Learning Outcomes
Chapter 18
Managing Change
1.
Identify the major external and internal forces for change in organizations.
2.
Describe how different types of change vary in scope.
3.
Discuss methods organizations can use to manage resistance to change.
4.
Explain Lewin’s organizational change model.
5.
Explain how companies determine the need to conduct an organizational
development intervention.
6.
Discuss the major group-focused techniques for organization development
intervention.
7.
Discuss the major individual-focused techniques for organization
development intervention.
© 2011 Cengage Learning. All rights reserved.
1
Learning Outcome
Identify the major external and
internal forces for change in
organizations.
© 2011 Cengage Learning. All rights reserved.
Organizational Changes
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
© 2011 Cengage Learning. All rights reserved.
External Forces for Change
Globalization
Workforce
Diversity
Changing
Technology
Ethical
Behavior
© 2011 Cengage Learning. All rights reserved.
Globalization
Organizations must rethink the
most efficient ways to:
Use resources
Disseminate/gather information
Develop people
and
Globalization requires changes in
structure and employee mindsets
© 2011 Cengage Learning. All rights reserved.
Workforce
Diversity
Workforce will see:
Increased gender diversity
Increased cultural diversity
Increased age diversity
© 2011 Cengage Learning. All rights reserved.
Technological
Change
Organizations that fail to keep pace can
quickly fall behind.
Innovation promotes associated changes
in work relationships and organizational
structures.
© 2011 Cengage Learning. All rights reserved.
Managing Ethical Behavior
• Organizations must create a
culture that encourages
ethical behavior.
• Society expects
organizations to maintain
ethical behavior internally
and externally.
© 2011 Cengage Learning. All rights reserved.
Internal Forces for Change
Declining
Effectiveness
Crisis
Changes in
expectations
Changes in
work climate
© 2010 Cengage Learning. All rights reserved.
2
Learning Outcome
Describe how different types of
change vary in scope.
© 2011 Cengage Learning. All rights reserved.
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
© 2011 Cengage Learning. All rights reserved.
The Change Agent
• Individual or group that
undertakes the task of
introducing and managing a
change in an organization.
• Internal or external
© 2011 Cengage Learning. All rights reserved.
Internal Change Agents
Advantages
Disadvantages
• know past history,
political system,
and culture
• must live with
results of change
so will move
carefully
• may be associated
with factions,
accused of
favoritism
• may be too close to
the situation to be
objective
© 2011 Cengage Learning. All rights reserved.
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
© 2011 Cengage Learning. All rights reserved.
3
Learning Outcome
Discuss methods organizations can
use to manage resistance to change.
© 2011 Cengage Learning. All rights reserved.
Resistance to Change
•
•
•
•
Fear of the unknown
Fear of loss
Fear of failure
Disruption of interpersonal
relationships
• Personality conflicts
• Politics
• Cultural assumptions and
values
© 2011 Cengage Learning. All rights reserved.
Dealing with
Resistance to Change
• Communication
– details
– rationale
• Participation in the
process
– ownership
– commitment
• Empathy and
support
© 2011 Cengage Learning. All rights reserved.
4
Learning Outcome
Explain Lewin’s organizational
change model.
© 2011 Cengage Learning. All rights reserved.
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
© 2011 Cengage Learning. All rights reserved.
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
Equilibrium
Forces for status quo
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
© 2010 Cengage Learning. All rights reserved.
Applying Lewin’s Model
Unfreezing
Refreezing
Moving
Reducing forces
For status quo
Developing new
attitudes, values,
and behaviors
Reinforcing new
attitudes, values,
and behaviors
• Unfreezing: the organization eliminates rewards for
current behavior
• Moving: the organization initiates new options and
explains their rationale
• Refreezing: organizational culture and formal reward
systems encourage the new behaviors
© 2011 Cengage Learning. All rights reserved.
Beyond the Book:
Testing Your Tolerance for Ambiguity
Read each of the following statements carefully. Then rate each of them in
terms of the extent to which you either agree or disagree with the statement
using the following scale:
Completely
Disagree
1
Completely
Agree
Neither Agree
nor Disagree
2
3
4
5
6
7
1. An expert who doesn’t come up with a definite answer probably doesn’t
know much.
2. I would like to live in a foreign country for a while.
3. The sooner we all acquire similar values and ideals, the better.
4. A good teacher is one who makes you wonder about your way of looking
at things.
5. I like parties where I know most of the people more than ones where all
or most of the people are complete strangers.
© 2011 Cengage Learning. All rights reserved.
Beyond the Book:
Testing Your Tolerance for Ambiguity
6. Teachers or supervisors who hand out vague assignments give a chance for
one to show initiative and originality.
7. A person who leads an even, regular life in which few surprises or
unexpected happenings arise really has a lot to be grateful for.
8. Many of our most important decisions are based upon insufficient
information.
9. There is really no such thing as a problem that can’t be solved.
10. People who fit their lives to a schedule probably miss most of the joy of
living.
11. A good job is one where what is to be done and how it is to be done are
always clear.
12. It is more fun to tackle a complicated problem than to solve a simple one.
13. In the long run, it is possible to get more done by tackling small, simple
problems rather than large and complicated ones.
14. Often the most interesting and stimulating people are those who don’t mind
being different and original.
15. What we are used to is always preferable to what is unfamiliar.
© 2011 Cengage Learning. All rights reserved.
Beyond the Book:
Testing Your Tolerance for Ambiguity
Scoring: For even-numbered questions, add the total points.
For odd-numbered questions, use reverse scoring and add
the total points. (1 becomes 7, 2 becomes 6, etc.)
Interpreting Your Results:
A score of 15 would indicate perfect ambiguity tolerance, while perfect
intolerance would yield a score of 105. Typical scores between 20 and
80 are reported, with means of 45. Tested private-sector managers
scored 44.6 ± 8.5, while public- and third-sector managers scored
43 ± 20.
© 2011 Cengage Learning. All rights reserved.
5
Learning Outcome
Explain how companies determine
the need to conduct an
organizational development
intervention.
© 2011 Cengage Learning. All rights reserved.
Organizational Development
(OD)
a systematic approach to organizational
improvement that applies to organizational
improvement in order to increase individual
and organizational well-being and
effectiveness
© 2011 Cengage Learning. All rights reserved.
Diagnosis and Needs Analysis
Diagnosis and
needs analysis
Intervention
Follow-up
Questions to 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? © 2011 Cengage Learning. All rights reserved.
6
Learning Outcome
Discuss the major group-focused
techniques for organization
development intervention.
© 2011 Cengage Learning. All rights reserved.
5
•
•
•
•
•
Group-Focused Techniques
Survey feedback
Management by objectives (MBO)
Product and service quality programs
Team building
Process consultation
© 2011 Cengage Learning. All rights reserved.
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
© 2011 Cengage Learning. All rights reserved.
Management by Objectives
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
© 2011 Cengage Learning. All rights reserved.
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
© 2011 Cengage Learning. All rights reserved.
Team Building
An intervention
designed to
improve the
effectiveness of a
work group
Seek feedback
Discuss errors
Reflect on successes and
failures
Experiment with new ways of
performing
Climate of psychological safety
© 2011 Cengage Learning. All rights reserved.
Process Consultation
An OD method that
helps managers and
employers improve
the processes that
are used in
organizations
Outside consultant:
Enters organization
Defines the relationship
Chooses an approach
Gathers data
Diagnoses problem
Intervenes
Leaves organization
© 2011 Cengage Learning. All rights reserved.
7
Learning Outcome
Discuss the major individualfocused techniques for
organization development
intervention.
© 2011 Cengage Learning. All rights reserved.
Individual-Focused Techniques
•
•
•
•
•
•
•
Skills training
Leadership training & development
Executive coaching
Role negotiation
Job redesign
Health promotion programs
Career planning
© 2011 Cengage Learning. All rights reserved.
Skills Training
increasing the job knowledge, skills, and
abilities that are necessary to do a job
effectively
© 2011 Cengage Learning. All rights reserved.
Leadership Training &
Development
A variety of techniques
that are designed to
enhance individual’s
leadership skills
Action learning
Simulation
Business games
Role-playing
Case studies
© 2011 Cengage Learning. All rights reserved.
Executive Coaching
A host of
techniques for
enhancing
managers’ skills in
an organization
Verbal information
Intellectual skills
Attitudes
Development
© 2011 Cengage Learning. All rights reserved.
Role Negotiation
A technique whereby
individuals meet and
clarify their
psychological
contract
•Better understanding of
what each can be
expected to give and
receive
• Less ambiguity
© 2011 Cengage Learning. All rights reserved.
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
© 2011 Cengage Learning. All rights reserved.
Health and Career
Health
Promotion
Programs
Ex. Stress reduction
education, employee
assistance
Career Planning
Match individual’s career
aspirations with
organizational opportunities
© 2011 Cengage Learning. All rights reserved.
Beyond the Book:
When The Perks Are Gone
Because of the global recession, many organizations are removing organizational
perks and benefits in order to save money.
No more free lunches, no co-pay health insurance, subsidized child care, etc.
In light of these changes, what can be done to make sure employees stay content
and motivated?
• Remember that perks are not essential to the job; i.e., lose the sense of entitlement
• Be fair in cutbacks.
• Continue gathering with co-workers, even at your own expense.
• You are part of the solution – ask yourself “What does my work offer that I can be
happy about?”
© 2011 Cengage Learning. All rights reserved.
1. Who is the target of
change in this scene?
Field of Dreams
2. What are the forces for
change? Are the forces
for change internal or
external to the change
target?
3. Does the scene show the
role of leadership in
organizational change? If
it does, who is the
leader?
© 2011 Cengage Learning. All rights reserved.