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Chapter Objectives
 Identify and describe four types of organizational
change according to the Nadler-Tushman model.
 Explain how people tend to respond differently to
changes they like and those they dislike.
 List at least six reasons why employees resist change
and discuss what management can do about resistance
to change.
 Describe how the unfreezing-change-refreezing
metaphor applies to organization development (OD).
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Chapter Objectives (cont’d)
 Describe tempered radicals and identify the 5Ps in the
checklist for grassroots change agents.
 Contrast competitive and cooperative conflict styles.
 Identify and describe five conflict resolution
techniques.
 Identify and describe the elements of effective
negotiation and explain the advantage of added value
negotiating (AVN).
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Change: Organizational &
Individual Perspectives
 Types of Organizational Change
 Anticipatory changes: Planned changes based on
expected situations
 Reactive changes: Changes made in response to
unexpected situations
 Incremental changes: Subsystem adjustments required
to keep the organization on course
 Strategic changes: Altering the overall shape or
direction of the organization
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Figure 15.1: Four Types
of Organizational Change
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Organizational & Individual Perspectives
 Tuning
 The most common, least intense, and least risky type
of change
 Also known as preventive maintenance and kaizen
(continuous improvement)
 Key is to actively anticipate and avoid problems rather
than waiting for something to go wrong
 Adaptation
 Incremental changes that are in reaction to external
problems, events, or pressures
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Organizational & Individual Perspectives
 Reorientation
 Change that is anticipatory and strategic in scope and
causes the organization to be significantly redirected
 Also called “frame bending” (Nadler and Tushman)
 Re-Creation
 Intense, risky, and decisive change that reinvents the
organization
 Also called “frame breaking” (Nadler and Tushman)
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Individual Reactions to Change
 Change happens on an individual level, even in the
workplace
 How People Respond to Changes They Like
 Three-stage process



Unrealistic optimism
Reality shock
Constructive direction
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Figure 15.2: How People Tend
to Respond to Changes They Like
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Individual Reactions to Change
(cont’d)
 On-the-Job changes generally are more feared than
welcomed
 How People Respond to Changes They Fear and
Dislike
 Stages





Getting off on the wrong track
Laughing it off
Growing self-doubt
Buying in
Constructive direction
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Figure 15.3: How People Respond
to Changes They Fear and Dislike
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Table 15.1: How to Help Individuals Deal with
Change: A Contingency Approach
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Table 15.1: How to Help Individuals Deal with
Change: A Contingency Approach (cont.)
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Why Do Employees Resist Change?
 Surprise
 Unannounced significant changes threaten employees’
sense of balance in the workplace.
 Inertia
 Employees have a desire to maintain a safe, secure, and
predictable status quo.
 Misunderstanding/Ignorance/Lack of Skills
 Without introductory or remedial training, change
may be perceived negatively.
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Why Do Employees Resist Change?
(cont’d)
 Emotional Side Effects
 Forced acceptance of change can create a sense of
powerlessness, anger, and passive resistance to change.
 Lack of Trust
 Promises of improvement mean nothing if employees
do not trust management.
 Fear of Failure
 Employees are intimidated by change and doubt their
abilities to meet new challenges.
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Why Do Employees Resist Change?
(cont’d)
 Personality Conflicts
 Managers who are disliked by their employees are
poor conduits for change.
 Poor Timing
 Other events can conspire to create resentment
about a particular change.
 Lack of Tact
 Not showing sensitivity to feelings can create
resistance to change.
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Why Do Employees Resist Change?
(cont’d)
 Threat to Job Status/Security
 Employees worry that change threatens their job or
security.
 Breakup of Work Group
 Changes can tear apart established on-the-job social
relationships.
 Passive-Aggressive Organizational Culture
 The more things change, the more they stay the same.
 Competing Commitments
 Change can disrupt employees in their pursuit of other
goals.
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Strategies for Overcoming
Resistance to Change
 Strategies for Overcoming Resistance to Change
 Education and communication
 Participation and involvement
 Facilitation and support
 Negotiation and agreement
 Manipulation and co-optation
 Explicit and implicit coercion
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Table 15.2: Dealing with Resistance to Change
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Making Change Happen
 Two Approaches to Organizational Change
 Organization Development (OD)


A planned change programs intended to help people and
organizations function more effectively
Formal top-down approach
 Grassroots change

Unofficial and informal bottom-up approach
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Objectives of OD
 Deepen sense of organizational purpose.
 Strengthen interpersonal trust.
 Encourage problem solving rather than avoidance.
 Develop a satisfying work experience.
 Supplement formal authority with knowledge and
skill-based authority.
 Increase personal responsibility for planning and
implementing.
 Encourage willingness to change.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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The OD Process
 Unfreezing, Change, Refreezing (Kurt Lewin)
 Unfreezing: Neutralizing resistance by preparing
people for change
 Change: Introduction of the intervention
 Refreezing: Systematically following a change program
for lasting results
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Figure 15.4: A General Model of OD
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Unofficial and Informal
Grassroots Change
 Tempered Radicals
 People who quietly try to change the dominant
organizational culture in line with their convictions
 Guidelines for tempered radicals:
 Think small for big results.
 Be authentic.
 Translate.
 Don’t go it alone.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Figure 15.5:
The 5P Checklist for All Change Agents
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Managing Conflict
 Conflict
 One person’s incompatible behaviors that make
another person’s actions less effective
 Dealing with the Two Faces of Conflict
 Competitive conflict: Parties pursuing directly opposite
(win-lose) goals
 Cooperative conflict: A mutually reinforcing
experience (win-win) that serves the best interests of
both parties
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Figure 15.6: Competitive
Versus Cooperative Conflict
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Managing Conflict
(cont’d)
 Conflict Trigger
 Any factor that increases the chances of conflict
 Conflict Triggers
 Ambiguous or overlapping jurisdictions
 Competition for scarce resources
 Communication breakdowns
 Time pressure
 Unreasonable standards, rules, policies, or procedures
 Personality clashes
 Status differentials
 Unrealized expectations
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Managing Conflict
(cont’d)
 Resolving Conflict
 Doing nothing is usually not a viable option.
 Conflict Resolution Techniques
 Problem solving
 Superordinate goals
 Compromise
 Forcing
 Smoothing
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Negotiating
 Negotiation
 A decision-making process among interdependent
parties with different preferences
 Common Types of Negotiation
 Two-party negotiation (e.g., buyer and seller)
 Third party negotiation (e.g., agents and arbitrators)
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Negotiating
(cont’d)
 Elements of Effective Negotiation
 Adopting a win-win attitude

Understanding that a mutually beneficial agreement
addresses both parties’ interests
 Knowing your BATNA (best alternative to a negotiated
agreement)

Your “bottom line” for accepting or rejecting offers
 Identifying the bargaining zone

Negotiation is useless if both parties involved have no
common ground on which to maneuver during
bargaining.
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Figure 15.7:
The Bargaining Zone for Negotiators
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Negotiating
(cont’d)
 Added Value Negotiating (AVN)
 A practical five-step win-win process involving the
development of multiple deals





Clarify subjective and objective interests; seek common
ground.
Identify options and their marketplace values.
Design alternative deal packages that foster a creative
agreement.
Select a mutually acceptable deal that is feasible for both
parties.
Perfect the deal by strengthening relationships for future
negotiations.
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Summary
 The four types of change are tuning, adaptation, re-
orientation (frame bending), and re-creation (frame
breaking).
 People who like a change tend to go through three stages:
unrealistic optimism, reality shock, and constructive
direction. When someone fears or dislikes a change, a more
complex process involving five stages tends to occur:
getting off on the wrong track, laughing it off, experiencing
growing self-doubt, buying in, and moving in a
constructive direction.
 Employees resist change for many different reasons,
including (but not limited to) surprise, inertia, ignorance,
lack of trust, fear of failure, passive-aggressive behavior,
and competing commitments.
© 2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Summary
(cont’d)
 Organization development (OD) is a systematic approach
to planned organizational change.
 Unofficial and informal grassroots change can be initiated
by tempered radicals, who quietly follow their convictions
when trying to change the dominant organizational
culture.
 Competitive conflict is characterized by a destructive cycle
of opposing goals, mistrust and disbelief, and avoidance of
discussion coupled with a win-lose attitude. In contrast,
cooperative conflict involves a constructive cycle of
cooperative goals, trust and reliance, and discussion
coupled with a win-win attitude.
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Summary
(cont’d)
 Conflict triggers can cause either constructive or
destructive conflict.
 Three basic elements of effective negotiations are a
win-win attitude, a BATNA (best alternative to a
negotiated agreement) to serve as a negotiating
standard, and the calculation of a bargaining zone to
identify overlapping interests.
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Terms to Understand
 Anticipatory changes
 Refreezing
 Reactive changes
 Tempered radicals
 Incremental changes
 Conflict
 Strategic changes
 Conflict trigger
 Organization
 Negotiation
development (OD)
 Unfreezing
 Bargaining zone
 Added value
negotiating
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