Change Management

THE PRESSURES FOR ORGANIZATIONAL CHANGE

THE BUSINESS ENVIRONMENT
THE ORGANIZATIONS (NEW & OLD
CUSTOMER VALUE STRATEG!
CONTINUOUS IMPROVEMENT
CHANGES IN THE DOMINANT ROLE OF VARIOUS
FUNCTIONAL MANAGERS " DEPARTMENTS IN
CORPORATE STRATEG! FORMULATION
CHANGE IN CORPORATE CULTURE
#UALIT! ERAS
BARRIERS TO CHANGE

THE BUSINESS ENVIRONMENT

THE PRESSURES FOR ORGANIZATIONAL CHANGE
Source: Engineering Management by Fraidoon Mazda
Re$%e&ent& O%gan'(at')n
Source: Management by Griffin
RGANZATIONSTHE ORGANZATION
OLD PARADIGM NEW (Emerging) PARADIGM
Stable Dynamic
Inflexible Flexible
Job-focused Skills-focused
Work is defined by job positions Work is defied in terms of tasks to be done
Individual-oriented Team-oriented
Permanent Job Temporary Job
ommand-oriented Involvement-oriented
!ana"ers al#ays make decisions $mployees participate in decision makin"
%ule-oriented ustomer-oriented
%elatively &omo"eneous #orkforce Diverse #orkforce
Workdays defined as ' to ( Workdays &ave no time boundaries
)ierarc&ical relations&ips *ateral and net#orked relations&ips
Work at or"ani+ational facility durin" specific &ours Work any#&ere, anytime
THE ORGANIZATIONS (NEW & OLD)
CONTINUOUS IMPROVEMENT
Source: Foundations of Management by Stephen P. Robins
Source: TQM ! "irtua# $ni%ersity Pub#ication
CUSTOMER VALUE STRATEGY
Source: A Virtual University Publication
CHANGES IN THE DOMINANT ROLE OF VARIOUS FUNCTIONAL MANAGERS "
DEPARTMENTS IN CORPORATE STRATEG! FORMULATION
PERIOD T!PICAL
FUNCTION
REASONS
1945 to 1965 Production
/Operations
During this period, in most industrial sectors world demand was
greater than word supply/capacity. ompanies ould typically
there!ore, sell all they could ma"e and hence the
production/operations !unction tended to hold way in strategic
de#ate.
1965
to early
19$%s
&ar"eting 'n a#out the mid ( 196%s, the im#alance #etween a)aila#le world
capacity and world demand had #egun to #e redressed. *he
outcome was that in most mar"ets selling products #ecame
increasingly di!!icult. +ence the ad)ent o! mar"eting,s strategic
role which cam to the !ore !rom this time onwards.
-arly 19$%s
to present
day
&ar"eting and
/or .inance
*he recession which occurred in the late 19/%s and early 199$%s
resulted in many companies e0periencing !inancial di!!iculties
and witnessed a spate o! corporate !ailures. 1lready gaining
ground, these e)ent stimulated the emergence o! the
!inance/accounting !unction and its roles.
CHANGE IN CORPORATE CULTURE
- !ec&ani+ation .
Source: Operations Management AIOU Publication
C)%$)%ate C*+t*%e
Source: TQM ! "irtua# $ni%ersity Pub#ication
QUALITY ERAS
Quality Element Previous State QM
Definition Product-oriented ustomer /riented
Priorities Second to service and cost First amon" e0uals of service and
cost
Decisions S&ort- term *on"- term
$mp&asis Detection Prevention
$rrors /perations Systems
%esponsibility 1uality ontrol $veryone
Problem Solvin" !ana"ers Teams
Procurement Price *ife ycle costs, partners&ips
!ana"er2s %ole Plan, assi"n, control, and enforce Dele"ate, coac&, facilitate, and
mentor
TYPICAL QUALITY ELEMENTS (PREVIOUS AND
PRESENT TQM STATE)
WALL OF RESISTANCE TO CHANGE
Source: TQM by Suganthi
Source: TQM by &a#e '. (esterfie#d
*he 'ne%t'a within the organi2ation, caused #y the norms that ha)e
#een operating o)er se)eral years.
-mployees !eel threatened #y the change and #ecome suspicious
a#out their career paths.
-mployees may !eel that they are no longer in control o! their own
career paths.
-mployees #ecome suspicious a#out their !uture roles.

-mployees who are put into a new role #y the change may !eel that
they would not #e a#le to cope with their changed role.
Past e0perience within the organi2ation o!ten determents !uture
#eha)ior. there!ore #e 3udged against this e0perience and may not
#e )iewed in a !a)oura#le light.
Source: Engineering Management by Fraidoon Mazda
Source: Engineering Management by Fraidoon Mazda
BARRIERS TO CHANGE
MANAGING CHANGE
Setting
the
vision
Communicating
the change
Project
managing the
change
Flexible
policies
Putting
people
!irst
*hrough
C)%e C)n,e$t&
THE ORGANIZATION
MANAGEMENT
MANAGER
THE BUSINESS S!STEM
THE BUSINESS ENVIRONMENT
THE DECISION MA-ING PROCESS

Dimensions o! Organi"ational #ulture

3ttention to
Detail
3ttention to
Detail
/utcome
/rientation
/utcome
/rientation
People
/rientation
People
/rientation
Team
/rientation
Team
/rientation
3""ressiveness
3""ressiveness
Stability
Stability
Innovation and
%isk Takin"
Innovation and
%isk Takin"
/r"ani+ational
ulture
/r"ani+ational
ulture
De"ree to #&ic&
employees are
expected to
ex&ibit precision,
analysis, and
attention to detail
De"ree to #&ic&
mana"ers focus on
results or outcomes
rat&er t&an on &o#
t&ese outcomes are
ac&ieved
De"ree to #&ic&
employees are
encoura"ed to be
innovative and to
take risks
De"ree to #&ic&
mana"ement
decisions take into
account t&e effects
on people in t&e
or"ani+ation
De"ree to #&ic&
#ork is
or"ani+ed around
teams rat&er t&an
individuals
De"ree to #&ic&
employees are
a""ressive and
competitive
rat&er t&an
cooperative
De"ree to #&ic&
or"ani+ational
decisions and
actions emp&asis
maintainin" t&e
status 0uo