MCSHANE
Organizational
VON GLINOW
BEHAVIOR
C H A P T E R
F I F T E E N
Organizational Change
and Development
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© The McGraw-Hill Companies, Inc. 2000
MCSHANE
Organizational
VON GLINOW
BEHAVIOR
Why do organizations change?
• Unplanned Change
– Managers don’t expect it
– Can lead to chaotic, uncontrolled periods of
change
• Planned Change
– Systematic efforts by managers to move
organizations to a new state
– Design, technology, tasks, people, information
systems, etc.
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© The McGraw-Hill Companies, Inc. 2000
MCSHANE
Organizational
VON GLINOW
BEHAVIOR
External Forces for Change
• Computer technology
– law of telecosm
– effect on knowledge, competition,
employment relations
• Globalization and local
competition
– effect on restructuring, outsourcing
– mergers
• Demography
© Corel Corp. With permission.
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– diversity
– emerging expectations
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© The McGraw-Hill Companies, Inc. 2000
MCSHANE
Organizational
VON GLINOW
BEHAVIOR
Internal Forces For Change
• Turnover of leaders
• Need for profits
• _______________
• _________________
• ________________
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© The McGraw-Hill Companies, Inc. 2000
MCSHANE
Organizational
VON GLINOW
BEHAVIOR
Types of Planned Change
• Evolutionary Change
– Incremental adaptation to the external
environment
– Series of phases
•
•
•
•
Need for change
Unfreeze
Change (or move)
Refreeze
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© The McGraw-Hill Companies, Inc. 2000
MCSHANE
Organizational
VON GLINOW
BEHAVIOR
Types of Change (cont)
• Revolutionary Change
– Unfolds over long periods of time
– Equilibrium periods: organization moves
steadily toward its mission and goals
– Revolutionary periods: Feverish change that
affects the overall strategy of the firm
• Deep structures are affected like culture, design,
processes, and relationships with the environment
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© The McGraw-Hill Companies, Inc. 2000
MCSHANE
Organizational
VON GLINOW
BEHAVIOR
Resistance to change
• People and Organizations resist changes
from both internal and external sources and
planned and unplanned change
• Manager’s reaction
– See resistance as a problem
• Treat it coercively
• Added resistance
– See resistance as a signal
• People need more information, or better treatment
• Gather insights from people
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© The McGraw-Hill Companies, Inc. 2000
MCSHANE
Organizational
VON GLINOW
BEHAVIOR
Slide 18.6
Sources of Resistance to Change
Individual Resistance
* Perception
* Personality
* Habit
* Threats to power
and influence
* Fear of the unknown
* Economic reasons
Organizational Resistance
* Organization design
* Organizational culture
* Resource limitations
* Fixed investments
* Interorganizational
agreements
Resistance to Change
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© The McGraw-Hill Companies, Inc. 2000
MCSHANE
Organizational
VON GLINOW
BEHAVIOR
Slide 18.5
Employee Readiness for Change
Perceived Personal Risk from Change
High
Low
Level of Dissatisfaction
with the Current
Situation
Low
High
High readiness
for change
Moderate to
indeterminant
readiness for change
Moderate to
indeterminant
readiness for change
Low readiness
for change
Source: Adapted from Zeira, Y., and Avedisian, J. Organizational planned change: Assessing the
chances for success. Organizational Dynamics, Spring 1989, 37.
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MCSHANE
Organizational
VON GLINOW
BEHAVIOR
Resistance to Change
Direct Costs
Saving Face
Fear of the Unknown
Forces for
Change
Breaking Routines
Incongruent Systems
Incongruent Team Dynamics
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© The McGraw-Hill Companies, Inc. 2000
MCSHANE
Organizational
VON GLINOW
BEHAVIOR
Slide 18.4
A Systems Model of Change
People
Culture
Task
Technology
Design
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Strategy
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© The McGraw-Hill Companies, Inc. 2000
MCSHANE
Organizational
VON GLINOW
BEHAVIOR
Slide 18.7
Force Field Analysis
Driving forces
Resisting forces
High performance goals
Group norms for output
Familiarity with
present equipment
New equipment
Complacency
Competition
Employees with
new skills
Need to learn new skills
Desire for increased
influence and rewards
Fear of reduced
influence and rewards
Current level
of group
performance
Desired level
of group
performance
Source: Adapted from Zand, D.E. Force field analysis. In N. Nicholson (ed.), Blackwell Encyclopedic
Dictionary of Organizational Behavior. Oxford, England: Blackwell, 1995, 181.
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© The McGraw-Hill Companies, Inc. 2000
MCSHANE
Organizational
VON GLINOW
BEHAVIOR
Slide 18.3
Initiatives Contributing to
Effective Change Management
Motivating Change
Creating a Vision
Effective Change
Management
Developing Political Support
Managing the Transition
Sustaining Momentum
Source: Adapted with permission from Cummings, J.G., and Worley, C.G. Organization Development
and Change, 6th ed. Cincinnati: South-Western, 1997, 154.
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MCSHANE
Organizational
VON GLINOW
BEHAVIOR
Successfully Diffusing Change
• Successful pilot study
• Favorable publicity
• Top management support
• Labor union involvement
• Diffusion strategy
described well
• Pilot program people
moved
Courtesy of Roberts Express
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© The McGraw-Hill Companies, Inc. 2000
MCSHANE
Organizational
VON GLINOW
BEHAVIOR
Customer-Driven Change at Continental Airlines
Continental Airlines executives
created an urgency to change
by listening to customers and
communicating their concerns
to employees. Customer-driven
change motivates employees to
engage in continuous change.
Courtesy of Continental Airlines
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© The McGraw-Hill Companies, Inc. 2000
MCSHANE
Organizational
VON GLINOW
BEHAVIOR
Minimizing Resistance to Change
Communication
Coercion
Negotiation
Training
Minimizing
Resistance
to Change
Employee
Involvement
Stress
Management
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© The McGraw-Hill Companies, Inc. 2000
MCSHANE
Organizational
VON GLINOW
BEHAVIOR
Refreezing the Desired Conditions
Creating organizational systems and team
dynamics to reinforce desired changes
– alter rewards to reinforce new behaviors
– new information systems guide new behaviors
– recalibrate and introduce feedback systems to
focus on new priorities
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MCSHANE
Organizational
VON GLINOW
BEHAVIOR
Organization Development
A planned system wide effort,
managed from the top with the
assistance of a change agent, that
uses behavioral science knowledge to
improve organizational effectiveness.
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MCSHANE
Organizational
VON GLINOW
BEHAVIOR
Action Research Process
Establish
ClientConsultant
Relations
Diagnose
Need for
Change
Introduce
Change
Evaluate/
Stabilize
change
Disengage
Consultant’s
Services
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MCSHANE
Organizational
VON GLINOW
BEHAVIOR
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”
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MCSHANE
Organizational
VON GLINOW
BEHAVIOR
Parallel Structures
Parallel
Structure
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Organization
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MCSHANE
Organizational
VON GLINOW
BEHAVIOR
Organization 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
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