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Organizational Change & Effective Management - Coggle Diagram
Organizational Change & Effective Management
Managing Organizational Change & Development
Organizational Life Cycles & Large-Scale Planned Change
Change
Resistance to Change
Change can be costly, troublesome, unfamiliar, threatening, and difficult to understand & accomplish
New manager desires to create an impact but forgets to serve as a caretaker: frustration with longtime employees who commit to status quo
Successful organizational change usually requires sustained support from leaders, participative planning, and flexible implementation
Types of Change - Daft (2013) four types
Technology changes
Administrative changes
Changes in products & services
Human resource changes
Life Cycles
Organizational Decline & Death
Environmental Entropy
Resources and political support may simply deteriorate over time in their capacity to support the organization
Responses to Decline
Organizations respond with greater/lesser aggressiveness
Negative/resistant disposition toward pressures for change
More receptive approach to the need for change by reacting or generating change and adaptation
Pressures for reduced government: tactics for responding to funding cutbacks
Vulnerability & Loss of Legitimacy
Public/public officials question the legitimacy of products or activities
Loss of resources or support from environment
Innovation & Organizations
Light (1998): small nonprofit organizations most likely to sustain innovations, and core values play a strong role
18 attributes of innovations that affect implementation
Borins (1998): successful innovations occur when there is systematic thinking and planning for change
Linden (1990): innovative manager can make organization more effective, both rational and intuitive thinking
Stages of Organizational Life
Down (1967) three-stage life cycle
Collectivity stage - members develop high cohesion & commitment
Bonus stage: Structural elaboration & adaptation - allow more decentralization
Struggle for autonomy - the rigidity cycle for bureaus
Entrepreneurial stage - emphasis on the open-systems model
Organization Development
French & Bell (1999) assumptions
Leadership style & culture at higher levels pervade the organization
Win-lose conflict management strategies are harmful in the long run
Suppressed feelings are detrimental
People have a drive to grow & develop
Collaborative effort has value
The work group is a very important factor
OD Interventions & Change Processes
Phases of an Action Research Model for Organizational Development
Discussion from diagnosis & earlier sessions: New attitudes
Action planning
Further feedback
Action
Further data gathering
Further data gathering
Joint action planning
Further feedback
Feedback
Diagnosis
Further action planning
Executives confer with organization consultant
Continuation & consultant departure: cycle of phases
Performance gap
OD in the Public Sector
Golembiewski (1969, 1985) five primary structural constraints
Weak relationships between civil servants & politically appointed executives - diffuse authority
Political system continually shifts its emphasis among several goals for the executive branch
Administrative hierarchy is weakened by competing affiliations - harder to sustain OD projects
Conflicting interests & reward structures complicate the problem. Stakeholders may respond to different incentives
Multiple actors have access to multiple authorities: complex array of possible supporters/resisters for an OD project
Success & Failure in Large-Scale, Planned Organizational Change
Patterns of Successful Organizational Change
Diagnosis & recognition
Invention & commitment
Intervention & reorientation
Experimentation & search
Pressure & arousal
Reinforcement & acceptance
Steps for Successful Organizational Transformation
Empower others to act on the vision
Create short-term wins
Communicate the vision
Consolidate improvements & produce further change
Create a vision
Institutionalize the new approach
Form a powerful guiding coalition
Establish a sense of urgency
Conditions for a Successful Change in a Federal Agency
Appropriate timing for collective support
A comprehensive, clear, realistic alternative process
A durable power center, committed to successful change
Determinants of Successful Implementation of Organizational Change in the Public Sector
Ensure top management support & commitment
Build external support
Build internal support & overcome resistance
Provide resources
Provide a plan
Institutionalized change
Ensure the need
Pursue comprehensive change
Advancing Effective Management in the Public Sector
Trends & Developments in Effective Public Management
The Reinventing Government (REGO) Movement
Osborne & Gaebler's Strategies for Reinventing Government
Mission-driven government
Results-oriented government
Competitive government
Customer-driven government
Community-owned government
Enterprising government
Catalytic government
Anticipatory government
Decentralized government
Market-oriented government
The National Performance Review (NPR) - Major Priorities & Initiatives
Cut Red Tape
Streamline the budget-making process
Decentralize personnel policy
Streamline procurement
Reorient the inspectors general
Eliminate regulatory overkill
Empower state & local governments
Put customers first
Cut back to basics
Empower employees to get results
Total Quality Management (TQM)
Deming (1950s) tenets
Institute training, teach leadership skills, and encourage self-improvement
Drive out fear and create trust under a climate of innovation
Constantly improve the production system
Use teams toward optimal goal achievement
Have everyone learn and adopt the new philosophy
Eliminate numerical quotas & management by objectives, concentrate on improving processes and on methods
Remove barriers to pride of workmanship
Statement of company purposes for all employees to see
Cohen & Brand (1993) and Dean & Evans (1994): Conditions & principles for well-developed TQM programs
Quality measurement & assessment at all production phases with commitment to improve quality continuously
Teamwork, trust, and communication in improving quality
Work with suppliers to improve relationship to quality of organization's products & production processes
Well-developed training programs to support teamwork and quality assessment & improvement
Emphasis on defining quality based on customer needs
Top-down broad organizational commitment to the process that encompasses strategy, culture, communication, etc.
Profiles of Corporate Excellence
Peters & Waterman (1982): Paradoxical aspects in management approaches
Enhancing productivity through people
A hands-on, value-driven approach
Valuing autonomy & entrepreneurship
Sticking to the knitting
Staying close to the customer
A simple form & lean staff
A bias for action
Simultaneous loose & tight properties
Research on Effective Public Organizations
Gold (1982): common characteristics of effective public organizations
Emphasize clear missions that are widely communicated & understood throughout the organization
People see organization as special because of its products/services, they take pride in it
Emphasize delegation of responsibility & authority as widely and as far down as possible - involve people in decision-making
Management places great value on the people: fairness, respect, honest & informal communication
Clear goals & tasks, employees receive feedback, and good performance earn recognition & rewards
Managers emphasize innovative ways of managing people despite the organization itself is not innovative
Handling of functions is aimed at challenging people and encouraging their enthusiasm & development
Hale (1996): Values that effective organizations & leaders typically hold
Learning
A focused mission
Enabling leadership
A maturing community
Performance Measurement & the PART - The Human Capital Movement
Human capital cornerstones
Strategic human capital planning
Acquiring, developing, and retaining talent
Leadership
Results-oriented organizational culture
Managing Major Initiatives & Priorities: Privatization & Contracting Out
Forms of privatization of public services
Provide vouchers to recipients to buy from private providers
Sell of or shed activities to private operators, or ceasing them so that private operators take them over
Grant a franchise to private operators
Initiate self-help or coproduction programs
Use volunteers
Provide subsidies & financial incentives to private operators
Conditions for Successful Privatization & Contracting Out
Leadership, Strategy, Culture
Agency leaders should include their coordination with agency strategies & culture
Structure
Departmentalization or subunits
Hierarchy & centralization
Specialization & responsibility
Rules & regulations
Goals & Values
Privatization initiative should support the agency's mission and its primary goals & values
Goals & values of the privatized activity should be clear
Process
Decision-making processes
Communications
Change & innovation
People
Power relationships
Environment
Resource support
Legal & institutional environment
Political environment
Bidders
Performance & Effectiveness
Privatization initiatives should have performance measures that are monitored & used in evaluation
Measures should include criteria such as equity, representativeness, responsiveness, and social goals
Contingency theory of privatization
Range of contractors submit competitive bids to avoid monopolistic bidding
Effectively manage strong employee or union opposition to the contract
Carry out effective precontract planning & analysis
Establish effective contracts with clear goals & performance criteria