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1、 MSM 2001Organizational Change Processes in China Dr.Geert W.J.HelingMaastrichtApril,2002 MSM 2002Program(1)1.Introduction2.Basics of Change 3.Current trends in China 4.Fundamental issues in Organizational Change 5.Phases in Change Processes:a model of Change6.Diagnosis:instruments and methods7.Desi
2、gning a Change Program8.Structuring a Change Program MSM 2002Program(2)9.Dynamics of Change10.Interventions11.Implementation12.Resistance and how to handle it13.Role and position of Change agents14.Case presentations15.Integration MSM 2002Basics of ChangeqWhat is change?qDifferent ways of conducting
3、 changeqContext of organizational changeqResponses to Change MSM 2002Current trends in ChinaqPolitical shift towards more Market orientationqBoosting production and economyqOpening up to international marketqEntrance to WTOqFrom inward to outward orientationqNew identity in global politics MSM 2002“
4、Organizations that are able to conduct changes faster and more effectively than their competitors have better chances to survive.”MSM 2002WTO and China MSM 2002Consequences?qAdvantagesqDisadvantagesqThreatsqOpportunitiesqTime scopeqPETS-dimensions MSM 2002Issues in Chinese businessqStructureqCulture
5、qLeadership&ManagementqNew versus OldqDifferences with western style businessqDevelopmentqEtc.q.MSM 2002Fundamental Issues in Organizational ChangeqTypes of changeqWays of changingqDimensions of Change ProgramsqResponses to ChangeqCore principles MSM 2002Types of ChangeqImprovementqInnovationqTransf
6、ormation MSM 2002Two ways of changing Imposed Change Easy Quick Short term Resistance Evoked Change Complex Long term Commitment Sustaining MSM 2002Dimensions of Change ProgramsvStrategic considerationsvTechnical preferencesvEconomic/Financial DimensionvSocial(HR)considerationsvCultural aspects MSM
7、2002Small versus Large ScaleqType of businessqSize of organizationqUrgency of problems(need)qHistory of organizationqMaturity of peopleqAttitude of Top Management MSM 2002Responses to changesqueezedTop-managementMiddle managementWorking floor/employeesresistantisolated MSM 2002Core principles(1)(How
8、 to make it work)1.Use Goal orientationThere must be Clarity about:q problem situationq Goalsq Criteria for successq Organizationq Planningq Control2.Make a Good diagnosisq Seek informationq Summarizeq Analyze q Feedback MSM 2002 Core principles(2)(How to make it work)3.Use Systems thinking:always k
9、eep the whole system in mindq Structuresq Behaviorq Culture4.Use participation for commitmentq Better decisionsq Stimulate motivationq Identification with organization MSM 2002Core principles(3)(How to make it work)5.Give support in order to stimulate self-managementq Use feedbackq Trainingq Facilit
10、ate communicationq Give supportq Delegate authorities for use of resources6.Manage the Process of Changeq Analyse process continuouslyq Deal with resistance and conflictsq Use flexible planning MSM 2002Core principles(4)(How to make it work)7.Communicate intensivelyq Communicate,communicate,communic
11、ate8.Carefully select key-personsq who are potential alliesq Who are opinion leadersq Who will show resistanceq Who can be a leader MSM 2002Phases of a Change ProgramStep 0:determine internal and external pressure/demands for changeStep 1:Make up diagnosisStep 3:Determine vision and strategyStep 4:A
12、ction 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 MSM 2002Goals Culture Structure Technology Behaviour&ProcessesOutputGroup Performanc
13、eIndividualPerformanceQuality of Working ConditionsGroup compositionStructureTechnologyIndividualcharacteristicsGroup BehaviourProcessesCultureIndividual attitudesMotivationConvictionsSourcesSourcesHuman ResourcesOrganizationlevel GrouplevelIndividuallevelENVIRONMENT Source:Harrison,1978,p.51ENVIRON
14、MENT=influence=feedback MSM 2002Internal/external pressure/demandsleading to change Step 0Evaluate Change Results Step 7Determine Change Strategies and Implementation methodologies Step 6Determine theChange Dynamics Step 5Structure theChange Process Step 4Design and Develop Step 3Determine Vision An
15、d StrategyStep 2Draw up diagnosis Step 1ChangeGoalsChangeSituation ChangeStrategyChange EffectivenessOrganizational ExpertiseChange Management ExpertiseSource:Cozijnsen&Vrakking,1996.MSM 2002General DirectorLHCCpmmunist PartysOmplementation PanelDeputu General Director Deputy General Director Deputy
16、 General DirectorWeaving Plant Dueing Plant Garment Plant Knitting Plant Support Units&ServicesAdministration Finance Dept.Import-Export Dept.Materials Dept.R&D Centre Planning&Sales Dept.Legend:Officially designed reporting lineDelegated tasks to DGD by the GD,But are subject to frequent changesOrg
17、anisation Chart of LHC MSM 2002Diagnostic Instrumentsq 7 S-modelq Organization Matrix modelq Management Effectiveness Analysisq Etc.MSM 2002StructureStaffStyleSkillsSystemsShared ValuesStrategyHard variablesSoft variablesThe 7-S model MSM 2002 MSM 2002Box 1:Goals and methods Core activities Strategi
18、c planning Marketing Financing etc.MSM 2002Box 2:Internal Structure(Tasks&authorities)Organigram Task/project descriptions Need for information Procedures etc.MSM 2002Box 3:Knowledge and skills Function needs Recruitment Know-how Salary system etc.MSM 2002Box 4:Stakeholders CEO/Board of directors Pr
19、essure groups Customers Employees Financier etc.MSM 2002Box 5:Decision taking Informal structure Participation in decision taking Review of results Consultation Negotiations etc.MSM 2002Box 6:Autonomy Room for action Personal perspective Status Individual interests etc.MSM 2002Box 7:Organizational C
20、limate Vision Commitment Elan House style etc.MSM 2002Box 8:Co-operation Problem solving Team-play Co-ordination of ideas Meeting styles etc.MSM 2002Box 9:Attitude Creativity Fellowship Trust Dedication etc.MSM 2002Management Effectiveness Analysis Measures behavior+effectiveness Scientific approach
21、 Questionnaire(111 items)21 behavioural sets Situation dependent Strategic+Feedback profiles Individual+group analyses MSM 2002 MSM 2002Vision and Strategy?MSM 2002Designing a Change ProgramGrow or a Roll-out model TimingNeed&wantSkills(ability)attitude(culture)MSM 2002Change CompetenceInfrastructur
22、eStrategic ComponentOrganizationalSuccessInstitutionalComponentHumanResourcesComponentChange PolicyChange CapacityLeading PotentialSpeedWillingnessInfrastructure of Change CompetenceSource:Cozijnsen&Vrakking,1995 MSM 2002Competing Values Framework:Organizational Effectiveness(Quinn model 1)Flexibili
23、tyExternal InternalControl open systems modelRational goal model Internal process modelHuman relations modelMeans:cohesion,moraleEnds:human resource developmentMeans:planning,goal settingEnds:productivity,efficiencyMeans:flexibiity,readinessEnds:growth,resource acquisitionMeans:information managemen
24、t,communicationEnds:Stability,control MSM 2002Quinn model 2 MSM 20024 conditions for changing behaviourneed wantbeing allowedcan MSM 2002Roll-out change1.Preparation2.Planning3.Transition structures4.Implementation 1.(=rolling-out)5.Reward MSM 2002Grow or Process ChangeqPreparationqPlanningqTake fir
25、st stepqCheck and CorrectqTake next stepqEtc.q.qTerminate MSM 2002Dynamics of Changeq Pain and desireq Losses and gainsq Resistanceq Involvementq Motivation MSM 2002Types of LossChange always implies losing some things.Examples of things that people might fear they could lose are:Security Status Com
26、petence Relationships Sense of direction Territory MSM 2002Signs of ResistanceIndividual resistance:Complaints Errors Anger Disobeying and stubbornness Apathy Absence due to illness Withdrawal.MSM 2002Signs of ResistanceOrganizational resistance:qAccidentsqIncrease in workers compensation claimsqInc
27、reased absenteeismqGossipqSabotageqIncrease in health care claimsqLowered productivity MSM 2002Phases of TransitionFrom Danger to Opportunity1.Denial 3.Exploration1.2.Resistance 4.Commitment MSM 2002Phases in mourning process1.Denial2.Anger3.Hustle4.Depression5.Acquiescence6.Acceptance MSM 2002React
28、ions to Organizational Change(1)1.Denial“It will not be serious”“It has nothing to do with us”2.Anger“Whats 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”MSM 2002Reactions
29、to Organizational Change(2)4.Depression“I give up,they will never listen to me”“They are always just doing 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 thin
30、gs as they were”MSM 2002How to handle these reactions?(1)1.Denial make people aware Confrontation with figures,clients,publicity,etc.Elicit reactions(make people active)2.Anger Listen en build rapport Show understanding for emotions Let early adaptors take initiative3.Hustle Be clear and make people accountable Communicate goals and vision Negotiate about implementation proposals