Changing the Culture • Actions to Change Culture • • • • Do a Cultural Analysis Create Sense of Urgency Appoint a Visionary Change Agent Create Supporting Conditioning Components 12-1 Copyright © 2005 Prentice-Hall Why is it Important to Adapt to Change? • Individuals, teams, or organizations that do not adapt to change in timely ways are unlikely to survive. 12-2 Copyright © 2005 Prentice-Hall Adapting to Change • Individuals, teams and organizations that recognize the inevitability of change, learn to adapt to it, and attempt to manage it, will be the most successful. 12-3 Copyright © 2005 Prentice-Hall What is Change? • Coping process of moving from a unsatisfactory present state to a desired state 12-4 Copyright © 2005 Prentice-Hall Reacting to Change • Unplanned • “Fire fighting” 12-5 Copyright © 2005 Prentice-Hall Planned Change • Results from deliberate attempts by managers to improve organizational operations 12-6 Copyright © 2005 Prentice-Hall Change Language • The literature usually refers to these forms of change as: 1. Emergent change 2. Deliberate change 12-7 Copyright © 2005 Prentice-Hall Unfreeze Change Three Phases of Planned Change Refreeze 12-8 Copyright © 2005 Prentice-Hall Unfreezing • Help people accept that change is needed because the existing situation is not adequate 12-9 Copyright © 2005 Prentice-Hall Changing • Involves rearranging of current work norms and relationships to meet new needs 12-10 Copyright © 2005 Prentice-Hall Refreezing • Reinforces the changes made so that the new ways of behaving become stabilized 12-11 Copyright © 2005 Prentice-Hall I Disagree • “Disagree” is probably not the right word. Let’s just say I have concerns over this terminology. 12-12 Copyright © 2005 Prentice-Hall Managing the Planned Change Process • Improving the organization’s ability to cope with unplanned changes that are thrust upon it • Modifying employee’s attitudes and behaviors to make them more effective contributors to the organization’s goals 12-13 Copyright © 2005 Prentice-Hall Steps in the Planned Change Process Recognize the need for change Diagnose and plan change Manage the transition Measure results Maintain change 12-14 Copyright © 2005 Prentice-Hall Initiating the Planned Change Process • • • • • Recognize the need for change Diagnose and plan change Formulate Goals Determine stakeholders’ needs Examine driving and restraining forces 12-15 Copyright © 2005 Prentice-Hall Force-Field Analysis • Process of analyzing the forces that drive change and the forces that restrain it 12-16 Copyright © 2005 Prentice-Hall Driving Forces • Factors that push toward the new, more desirable status quo 12-17 Copyright © 2005 Prentice-Hall Restraining Forces • Factors that exert pressure to continue past behaviors or to resist new actions 12-18 Copyright © 2005 Prentice-Hall Force-Field Analysis Model Restraining Forces QuasiStationary Equilibrium Driving Forces 12-19 Copyright © 2005 Prentice-Hall Managing the Planned Change Process • Consider contingencies to determine the best interventions • Manage the transition • Measure results • Maintain change 12-20 Copyright © 2005 Prentice-Hall Targets for Organizational Change • Strategy – Develop new visions, missions, strategic plans • Structure – Add a new department or division, or consolidate two existing ones • People – Replace a person or change knowledge, skills, attitudes, or behaviors • Technology – upgrade a data processing system • Management –Encourage participation by those involved in solution of problems 12-21 Copyright © 2005 Prentice-Hall Reasons for Resistance to Change • Selective Perception • Lack of Information • Fear of the Unknown • Habit • Resentment Toward the Initiator • Sub-Optimization • Structural Stability 12-22 Copyright © 2005 Prentice-Hall Overcoming Resistance to Change • • • • • • • Education and Communication Participation and Involvement Facilitation and Support Negotiation and Agreement Manipulation and Co-optation Coercion Promote Positive Attitudes Toward Change 12-23 Copyright © 2005 Prentice-Hall Leading Organizational Change • • • • • • • Establish a Sense of Urgency Form a Powerful Guiding Coalition Develop a Compelling Vision and Strategy Communicate Widely Empower Others to Act on the Vision Generate Short-term Wins Consolidate Gains and Create Greater Change • Institutionalize Changes in the Organizational Culture 12-24 Copyright © 2005 Prentice-Hall Remember … • Strategy must always drive structure, NOT the other way around ! 12-25 Copyright © 2005 Prentice-Hall Restructuring • Concept - Some activities within a business’s value chain are more critical to the success of the strategy than others • Considerations in restructuring • Strategically critical activities must be the building blocks for designing the structure • Organizational structure must be designed to help coordinate and integrate support activities to • Maximize their support of primary activities • Minimize their costs and time 12-26 Copyright © 2005 Prentice-Hall Reengineering Processes • Concept - Involves reorganizing a company to create value for the customer by eliminating barriers that create distance between employees and customers • Potential outcomes of BPR • Reduces fragmentation by crossing traditional department lines • Reduces overhead by compressing formerly separate tasks that are strategically intertwined in the process of focusing on the 12-27 customer Copyright © 2005 Prentice-Hall Steps Involved in Business Process Reengineering Develop a flow chart of the total business process Try to simplify the process first, eliminating unnecessary tasks and streamlining remaining tasks Determine which parts of the process can be automated Benchmark strategy-critical activities Consider outsourcing non-critical activities Design a structure for performing remaining activities and reorganize personnel accordingly 12-28 Copyright © 2005 Prentice-Hall Guidelines Regarding the StrategyStructure Fit 1. A single-product firm or dominant product business should employ a functional structure 2. A firm in several related businesses should employ a multidivisional structure 3. A firm in several unrelated lines of business should be organized into strategic business units 4. Early achievement of a strategy-structure fit can be a competitive advantage 12-29 Copyright © 2005 Prentice-Hall Using existing executives to implement a new strategy Advantages Disadvantages • Already know key people, practices, and conditions • Less adaptable to major strategic changes because of their knowledge, attitudes, and values • Personal qualities are better known and understood by associates • Have established relationships with peers, subordinates, suppliers, and buyers • Symbolizes organizational commitment to individual careers • Past commitments hamper the hard decisions required in executing a new strategy • Have less ability to become inspired and credibly convey the need for change Copyright © 2005 Prentice-Hall 12-30 Bringing in outsiders to implement a new strategy Advantages • May already believe in and have “lived” the new strategy • Are unencumbered by internal commitments to people (the “poor ol’ Fred” problem) • Come to the new assignment with heightened commitment and enthusiasm • Can send powerful signals throughout the organization that change is expected Disadvantages • Is often costly in terms of compensation and “learningto-work-together” time • Candidates suitable in all respects may not be available, leading to compromise choice • Uncertainty in selecting the right outsiders to bring in • “Morale costs” Copyright © 2005 Prentice-Hall 12-31
Purchase answer to see full attachment