C H A P T E R
17
Organisational
change and
development
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
Chapter learning objectives
1.
Identify four forces for change in the business environment.
2.
Describe the elements of Lewin’s force field analysis model.
3.
Outline six reasons why people resist organisational
change.
4.
Discuss six strategies to minimise resistance to change.
5.
Outline the role of change agents.
6.
Define organisation development.
7.
Discuss three things consultants need to determine in a
client relationship.
8.
Explain how appreciative inquiry differs from the more
traditional approach to organisation development.
9.
Discuss four ethical issues in organisation development.
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
2
Organisational change at Centrelink
Centrelink is transforming
several government departments
into a centre of excellence for
customer service through
feedback measures and special
training for employees.
Courtesy of Centrelink
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
3
Some external forces for change
 Easier information transfer
Information
technology
Globalisation
& competition
Demography
 Facilitates global structures
 Requires new competencies
and expectations
 Facilitates telecommuting;
new employment relationships
 More emphasis on knowledge
management
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
4
Some external forces for change
Information
technology
Globalisation
& competition
Demography
 Global competition
 Technology makes it easier to
compete quickly
 Results in restructuring,
outsourcing, mergers
 produces many employment
changes
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
5
Some external forces for change
Information
technology
Globalisation
& competition
 More educated workforce
 want more involvement;
interesting work
 Younger generation
 less intimidated by status
 want a more balanced work life
Demography
 Cultural changes
 more individualism in traditionally
collectivist countries
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
6
Force field analysis
Restraining
forces
Desired
conditions
Restraining
forces
Driving
forces
Restraining
forces
Current
conditions
Driving
forces
Driving
forces
Before
change
During
change
After
change
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
7
Resistance to change at BP Norge
Employees initially resisted selfdirected work teams (SDWTs) at
BP Norge’s North Sea drilling rigs.
‘We already have teams!’
‘SDWTs don’t work on rigs!’
‘This creates more work  we want
higher pay!’
‘I don’t know how to work in teams.’
‘SDWTs will threaten my job as a
supervisor!’
© AP/ Wide World
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
8
Resistance to change
Direct costs
Saving face
Fear of the unknown
Forces for
change
Breaking routines
Incongruent systems
Incongruent team dynamics
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
9
Creating an urgency for change
 Need to motivate employees to change
 Most difficult when organisation is doing well
 Must be real, not contrived
 Customer-driven change
 adverse consequences for firm
 human element energises employees
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
10
Reducing restraining forces at Unilever
Gary Calveley (right) brought in
team coaches to train employees
throughout the process of
changing Unilever’s Elida
Faberge factory into Europe’s
best factory. A theatrical
production helped to
communicate the changes that
Calveley was trying to achieve
through coaching.
© Dean Smith/The Camera Crew
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
11
Minimising resistance to change
Communication
Coercion
Negotiation
Training
Minimising
resistance
to change
Employee
involvement
Stress
management
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
12
Refreezing the desired conditions
Creating organisational systems and team dynamics
to reinforce desired changes
 alter rewards to reinforce new behaviours
 new information systems guide new behaviours
 recalibrate and introduce feedback systems to focus
on new priorities
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
13
Mary Gordon: change agent
Mary Gordon is changing Ignite,
the Auckland-based architect
and interior design firm
(formerly ASA Crone) through
her leadership and a new
strategic vision.
© P. Doyle/Sunday Star-Times
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
14
Strategic vision and change agents
 Strategic vision and change
 need vision of desired future state
 minimises employee fear of the
unknown
 clarifies role perceptions
 Change agents
 possess knowledge and power to
facilitate the change effort
 usually internal change champion
 need to be transformational leaders
© P. Doyle/ Sunday Star-Times
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
15
Conditions for diffusing change
 Successful pilot study
 Favourable publicity
 Top management support
 Labour union involvement
 Diffusion strategy described well
 Pilot program people moved around
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
16
Organisation development defined
A planned system-wide effort, managed from the
top with the assistance of a change agent, which
uses behavioural science knowledge to improve
organisational effectiveness.
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
17
Action research process
Establish
clientconsultant
relations
Diagnose
need for
change
Introduce
change
Evaluate/
stabilise
change
Disengage
consultant’s
services
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
18
Parallel learning structures at Shell
Shell applied a parallel
learning structure to create a
more marketing-oriented
culture. A cross-section of
employees from each country
formed teams to develop
ways to improve sales in their
country.
© John Thoeming
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
19
Parallel learning structures
Parallel learning
structure
Organisation
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
20
What is appreciative inquiry?
 Directs the group’s attention away from its own
problems and focuses participants on the group’s
potential and positive elements
 Reframes relationships around the positive rather
than being problem oriented
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
21
Appreciative inquiry process
Discovery
Dreaming
Designing
Delivering
Discovering
the best of
‘what is’
Forming
ideas about
‘what might
be’
Engaging in
dialogue
about ‘what
should be’
Developing
objectives
about ‘what
will be’
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
22
Organisation development concerns
 Cross-cultural concerns
 linear and open conflict assumptions different
from values in some cultures
 Ethical concerns
 management power
 employee privacy rights
 employee self-esteem
 consultant’s role
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
23
Overview of the next chapter
 Types of psychological contract
 Trends in employability and casual work
 Stages of organisational socialisation
 Holland’s theory of occupational choice
 Lateral and boundaryless career development
 Strategies to assist personal career development
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione
24
C H A P T E R
17
Organisational
change and
development
 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione