Showing posts with label MSc- HR 3rd sem. Show all posts
Showing posts with label MSc- HR 3rd sem. Show all posts

Tuesday, November 15, 2022

The Process of Organisational Change

 

Process of Organisational Change:

Understanding the process of change requires careful consideration of the steps in the change process, employee resistance to change and how this resistance can be overcome.

The management of change requires the use of some systematic process that can be divided into a few stages or sub-processes. This is the essence of the most representative model of managing change. It emphasizes the role of the change agent who is an outsider, taking a leadership role in initiating and introducing the process of change.

The process of change must involve the following so as to lead to organizational effectiveness. Firstly, there is a re-distribution of power within the organizational structure. Secondly, this redistribution emanates from a developmental change process.

Phases of the Change Process:

Fig.15.5 indicates that the process of change has to pass through six different phases:

The Process of Organisational Change 1

1. Internal pressure:

The process of change begins as soon as top management starts feeling a need for pressure for change from within the enterprise. This is usually caused by some significant problem(s) such as a sharp drop in sales (profits), serious labor trouble, and/or high labor turnover.

2. Intervention and reorientation:

An external agent is often invited to suggest a definition of the problem and start the process of getting an organization people to focus on it. If internal staff people are competent enough and can be trusted they can also manage the process of change equally well.

3. Diagnosis and recognition of problem(s):

The change agent and manager start gathering necessary information and analyze it so as to recognize the more important problems and give attention to these.

4. The invention of and commitment to solutions:

It is important for the agent to stimulate thought and try to avoid using the ‘same old methods’. Solutions are searched out by creatively developing new and plausible alternatives. If subordinates are encouraged to participate in the process, they will develop a sense of involvement and are likely to be more committed to the course of action finally chosen.

5. Experimentation and search for results:

The solutions developed in phase 4 are normally put to tests on a small-scale (e.g., in pilot programs) and the results, analyzed. If the solution is successful in one unit or a certain part of a unit, it may be tried in the organization as a whole.

6. Reinforcement and acceptance:

If the course of action is found desirable (after being properly tested), it should be accepted voluntarily by organization members. Improved performance should be the source of reinforcement and thus should lead to a commitment to the change.

Key Roles in Organisational Change

 

Key Roles in Organisational Change

Organisational change is a collaborative effort and to implement it smoothly, several roles come into play. These include both external and internal roles. Six main roles, relevant for organisational change are discussed here –

Key roles in organisational change

Key roles in organisational change

Corporate management

Consultant(s)

Internal resource persons

Implementation team

Chief Implementor

Task forces

The table below illustrates what we would like to hear each of these groups say if they are actively engaged in managing change. Conversely, it also identifies what you may hear from each role if their responsibility is not clearly defined or understood (either by the player or by the organization).

Role:
How they should describe their role:
How they could misunderstand their role:
Change management resource/team “I develop the change management strategy and plans. I am an integral part of enabling project success.” “I feel like I’m on an island here. People expect me to do everything and have all the answers.”
Executives and senior managers “I launch (authorize and fund) changes, and I actively sponsor change with our people.” “I gave you funding and signed the charter, now go make it happen!”
People managers “I coach my direct reports through the changes that impact their day-to-day work.” “I feel like I’m the direct target for some of these changes, and I wish I knew what was going on.”
Project team “I manage the technical side of the change. I integrate change management into my project plans.” “My focus is getting to go-live. Once I flip the switch, I’m moving on to the next project.”
Project support functions “I use my expertise to enhance activities that drive change in collaboration with the change team.” “I get called in on projects and given one little task, but I’m not sure how I fit in to the overall picture.”
The Change Management Office  “We own the change management methodology and support its implementation in the organization.” “I don’t even exist yet.”

Organization Culture & Change

 

Organizational culture

Organizational or corporate culture is the pattern of values, norms, beliefs, attitudes, and assumptions that may not have been articulated but shapes the way in which people behave and things get done. Norms are unwritten rules and behaviors.

In a very simple way, we can say the culture of an organization is the typical way of doing things in the organization. It particularly relates to the behavior pattern and the relationship. The culture of an organization develops as an evolution of a long time. It is normally created by the people who work in the organization both the managers and the workforce.

So this framework for analyzing organization should be developed in a manner considering on above-said ideas of the organizational culture.

There seems to be a wide range of agreement that organizational culture refers to a system of shared meaning held members that distinguish the organization from other organizations. This system of shared meaning is, on closer examination, a set of key elements that in aggregate capture the essence of and organization’s culture.

These elements are the core of the framework that can use to analyze the organizational culture. Those are as follows.

Innovations and risk taking – The degree to which employees are encouraged to be innovative and take a risk.

Attention to detail – The degree to which employees are expected to exhibit precision, analysis, and attention to detail.

Result Orientation – The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve those outcomes.

People Orientation – The degree to which management decisions take into consideration the effect of outcomes on people within the organization.

Team Orientation – The degree to which work activities are organized around teams rather than individuals

Aggressiveness – The degree to which people are aggressive and competitive rather than easygoing.

Stability – The degree to which organizational activities emphasize maintaining the status quo in contrast to growth

Each of these elements exists on a continuum from low to high. Appraising the organization on these seven characteristics of the elements and then gives a composite picture of the organization’s culture.

Explanation on internal and external factors that influence organizational culture to Management Practices

Internal Factors

The actions of Top Management – The actions of the top management also have major impact on the organization’s culture. Through what they say and how they behave, senior executives establish norms that filter down through the organizations as to whether risk taking is desirable, how much freedom managers should give their employees, what is appropriate dress, what action will pay off in terms of pay raises, promotions and other rewards.

Human resources Practices – Once culture is in place there are practices within the organization that act to maintain it by giving employees a set of experience. For example many of the human resources practices reinforce the organization’s culture. The section process, performance evaluation criteria, training career development activities, the promotions procedures ensure that those hired people fit in with the culture.

Socialization – No matter how good a job the organization does in recruiting and selection, new employees are not fully indoctrinated in the organizations culture. May be most important because they are unfamiliar with the organization’s culture, new employees are potentially likely to disturb the beliefs and customs that are in place. The organizations will, therefore, want to help new employees adapt to its culture. This adaptation process is called as Socialization.

External Factors

The context of Community – The people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of the community. This matter has two sides one is community as an external factor how look at the organization and the other hand employees also come from that community that will affect to the internal factors also. Organizations that promote a spiritual culture recognize that people have both a mind and a spirit seek to find meaning and purpose in their work, and desire to connect with other human beings and be part of a community.

Government Rules and Regulations – This is also having another high effect on organizational culture. Especially in areas like how to treat for the employees, regulations o customer relations and like that the government rules and regulations also may have an effect on an organization’s culture.

National Culture – it is needed to take into account if accurate predictions are to be made about organizational behavior in different countries. But does national culture override the organization’s culture? Is an IBM facility in Germany, for example, more likely to reflect German ethic culture or IBM’s corporate culture? This example should be taken in to account to national culture override the organization’s culture.

 

Change Management Process

The change management process is one of the basic skills in that most Managers and leaders need to be competent in their management process. There are very few working environments where change management is not important and not implemented.

there are five main philosophies which need to be remembered

  1. Various people respond to various ways to change.
  2. Everybody has basic needs that have to be fulfilled.
  3. Changes regularly involve a loss, and people go through the “loss curve”.
  4. Anticipation needs to be managed rationally.
  5. Fears have to be dealing with changes.

Some techniques in the change management practitioner’s belt are well known in the business and trade press. The effective organizational change in their implementation and realization have required the introduction of lean manufacturing, 360° feedback, executive coaches, six sigma, CRM, just-in-time supply and manufacturing processes such as kanban and kaizen, Total Quality Management, or enterprise applications such as SAP, and etc

Importance (Objectives)of Change Management to the Organization

1. To allow changes while, at the same time, maintaining or improving service stability and availability.

2. To increase the probability of change process success.

3. To reduce and minimize the ratio of changes that need to be backed out of due to inadequate preparation.

4. To ensure that all parties affected are informed of planned changes.

5. To provide a record of changes implemented to assist with and shorten problem determination time.

6. To ensure that technical and management accountability for all changes is identified.

7. To assist with the accuracy of predictions of impact, such as response time, utilization, etc.

8. To ensure that all affected parties are not only informed, but necessary documentation and training are in place prior to the implementation.

Organization Culture and Change Management Process

The organization culture and change management process are interrelated. There are many impacts of cultural impacts on the change management process. Every organization has a unique culture, so the management system also adapted surrounding that culture and if they implement any change process they have to adapt that change process with their culture, otherwise they have to change organizational culture. The company motivation process is often to improve the effectiveness of this employee in order to improve the financial status of the company. Some organizational cultures are making barriers to implement changes, so they have to overcome those resistant against change. Most managers and leaders are not willing to do changes, because they have some fear about its success or failure. Cultural changes or changes adaptation to culture are required to the success of changes because these two cannot be separated. The good relationships between organizational culture and change management process always bring the success of the change.

Model for the Changing Process

Change is not conventional; it does not chase the particular order in change management models were suggested. So, when look at these models of change management, permit a lot of flexibility when referring a model rather than referring any model too rigidly, The way of implementation of changes are differ and depending on which model is used, but we can fallow basic steps those are essential to follow and those are common to any personal or organizational changes.

Kotter’s Eight Change Model

John Kotter’s eight change model is so suitable to compare with the other all models for the Universal Supplier change process. It has eight steps to follow for the appropriate change process that will be applied to Universal Supplier.

Step One: Create Urgency

This may help Universal suppliers spark the initial motivation to get things moving company has a low distribution network so they want to expand it all over the UK, still, it spread only within the boundary of London. The company has a threat from its market because there are many competitors arising with the new entrance. The company has the opportunity to expand its other region in the UK; because London is a more competitive place many business organizations are located there, not only the UK they have the opportunity to penetrate other EU countries Like French. Company competencies are enough for penetrating and expand the market network, but they should strengthen it further.

Step Two: Form a Powerful Coalition

Effective change leaders don’t need to follow the traditional company hierarchy. To lead change, company management level need to bring all together with a coalition, or team, of influential people whose power comes from several of sources, including job title, status, expertise, and political importance

Step Three: Create a Vision for Change

The universal Supplier change process vision is to be a leading food supplier in the UK and the change objective is the expansion of market networks all over the UK and Penetrates to other EU countries such as French. When the first start thinking about change. There will probably be many great ideas and solutions floating around. Link these concepts to an overall vision that people can grasp easily and remember.

Step Four: Communicate the Vision

Change vision is communicated to all the stakeholders of the Universal Supplier. There are various methods is implicated in the success of visual communication.

Step Five: Remove Obstacles

Universal Supplier has some obstacles from the importing process. There are many rules and regulations impose when importing products, and employee knowledge and skills are not enough to achieve that change. Therefore the company has to remove those obstacles by using various strategies

Step Six: Create Short-term Wins

A company should create short term wins like annual target coverage, 10% change coverage. A company should be given a taste of achievement early in the change process. It will encourage employees to reach to final goal in changing process

Step Seven: Build on the Change

A company needs to implement continuous improvement and change to build ongoing changes. In here the final goal is to penetrate to other EU countries that should be achieved in the change process. Continuous improvement is very important for going to the final target.

Step Eight: Anchor the Changes in Corporate Culture

The Cooperate culture regularly identifies what gets done, so the values behind the company or person vision must show in daily work. Required continuous commitment to ensure those changes are seen in every aspect of an organization, this will help that change a solid place in Universal supplier (Pvt) Ltd.

Resistant to Change

There is much reason to change, those are due to lack of understanding, poor communication process, cultural and belief barriers, norms, conflict, company structure, technological capabilities, Managerial attitudes, and style. Therefore managers and other executives need recognize and identify a different form of resistance:

1. The threat of power on an individual basis

2. Threat of power on an organization basis

3. Losing control by employees

4. Increasing the control of employees

5. Economic factor and limitation

6. Fear for the Job’s security

7. Implication on personal objectives and plans

8. Misunderstanding about changes

9. Fear of unknown

10. Limited resources allocation

There are many factors for creating resistance again changes. An organization should identify those barriers (resistant) to changes and need to find out overcome those resistant otherwise changes are not implemented successfully.

Successful Method of Implementation of Change

There are several key parameters that need to be observed if a change is to be successful, those are:

1. Idea and the need for the change: Idea generally should be serious, and otherwise there is not a perceived need for change.

2. Adaptation: Adaptation is occurred after key persons make decision chose to a head with planed objectives. Executives and general employees should help to success of change process, and major organizational changes should be sign on legal documents by the board of directors

3. Resources: Change is not happened without resources, it requires allocated resources within time frame, specially required adjustable budget, and proper human resource, technology and etc.

4. Implementation: Implementation is occurred after create change decision with organizational plan. Capital approval, employee training, arranging of materials and equipments are very important in implementation process.

Managing Resistance to change

 A Lean Journey: Change Management: Advice on Managing Resistance to Change

Resistance to Organisational Change:

In planning for change, managers must also take into account the various reasons for which people may resist the change, regardless of how ‘necessary’ it may appear to be.

The following four reasons explain why people resist change:
(i) Uncertainty:

Perhaps the main reason for employee resistance to change is uncertainty. In the face of impending change, employees are likely to become anxious and feel nervous. Diverse feelings among workers may lead to substantial resistance force to change. For example, they may worry about their ability to meet the new job demands, they may think their job security is threatened, or they may simply dislike ambiguity.

(ii) Self-Interests:

Secondly, many impending changes threaten the self-interests of a particular manager or unit. So, he may resist such change.

(iii) Different Perceptions:

It is often observed that a manager recommends a plan for change on the basis of his (her) own assessment of a situation. His peers and subordinates may resist this change because they do not agree with the manager’s assessment or simply perceive the situation differently.

(iv) Feelings of Loss:

Finally, organizational people often resist change simply because of feelings of loss. Many changes involve altering work arrangements, which may disrupt existing social networks. Since social relationships are important to most people, they will resist any change that might adversely affect those relationships. Other intangibles that are threatened by the change include power, status, security, familiarity with existing procedures and self-confidence.

 

Overcoming Resistance to Organisational Change:

A manager should not consider himself helpless in the face of resistance to change. Instead, he should adopt one of the several strategies available for overcoming it. In fact, various useful strategies have been applied to overcome any type of employee resistance to organizational change.

(i) Participation:

Perhaps the most general and, of course, effective technique for overcoming resistance to change is employee participation. By participating in planning and implement­ing a change the employees are better able to understand the reasons for the change.

Through participation, it is possible to reduce uncertainty and project self-interests and social relationships. If employees get an opportunity to express their own ideas and to assume the perspectives of others, such employees are more likely to accept the change gracefully.

(ii) Education and Communication:

Another way of overcoming resistance to change is em­ployee education which is likely to broaden their horizons. This is very important, as most workers have a myopic vision of the organization to which they belong.

As John French has commented:

“Educating employees about the need for and the expected results of an impending change should reduce their resistance. And, if open channels of communication are established and maintained during the change process, uncertainty can be minimized”.

(iii) Facilitation:

Change may be slow and gradual or fast and rapid. The recent history of leading corporations indicates that introducing the change gradually can work wonders.

Making only necessary changes, announcing these changes well in advance, and allowing time for people to new ways of doing things are three surest ways of reducing resistance to change.

(iv) Force-Field Analysis:

Force-field analysis can also help overcome resistance to change. Fig. 15.6 shows how force-field analysis relates to the change process. In any change process, there are forces acting for, and for acting against the change. To fa­cilitate the change, the manager has to strike a balance so that posi­tive forces (i.e., forces working for change) outweigh the negative ones (i.e., forces working against change) such as employee resis­tance.

It is very important to try to remove or at least minimize forces acting against the change. If a pri­mary force pushing against the change is fear that a new work procedure will break up an exist­ing workgroup, the manager should try his best to find ways of keeping the group together. If such a solution can be found, one force acting against the change has been eliminated, and this will tip the balance in favor of the change.

Managing Resistance to change 1

 

(v) Power Coercion :

This approach is the last step if other methods of overcoming resistance to change fail. Managers can force employees into accepting change by making clear that resisting change can lead to losing jobs, firing, transferring or not promoting employees.

(vi) Negotiation & Bargaining : 

The negotiation and bargaining might involve offering better financial rewards for those who accept the requirements of the change program. Alternatively, enhanced rewards for leaving might also be offered.

Effective Implementation of change

 

Effective Implementation of change

Steps to Implementing Change

1. Management Support for Change

Employees develop a comfort level when they see management supporting the process.

It is critical that management shows support for changes and demonstrates that support when communicating and interacting with staff.

There is nothing worse than sending a mixed message to employees. If you can’t support the change 100%, don’t even think about making it.  Employees will know it and it will self destruct.

2. Case for Change

No one wants to change for change’s sake, so it is important to create a case for change.

A case for change can come from different sources.  It can be a result of data collected on defect rates, customer satisfaction surveys, employee satisfaction surveys, customer comment cards, business goals as a result of a strategic planning session or budget pressures.

Using data is the best way to identify and justify areas that need to improve through change initiatives.

3. Employee Involvement

All change efforts should involve employees at some level.

Organizational change, whether large or small, needs to be explained and communicated, specifically changes that affect how employees perform their jobs.

Whether it is changing a work process, improving customer satisfaction or finding ways to reduce costs, employees have experiences that can benefit the change planning and implementation process.

Since employees are typically closest to the process, it is important that they understand the why behind a change and participate in creating the new process.

4. Communicating the Change

Communicating change should be structured and systematic.

Employees are at the mercy of management to inform them of changes.

When there is poor communication and the rumor mill starts spreading rumors about change, it can create resistance to the change.

Being proactive in communications can minimize resistance and make employees feel like they are part of the process.

5. Implementation

Once a change is planned, it is important to have good communication about the roll-out and implementation of the change.

A timeline should be made for the implementation and changes should be made in the order of its impact on the process and the employees who manage that process.

For instance, if your organization is upgrading its software program, employee training should be done before the software is installed on their computers.

An effective timeline will allow for all new equipment, supplies or training to take place before it is fully implemented.

Implementing without a logical order can create frustration for those responsible for the work process.

6. Follow-up

Whenever a change is made it is always good to follow-up after implementation and assesses how the change is working and if the change delivered the results that were intended.

Sometimes changes exceed target expectations but there are occasions that change just doesn’t work as planned.  When this is the case, management should acknowledge that it didn’t work and make adjustments until the desired result is achieved.

7. Removing Barriers

Sometimes employees encounter barriers when implementing changes.

Barriers can be with other employees, other departments, inadequate training, lacking equipment or supply needs.

Sometimes management also needs to deal with resistant or difficult employees.

It is management’s responsibility to ensure that employees can implement change without obstacles and resistance.

It is unfortunate but there are times when employees simply can’t accept a change. In these rare cases, employees simply need to move on in order to successfully implement a needed change. These are difficult but necessary decisions.

8. Celebrate

It is important to celebrate successes along the way as changes are made.  Celebrating the small changes and building momentum for bigger changes are what makes employees want to participate in the process.

When employees understand why a change is made and are part of the process for planning and implementing the change, it allows for a better chance for successful implementation.

If you would like to learn more about managing change in your organization, John Kotter has a great book, Leading Change, With a New PrefaceEffective Implementation of change 1, that I highly recommend.

Organisational Diagnosis: Issues and Concepts – an overview

 



Organizational Diagnosis

Organizational Diagnosis is an effective way of looking at an organization to determine gaps between current and desired performance and how it can achieve its goals.

In recent years organizational diagnosis has evolved from a technique used as part of the organizational development process to a major technique in its own right.

Effective diagnosis should be an organic process in that as you start to look at an organization and its structures and what it does and does not do, change starts, as change progresses so does the ‘now’ performance and as such the diagnosis process also needs to re-start.

The BIR methodology looks at taking a ‘snapshot’ in time in a way that is quick and relatively unobtrusive. This allows decisions to be made, plans developed and actions implemented rapidly… Then using the benchmarking facility another snapshot of the organization can be made and new plans developed. A bit like the old story of “how do you eat an elephant? … one bite at a time. Developing an organization is no different.

The Diagnostic Cycle

The purpose of a diagnosis is to identify problems facing the organization and to determine their causes so that management can plan solutions.

An organizational diagnosis process is a powerful consciousness-raising activity in its own right, its main usefulness lies in the action that it induces.

The major steps of a diagnostic cycle include

  • Orientation
  • Goal setting
  • Data gathering
  • Analysis/ Interpretation
  • Feedback
  • Action Planning
  • Implementation
  • Monitoring/ Measure
  • Evaluation

PURPOSE OF ORGANISATIONAL ANALYSIS

The organizational analysis may be done for different purposes. These include:
1) Enhancing the general understanding of the functioning of organizations (i.e. educational or research purposes.)
(The direct beneficiary is the researcher or the analyst rather than the organization). Such a study may aim at enhancing the understanding of human behavior through a study of it in an organisation, or to enhance the understanding of the society as reflected in organizational life.

2) Planning for growth and diversification
An analysis or a diagnostic study may be necessary for planning growth, diversification, expansion, etc. The organizational analysis may reveal the strengths that could be used for growth and diversification, weak spots that need to be removed in the new plans, the precautions to be taken, structural dimensions to be kept in mind, etc. Several insights may be provided on structure, people, systems, styles, technology, etc. that have implications for growth.

3) Improving Organisational Effectiveness or Planning General Improvements
Organizational Analysis may be used also for improving the general efficiency of an organization. On the basis of a diagnosis made out of the analysis action steps could be initiated in terms of toning up administration, introducing new management systems and processes, reduction of wasteful expenditure, introduction of time savers, change of personnel policies to enhance employee motivation, restructuring of some parts, training, elimination of unwanted structures and teasers, improvements in general health of the organisation etc.

4) Organizational Problem Solving
Whenever some subsystems departments, units, etc. fall sick or start creating problems a diagnosis may be undertaken with a view to identify the source of the problem and take corrective action. A sick unit, a bottleneck, a communication block, a poor performing department, frequently occurring conflict between two departments, repeated failures of a management system or an organizational process, a frequent violation of an organizational norm, fall in discipline, reduction in output absenteeism, increase in conflicts, etc. can all lead to the need for an organisational diagnosis of a part of the organization or the entire organisation.

.
METHODS OF ORGANISATIONAL ANALYSIS

Of the various perspectives presented so far the Professional Management and the OD perspective encompass the Economic, Political and Sociological and Social Psychological perspectives. These are also more modern and are being more frequently used. Among these two of the professional management, perspective is vast and covers the entire management field. Since the focus of this course is on Organisation Design and Development, the OD or the Applied Behavioural Science Perspective is more appropriate for discussion here. Hence in the subsequent part of this unit and the subsequent unit, more details are presented relating to the organization’s development.
There are many ways of analyzing and diagnosing organizations and their phenomena. The following are the most frequently used methods:
1) Questionnaires
2) Interviews
3) Observation
4) Analysis of records, circulars, appraisal reports, and other organizational literature
5) Analysis of hard data of organizations and various units
6) Task forces and task groups
7) Problem identification/problem-solving workshops
8) Seminars, symposia, and training program
9) Recording and examining critical incidents,

PRACTICAL PERSPECTIVES ON ORGANISATIONAL ANALYSIS

This involves a study of the entire organization in terms of its objectives, its resources the allocation and utilization of these resources for the achievement of its objectives as well as its dynamic interaction trends with the external environment. The philosophy for the entire organization can be developed in terms of the following steps:
1) Analysis of Objectives: Analysis of the organisation’s objectives provides a clear understanding of both short and long-term objectives as well as the priorities that are accorded to various objectives. Specific goals and strategies should be stated for various divisions, departments, and sections of the organization as a means of achieving the long-term priority objectives. Through the continuous review of the objectives and their subsequent modification, it is positive to translate general objectives into
action plans.

2) Resource Utilisation Analysis: Having analyzed the objectives, the second step involves evaluating the process of allocation of various human and physical resources in the organization. Various efficiency indices can be derived to determine the adequacy of specific workflows so that detailed examination of the inputs and outputs of the total system is possible. The focus should be on the contribution that human resources make towards these indices.
3) Environmental Scanning: This involves analysis of the enterprise as a subsystem operating in a socio-cultural, economic, legal, political and competitive environment. This enables the organization to manage certain aspects of its environment and to accept other constraints which cannot easily be handled. Yet strategies can be devised to control these.
4) Organization Climate Analysis: The climate of an organization is a reflection of its employee’s attitudes towards various aspects of work, supervision, company procedures, goals and objectives and Productivity in the organization.
5) Work Practices: The practices adopted for the execution of various activities in different functional areas. These practices are like norms, which are followed by all employees in order to maintain uniformity in performing various tasks.
6) Technology: Technology is responsible for driving various Organisational Processes. The technology converts raw materials into final Products and Services offered by the organization.
7) Other resources: Other resources are financial resources, business practices, Administrative Practices, management expertise information
resources, R & D, etc.
8) Systems: Are the overriding set of interacting elements that acquire inputs from the environment transforms then and discharges outputs to the external
environment.


Diagnosis Methodology

 

Diagnostic Methods

Once a diagnostic contract is agreed upon with the client system and the desired outcome is identified, the next step is to plan the diagnosis. According to Alderfer and Brown, 1976, diagnosis is also a shared process and is about establishing a common understanding of the client organization and to decide on the basis of this common understanding, the nature and direction of change that is to be implemented in a planned manner.

It is important to note here that any organizational diagnosis work generates a lot of data and ‘planning the diagnosis’ actually refers to planning how data would be collected, analyzed and shared with the client system. Planning for the diagnosis is in a way is the kick-off initiative for the entire planned change process that is to be embarked upon by the client organization.

Planning also refers to choosing a diagnostic method of data collection i.e. purposeful and directed towards the right kind of source, to throw up the right kind of data that could be analyzed to study the right dynamics which the client system and the OD consultant needs to study to arrive at the desired outcomes.

The significance of a diagnostic plan lies in it being the foundation of the intervention process. Needless to mention, better the plan, sharper the diagnosis and more effective the interventions.

Until now, the following models are introduced for organizational diagnosis:

  1. Force Field Analysis (1951)
  2. Leavitt’s model (1965)
  3. Likert system analysis (1967)
  4. Weisbord’s six-box model; (1976) defined by focusing on One major output, exploring the extent to which consumers of the output are satisfied with it, and tracing the reasons for any dissatisfaction.
  5. Congruence model for organization analysis (1977)
  6. Mckinsey 7s framework (1981-1982)
  7. Tichy’s technical political cultural (TPC) framework (1983)
  8. High-performance programming (1984)
  9. Diagnosing individual and group behavior (1987)
  10. Burke–Litwin model of organizational performance and change (1992)

All models are based on open system (Open System Theory (OST) : From the General System Theory is defined by Von Bertalanffy (a system complex of interacting elements), Katz and Kahn (1978) apply the concept Open System Theory (OST) looks at the relationship between the organizations and the environment in which they involved.

The Consulting Process

The organizational Diagnostic phase is often integrated within an overall OD process, commonly called ‘a consulting process’. An example of such a process is:

Entry → Diagnosis → Action Planning → Implementation → Termination

As the second phase in the consulting cycle, it is also the first fully operational phase of the consulting process or cycle. The purpose of the diagnosis is to examine the problem faced by the organization in detail, to identify factors and forces that are causing the problem and to prepare the collected information to decide how to implement possible solutions to the identified problems.

The diagnosis of the problem is a separate phase from the solutions themselves.

Challenges in Diagnosis

Since diagnosis is the process of understanding how the client system organization is functioning currently and this understanding helps in determining the interventions to achieve the desired change outcomes, it is important that:

  • Diagnosis has to be a collaborative process – Any unilateral approach to diagnosis is never recommended. It is prudent that the OD consultant along with the key stakeholders of the client system jointly approaches the organizational diagnosis process. Correct diagnosis is an output of the collaborative approach of the client system as well as the OD consultant to identify the areas of change for design outcomes
  • That diagnosis does not necessarily mean finding faults – It needs to be noted that in the context of Organization Development, the process of diagnosis is to be taken in the spirit of ‘understanding for further development’ and not necessarily making a list of things in the organizations that are faulty.
  • The OD consultant needs to be careful that diagnosis is not a disciplinary activity for punitive measures. It is rather a deep dive into the organization to identify the scope of further improvement in the existing aspects of functioning and identify those areas which may have the potential to be changed for better organizational performance.
  • Focus remains on processes and not on persons. Since the spirit of diagnosis is development, the OD consultant needs to be alert and not play into the hands of the client system by focusing too much on individuals and not on institutional processes. The idea of diagnosis is not to zero upon ‘Who’s not Working’ but to examine ‘What’s not working’.
  • Systemic Challenge – Whatever be the size of the organization and irrespective of the complexity of the processes, organizations have to be viewed upon as Systems. Often, an error of judgment is made by focusing on one part of the organization in isolation of other parts. It needs to be understood that diagnosis must encompass understanding each part of the organization and how the different parts of the same organization, seemingly different, are linked or likely to be linked causing the effects as experienced by the organization today. The scope of alignment of the several parts of the organization into a systemic entity must not escape the diagnosis.
  • Ethical Challenge – The OD consultant must have his ethical radar on full alert to ensure that any proposal on diagnostic approach offered by the client system is not an imposition to steer the whole process into something of its own personal choice in the name and garb of organizational development and change management systems. The ethical challenge here for the organizational consultant is to ensure that the client system does not use the OD consultant and the OD endeavor to drive goals of personal interest.

Some Models of Organisational Change

 

 1. Lewin’s Change Management Model

Lewin’s Change Management Model is one of the most popular and effective models that make it possible for us to understand organizational and structured change. This model was designed and created by Kurt Lewin in the 1950s, and it still holds valid today. Lewin was a physicist and social scientist who explained the structured or organizational change through the changing states of a block of ice. His model consists of three main stages which are: unfreeze, change and refreeze. Let’s look at these stages in detail:Image result for lewin's change model

  • Unfreeze: The first stage of the process of change according to Lewin’s method involves the preparation for the change. This means that at this step, the organization must get prepared for the change and also for the fact that change is crucial and needed. This phase is important because most people around the world try to resist change, and it is important to break this status quo. The key here is to explain to people why the existing way needs to be changed and how change can bring about profit. This step also involves an organization looking into its core and re-examining it.
  • Change: This is the stage where the real transition or change takes place. The process may take time to happen as people usually spend time to embrace new happenings, developments, and changes. At this stage, good leadership and reassurance are important because these aspects not only lead to steer forward in the right direction but also make the process easier for staff or individuals who are involved in the process. Communication and time thus are the keys to this stage to take place successfully.
  • Refreeze: Now that the change has been accepted, embraced and implemented by people, the company or organization begins to become stable again. This is why the stage is referred to as refreeze. This is the time when the staff and processes begin to refreeze, and things start going back to their normal pace and routine. This step requires the help of the people to make sure changes are used all the time and implemented even after the objective has been achieved. Now with a sense of stability, employees get comfortable and confident of the acquired changes.

 

2. McKinsey 7 S Model

McKinsey 7-S framework or model is one of those few models that have managed to persist even when others came in and went out of trend. It was developed by consultants working for McKinsey & Company in the 1980s and features seven steps or stages for managing change.

StagesImage result for McKinsey 7 S Model

  • Strategy – Strategy is the plan created to get past the competition and reach the goals. This is the first stage of change according to McKinsey’s 7-S framework and involves the development of a step-by-step procedure or plan.
  • Structure – Structure is the stage or attribute of this model that relates to how the organization is divided or the structure it follows.
  • Systems – To get a task done, how the day-to-day activities are performed is what this stage is related to.
  • Shared values – Shared values refer to the core or main values of an organization according to which it runs or works.
  • Style – How the changes and leadership are adopted or implemented is known as ‘style’.
  • Staff – The staff refers to the workforce or employees and their working capabilities.
  • Skills – The competencies as well as other skills possessed by the employees working in the organization.

Benefits of this model

  • This model offers ways and methods to understand an organization and get a deep insight into the way it works.
  • This model integrates both the emotional as well as the practical components of change that is important to create ways to enable employees to deal with transition easily.
  • This model considers all parts to be important and equally worth addressing and thus does not leave out some aspects that may be of importance.
  • This model also offers a directional factor to organizational change.

Disadvantages of this model

  • Since all the factors are interrelated and interdependent on one another, the failure of one part means failing of all and this is the greatest disadvantage of this model.
  • This model is complex as compared to the others and differences are not focused upon in it.
  • Organizations that have used this model have experienced more cases of failure, and this too can be considered as one negative associated with it.

 

3. Kotter’s change management theory

Kotter’s change management theory is one of the most popular and adopted ones in the world. This theory has been devised by John P. Kotter, who is a Harvard Business School Professor and author of several books based on change management. This change management theory of his is divided into eight stages where each one of them focuses on a key principle that is associated with the response of people to change.

Stages

  • Increase urgency – This step involves creating a sense of urgency among the peImage result for Kotter’s change management theoryople to motivate them to move forward towards objectives.
  • Build the team – This step of Kotter’s change management theory is associated with getting the right people on the team by selecting a mix of skills, knowledge, and commitment.
  • Get the vision correct – This stage is related to creating the correct vision by taking into account, not just strategy but also creativity, emotional connect and objectives.
  • Communicate – Communication with people regarding change and its need is also an important part of the change management theory by Kotter.
  • Get things moving – To get things moving or empower action, one needs to get support, remove the roadblocks and constructively implement feedback.
  • Focus on short term goals – Focusing on short term goals and dividing the ultimate goal into small and achievable parts is a good way to achieve success without too much pressure.
  • Don’t give up – Persistence is the key to success, and it is important not to give up while the process of change management is going on, no matter how tough things may seem.
  • Incorporate change – Besides managing change effectively, it is also important to reinforce it and make it a part of the workplace culture.

Benefits of this model

  • This is a step-by-step model that is easy to follow and incorporate.
  • The main idea behind it is to accept the change and prepare for it rather than changing itself.

Disadvantages of this model

  • Since it is a step-by-step model, no step can be skipped to reach the one after that.
  • The entire process given in this model can be very time-consuming.

 

4. Nudge Theory

Nudge Theory or Nudge is a concept that finds use in behavioral science, economics, and political theory but can be applied to change management in organizations and businesses as well. This theory is mainly credited to Cass R. Sunstein and Richard H. Thaler.

Image result for Nudge Theory

Nudging someone or encouraging and inspiring them to change is the basic essence of this theory. Nudge theory is not only helpful in exploring and understanding existing influences but also explaining them to either eliminate them or change them to an extent where positives may begin to be derived.

It is important to note that there are many unhelpful ‘nudges’ around which can either be deliberate or may just be accidental. What this theory mainly seeks is to work upon the management as well as the understanding of the many influences on human behavior that lead to the changing people. It focuses on the design of choices which is responsible for directing our preferences and influencing the choices that we make. What this theory says is that choices must be designed in such a way that it can be aligned with the way people think and decide.

As compared to other theories, Nudge Theory is more sophisticated in its approach and is radically different from other ways of transitioning. This theory eliminates traditional change methods like punishment enforcement and direct instructions. One of the main benefits of this theory is that it takes into account the difference in feelings, opinions, and knowledge of people and also considers the reality of the situation as well as the characteristics of human nature and behavior. It thus minimizes resistance from employees of a company and is very well applied in several industries.

 

5. ADKAR model

ADKAR model or theory of change is a goal-oriented tool or model which makes it possible for the various change management teams to focus on those steps or activities that are directly related to the goals it wants to reach. The goals, as well as the results derived and defined using this model, are cumulative and in a sequence. This means that while using this model, an individual must get each of the outcomes or results in a certain orderly fashion so that the change can be sustained and implemented. The model can be used by managers of change to find out the various holes or gaps in the process of change management so that effective training can be offered to the employees. The following are some of the things for which this model can be used:

Image result for ADKAR model

  • To provide help and support to employees to go through the process of change or transitioning while the change management is taking place.
  • To diagnose and treat the resistance shown by employees towards change.
  • To come up with a successful and efficient plan for the professional as well as personal improvements of employees during the change.

ADKAR Model stands for

  • Awareness – of the need and requirement for change
  • Desire – to bring about change and be a participant in it
  • Knowledge – of how to bring about this change
  • Ability – to incorporate the change regularly
  • Reinforcement – to keep it implemented and reinforced later on as well.

Benefits of ADKAR Model

  • The model offers the capability of Identification and evaluation of the reasons why changes made are not working and why desired results are not being obtained.
  • The model makes it possible for one to break the changes into different parts and then figure out the point where change may not be as effective as planned.
  • It offers both the business dimension of change as well as people dimension of change.

 

6. Bridges’ Transition Model

Bridges‘ transition model was developed by William Bridges who is a change consultant, and this theory came into the eye of the public after it was published in the book “Managing transitions”. The specialty of this model or theory is that it concentrates and focusses upon transition and not change as such. The difference between transition and change may be subtle, but it is important to understand it. Where transition, on one hand, is internal, change on the other is something that happens to people, even when they don’t realize it. Transition is something that happens to people when they are going through the change. Change can be instant, a transition may take time.

The model focuses on three main stages that are given as follows:

Image result for Bridges’ Transition Model

  • Ending, Losing, and Letting Go – When people are first introduced to change, they may enter this first stage that is marked with resistance and emotional discomfort. Some of the emotions experienced at this stage include fear, resentment, anger, denial, sadness, frustration and most of all-disorientation. One has to realize that he/she is coming near to a certain end to accept new beginnings.
  • The Neutral Zone – This is the stage of uncertainty, impatience, and confusion. This stage can be considered as the bridge between the old and the new when people are still attached to the old but trying to adapt to the new. This stage is associated with low morale and reduced productivity, and one may experience anxiety and skepticism as well when going through this stage. But despite this, the neutral zone may also include innovation, renewal and a burst of creativity.
  • The New Beginning – When the neutral phase is passed through support and guidance, the stage of acceptance and energy enters the picture. At this level, people begin to embrace the change and understand its importance. They are beginning to build the skills needed to reach the new goals and may start to experience the benefits of the change already. It is associated with high levels of energy, new commitment and a zest to learn.

 

7. Kübler-Ross Five Stage Model

The Kübler-Ross five-stage model was developed by Elisabeth Kübler-Ross after she pursued her research on dying and death. This model is also thus known as the Grief Model as it talks about the various emotional states and stages a person goes through when he/she discovers that he/she may be nearing their end. The model can also be applied to other life situations such as loss of a job, changes in work and other less serious health conditions. The model helps to understand and deal with personal trauma and has been widely accepted worldwide. The following are the various stages that are associated with the Kübler-Ross model:

  • Image result for Kübler-Ross Five Stage Model 
  • Denial – Denial is the first stage of the model and is a stage when one is unable to accept the news. It is like a buffer or defense that a person tends to create due to the inability to absorb the news. One may experience shock as well as a sense of numbness during this stage and this happens because every person shows resistance towards change and may not want to believe what is happening.
  • Anger – When the news gets absorbed, then the first reaction is usually that of anger. The denial converts into anger when one realizes that the change will affect them and is for real. One starts looking for someone to blame during this stage. For different people, there can be different ways of directing anger.
  • Bargaining – The next step or stage involves bargaining to avail the best possible solution out of the situation or circumstance. Bargaining is a way for people to avoid ending up with the worst-case scenario and is a natural reaction to avoid extreme change.
  • Depression – When one realizes that bargaining isn’t working, he/she may end up getting depressed and may lose all faith. This is the phase when one is not bothered by anything and moves into a sad and hopeless state of mind. There are many ways to observe or identify depression and some of them include low energy, non-commitment, low motivation and lack of any kind of excitement or happiness.
  • Acceptance – When one realizes that there is no point in being depressed or fighting change, he/she may finally accept what is happening and may begin to resign to it. There are different ways in which people handle this stage. While some may begin to explore the options left with them to make the most of the situation, others may just feel that no option is left for them and may just resign to destiny.

Why change may fail?

  

Some Reasons for failure of the change-:

 

1. Clear performance focus

Success comes from a tight, clear connection between change expectations and business results. Failures come when an organization is overly focused on activities, skills and culture, or structural changes without creating a tight linkage to business results.

2. A winning strategy

Projects & organizations succeed when the strategies play to strengths. Failure happens when there is an overestimation of strength(s) and/or no ability to document concrete ‘wins.’

3. A compelling and urgent case for change

Success happens because there is a widely accepted ‘felt’ need for change. Failure occurs when there is no demonstrated commitment to the need for change. There is no clear ‘pain’ for remaining in the status quo.

4. Specific change criteria

In successful efforts, the underlying performance criteria and change requirements are clear, documented and not negotiable. If the ‘rules’ shift or evolve or can be negotiated, failure follows.

5. The distinction between decision-driven and behavior-dependent change

Some changes can be ‘decided’ – restructuring, purchases, hires/fires, etc. Another change is ‘behavior-dependent’ – skills development, new processes, implementing new accountabilities, etc. Organizations that over ‘decide’ and underinvest in ‘behavior’ changes fail.

6. Structure and systems requirements

Structure and systems (particularly IT) changes may be required for change but are almost always overused as either the answer or the excuse. Overdependence on structure and systems results in confusion and sapped energy, and is a great technique for stalling progress.

7. Appropriate skills and resources

Successful change often demands new skills that are being created; requiring some level of transition resources until new skills are fully functional. Lack of the right talent (skills) and resources against an opportunity is a certain failure, yet organizations consistently repeat this shortcoming.

8. Mobilized and engaged pivotal groups

Organizations that succeed tap critical internal influencers to champion the change and actively engage staff in driving the change. Getting beyond basic change rhetoric requires a compelling employee value proposition (“what’s in this for me,”) achievable goals, tools and shared information.

9. Tight integration and alignment of all initiatives

Major change inevitably requires dozens of initiatives (strategy projects, re-engineering efforts, training, leadership development, communications, technical redesign, new measurements, etc.). The result is a massive integration challenge. Failure results from locally and globally isolated projects, cross-project conflicts, resource competition, and confusion as to how projects do or don’t relate.

10. Leader ability and willingness to change

The ceiling on any attempt to change at the project, department or organization level is set at the leaders’ willingness to embrace and embody the change. Whatever behaviors individual project or leadership team members cannot adopt, become effectively impossible for the organization.

Examples of corporations that failed to innovate

1. Kodak

kodak_camera

Kodak, a technology company that dominated the photographic film market during most of the 20th century. The company blew its chance to lead the digital photography revolution as they were in denial for too long.

Steve Sasson, the Kodak engineer, actually invented the first digital camera back in 1975. “But it was filmless photography, so management’s reaction was, ‘that’s cute—but don’t tell anyone about it,” says Sasson. The leaders of Kodak failed to see digital photography as a disruptive technology.

A former vice-president of Kodak Don Strickland says: “We developed the world’s first consumer digital camera but we could not get approval to launch or sell it because of fear of the effects on the film market.” The management was so focused on the film success that they missed the digital revolution after starting it. Kodak filed for bankruptcy in 2012. The Kodak failure surprised many.

 

2. Nokia

nokia_mobile_phone

Nokia, a company founded in Finland was the first to create a cellular network in the world. In the late 1990s and early 2000s, Nokia was the global leader in mobile phones.

With the arrival of the Internet, other mobile companies started understanding how data, not voice, was the future of communication. Nokia didn’t grasp the concept of software and kept focusing on hardware because the management feared to alienate current users if they changed too much.

Nokia’s mistake was the fact that they didn’t want to lead the drastic change in user experience. This caused Nokia to develop a mess of an operating system with a bad user experience that just wasn’t a fit on the market.

The company overestimated the strength of its brand and believed they could arrive late in the smartphone game and succeed. In 2007 Steve Jobs launched the iPhone, a phone without a keyboard, which was revolutionary at the time. Really, watch the video and listen to people losing their minds the first time the watch someone using a touchscreen. In 2008 Nokia finally made the decision to compete with Android, but it was too late. Their products weren’t competitive enough.

3. Xerox

XEROX_machine

Another one of those big business examples of failure is Xerox. Xerox was actually first to invent the PC and their product was way ahead of its time. Unfortunately, the management thought going digital would be too expensive and they never bothered to exploit the opportunities they had.

CEO David Kearns was convinced that the future of Xerox was in copy machines. The digital communication products invented weren’t seen as something that could replace black marks on white paper. Xerox failed to understand that you can’t keep perpetually making money on the same technology. Sometimes technology fails too.

4. Blockbuster

blockbuster_corporations that failed to innovate

The video-rental company was at its peak in 2004. They survived the change from VHS to DVD but failed to innovate into a market that allowed for delivery (much less streaming).

While Netflix was shipping out DVD’s to their consumer’s homes, Blockbuster figured their physical stores were enough to please their customers. Because they had been the leader of the movie rental market for years, management didn’t see why they should change their strategy.

Back in 2000, the founder of Netflix Reed Hastings proposed a partnership to the former CEO of Blockbuster John Antioco. Netflix wanted Blockbuster to advertise their brand in the stores while Netflix would run Blockbuster online. The idea got turned down by Antioco because he thought it was ridiculous and that Netflix’s business model was “niche business.” Little did he know that Hasting’s idea would have saved Blockbuster. In 2010 Blockbuster filed for bankruptcy and Netflix is now a $28 billion dollar company.

 

5. Yahoo

yahoo_innovation

In 2005 Yahoo was one of the main players in the online advertising market. But because Yahoo undervalued the importance of search, the company decided to focus more on becoming a media giant.

The decision to focus more on media meant they neglected consumer trends and a need to improve the user experience. Yahoo managed to gain a massive number of viewers to view content but failed to make enough of a profit in order to scale.

Yahoo also missed out on a lot of opportunities that could have saved them. For example, in 2002 they almost had a deal to buy Google, but the CEO of Yahoo refused to go through with the deal. And in 2006 Yahoo had a deal to buy Facebook, but when Yahoo lowered their offer, Mark Zuckerberg backed out. If the company had taken a few additional risks, maybe we would all be yahooing right now instead of googling.

 

6. IBM

IBM_Systems_Mainframe

International Business Machines (IBM), nicknamed “Big Blue”, is an American multinational technology company that had its breakthrough in the 1960s with the IBM System/360– a family of computers designed to cover the complete range of applications.

In the early 1990s, IBM failed to adjust to the personal computer revolution and thus began their downfall. The company adjusted their focus back on hardware instead of software solutions. Today, after going through several transitions, IBM is one of the most powerful names in enterprise software. They turned their luck around with new management. An ending that most companies don’t see.

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7. Blackberry Motion

  blackberry_failed-to-innovate

BlackBerry, a line of smartphones and tablets, was a smashing success in 1998. They changed the game in the mobile industry by offering a device with an arched keyboard. Their encryption even into the early 2000s was second to none but they weren’t thinking of user experience.

Just a few years later the entire mobile industry started focusing on bigger touchscreen displays, while BlackBerry was more concerned about protecting what it already had. Failing to adapt to changes, in 2017 the CEO John Chen announced that BlackBerry was out the smartphone manufacturing business and that the company has built a new strategy. “Under this strategy, we are focusing on software development, including security and applications.”The company plans to end all internal hardware development and will outsource that function to partners. .

8. Hitachi

Hitachi 

Japanese brand Hitachi used to be an electronic giant together with Sony, Panasonic, and Sharp. It was one of those brands that you’d spot in almost every household. Now the company is losing billions of dollars a year. The reason? The digital revolution.

The electronics industry has changed, where consumers don’t have as high of a desire for their high price products. The digital revolution not only changed the way electronic gadgets work, but they also changed the way they are manufactured.

Gerhard Fasolt, an economist, thinks: “Look at Apple, they make iPods and iPhones. Apple makes at least 50% profit margins on those. People say iPhones are made in China, but maybe only 3% of the value of an iPhone stays in China. So it’s hard to become rich today on the scale of  just by manufacturing – you have to do a lot more.” In 2012 Hitachi announced that they will stoop manufacturing TVs, but the factory used for it will instead start producing projectors and chips.

 

9. Polaroid

Polaroid 

Founded in 1937, Polaroid was one of America’s early high-tech success stories. The company became a hit 1972 when they introduced the SX-70, the camera that superseded the old peel-back Polaroids with a picture that developed as you watched. In the late ’90s, Polaroid was at its peak.

In 2001, due to the boom of digital photography, the company filed for bankruptcy. The leaders of the company continued to believe paper print was what customers wanted. They were great people who failed.

Gary DiCamillo, CEO of Polaroid from 1995-2001, said in an interview: “People were betting on hard copy and media that was going to be pick-up-able, visible, seeable, touchable, as a photograph would be. It’s amazing, but kids today don’t want hard copy anymore. This was the major mistake we all made: Mac Booth, Gary DiCamillo, people after me…. That was a major hypothesis that I believed in my marrow that was wrong.”

There might still be hope for the type of photos and nostalgia that only comes with a Polaroid camera. In recent years the demand for instant cameras has grown significantly. Polaroid’s President and CEO Scott W.Hardy states: “There’s a nostalgia to instant photography for generations of consumers who grew up with it, and there’s a novelty to it for generations of consumers who grew up in the digital age and have never held an actual photo in their hands until recently.”

10. Toshiba

Toshiba 

Another Japanese company that used to be a tech giant is now struggling to stay alive. Back in the mid-1980s, Toshiba was one of the world’s most innovative companies.

During that time they launched the T1100, its first mass-market laptop. John Rehfeld, a former employee of Toshiba who helped sell the laptop overseas said: “There were a few laptops out before then but they all had compromised. That’s why Toshiba got off to a fast start. We had a laptop that performed like a desktop.”

The Internet killed Toshiba’s growth, people were buying their competitors’ computers for lower prices online. In 2016 Toshiba announced that they would stop making PCs for European consumers, but will continue to sell computers to businesses in Europe and the US. In 2017 Toshiba announced that they are considering selling its prized memory chip business to pay down debt. Later that year the world’s second-largest producer of NAND memory chips Bain-Led Group stated that they bought the chip business for $18 billion.

 

11. Motorola

Motorola

Motorola demonstrated the first handheld phone in 1973. The brand’s vice-president Marty Cooper said: “Battery lifetime was 20 minutes, but that wasn’t really a big problem because you couldn’t hold that phone up for that long.” Even though Motorola kept producing various versions of its cellphone, they failed to see that customers wanted innovation in software rather than hardware.

Clearly lacking market knowledge, Motorola’s new products in the early 2000s weren’t enough to grow the business. The products weren’t user-friendly and Motorola completely missed the movement to 3G. Essentially, Motorola didn’t implement 21st-century communication with its products, making it hard to compete with smartphones on the market. In August 2011 Motorola was acquired by Google.

Work Redesign Model

 

The decision to execute the concept of work redesign is challenging. It must involve top management who are visionary, persuasive, and consistent. The need for work redesign may be initiated by financial challenges, often a reduced budget. Other reasons include:

  • Strategic planning demonstrates the need for a change.
  • Leadership sees problems and challenges coming.
  • Customers report a need for change.
  • Regulatory changes require a review.
  • Leadership wants to be a distinguished competitor.

Prior to initiating work redesign, it is very important to be clear about why the organization is promoting a concept or solution called “work redesign.” As a leader or HR professional supporting the initiation of this sort of change, you need to be prepared to address the questions identified below.

  • What is the driving purpose of the redesign? In particular, consider scope and impact.
  • What is the desired result or outcome? In particular, examine potential financial savings, efficiency or improvement to employee well being.
  • How will we engage individuals and teams within the process of review?

In a change there are four dimensions at work:

  • People – The characteristics, attributes, and skills of the people working in the environment. PEOPLE make an organization and need to be our number one priority
  • Systems/Process – The structure, equipment, methods, and technologies used to get the work done.
  • Results – How we know and let others know that we are successful.
  • Culture – How we relate with one another, customers and do our work together.

This comprehensive model examines the current and future state and lays the foundation to enable ongoing systematic improvement.

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