Contributing factors to the accelerating

rate of change Identification of ways an organization uses renewing process to adapt change Determine the individual and group methods of coping with change Understand and apply the socio-technicalsystem approach to OD

The challenge of change

Market , product and competitive condition are rapid

ally changes Under these pressure origination are changing Organization are downsizing , reengineering, flattering structure, going global and initiating more sophisticating technology Downsizing effect on moral, trust and productivity of employees

Renewal
Top managers make adaptive change There are organization who : 1. Effectively manage change 2. Continuously adopting their bureaucracies, 3. Strategies, 4. System 5. Product and culture Organizations adopt these practices to survive: 1. from shocks, 2. Prosper from the forces

Focus of OD
Changing organization system
Stressing the situation, nature of problems and their

system wide impact Solving given problem manager must use system approach and analyse: The organization Its departmental system interrelationship Possible effects on internal environment Case of singer machine and mobile industry

Constant change
Innovation are often quickly and being overtaken by

competitors with technology improvement This result due to rate of change Todays manager face risk situation Organization must have capacity to adapt If you want to make revolution , you have to start up with unleashing(let loose) revolutionary product and idea

Organization renewal: adapting to change

Organization renewal is an ongoing processes of

building innovation and adaption into the organization Managing effectively is a major challenge facing organization today when an organization fail to change it effect on its survival Organization must adapt itself by introducing internal changes that will allow it to be more effective

Entropy
Principal of physics stating that everything that is

organized will breakdown or run down unless it is maintained Organizational renewal , then, is an approach to preventing corporate entropy Why change so difficult? 1. Due to culture of organization 2. Organization structure , procedures, and relationship continue to reinforce prior pattern of behaviour and to resist new ones

Lesson in corporate renewal

1.
2. 3.

4.
5. 6. 7. 8.

Informed opportunism Direction and empowerment Friendly facts A different mirror Team work and trust Stability in motion Attitude and attention Cause and commitment

1. Informed opportunism
Renewing organization set direction
Have not detail strategy Treat information as their main strategic advantage

Flexibility as their main strategic weapon

2. Direction and empowerment

Renewing companies treat everyone as a source of

creative input They give up some control over subordinate to gain what counts: Results

3. Friendly facts
Renewing companies treat facts as friends
Financial control as liberating They love facts and information that remove decision

making from mere opinion

4. Different mirror
Leader get determination from their ability to

anticipate crises Willingness to listen all sources-to look into different mirror

5. Team work and trust

Renewing constantly use such words as teamwork

and trust They are relentless (persistence) at fighting office politics

6. Stability in motion
Renewing companies know how to keep thing moving
They undergo constant change against a base of

underlying stability

7. Attitude and attention

Visible management attention gets thing done
Action may start with words but must backed by

behaviour

8. Causes and commitment

Renewing organization run on causes
Commitment result from management ability to run

grand cause into small action so that every one can contribute

Approaches to change
Satiability and adaption are essential to continued

survival and growth Organization that operate in mature field with stable product and relatively few competitors need different adaptive orientation than : Firm operating in high growth market , among numerous competitors, and with high degree of innovation

Stable environment characteristic

1.
2. 3.

4.
5.

Unchanging basic product and services Static level of competition A low level of technological innovation Formalized and centralized structure Slow steady rate of growth

Hyper turbulent environment

Rapidly changing product line 2. Increasing and changing set of information 3. Rapid and continual technology innovation 4. Rapid market growth
1.

Approaches to change
Static organization can no longer survive Organization must device methods of continues self

renewal Organization must recognize when it is necessary to change Must develop ability to implement change when needed To meet this condition many companies have created OD units These units develop new programs to help the organization improve its adaption to its environment and maintain stable identity

A model of adaptive orientation

Sluggish-Thermostat(stable environment, low adoption ) 2. Satisficing management (stable environment , high adoption) 3. Reactive management (hyper turbulent environment- low adoption) 4. Renewing /transformational management (hyper turbulent environment , high adoption )
1.

Sluggish-Thermostat(stable environment, low adoption )

David miller describe organization resist change until

cost trade off favour it Organizations set their thermostat so low that they become incentive to change

Sluggish management
Refers to managerial style based on:
1. 2.

3.
4. 5. 6. 7. 8.

Low risk Formalized procedure High degree of structure and control Organizations have very stable goals High centralized structure Tend to have more managerial level High ratio of superiors to subordinate Emphasis upon formal control system

Sluggish management
There may be tendency to value tradition
Keep on doing things as they have always been done to

value seniority more than performance To be adverse to accept new idea Although this is low risk style of management, it may lead to serious problem in long run

Satisfying management (stable environment , high adoption)

Management that is adequate and average Style of management that emphasize a more centralized

decision making structure with problem referred to top Because of stable environment here tend to be more levels of management, with coordination done by formal coordination Such organization often tend to accept strategies that are good enough because of the low level of pressure from environment

Reactive management (hyper turbulent environment- low adoption)

Rapidly change environment Low level of adoption Tend to deal with problem on short run, crises basis Reactive management: style of reacting to stimulus after

conditions in the environment have changed It is Short term Crises type of adoption Often involve replacement of key people Hasty organization Drastic cutting of personnel and product line

Renewing /transformational management (hyper turbulent environment , high adoption )

Respond to change and must proactively take advantage of

new opportunity and innovation These organizations tend to fit the renewal/transformational orientation Champion of innovation Faster at developing new idea More responsive to competitive change More participative in getting commitment Involvement of organization members in renewal process Organization utilize renewing managerial style

Renewing /transformational management

Introducing change to deal with future condition

before these condition actually occur General motors, 3M, IBM( on demand product) Renewing management orientation has both ability and need to respond to hyper turbulent environment Most modern organization are increasingly finding the need for adoptive organization

The system approach: Findings new ways to work together

View the organization as a unified system composed of

interrelated units Mangers look at the organization as a whole and part of larger external environment In downsizing mangers may be used system approach to determine how to cut cost One approach is Horizontal corporation: break the component into key process and creates team from different department to run them Communication with employees and customer

Qualities of system
System must be design to accomplish an objective
The element of system must have an established

arrangement Interrelation must exist among the individual elements of system The basic ingredients of process(the flow of information, energy, and materials) are more vital than the basic element of system Organization overall objectives are more important than the objective of elements

The organization as an open system

Flow of information, personnel, and material
Time and change become critical aspect Three basic element of such system

1. Inputs are the resources that are applied to the

process function 2. Process are activities and function that are performed to produced goal 3. Outputs products are services produced by the organization

The sociotechnical system

Coordinating human and technical activities
1. 2.

3.
4. 5.

Organize around process Flatten the hierarchy Use team to manage everything Let customers drive performance Reward team performance

Primary component of organization

Goal and value subsystem
Technical system The structural subsystem

The psychological subsystem(culture)

The managerial subsystem

Goal and value subsystem

Basic mission and vision
Profits Growth

Survival and are taken from larger enviornment

Technical system
Primary function
Activities Operation including technical and equipment , used

to produce the output of the system

The structural subsystem

Formal design
Policies and procedure Set forth by organizational chart

Division of work
Pattern of authority

The psychological subsystem

Network of social relationship
Behavioural pattern of members, such as norms, roles,

and communication

Managerial subsystem
Directing
Organizing Coordinating all activities toward common goal

Integrating the activities of other system

Organization transformation Action of changing an organizations form , shape, or appearance , or change the organization energy from one form to another Unplanned changes within system in response to crises and lifecycle consideration Second order changes Significant changes introduce in short, almost immediate time frame to deal with survival or crises type problem

Organization development

Focus on planned changes introduced by practitioner First order change Large scale change over a longer time frame on a more gradual basis

Planned change process

Deliberate attempt to modify the functioning of the

total organization or One of the major parts in order to bring about improved effectiveness Practitioner bring about this change Organization being change called as client Planned change effort can focus on individual , team, or organization behaviour

Individual effectiveness
Organization made up of members
Each member has unique value of beliefs, and

motivation Top management form the culture of organization Organization effectiveness increase through culture that achieve goal and satisfies members need Empowering the employees

Individual effectiveness
Manger ability to unlock the employee potential that

result into an immense source of product energy This improve leadership, decision making , or problem solving among organization members Develop better manager and employees will make more effective organization

Team effectiveness
Change effort may also focus on:
Fundamental unit of organization the team or group As mean for improving the organization effectiveness Concept of High involvement or self-managed work

teams Organization must elicit the commitment of its employees Improve problem solving process while work through conflicts and issues surrounding ways the group an improve it effectiveness and productivity

 Activities are designed to improve the operation

of work team Task activities : what the team does Team process: how the team work and the quality of relationship among team members Process observation: Technique used in examining group activities I. Contents- the task of group II. Process the way the group function

Organization effectiveness
OD planned change efforts is organization system
Total organization many be examined through climate

survey Planned change program are designed to deal with specific problem area indentify in the survey Improve effectiveness by structural, technical, or managerial subsystem change Objective is to increase effectiveness, efficiency, moral of total organization functioning

 Planned change efforts aims aim at improving the

overall goal attainment of such system This focus on change program OD occur when the change effort is focused on total system OD may involve individual, group, and inter group approaches It become OD only when total system is target for change In OD set of goals or purposes indentified, and course of action is undertaken involving the commitment of organization members to organization improvement