Leading Change in Organizations Chapter 10 Leading Change in Organizations

Learning Objectives Understand the different reasons for resisting change Understand the psychological processes involved in making major changes Understand the different ways that leaders can influence the culture of an organization Understand the characteristics of an effective vision

Learning Objectives (Cont.) Understand how to develop an appealing vision for the organization Understand how to implement a major change in an organization Understand the characteristics of a learning organization Understand how leaders can increase learning and innovation in organizations

Reasons for Resistance to Change Lack of trust Belief that change is unnecessary Belief that the change is not feasible Economic threats Relative high cost Fear of personal failure Loss of status and power Threat to values and ideals Resentment of interference

Stages in the Change Process Lewin’s Force-Field Model Unfreezing Changing Refreezing Response to Repeated Traumatic Change Leaves people less resilient and more vulnerable Leaves people inoculated and better prepared to deal with change

Stages in Reaction to Change Denial – “This isn’t happening.” Anger – Look for someone to blame. Mourning – People stop denying that change is inevitable, acknowledge what has been lost, and mourn it. Adaption – Accept the need to change and go on with one’s life.

Prior Experience and Reaction to Change How a person reacts to change depends on: The person’s general confidence about coping with change successfully How much change they have previously experienced Can increase resilience Can increase stress and frustration

Different Types of Organizational Change Attitude-Centered Change Role-Centered Change Changes in Technology Change in Competitive Strategy Economic or Human Factor Changes Generic Change Programs

Systems Models for Organizational Change Problems have multiple causes Actions have multiple outcomes Changes have delayed effects Actions that appear to offer quick relief may make things worse in the long run The best solution may offer no immediate benefits

Influencing Organizational Change Nature of Organizational Change Ways to Influence Culture Leadership Behavior Programs, Systems, Structures, and Cultural Forms

Table: Ways to Influence Organizational Culture

Culture and Growth Stages of Organizations Founders have strong influence on the organizational culture More difficult to change culture in mature organizations In mature organizations, the culture influences the leader more than the leader influences the culture

Developing a Vision Desirable Characteristics for a Vision Elements of a Vision Mission Statement Value Statement Slogan Strategic Objectives Project Objectives

Procedures for Developing a Vision Involve key stakeholders Identify strategic objectives with wide appeal Identify relevant elements in the old ideology Link the vision to core competencies Evaluate the credibility and refine the vision Continually assess and refine the vision

Implementing Change Responsibility for Implementing Major Change Support from top management The Pace and Sequencing of Changes Rapid versus gradual introduction of change Change interdependent subunits simultaneously Changes in the organizational structure to make it consistent with the strategy

Table: Guidelines for Implementing a Major Change

Innovation and Organizational Learning Internal Creation of New Knowledge Internal departments Pilot testing new ideas External Acquisition of New Knowledge Best practices Hiring outsiders External consultants Joint ventures

Innovation and Organizational Learning (Cont.) Knowledge Diffusion and Application Information systems Written or electronic documents Special purpose conferences Seminars and workshops Learning Organizations

Guidelines for Increasing Learning and Innovation Encourage appreciation for flexibility and innovation Encourage and facilitate learning by individuals and teams Help people improve their mental model Leverage learning from surprises and failures

Guidelines for Increasing Learning and Innovation (Cont.) Encourage and facilitate sharing of knowledge and ideas Set innovation goals Reward entrepreneurial behavior

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