Thursday, 22 December 2011

10: Managing Change through Manager and Organization Development

Manager Development, Managerial Training and Organization Development

Manager Development refers to long-term, future-oriented programs and the progress a person makes in learning how to manage. Managerial Training, on the other hand, pertains to the programs that facilitate the learning process and is mostly a sort-term activity to help people do their jobs better.Organization Development (OD) is a systematic, integrated, and planned approach to improving the effectiveness of groups of people and of the whole organization or major organizational unit.

Manager Development Process and Training

Before the specific training and development programs are chosen, three kinds of needs must be considered. One Objectives of the enterprise, second the availability of managers, and the third turnover rates.
1. Present Job:
1.1. Compare “Actual Performance” Vs. “Required Performance”
1.2. Identify the Gap, needs identified by performance review
Manager Development and training must be based on needs analysis derived from a comparison of actual performance and behavior with required performance and behavior.
Required Sales: 1,000 Units
Actual Sales: 800 Units
Gap: 200 Units
Gap is due to:
1. Poor Forecast: Training needs for forecasting
2. Conflicts among managers: Course in conflict resolution
2. Next Job:
2.1. Compare “Present competency” Vs. “Required competency”
2.2. Identify the Gap, needs identified by potential review
3. Derived Individual Training Needs from Present and Next Job
4. Integrate Individual Training Needs into Enterprise Training Plan
5. The Future:
5.1. Identify the new competency required by changed technology and methods e.g. e-business or m-business
5.2. Additional needs identified by top management may be included in internal or external training
6. Enterprise Training Plan as a part of Organizational Development (OD) may evolve from Individual Training Needs and Future Competency. This may have “On-the-job training”or “internal and external training”.

Approaches to Manger Development: On-the-job Training

Planned Progression
Planned progression is a technique that gives mangers a clear idea of their path of development. Managers know where they stand and where they are going.

Job Rotation
The purpose of the Job Rotation is to broaden the knowledge of managers or potential managers. Trainees learn about the different enterprise functions by rotating into different positions. The idea of job rotation is good, but there are difficulties. As the term indicates, in some job rotation programs participants do not actually have managerial authority. Despite these drawbacks, if the inherent difficulties are understood by both the managers and the trainees, job rotation has positive aspects and should benefit the trainees.

Creation of “Assistant-to” Positions
“Assistant-to” positions are frequently created to broaden the viewpoints of trainees by allowing them to work closely with experienced managers who can give special attention to the development needs of the trainees.

Temporary Promotions
Individuals are frequently appointed as “acting” managers when, for example, the permanent manager is on vacation, is ill, or is making an extended business trip or even when a position is vacant.

Committees and Junior Boards
Committees and Junior Boards, also known as multiple management, are sometimes used as developmental techniques. These give trainees the opportunity to interact with experienced managers.

On-the-job training is a never-ending process. To be effective, coaching, which is the responsibilities of every line manager, must be done in a climate of confidence and trust between the superior and the trainees. Patience and wisdom are required of superiors. Coaching requires time, but if done well, it will save time and money and will prevent costly mistakes by subordinates.

Approaches to Manger Development: Internal and External Training

Conference Program
Conference programs may be used in internal or external training. During conference programs, managers or potential managers are exposed to the ideas of speakers who are experts in their field. Within the company, people may be instructed in the history of the firm and its purpose, policies, and relationships with customers, consumers and other groups. External conferences may vary greatly, ranging from programs on specific managerial techniques to programs on broad topics, such as relationship between business and society. A careful selection of topics and speakers will increase the effectiveness of this training device. Conference can be made more successful by including discussions, two-way communication.

University Management Programs
Besides offering undergraduate and graduate degrees in business administration, many universities now conduct courses, workshop, conferences, institutes and formal programs for training the managers.

Reading, Television, Video Instructions and Online Education
Another approach to development is planned reading of relevant and current management literature. This is essentially self-development.

Business Simulation and Experiential Exercises 
Business games and experiential exercises have been used for some time.

Another approach is to create a virtual classroom with the teacher interacting with students. E-learning has been successfully used in knowledge-intensive companies.

Special Training Programs
Many firms have made special efforts to train these people so that they may utilize their full potential while contributing to the aims of enterprise.

Evaluation and Relevance of Training Programs
Determining the effectiveness of training program is difficult. It is extremely important that the criteria used in the classroom situation resemble as closely as possible as the criteria relevant in the working environment.

Managing Change

Change That Affect Manager and Organization Development
1. The increasing use of computer requires to become computer-literate
2. Special educational needs of adults.
3. Proportion of Knowledge workers
4. Shift from manufacturing to service industries
5. Internationalization will continue, and so managers in different countries must learn to communicate and to adapt to each other.

Techniques for Initiating Change
Organization may be in a state of equilibrium, with forces pushing for change on the one hand and forces resisting change by attempting to maintain the status quo on the other. Kurt Lewin expressed “Filed Force Theory”, which suggests that an equilibrium is maintained by driving forces and restraining forces. In initiating change, the tendency is to increase the driving forces. This may indeed produce some movement, but it usually also increases resistance by strengthening the restraining forces. Another approach, one that is usually more effective, is to reduce or eliminate the restraining forces and then move to a new level of equilibrium. Therefore, in organization, change in policy is less resisted when those affected by it participate in the change.
The change process involves three steps, unfreezing, moving or changing and refreezing. The first stage, unfreezing, creates motivation for change. If people feel uncomfortable with the present situation, they may see the need for change. The second stage is the change itself. This change may occur through assimilation of new information, exposure to new concepts. The third stage, refreezing, stabilizes the change. Change to be effective, has to be congruent with a person’s self concept and values. If the change is incongruent with the attitudes and behaviors of others in the organziation, chances are that the person will revert back to the old behavior.

Resistance to Change
Reasons for Resistance to Change are,
1. What is not known causes fear and induces resistance.
2. Not knowing the reason for the change also causes resistance.
3. Change may also result in a reduction of benefits or loss or power.
Reduction of resistance can be achieved in many different ways. The involvement of organizational members in planning the change can reduce uncertainty.

Organizational Conflict

Conflict is a part of the organizational life and may occur within the individual, between individuals, between the individual and the group and between groups. Conflicts can be beneficial because it may cause an issue to be presented in different perspectives.

Source of Conflict 
Example of conflict, a production manager may take the position that streamlining the product line and concentrating on a few products can make the organization more productive, while a sales manager may desire a broad product line that will satisfy diverse customer demands. An engineer may want to design the best product regardless of cost or market demand considerations. A superior’s autocratic leadership style may cause conflicts. Lack of communication may also cause conflict.

Managing Conflicts
Conflicts can be managed by different ways, some focusing on interpersonal relationships and other on structural changes.
Interpersonal Conflicts: Avoiding the situation that causes conflict. Smoothing, emphasizing the areas of agreement and common goals and de-emphasizing disagreement. Forcing one’s views on others. Compromising in part with the other person’s view or demand. Change the behavior of individuals, difficult task indeed. Person higher up in the organization who as sufficient authority to decide an issue.
Structural Changes: This means modifying and integrating the objectives of group with different viewpoints. Clarify authority-responsibility relationship.

Organization Development

Organizational Development (OD) is a systematic, integrated and planned approach to improving enterprise effectiveness. It is designed to solve problems that decrease operating efficiency at all levels. Such problem may include lack of cooperation, excessive decentralization and poor communication.

The Organizational Development Process
1. Problem Recognition: Conflicts among organizational units, low morale, customer complaints, and increasing costs
2. Organization Diagnosis: Collect the information from several organizational units, using questionnaires, interviews and observations. Data are analyzed and prepared for feedback.
3. Feedback: Feedback can be, “Relations between departments”, “Enterprise Goals” and “Customer Relations”
4. Development of Changed Strategy: Rank the problems in order of their importance. Identify the underlying causes, and explore the possible solutions.
5. Interventions: This may include a change in the organization structure, a more effective procedure and handling customer complaints, and the establishment of a team charged with responsibilities of implementing a cost reduction program.
6. Measurement and Evaluations: Members need to meet regularly to measure and evaluate the effectiveness of the OD efforts.

The Learning Organization

A learning organization is one that can adapt to changes in the external environment through a continuous renewal of its structure and practices. Concepts such as sharing the vision of the enterprise, self-examining the prevailing assumptions and practices, considering radically new organization structures, creating learning teams and establishing linkages with parties outside the enterprise for generating new ideas and perspectives. A learning organization is an organization skilled at creating, acquiring and transferring knowledge and modifying its behavior to reflect new knowledge and insights. Organizations engage in systematic problem solving, experimenting and continuously searching for a new knowledge. There must also be tolerance of failure. Learning from other organizations is often achieved through benchmarking which requires the search for the best practices not only within the industry, but also in other industries. A comprehensive learning audit may include a variety of measurements.

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