Transcript Organizational Change

Organizational Change
Age of Hypercompetition External
forces creating change
• Globalization of Capitalist system
• Technology
• Increasing government regulations social
pressure on businesses (In large part to
deal with those businesses that fail to act
responsibly; and in part sought by industry
to level competition or restrict competition)
• Demographic changes (domestically)
All of this leads to Change
• Rate of change in order to survive is
increasing. Management/leadership is
needed to stimulate needed changes.
Typically Supervisory Responsibility to
facilitate Change
Change Management Becomes
central issue
• Often top down. Examples Workforce
reduction. Offer new product lines.
• Reorganization
• New accounting procedures
• New MIS system.
• New positions.
• Diversity initiative
Your job
• Get your subordinates to comply with
expectations. Takes communication,
leadership, power, individual differences,
motivation, conflict, group demands to be
able to make an effective change. There
is simply nothing harder to do.
19-6
A Systems Model of Change
Figure 19-3
Target Elements of Change
Organizing
Arrangements
Inputs
Outputs
Internal
Internal
 Strengths
Strategy
Goals
People
Factors
 Weaknesses
 Opportunities
McGraw-Hill
 Organizational
level
 Department/
group level
External
 Threats
Social
 Individual level
Methods
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Research suggests that
• 15% of all change efforts are totally
successful
• ½ to 2/3 are failures. Change efforts had
minimal impact and little persists over a
long period of time.
• In my opinion its why managers get paid
what they get paid.
19-5
Lewin’s Change Model
• Unfreezing
– Creates the motivation to change
– Encourages the replacement of old behaviors and attitudes
with those desired by management
– Entails devising ways to reduce barriers to change
– Creates psychological safety
Changing
Provides new information, new behavioral models, or new ways
of looking at things
Helps employees learn new concepts or points of view
Role models, mentors, experts, benchmarking results, and
training are useful mechanisms to facilitate change
Refreezing
Helps employees integrate the changed behavior or
attitude into their normal way of doing things
Positive reinforcement is used to reinforce the desired change
Coaching and modeling help reinforce the stability of
change
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Assumptions Underlying Lewin’s
Change Model
19-4
1) The change process involves learning
something new, as well as discontinuing
current attitudes, behaviors, and
organizational practices
2) Change will not occur unless there is
motivation to change
3) People are the hub of all organizational
changes
4) Resistance to change is found even when
the goals are highly desirable
5) Effective change requires reinforcing new
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill
behaviors, attitudes, and
organizational
practices
Why is change so difficult
• Resistance to change. People do not do
as they are told to do. Sometimes for very
good reasons.
19-11
Why People Resist Change in the
Workplace
1)
2)
3)
4)
5)
An individuals’
predisposition toward
change
Surprise and fear of the
unknown
Climate of mistrust
Fear of failure
Loss of status and/or
job security
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
19-12
Why People Resist Change in the
Workplace Cont.
6)
7)
Peer pressure
Disruption of cultural
traditions and/or group
relationships
8) Personality conflicts
9) Lack of tact and/or
poor timing
10) Nonreinforcing reward
systems
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
19-14
Table 19-2
Overcoming Resistance to Change
Approach
Commonly Used
in Situations
Where:
Advantages
Drawbacks
Education +
Communication
There is a lack
of information
or inaccurate
information &
analysis
Once persuaded,
people will often
help with
implementation
of change
Can be very
time
consuming if
lots of people
are involved
Participation +
Involvement
The initiators
do not have
all the
information
they need to
design the
change &
others have
considerable
power to
resist
People who
participate
will be
committed to
the
implementatio
n of change
Can be very
time
consuming if
participators
design an
inappropriate
change
McGraw-Hill
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
19-15
Table 19-2 cont.
Overcoming Resistance to Change
Approach
Facilitation +
Support
Negotiation +
Agreement
McGraw-Hill
Commonly
Used in
Situations
People
Where:are
resisting
because of
adjustment
problems
Someone or
some group
will clearly
lose out in a
change and
where that
group has
considerable
power to
resist
Advantages
Drawbacks
No other
approach works
as well with
adjustment
problems
Can be very
time
consuming,
expensive and
still fail
Sometimes it
is a relatively
easy way to
avoid major
change
Can be too
expensive in
may cases if it
alerts other to
negotiate for
compliance
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
case
• application