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    C H A P T E R: Organizational Change and Development

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    C H A P T E R: Organizational Change and Development

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    organizational change..

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    organizational change..

    Copyright:

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    Download as pdf or txt
    21 views23 pages

    C H A P T E R: Organizational Change and Development

    Uploaded by

    ruchu
    organizational change..

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 23

    C H A P T E R

    15
    F I F T E E N

    Organizational Change
    and Development
    McGraw-Hill Ryerson 1 The McGraw-Hill Companies, Inc. 2001
    Continuous Change at Nokia
    Nokia has
    continually
    adapted to its
    changing
    environment. The
    Finnish company
    began as a pulp
    and paper mill in
    Courtesy National Board of Antiquities, Finland
    1865, then moved
    into rubber, cable wiring, and computer monitors. In
    the 1980s, Nokia executives sensed an emerging
    market for wireless communication. Today, Nokia is a
    world leader in cellular telephones.

    McGraw-Hill Ryerson 2 The McGraw-Hill Companies, Inc. 2001


    Some External Forces for Change

    Information
    Technology

    Globalization
    & Competition
    Courtesy National Board of Antiquities, Finland

    Demography

    McGraw-Hill Ryerson 3 The McGraw-Hill Companies, Inc. 2001


    Force Field Analysis

    Restraining
    Desired Forces
    Conditions

    Restraining
    Forces Driving
    Forces
    Restraining
    Forces
    Current Driving
    Conditions Forces
    Driving
    Forces

    Before During After


    Change Change Change
    McGraw-Hill Ryerson 4 The McGraw-Hill Companies, Inc. 2001
    Resistance to Change at BP Norge
    Employees initially resisted self-
    directed teams BP Norges North
    Sea drilling rigs.

    SDWTs dont work on drilling rigs!


    We already have teams!
    This creates more work -- will we
    get higher pay?
    I dont know how to work in teams.
    SDWTs will threaten my job as a
    supervisor! AP Worldwide

    McGraw-Hill Ryerson 5 The McGraw-Hill Companies, Inc. 2001


    Resistance to Change

    Direct Costs

    Saving Face

    Fear of the Unknown


    Forces for
    Change Breaking Routines

    Incongruent Systems

    Incongruent Team Dynamics

    McGraw-Hill Ryerson 6 The McGraw-Hill Companies, Inc. 2001


    Creating an Urgency for Change

    Need to motivate employees to change


    Most difficult when organisation is doing
    well
    Must be real, not contrived
    Customer-driven change
    Adverse consequences for firm
    Human element energizes employees

    McGraw-Hill Ryerson 7 The McGraw-Hill Companies, Inc. 2001


    Minimizing Resistance to Change

    Communication

    Coercion Training
    Minimizing
    Resistance
    Negotiation
    to Change Employee
    Involvement

    Stress
    Management

    McGraw-Hill Ryerson 8 The McGraw-Hill Companies, Inc. 2001


    Refreezing the Desired Conditions

    Creating organizational systems and team


    dynamics to reinforce desired changes
    alter rewards to reinforce new behaviours
    new information systems guide new
    behaviours
    recalibrate and introduce feedback systems
    to focus on new priorities

    McGraw-Hill Ryerson 9 The McGraw-Hill Companies, Inc. 2001


    Strategic Vision & Change at CHC

    CHC Helicopter Corp.s four


    strategic principles have helped
    its employees adapt to rapid
    growth at the St. Johns, Nfld.
    firm. These principles include
    safety first, quality service,
    teamwork, and profitable
    Courtesy of CHC Helicopter Corp. growth.

    McGraw-Hill Ryerson 10 The McGraw-Hill Companies, Inc. 2001


    Change Agents

    Anyone who possesses


    enough knowledge and
    power to guide and facilitate
    the change effort
    Change agents apply
    transformational leadership
    Help develop a vision
    Communicate the vision
    Act consistently with the vision
    Courtesy of CHC Helicopter Corp. Build commitment to the vision

    McGraw-Hill Ryerson 11 The McGraw-Hill Companies, Inc. 2001


    Successfully Diffusing Change

    Successful pilot study


    Favourable publicity
    Top management support
    Labour union involvement
    Diffusion strategy
    described well
    Pilot program people
    Courtesy of CHC Helicopter Corp.
    moved around

    McGraw-Hill Ryerson 12 The McGraw-Hill Companies, Inc. 2001


    Organization Development Defined

    A planned system wide effort, managed


    from the top with the assistance of a
    change agent, that uses behavioural
    science knowledge to improve
    organizational effectiveness.

    McGraw-Hill Ryerson 13 The McGraw-Hill Companies, Inc. 2001


    Action Research Process

    Establish
    Client-
    Consultant
    Relations

    Diagnose Evaluate/
    Introduce
    Need for Stabilize
    Change
    Change Change

    Disengage
    Consultants
    Services

    McGraw-Hill Ryerson 14 The McGraw-Hill Companies, Inc. 2001


    Parallel Structures
    Parallel
    Organization
    Structure

    McGraw-Hill Ryerson 15 The McGraw-Hill Companies, Inc. 2001


    Appreciative Inquiry Process

    Discovery Dreaming Designing Delivering

    Forming Engaging in Developing


    Discovering
    ideas about dialogue objectives
    the best of
    what might about what about what
    what is
    be should be will be

    McGraw-Hill Ryerson 16 The McGraw-Hill Companies, Inc. 2001


    Organization Development Concerns

    Cross-Cultural Concerns
    Linear and open conflict assumptions
    different from values in some cultures

    Ethical Concerns
    Management power
    Employee privacy rights
    Employee self-esteem
    Consultants role

    McGraw-Hill Ryerson 17 The McGraw-Hill Companies, Inc. 2001


    C H A P T E R

    15
    F I F T E E N

    Organizational Change
    and Development
    McGraw-Hill Ryerson 18 The McGraw-Hill Companies, Inc. 2001
    Discussion of Activity 15.3
    Strategic Change Management

    McGraw-Hill Ryerson 19 The McGraw-Hill Companies, Inc. 2001


    Scenario #1: Greener Telco
    Telco

    Scenario #1 refers to Bell


    Canadas Zero Waste
    program, which
    successfully changed
    wasteful employee
    behaviours by altering the
    causes of those
    behaviours. Courtesy of Bell Canada

    McGraw-Hill Ryerson 20 The McGraw-Hill Companies, Inc. 2001


    Bell Canadas Change Strategy
    Relied on the MARS
    model to alter behaviour:
    Motivation -- employee
    involvement, respected steering
    committee
    Ability -- taught paper
    reduction, email, food disposal
    Role perc. -- communicated
    importance of reducing waste
    Situation -- Created barriers to Courtesy of Bell Canada

    wasteful behaviour, eg.


    removed garbage bins

    McGraw-Hill Ryerson 21 The McGraw-Hill Companies, Inc. 2001


    Scenario #2: Go Forward Airline

    Scenario #2 refers to
    Continental Airlines Go
    Forward change strategy,
    which catapulted the
    company from worst to
    first within a couple of
    years.
    Courtesy of Continental Airlines

    McGraw-Hill Ryerson 22 The McGraw-Hill Companies, Inc. 2001


    Continental Airlines Change Strategy

    ! Communicate, communicate,
    communicate
    ! Introduced 15 performance
    measures
    ! Established stretch goals
    (repainting planes in 6 months)
    ! Replaced 50 of 61 executives
    ! Rewarded new goals (on-time
    arrival, stock price)
    Courtesy of Continental Airlines
    ! Customers as drivers of change

    McGraw-Hill Ryerson 23 The McGraw-Hill Companies, Inc. 2001

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