organizational change(group no.8)

PRESENTED BY:HEENA MIRCHANDANI

HIMANSHU GARG

JYOTI SATSANGI

VINEET HARIT

Organizational Change: Factors & Approaches

Meaning of organizational Change

The term organizational change implies the creation of imbalances in the existing pattern of situation.

Change is a continuous phenomenon of organizational life. The survival and growth of an organization depends to a great extent on its ability to cope with change required by forces operating within its boundaries and in its external environment

Nature of Change

Organizational change denotes any alteration which occurs in the overall work environment of an organization. Characteristics are:

Change results from the pressure of forces both outside and inside the organization.

The whole organization tends to be affected by change in any part of it.

Change takes place in all parts of the organization, but at varying rates of speed and degrees of significance.

Forces For Change

External Forces

TechnologyTechnology Marketing conditionsMarketing conditions

Social changesSocial

changesPolitical and legal forcesPolitical and legal forces

Change in operative personnel

Change in operative personnel

Change in managerial personnel

Change in managerial personnel

Deficiencies in existing

structure

Deficiencies in existing

structure

Chain effect of change

Chain effect of change

Fear of inflexibility

Fear of inflexibility

Intern

a

l

Forces

Levels of Organizational Change

Individual Level ChangeGroup Level ChangeOrganizational Level Change• Strategic change• Structural change• Process oriented change• People oriented change

Types of organizational changes

Anticipatory or proactive changeReactive changeIncremental changeStrategic change

Causes of human resistance to change

Economic factorsWorkers apprehend technological unemploymentWorkers fear that they will be idle for a major

portion of their time due to higher efficiency of new technology

Workers are afraid of demotion as they do not have the new skills required for the performance of new jobs.

Psychological factors

It is human psychology to maintain status quo. Human beings resist change by nature

Workers may apprehend boredom in new jobs because of increased automation.

Workers may be lazy and reluctant to learn new things

Workers do not have complete knowledge about the change. They may make their own assumptions about change. The assumptions may be totally illogical

Social reasons

It may be felt by workers that their status may go down as a result of introduction of new technology

Changes may require new social adjustments which are not liked by the workers.

Workers as a group oppose change as they are unfamiliar with the change

Workers resist changes which are brought about without consulting them.

Strategies to overcome resistance to change

Education and communicationParticipation and involvementEducation and trainingFacilitation and supportNegotiation and agreementManipulation and co-optationExplicit and implicit coercion

Management of change

Approaches to Change Management

ADKAR ModelLewin’s change management model Kotter’s 8 step change modelBridge’s transition model

ADKAR Model (Simple, powerful and action oriented model for

change)

Developed by Jeff Hiatt, CEO of Prosci Change Management, and first published in 2003, focuses on 5 actions and outcomes necessary for successful individual change, and therefore successful organisational change.

Lewin’s change management model

One of the cornerstone models for understanding organizational change was developed by Kurt Lewin back in the 1940s, and still holds true today.

His model is known as Unfreeze – Change – Refreeze, refers to the three-stage process of change

Lewin, a physicist as well as social scientist, explained organizational change using the analogy of changing the shape of a block of ice.

Kotter's 8-Step Change Model (Implementing change powerfully and

successfully)

Change management guru, John Kotter introduced his eight-step change process in his 1995 book, "Leading Change."

Bridges' Transition ModelThe Transition Model was created by change

consultant, William Bridges, and was published in his 1991 book "Managing Transitions."

CASE STUDYHow Cisco IT Implemented

Organizational Change and Advanced Services for Operational Success

Problem

• NDCS (Network and Data Centre Services) Pre-existing Traditional Model: With two

separate service organizations, there was much duplication and lack of focus.

NDCS engaged Cisco Advanced Services’ Network Availability Improvement Services organization (NAIS) to identify the areas that needed to be changed and recommend how to proceed.

The ORMA (Operational Risk Management Analysis )is a Cisco support deliverable that outlines a roadmap for operational excellence and availability via a best-practice approach to network design, tools, process, and expertise.

SOLUTION

An organizational restructure to Cisco’s IT NDCS group solved the business problem.

Cisco Lifecycle Methodology: Cisco IT NDCS now uses this framework for its organizational structure.

NDCS New Lifecycle Model

Cisco’s new NDCS organization includes administration on both the front end (via the Program Office) and the back end (via the Business Office), and incorporates Cisco’s Lifecycle Model

RESULTS

The restructuring, together with the NAIS ORMA report affected change in NDCS

The operational maturity comparison of 2006 to 2008 shows dramatic improvement in each of the five areas.

Cisco NDCS has achieved customer satisfaction scores of 4.856, with 5 being the best possible score

Service Level Agreement timeframe has risen from 60 percent to 90 percent since the NDCS restructuring

Before using the lifecycle methodology, NDCS had: An average of approximately 150 client-impacting incidents per quarter Total impacting outage duration of 1000-plus hours per quarter. A defective root cause percentage consistently above 40 percent .

The Cisco lifecycle methodology now provides a focus on operational excellence with these results:

Incidents have decreased to approximately 70 per quarter The total impacting outage duration has been reduced to 300 impact

hours per quarter The defective root cause percentage is now consistently below 10

percent.