Change

Organizational Change and Development
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.
Organizational Change: An International Phenomenon

0 International expansion 10 20 30 40 50 60 70 80
Reduction in employment
Mergers, divestitures, acquisitions Major restructuring 0 10 20 30 40 50 60 70 80 Percentage of Respondents by Country
Hungary Mexico S. Korea Germany United States Japan
(Source: Kanten, R., 1991.)
Changing People: Some Basic Steps

Step 3: Refreezing Incorporating the changes, creating and maintaining a new organizational system
Step 2: Changing Attempting to create a new state of affairs

Step 1: Unfreezing Recognizing the need for change
Sensitivity groups
Objective data
Group members recognize problem Diagnose groups strengths and weaknesses Develop desired change goals Develop action plan to make changes Implement plan
Team Building: Its Basic Steps
Evaluate plan
if successful
Process completed
if unsuccessful
Restart process
When Will It Occur?

If benefits exceed costs
Amount of dissatisfaction with current conditions
Change is made
Availability of a desirable alternative
Benefit of making change
Compared to
Cost of making change
Existence of a plan for achieving a desirable alternative
Change is not made
If costs exceed benefits

6
Some External Forces for Change

Information Technology
Globalization & Competition

Courtesy National Board of Antiquities, Finland
Demography
Force Field Analysis

Desired Conditions
Restraining Forces
Restraining Forces
Driving Forces
Restraining Forces
Current Conditions
Driving Forces
Driving Forces
Before Change
During Change
After Change
Resistance to Change at BP Norge

Employees initially resisted selfdirected 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
Resistance to Change
Direct Costs
Saving Face Fear of the Unknown
Forces for Change
Breaking Routines Incongruent Systems Incongruent Team Dynamics
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
Minimizing Resistance to Change

Communication
Coercion
Training
Negotiation
Minimizing Resistance to Change

Stress Management
Employee Involvement
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
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 Build commitment to the vision
Courtesy of CHC Helicopter Corp.
Successfully Diffusing Change

Successful pilot study
Favourable publicity
Top management support Labour union involvement Diffusion strategy described well
Courtesy of CHC Helicopter Corp.
Pilot program people moved around
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.
Organizational Development: How Effective Is It?

Percentage of Studies Showing Positive Changes
50
Organizational outcomes more often benefited from OD interventions than did individual outcomes
(48.70)
40
30
(23.55)
20
Individual outcomes (e.g., job satisfaction)
Organizational outcomes (e.g., profit) (Source: Porras and Robertson, 1992.)

17
Action Research Process

Establish ClientConsultant Relations
Diagnose Need for Change
Introduce Change
Evaluate/ Stabilize Change

Disengage Consultants Services
Parallel Structures
Parallel Structure Organization
Appreciative Inquiry Process
Discovery
Dreaming
Designing
Delivering
Discovering the best of what is
Forming ideas about what might be
Engaging in dialogue about what should be
Developing objectives about what will be
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
The Ethics of OD: Summary of the Debate

OD is ethical The imposition of values is an inherent part of life, especially on the job Abuse comes from individuals, not from the technique itself, which is neither good nor evil
OD is unethical Imposes values of the organization; coercive and manipulative Potential for abuse
22

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Organizational Change and Development

Continuous Change at Nokia

Organizational Change: An International Phenomenon

Mergers, divestitures, acquisitions Major restructuring 0 10 20 30 40 50 60 70 80 Percentage of Respondents by Country

Hungary Mexico S. Korea Germany United States Japan

(Source: Kanten, R., 1991.)

Changing People: Some Basic Steps

Step 2: Changing Attempting to create a new state of affairs

Team Building: Its Basic Steps

When Will It Occur?

Availability of a desirable alternative

Benefit of making change

Cost of making change

Existence of a plan for achieving a desirable alternative

Change is not made

If costs exceed benefits

Some External Forces for Change

Globalization & Competition

Force Field Analysis

Resistance to Change at BP Norge

This creates more work will we get higher pay?

Forces for Change

Breaking Routines Incongruent Systems Incongruent Team Dynamics

Creating an Urgency for Change

Most difficult when organisation is doing well

Minimizing Resistance to Change

Minimizing Resistance to Change

Refreezing the Desired Conditions

Courtesy of CHC Helicopter Corp.

Successfully Diffusing Change

Pilot program people moved around

Organization Development Defined

from the top with the assistance of a

Organizational Development: How Effective Is It?

Individual outcomes (e.g., job satisfaction)

Organizational outcomes (e.g., profit) (Source: Porras and Robertson, 1992.)

Action Research Process

Diagnose Need for Change

Evaluate/ Stabilize Change

Appreciative Inquiry Process

Discovering the best of what is

Forming ideas about what might be

Engaging in dialogue about what should be

Developing objectives about what will be

Organization Development Concerns

The Ethics of OD: Summary of the Debate

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