Transformational Change- OCD
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This document discusses organizational design and culture change for transformational change. It describes how change is initiated by executives and managers in response to disruptions, involves multiple stakeholders, and requires significant learning. The document outlines mechanistic and organic design alternatives and how design elements like structure, work processes, and HR practices differ between the two. It also discusses integrating strategic change by aligning strategy, planning, and involving individuals and groups. Finally, it defines culture change and the components and process of implementing culture change, including formulating a vision, leadership commitment, socializing newcomers, and modifying the organization.
Transformational Change- OCD
- 1. By: Mehak Chawla Sushmita Saxena Priya Singh Vritti Dhawan Anit Mittal
- 2. TRANSFORMATIONAL CHANGE - INTRODUCTION
- 3. Change is Triggered by Environmental and Internal Disruptions Change is Initiated by Senior Executives and Line Managers Change is Systematic and Revolutionary Change involves Significant Learning and a New Paradigm Change Involves Multiple Stakeholders
- 5. CONCEPTUAL FRAMEWORK Business Strategy Strategic Fit Design Fit Organisation Structure Management Processes HR Practices Work Design
- 6. DESIGN ALTERNATIVES Parameters Mechanistic Design Organic Design Strategy • Cost Minimization • Innovation Structure • Formal/ Hierarchical • Functional • Flat, Lean, Flexible • Matrix, Process and Network Work Design • Traditional Jobs • Traditional Work Groups • Enriched Jobs • Self Managed Teams HR Practices • Selection to fit job • Up-front Training • Standard reward mix • Pay for performance and individual merit • Job-Based Pay • Selection to fit organisation • Continuous Training • Individual choice reward • Pay for performance & business Success • Skill-based pay Management Processes • Centralized decision making • Top Down Goal Setting & Communication • Employee Involvement • Transparent Information
- 7. DESIGN CHARACTERISTICS FOR WORLDWIDE STRATEGIC ORIENTATIONS Worldwide strategic Orientation Business Strategy Structure Management Processes Human Resources International • Existing Products • Goals for Increased foreign revenues • International Division • Loose but centralized learning orientation • Volunteer Recruitment • Retain existing performance management processes Global • Standardized products • Goals of efficiency through volume • Global Product divisions • Global functions • Formal & Centralized • Ethnocentric Selection • Rewards for enterprise performance Multi-national • Tailored Products •Goals of local responsiveness specialization • Decentralized Operations & Centralized Planning • Global Geographic Division • Profit Centers • Re-giocentric & Poly- centric selection • Rewards for regional performance Transnational • Tailored Products • Goals of learning and responsiveness through integration • Decentralized, worldwide coordination •Global Matrix/ network • Subtle, clan-oriented controls learning orientation • Geocentric Selection
- 8. APPLICATION STAGES Diagnosing the current design Designing the organisation Implementing the design
- 10. INTEGRATED STRATEGIC CHANGE (ISC) Integrated Strategy Change is process that leads an organization through a realignment between dynamic environment and a firms strategic orientation that results in improvement of performance and effectiveness It includes transformations in organizational strategies and designs Helps managers manage transition between current strategic orientation and desired future orientation
- 11. KEY FEATURES OF ISC Strategic Orientation (Strategy and Org. Design) Creating the Strategic Plan (Planning and Implementation) Integrating Individuals and Groups into the Process (Analysis, Planning & Implementation)
- 12. PROCESS OF ISC
- 13. STAGES OF ISC
- 14. CULTURE CHANGE
- 15. CULTURE CHANGE Culture change emphasizes the influence of cultural capital on individual and community behavior. It has been sometimes called repositioning of culture, which means the reconstruction of the cultural concept of a society. Difficult problems for collecting pertinent information: 1. Culture Basic Assumptions are taken for granted and are less communicated. Espoused Values 2. Values and Beliefs Values In Use 3. Subcultures: Differential cultures
- 16. CULTURE COMPONENTS Artifacts- Includes member behaviors clothing, language, the organization design features, including structures, systems and processes; and the organization physical arrangements, such as décor, office space layouts and appointments and noise levels. Norms and Values- Norms guide how members should behave in particular situations. Values are next deeper level of awareness and include beliefs about what ought to be in the orgs. Basic Assumptions- Tell members how to perceive, think and feel about things. They are non-confrontable and nondebatable assumptions about relating to the environment and about human nature, human activity and human relationships.
- 17. IMPLEMENTING CULTURE CHANGE PROCESS Formulate a clear strategic vision Display top management commitment Model culture change at the highest levels Modify the organization to support organizational change Select and socialize newcomers and terminate deviants.
- 18. THANK YOU
Editor's Notes
- #17: Artifacts- visible symbol of deeper levels of culture, such as norms, values and basic assumptions. Includes member behaviors clothing, language, the org. design features, including structures, systems and processes; and the org. physical arrangements, such as décor, office space layouts and appointments and noise levels. 1st diagnosis: groups of people are asked to generate lists of language patterns, clothing norms, office arrangements and design features. By this, artifacts can provide a great deal of information about the real culture of the org. because they often represent deeper assumptions. Difficulty is in Interpretation while culture analysis. 2nd diagnosis: emphasizes the pattern of behaviors that produce business results. Assesses the key behaviors that can be observed. Provides specific descriptions about how org. perform tasks and manage relationships. Norms and Values- norms guide how members should behave in particular situations. They are generally inferred from observing how members behave and interact with each others. Values are next deeper level of awareness and include beliefs about what ought to be in the orgs. Values in use, as opposed to espoused values, tell members what is important in the org and what deserves their attention. Diagnosis: Values: a value dilemma consists of contrary values placed at the opposite ends of a continuum. Two value dilemmas are 1.) internal focus and integration versus external focus and differentiation 2.) flexibility and discretion versus stability and control. Basic assumptions- tell members how to perceive, think and feel about things. They are non-confrontable and nondebatable assumptions about relating to the environment and about human nature, human activity and human relationships. 1st OD method: Iterative interviewing process involving both outsiders and insiders. Outsiders help members to uncover cultural elements through joint exploration. Outsider enters the org and experiences surprises and puzzles that are different from what was expected. Outsider shares these observations with the insiders and the two parties jointly explore their meaning. Results in a formal written description of assumptions underlying an org culture. 2nd OD method: a group of people called for culture workshop. The group first brainstorms a large number of org. artifacts, such as behaviors, symbols, language and physical space arrangements. From this list, values and norms that would produce such artifacts are deducted. Finally a facilitator asks the group to identify the assumptions that would explain the constellation of often conflicting values, norms and artifacts.