1、Organizational Change Processes in China Dr.Geert W.J.HelingMaastrichtApril,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.Designing a Change Pro
2、gram8.Structuring a Change ProgramProgram(2)9.Dynamics of Change10.Interventions11.Implementation12.Resistance and how to handle it13.Role and position of Change agents14.Case presentations15.IntegrationBasics of ChangeqWhat is change?qDifferent ways of conducting changeqContext of organizational ch
3、angeqResponses to ChangeCurrent 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
4、and more effectively than their competitors have better chances to survive.”WTO and ChinaConsequences?Advantages Disadvantages Threats Opportunities Time scope PETS-dimensionsIssues in Chinese business Structure Culture Leadership&Management New versus Old Differences with western style business Dev
5、elopment Etc.Fundamental Issues in Organizational Change Types of change Ways of changing Dimensions of Change Programs Responses to Change Core principlesTypes of Change Improvement Innovation TransformationTwo ways of changingImposed ChangeEasyQuickShort termResistance Evoked ChangeComplexLong ter
6、mCommitmentSustaining Dimensions of Change ProgramsvStrategic considerationsvTechnical preferencesvEconomic/Financial DimensionvSocial(HR)considerationsvCultural aspectsSmall versus Large Scale Type of business Size of organization Urgency of problems(need)History of organization Maturity of people
7、Attitude of Top Management Responses to changesqueezedTop-managementMiddle managementWorking floor/employeesresistantisolatedCore principles (1)(How to make it work)1.Use Goal orientationThere must be Clarity about:qproblem situationqGoalsqCriteria for successqOrganizationqPlanningqControl2.Make a G
8、ood diagnosisqSeek informationqSummarizeqAnalyze qFeedback Core principles (2)(How to make it work)3.Use Systems thinking:always keep the whole system in mindqStructuresqBehaviorqCulture4.Use participation for commitmentqBetter decisionsqStimulate motivationqIdentification with organizationCore prin
9、ciples (3)(How to make it work)5.Give support in order to stimulate self-managementqUse feedbackqTrainingqFacilitate communicationqGive supportqDelegate authorities for use of resources6.Manage the Process of ChangeqAnalyse process continuouslyqDeal with resistance and conflictsqUse flexible plannin
10、gCore principles (4)(How to make it work)7.Communicate intensivelyqCommunicate,communicate,communicate8.Carefully select key-personsqwho are potential alliesqWho are opinion leadersqWho will show resistanceqWho can be a leaderPhases of a Change ProgramStep 0:determine internal and external pressure/
11、demands for changeStep 1:Make up diagnosisStep 3:Determine vision and strategyStep 4:Action Planning:design and develop the Change ProgramStep 5:Structure the Change ProcessStep 6:Determine Change dynamicsStep 7:Determine Change Strategies and MethodsStep 8:ImplementStep 9:Evaluate and Adjust/Correc
12、tGoals Culture Structure Technology Behaviour&ProcessesOutputGroup PerformanceIndividualPerformanceQuality of Working ConditionsGroup compositionStructureTechnologyIndividualcharacteristicsGroup BehaviourProcessesCultureIndividual attitudesMotivationConvictionsSourcesSourcesHuman ResourcesOrganizati
13、onlevel GrouplevelIndividuallevelENVIRONMENT Source:Harrison,1978,p.51ENVIRONMENT=influence=feedbackInternal/external pressure/demandsleading to change Step 0Evaluate Change Results Step 7Determine Change Strategies and Implementation methodologies Step 6Determine theChange Dynamics Step 5Structure
14、theChange Process Step 4Design and Develop Step 3Determine Vision And StrategyStep 2Draw up diagnosis Step 1ChangeGoalsChangeSituation ChangeStrategyChange EffectivenessOrganizational ExpertiseChange Management ExpertiseSource:Cozijnsen&Vrakking,1996.General DirectorLHCCpmmunist PartysOmplementation
15、 PanelDeputu General DirectorDeputy General DirectorDeputy General DirectorWeaving PlantDueing PlantGarment PlantKnitting PlantSupport Units&ServicesAdministrationFinance Dept.Import-Export Dept.Materials Dept.R&D CentrePlanning&Sales Dept.Legend:Officially designed reporting lineDelegated tasks to
16、DGD by the GD,But are subject to frequent changesOrganisation Chart of LHCDiagnostic Instruments7 S-modelOrganization Matrix modelManagement Effectiveness AnalysisEtc.Strategy System s Structure Staff Sty le Sk ills Shared ValuesStructureStaffStyleSkillsSystemsShared ValuesStrategyHard variablesSoft
17、 variablesThe 7-S model The Organization MatrixPolicyTechnicalCulturalStaff/PersonnelPower/InfluenceOrganiza-tionG oals andmethodsT asks andauthoritiesKno wledge andskillsStakeholdersDecision takingAutonomyO rganizationalClimateCo-operationAttitudeBox 1:Goals and methodsCore activitiesStrategic plan
18、ningMarketingFinancingetc.Box 2:Internal Structure (Tasks&authorities)OrganigramTask/project descriptionsNeed for informationProceduresetc.Box 3:Knowledge and skillsFunction needsRecruitmentKnow-how Salary systemetc.Box 4:StakeholdersCEO/Board of directorsPressure groupsCustomers EmployeesFinanciere
19、tc.Box 5:Decision takingInformal structure Participation in decision takingReview of resultsConsultationNegotiationsetc.Box 6:AutonomyRoom for actionPersonal perspectiveStatusIndividual interestsetc.Box 7:Organizational ClimateVisionCommitmentElan House style etc.Box 8:Co-operationProblem solving Te
20、am-play Co-ordination of ideas Meeting styles etc.Box 9:AttitudeCreativity FellowshipTrust Dedication etc.Management Effectiveness Analysis Measures behavior+effectiveness Scientific approach Questionnaire(111 items)21 behavioural sets Situation dependent Strategic+Feedback profiles Individual+group
21、 analyses Vision and Strategy?Designing a Change ProgramGrow or a Roll-out model TimingNeed&wantSkills(ability)attitude(culture)Change CompetenceInfrastructureStrategic ComponentOrganizationalSuccessInstitutionalComponentHumanResourcesComponentChange PolicyChange CapacityLeading PotentialSpeedWillin
22、gnessInfrastructure of Change CompetenceSource:Cozijnsen&Vrakking,1995Competing Values Framework:Organizational Effectiveness (Quinn model 1)FlexibilityExternalInternalControl open systems modelRational goal modelInternal process modelHuman relations modelMeans:cohesion,moraleEnds:human resource dev
23、elopmentMeans:planning,goal settingEnds:productivity,efficiencyMeans:flexibiity,readinessEnds:growth,resource acquisitionMeans:information management,communicationEnds:Stability,controlQuinn model 24 conditions for changing behaviourneedwantbeing allowedcanRoll-out change1.Preparation2.Planning3.Tra
24、nsition structures4.Implementation 1.(=rolling-out)5.RewardGrow or Process Change Preparation Planning Take first step Check and Correct Take next step Etc.TerminateDynamics of Change Pain and desire Losses and gains Resistance Involvement MotivationTypes of LossChange always implies losing some thi
25、ngs.Examples of things that people might fear they could lose are:oSecurityoStatusoCompetenceoRelationshipsoSense of directionoTerritorySigns of ResistanceIndividual resistance:Complaints Errors Anger Disobeying and stubbornness Apathy Absence due to illness Withdrawal .Signs of ResistanceOrganizati
26、onal resistance:Accidents Increase in workers compensation claims Increased absenteeism Gossip Sabotage Increase in health care claims Lowered productivityPhases of TransitionFrom Danger to Opportunity1.Denial3.Exploration1.2.Resistance4.CommitmentPhases in mourning process1.Denial2.Anger3.Hustle4.D
27、epression5.Acquiescence6.AcceptanceReactions 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
28、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 also has some benefits”“Well of cours
29、e 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 emotions Let early adaptors take initiative3.Hustl
30、e Be clear and make people accountable Communicate goals and vision Negotiate about implementation proposalsHow to handle these reactions?(2)4.Depression(silence)no return statement Take decisions and carry them out immediately Make implementation irreversible5.Acquiescence Give support “Let us go b
31、ack to work”Support process of learning and adaptation6.Acceptance Reinforce Control,evaluate and celebrate successes Use team building,make up new goalsDos and Donts:(Some general Basic guidelines for effective Change)1.Have a good reason for making the change2.Involve people in the change3.Put a r
32、espected person in charge of the process4.Create transition management 5.Bring in outsider help6.Provide training in new values and behavior7.Establish symbols of change8.Acknowledge and reward peopleDos and Donts in PreparationPrepare your employeesDescribe the change as completely as you canResear
33、ch what happened during the last changeAssess the organizational readinessDont make additional changes that arent critical/necessaryDos and Donts in PlanningMake contingency plansAllow for the impact on personal performance and productivityEncourage employee inputAnticipate the skills and knowledge
34、that will be needed to master the changeSet a time table and objectives so you can measure the progressTransition StructuresCreate a transition management group to oversee the change(project team).Develop temporary policies and procedures during the change.Demonstrate flexibility to try new things.L
35、oosen 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 ImplementationProvide appropriate training in new skills and coaching in new values and behaviorsEncourage self-managementGive m
36、ore feedback than usual to insure people always know where they standAllow for resistanceGive people a chance to step back and reflect on what is going onDos and Donts in Implementation(continued)Encourage people to think and act creativelyLook for any opportunity created by the changeAllow for with
37、drawal and return of people who are temporarily resistantCollaborateMonitor the change processThe Consultant Academic education Communicates well Creative thinker Ethical Has strong“network”Perseverance Socially oriented Other(discuss)Roles of the consultant RESOURCE:ConnectionsExpertiseProblem solv
38、ing(content)Service PROCESS:Change agentCoachProblem finder/solver(processes)Social methodologySparring partnerTrainerSkills of the ConsultantAnalytical&diagnostic Communication skills(360 degree)Influencing skills+adequate use of powerManagement skillsMarketing/sales abilitiesProblem finding/solvin
39、gSelf discipline/ethical sensibilitySocial skillsInternal vs External Costs Commitment Objectivity/Independence Participates in implementation“Political”involvement Second opinion Specific knowledge/experienceConsultant Selecting criteriaProfessional integrityProfessional competenceFirm and consulta
40、ntKnowledge of industryUnderstanding of country and cultureSkills(hard and soft)Creativity and innovationRapport with consultantq Assignment designq Capacity to deliverq Ability to mobilize resourcesq Costsq Image/reputationq Other(discuss.)ConclusionsvDifferent actors(management levels)have differe
41、nt rolesvManaging change requires skills and attitudevEvery change involves gains and lossesvOrganizational Change needs careful preparation and planningvRewarding is better than punishingvResistance is a natural reactionvThe Law of TransitionPeople dont hate to change.People hate to be changed!7 habits of highly successful peopleBe proactiveBegin with the end in mindPut first things firstThink Win-winSeek first to understand,then to be understoodSynergizeSharpen the sawAfter St.Covey
