1. Organizational Change Principles of Management

2. Boy, you’ll never get me up there! Sometimes change can be hard!

3. Where are Changes Occurring? Major Types of Change:  Technological  Management Styles  Company Structures  Culture/People  World Economy Major Types of Change:  Technological  Management Styles  Company Structures  Culture/People  World Economy

4. Need for Change  Based on external or internal forces.  Performance gap-a disparity between existing and desired performance levels.  Performance gap may occur because: - current procedures are not up to standard. - a new idea or technology could improve current performance.  Based on external or internal forces.  Performance gap-a disparity between existing and desired performance levels.  Performance gap may occur because: - current procedures are not up to standard. - a new idea or technology could improve current performance. Principles of Management

5. Who Brings About Change? Principles of Management

6. Implementing Change May Require  CreativeCulture  Creative Culture  New Venture Teams  Idea Champions

7. Creative People  Open-minded  Originality  Less authority, independence  Persistence  A relaxed and playful attitude  Persistence, focused approach  Open-minded  Originality  Less authority, independence  Persistence  A relaxed and playful attitude  Persistence, focused approach Principles of Management

8. Idea Champion A person who sees the need for and champions productive change within the organization. productive change within the organization. A person who sees the need for and champions productive change within the organization. productive change within the organization. Principles of Management

9. Four Roles in Championing an Idea Inventor ·Develops and understands technical aspects of ideas. ·Does not know how to win support for the idea or make a business of it. Champion ·Believes in idea. ·Visualizes benefits. ·Confronts organization realities of cost, benefits. ·Obtains financial and political support. ·Overcomes obstacles. Sponsor ·High-level manager who removes organizational barriers. ·Approves and protects idea within organization. Critic ·Provides reality test. ·Looks for short- comings. ·Defines hard-nosed criteria that idea must pass.

10. Teams Facilitating Change New venture team:  a unit separate from the rest of the organization.  responsible for developing and initiating a major innovation.  teams are typically small.  loosely structured.  flexible. New venture team:  a unit separate from the rest of the organization.  responsible for developing and initiating a major innovation.  teams are typically small.  loosely structured.  flexible. Principles of Management

11. Model of Change Sequence of Events Environmental Forces Environmental Forces Internal Forces Implement Change Implement Change Initiate Change Initiate Change Strategic Planning Strategic Planning Monitor global competition, customers, competitors, and other factors. Consider plans, goals, company problems, and needs. Evaluate problems and opportunities, define needed changes in technology, products, structure, and culture. Facilitate search, creativity, idea champions, and venture teams. Use force field analysis, tactics for overcoming resistance. Principles of Management

12. Organizational Development Can help managers address: mergers/acquisitionsmergers/acquisitions organizational decline/revitalizationorganizational decline/revitalization conflict managementconflict management Can help managers address: mergers/acquisitionsmergers/acquisitions organizational decline/revitalizationorganizational decline/revitalization conflict managementconflict management Principles of Management

13. OD Activities  Team Building: enhances the cohesiveness and success of organizational groups and teams.  Survey Feedback: begins with a questionnaire distributed to employees on values, climate, participation, leadership, and group cohesion within their organization.  Large-group Intervention: brings together participants from all parts of the organization to discuss problems or opportunities and plan for change.  Team Building: enhances the cohesiveness and success of organizational groups and teams.  Survey Feedback: begins with a questionnaire distributed to employees on values, climate, participation, leadership, and group cohesion within their organization.  Large-group Intervention: brings together participants from all parts of the organization to discuss problems or opportunities and plan for change. Principles of Management

14. Two Types of Planned Change Operational Change  based on efforts to improve basic work and organizational processes. Transformational Change  involves redesign and renewal of the total organization. Principles of Management

15. Using Force Field Analysis to Change from Traditional to JIT Inventory System

16. Resistance to Change  Self-Interest: the fear of personal loss is perhaps the biggest obstacle to organizational change.  Lack of Understanding and Trust: do not understand the intended purpose of a change, or distrust the intentions.  Uncertainty: the lack of information about future events.  Different Assessments and Goals: people who will be affected by innovation may assess the situation differently.  Self-Interest: the fear of personal loss is perhaps the biggest obstacle to organizational change.  Lack of Understanding and Trust: do not understand the intended purpose of a change, or distrust the intentions.  Uncertainty: the lack of information about future events.  Different Assessments and Goals: people who will be affected by innovation may assess the situation differently. Managers and employees often seem to prefer the status quo. Principles of Management

17. Three Distinct Steps for Achieving Behavioral and Attitudinal Change Unfreezing: diagnosis stagediagnosis stage participants are made aware of problems in order to increase their willingness to change their behaviorparticipants are made aware of problems in order to increase their willingness to change their behavior Changing: intervention stageintervention stage individuals experiment with new workplace behaviorindividuals experiment with new workplace behavior Re-freezing: reinforcement stagereinforcement stage individuals acquire a desired new skill or attitude and are rewarded for it by the organizationindividuals acquire a desired new skill or attitude and are rewarded for it by the organization Unfreezing: diagnosis stagediagnosis stage participants are made aware of problems in order to increase their willingness to change their behaviorparticipants are made aware of problems in order to increase their willingness to change their behavior Changing: intervention stageintervention stage individuals experiment with new workplace behaviorindividuals experiment with new workplace behavior Re-freezing: reinforcement stagereinforcement stage individuals acquire a desired new skill or attitude and are rewarded for it by the organizationindividuals acquire a desired new skill or attitude and are rewarded for it by the organization