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Ensuring Successful Organizational Change Ronald L. Jacobs, Ph.D. The Ohio State University 7 June 2008.

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Presentation on theme: "Ensuring Successful Organizational Change Ronald L. Jacobs, Ph.D. The Ohio State University 7 June 2008."— Presentation transcript:

1 Ensuring Successful Organizational Change Ronald L. Jacobs, Ph.D. The Ohio State University 7 June 2008

2 ) Where is Columbus, Ohio?

3 Enrollments, Largest U.S. Universities (Autumn 2007) The Ohio State University52,568 Arizona State University, Main Campus51,481 University of Minnesota, Twin Cities50,833 University of Florida50,576 University of Texas, Austin50,201 Texas A&M University, College Station46,542 Michigan State University46,045 Penn State University43,232 University of Wisconsin, Madison42,041 University of Illinois, Urbana41,135

4 T he WDE graduate program seeks to prepare advanced practitioners, leaders, and scholars to address the following societal issues: Prepare to enter or re-enter the workforce, Undertake formal, informal, and non-formal learning opportunities to improve workforce performance, Adapt to changes that affect workforce competitiveness, and Undergo life transitions related to workforce participation.

5 Definition... Human Resource Development is the process of improving organizational performance and workplace learning through employee development, organization development, and career development programs. Ronald L. Jacobs (2008)

6 Employee Development – training and educational programs that provide the competencies to meet current and future work expectations. Organization Development – human and structural processes to facilitate change among individuals, groups, and organizations. Career Development – educational and experiential programs to match the needs of organizations and the needs and interests of individuals. HRD Components

7 HRD Process Strategic Planning Needs Assessment Performance Analysis Work Analysis ED Programs OD Programs CD Programs Assess/Analyze Design/Implement Evaluate/Improve Results Behavior Perceptions Project Management

8 Future State Of the Organization Current State Of the Organization Organizational Change

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11 Most case study reports tend to describe the situation during the initial success period and before the eventual decline and collapse of the program (Mirvis and Berg, 1977). Goodman and Dean (1983) examined the persistence of change in selected organizations in which change programs had been successfully introduced and where positive benefits had initially been identified. Four to five years later, only one third of the projects remained to any discernible degree, while the others were in decline or non-existent.

12 Jacobs and Hruby-Moore (1998) reported a failed cost-benefit analysis study. The study showed a negative cost-benefit ratio at the conclusion of the intervention. A. T. Kearney (1999) reported that managers in 294 European medium-sized companies reported that only one in five change efforts were viewed as being successful. The remaining efforts made some initial improvements, but had failed to sustain them, or made no demonstrable improvements whatsoever. Two-thirds of reengineering efforts in Britain failed and that less than half of the TQM programs showed any demonstrable results at all.

13 Estimates from lean manufacturing consultants state that 80 percent of projects fail, requiring companies to determine whether to begin again or continue using a traditional manufacturing approach. The truth about organizational change – most planned change efforts are not successful.

14 Institutionalizing Organizational Change... Having the change become a part of the on-going everyday activities of the organization.

15 Institutionalizing Change Framework Organization Characteristics Are the organizations goals, management, and design aligned? Are leaders committed to the change? Is the organization ready for change? Institutionalization Outcomes Work behaviors Job outcomes Process outcomes Organization norms, values, culture Institutionalization Processes Develop the competence to meet new expectations Ensure self-efficacy to carry out the expectations Build commitment in terms of words and action Connect new processes with existing processes Change Characteristics Do the change goals identify the desired state? Has a change management process been identified? Are resources available to implement the change? Cross-Cultural Effects Jacobs (2001) adapted from Cummins and Worley (2004)

16 HRD Challenge Effective HRD practice must consider Effective HRD practice must consider institutionalization processes when assisting organizations during times of change. institutionalization processes when assisting organizations during times of change. Unfreezing Moving Refreezing HRD programs Institutionalization processes

17 Training appears to be a major way for organizations to institutionalize change.Training appears to be a major way for organizations to institutionalize change. Organizations are using a wide range of training methods to institutionalize change, but the most frequent and most effective is reported to be OJT.Organizations are using a wide range of training methods to institutionalize change, but the most frequent and most effective is reported to be OJT. Organizations should review existing strategies and explore the ways to make HRD strategies more integrated with other organizational functions to ensure better success in institutionalizing change.Organizations should review existing strategies and explore the ways to make HRD strategies more integrated with other organizational functions to ensure better success in institutionalizing change. The first empirical research on institutionalizing organizational change. Findings will hopefully trigger more research interest on this topic in future.The first empirical research on institutionalizing organizational change. Findings will hopefully trigger more research interest on this topic in future. Jacobs, R., & Osman-Gani, A. (2005). Institutionalization of organizational change: An exploratory study of HRD interventions used by Singaporean, US, Japanese, and German companies. Human Resource Development International.

18 A significant relationship was found between transfer self- efficacy and goal commitment. A significant relationship was found among aspects of the learning transfer climate and goal commitment. A significant relationship was also found between learning transfer climate and transfer self-efficacy. Washington, C. (2002). The relationships among learning transfer climate, transfer self-efficacy, goal commitment, and sales performance in an organization undergoing planned change. Dissertation: The Ohio State University.

19 Cascade Training Cascade training is the process of providing the competence necessary to ensure the institutionalization of organizational change.Cascade training is the process of providing the competence necessary to ensure the institutionalization of organizational change. Information flows from one group to another until it reaches the final destination, similar to that of a waterfall.Information flows from one group to another until it reaches the final destination, similar to that of a waterfall.

20 1.Hierarchical 2.Process 3.Role 4.Project Based on the competence needs of each employee level.Based on the competence needs of each employee level. Coordinated such that the training outcomes of one group are reconciled with other groups.Coordinated such that the training outcomes of one group are reconciled with other groups. Uses an array of training approaches, both on the job and off the job.Uses an array of training approaches, both on the job and off the job.

21 Hierarchical – The training follows the vertical structure of the organization. Ensures that everyone organization-wide understands the change and the three competence keys: 1. Keep doing this. 2. Stop doing that. 3. Start doing this.

22 Process – The training follows the chain of supplier-customer relationships through the organization. Ensures that cross-functional groups connected through work processes understand the change and acquire the competence to respond accordingly. CBAD

23 Role – The training follows peer relationships across the organization. Ensures that individuals understand changes in expectations and acquire the competencies from a credible source.

24 Project – The training follows groups, internal and external, engaged in achieving a common goal. Ensures that the various stakeholders understand the change and its consequences.

25 Institutionalization Processes Develop the competence to meet new expectations Ensure self-efficacy to carry out the expectations Build commitment in terms of words and action Connect new processes with existing processes

26 Ronald L. Jacobs, Ph.D. Professor, Workforce Development and Education Director, UNEVOC – U.S., Center on Education and Training for Employement


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