1、Organizational Change Processes in China,Dr. Geert W.J. Heling Maastricht April, 2002,Program (1),Introduction Basics of Change Current trends in China Fundamental issues in Organizational Change Phases in Change Processes: a model of Change Diagnosis: instruments and methods Designing a Change Prog

2、ram Structuring a Change Program,Program (2),Dynamics of Change Interventions Implementation Resistance and how to handle it Role and position of Change agents Case presentations Integration,Basics of Change,What is change? Different ways of conducting change Context of organizational change Respons

3、es to Change,Current trends in China,Political shift towards more Market orientation Boosting production and economy Opening up to international market Entrance to WTO From inward to outward orientation New identity in global politics,“Organizations that are able to conduct changes faster and more e

4、ffectively than their competitors have better chances to survive.”,WTO and China,Consequences ?,Advantages Disadvantages Threats Opportunities Time scope PETS-dimensions,Issues in Chinese business,Structure Culture Leadership & Management New versus Old Differences with western style business Develo

5、pment Etc. .,Fundamental Issues in Organizational Change,Types of change Ways of changing Dimensions of Change Programs Responses to Change Core principles,Types of Change,Improvement Innovation Transformation,Two ways of changing,Imposed Change Easy Quick Short term Resistance,Evoked Change Complex

6、 Long term Commitment Sustaining,Dimensions of Change Programs,Strategic considerations Technical preferences Economic/Financial Dimension Social (HR) considerations Cultural aspects,Small versus Large Scale,Type of business Size of organization Urgency of problems (need) History of organization Mat

7、urity of people Attitude of Top Management,Responses to change,squeezed,Top-management,Middle management,Working floor/ employees,resistant,isolated,Core principles (1)(How to make it work),Use Goal orientation There must be Clarity about: problem situation Goals Criteria for success Organization Pl

8、anning Control Make a Good diagnosis Seek information Summarize Analyze Feedback,Core principles (2)(How to make it work),Use Systems thinking: always keep the whole system in mind Structures Behavior Culture Use participation for commitment Better decisions Stimulate motivation Identification with

9、organization,Core principles (3)(How to make it work),Give support in order to stimulate self-management Use feedback Training Facilitate communication Give support Delegate authorities for use of resources Manage the Process of Change Analyse process continuously Deal with resistance and conflicts

10、Use flexible planning,Core principles (4)(How to make it work),Communicate intensively Communicate, communicate, communicate Carefully select key-persons who are potential allies Who are opinion leaders Who will show resistance Who can be a leader,Phases of a Change Program,Step 0: determine interna

11、l and external pressure/demands for change Step 1: Make up diagnosis Step 3: Determine vision and strategy Step 4: Action Planning: design and develop the Change Program Step 5: Structure the Change Process Step 6: Determine Change dynamics Step 7: Determine Change Strategies and Methods Step 8: Imp

12、lement Step 9: Evaluate and Adjust/Correct,Goals Culture Structure Technology Behaviour & Processes,Output,Group Performance,Individual Performance,Quality of Working Conditions,Group composition Structure Technology,Individual characteristics,Group Behaviour Processes Culture,Individual attitudes M

13、otivation Convictions,Sources,Sources,Human Resources,Organization level,Group level,Individual level,ENVIRONMENT,Source: Harrison, 1978, p. 51,ENVIRONMENT,= influence,= feedback,Internal/external pressure/demands leading to change,Step 0,Evaluate Change Results,Step 7,Determine Change Strategies an

14、d Implementation methodologies,Step 6,Determine the Change Dynamics,Step 5,Structure the Change Process,Step 4,Design and Develop,Step 3,Determine Vision And Strategy,Step 2,Draw up diagnosis,Step 1,Change Goals,Change Situation,Change Strategy,Change Effectiveness,Organizational Expertise,Change Ma

15、nagement Expertise,Source: Cozijnsen & Vrakking, 1996.,General Director,LHCCpmmunist Partys Omplementation Panel,Deputu General Director,Deputy General Director,Deputy General Director,Weaving Plant,Dueing Plant,Garment Plant,Knitting Plant,Support Units & Services,Administration,Finance Dept.,Impor

16、t-Export Dept.,Materials Dept.,R&D Centre,Planning & Sales Dept.,Legend:,Officially designed reporting line,Delegated tasks to DGD by the GD, But are subject to frequent changes,Organisation Chart of LHC,Diagnostic Instruments,7 S - model Organization Matrix model Management Effectiveness Analysis E

17、tc. .,Structure,Staff,Style,Skills,Systems,Shared Values,Strategy,Hard variables,Soft variables,The 7-S model,Box 1: Goals and methods,Core activities Strategic planning Marketing Financing etc.,Box 2: Internal Structure (Tasks & authorities),Organigram Task / project descriptions Need for informati

18、on Procedures etc.,Box 3: Knowledge and skills,Function needs Recruitment Know-how Salary system etc.,Box 4: Stakeholders,CEO / Board of directors Pressure groups Customers Employees Financier etc.,Box 5: Decision taking,Informal structure Participation in decision taking Review of results Consultat

19、ion Negotiations etc.,Box 6: Autonomy,Room for action Personal perspective Status Individual interests etc.,Box 7: Organizational Climate,Vision Commitment Elan House style etc.,Box 8: Co-operation,Problem solving Team-play Co-ordination of ideas Meeting styles etc.,Box 9: Attitude,Creativity Fellow

20、ship Trust Dedication etc.,Management Effectiveness Analysis,Measures behavior + effectiveness Scientific approach Questionnaire (111 items) 21 behavioural sets Situation dependent Strategic + Feedback profiles Individual + group analyses,Vision and Strategy,?,Designing a Change Program,Grow or a Ro

21、ll-out model Timing Need & want Skills (ability) attitude (culture),Change Competence Infrastructure,Strategic Component,Organizational Success,Institutional Component,Human Resources Component,Change Policy,Change Capacity,Leading Potential,Speed,Willingness,Infrastructure of Change Competence,Sour

22、ce: Cozijnsen & Vrakking, 1995,Competing Values Framework: Organizational Effectiveness (Quinn model 1),Flexibility,External,Internal,Control,open systems model,Rational goal model,Internal process model,Human relations model,Means: cohesion, morale Ends: human resource development,Means: planning,

23、goal setting Ends: productivity, efficiency,Means: flexibiity, readiness Ends: growth, resource acquisition,Means: information management, communication Ends: Stability, control,Quinn model 2,4 conditions for changing behaviour,need,want,being allowed,can,Roll-out change,Preparation Planning Transit

24、ion structures Implementation (= rolling-out) Reward,Grow or Process Change,Preparation Planning Take first step Check and Correct Take next step Etc. . Terminate,Dynamics of Change,Pain and desire Losses and gains Resistance Involvement Motivation,Types of Loss,Change always implies losing some thi

25、ngs. Examples of things that people might fear they could lose are: Security Status Competence Relationships Sense of direction Territory,Signs of Resistance,Individual resistance: Complaints Errors Anger Disobeying and stubbornness Apathy Absence due to illness Withdrawal . . . . .,Signs of Resista

26、nce,Organizational resistance: Accidents Increase in workers compensation claims Increased absenteeism Gossip Sabotage Increase in health care claims Lowered productivity,Phases of Transition,From Danger to Opportunity 1.Denial3.Exploration 2.Resistance4.Commitment,Phases in mourning process,Denial

27、Anger Hustle Depression Acquiescence Acceptance,Reactions 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

28、, 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 doing what they like” 5.Acquiescence “Actually I dont really care anymore” “I will just let things happen” 6.Acceptance “Actually it al

29、so 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 aware Confrontation with figures, clients, publicity, etc. Elicit reactions (make people active) 2. Anger Listen en build rapport Show understanding for emo

30、tions Let early adaptors take initiative 3. Hustle Be clear and make people accountable Communicate goals and vision Negotiate about implementation proposals,How to handle these reactions? (2),4. Depression (silence) no return statement Take decisions and carry them out immediately Make implementati

31、on irreversible 5. Acquiescence Give support “Let us go back to work” Support process of learning and adaptation 6. Acceptance Reinforce Control, evaluate and celebrate successes Use team building, make up new goals,Dos and Donts: (Some general Basic guidelines for effective Change),Have a good reas

32、on for making the change Involve people in the change Put a respected person in charge of the process Create transition management Bring in outsider help Provide training in new values and behavior Establish symbols of change Acknowledge and reward people,Dos and Donts in Preparation,Prepare your em

33、ployees Describe the change as completely as you can Research what happened during the last change Assess the organizational readiness Dont make additional changes that arent critical/necessary,Dos and Donts in Planning,Make contingency plans Allow for the impact on personal performance and producti

34、vity Encourage employee input Anticipate the skills and knowledge that will be needed to master the change Set a time table and objectives so you can measure the progress,Transition Structures,Create a transition management group to oversee the change (project team). Develop temporary policies and p

35、rocedures 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 check on what is happening.,Dos and Donts in Implementation,Provide appropriate training in new

36、skills and coaching in new values and behaviors Encourage self-management Give more feedback than usual to insure people always know where they stand Allow for resistance Give people a chance to step back and reflect on what is going on,Dos and Donts in Implementation (continued),Encourage people to

37、 think and act creatively Look for any opportunity created by the change Allow for withdrawal and return of people who are temporarily resistant Collaborate Monitor the change process,The Consultant,Academic education Communicates well Creative thinker Ethical Has strong “network” Perseverance Socially oriented Other (discuss),Roles of the consultant,RESOURCE: Connections Expertise Problem solving (content) Service,PROCESS: Change agent Coach Problem finder/solver (processes) Social methodology Sparring partner Trainer,Skills of the Consultant,Analytical & diagnosti