Chapter 18
Managing Change
Nelson & Quick
Organizational Change
Planned
change -
Unplanned
change -
change
resulting from
a deliberate
decision
to alter the
organization
change that
is imposed
on the
organization
and is often
unforeseen
The Organization
Managers must be prepared to handle both
External Forces for Change
Globalization
Changing
Technology
Workforce
Diversity
Ethical
Behavior
Globalization
Organizations must rethink
the most efficient ways to
Use resources
Disseminate/gather information
Develop people
Structural &Mental
Change
Change
Majority of
new workers
will be female
Workforce will
grow in diversity more Hispanics &
African-Americans
Workforce is aging less young workers, more
middle-aged
Workforce Diversity
Ethical Behavior
Other Organizations
Ethical
Treatment
Customers
Environment
Changes
in work
relationships
Society
Technological
Change
Changes in
organizational
structure
Changing Technology
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
•
•
•
•
•
•
•
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
Follow-up
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
Team Building - an
intervention designed to
improve the effectiveness of
a work group
Raise aspirations about
product/service quality
Embed product/service
quality excellence in the
organizational culture
Communication
Member interaction
Emphasis on team
goals
Examples of effective/
ineffective teamwork
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
Process Consultation - an OD
method that helps managers
and employers improve the
processes that are used in
organizations
Outside consultant
determines participants
Participants=critical mass
supporting change
Outside consultant:
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
Sensitivity Training - an
intervention designed to
help individuals understand how their behavior
affects others
In formal classroom
settings
On the job
(Continual updating)
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
Role Negotiation - a
technique whereby
individuals meet and
clarify their psychological
contract
Verbal information
Intellectual skills
Attitudes
Development
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
Health Promotion
Programs
Ex. Stress reduction
education, assistance
Career Planning
Match individual’s career
aspirations with
organizational opportunities
Ethical Considerations in
Organizational Development
•
•
•
•
Selection of the OD method
Voluntary participation
Confidentiality
Potential for Manipulation by the
change agent