Org Dev Change

Organization Development and Change
MGMT 550 Spring, 2001
2/19/2014
Pfeiffer/Kolkena
Agenda
Why Change? Organization Development and Change Personal Change Organization Change Application Debate: Must pain precede organization change?
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Why do Organizations Change?
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Economic and Social Forces Driving the Need for Major Change and Interventions in Organizations
Technological Change
Faster and better communication Faster and better transportation More information networks connecting people globally
International Economic Integration
Fewer tariffs (GATT) Currencies linked via floating exchange rates More global capital flows
Maturation of Markets in Developed Countries

Slower domestic growth More aggressive exporters More deregulation
Fall of Communist and Socialist Regimes

More countries linked to the capitalist system More privatization
The Globalization of Markets and Competition More Hazards

More competition Increased speed
More Opportunities
Bigger markets Fewer barriers
To avoid hazards and/or capitalize on opportunities, firms must become stronger competitors. Typical transformation methods include: -Reengineering -Mergers and acquisitions -Restructuring -Strategic change -Quality programs -Cultural change 2/19/2014 Pfeiffer/Kolkena 4
More Large-Scale Change in Organizations
Organization Development and Strategy
Planned long-term, system-wide changes and interventions that enable strategies to be developed and implemented.
Change Targets:
Organizational goals and objectives Organizational structure Human resources Technological improvements Job design Budgets
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Change Impacts:
Cultural Work methods Motivation and performance Psychological/emotional issues Social relationships
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Change and Transition
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Lewins Change Model

Unfreeze Change Refreeze
Decrease strength of old values, attitudes, behaviors disconfirming data

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Facilitation and training to minimize resistance
Institutionalize and stabilize reinforce the change through new norms and operating procedures
9
Pfeiffer/Kolkena
Strategic Change Model

S1
S2
O1
O2
Hitchin and Worley

What Affects Organizational Transition and Transformation?

Absorption rate Transition period Alignment
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OD - The Softer Side of Business:

Personal capability and development Group and team capability development Interpersonal and group relations Organization climate and capability Structural development and alignment Communication processes and effectiveness Collaboration
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OD Approaches :
Data collection, assessment, analysis, and feedback Training and education using multiple modalities (experiential, case, classroom, et al.) Task analysis Process analysis Gap analysis Role play/simulation Empowerment through participation
OD and Organization Health:

Openness Problem-solving atmosphere Trust Participation Self-control Self-direction Ability to deal with change and resistance to change
Resistance to Change???!!!
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Implications of Change
We must:

Understand change Prepare for the constancy of change Learn how to manage transitions now and on an ongoing basis
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Change and Transition

Change
A situational event External Often starts with a new beginning

Unless transition management occurs, change will not work.
William Bridges
Transition
A process over time Internal Must start with an ending

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What are the reactions to change?
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Reactions to Change
Endings
Denial Anger Shock Fear Frustration Depression Confusion Relief Stress Approach-Avoidance
New Beginnings
Energy Enthusiasm Hope Anxiety Impatience
Chaos
Acceptance
Skepticism
Creativity
Neutral Zone
What do people need in times of change?
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What People Need

During each phase of transition, people need:
Support Information Structure
Why do they need these things?
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What are the phases of transition?
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3 Phases of Transition
Whether you perceive the change as positive or negative, you will always experience a transition.
Phase 1: Endings Loss Grieving Letting go
Phase 2: Neutral Zone Temporary state between old and new Exploration Creativity and chaos
Phase 3: New Beginnings Energy and uncertainty New opportunities Renewal and realignment
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A View of Endings
Endings Characteristics:
Loss of: Identity Control Meaning Belonging Turf Relationships Structure
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Endings Reactions:
Denial Anger Shock
Endings Goal: Letting go of what youre losing
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A View of the Neutral Zone

Neutral Zone Characteristics: Neutral Zone Reactions:
Resistance to change and the unknown Exploration of new opportunities Fear Anger Frustration Confusion Approach-Avoidance Creativity Skepticism Acceptance Impatience Hope
25
Neutral Zone Goals:
Managing fear Beginning to explore Trying out future possibilities

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A View of New Beginnings

New Beginnings Characteristics:
Commitment Actions
New Beginnings Reactions:

Energy Anxiety Enthusiasm
New Beginnings Goal:
Achieve the new beginning

How important is productivity, employee satisfaction and organization climate?
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27
OD Emphases:
Diagnosing the needs of a system Planning intervention Gaining managerial sponsorship Assessing sociopolitical and technical dimensions
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Large Scale Change
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Beckhard and Harris

Why Change? Define Desired Future State Describe Present State
the Present in Terms of the Future to Determine the Work to be Done Manage During the Transition State
Getting From Here to There: Assess
Process for Creating Change

Establish a sense of urgency Create a coalition Develop a vision and strategy Communicate the change vision Encourage broad-based action Generate short-term wins Keep track of gains and create more change Embed new approaches into the culture
Establish a Sense of Urgency

Examine the market and competitive realities Identify and discuss crises, potential crises and major opportunities
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Create a Coalition
Put together a group with enough power to lead the change Get the group to work together as a team
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Develop a Vision and Strategy

Create a vision to help direct the change effort Develop strategies for achieving that vision
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Communicate the Vision

Use every vehicle possible to constantly communicate the new vision and strategies Have coalition model the behavior expected of others
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Encourage Broad-Based Action

Get rid of obstacles Change systems or structures that undermine the change vision Promote risk taking and nontraditional ideas, activities, and actions
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Generate Short-Term Wins

Plan for visible improvements in performance, or wins Create those wins Visibly recognize and reward people who made the wins possible
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Keep Track of Gains and Create More Change

Use increased credibility to change all systems, structures, and policies that dont fit together and dont fit the transformation vision Hire, promote, and develop people who can implement the change vision Reinvigorate the process with new projects, themes, and change agents
Embed New Approaches into the Culture

Create better performance through customer- and productivity-oriented behavior, more and better leadership, and more effective management Articulate the connections between new behaviors and organizational success Develop means to ensure leadership development and succession

Org Dev Change

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Organization Development and Change

MGMT 550 Spring, 2001

Why do Organizations Change?

International Economic Integration

Maturation of Markets in Developed Countries

Fall of Communist and Socialist Regimes

The Globalization of Markets and Competition More Hazards

More Large-Scale Change in Organizations

Organization Development and Strategy

Change and Transition

Lewins Change Model

Decrease strength of old values, attitudes, behaviors disconfirming data

Facilitation and training to minimize resistance

Strategic Change Model

Hitchin and Worley

What Affects Organizational Transition and Transformation?

OD - The Softer Side of Business:

OD and Organization Health:

Change and Transition

A situational event External Often starts with a new beginning

A process over time Internal Must start with an ending

What are the reactions to change?

What do people need in times of change?

What People Need

Support Information Structure

Why do they need these things?

What are the phases of transition?

Phase 1: Endings Loss Grieving Letting go

Endings Goal: Letting go of what youre losing

A View of the Neutral Zone

Neutral Zone Goals:

Managing fear Beginning to explore Trying out future possibilities

A View of New Beginnings

New Beginnings Reactions:

New Beginnings Goal:

Achieve the new beginning

How important is productivity, employee satisfaction and organization climate?

Large Scale Change

Beckhard and Harris

Getting From Here to There: Assess

Process for Creating Change

Establish a Sense of Urgency

Develop a Vision and Strategy

Communicate the Vision

Encourage Broad-Based Action

Generate Short-Term Wins

Keep Track of Gains and Create More Change

Embed New Approaches into the Culture

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