Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Organizational Change Chapter Fourteen

14-2 FBI Overcomes Resistance to Change FBI staff resisted changing from a reactive law enforcement agency to a proactive domestic intelligence agency. Change is now occurring at the FBI through extensive communication, training, and realignment of systems and structures.

14-3 Lewin’s Force Field Analysis Model A systems perspective of change developed by social psychologist Kurt Lewin Unfreezing and refreezing  Occur by altering driving and restraining forces  Generate urgency to change  Address sources of resistance  New systems/structures refreeze desired conditions Driving Forces Restraining Forces

14-4 Desired Conditions Current Conditions Before Change After Change Force Field Analysis Model During Change Driving Forces Restraining Forces Driving Forces Restraining Forces Driving Forces Restraining Forces

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Sources of/Overcoming Resistance to Organizational Change Organizational Change

14-6 Sources of Resistance to Change Direct costs  Losing something of value due to change  FBI’s new intelligence mandate would reduce status in law enforcement Saving face  Accepting change acknowledges own imperfection, past wrongdoing  New FBI mandate acknowledges value of CIA work (source of past turf wars)

14-7 Sources of Resistance to Change (con’t) Fear of the unknown  Risk of personal loss  Concern about being unable to adjust Breaking routines  Organizational unlearning is part of change process  But past practices/habits are valued by employees due to comfort, low cognitive effort

14-8 Sources of Resistance to Change (con’t) Incongruent organizational systems  Systems/structures reinforce status quo  FBI career, reward, power, communication systems supported law enforcement, not intelligence Incongruent team dynamics  Norms contrary to desired change

14-9 Creating an Urgency for Change Inform employees about driving forces Most difficult when organization is doing well Must be real, not contrived Customer-driven change  Adverse consequences for firm  Human element energizes employees

14-10 Communication  Highest priority and first strategy for change  Improves urgency to change  Reduces uncertainty (fear of unknown)  Problems -- time consuming and costly Minimizing Resistance to Change

14-11 Communication  Provides new knowledge and skills  Includes coaching and action learning  Helps break old routines and adopt new roles  Problems -- potentially time consuming and costly Minimizing Resistance to Change Learning

14-12 Communication  Increases ownership of change  Helps saving face and reducing fear of unknown  Includes task forces, future search events  Problems -- time-consuming, potential conflict Minimizing Resistance to Change Learning Employee Involvement

14-13 Communication  When communication, training, and involvement do not resolve stress  Potential benefits More motivation to change Less fear of unknown Fewer direct costs  Problems -- time-consuming, expensive, doesn’t help everyone Minimizing Resistance to Change Learning Employee Involvement Stress Management

14-14 Communication  When people clearly lose something and won’t otherwise support change  Influence by exchange-- reduces direct costs  Problems Expensive Gains compliance, not commitment Minimizing Resistance to Change Learning Employee Involvement Stress Management Negotiation

14-15 Communication  When all else fails  Assertive influence  Firing people -- radical form of “unlearning”  Problems Reduces trust May create more subtle resistance Minimizing Resistance to Change Learning Employee Involvement Stress Management Negotiation Coercion

14-16 Refreezing the Desired Conditions Realigning organizational systems and team dynamics with the desired changes  Alter rewards to reinforce new behaviors  Feedback systems — Help employees learn how they are doing — Provide support for the new behavior patterns

14-17 Strategic Vision & Change  Need a vision of the desired future state  Identifies critical success factors for change  Minimizes employee fear of the unknown  Clarifies role perceptions

14-18 Change Agents Change agents apply transformational leadership  Help develop a vision  Communicate the vision  Act consistently with the vision  Build commitment to the vision Also apply transactional leadership  Aligning employee behavior through rewards, resources, feedback,etc.

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Three Approaches to Organizational Change Organizational Change

14-20 Action Research Approach Change needs both action and research focus Action orientation  Solve problems and change the organizational system Research orientation  Concepts guide the change  Data needed to diagnose problem, identify intervention, evaluate change

14-21 Establish client- consultant relations Disengage consultant’s services Action Research Process Diagnose need for change Introduce intervention Evaluate/ stabilize change

14-22 Appreciative Inquiry at Canadian Tire Canadian Tire relied on appreciative inquiry by asking staff to describe events that have made the retailer successful. The company ’ s core values were then rebuilt around those positive experiences. Store employees were also involved in an appreciative inquiry exercise to reinforce these values.

14-23 Appreciative Inquiry Approach  Directs participants’ attention away from problems and towards the group’s potential and positive elements.  Reframes relationships around the positive rather than being problem oriented

14-24 Four-D Model of Appreciative Inquiry DiscoveryDiscovery DesigningDesigning Engaging in dialogue about “what should be” DreamingDreaming Forming ideas about “what might be” Discovering the best of “what is DeliveringDelivering Developing objectives about “what will be”

14-25 Parallel Learning Structure Approach Highly participative social structures Members representative across the formal hierarchy Sufficiently free from firm’s constraints Develop solutions for organizational change which are then applied back into the larger organization

14-26 Organization Parallel Structure Parallel Learning Structures

14-27 Cross-Cultural and Ethical Concerns Cross-Cultural Concerns  Linear and open conflict assumptions different from values in some cultures Ethical Concerns  Privacy rights of individuals  Management power  Individuals’ self-esteem

14-28 Organizations are About People “Take away my people, but leave my factories, and soon grass will grow on the factory floors. Take away my factories, but leave my people, and soon we will have a new and better factory.” Andrew Carnegie ( )

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Organizational Change Chapter Fourteen