Transcript Chapter 12 Nelson & Quick

Chapter 16
Nelson & Quick
Managing Change
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.
Organizational Change
Planned Change change resulting
from a deliberate
decision to alter the
organization
Unplanned Change change that is imposed
on the organization
and is often
unforeseen
Managers must be
prepared to handle both
External Forces for Change
Globalization
Workforce
Diversity
Changing
Technology
Ethical
Behavior
Globalization
Organizations must rethink
the most efficient ways to
Majority of
Use resources
new workers
Disseminate/gather information
will be female
Develop people
Workforce will
grow in diversity Structural
more Hispanics &
Change
African Americans
&
Workforce is aging Mental
less young workers, more
Change
middle-aged
Workforce
Diversity
Ethical
Behavior
Other Organizations
Customers
Ethical
Treatment
Environment
Society
Technological
Change
Changing
Technology
Changes
in work
relationships
Changes in
organizational
structure
Internal Forces for Change
Declining
Effectiveness
Changing
Work Climate
Company
Crisis
Changing
Employee
Expectations
Scope of Change
Incremental Change - change of a relatively small
scope, such as making small improvements
Strategic Change - change of a larger scale, such as
organizational restructuring
Transformational Change - change in which the
organization moves to a radically different, and
sometimes unknown, future state
The Change Agent’s Role
Change Agent - the individual or group who
undertakes the task of introducing and managing a
change in an organization
The change agent can be internal or external
Internal Change Agents
Advantages
 know past history,
political system, and
culture
 must live with
results of change so
will move carefully
Disadvantages
 may be associated
with factions,
accused of favoritism
 may be too close to
the situation to be
objective
External Change Agents
Advantages
 outsider’s
objective view
 impartiality
Disadvantages
 limited knowledge of
organization’s history
 may be viewed with
suspicion
To succeed, they must be perceived as trustworthy,
be experts with proven track records, be similar to
those they are working with
Resistance to Change
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Fear of the unknown
Fear of loss
Fear of failure
Disruption of interpersonal relationships
Personality conflicts
Politics
Cultural assumptions and values
Dealing with
Resistance to Change
 Communication
 details
 rationale
 Participation in the process
 ownership
 commitment
 Empathy and support
Reactions to Change & Managerial Interventions
Reaction
Expression
Disengagement
psychological withdrawal
from change
Disidentification
feeling that one’s
identity is being
threatened by change
Disenchantment
feeling negativity or
anger toward a change
Disorientation
feelings of loss and
confusion due to change
Withdrawal
Managerial
Intervention
Confront, identify
Sadness, worry Explore, transfer
Anger
Neutralize,
acknowledge
Confusion
Explain, plan
Table adapted from H. Woodward and S. Buchholz. Aftershock: Helping People through corporate Change, p. 15.
Copyright © 1987 John Wiley & Sons, Inc. Reprinted by Permission of John Wiley & Sons, Inc.
Lewin’s Three Step Change
Model
1. Unfreezing - involves encouraging individuals to
discard old behaviors by shaking up the
equilibrium state that maintains the status quo
2. Moving - new attitudes, values, and behaviors are
substituted for old ones
3. Refreezing - involves the establishment of new
attitudes, values, and behaviors as the new status
quo
Force Field Analysis of Decision to
Engage in Exercise
Forces for change
Weight gain
Minimally passing
treadmill test
Feel lethargic;
have no energy
Family history of
cardiovascular
disease
New, physically
demanding job
Forces for status quo
Equilibrium
Lack of time
No exercise facility at
work
Spouse/partner hates to
exercise
No interest in physical
activity or sports
Made a grade of D in
physical education class
Applying Lewin’s Model to the
Organization
 Unfreezing: the organization eliminates rewards for
current behavior
 Moving: the organization initiates new options and
explains their rationale
 Refreezing: organizational culture & formal reward
systems encourage the new behaviors
Organizational Development (OD)
Organizational Development (OD) - a systematic
approach to organizational improvement that
applies behavioral science theory and research in
order to increase individual and organizational wellbeing and effectiveness
Diagnosis & Needs Analysis
Diagnosis and
needs analysis
Intervention
Follow-up
Ask
• What are the forces for change?
• What are the forces preserving the status quo?
• What are the most likely sources of resistance?
• What are the goals to be accomplished by change?
OD Intervention Methods:
Organizational/Group Techniques
Survey Feedback - a widely
used method of intervention
whereby employee attitudes
are solicited by
questionnaire
Anonymous
Group reporting format
No repercussions
Clear purpose
Follow up
OD Intervention Methods:
Organizational/Group Techniques
Management by Objective an organization-wide
intervention technique of
joint goal setting between
employees and managers
Initial objectives
Periodic progress reviews
Problem solving to
remove obstacles to
goal achievement
OD Intervention Methods:
Organizational/Group Techniques
Quality Program - a program
that embeds product and
service quality excellence
into the organizational
culture
Raise aspirations about
product/service quality
Embed product/service
quality excellence in the
organizational culture
OD Intervention Methods:
Organizational/Group Techniques
Team Building - an
intervention designed to
improve the effectiveness of
a work group
Seek feedback
Discuss errors
Reflect on successes & failures
Experiment with new ways of
performing
Climate of psychological safety
OD Intervention Methods:
Organizational/Group Techniques
Large Group Interventions events that bring all of the
key members of a group
together in one room for an
extended period of time
Outside consultants determine
participants & goals
Participants = critical mass
supporting change
OD Intervention Methods:
Organizational/Group Techniques
Process Consultation - an OD
method that helps managers
and employers improve the
processes that are used in
Outside consultant:
organizations
Enters organization
Defines the relationship
Chooses an approach
Gathers data
Diagnoses problem
Intervenes
Leaves organization
OD Intervention Methods:
Individual-Focused Techniques
Skills Training - increasing
the job knowledge, skills,
and abilities that are
necessary to do a job
effectively
In formal classroom settings
On the job (Continual updating)
OD Intervention Methods:
Individual-Focused Techniques
Sensitivity Training - an
intervention designed to
help individuals understand how their behavior
affects others
Outside trainer who
intervenes only to move
the group forward.
Training can:
• help employees
understand each other
•recognize their own feelings
•improve communication
OD Intervention Methods:
Individual-Focused Techniques
Management Development
Training - a host of
techniques for enhancing
managers’ skills in an
organization
Verbal information
Intellectual skills
Attitudes
Development
OD Intervention Methods:
Individual-Focused Techniques
Role Negotiation - a
technique whereby
individuals meet and
clarify their psychological
contract
Outcomes:
• Better understanding of
what each can be
expected to give & receive
• Less ambiguity
OD Intervention Methods:
Individual-Focused Techniques
Job Redesign - an OD
intervention method that
alters jobs to improve the
fit between individual
skills and the demands of
the job
Realign task demands and
individual capabilities
Redesign jobs to fit new
techniques or organization
structures
OD Intervention Methods:
Individual-Focused Techniques
Health Promotion
Programs
Ex. Stress reduction education,
employee assistance
Career Planning
Match individual’s career
aspirations with organizational
opportunities
Ethical Considerations in
Organizational Development
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Selection of the OD method
Voluntary participation
Confidentiality
Potential for manipulation by the change agent