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Prof. Anil Kumar Singh &
Prof. Muqbil Burhan
ORGANISATIONAL CHANGE AND
TRANSFORMATION
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ORGANISATIONAL CONTEXT
HORIZONTAL STR
ADAPTIVECULTURE
COLLOBORATIVESTRATEGY
SHAREDINFORMATION
EMPOWEREDROLES
STABLE ENVIRONMENT(Mechanical System Paradigm)
TURBULANT ENVIRONMENT(Natural System Paradigm)
Efficient Performance Learning Organisation
XEROX &
ABB??????
??Page 178 Xerox/
Team
Xerox/Pag
e 149 ABB
Phase 1
defficiency
XeroxBusiness
Architectur
e
Page
147, 158
ASAE/AB
B
Page
147
ASAE
&ABB
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CHANGE?
Organizational Growth Organizational Ability to manage change.Change is the on ly co nstant in co ntemporary con text .
Any strategic Development w i l l, of necess i ty, involve
managing some degree of change to structures,Technologies, products, services, cul ture or
processes.
Barlett & Ghoshal, Managing across Borders, HBRThe levels of change have in many instances outpacedthe Human capability to cope-up with Change.
CAN WE QUANTIFY CHANGE???????
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ORGANISATIONAL CHANGE
An alteration of an organizations environment,
structure, culture, technology, or peopleNATUREA constant force
An organizational reality
An opportunity or a threat
Change agent A person who initiates and assumes the responsibility for
managing a change in an organization
CHANGE AGENTS IN CASE OF XEROX: Is it Fred Hewitt orsomeone else
CHANGE AGENT IN CASE OF ASAE & ABB: ????????
HOW APPROACHES OF THESE TWO CHANGE AGENTSDIFFER??????
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-&TRANSFORMATION
Success can work against a company whenit looses touch with customers.
Radical changes may be only choice for
organization in desperate need of change.
XEROX & CUSTOMERS?
DESPERATION FOR ASEA?
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FORCES FOR CHANGE
Competition Laws and
regulations
Strategy modifications
New technologies New equipment
Labor market shifts New processes
Business cycles Workforce composition
Social change Job restructuring
Compensation and
benefits
Labor surpluses and
shortagesEmployee attitude
Identify forces of change in context of Xerox and
ASAE/ABB
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CATEGORIES OF CHANGE
IDENTIFY THE DIMESIONS OF
CHANGE IN CASE OF XEROX,
ABB/ASEA
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MODEL FOR PLANNED ORGANIZATIONAL
CHANGE
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CHANGE PROCESS CONTRASTING
VIEWS
Calm waters metaphorA description of traditional practices in and theories
about organizations that likens the organization to a
large ship making a predictable trip across a calm sea
and experiencing an occasional storm
White-water rapids metaphorA description of the organization as a small raft
navigating a raging river
IS THERE ANY DIFFERENCE BETWEEN
XEROX & ASAE/ABB
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LEVELS OF CHANGE
IDENTITY CHANGE
Eg. NESTLE
Baby Diet Powder Condensed milk; Chocolates;Milk; Maggi (ready to eat); Coco Butter
COORDINATION CHANGE Eg. TVS
91-92 (Red ); 91-95 Preparation Phase;Competing on quality building culture of Quality
CONTROL CHANGE: Prasoon Dutta
Redesigning of stores, Breaking and negotiating
contracts, financial control through DebtDiscipline; Mgmt. Change permitting fresh
thinking
XeroxQualityPolicy
LeadershipthroughQuality &Team Xerox
XeroxBusinessArchitecture
BusinessProcessReengineering
Restr. Xerox2000
ASAEDomesticFirm
ASAEExporting firm
ABB
Multinational
PATH BYBERNEVIK
Spearhead
products, Choice
of International
Niches andDominance in
these Niche
What
is new
ASAE
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Time
Forces of Change
Forces of Stability
Desired
state
Statusquo
CHANGE IN CALM WATERS
STABILITY CHANGE
UNFREEZE CHANGE RE-FREEZE
CHANG
E
RE-
FREEZE
Power
Facilitative
Persuasiv
e
Re-
educative
Strategie
s
Social
CulturalPsychological
Organizational
Individual ResistanceFear of unknown
Belief that change is not good4 org
BARRIE
RS
SOURCES OFBARRIERS
Fear of Survival
Fear of Learning
Change successful
if, FS > FL
T
ECHNIQUE
S
Reward alignment
Burning bridges
Evidence Stream
Institutional Change
Socializing
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STRATEGIES FOR PLANNED CHANGE
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-RAPIDS
Change is constant in a dynamic environment
The only certainty is continuing uncertainty
Competitive advantages do not last
Managers must quickly and properly react tounexpected events
Be alert to problems and opportunities
Become change agents in stimulating, implementing and
supporting change in the organization
IS THE CHAGE AND TRANSFORMATION IN CASE OF ASAE & ABB A
CASE OF CALM WATERS OR WHITE-WATER RAPIDS.
Refer Page 147 &148
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CONTINUOUS CHANGE PROCESS MODEL OF
ORGANIZATION CHANGE
IS A NEW STRUCTURE REALLY
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IS A NEW STRUCTURE REALLY
REQUIRED?
When you identify a problem
with your design, first look for
ways to fix it without
substantially altering it. If thatdoesnt work, youll have to
make fundamental changes
or even reject the design.
Heresa step-by-step process
for resolving problems.
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IS A NEW STRUCTURE REALLY REQUIRED?
(CONTD)
HOW STRUCTURAL CHANGE WAS MANAGED IN CASE OF XEROX AND
ABB
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STRATEGIC CHANGE IS A POLITICAL
PROCESS*
1. Establish urgency: Identify & discuss crises,potential crises & opportunities
Page 175 1stParagraph Xerox
Page 147 Last paragraph ABB
2. Form a guiding coalition: Assemble a groupwith enough power to lead; Integrate the team
Happening at Xerox Leesburg Virginia center
Relationship b/w CEO & Board, VP- Marketing (Percys
Boys), also page 151.
3. Create a vision: A vision to direct the change effort;Develop strategies to achieve that vision
Quality in case of Xerox
Page 149 in case of ABB
4. Communicate the vision: Use every vehiclepossible to communicate & engage; Teach new behaviors by
example.
Team Xerox, Learning experiences (180), documentedprocess, MIOC (184)
Communication of strategic principles (149)
5. Empower others: Get rid of obstacles; Changesystems; Encourage risk-taking
In Xerox???
In ABB?????
6. Create short-term wins: Target rapid, visible
performance improvements
ABB: Page 148 and 149 what do you find
XEROX: Page 177 and 178
7. Consolidate improvements:Use credibility fromearly wins to target areas that lag; Develop and promote new
leaders
Page 149: ABB
Pase 2 in case of Xerox
8. Institutionalize New Approaches: Connectnew attitudes and behaviors to results ; Develop generation
that personifies changes
Phase 3 in case of Xerox.
Stage 5: Is something visible.
* Kotter HBR 1995
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