation Strategy Design Factors Culture Outputs Performance Productivity Satisfaction

Group Level Diagnosis Inputs Organization Design Factors Culture Strategy Transformation Group Design Factors Outputs Team Effectiveness Productivity, Satisfaction

Individual Level Diagnosis Inputs Group Design Factors Personal Characterist- ics Transformation Job Design Factors Outputs Individual Effectiveness Productivity, Satisfaction

After Diagnosis Feeding back the information Choosing interventions Managing change Institutionalizing change

Team Building Improved group processes Communication Goal clarification Role clarification Task orientation

Survey Feedback Small meetings to feedback survey results Meetings used to formulate change Managers conduct meetings to indicate commitment

Employee Involvement Quality of worklife Quality circles Total quality management

Re-Engineering Job redesign Teamwork Work performed by most appropriate person Advanced information technologies used

OD Effectiveness More impact on organizational than individual outcomes Works better for white collars than blue collars Works better if multiple techniques are used Technological change shows more positive outcomes

Measurement Problems Difficult to isolate cause of outcomes since OD efforts often involve multiple changes May be the result of Hawthorne effects Change may be due to maturation or passage of time and not intervention

Ethical Issues The role of the OD practitioner Who’s values

Continuing Issues Importance of learning and knowledge Impact of technology Managing the remote work force