©MSM2001OrganizationalChangeProcessesinChinaDr.GeertW.J.HelingMaastrichtApril,2002©MSM2002Program(1)1.Introduction2.BasicsofChange3.CurrenttrendsinChina4.FundamentalissuesinOrganizationalChange5.PhasesinChangeProcesses:amodelofChange6.Diagnosis:instrumentsandmethods7.DesigningaChangeProgram8.StructuringaChangeProgram©MSM2002Program(2)9.DynamicsofChange10.Interventions11.Implementation12.Resistanceandhowtohandleit13.RoleandpositionofChangeagents14.Casepresentations15.Integration©MSM2002BasicsofChangeWhatischange?DifferentwaysofconductingchangeContextoforganizationalchangeResponsestoChange©MSM2002CurrenttrendsinChinaPoliticalshifttowardsmoreMarketorientationBoostingproductionandeconomyOpeninguptointernationalmarketEntrancetoWTOFrominwardtooutwardorientationNewidentityinglobalpolitics©MSM2002“Organizationsthatareabletoconductchangesfasterandmoreeffectivelythantheircompetitorshavebetterchancestosurvive.”©MSM2002WTOandChina©MSM2002Consequences?AdvantagesDisadvantagesThreatsOpportunitiesTimescopePETS-dimensions©MSM2002IssuesinChinesebusinessStructureCultureLeadership&ManagementNewversusOldDifferenceswith‘western’stylebusinessDevelopmentEtc.….©MSM2002FundamentalIssuesinOrganizationalChangeTypesofchangeWaysofchangingDimensionsofChangeProgramsResponsestoChangeCoreprinciples©MSM2002TypesofChangeImprovementInnovationTransformation©MSM2002TwowaysofchangingImposedChangeEasyQuickShorttermResistanceEvokedChangeComplexLongtermCommitmentSustaining©MSM2002DimensionsofChangeProgramsStrategicconsiderationsTechnicalpreferencesEconomic/FinancialDimensionSocial(HR)considerationsCulturalaspects©MSM2002SmallversusLargeScaleTypeofbusinessSizeoforganizationUrgencyofproblems(need)HistoryoforganizationMaturityofpeopleAttitudeofTopManagement©MSM2002ResponsestochangesqueezedTop-managementMiddlemanagementWorkingfloor/employeesresistantisolated©MSM2002Coreprinciples(1)(Howtomakeitwork)1.UseGoalorientationTheremustbeClarityabout:problemsituationGoalsCriteriaforsuccessOrganizationPlanningControl2.MakeaGooddiagnosisSeekinformationSummarizeAnalyzeFeedback©MSM2002Coreprinciples(2)(Howtomakeitwork)3.UseSystemsthinking:alwayskeepthewholesysteminmindStructuresBehaviorCulture4.UseparticipationforcommitmentBetterdecisionsStimulatemotivationIdentificationwithorganization©MSM2002Coreprinciples(3)(Howtomakeitwork)5.Givesupportinordertostimulateself-managementUsefeedbackTrainingFacilitatecommunicationGivesupportDelegateauthoritiesforuseofresources6.ManagetheProcessofChangeAnalyseprocesscontinuouslyDealwithresistanceandconflictsUseflexibleplanning©MSM2002Coreprinciples(4)(Howtomakeitwork)7.CommunicateintensivelyCommunicate,communicate,communicate8.Carefullyselectkey-personswhoarepotentialalliesWhoareopinionleadersWhowillshowresistanceWhocanbealeader©MSM2002PhasesofaChangeProgramStep0:determineinternalandexternalpressure/demandsforchangeStep1:MakeupdiagnosisStep3:DeterminevisionandstrategyStep4:ActionPlanning:designanddeveloptheChangeProgramStep5:StructuretheChangeProcessStep6:DetermineChangedynamicsStep7:DetermineChangeStrategiesandMethodsStep8:ImplementStep9:EvaluateandAdjust/Correct©MSM2002GoalsCultureStructureTechnologyBehaviour&ProcessesOutputGroupPerformanceIndividualPerformanceQualityofWorkingConditionsGroupcompositionStructureTechnologyIndividualcharacteristicsGroupBehaviourProcessesCultureIndividualattitudesMotivationConvictionsSourcesSourcesHumanResourcesOrganizationlevelGrouplevelIndividuallevelENVIRONMENTSource:Harrison,1978,p.51ENVIRONMENT=influence=feedback©MSM2002Internal/externalpressure/demandsleadingtochangeStep0EvaluateChangeResultsStep7DetermineChangeStrategiesandImplementationmethodologiesStep6DeterminetheChangeDynamicsStep5StructuretheChangeProcessStep4DesignandDevelopStep3DetermineVisionAndStrategyStep2DrawupdiagnosisStep1ChangeGoalsChangeSituationChangeStrategyChangeEffectivenessOrganizationalExpertiseChangeManagementExpertiseSource:Cozijnsen&Vrakking,1996.©MSM2002GeneralDirectorLHC’CpmmunistParty’sOmplementationPanelDeputuGeneralDirectorDeputyGeneralDirectorDeputyGeneralDirectorWeavingPlantDueingPlantGarmentPlantKnittingPlantSupportUnits&ServicesAdministrationFinanceDept.Import-ExportDept.MaterialsDept.R&DCentrePlanning&SalesDept.Legend:OfficiallydesignedreportinglineDelegatedtaskstoDGDbytheGD,ButaresubjecttofrequentchangesOrganisationChartofLHC©MSM2002DiagnosticInstruments7S-modelOrganizationMatrixmodelManagementEffectivenessAnalysisEtc.….©MSM2002StrategySystemsStructureStaffStyleSkillsSharedValuesStructureStaffStyleSkillsSystemsSharedValuesStrategyHardvariablesSoftvariablesThe7-Smodel©MSM2002TheOrganizationMatrixPolicyTechnicalCulturalStaff/PersonnelPower/InfluenceOrganiza-tionGoalsandmethodsTasksandauthoritiesKnowledgeandskillsStakeholdersDecisiontakingAutonomyOrganizationalClimateCo-operationAttitude©MSM2002•Box1:GoalsandmethodsCoreactivitiesStrategicplanningMarketingFinancingetc.©MSM2002•Box2:InternalStructure(Tasks&authorities)Organ