Organizational Change Processes in China,Dr. Geert W.J. Heling Maastricht April, 2002,Program (1),Introduction Basics of Change Current trends in China Fundamental issues in Organizational Change Phases in Change Processes: a model of Change Diagnosis: instruments and methods Designing a Change Program Structuring a Change Program,Program (2),Dynamics of Change Interventions Implementation Resistance and how to handle it Role and position of Change agents Case presentations Integration,Basics of Change,What is change? Different ways of conducting change Context of organizational change Responses to Change,Current 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 and more effectively than their competitors have better chances to survive.”,WTO and China,Consequences ?,Advantages Disadvantages Threats Opportunities Time scope PETS-dimensions,Issues in Chinese business,Structure Culture Leadership & Management New versus Old Differences with western style business Development Etc. .,Fundamental Issues in Organizational Change,Types of change Ways of changing Dimensions of Change Programs Responses to Change Core principles,Types of Change,Improvement Innovation Transformation,Two ways of changing,Imposed Change Easy Quick Short term Resistance,Evoked Change Complex Long term Commitment Sustaining,Dimensions of Change Programs,Strategic considerations Technical preferences Economic/Financial Dimension Social (HR) considerations Cultural aspects,Small versus Large Scale,Type of business Size of organization Urgency of problems (need) History of organization Maturity of people Attitude of Top Management,Responses to change,squeezed,Top-management,Middle management,Working floor/ employees,resistant,isolated,Core principles (1)(How to make it work),Use Goal orientation There must be Clarity about: problem situation Goals Criteria for success Organization Planning Control Make a Good diagnosis Seek information Summarize Analyze Feedback,Core principles (2)(How to make it work),Use Systems thinking: always keep the whole system in mind Structures Behavior Culture Use participation for commitment Better decisions Stimulate motivation Identification with organization,Core principles (3)(How to make it work),Give support in order to stimulate self-management Use feedback Training Facilitate communication Give support Delegate authorities for use of resources Manage the Process of Change Analyse process continuously Deal with resistance and conflicts Use flexible planning,Core principles (4)(How to make it work),Communicate intensively Communicate, communicate, communicate Carefully select key-persons who are potential allies Who are opinion leaders Who will show resistance Who can be a leader,Phases of a Change Program,Step 0: determine internal and external pressure/demands for change Step 1: Make up diagnosis Step 3: Determine vision and strategy Step 4: Action Planning: design and develop the Change Program Step 5: Structure the Change Process Step 6: Determine Change dynamics Step 7: Determine Change Strategies and Methods Step 8: Implement Step 9: Evaluate and Adjust/Correct,Goals Culture Structure Technology Behaviour & Processes,Output,Group Performance,Individual Performance,Quality of Working Conditions,Group composition Structure Technology,Individual characteristics,Group Behaviour Processes Culture,Individual attitudes Motivation Convictions,Sources,Sources,Human Resources,Organization level,Group level,Individual level,ENVIRONMENT,Source: Harrison, 1978, p. 51,ENVIRONMENT,= influence,= feedback,Internal/external pressure/demands leading to change,Step 0,Evaluate Change Results,Step 7,Determine Change Strategies and Implementation methodologies,Step 6,Determine the Change Dynamics,Step 5,Structure the Change Process,Step 4,Design and Develop,Step 3,Determine Vision And Strategy,Step 2,Draw up diagnosis,Step 1,Change Goals,Change Situation,Change Strategy,Change Effectiveness,Organizational Expertise,Change Management Expertise,Source: Cozijnsen & Vrakking, 1996.,General Director,LHCCpmmunist Partys Omplementation Panel,Deputu General Director,Deputy General Director,Deputy General Director,Weaving Plant,Dueing Plant,Garment Plant,Knitting Plant,Support Units & Services,Administration,Finance Dept.,Import-Export Dept.,Materials Dept.,R&D Centre,Planning & Sales Dept.,Legend:,Officially designed reporting line,Delegated tasks to DGD by the GD, But are subject to frequent changes,Organisation Chart of LHC,Diagnostic Instruments,7 S - model Organization Matrix model Management Effectiveness Analysis Etc. .,Structure,Staff,Style,Skills,Systems,Shared Values,Strategy,Hard variables,Soft variables,The 7-S model,Box 1: Goals and methods,Core activities Strategic planning Marketing