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1 ChangeandChanging DrIanTowersBerlinNovember2011 2 Outline ThoughtsaboutchangeChangeManagementChangeManagementToolsConclusion 3 FourQuestions 4 5 Whychange Whatdoyouthink Whatarereasonsforstartinganorganisationalchange 6 WhyChange Changeisariskyactivity manyorganizationalchangesfailordonotrealizetheirintendedoutcomes Thisraisesthequestion whyischangesoprevalent Pressuretochangecomesfrom External environmentalpressuresInternal organizationalpressures WhyChange ExternalPressuresFashionMandatedGeopoliticalMarketdeclineHyper competitionReputation credibilityInternalPressuresGrowthIntegration collaborationIdentityNewbroomPower political 7 EnvironmentalPressures WhyChange ExternalPressuresFashionMandatedGeopoliticalMarketdeclineHyper competitionReputation credibilityInternalPressuresGrowthIntegration collaborationIdentityNewbroomPower political 8 EnvironmentalPressures WhyChange ExternalPressuresFashionMandatedGeopoliticalMarketdeclineHyper competitionReputation credibilityInternalPressuresGrowthIntegration collaborationIdentityNewbroomPower political 9 InternalPressures WhyChange ExternalPressuresFashionMandatedGeopoliticalMarketdeclineHyper competitionReputation credibilityInternalPressuresGrowthIntegration collaborationIdentityNewbroomPower political 10 InternalPressures WhyChange ExternalPressuresFashionMandatedGeopoliticalMarketdeclineHyper competitionReputation credibilityInternalPressuresGrowthIntegration collaborationIdentityNewbroomPower political 11 Whattochange StructureTechnologiesStrategiesWorkmethodsMarketCompanygoalsCultureAnd and and Whatdoyouthink Whatcanwechangeinanorganisation 12 Howtochange OrganisationDevelopment StrategicRedesign BusinessProcessReengineering LearningOrganisation TQM CultureApproach HRM 7 SFramework TheoriesX YandZ Whatdoyouthink Howmanyapproachestochangedoyouknow 13 Example BusinessProcessReengineering BPRis thefundamentalrethinkingandradicalredesignoforganisationalprocesses toachievedramaticimprovementsincritical contemporarymeasuresofperformance suchascost quality serviceandspeed 14 Example BusinessProcessReengineering DevelopavisionforyourbusinessandobjectivesforallthenecessaryprocessesIdentifytheprocessesthatmustbechangedAnalyseandevaluatetheseprocessesIdentifykeyITcomponentsDevelopandimplementthenewprocesses 15 Example BusinessProcessReengineering BPRassumesthatineffectiveundinefficientprocessesarethefactorswhichlimitorganisationalperformance NotalwaystrueBPRbeginstheprocessofimprovementwithacleansheetCompletelyignoresthestatusquoAstep by stepapproach withincrementalchange likeKaizen canbeabetterapproachBPRisaproductofUSculturalapproaches 16 ChangeDriversandChangeLevels Self 17 TypesofChange Planned Emergent Scale Incremental Radical Incremental Radical Continuousadaptations egKaizen Continuousrealignmentofthesystem egTQM CultureChange Periodicadjustments egOD Revolutionarychange egBPR Outcomesofchangearelargelyunexpectedandunintended 18 Change Levels Time Economicproblems NewStructure Independent Likesilos Newlaws Morework Stressinthecoreunits Lessmoney Smaller 19 ChangeDriversandChangeLevels Self 20 UnintendedOutcomes Newpositioncreated ChiefOperatingOfficer Whatdoyouthinkhappened Whatweretheunintendedoutcomes 21 KeyChangeChallenges Thistableoutlinesthekeychangechallengesforthreetypesofchange Theseissuesneedtobeaddressedwhenmanagingchange 22 ModelofChange UnderstandingChange TheChangeContextReport 23 Outline ThoughtsaboutchangeChangeManagementChangeManagementToolsConclusion 24 WhatisChangeManagement Strategyofplannedandsystematicchange throughaffecting OrganisationalstructureOrganisationalcultureIndividual groupbehaviour Takingintoaccountinteractionsbetween IndividualsGroupsTechnologyEnvironmentetc 25 OrganizationDevelopment IthasbeenthefundamentalbasisofthechangefieldforanumberofyearsChangeisplanned incrementalandparticipativeOutcomesarefocusedontheimprovedeffectivenessoftheorganizationLong termfocusBaseduponactionresearchEmphasisonchangingtheattitudesandbehavioursofpeopleTop downfocus 26 ImplementationPhases AnalysisofIS Situation Definitionofdesiredstate Planofaction Implementation Education Analysisofattitudes Monitoring 27 ThreePhaseModel Unfreeze Move Refreeze Forcefieldanalysis 28 ForceFieldAnalysis Change Pro Contra Strenghtensupportingforces advancethechange Weakenopposingforces workagainstallchangestothepresentstate Normalsituation Combinationofbothapproaches 29 Example Oilcompany Thisconcernhas3mainofficesinGermany Hamburg Frankfurt Berlin Objective asingleregionaloffice transferof150staffManagementexpectsresistance Whattodo 30 Example Oilcompany StrengthensupportiveforcesIncreasesalariesGenerousmovingexpensesWeakenopposingforcesIndividualdiscussionwithstaffListentoconcernsandreservationsProposesolutions 31 Kotter s8Steps 1 EstablishasenseofurgencyExaminemarketandcompetitiverealitiesIdentifyanddisusscrises potentialcrisesandopportunities 2 FormapowerfulguidingcoalitionAssembleagroupwithenoughpowertoleadthechangeeffortEncouragethegrouptoworkasateam I Setthestage Tools Projectplan 32 Kotter s8Steps 3 DeveloptheChangeVisionandStrategyCreateavisiontohelpdirectthechangeeffortDevelopstrategiesforachievingthatvision 4 CommunicatetheVisionUseeveryvehiclepossibletocommunicatethenewvisionandstrategiesTeachnewbehaviorsbytheexampleoftheguidingcoalition I Setthestage Tools BrainstormingetcCommunicationplanStakeholderanalysis 33 Kotter s8Steps 5 EmpowerOtherstoActontheVisionGetridofobstaclestochangeChangesystemsorstructuresthatseriouslyunderminethevisionEncouragerisk takingandnon traditionalideas activities andactions 6 PlanforandCreateShort TermWinsPlanforvisibleperformanceimprovementsCreatethoseimprovementsRecognizeandrewardemployeesinvolvedintheimprovements II Makeithappen Tools Stakeholderanalysis Culture workProjectplan 34 Kotter s8Steps 7 ConsolidateImprovementsandProduceStillMoreChangeUseincreasedcredibilitytochangesystems structures andpoliciesthatdon tfitthevisionHire promote anddevelopemployeeswhocanimplementthevisionReinvigoratetheprocesswithnewprojects themes andchangeagents 8 InstitutionalizeNewApproachesArticulatetheconnectionsbetweenthenewbehavioursandorganizationalsuccessDevelopthemeanstoensureleadershipdevelopmentandsuccession II Makeithappen Tools ReinforcenewcultureHRactivities 35 NorfolkSouthern CaseStudy WhenKatieFrazierfirstjoinedNorfolkSouthern sAtlantaterminal shefeltitwasrunningwellbutstillfeltmorecouldbedonetoimproveoperations Shewasalsoconcernedaboutsafetyissues Shewasstrugglingwithhowtohelpthecompanytakeitssafetyandoperationsstandardsfromjust goodenough toahigherlevel Thisiswhatshedid 36 Katiestartedbytryingtocreateasenseofurgencyaroundawillingnesstoraisesafetyandoperationalstandards Throughevaluationoftheseproblems notonlybyKatiebutalsobythebroaderleadershipteam peoplebegantofeelthaturgencywasmorethanjustthelatestfad ThatprocessofraisingtheurgencylevelinsidetheAtlantaterminalofNorfolkSoutherntookabout2monthsfromstarttofinish Step1 Establishasenseofurgency 37 Aftersufficienturgencywasraised aguidingcoalitionformedmadeupofafewconductors engineers supervisors Katie sfearwasthatthegroupwastoohomogenous sheactuallywantedtoincludeafewofthecompany smoreskepticalemployeestogettheirfeedbackandhelpstrengthenthegroup sdecisionmaking TheGuidingCoalitionbeganmeetingregularlyandcalledthemselves TheIcebergGroup Thisgroupstartedoutsmall buteventuallygrewtohaveabout9people changingovertime fromdifferentpartsoftheorganization meetingregularlytoseehowtoimplementtherestofthe8Steps Step2 Formapowerfulguidingcoalition 38 Thevisionthatthegroupcreatedwasdesignedtochangeeveryone smentalityandattitudeaboutsafety Injuriescouldnotbetreatedasanacceptableriskatarailroad theyhadtobereducedinordertogettherailroad sefficiencyupandcostsdown Step3 DeveloptheChangeVisionandStrategy 39 Communicatingthisvisionwasaconstantbattle sincemostofarailroad semployeesareonthemoveatanygiventime Furthermore mostofthecrewmembersdidnothaveaccesstomoderncommunicationslikee mail Asaresult thevisionwascommunicatedthroughavehiclecalled jobbriefings wherethedaysweather trackconditionswerediscussedforcrewsabouttogooutontothetracks Thesebriefingshappen3timesaday atthebeginningofeveryshift TheIcebergGroupstartedcommunicatingthechangevisionatjobbriefings aroundtheclock fortwoweeksstraight Overtime everycrewmemberwastouchedbythevisionmultipletimes rightattheirpointofhighestawareness beforegoingouttoworkonthetrains Step4 Communicatethevision 40 ThelargestbarrierKatiefeltsheneededtoovercomewererelatedtotheconceptofraisingthebaronsafetystandards howcanyoumakepeoplereallycareaboutthehighestpossiblesafetystandards whencurrentstandardsarealreadyhigh Thewaytodoit shesaid wastomakeitpersonal gettotheheartandnotjustthemind Theyforcedpeopletothinkabouttheirfamiliesandhowtheywouldfeelaboutaninjurytotheirlovedones Overtime themessagebegantosinkinandpeoplestartedtochangetheirbehavior Thiscreatedahighlevelofengagementwiththecrew Step5 EmpowerOtherstoActontheVision 41 TheIcebergGroupsetagoalforashorttermwin sixmonthsinjuryfreeandcommunicateditbroadly SincetheinceptionoftheIcebergGroup swork withtheexceptionofasmallmusclepull theAtlantaterminalhasgonealmost9monthsinjuryfree Otheroutcomesresultedaswell forexample becausetheterminalbecamesoproficient they veneverhadtoreducethenumberofshiftsrunning evenasothercompanieshavecutback Withinjuriesdownabout97 overlastyear theAtlantaterminalhashadfewermisseddaysofwork fewerinjury relatedcostsandmoreproductiveworkers enablingittogainacriticaladvantageoverthecompetition Step6 PlanforandCreateShort TermWins 42 Evenwiththissuccess theAtlantaterminalisn tcontenttoletup Astheycontinuetomovethroughthe8Stepprocess theyhopetomakethechangepermanentbyanchoringthesenewchangesintotheculture TheIcebergGroupcontinuestomeet lookingforotherwaysinwhichtheycanhelpthecompanyimproveitsoperations andhopefully spreadtheIcebergphilosophytootherdivisionsofthecompany Step7 ConsolidateImprovementsStep8 InstitutionalizeNewApproaches 43 OtherN StepModels TenCommandements Kanter SteinandJick1992 TenKeys Pendlebury Grouard andMeston1998 12ActionSteps Nadler1998 TransformationTrajectory Taffinfer1998 Nine PhaseChangeProcessModel Anderson Anderson2001 Step by StepChangeModel Kirkpatrick2001 12StepFramework Mento JonesandDirndorfer2002 RAND sSixSteps Light2005 IntegratedModel Leppitt2006 44 N StepModelIssues ThesequencesofstepsThenumberofstepsThetimingofstepsTheresourcingofstepsTheinvolvementineachstepManagingmultiplestepsRevisitingdifferentsteps Areallstepsneededforparticularchanges Cyclicalorlinear 45 TypicalPhasesofReactiontoChange 46 ViewsofResistance Resistancesignifiesthatnoteveryoneisonboardwiththechangeprogram Managerialskillscanbeacquiredtoovercomethis Resistanceisexpectedandrepresentsdifferentinterestswithintheorganization Itshouldbeovercomebutthisisnotalwayspossible Resistanceisshort livedandchangewilloccurregardlessofattemptstostopit Resistanceistobeexpectedandmanagersneedtoshowothersthattheresistancedoesnotpromoteeffectiveteamwork Resistanceoccurswhenthechangeisnotinterpretedwellorunderstood Themanager sroleistoclarifythemeaningofchange Resistanceisirrelevanttowhetherthechangewilloccur Resistanceisamatterofguessworkbytheresistor 47 ResistancetoChange Resistanceisaveryrealandcommonissuethatisfacedbychangemanagersduringtheprocessofchange Itcanbeconsidered tridimensional madeupofthreecomponents Affective howapersonfeelsaboutchangeCognitive whattheythinkaboutitBehavioural howtheyactorwhattheydointhefaceofchange Thebehaviouralresponsemaytakeactiveorpassiveforms 48 SignsofResistance Active BeingcriticalFindingfaultRidiculingAppealingtofearUsingfactsselectivelyBlamingoraccusingSabotaging IntimidatingorthreateningManipulatingDistortingfactsBlockingUnderminingStartingrumoursArguing 49 SignsofResistance Passive Agreeingverballybutnotfollowingthrough maliciouscompliance FailingtoimplementchangeProcrastinatingordraggingone sfeetFeigningignoranceWithholdinginformation suggestions help orsupportStandingbyandallowingchangetofail 50 WhyChangeisResisted DislikeofchangeDiscomfortwithuncertaintyPerceivednegativeeffectsofinterestsAttachmenttotheorganizationalculture identityPerceivedbreachofpsychologicalcontractLackofconvictionthatchangeisneededLackofclarityastowhatisneeded 51 WhyChangeisResisted BeliefthatthespecificchangebeingproposedisinappropriateBeliefthatthetimingiswrongExcessivechangeCumulativeeffectsofotherchangesinone slifePerceivedclashwithethicsReactiontotheexperienceofpreviouschangesDisagreementwiththewaythechangeisbeingmanaged 52 ManagingResistance A situational approach thisproposessixmethodsformanagingresistancethatshouldbechosenbasedoncontextualfactors 53 ManagingResistance TheResistanceCycle aka LetNatureTakeItsCourse hereresistancehasfourpsychologicalstatesthroughwhichpeopleprogress denial resistance explorationandcommitment Thishasimplicationsforhowmanagersmayintervene CreativeCounters toExpressionsofResistance thisfocusesonamicro aspectofchange commentsthatmightsignalresistanceandcommentsthatmanagersmayusetocountertheexpressedsentiment 54 ManagingResistance ThoughtSelf Leadership Resistancetochangecanbeovercomebyinfluencingtheperceptionsofindividualsthatdrivethewaytheyreacttochange Tinkering Thisreconfiguresexistingbusinesspracticesandmodelstomakechangesuccessful The PowerofResistance Resistancecanbeusedtobuildsupportforchangeintheorganization maintainclearfocus embraceresistance respectthosewhoresist relax joinwiththeresistance 55 ManagingResistance TheResistanceProfile ThelikelyresistorsandtheirreasonsforresistanceThelikelystrengthoftheresistorsThelikelymanifestationsoftheresistanceThepotentialfortheresistancetounderminethechangeinitiative 56 StakeholderAnalysis 57 PurposesofCommunication Ensurepeopleunderstandwhatisgoingtohappenandwhatisrequiredofthem CommunicationstrategiesneedtoensurethatthereisnomessageoverloadormessagedistortionPayattentiontoidentifyingalternativeintereststhatmaydisrupttheproposedchange Tellandsell communicationtechniquesareusedtotrytowinpeopleovertothechange Focusisonlettingpeopleknowaboutthe why ofchange thatis theinevitabilityofthechangesandhowbesttocopeorsurvivethem Identifyandreply reactive communicationstrategyisused Focusisonensuringpeoplesharesimilarvaluesandareawareofwhatactionsareappropriatetothesevalues Thefocusis gettingbuy in tothechangethroughsharedvaluesandtheuseof positiveemotions Providestaffwithasenseof whatisgoingon throughstorytelling metaphors andsoon Recognizethatnotallwillbuyintothestoryofchange buttheaimistoprovidethemostdominantaccount Rich communicationmediaaremostfavoured 58 CommunicationProcess ThewaychangeiscommunicatedisimportanttothesuccessofthechangeprogramThecommunicationprocess ormix includeselementssuchascontent voice tone message audience medium frequencyandconsistency Manyproblemscandisturbtheprocessofcommunication messageoverloadmessagedistortionandmessageambiguity 59 Language Power Gender Communication Language power genderandemotioncanimpactthecommunicationofchange Languagereflectsandreinforcesunderlyingsocialandpowerrelationships Genderdifferences alsoaffectthisprocess Threeexamplesofthedifferenceare GettingcreditConfidenceandboastingAskingquestionshowfeedbackisgivenandreceivedhowcomplimentsareexchangedwhetherthecommunicationisdirectorindirect 60 Emotion Communication Emotionislinkedtochange andcanalsocontributetothebreakdownofthecommunicationprocess Individualscanperceivethatorganizationalchangecanharmthempersonally thustheiremotionalstateandsenseofidentityarethreatenedbychangesituations Managerscanusethreetechniquestoavoidthesesituations PerspectivetakingThreat reducingbehaviourReflection 61 CommunicationStrategies Howmuchcommunicationdependingonthechangeandtheimageofthechangemanagerthelevelandextentofcommunicationcanvary Gettingwordoutorbuyinthisdifferentiatesbetweenfocusingthecommunicationprocessontheprovisionofinformationorgainingparticipationintheprocess 62 CommunicationStrategies Contingencyapproachestocommunicatingstrategyvarydepending onthetypeofchange e g DevelopmentalorincrementalTask focusedCharismaticTurnaroundonthestageofchangee g PlanningEnablingLaunchingCatalyzingMaintaining 63 CommunicationMedia Richness Variesin richness dependingonhowpersonalisitsabilitytocommunicatechangeThereisahierarchyofmediarichnessForexample anemailormemoislesspersonal andless rich thanafacetofacemeetingDifferenttypesofmediamayalsobemoreappropriatefordifferentaudienceswithdifferingneeds 64 CommunicationMedia Responsibility CEO ManybelievethattheCEOshouldbetheprinciplecommunicatorofchangewhileothersfindlowerlevelmanagersmoretrustedbystaffandthereforeinabetterpositiontocommunicatechange TagTeams Manyorganizationsnowusetagteams atransitionmanagementteam Theroleofthisteamisspecificallytostimulateopenconversationsthroughorganizationalunitsanddispersinginformation 65 CommunicationPlan 66 Outline ThoughtsaboutchangeChangeManagementChangeManagementToolsConclusion 67 Analysis SWOTanalysisOrganisationaldiagnosisSystem EnvironmentanalysisBenchmarkingStrategydevelopmentStaffquestionnairesInterventionsAnd and and 68 Benchmarking DefinethesubjectofthebenchmarkingIdentificationandselectionofsuitableprocesses egcosts time DescriptionandanalysisFindparameters egcustomerstisfaction quality employeesatisfactionAnalysisusingInput Outputmodel 69 Benchmarking BenchmarkingpartnersComparisonswithcompaniesinotherindustriesareinterestingAnalysisofdifferencesWhatisdifferent Cantheotherprocessesbeadaptedsowecanusethem PlanappropriatemeasuresEvaluateresults 70 StaffQuestionnaires FunctionsAnalysis DiagnosisWhenandwho Before duringandafterchangeEverybody Specificgroups GoalsandcontentGeneral specificAnonymousCommunicationandfeedback InstrumentofcontinuousorganisationaldevelopmentResultsusedforchangemanagementactivitiesExample Write10questionsforanemployeesatisfactionsurvey 71 Interventions StrategyDevelopment FutureWorkshopForecastdataareproducedParticipantsusethesedatatodevelopastrategyAnticipatedFutureThereisanintensiveintroduction Weareintheyearxxxx youcansee youfeel Theparticipantsthenworkoutwaysofgettingtothisve

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