OrganizationalChangeProcessesinChinaDr.GeertW.J.HelingMaastrichtApril,2002Program(1)IntroductionBasicsofChangeCurrenttrendsinChinaFundamentalissuesinOrganizationalChangePhasesinChangeProcesses:amodelofChangeDiagnosis:instrumentsandmethodsDesigningaChangeProgramStructuringaChangeProgramProgram(2)DynamicsofChangeInterventionsImplementationResistanceandhowtohandleitRoleandpositionofChangeagentsCasepresentationsIntegrationBasicsofChangeWhatischange?DifferentwaysofconductingchangeContextoforganizationalchangeResponsestoChangeCurrenttrendsinChinaPoliticalshifttowardsmoreMarketorientationBoostingproductionandeconomyOpeninguptointernationalmarketEntrancetoWTOFrominwardtooutwardorientationNewidentityinglobalpolitics

“Organizationsthatareabletoconductchangesfasterandmoreeffectivelythantheircompetitorshavebetterchancestosurvive.”WTOandChinaConsequences?AdvantagesDisadvantagesThreatsOpportunitiesTimescopePETS-dimensionsIssuesinChinesebusinessStructureCultureLeadership&ManagementNewversusOldDifferenceswith‘western’stylebusinessDevelopmentEtc.….FundamentalIssuesinOrganizationalChangeTypesofchangeWaysofchangingDimensionsofChangeProgramsResponsestoChangeCoreprinciplesTypesofChangeImprovementInnovationTransformationTwowaysofchangingImposedChangeEasyQuickShorttermResistanceEvokedChangeComplexLongtermCommitmentSustainingDimensionsofChangeProgramsStrategicconsiderationsTechnicalpreferencesEconomic/FinancialDimensionSocial(HR)considerationsCulturalaspectsSmallversusLargeScaleTypeofbusinessSizeoforganizationUrgencyofproblems(need)HistoryoforganizationMaturityofpeopleAttitudeofTopManagementResponsestochangesqueezedTop-managementMiddlemanagementWorkingflooremployeesresistantisolatedCoreprinciples(1)(Howtomakeitwork)UseGoalorientationTheremustbeClarityabout:problemsituationGoalsCriteriaforsuccessOrganizationPlanningControlMakeaGooddiagnosisSeekinformationSummarizeAnalyzeFeedbackCoreprinciples(2)(Howtomakeitwork)UseSystemsthinking:alwayskeepthewholesysteminmindStructuresBehaviorCultureUseparticipationforcommitmentBetterdecisionsStimulatemotivationIdentificationwithorganizationCoreprinciples(3)(Howtomakeitwork)Givesupportinordertostimulateself-managementUsefeedbackTrainingFacilitatecommunicationGivesupportDelegateauthoritiesforuseofresourcesManagetheProcessofChangeAnalyseprocesscontinuouslyDealwithresistanceandconflictsUseflexibleplanningCoreprinciples(4)(Howtomakeitwork)CommunicateintensivelyCommunicate,communicate,communicateCarefullyselectkey-personswhoarepotentialalliesWhoareopinionleadersWhowillshowresistanceWhocanbealeaderPhasesofaChangeProgramStep0:determineinternalandexternalpressure/demandsforchangeStep1:MakeupdiagnosisStep3:DeterminevisionandstrategyStep4:ActionPlanning:designanddeveloptheChangeProgramStep5:StructuretheChangeProcessStep6:DetermineChangedynamicsStep7:DetermineChangeStrategiesandMethodsStep8:ImplementStep9:EvaluateandAdjust/CorrectGoalsCultureStructureTechnologyBehaviour&ProcessesOutputGroupPerformanceIndividualPerformanceQualityofWorkingConditionsGroupcompositionStructureTechnologyIndividualcharacteristicsGroupBehaviourProcessesCultureIndividualattitudesMotivationConvictionsSourcesSourcesHumanResourcesOrganizationlevelGrouplevelIndividuallevelENVIRONMENTSource:Harrison,1978,p.51ENVIRONMENT=influence=feedbackInternal/externalpressure/demandsleadingtochangeStep0EvaluateChangeResultsStep7DetermineChangeStrategiesandImplementationmethodologiesStep6DeterminetheChangeDynamicsStep5StructuretheChangeProcessStep4DesignandDevelopStep3DetermineVisionAndStrategyStep2DrawupdiagnosisStep1ChangeGoalsChangeSituationChangeStrategyChangeEffectivenessOrganizationalExpertiseChangeManagementExpertiseSource:Cozijnsen&Vrakking,1996.GeneralDirectorLHC’’CpmmunistParty’sOmplementationPanelDeputuGeneralDirectorDeputyGeneralDirectorDeputyGeneralDirectorWeavingPlantDueingPlantGarmentPlantKnittingPlantSupportUnits&ServicesAdministrationFinanceDept.Import-ExportDept.MaterialsDept.R&DCentrePlanning&SalesDept.Legend:OfficiallydesignedreportinglineDelegatedtaskstoDGDbytheGD,ButaresubjecttofrequentchangesOrganisationChartofLHCDiagnosticInstruments7S-modelOrganizationMatrixmodelManagementEffectivenessAnalysisEtc.…….StructureStaffStyleSkillsSystemsSharedValuesStrategyHardvariablesSoftvariablesThe7-SmodelBox1:GoalsandmethodsCoreactivitiesStrategicplanningMarketingFinancingetc.Box2:InternalStructure(Tasks&authorities)OrganigramTask/projectdescriptionsNeedforinformationProceduresetc.Box3:KnowledgeandskillsFunctionneedsRecruitmentKnow-howSalarysystemetc.Box4:StakeholdersCEO/BoardofdirectorsPressuregroupsCustomersEmployeesFinancieretc.Box5:DecisiontakingInformalstructureParticipationindecisiontakingReviewofresultsConsultationNegotiationsetc.Box6:AutonomyRoomforactionPersonalperspectiveStatusIndividualinterestsetc.Box7:OrganizationalClimateVisionCommitmentElanHousestyleetc.Box8:Co-operationProblemsolvingTeam-playCo-ordinationofideasMeetingstylesetc.Box9:AttitudeCreativityFellowshipTrustDedicationetc.ManagementEffectivenessAnalysisMeasuresbehavior+effectivenessScientificapproachQuestionnaire(111items)21behaviouralsetsSituationdependentStrategic+FeedbackprofilesIndividual+groupanalysesVisionandStrategy?DesigningaChangeProgramGroworaRoll-outmodelTimingNeed&wantSkills(ability)attitude(culture)ChangeCompetenceInfrastructureStrategicComponentOrganizationalSuccessInstitutionalComponentHumanResourcesComponentChangePolicyChangeCapacityLeadingPotentialSpeedWillingnessInfrastructureofChangeCompetenceSource:Cozijnsen&Vrakking,1995CompetingValuesFramework:OrganizationalEffectiveness(Quinnmodel1)FlexibilityExternalInternalControlopensystemsmodelRationalgoalmodelInternalprocessmodelHumanrelationsmodelMeans:cohesion,moraleEnds:humanresourcedevelopmentMeans:planning,goalsettingEnds:productivity,efficiencyMeans:flexibiity,readinessEnds:growth,resourceacquisitionMeans:informationmanagement,communicationEnds:Stability,controlQuinnmodel24conditionsforchangingbehaviourneedwantbeingallowedcanRoll-outchangePreparationPlanningTransitionstructuresImplementation(=rolling-out)RewardGroworProcessChangePreparationPlanningTakefirststepCheckandCorrectTakenextstepEtc.…….TerminateDynamicsofChangePainanddesireLossesandgainsResistanceInvolvementMotivationTypesofLossChangealwaysimplieslosingsomethings.Examplesofthingsthatpeoplemightfeartheycouldloseare:SecurityStatusCompetenceRelationshipsSenseofdirectionTerritorySignsofResistanceIndividualresistance:ComplaintsErrorsAngerDisobeyingandstubbornnessApathyAbsenceduetoillnessWithdrawal.....SignsofResistanceOrganizationalresistance:AccidentsIncreaseinworker’’scompensationclaimsIncreasedabsenteeismGossipSabotageIncreaseinhealthcareclaimsLoweredproductivityPhasesofTransitionFromDangertoOpportunity1.Denial3.Exploration2.Resistance4.CommitmentPhasesinmourningprocessDenialAngerHustleDepressionAcquiescenceAcceptanceReactionstoOrganizationalChange(1)1.Denial“Itwillnotbeserious”“Ithasnothingtodowithus”2. Anger“What’’swrongwithwhatwehavebeendoingthelastfewyears?”“ItIsthistherewardforyearsofhardwork?”3. Hustle“Nowisabadtiming,because……”“Wellifwewerehavingmoremoney……”ReactionstoOrganizationalChange(2)4.Depression“Igiveup,theywillneverlistentome””“Theyarealwaysjustdoingwhattheylike”5. Acquiescence“ActuallyIdon’’treallycareanymore”“Iwilljustletthingshappen””6. Acceptance“Actuallyitalsohassomebenefits””“Wellofcourseitwasunacceptabletokeepthingsastheywere”Howtohandlethesereactions?(1)1.DenialmakepeopleawareConfrontationwithfigures,clients,publicity,etc.Elicitreactions(makepeopleactive)2.AngerListenenbuildrapportShowunderstandingforemotionsLetearlyadaptorstakeinitiative3.HustleBeclearandmakepeopleaccountableCommunicategoalsandvisionNegotiateaboutimplementationproposalsHowtohandlethesereactions?(2)4.Depression(silence)noreturnstatementTakedecisionsandcarrythemoutimmediatelyMakeimplementationirreversible5.AcquiescenceGivesupport“Letusgobacktowork”Supportprocessoflearningandadaptation6.AcceptanceReinforceControl,evaluateandcelebratesuccessesUseteambuilding,makeupnewgoalsDo’sandDon’’ts:(SomegeneralBasicguidelinesforeffectiveChange)HaveagoodreasonformakingthechangeInvolvepeopleinthechangePutarespectedpersoninchargeoftheprocessCreatetransitionmanagementBringinoutsiderhelpProvidetraininginnewvaluesandbehaviorEstablishsymbolsofchangeAcknowledgeandrewardpeopleDo’’sandDon’’tsinPreparationPrepareyouremployeesDescribethechangeascompletelyasyoucanResearchwhathappenedduringthelastchangeAssesstheorganizationalreadinessDon’’tmakeadditionalchangesthataren’’tcritical/necessaryDo’’sandDon’’tsinPlanningMakecontingencyplansAllowfortheimpactonpersonalperformanceandproductivityEncourageemployeeinputAnticipatetheskillsandknowledgethatwillbeneededtomasterthechangeSetatimetableandobjectivessoyoucanmeasuretheprogressTransitionStructuresCreateatransitionmanagementgrouptooverseethechange(projectteam).Developtemporarypoliciesandproceduresduringthechange.Demonstrateflexibilitytotrynewthings.Loosencontrolandprocedures.Createnewcommunicationchannels.Meetfrequentlytomonitortheunforeseentogivefeedback,ortocheckonwhatishappening.Do’’sandDon’’tsinImplementationProvideappropriatetraininginnewskillsandcoachinginnewvaluesandbehaviorsEncourageself-managementGivemorefeedbackthanusualtoinsurepeoplealwaysknowwheretheystandAllowforresistanceGivepeopleachancetostepbackandreflectonwhatisgoingonDo’sandDon’tsinImplementation(continued)EncouragepeopletothinkandactcreativelyLookforany‘opportunity’’createdbythechangeAllowforwithdrawalandreturnofpeoplewhoaretemporarilyresistantCollaborateMonitorthechangeprocessTheConsultantAcademiceducationCommunicateswellCreativethinkerEthicalHasstrong““network”PerseveranceSociallyorientedOther(discuss)RolesoftheconsultantRESOURCE:ConnectionsExpertiseProblemsolving(content)ServicePROCESS:ChangeagentCoachProblemfinder/solver (processes)SocialmethodologySparringpartnerTrainerSkillsoftheConsultantAnalytical&diagnosticCommunicationskills(360