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1、Organizational Change Processes in China,Dr. Geert W.J. HelingMaastrichtApril, 2002,Program (1),IntroductionBasics of Change Current trends in China Fundamental issues in Organizational Change Phases in Change Processes: a model of ChangeDiagnosis: instruments and methodsDesigning a Change ProgramSt
2、ructuring a Change Program,Program (2),Dynamics of ChangeInterventionsImplementationResistance and how to handle itRole and position of Change agentsCase presentationsIntegration,Basics of Change,What is change?Different ways of conducting changeContext of organizational changeResponses to Change,Cu
3、rrent trends in China,Political shift towards more Market orientationBoosting production and economyOpening up to international marketEntrance to WTOFrom inward to outward orientationNew identity in global politics,“Organizations that are able to conduct changes faster and more effectively than thei
4、r competitors have better chances to survive.”,WTO and China,Consequences ?,AdvantagesDisadvantagesThreatsOpportunitiesTime scopePETS-dimensions,Issues in Chinese business,StructureCultureLeadership & ManagementNew versus OldDifferences with western style businessDevelopmentEtc. .,Fundamental Is
5、sues in Organizational Change,Types of changeWays of changingDimensions of Change ProgramsResponses to ChangeCore principles,Types of Change,ImprovementInnovationTransformation,Two ways of changing,Imposed ChangeEasyQuickShort termResistance,Evoked ChangeComplexLong termCommitmentSustaining,Dimensio
6、ns of Change Programs,Strategic considerationsTechnical preferencesEconomic/Financial DimensionSocial (HR) considerationsCultural aspects,Small versus Large Scale,Type of businessSize of organizationUrgency of problems (need) History of organizationMaturity of peopleAttitude of Top Management,Respon
7、ses to change,squeezed,Top-management,Middle management,Working floor/employees,resistant,isolated,Core principles (1)(How to make it work),Use Goal orientationThere must be Clarity about:problem situationGoalsCriteria for successOrganizationPlanningControlMake a Good diagnosisSeek informationSummar
8、izeAnalyze Feedback,Core principles (2)(How to make it work),Use Systems thinking: always keep the whole system in mindStructuresBehaviorCultureUse participation for commitmentBetter decisionsStimulate motivationIdentification with organization,Core principles (3)(How to make it work),Give support i
9、n order to stimulate self-managementUse feedbackTrainingFacilitate communicationGive supportDelegate authorities for use of resourcesManage the Process of ChangeAnalyse process continuouslyDeal with resistance and conflictsUse flexible planning,Core principles (4)(How to make it work),Communicate in
10、tensivelyCommunicate, communicate, communicateCarefully select key-personswho are potential alliesWho are opinion leadersWho will show resistanceWho can be a leader,Phases of a Change Program,Step 0: determine internal and external pressure/demands for changeStep 1: Make up diagnosisStep 3: Determin
11、e vision and strategyStep 4: Action Planning: design and develop the Change ProgramStep 5: Structure the Change ProcessStep 6: Determine Change dynamicsStep 7: Determine Change Strategies and MethodsStep 8: ImplementStep 9: Evaluate and Adjust/Correct,Goals Culture Structure Technology Behaviour &am
12、p; Processes,Output,Group Performance,IndividualPerformance,Quality of Working Conditions,Group compositionStructureTechnology,Individualcharacteristics,Group BehaviourProcessesCulture,Individual attitudesMotivationConvictions,Sources,Sources,Human Resources,Organizationlevel,Grouplevel,Individualle
13、vel,ENVIRONMENT,Source: Harrison, 1978, p. 51,ENVIRONMENT,= influence,= feedback,Internal/external pressure/demandsleading to change,Step 0,Evaluate Change Results,Step 7,Determine Change Strategies and Implementation methodologies,Step 6,Determine theChange Dynamics,Step 5,Structure theChange Proce
14、ss,Step 4,Design and Develop,Step 3,Determine Vision And Strategy,Step 2,Draw up diagnosis,Step 1,ChangeGoals,ChangeSituation,ChangeStrategy,Change Effectiveness,Organizational Expertise,Change Management Expertise,Source: Cozijnsen & Vrakking, 1996.,General Director,LHCCpmmunist PartysOmplement
15、ation Panel,Deputu General Director,Deputy General Director,Deputy General Director,Weaving Plant,Dueing Plant,Garment Plant,Knitting Plant,Support Units & Services,Administration,Finance Dept.,Import-Export Dept.,Materials Dept.,R&D Centre,Planning & Sales Dept.,Legend:,Officially desig
16、ned reporting line,Delegated tasks to DGD by the GD, But are subject to frequent changes,Organisation Chart of LHC,Diagnostic Instruments,7 S - modelOrganization Matrix modelManagement Effectiveness AnalysisEtc. .,Structure,Staff,Style,Skills,Systems,Shared Values,Strategy,Hard variables,Soft variab
17、les,The 7-S model,Box 1: Goals and methods,Core activitiesStrategic planningMarketingFinancingetc.,Box 2: Internal Structure (Tasks & authorities),OrganigramTask / project descriptionsNeed for informationProceduresetc.,Box 3: Knowledge and skills,Function needsRecruitmentKnow-how Salary systemet
18、c.,Box 4: Stakeholders,CEO / Board of directorsPressure groupsCustomers EmployeesFinancieretc.,Box 5: Decision taking,Informal structure Participation in decision takingReview of resultsConsultationNegotiationsetc.,Box 6: Autonomy,Room for actionPersonal perspectiveStatusIndividual interestsetc.,Box
19、 7: Organizational Climate,VisionCommitmentElan House style etc.,Box 8: Co-operation,Problem solving Team-play Co-ordination of ideas Meeting styles etc.,Box 9: Attitude,Creativity FellowshipTrust Dedication etc.,Management Effectiveness Analysis,Measures behavior + effectivenessScientific approachQ
20、uestionnaire (111 items)21 behavioural setsSituation dependentStrategic + Feedback profilesIndividual + group analyses,Vision and Strategy,?,Designing a Change Program,Grow or a Roll-out model TimingNeed & wantSkills (ability) attitude (culture),Change CompetenceInfrastructure,Strategic Componen
21、t,OrganizationalSuccess,InstitutionalComponent,HumanResourcesComponent,Change Policy,Change Capacity,Leading Potential,Speed,Willingness,Infrastructure of Change Competence,Source: Cozijnsen & Vrakking, 1995,Competing Values Framework: Organizational Effectiveness (Quinn model 1),Flexibility,Ext
22、ernal,Internal,Control,open systems model,Rational goal model,Internal process model,Human relations model,Means: cohesion, moraleEnds: human resource development,Means: planning, goal settingEnds: productivity, efficiency,Means: flexibiity, readinessEnds: growth, resource acquisition,Means: informa
23、tion management, communicationEnds: Stability, control,Quinn model 2,4 conditions for changing behaviour,need,want,being allowed,can,Roll-out change,PreparationPlanningTransition structuresImplementation (= rolling-out)Reward,Grow or Process Change,PreparationPlanningTake first stepCheck and Correct
24、Take next stepEtc. .Terminate,Dynamics of Change,Pain and desire Losses and gains Resistance Involvement Motivation,Types of Loss,Change always implies losing some things. Examples of things that people might fear they could lose are:SecurityStatusCompetenceRelationshipsSense of directionTerritory,S
25、igns of Resistance,Individual resistance:ComplaintsErrorsAngerDisobeying and stubbornnessApathyAbsence due to illnessWithdrawal . . . . .,Signs of Resistance,Organizational resistance:AccidentsIncrease in workers compensation claimsIncreased absenteeismGossipSabotageIncrease in health care claimsLow
26、ered productivity,Phases of Transition,From Danger to Opportunity1.Denial3.Exploration2.Resistance4.Commitment,Phases in mourning process,DenialAngerHustleDepressionAcquiescenceAcceptance,Reactions to Organizational Change (1),1.Denial“It will not be serious”“It has nothing to do with us”2.Anger“Wha
27、ts wrong with what we have been doing the last few years?”“It Is this the reward for years of hard work?”3.Hustle“Now is a bad timing, because ”“Well if we were having more money ”,Reactions to Organizational Change (2),4.Depression “I give up, they will never listen to me”“They are always just doin
28、g what they like”5.Acquiescence“Actually I dont really care anymore”“I will just let things happen”6.Acceptance“Actually it also has some benefits”“Well of course it was unacceptable to keep things as they were”,How to handle these reactions? (1),1. Denial make people awareConfrontation with figures
29、, clients, publicity, etc.Elicit reactions (make people active)2. Anger Listen en build rapportShow understanding for emotionsLet early adaptors take initiative3. Hustle Be clear and make people accountable Communicate goals and visionNegotiate about implementation proposals,How to handle these reac
30、tions? (2),4. Depression (silence) no return statementTake decisions and carry them out immediatelyMake implementation irreversible5. Acquiescence Give support “Let us go back to work”Support process of learning and adaptation6. Acceptance Reinforce Control, evaluate and celebrate successesUse team
31、building, make up new goals,Dos and Donts: (Some general Basic guidelines for effective Change),Have a good reason for making the changeInvolve people in the changePut a respected person in charge of the processCreate transition management Bring in outsider helpProvide training in new values and beh
32、aviorEstablish symbols of changeAcknowledge and reward people,Dos and Donts in Preparation,Prepare your employeesDescribe the change as completely as you canResearch what happened during the last changeAssess the organizational readinessDont make additional changes that arent critical/necessary,Dos
33、and Donts in Planning,Make contingency plansAllow for the impact on personal performance and productivityEncourage employee inputAnticipate the skills and knowledge that will be needed to master the changeSet a time table and objectives so you can measure the progress,Transition Structures,Create a
34、transition management group to oversee the change (project team).Develop temporary policies and procedures during the change. Demonstrate flexibility to try new things. Loosen control and procedures.Create new communication channels.Meet frequently to monitor the unforeseen to give feedback, or to c
35、heck on what is happening.,Dos and Donts in Implementation,Provide appropriate training in new skills and coaching in new values and behaviorsEncourage self-managementGive more feedback than usual to insure people always know where they standAllow for resistanceGive people a chance to step back and
36、reflect on what is going on,Dos and Donts in Implementation (continued),Encourage people to think and act creativelyLook for any opportunity created by the changeAllow for withdrawal and return of people who are temporarily resistantCollaborateMonitor the change process,The Consultant,Academic educa
37、tionCommunicates wellCreative thinkerEthicalHas strong “network”PerseveranceSocially orientedOther (discuss),Roles of the consultant,RESOURCE:ConnectionsExpertiseProblem solving (content)Service,PROCESS:Change agentCoachProblem finder/solver (processes)Social methodologySparring partnerTrainer,Skill
38、s of the Consultant,Analytical & diagnostic Communication skills (360 degree)Influencing skills + adequate use of powerManagement skillsMarketing/sales abilitiesProblem finding/solvingSelf discipline/ethical sensibilitySocial skills,Internal vs External,CostsCommitmentObjectivity/IndependencePar
39、ticipates in implementation“Political” involvementSecond opinionSpecific knowledge/experience,Consultant Selecting criteria,Professional integrityProfessional competenceFirm and consultantKnowledge of industryUnderstanding of country and cultureSkills (hard and soft)Creativity and innovationRapport
40、with consultant,Assignment designCapacity to deliverAbility to mobilize resourcesCostsImage / reputationOther (discuss.),Conclusions,Different actors (management levels) have different rolesManaging change requires skills and attitudeEvery change involves gains and lossesOrganizational Change needs
41、careful preparation and planningRewarding is better than punishingResistance is a natural reactionThe Law of Transition,People dont hate to change. People hate to be changed!,7 habits of highly successful people,Be proactiveBegin with the end in mindPut first things firstThink Win-winSeek first to understand, then to be understoodSynergizeSharpen the sawAfter St. Covey,