16 MANAGING CHANGE CHAPTER SCAN Organizations have to keep pace with the current issues related to quality, technology, diversity, globalization, and ethics. This requires managing change and also managing resistance to change. All organizations face forces for change that are internal and external to the organization There is a host of organization development interventions available to managers. Diagnosis and needs analysis are essential first steps in any change management effort. LEARNING OBJECTIVES After reading this chapter, you should be able to do the following: 1. Identify the major external and internal forces for change in organizations. 2. Define the terms incremental change, strategic change, transformational change, and change agent. 3. Describe the major reasons individuals resist change, and discuss methods organizations can use to manage resistance. 4. Apply force field analysis to a problem. 5. Explain Lewin's organizational change model. 6. Describe the use of organizational diagnosis and needs analysis as a first step in organizational development. 7. Discuss the major organization development interventions. 8. Identify the ethical issues that must be considered in organization development efforts. 280 Chapter 16: Managing Change KEY TERMS The following key terms are introduced in Chapter 16. planned change unplanned change incremental change strategic change transformational change change agent disengagement disidentification disenchantment disorientation unfreezing moving refreezing organization development (OD) survey feedback management by objectives (MBO) quality program team building process consultation skills training sensitivity training management development role negotiation job redesign THE CHAPTER SUMMARIZED I. THINKING AHEAD: Transformation of the American Red Cross Biomedical Services 281 282 Chapter 16: Managing Change II. FORCES FOR CHANGE IN ORGANIZATIONS The forces for change are everywhere in the organization. Tom Peters has said that if an organization does not make drastic changes every three or four years, it will not survive. Adaptiveness, flexibility, and responsiveness are terms used to describe the organizations that will succeed in meeting the competitive challenges that businesses face. Planned change results from deliberate decisions to alter an organization. Unplanned change is imposed on the organization and is often unforeseen. A. External Forces The four themes of this text are the major drivers of change in organizations. Although we anticipate changes, we are still lagging behind in acting on the changes. Two examples of planned change are the European Community and the North American Free Trade Agreement. Regardless of the degree of planning involved in these ventures, there are numerous unplanned circumstances surrounding the events. 1. Globalization Multinational and transnational organizations are heavily involved in global changes. Many of these organizations are pursuing joint ventures with firms from other countries. 2. Workforce Diversity The work force is aging, and there will be tremendous diversity in the workforce in the next century. One avenues for contribution has been made available to the disabled, with the passing of the Americans with Disabilities Act in 1990. This act aids employment for disabled individuals by requiring that employers make "reasonable accommodations" for their entry into the position. 3. Technological Change Many changes will alter the way in which we think about work and the way we interact with others in organizations. Tools like executive support systems have been developed. The value of these tools lies in the ability to share external information, in a concise, useful fashion with all organizational members. Many of the technological changes will require a surrendering of power and control. 4. Managing Ethical Behavior Chapter 16: Managing Change Ethical behavioral practices continue to receive attention from executives and the mass media. It is probably telling that the movie Wall Street was such a flagrant example of misconduct, and was released in the 1980s. The concern about ethical practices is amplified because of the dynamics and complexity involved with international business partnerships. The number of codes of ethics has reached a purported all time high in industry. B. Internal Forces The news carries internal restructuring information about large organizations, almost daily. A recent study has determined that there is an increase in layoff policies in existence in organizations. III. CHANGE IS INEVITABLE A. The Scope of Change Change may take one of three forms. Incremental change is relatively small in scope, and as such, makes small improvements. Strategic change is a larger scale approach that is similar in magnitude to a restructuring effort. Transformational change moves the organization in a radically different, and sometimes, unknown, future state. B. The Change Agent’s Role The change agent's role can be exciting, innovative, and difficult, since these individuals introduce and manage change in an organization. Organizations using change agents external to the organization may have advantages with openness and trust in organizational members. However, internal change agents may have greater access to a breadth and depth of information. IV. THE PROCESS OF CHANGE IN ORGANIZATIONS A. Resistance to Change Individuals often resist change because they feel their freedom is threatened. 1. Fear of the Unknown Uncertainty is the logical extension of change. Most individuals choose uncertainty avoidance in work situations. 2. Fear of Loss 283 284 Chapter 16: Managing Change The most obvious fear of organizational members is being replaced by technology. 3. Fear of Failure Many individuals are comfortable with entry level skills with computers, but realize that the skills are dated within a short time frame. This fear of failure might also be termed fear of keeping up. 4. Disruption of Interpersonal Relationships New technologies often reduce the amount of interpersonal interaction necessary on the job. This can be threatening to some individuals. 5. Personality Conflicts Conflict can occur because of the seemingly insensitive personality of the change agent. 6. Politics There are organizational structural dynamics connected with technology. Many organizations have created new positions related to information computing. 7. Cultural Assumptions and Values Cultures with high uncertainty avoidance may not be as receptive to change. B. Managing Resistance to Change Communication is a key to effectively managing change. Chapter 16: Managing Change C. Behavioral Reactions to Change Disengagement is the psychological withdrawal from change. Disidentification is the feeling that one's identity is being threatened by a change. Disenchantment is a negative feeling or anger toward a change. Disorientation is the feelings of loss and confusion due to a change. Disorientation is evident in many computer training sessions. At least one person asks, "what do I do if this happens?" thereby sidetracking an entire session. Often, the question is obscure and is accompanied by a story of disaster. D. Lewin's Change Model The Lewin change model was a theory long before it was fashionable to apply the model to technology. Behavior is the product of two opposing forces, one force pushes toward preserving the status quo, while the other pushes for change. Before a change can be implemented, the organization requires a necessary step of unfreezing. This involves encouraging individuals to discard old behaviors by shaking up the equilibrium state. The second step in the change process is the moving stage which involves new attitudes, values, and behaviors substituted for old ones. One of the neglected stages of the change model in organizations is the refreezing step. This step is necessary to establish new attitudes, values, and behaviors to become the new status quo. V. ORGANIZATION DEVELOPMENT INTERVENTIONS Organizational development (OD) is the systematic approach to organizational improvement that applies behavioral science theory and research in order to increase individual and organizational well-being and effectiveness. A. Diagnosis and Needs Analysis Organizational development includes diagnosis before any steps are taken for implementation. The diagnosis process can be divided into purpose, structure, reward system, support system, relationships, and leadership. Not all organizations will benefit from OD. The best prospects for success are organizations with organic structures and Theory Y assumptions. 285 286 Chapter 16: Managing Change B. Organization- and Group-Focused Techniques 1. Survey Feedback Survey feedback is a widely used method of intervention whereby employee attitudes are solicited using a questionnaire. One of the major differences between traditional questionnaires and survey feedback is the attempt to share the information with the individuals supplying the responses. 2. Management by Objectives MBO is an organization-wide intervention technique that involves joint goal setting between employees and managers. One of the criticism of MBO is that a great deal of time needs to be invested in the process for it to be successful. 3. Product and Service Quality Programs Quality programs embed product and service excellence into the organizational culture. In many organizations these programs have joined with, or taken the place of more traditional organizational development efforts. 4. Team Building Team building can improve the effectiveness of a work group. OD practitioners use team building as one of the most successful OD techniques in practice. Chrysler Corp. has used team building to reduce conflicts between unionized employees and managers. 5. Large Group Interventions Among the newer techniques for managing change are larger group interventions; these are intended to create a critical mass of people within an organization to support a change. 6. Process Consultation Process consultation is an OD method that helps managers and employees improve the processes that are used in organizations. In most instances an external organization consultant is used. C. Individual-Focused Techniques Chapter 16: Managing Change 1. 287 Skills Training Skills training is the attempt to increase job knowledge, skills, and abilities that are necessary to do a job effectively. The Ford Glass Plant in Tulsa, Oklahoma has hired public school teachers to be on site for classes related to literacy and mathematics. 2. Sensitivity Training Sensitivity training is designed to help individuals understand how their behavior affects others. There are a number of names for sensitivity training: encounter groups, T-groups, training groups, but all seek to change behavior through unstructured group interaction. Sensitivity training attempts to combine individuals and keep them focused on the "here and now," rather than past situations in which all may not be involved. Its focus is on enhancing interpersonal skills. 3. Management Development Training Management development encompasses techniques designed to enhance manager's skills. A number of the programs are fast-track programs. 4. Role Negotiation Role negotiation is a simple technique whereby individuals meet and clarify their psychological contract. 5. Job Redesign Job redesign is an OD intervention method that alters jobs to improve the fit between individual skills and the demands of the job. Students may enjoy an impromptu job redesign for positions like toll booth operators, computer input operators, or traffic directors. They quickly discover that the task is not as easy as it appears. 6. Health Promotion Programs Companies are increasingly recognizing the importance of health promotion programs for reducing their health care costs. Coors has one of the most comprehensive health promotion programs in the country. 7. Career Planning 288 Chapter 16: Managing Change The benefits of career planning to the organization are that the workforce is more confident and assured of their abilities. In addition, areas have been identified that need improvement, in a less threatening manner than the typical performance appraisal. VI. ETHICAL CONSIDERATIONS IN ORGANIZATION DEVELOPMENT OD consultants must be careful not to direct their value system toward the organization. There should not be pressure on individuals to participate, and confidentiality is of the utmost concern. Organizational interventions must not be used to gain information about a problem for control. OD consultant cannot work for both the organizational members and the overriding control group. In order to facilitate change, conflict is encouraged, but must be handled carefully, by trained, concerned professionals. VII. ARE ORGANIZATION DEVELOPMENT EFFORTS EFFECTIVE? It is important to understand that no one OD method will be effective in all cases. Organizations must find the methods that work best for them and for their particular change situation. Research seems to indicate that OD programs can have positive effects on performance if managed properly. VIII. MANAGERIAL IMPLICATIONS: MANAGING CHANGE IX. LOOKING BACK: Technology Keeps the American Red Cross Running Smoothly Chapter 16: Managing Change 289 CHAPTER SUMMARY Organizations face many pressures to change. Some forces are external, including globalization, workforce diversity, technological innovation, and ethics. Other forces are internal, such as declining effectiveness, crises, changing employee expectations, and a changing work climate. Organizations face both planned and unplanned change. Change can be of an incremental, strategic, or transformational nature. The individual who directs the change, known as a change agent, can be internal or external to the organization. Individuals resist change for many reasons, and many of these reasons are rooted in fear. Organizations can help manage resistance by educating workers and openly communicating the change, encouraging worker participation in the change efforts, and providing empathy and support to those who have difficulty dealing with change. Reactions to change may be manifested in behaviors reflecting disengagement, disidentification, disenchantment, and disorientation. Managers can use separate interventions targeted toward each reaction. Force field analysis states that when the forces for change are balanced by the forces restraining change, an equilibrium state exists. For change to occur, the forces for change must increase, or the restraining forces must decrease. Lewin's change model proposes three stages of change: unfreezing, moving, and refreezing. A thorough diagnosis and needs analysis is a critical first step in any organization development (OD) intervention. OD interventions targeted toward organizations and groups include survey feedback, management by objectives, product and service quality programs, team building, and process consultation. OD interventions that focus on individuals include skills training, sensitivity training, management development training, role negotiation, job redesign, stress management programs, and career planning. OD efforts should be managed ethically and should preserve individual freedom of choice and privacy. When properly conducted, organization development can have positive effects on performance. REVIEW QUESTIONS: SUGGESTED ANSWERS 1. What are the major external and internal forces for change in organizations? The four major themes of the text are the four external forces: globalization, work force diversity, technological change, and managing ethical behavior. Internal forces are things like a crisis, declining effectiveness, changes in employee expectations, and changes in the work climate. 2. Contrast incremental, strategic, and transformational change. 290 Chapter 16: Managing Change Incremental change is small in scope resulting in only small improvements, but they tend to be ongoing occurrences. On the other hand, strategic changes are on a large scale like organizational restructuring. A transformational change moves the organization to a radical, and sometimes unknown, future state. 3. What is a change agent? Who plays this role? The term change agent comes from Rosabeth Moss Kanter and refers to individuals or groups who undertake the task of introducing and managing change in organizations. Individuals outside the organization may be consultants and organizational development experts. In contrast, an insider could be the change agent. 4. What are the major reasons individuals resist change? How can organizations deal with resistance? Change is difficult for all participants, even for those that advocate the change. Some change is resisted because of the necessity of surrendering power bases that have been developed over time. Many individuals are fearful they will not be able to fulfill expectations of the new role. 5. Name the four behavioral reactions to change. Describe the behavioral signs of each reaction and identify an organizational strategy for dealing with each reaction. Disengagement is the psychological withdrawal from change and can be seen with withdrawal. Managers should confront the disengaged employee and draw him or her out. Disidentification is typified by behavior that is exhibited with sadness or worry. Encourage these employees to explore their feelings and to transfer their positive feelings into the new situation. Disenchantment behavior is evident in anger. The anger of these employees must be neutralized. Disorientation can be understood when the individual is confused. Managers should explain the change to disoriented individuals in a way that reduces the ambiguity of the situation. 6. Describe force field analysis and its relationship to Lewin's change model. This process categorizes events in terms of forces that pushes for the status quo, versus those that pull for change. For change to take place the pull factors must outweigh the push factors. Lewin's change model parallels the unfreezing aspect to the analysis of push factors, and refreezing to the pull factors of change. Chapter 16: Managing Change 291 7. What is organization development? Why is it undertaken by organizations? Organizational development is the systematic approach to organizational improvement that applies behavioral science theory and research in order to increase individual and organizational well-being and effectiveness. OD is needed for guiding employees through significant change in the organization. 8. Name six areas to be critically examined in any comprehensive organizational diagnosis. The organization's purpose, structure, reward system, support systems, relationships, and leadership. 9. What are the major organization-focused and group-focused OD intervention methods? The major individual-focused methods? Organization focused and group-focused interventions include survey feedback, management by objectives, product and service quality programs, team building, process consultation. Individual focused methods include skills training, sensitivity training, management development training, role negotiation, job redesign, stress management programs, and career planning. 10. Which OD intervention is most effective? No single method of OD is effective in every instance. Often, multiple-method OD approaches are best. DISCUSSION AND COMMUNICATION QUESTIONS: SUGGESTED ANSWERS 1. What are the major external forces for change in today's organizations? Students may include competition as one of the forces along with globalization, technology, ethics, and workplace diversity. 2. What are the advantages of using an external change agent? An internal change agent? External consultants are often viewed without bias and are not suspect as having political loyalties. On the other hand they may not understand the organization and culture as quickly as they might need to. Internal agents are aware of the problems, yet may be viewed as unobjective. 292 Chapter 16: Managing Change 3. Review Challenge 16.1 What can you learn from this Challenge about how individuals' tolerance for ambiguity can lead to resistance? Students own experiences of dealing with change will be instructive here. They might also consider others they have observed dealing with change and make some assumptions about the relationship between those individuals’ tolerance for ambiguity and their resistance to change. 4. Can organizations prevent resistance to change? If so, how? There are many techniques, including the utilization of professionals (OD specialists) to assist in change. Communication is an essential aspect to aid employees to adjust effectively. Research substantiates the need for participation from those that will be involved in the change. Emotional support is also considered critical for acceptance of change. It is probably unrealistic to think that all resistance to change can be prevented. 5. What organization development techniques are the easiest to implement? What techniques are the most difficult to implement? Why? Survey feedback is non-threatening and allows for anonymity. There is little investment on the employees' time. Management by Objectives on the other hand is a high investment technique that requires training in the technique, and is a long process to discover change. Quality programs are certainly in vogue, yet a number of companies have been disappointed at the time involved and the disappointment of the employees as to the slowness of change. 6. Suppose your organization experiences a dramatic increase in turnover. How would you diagnose the underlying problem? Students could mention any of the techniques that have been listed for organizational analysis. A thorough process of gathering information should be emphasized. 7. Downsizing has played a major role in changing U.S. organizations. Analyze the internal and external forces for change regarding downsizing an organization. Students may tend to focus on the external forces that lead to downsizing. Be sure students are aware that internal factors may also serve as forces for downsizing. 8. If you were in charge of designing the ideal management development program, what topics would you include? Why? Students may select trendy topics rather than topics that are based in theories. Be sure students provide justification for their responses. Chapter 16: Managing Change 293 9. Find an article that describes an organization that has gone through change and managed it well. Develop an “Organizational Reality” feature of your own about the example you find using the format in this book. Prepare a brief oral presentation of your Organizational Reality for your class. Following the class presentations, discuss the similarities and differences that exist in how the companies managed change. Students should consider why different approaches to change were effective and identify any commonalties that they see in managing change effectively. 10. Think of a change you would like to make in your life. Using Figure 16.1 as a guide, prepare your own force field analysis for that change. How will you overcome the forces for the status quo? How will you make sure to “refreeze” following the change? Summarize your analysis in an action plan. Students should be very specific in the action plan. You may also want students to consider a plan for evaluating their effectiveness at implementing the change. ETHICS QUESTIONS: SUGGESTED ANSWERS 1. What constitutes abuse of a change agent's power? How can organizations prevent this? Unlike some professions, OD specialists do not have to pass an exam to qualify for practice, although reputations are critical. If a change agent attempts to implement their values or perspective into the process, they are manipulating the process. Violating confidentiality is also an abuse of power. 2. Is it ethical for an organization to coerce individuals to change? Coercion implies manipulation through power. Students might want to review the chapter on power. 3. You are leading a management development seminar, and the supervisor of one of the participants asks how his employee is performing in the seminar. Should you reveal this information? It would probably depend on the type of seminar being conducted. If it is a sensitivity training workshop the information is absolutely confidential. However, if this is a class training for new computer applications, this becomes a factual question rather than a behavioral attitude question. 294 Chapter 16: Managing Change 4. Suppose you are a consultant, and an organization asks you to deliver a team-building intervention. You know a little about team building, but not a lot. You do know that a competitor will probably get the job if you do not do it. What should you do? This is extremely dangerous and risky for you and those involved with the process. It is better to let the competitor have the program if you are not trained for the intervention. There is a good chance your lack of knowledge would backfire on you if you proceeded. 5. Suppose you are a consultant, and a company asks you to assist in rewriting its policies and procedures manual to help eliminate the company's excessive absenteeism. From your limited knowledge about the company, you suspect that the problem lies elsewhere, and that changing the manual will not solve the problem. What should you do? Go through the logical steps for needs analysis and outline those issues with the individuals that are encouraging the project. CHALLENGES 16.1 TOLERANCE FOR AMBIGUITY This scale will give students a sense of their comfort with change in organizations. This challenge might be a good lead-in to a class discussion of the reasons individuals resist change and of how organizations can better manage the change process given that everyone does not tolerate ambiguity to the same degree. 16.2 APPLYING FORCE FIELD ANALYSIS This challenge can be tied to Discussion and Communication Question #10 that asks students to prepare a force field analysis of A change they desire to make in their lives. Prior to students completing this analysis, select an example and walk the students, as a class, through a force field analysis so that they understand better how to apply this type of analysis to their own experience. Chapter 16: Managing Change 295 EXPERIENTIAL EXERCISES 16.1 ORGANIZATIONAL DIAGNOSIS OF THE UNIVERSITY Instructor's Notes: This exercise is intended to give students experience in organizational diagnosis with an environment in which they are familiar. It is useful to point out that they may not know enough about all aspects of the university to proceed through the diagnosis. You might want to query them on how they would gather significant information on the areas where they are least comfortable. It is also interesting to ask them if they believe they are too biased in any of the areas because of personal experiences that may not be true for the majority of students. Finally, would they be better change agents than an outside consultant? 16.2 TEAM BUILDING FOR TEAM EFFECTIVENESS Instructor's Notes: This exercise is a team building effort stressing change. This is a good closure exercise for the end of the semester. If you use peer evaluation or group grading this might be a good follow-up to the evaluation. Most students have a tendency to paint a better picture of their group than where they actually performed because they believe we expect them to be positive. Emphasize that if their group was a disaster, it is useful to analyze why this happened, and how they could have prevented the outcome knowing what they know at the end of the semester. ALTERNATIVE EXPERIENTIAL EXERCISE CRUSTY RUSTY Adapted from Ken Kozar, The University of Colorado, Boulder This exercise points out the difficulties for individuals in dealing with change. Students are divided into groups of three or four, with one person as Crusty Rusty, the curmudgeon opposing the computer change, and Jesse, the young junior accountant sent to convince Rusty that a change is needed. In addition, there is an observer that records the interactions. I ask the Jesses to leave the room with me, and have the Rustys spread out across the room and the observers select a group to observe. The Jesses are instructed to approach the Rustys as if they are actually in their office, beginning with hello. 296 Chapter 16: Managing Change Students enjoy this exercise. Try to assign students to roles that they would least likely be in. CRUSTY RUSTY ROLE FOR JESSE BECKER, JUNIOR ACCOUNTANT You are a junior accountant for the National Quik Service Company (QSC) out of Dallas. You have been working at this job for six months, this being your first "real" job since graduating from the University. You have just completed a computerized statistical analysis system for payroll which was well received by the terminal managers. It provided more relevant and current information than they have ever had before. Both you and the managers are enthusiastic about the success of the system and the potential of other computerization for the company. Suddenly, your opportunities have expanded throughout the organization. This afternoon you have a meeting with Rusty Griffen, the specialist in the division concerning dispatching, which is the next project the managers have jokingly said "couldn't be undertaken before Rusty retires." At the present time, dispatching is determined manually, resulting in numerous errors and requiring a great deal of memory for one individual. The major problem is that often two trucks would be dispatched to pick up the same loads at different times. You feel that a computerized inventory system similar to ones used by other transportation industries could be used as a model. You have tried to work with Griffen in the past. You feel all of your ideas have been bucked at every opportunity, particularly regarding anything remotely involving change. You feel Griffen's idea of automation is to get a larger piece of paper divided into more columns and a copier that could reproduce this master to the same size in color. Rusty does not trust the computer ever since there was a deduction taken out of a paycheck in 1982. Rusty will retire in 8 years and it seems to you that any change now will threaten the security that this position has built over the years. With Rusty's attitude toward change, you feel the trucking industry would still be in the pony express days. You sincerely believe the proposed system could improve and set your organization apart in the freight hauling industry. Well, time to head up to Rusty's office for that chat. Chapter 16: Managing Change 297 CRUSTY RUSTY ROLE FOR RUSTY GRIFFIN, SENIOR DISPATCHER You are the dispatcher in charge of 400+ trucks. In another 8 years you will be retiring from the company with 30 years service. Prior to the dispatcher job, you worked as an independent operator and were noticed by your supervisors for your meticulous and accurate reporting of your trips, and consequently, you were promoted to the dispatcher position. You have the task of summarizing the day to day activities and projecting future loading points. You have quite a system worked out with west coast trucks indicated in blue, inbound noted by red, unloaded and ready for the trip back, another color, etc. This afternoon you are to meet with Jesse Becker, the new computer whiz. Your supervisor heard about a computer system used to manage another company at a recent conference. You feel the afternoon will be wasted since you have many trucks to record and update since a fluid was not pure that was pumped into 15 outgoing trucks. You feel these computer kids don't understand the first principles of the trucking industry. If they did, they would not have all these fancy and costly ideas. Anyhow, you feel that if you put the data in the computer, you would never really be sure it's there, just like the time your paycheck got mixed up and then those computer people couldn't correct it. Well, it is time for the meeting. You hope the kid, whose total years of age don't even come close to your years of experience, doesn't try to tell you how to do your job. 298 Chapter 16: Managing Change CRUSTY RUSTY QUESTIONS FOR ROLE PLAY OBSERVERS Did Jesse introduce himself/herself? Were the objectives for the interview clear to Rusty? Who talked the most? Was there any small talk? Were there any non-verbal indicators expressed by either person? Was more time spent on obtaining information or obtaining acceptance? What change strategy did Jesse take? What conflict style did Jesse and Rusty adopt? What type of power do each of the individuals have? Other comments? Chapter 16: Managing Change 299 MBTI EXERCISE: Exercise Learning Objectives: a. Students will understand that managing change is not the same for everyone. b. Students will understand that "change" is defined differently by various groups. c. Students will comprehend that to affect an organizational change, managers must be attuned to the different ways change affects people. Exercise Overview: 1. Students will form teams of like functional pairs (ST, SF, NF, and NT). The instructor should ensure that no more than six students are in a particular group. If necessary, make two groups of the same functional pair. 2. Students will construct a "Force Field Analysis" chart concerning managing change. 3. Students will report out their results and the instructor will summarize the exercise. 4. The instructor should know how to construct and interpret a force field analysis. We recommend that the students use Experiential Exercise 16.2 before this exercise. Exercise Description: a. Individually and silently, students will develop two lists. The first list is entitled, "reasons that I welcome change" and the second list is titled, "reasons that I resist change." Each list should take about five minutes. It is important that silence be enforced. Remember that those people who prefer introversion need time to reflect. This gives them that time and allows them to better participate in the exercise. b. Students form teams of like functional pairs (ST, SF, NF, and NT). c. On flip chart paper, students will first list the reasons they welcome change. The students should report in some sequential order until everyone states every item on his or her list. d. Students do the same thing for the reasons that they resist change. e. Using one piece of flip chart paper, students will draw a vertical line in the center and title the left side of the paper, "change welcomers" and on the right side the title is "change resistors." f. Students will review their consolidated lists and pick out 10 items to write on each appropriate half of the paper. The instructor should encourage students to list the strongest "welcomers" and the strongest "resistors." 300 Chapter 16: Managing Change g. Students should now spend 10 minutes (5 minutes per side) talking about why these "welcomers" and "resistors" are so important to them. h. Students report out. g. Instructor summarizes the lesson. What the instructor should expect: a. "ST" groups may list in the resistor column such concepts/ideas as: goals are unclear, my job will change, I'll have to physically move, our organizational structure will change, I've never seen this before, it costs too much, and too much uncertainty. b. "SF" groups may list in the resistor column such concepts/ideas as: I won't be working near or with my friends, I don't know anyone in that department, the boss is real hard to get along with, I don't know enough details, managers always keep us in the dark about these things, and it won't be fun any more. c. "NF" groups may list in the resistor column such concepts/ideas as: our organizational structure will change, they never take into account the "human costs" of change, we won't know our role and place in the new organization, I don't understand how this will help the organization perform better, and the change will disrupt all of my work relationships. d. "NT" groups may list in the resistor column such concepts/ideas as: we're changing just for the sake of changing, no thought was added to this process, we could have fixed the existing structure easier if someone had just asked us, I don't understand the reason for the change, this change doesn't fit the other things we're doing, and our energies are directed away from system improvement--we'll have to start all over again. e. The "welcomers" side of the chart should list opposite ideas and concepts. Instructor' Summary: We can see from the discussion that the ST and SF groups have several things in common. These groups want to know the details concerning why we must move. Neither of these groups embraces change unless you can prove to them in "black and white" that this changes is necessary. The "STs" will want a logical explanation and the "SFs" will want you to show them how this change will enhance the working relationships of the employees. Chapter 16: Managing Change 301 We can see from the NF and NT groups that they also have a lot in common. Both of these groups want to know how this change will affect the internal and external relationships of the organization. The "NFs" wish to also ensure that any anticipated move clearly addresses the human engineering aspects. The "NTs" want to make sure that the change is logically planned and executed. Remember that all organizations are composed of people who possess these MBTI functional pairings. In order to properly affect change, a manager needs to make sure that the concepts and ideas of the three pairs he or she does not prefer are taken into account. EXTRA EXPERIENTIAL EXERCISES Marcic, Dorothy & Seltzer, Joe. Organizational Behavior: Experiences and Cases, 5th Ed. South Western College Publishing Company, 1998. Downsizing: Merger at Local Bank. p. 259-261. Time: 20-40 minutes. Purpose: To discuss change issues regarding mergers and downsizing. Organizational Assessment of Campus. p. 278-279. Time: 50 minutes. Purpose: To apply organizational development concepts. Fandt, Patricia M. Management Skills: Practice and Experience. West Publishing Company, 1994. In Basket Exercise 1: Working with New, Changing and Ambiguous Situations. p. 44. Exercise 1: Planning for Change. p. 461.