OR GA NIZ ATIONAL CHANGE MODEL DEL What is change? C h a n g e i s t h e l a w o f n a t u r e . I t i s n e c e ss a r y w a y o f l i f e i n m o s t o r g a n i z a t i o n s f o r t h e i r s u r vi v a l a n d g r o w t h . M a n h a s t o m o u l d h i m s e l f c o n t i n u o u s l y t o m e e t n e w d e m a n d and f a c e n e w situations. T h e t e r m ' O r g a ni z a t i o na l Change i m pl i e s t h e c r e a t i on o f i m b a l a n c e in t h e e xi s t e n c e p a t t e r n or situation.

Reas eason for the Chan hange Change in the organization is a must whether brought about deliberately or unwillingly. The reason for change are categorized as follows: change in business conditions, change in managerial personnel, deficiency in existing organizational patterns, technological and psychological reasons, government policies, size of the organization etc.

Models of chang ange Although there are a lot of change models and theories have been formulated by various experts and management gurus but here we will give a glance on few models of change. At first we will discuss about Lewin's Three Step Change Model Lewin's Three Step Chan hange Model Most theories of organizational change originated from the landmark work of

social psychologist Kurt Lewin. Lewin developed a three - stage model of planned change which explained how to initiate, manage, and stabilize the change process. The three stages are unfreezing, changing, and refreezing.

Let us now consider the three stages of change which come in a systematic manner: Unfreezing The focus of this stage is to create the motivation to change. In so doing, individuals are encouraged to replace old behaviors and attitudes with those desired by management. Managers can begin the unfreezing process by disconfirming the usefulness or appropriateness of employees' present behaviors or attitudes. Changing: Because change involves learning, this stage entails providing employees with new information, new behavioral models, or new ways of looking at things. The purpose is to help employees learn new concepts or points of view. Role models, mentors, experts, benchmarking the company against world-class organizations, and training are useful mechanisms to facilitate change. Refreezing Change is stabilized during refreezing by helping employees integrate the changed behavior or attitude into their normal way of doing things. This is accomplished by first giving employees the chance to exhibit the new behaviors or attitudes. Once exhibited, positive support is used to reinforce the desired attitudes. Additional instructions and modeling also are used at this point to reinforce the stability of the change.

Edgar Huse's seven 1.

stage Mode odel of Cha Change

In 1980, Edgar Huse proposed a seven- stage OD upon the original three-stage model of Lewin.

model

based

Scouting - Where representatives from the organization meet with the OD consultant to identify and discuss the need for change. The change agent and client jointly explore issues to elicit the problems in need of attention. stage involves the development and mutual

2.

Entry This agreement to effect the change.

3.Diagnosis Here, the consultant diagnoses the underlying organizational problems based upon their previous knowledge and training. This stage involves the identification of specific improvement goals and a planned intervention strategy. 4. Planning A detailed series of intervention techniques and actions are brought together into a timetable or project plan for the change process. 5.Action - The intervention is carried out according to the agreed plans. Previously established are implemented. action steps

6. Stabilization - This is the stage of 'refreezing'. Newly implemented codes of action, practices and systems are absorbed into everyday routines. 7. Evaluation is conducted to determine the success change process and any need for further action is established. of the

John P. Kotte essf otter's 'eight steps to succ succe ssful change' 1. Kotter's eight step change model can be summarised as: Increase urgency relevant change objectives. inspire people to move and make real and

2. 3. 4.

Build the guiding team - get the right people in place with the right emotional commitment and the right mix of skills at all levels. Get the vision right - get the team to establish a simple vision and to lay organizational strategy Communication Involve as many people as possible, communicate the essentials, make an appeal and respond to people's needs.

5.

Empower action Remove obstacles, enable constructive feedback, get support from leaders, reward and recognize progress and achievements. 6. Set aims that are specific, measurable, achievable, realistic and timebound. 7.Foster and encourage determination and persistence i n t h e ongoing change. E ncourage ongoing progress reporting. Highlight the achieved and future milestones. 8. Make change stick - Reinforce the value of successful change via recruitment, promotion, new change leaders. Weave change into culture.

Change through Total Management (TQM).

TOTAL QUALITY MANAGEMENT

Quality

Total - Made up of the whole Quality- Degree of excellence a product or service provides Management- Act, Art or manner of planning, organizing , directing controlling and

coordinating of affairs.
DEFINITION: 1. TQM is the management approach of an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction and benefits to all members of t h e organization and the society.- ISO 2. TQM is a people - focused management system that aims at continual increase in customer satisfaction at continually lower cost. TQM is a total system approach (not a separate area of program ), and an integral part of high level strategy. It works horizontally across functions and departments, involving all employees, top to bottom, and exceeds backwards and forward to include the supply chain and the customer chain - TOTAL QUALITY FORUM OF USA CHARACTERISTICS OF TQM. 1. 2. Customer Long termOriented. commitment for continuous improvement of all processes. 3. Team work. 4. Continuous involvement of top management. 5. Continuous improving at all levels and all areas of responsibility. OTHER CHARACTERISTICS 1. Continual Improvement: This is the philosophy that seeks to make never-ending improvement to the process of converting input into output. It covers equipment, methods, materials and people. Competitive Benchmarking:

2.

For learning how to improve your operations, you have to identify the companies or organizations that are the best. The company need not have the same line of business all the time. Example: Xerox used the mail order company, L.L. Bean to Benchmark order filling. 3. Employee Empowerment: Giving workers the responsibility for improvements. This puts decision making into the hands of those who are closest to the job and have considerable insight into problems and solutions. Team Approach: The use of teams for problem solving and to achieve consensus takes advantages of group synergy, gets people involved and promotes a spirit of co- operation and shared values among employees. Decision based on facts rather than opinion.

4.

5. 6.

Knowledge of tools: Employees and managers are trained in the use of quality tools. 7. Supplier Quality: Suppliers must be included in the quality assurance and quality improvement efforts so that the processes are capable of delivering quality parts and materials in good time. BASIC CONCEPTS OF TQM: 1. management commitment 2. Top Focus on the customer - Both internal and external 3. Effective involvement and utilization of entire work force 4. Continuous improvement 5. Treating suppliers as partners 6. Establishing performance measures for the processes PRINCIPLES OF TQM: 1. Customers requirements - ( both internal & external) must be met first time & every time 2. Everybody must be involved 3. Regular two way communication must be promoted 4. Identify the training needs and supply it to the employees

5. 6. 7. 8. 9.

Top management commitment Every job must add value Eliminate waste & reduce total cost Promote creativity Focus on team work.

BENEFITS OF TQM Tangible Benefits Improved product quality Improved productivity Reduced quality costs Increased market and customers Increased profitability Reduced employee grievances Intangible Benefits Improved employee participation Improved team work Improved working relationships Improved customer satisfaction Improved communication Enhancement of job interest

The Consequences of Poor Quality 1. 2. 3. 4. 5. Loss of business Liability Productivity Repair work, Rework and Scrap costs. Return goods, Warranty costs, Inspection costs and lost sales.-

Note: It is said that 30-35% of gross sales are used by the maximum companies for improving the quality.

CHANGETHROUGH BUSINESS PROCESS REENGINEERING.

Hammer (1990) defined Business Process Reengineering as "the fundamental rethinking and radical redesigning of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed". This definition comprises four keywords: fundamental, radical, dramatic and processes. Keyword1: Fundamental Understanding the fundamental operations of business is the first step prior to reengineering. Business people must ask the most basic questions about their companies and how they operate: "Why do we do what we do?" and "Why do we do it the way we do it?" Asking these basic questions lead people to understand the fundamental operations and to think why the old rules and assumptions exist. Often, these rules and assumptions are inappropriate and obsolete. Keyword2: Radical Radical redesigning means disregarding all existing structures and procedures, and inventing completely new ways of accomplishing work. Reengineering is about business reinvention, begins with no assumptions and takes nothing for granted. Keyword3: Dramatic

Reengineering is not about making marginal improvements or modification but about achieving dramatic improvements in performance. There are three kinds of companies that undertake reengineering in general. First are companies that find themselves in deep trouble. They have no choice. Second are companies that foresee themselves in trouble because of changing economic environment. Third are companies that are in the peak conditions. They see reengineering as a chance to further their lead over their competitors. Keyword4: Processes The final keyword "Process", is the one that gives most corporate managers the greatest difficulty. Most business people are not process-oriented; they are focused on tasks, on jobs, on people, on structures, but not on processes. BPR is done by: 1. Companies at its declining stages. 2. Companies in its stable stages. 3. Companies in their peak stages.

Difference between continuous improvement TQM and BPR

Continuous improvement is an approach to improving the competitiveness, effectiveness and flexibility of a whole organization. It is essentially a way of planning, organizing and understanding each activity, and depends on each individual at each level. CONTINOUS IMPROVEMENT involves

placing the customer as the focal point of operations. Its aim is to continuously improve process performance in order to satisfy customer requirements. At the center of TQM is the concept of the management of processes, and the existence of internal suppliers and customers within organizations. BPR is much more radical than CONTINOUS IMPROVEMENT. Quality approaches concentrate on improving existing processes; process reengineering starts from scratch to create new processes without the constraints of existing methods, people, technology, management systems, or organizational structures. The major differences between Quality Improvement and Process Reengineering approaches are provided by in the following table: Differences Between Quality Improvement (TQM) and Process Reengineering (BPR) Quality-Improvement Major Factor Seniormanagement involvement Intensity of teammember involvement Improvement goals Approach Hands-on and becoming more reinforcement-oriented Ongoing involvement on an as-needed, part-time basis Focus on incremental improvements over a period Implementation approach of time Emphasis improving on initially, Reengineering Approach Hands-on, active involvement throughout the effort Ongoing involvement for a specified duration on a full-time basis Focus on dramatic improvements in a short time frame Emphasis on creating new ways of doing things

current work processes

Magnitude organizational change Bread th of focus

of

Limited disruption to existing systems and structures Addresses narrowly defined work processes Used after process improvement, to compare Information systems used for data collection and interpretation

Radical changes to existing systems and structures Addresses processes that span entire business units on front end, to assist with Used process selection Information systems used as a central enabler with on-line access

Use of benchmark data Dependence information systems on

Quality specialists tend to focus on incremental change and gradual improvement of processes, while proponents of reengineering often seek radical redesign and drastic improvement of processes.