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Organizational Change: Two Metaphors. Calm Waters (Incremental) White Water Rapids (Radical). External : Customers Competitors Technology Economic Social Political International. Internal : Financial Problems Production Inefficiencies Employee Expectations/ Demands Management Goals.

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organizational change two metaphors
Organizational Change:Two Metaphors
  • Calm Waters (Incremental)
  • White Water Rapids (Radical)
forces for change
External:

Customers

Competitors

Technology

Economic

Social

Political

International

Internal:

Financial Problems

Production Inefficiencies

Employee Expectations/ Demands

Management Goals

Forces for Change
steps in the organizational change process
Assess need for

change

Find source of problem

Decide on the

change

Identify obstacles

Implement Change

Top-down or

Bottom-up

Evaluate Change

Is it successful?

Steps in the Organizational Change Process
types of changes
Types of Changes
  • Technology
  • Product/Service
  • Strategy/Structure
  • People/Culture

(Usually, more than one change at a time)

technology change
Technology Change
  • Generally, technology change is “bottom-up”
  • Facilitated by “Ambidextrous” approach
    • looser structure for innovation than for established activities
product service change
Product/Service Change
  • Innovation often requires expertise from several departments simultaneously (e.g., Marketing, R&D, Manufacturing)
  • “Bottom-Up after Horizontal-Linkage”
    • Horizontal Linkage Model:
      • Specialized departments
      • Horizontal linkages
      • Boundary spanning
new venture teams
New-Venture Teams
  • Separate unit to develop and initiate innovations
  • Small, Organic
  • Relatively free from organizational bureaucracy
  • Most effective when placed high in the organizational structure
strategy structure change
Strategy/Structure Change
  • Mission, General Goals
  • Structural Design, Administrative Procedures, Management Systems
  • Usually “top-down”
people and culture changes
People and Culture Changes
  • TQM - Total Quality Management
  • OD - Organizational Development
organizational development
Organizational Development

Use of behavioral science knowledge to promote people/culture changes such as:

  • Skill Development
  • Attitude Change
  • Teamwork
od can help managers address
OD Can Help Managers Address--
  • Organizational decline
  • Conflict management
  • Mergers/Acquisitions
od techniques
Individual:

Job Training

Career Planning

Coaching, Counseling

Group:

Sensitivity Training

Role Playing

Team-building

The following can include large portions and even the Entire Organization:

Survey-feedback

Intergroup activities

Process-consultation

OD Techniques
why people resist change
Why People Resist Change
  • Personal preference for sameness
  • Fear of the unknown
  • Climate of mistrust
  • Fear of failure
  • Loss of status and/or job security
  • Disruption of cultural traditions and/or group relationships
lewin s force field analysis decision to engage in exercise
Lewin’s Force Field Analysis: Decision to Engage in Exercise

Forces for Change (Driving)

Weight gain

Minimally passing treadmill test

Feel lethargic, having no energy

Family history of cardiovascular disease

New, physically demanding job

Forces for Status Quo (Restraining)

Lack of time

No exercise facility at work

Spouse/partner hates to exercise

No interest in physical activity or sports

Made a grade of D in a physical education class.

Equilibrium

slide16
Driving Forces of Change

Restraining Forces against Change

Historically good

company-union

relations

Deteriorating company-

union relations

Foreign competition

Stringent work rules

Recent company

losses

Current benefit costs

Cheaper sources

available outside

Current pay costs

Union desire to

save jobs

Employee absenteeism

levels

Company desire for

flexibility in layoff

decisions

Company reluctance

to eliminate jobs

Current High

Cost Level

Desired Lower

Cost Level

FORCE FIELD ANALYSIS

lewin s 3 step change model
Unfreezing

Motivate Change (strengthen driving and/or weaken restraining forces)

Change

Use Effective Change Method

Refreezing

Solidify the Change

Unfreezing

Communication/Education

Negotiation/Promise of Rewards

Change

Participation/Training/

Coercion

Refreezing

Reinforce with

Resources/Rewards

Lewin’s 3-Step Change Model
lewin s change model
Unfreezing- Creates the motivation to change- Encourages the replacement of old behaviors and attitudes with those desired by management- Entails devising ways to reduce barriers to change- Creates psychological safety

•Changing- Provides new information, new behavioral models, or new ways of looking at things- Helps employees learn new concepts or points of view- Role models, mentors, experts, benchmarking results, and training are useful mechanisms to facilitate change

  • Refreezing- Helps employees integrate the changed behavior or attitude into their normal way of doing things- Positive reinforcement is used to reinforce the desired change- Coaching and modeling help reinforce the stability of change
Lewin’s Change Model
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