Leading Change in Organizations Chapter 10 Leading Change in Organizations

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

Learning Objectives Understand the characteristics of an effective vision Understand how to develop an appealing vision for the organization Understand the characteristics of a learning organization Understand how leaders can increase learning and innovation in organizations © 2006 Prentice Hall Leadership 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 © 2006 Prentice Hall Leadership in Organizations

Stages in the Change Process Lewin’s Force-Field Model Unfreezing Changing Refreezing Stages in Reaction to Change Denial Anger Mourning Adaption Response to Repeated Traumatic Change Leaves people less resilient and more vulnerable Leaves people inoculated and better prepared to deal with change © 2006 Prentice Hall Leadership in Organizations

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 © 2006 Prentice Hall Leadership in Organizations

Systems Model 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 © 2006 Prentice Hall Leadership in Organizations

Influencing Organizational Change Nature of Organizational Change Primary Ways to Influence Culture Attention Reactions to crisis Role Modeling Allocation of rewards Criteria for selection and dismissal © 2006 Prentice Hall Leadership in Organizations

Influencing Organizational Change Secondary Ways to Influence Culture Design of systems and procedures Design of organizational structure Design of facilities Stories, legends, and myths Formal statements © 2006 Prentice Hall Leadership in Organizations

Developing a Vision Desirable Characteristics for a Vision Elements of a Vision 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 © 2006 Prentice Hall Leadership in Organizations

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 © 2006 Prentice Hall Leadership in Organizations

Guidelines for Political/Organizational Actions Determine who can oppose or facilitate change Build a broad coalition to support the change Fill key positions with competent change agents Use task forces to guide implementation Make dramatic, symbolic changes that affect the work Monitor the progress of change © 2006 Prentice Hall Leadership in Organizations

Guidelines for People-Oriented Actions Create a sense of urgency about the need for change Prepare people to adjust to change Help people deal with the pain of change Provide opportunities for early successes © 2006 Prentice Hall Leadership in Organizations

Guidelines for People-Oriented Actions Keep people informed about the progress of change Demonstrate continued commitment to the change Empower people to implement the change © 2006 Prentice Hall Leadership in Organizations

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 © 2006 Prentice Hall Leadership in Organizations

Innovation and Organizational Learning Knowledge Diffusion and Application Information systems Written or electronic documents Special purpose conferences Seminars and workshops Learning Organizations © 2006 Prentice Hall Leadership in 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 © 2006 Prentice Hall Leadership in Organizations

Guidelines for Increasing Learning and Innovation Encourage and facilitate sharing of knowledge and ideas Set innovation goals Reward entrepreneurial behavior © 2006 Prentice Hall Leadership in Organizations