CHAPTER 16
MANAGING
ORGANISATIONS
THROUGH CHANGE &
CONFLICT
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–1
LECTURE OUTLINE
• Managing change
• Managing resistance to change
• Managing conflict
• Relationship between conflict &
change
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–2
MANAGING CHANGE
Managing change:
• Diagnosing the need for change
–
–
Internal factors
External factors
• The change cycle
Effective organisational change is cyclical
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
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MANAGING CHANGE
The change cycle
8.
1.
Evaluation
against
desired
outcomes
Performance
gap
2.
Identify a
desired future
3.
Recognise
need for
change
7.
Implementation
6.
Selection of
appropriate
alternatives
4.
5.
Development
of
alternatives
Problem
diagnosis
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
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MANAGING CHANGE
competition
politics
economy
technology
culture
jobs
regulations
External
change
factors
Internal
change
factors
The
organisation
employees
structure
imports
technical
development
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–5
MANAGING RESISTANCE TO
CHANGE
Individual resistance to change:
• Self-interest
• Misunderstanding
• Lack of trust
• Differential assessment
• Ability to adjust
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–6
MANAGING RESISTANCE TO
CHANGE
Managing resistance to change:
• Freeze cycle approach
Unfreezing
Initial awareness of need for change is developed
Changing
Focus on learning needed new behaviours
Freezing
Reinforcing new learned behaviours
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
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MANAGING RESISTANCE TO
CHANGE
THREE-STEP PROCESS:
UNFREEZE
UNFREEZE
CHANGE
REFREEZE
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
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MANAGING RESISTANCE TO
CHANGE
Overcoming resistance to change:
Methods adopted by managers
• Education & communication
• Participation & involvement
• Facilitation & support
• Negotiation & agreement
• Manipulation & cooptation
• Explicit & implicit coercion
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–9
MANAGING RESISTANCE TO
CHANGE
Overcoming resistance
Education &
communication
Participation &
involvement
Facilitation &
support
METHODS
(Kotter & Schlesinger)
Explicit &
implicit coercion
Manipulation &
cooptation
Negotiation &
agreement
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–10
MANAGING RESISTANCE TO
CHANGE
Force-field analysis:
Method involving analysing the two types of
forces—driving forces & restraining forces—that
influence any proposed change, then assessing
how best to overcome resistance
• Driving forces
Factors pressuring for a particular change
• Restraining forces
Factors pressuring against a change
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–11
MANAGING RESISTANCE TO
CHANGE
Overcoming resistance to change
Force Field Analysis (Kurt Lewin)
‘a method involving analysing the two types of forces,
driving forces and restraining forces,
that influence any proposed change, then
assessing how best to overcome resistance.’
Driving forces
Factors pressuring
for a
particular
change
C
H
A
N
G
E
Restraining
forces
Factors
pressuring
against a change
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–12
MANAGING RESISTANCE TO
CHANGE
Forces for change
Good union relations
Foreign competition
Recent losses
Cheaper outside sources
Union desire to save jobs
Company reluctance to
save jobs
Forces against change
Failing union relations
Stringent work rules
Current benefit costs
Current pay costs
Absenteeism levels
Company desire for
flexibility in layoff
decisions
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–13
MANAGING CONFLICT
Conflict is the perceived difference
between two or more parties resulting
in mutual opposition.
• Between individuals & organisation
• Causes of conflict
• Benefits and losses from conflict
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–14
MANAGING CONFLICT
Conflict between individuals and
organisations:
• Organisation efficiency is built on task
specialisation, unity of command,
formalisation.
• This often requires workers to be passive,
dependent & subordinate.
• Individuals may have little control over work
and machines may seem to take over
control.
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–15
MANAGING CONFLICT
Conflict between individuals and
organisations (cont.):
• This conflicts with the needs & expectations
of maturing people.
• Therefore, many job structures conflict with
a healthy personality’s basic growth needs.
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–16
MANAGING CONFLICT
Conflict between individuals and organisations:
Very mature employees
Highly
structured
organisations
Conflict is
strongest
with
Fragmented
and
mechanised
jobs
Formalised rules and procedures
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–17
MANAGING CONFLICT
Choices facing employees in conflict:
• Leave organisation or seek promotion
• Use defence mechanisms
• Psychologically disassociate
• Concentrate on material rewards
• Find allies & resist
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–18
MANAGING CONFLICT
Conflict between individuals/organisations:
Conflict occurs:
Employees must
choose to
Leave
Defend
Disassociate
Find distraction
Form alliances
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
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MANAGING CONFLICT
Causes of conflict:
• Communication factors
• Structural factors
• Size
• Participation
• Line–staff distinctions
• Reward systems
• Resource interdependence
• Task interdependence
• Power
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–20
MANAGING CONFLICT
Causes of conflict (cont.):
• Personal behaviour factors
• Communication styles
• Workforce diversity
• Differences in goals
• Reward structures
• Differences in perceptions
• Increased demand for specialists
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
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MANAGING CONFLICT
Benefits & losses from conflict:
BENEFITS
LOSSES
Productive task focus
Cohesion & satisfaction
Power & feedback
Goal attainment
Energy diversion
Distorted judgment
Loser effects
Poor coordination
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
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MANAGING CONFLICT
Benefits & losses from conflict
Benefits
Losses
Productive
task focus
Cohesion &
satisfaction
Power &
feedback
Energy
diversion
Distorted
judgment
Loser effects
Goal
attainment
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
Poor
coordination
16–23
MANAGING CONFLICT
Reducing/resolving conflict:
• Change situational factors
• Appeal to superordinate goals
• Interpersonal conflict-handling techniques
– Avoidance
– Accommodation
– Competition
– Compromise
– Collaboration
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
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MANAGING CONFLICT
Managing intergroup conflict through change:
• Problem solving
• Expansion of resources
• Smoothing
• Bureaucratic authority
• Limited communication
• Confrontation & negotiation
• Intergroup training
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–25
MANAGING CONFLICT
Managing intergroup conflict
Problem solving
Expansion of
resources
Intergroup training
Confrontation &
negotiation
Intergroup conflict
resolution
Limited communication
Smoothing
Bureaucratic
authority
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–26
RELATIONSHIP BETWEEN
CHANGE & CONFLICT
• Types of intergroup conflict
– Functional
– Dysfunctional
• Changing views on conflict
– Traditional view—conflict is destructive &
unnecessary
– Modern view—conflict is inevitable, & may
produce better organisational performance
• Stimulating conflict
Build group diversity, communicate to provoke
change, encourage competition
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–27
LECTURE SUMMARY
• Managing change
–
–
Diagnosing need
Change cycle
• Managing resistance to change
–
–
–
Introducing change
Resistance to change
Managing resistance
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–28
LECTURE SUMMARY
• Managing conflict
–
–
Individual-organisational conflict
Causes
• Relationship between conflict &
change
–
–
–
Types of intergroup conflict
Changing views on conflict
Stimulating conflict
Copyright  2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
16–29