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Organizational change management is important for companies to succeed and grow. It allows for the safe adoption of change within a business and helps employees understand and commit to the change. Managing organizational change leads to a faster and more effective transition that requires less time and resources. Everyone in an organization has a role to play in change management, from senior leadership guiding the vision to middle managers reinforcing the change with employees. Regular communication, planning for potential roadblocks, and focusing on change readiness across all levels are key components of effective change management.

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Jaila Yousri Khalifa
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77 views29 pages

Ocm 2

Organizational change management is important for companies to succeed and grow. It allows for the safe adoption of change within a business and helps employees understand and commit to the change. Managing organizational change leads to a faster and more effective transition that requires less time and resources. Everyone in an organization has a role to play in change management, from senior leadership guiding the vision to middle managers reinforcing the change with employees. Regular communication, planning for potential roadblocks, and focusing on change readiness across all levels are key components of effective change management.

Uploaded by

Jaila Yousri Khalifa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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CLASS 2

MANAGING ORGANIZATIONAL
DESIGN & CHANGE
Dr. Howaida Mahmmoud Barakat
2022
Mr. X & Ms. Y
Organizational Transformation
What is the most improtanat factor?
Mr. X

2 months

I’ve got it!


Wrong
factors!
No
Progress

2 years

Ms. Y
I’ve got it!
Mr. X

4 months

In progress
4 months
TAKE AWAY
If your organization or project looks like it is not going on the right
direction, look at the factors that affect the outcome and direct your
energy on the critical ones.
CASE STUDY
“Tesla planning ‘thorough reorganization”

“Tesla starts brutal review of contractors,


firing everyone that is not vouched for by an
employee”

In 2018:
• No profit for 15 years.

• Can’t meet production targets


“Tesla to cut 9% of jobs in ‘difficult
• Crashes on autopilot. but necessary’ reorganization”
In an email to staff, Musk said:

- Many contractor companies are interwoven throughout


Tesla. It is like a nesting of contractor, subcontractor,
sub-subcontractor, etc. before you finally find someone
doing actual work. This means a lot of middle-managers
adding cost but not doing anything obviously useful.
- All contracting companies have one week as a final
opportunity to demonstrate excellence.
- Organizational structure will be flattened for better
communication, eliminate bureaucracy, move faster and
combining functions.
- Tesla is maturing and prioritizing profitability.
TYPES OF ORGANIZATIONAL STRUCTURE
q HIERARCHICAL/FUNCTIONAL q HORIZONTAL/FLAT

Pros
Pros
• Gives employees more responsibility
• Define levels of authority, reporting and
• Fosters more open communication
responsibility
• Improves coordination and speed of implementing
• Gives clear career paths, specialty and
new ideas
chances for promotion
• Creates camaraderie between employees
within the same department
Cons
• Creates confusion since employees do not have a
Cons clear supervisor to report to
• Slows down innovation and creativity • Produces employees with more generalized skills and
• Increases bureaucracy knowledge
• Creates silos • Difficult to maintain once the company grows beyond
• Lowers level of motivation start-up status
Tesla posts record net income of $438 million,
REVENUE SURGES BY 74%
ORGANIZATIONAL
CHANGE
WHY MANAGEMENT IS IMPORTANT?
WHAT IS The actions in which a company or a business
ORGANIZATIONAL alters a major component of it.
CHANGE?
Among the most common factors are:
q New leadership of the company
WHAT CAUSES q New Managers within departments
ORGANIZATION q Shifts in the organizational team structure
AL CHANGE? q Implementation of new technology
q Adoption of new business models
“There is nothing permanent than change”
- Greek philosopher Heraclitus

q Responding rapidly to changing environment


q Improving performance
REASONS FOR
q Responding to customers’ demands
ADOPTING
q Improving effectiveness and efficiency
CHANGE
q Increasing profitability and return on investment
The process of making the organizational
change a success. It usually includes three
WHAT IS major phases:
ORGANIZATIONAL - Preparation (unfreezing)
CHANGE - Implementation (changing)
MANAGEMENT?
- follow-through (freezing)
WHAT ARE THE TYPES OF ORGANIZATIONAL CHANGE?

PHASE 1 PHASE 2 PHASE 3


PREPARATION IMPLEMENTATION FOLLOW-THROUGH

• Needs assessment • Developing processes • Reinforcement of


• Evaluation of • Setting plans change including
capabilities and • Initiating practical processes like
capacity steps collection and
• Developing a strategy • Dealing and coping analyzing of
that fit. with resistance from feedback data to
inside and outside find out gaps then
• Building relationships reiterate.
• Offering rewards
• Training to the staff
WHAT
Ask ARE THE
questions like: TYPES OF ORGANIZATIONAL CHANGE?
q Do you understand the forces making change necessary?
Without this understanding, it can be difficult to effectively address the
underlying causes that have necessitated change, hampering your ability to
succeed.

q Do you have a plan?


Without a detailed plan and defined strategy, it can be difficult to usher a
change initiative through to completion.
WHAT
Ask ARE THE
questions like: TYPES OF ORGANIZATIONAL CHANGE?

q How will you communicate?


Successful change management requires effective communication with
both team members and key stakeholders.

q Have you identified potential roadblocks?


While it’s impossible to predict everything that might potentially go wrong
with a project, taking the time to anticipate potential barriers and devise
mitigation strategies before you get started is generally a good idea.
WHAT ARE THE TYPES OF ORGANIZATIONAL CHANGE?

Small
Incremental
Evolve over time,
minor modifications or adjustments

ADAPTIVE TRANSFORMATIONAL
CHANGES CHANGES

Larger scale and scope


Shift in mission and strategy
Substantial amount of time and energy
Usually pursued in response to external forces
q Necessary for companies to succeed and grow.
WHY IS
ORGANIZATIONAL q Safe adoption of change within the business.
CHANGE q Allows employees to understand and commit.
MANAGEMENT q Faster and effective transition (less time and
IMPORTANT? resources)
WHO IS REPSONSIBLE?
Every one in the organization has a different role in assisting with change

q Board of Directors: Guide the definition and development of the desired change
q Senior Management Team: Cultivate the desired change through actions
including setting objectives, strategies, and key results; and designing
processes.
q Human Resources department: Implement strategies and programs that enable
employees to fulfill their responsibilities and engage
WHO IS REPSONSIBLE?

q Compliance, Risk, and Ethics department: Ensuring that execution of the


desired change across aligns with the company’s risk management strategies.
q Middle managers: Deliver employee experiences that interpret and reinforce
the desired change.
q Human Resources department:
o Provide insights on how the desired change aligns with or differs from the
customer perspectives, and employee needs and expectations.
o Aligning their attitudes and behaviors with the desired change.
Components of Change Management

COMPONENTS
CASE STUDY
McKinsey & Company
Components of Change Management
ACTIVITY
Look through this list of organizational levels, consider what you believe your organization does
best—and where you may lack focus?
THANK YOU

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