Professional Documents
Culture Documents
C H A P T E R
F I F T E E N
Organizational Change
and Development
Continuous Change at Nokia
Nokia has
continually
adapted to its
changing
environment. The
Finnish company
began as a pulp
and paper mill in
1865, then moved Courtesy National Board of Antiquities, Finland
Reduction in Hungary
employment Mexico
S. Korea
Germany
Mergers, United States
divestitures, Japan
acquisitions
Major
restructuring
Step 2: Changing
Attempting to ta te
create a new state S
w
of affairs Ne
Step 1: Unfreezing
Recognizing the te
t a
need for change
n tS
urr e
C
4
Sensitivity Objective
groups data
Group members
recognize problem
Diagnose group’s
strengths and
weaknesses
Team
Building:
Restart process
Develop desired
change goals
Its Basic
Develop action plan
to make changes Steps
Implement plan
Evaluate plan
if unsuccessful
if successful
Process
completed
5
When Will It Occur?
Change
If benefits exceed costs is made
Amount of dissatisfaction
with current conditions
Compared Cost of
Benefit of to
Availability of a making
making
desirable alternative change
change
6
Some External Forces for Change
Information
Technology
Globalization
& Competition
Courtesy National Board of Antiquities, Finland
Demography
Force Field Analysis
Desired Restraining
Forces
Conditions
Restraining
Driving
Forces Forces
Restraining
Forces
Current
Driving
Forces
Conditions
Driving
Forces
Direct Costs
Saving Face
Incongruent Systems
Communication
Coercion Training
Minimizing
Resistance
Negotiation
to Change Employee
Involvement
Stress
Management
Refreezing the Desired Conditions
40
30 (23.55)
20
Individual Organizational
outcomes outcomes
(e.g., job (e.g., profit) (Source: Porras and Robertson, 1992.)
satisfaction)
17
Action Research Process
Establish
Client-
Consultant
Relations
Diagnose Evaluate/
Introduce
Need for Stabilize
Change
Change Change
Disengage
Consultant’s
Services
Parallel Structures
Parallel
Organization
Structure
Appreciative Inquiry Process
• Cross-Cultural Concerns
– Linear and open conflict assumptions
different from values in some cultures
• Ethical Concerns
– Management power
– Employee privacy rights
– Employee self-esteem
– Consultant’s role
The Ethics of OD:
Summary of the Debate
OD is
ethical
22
Discussion of Activity 15.3
Strategic Change Management
23
Scenario #1: “Greener Telco”
Scenario #2 refers to
Continental Airline’s “Go
Forward” change strategy,
which catapulted the
company “from worst to
first” within a couple of
years.
Courtesy of Continental Airlines
Continental Airlines’ Change Strategy
Communicate, communicate,
communicate
Introduced 15 performance
measures
Established stretch goals
(repainting planes in 6 months)
Replaced 50 of 61 executives
Rewarded new goals (on-time
arrival, stock price)
Courtesy of Continental Airlines
Customers as drivers of change