Organisational Change
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This document discusses organizational change and models for managing change. It presents two models of the change process: the Growth Curve Model and Lewin's unfreezing-changing-refreezing model. Reasons for resistance to change are described as well as methods for dealing with resistance like education, participation, and negotiation. Organizational development is presented as a change strategy using interventions at the individual, small group, and organizational levels. Large-scale change and total quality management are also summarized.
Organisational Change
- 1. Organisational Change Dr Dorota Joanna BourneDr Dorota Joanna Bourne
- 2. Learning Objectives 1. Present two models of the change process in organisations: the Growth Curve Model and the unfreezing-changing-refreezing model .model . 2. Describe why people resist change and how to manage such resistance. 3. Explain the nature of organisational development.
- 3. Managing Change Types of change in organisations: Changes in technology Changes in organisational structureChanges in organisational structure Coworkers and customers
- 4. The Growth Curve Model of Organisational Change
- 5. The Change Process (Kurt Lewin) Unfreezing Changing Refreezing
- 6. Why People Resist Change Resistance comes from: Fear of a unfavourable outcome (e.g., less money, personal inconvenience, more work) Disrupted social relationships at work Not wanting to break with well-established habits A general fear of the unknown and uncertainty Fear that an unrecognised weakness in the proposed change will result in unfavourable outcome.
- 7. Methods for Dealing with Resistance to Change Education and communication Participation and involvement Facilitation and support Negotiation and agreement
- 8. Three Major Factors that Create Organisational Change ManagementManagement InitiativesInitiatives Changes inChanges in TechnologyTechnology New WorkNew Work ProcessesProcesses OrganisationalOrganisational ChangeChange
- 9. Downsizing and Restructuring Primary reason for downsizing: Reductions in the size of the firm to lower costs and allow the firm to become more competitive.competitive. Dangers in downsizing: Inability to capitalise on post-restructuring opportunities due to understaffing. Loss of critical human assets reduces organisational learning.
- 10. The Costs of Downsizing Massive layoffs can backfire after taking into account: Rehiring costs Companies that avoid downsizing say they get: A fiercely loyal, more productive workforceRehiring costs Loss of institutional memory and trust in management Lack of staff when the economy rebounds Survivors who are risk averse, paranoid, and political Higher customer satisfaction Readiness to snap back with the economy A recruiting edge Workers who aren’t afraid to innovate, knowing that their jobs are safe
- 11. Keys to Successful Restructuring Integrate downsizing with long-term strategies. Identify and protect high-potential employees.Identify and protect high-potential employees. Decentralise and empower employees. Eliminate low-value and non-value activities. Emphasise teamwork and cooperation. Support and train, then evaluate and reward performance.
- 12. Organisational Development as a Change Strategy Organisational Development (OD) Is any strategy, method, or technique for making organisations more effectivefor making organisations more effective by bringing about constructive, planned change.
- 13. Organisational Development Interventions Individual Level Executive (or business) coaching Employee assistance programs (EAPs) Career development programs Organizational behavior modification (OB Mod) Small-Group Level Team development Cultural diversity training Modified work schedules Creativity training Intergroup conflict resolution Job enrichment Wellness programs (stress reduction) Bullying/ harassment avoidance training Intergroup conflict resolution Quality improvement teams Self-managing teams Organisation Level Survey feedback (attitude surveys) Action research (employees participate in implementing changes identified by a consultant) Implementing organisation learning Knowledge management
- 14. Large-Scale Organisational Change Signs of the need for large-scale change: Top executives micromanaging instead of delegating A high turnover rate of employeesA high turnover rate of employees Ineffective communication in the organisation. A compensation system that rewards people for actions unrelated to business success Loss of established business and failure to acquire new business
- 15. Total Quality Management (TQM) A management system for improving performance throughout a firm by: Maximizing customer satisfactionMaximizing customer satisfaction Making continuous improvements Relying heavily on employee involvement
- 16. Total Quality Management (TQM) TQM is a fundamental change in an organisation’s culture to one that includes: A focus on the customerA focus on the customer An environment of trust and openness Formation of work teams Breaking down internal barriers Sharing power