Organization renewal: the challenge of change

Organization renewal: the challenge of change Contributing factors to the accelerating rate of changeIdentification of ways an organization uses renewing process to adapt change Determine the individual and group methods of coping with changeUnderstand and apply the socio-technical-system approach to OD The challenge of change Market , product and competitive condition are rapid ally changes Under these pressure origination are changingOrganization are downsizing , reengineering, flattering structure, going global and initiating more sophisticating technologyDownsizing effect on moral, trust and productivity of employeesRenewal Top managers make adaptive change There are organization who :Effectively manage changeContinuously adopting their bureaucracies, Strategies,SystemProduct and culture Organizations adopt these practices to survive: from shocks,Prosper from the forces

Focus of ODChanging organization systemStressing the situation, nature of problems and their system wide impactSolving given problem manager must use system approach and analyse: The organization Its departmental system interrelationshipPossible effects on internal environmentCase 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 changeTodays manager face risk situationOrganization 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 organizationManaging effectively is a major challenge facing organization todaywhen an organization fail to change it effect on its survivalOrganization 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 entropyWhy change so difficult?Due to culture of organization Organization structure , procedures, and relationship continue to reinforce prior pattern of behaviour and to resist new ones

Lesson in corporate renewal Informed opportunismDirection and empowermentFriendly facts A different mirrorTeam work and trustStability in motionAttitude and attentionCause and commitment 1. Informed opportunismRenewing organization set directionHave not detail strategyTreat information as their main strategic advantageFlexibility as their main strategic weapon

2. Direction and empowerment Renewing companies treat everyone as a source of creative inputThey give up some control over subordinate to gain what counts: Results3. Friendly factsRenewing companies treat facts as friendsFinancial 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 crisesWillingness to listen all sources-to look into different mirror

5. Team work and trust Renewing constantly use such words as teamwork and trustThey are relentless (persistence) at fighting office politics

6. Stability in motion Renewing companies know how to keep thing movingThey undergo constant change against a base of underlying stability

7. Attitude and attentionVisible management attention gets thing doneAction may start with words but must backed by behaviour

8. Causes and commitment Renewing organization run on causesCommitment 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 characteristicUnchanging basic product and servicesStatic level of competitionA low level of technological innovationFormalized and centralized structure Slow steady rate of growth Hyper turbulent environment Rapidly changing product lineIncreasing and changing set of informationRapid and continual technology innovationRapid market growth

Approaches to change Static organization can no longer surviveOrganization must device methods of continues self renewal Organization must recognize when it is necessary to changeMust develop ability to implement change when neededTo 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 orientationSluggish-Thermostat(stable environment, low adoption )Satisficing management (stable environment , high adoption) Reactive management (hyper turbulent environment- low adoption)Renewing /transformational management (hyper turbulent environment , high adoption )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 managementRefers to managerial style based on:Low riskFormalized procedureHigh degree of structure and controlOrganizations have very stable goalsHigh centralized structure Tend to have more managerial levelHigh ratio of superiors to subordinateEmphasis upon formal control systemSluggish managementThere may be tendency to value traditionKeep on doing things as they have always been done to value seniority more than performanceTo be adverse to accept new ideaAlthough 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 topBecause of stable environment here tend to be more levels of management, with coordination done by formal coordinationSuch 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 environmentLow level of adoptionTend to deal with problem on short run, crises basisReactive management: style of reacting to stimulus after conditions in the environment have changed It is Short termCrises type of adoptionOften involve replacement of key people Hasty organizationDrastic 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 innovationThese organizations tend to fit the renewal/transformational orientationChampion of innovationFaster at developing new ideaMore responsive to competitive change More participative in getting commitment Involvement of organization members in renewal processOrganization utilize renewing managerial style Renewing /transformational management Introducing change to deal with future condition before these condition actually occurGeneral motors, 3M, IBM( on demand product)Renewing management orientation has both ability and need to respond to hyper turbulent environmentMost modern organization are increasingly finding the need for adoptive organizationThe system approach: Findings new ways to work togetherView the organization as a unified system composed of interrelated unitsMangers look at the organization as a whole and part of larger external environmentIn 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 customerQualities of systemSystem must be design to accomplish an objectiveThe element of system must have an established arrangementInterrelation 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 systemOrganization overall objectives are more important than the objective of elements

The organization as an open systemFlow of information, personnel, and materialTime and change become critical aspectThree basic element of such systemInputs are the resources that are applied to the process function Process are activities and function that are performed to produced goalOutputs products are services produced by the organization

The sociotechnical systemCoordinating human and technical activitiesOrganize around processFlatten the hierarchyUse team to manage everythingLet customers drive performanceReward team performance Primary component of organizationGoal and value subsystemTechnical systemThe structural subsystem The psychological subsystem(culture)The managerial subsystem Goal and value subsystemBasic mission and visionProfitsGrowthSurvival and are taken from larger enviornment

Technical systemPrimary functionActivitiesOperation including technical and equipment , used to produce the output of the systemThe structural subsystemFormal designPolicies and procedureSet forth by organizational chart Division of workPattern of authority

The psychological subsystem Network of social relationshipBehavioural pattern of members, such as norms, roles, and communication

Managerial subsystem DirectingOrganizing Coordinating all activities toward common goalIntegrating the activities of other system Organization transformationOrganization development 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 Focus on planned changes introduced by practitioner Second order changes First order change Significant changes introduce in short, almost immediate time frame to deal with survival or crises type problem 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 orOne of the major parts in order to bring about improved effectiveness Practitioner bring about this changeOrganization being change called as client Planned change effort can focus on individual , team, or organization behaviour Individual effectiveness Organization made up of membersEach member has unique value of beliefs, and motivationTop management form the culture of organizationOrganization effectiveness increase through culture that achieve goal and satisfies members needEmpowering the employeesIndividual 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 groupAs mean for improving the organization effectivenessConcept of High involvement or self-managed work teamsOrganization 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 doesTeam process: how the team work and the quality of relationship among team members Process observation: Technique used in examining group activitiesContents- the task of groupProcess the way the group function

Organization effectiveness OD planned change efforts is organization systemTotal organization many be examined through climate surveyPlanned change program are designed to deal with specific problem area indentify in the surveyImprove 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 systemThis focus on change programOD occur when the change effort is focused on total systemOD may involve individual, group, and inter group approachesIt 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