ob - organizational change and development

7/27/2019 OB - Organizational change and development

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ORGANIZATIONCHANGE AND

DEVELOPMENT


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Change is making things different.

Change is alternation in the environment.

It can be revolutionary or evolutionary.

It can be planned or unplanned.

It can be positive or negative.

- According to Newstrom and Davis,

Change is any alteration in the workenvironment that affects the way in which

employees must act.

CONCEPT


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FORCES OR

FACTORS OF

ORGANIZATIONAL

CHANGE ORGANIZATION

EXTERNAL INTERNAL

Political Goals

JOB RELATED

Job design Economical

Socio-cultural

Technological

International

Events

Structure

Resources

Organizationclimate

Change in

management

Domestic and

Personalrelation

Status

Job fit work

place

Communication


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a. Political forces of change

- Changing political system, institutions and

philosophies.

- Changing world politics, such as collapse of Soviet

Union, reunification of Germany, etc.

- Changing role of government from does to facilitator

and regulator.

- New laws and regulations enacted by the

government which organizations must employ.

1. EXTERNAL

FACTORS OF

CHANGE(PEST)

b. Economic and Market forces of change

- Economic system, policies and conditions.

- Inflation and exchange rate changes.

- Income distribution and poverty incidence.- Resources availability in turns of physical, human and

financial.

- Liberalization and privatization.

- Increase in globalization in the market place.

Competetion has appeared everywhere. It is

worldwide.


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1. EXTERNAL

FACTORS OF

CHANGE(PEST)

c. Socio- cultural forces of change

- Demographic changes related to population. Thenature of work force is changing. Migration is

increasing.- Social tends such as delayed marriages, antismoking

attitudes, nuclear families etc.

- Social changes and diversity that causes differencesamong people.

- Ethical- problems and dilemmas.

- Cross- cultural influence and their impact on values,beliefs and attitudes.

d. Technological forces to change

- Changes in the level of technology and the rate of

technological change; change in process and method.

- The rate of technological change is increasing.

- Innovations and experimentations.

- Redesigning of jobs arising from new development in

technology.

- Virtualization of offices resulting form information

technology.


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2. INTERNAL

FACTOR OF

CHANGE

a. Goals changes: The goals of employees change.Organizational goals experience succession anddisplacement.

b. Structure change: They affect job design andrelationships. Coordination mechanisms also changes.

c. Resource changes: Technology changes make manuallyperformed jobs automated and computerized. Human,

financial and information resources also change.

d. Organization climate change:

- Mutuality of interests of labors and management.

- Collaborative among employees.

- Team spirit- grouping activities around team for result.

-Performance based rewards.

- climate of trust and human focus.

e. Change in management: Management is the key part tobring change in organization. Management should bechanged to achieve goal of organization and to survive in

dynamic environment.


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3. JOB

RELATED

FACTORS OFCHANGE

a. The Job design:

b. Domestic and personal reason:

c. Status and recognition

d. Speed of communication:

e. Job fit work place:


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There are two sources of resistance to

change:

RESISTANCE

TO CHANGE

Individual Resistance sources

Organizational Resistance sources

Habit

Security Fear of unknown

Poor communication

Lack of involvement

Vested interest

Perception of inequity

Group inertia

Limited focus

Threat to Power andRelationship

Reward system Organizational culture

Conflicts

Thereat to ResourceAllocation

Structural Inertia


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1. INDIVIDUAL

SOURCES OF

RESISTANCE

TO CHANGE

a. Habit: Human beings are creatures of habit. Changes inold work habits create resistance. Employee tend torespond in accustomed ways.

b. Security: Employees may fear loss of job security, reductionin pay and increase in workloads. Change threatens the safetyneeds. Employee resist for job security.

c. Fear of unknown: change creates uncertainty andambiguity. Employees resist uncertainty and ambiguity.

d. Poor communication: If change is not properlycommunicated, it is resisted. It also createsmisunderstandings.

e. Lack of Involvement: Lack of employee involvement inplanning and implementing change cause resistance.

f. Vested interests: some individual may have vestedinterests in maintaining status quo. Change threatenstheir vested interests and they resist it.

g. Perception of Inequality: Employee resist change whenthey do not see a personal gain for themselves. Theyperceive that someone else will gain the benefits of

change.


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2. ORGANIZATION

SOURCES OF

RESISTANCE TO

CHANGE

a. Structural Inertia: Organizations have built-inmechanism to produce stability. Formal policies, rules,procedures and job descriptions for stability. Change is

resisted because of this structural inertia.

b. Group Inertia: Change threatens group norms andconformity. This group inertia causes resistance to change.

c. Limited Focus: Change in one department affects otherdepartments. Limited focus of change in one department

may resisted by other departments.d. Threat to Resource Allocation: If change threatensestablished practices and resource allocation, it may beresisted by departments getting lesser resources.

e. Threat to Power Relationship: If change threatens long-established power relationships within organization, it may

be resisted.

f. Conflicts: Interdepartmental conflicts can subvertchange efforts. Parties to conflict resist change.

g. Reward System: The reward system of theorganization may favor existing behavior and hinder

change. Change may not be rewarded.


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OVERCOMING

BARRIERS TO

CHANGE

a. Communication: Effective communication clearsmisunderstandings and provides logics for change.

b. Participation: Employee involvement in planning andimplementation of change reduces resistance to change.

c. Negotiation: Negotiations with powerful resisters ofchange through reward packages can reduce resistance tochange.

d. Facilitation and support: Supportive efforts andfacilitation through education, counseling, therapy andnew skills training reduce resistance to change.

e. Employee Security: Change should safeguard existing

employee benefits and security.

f. Coercion: Force is applied to overcome resistance tochange. Job loss, transfer, demotion, etc. are used ascoercion.


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Concept

- It is long term and system wide approach fororganizational improvements through behavioralinterventions.

- It seeks to improve organizational effectiveness

and employee well being by creating aconductive climate for change.

- It improves an organizations self renewalprocess through adoption to the environmentalchanges.

According to Stephen P. Robbins,

OD is a collection of planned change interventions,built on humanistic democratic values, that seeks

to improve organizational effectiveness and

employee well being.

ORGANIZATION

DEVELOPMENT


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a. Planned: It is a planned approach to change.

b. Long term: it is a long-term effort. It may takeseveral years.

c. System wide: It is system wide and takes asystem perspective.

d. Top management support: OD is led andsupported by top management. The change

starts from the top.e. Visioning process: OD creates a picture of the

desired future of the organization.

f. Learning process: OD facilitates individual, groupand organization learning and self- renewal.

g. Problem solving process: OD is designed to solveproblems.

CHARACTERISTICS

OF ORGANIZATIONALDEVELOPMENT (OD)


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a. Top Management support: OD should be led andsupported by top management. There should becommitment to OD. Top management shoulddevote time and resources to OD.

b. Team work: OD relies heavily on team work. Theorganization should have the culture ofparticipation and team work. Which helps for OD.

c. Build in reward system: the reward system shouldhave built in mechanisms to reward contribution tochange.

d. Open communication: There should be trust andopen communication among team and teammembers for OD.

e. Past Experience in OD: Successful experiences withpast OD efforts provide momentum to future ODefforts. Experience helps for OD.

PREREQUISIT

ES OF OD


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Organizational Effectiveness

Employee well- being Conflict management.

Collaboration

Environment adoption.

OBJECTIVES

OF OD

OD PROCESS a. Problem recognition.b. Diagnosis

c. Data collection

d. Feedback

e. Development of change strategy

f. Action Planning

g. Intervention (Action)

h. Evaluation


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THANK YOU!

ob - organizational change and development

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