Overcoming Resistance to Change Chapter 6 Overcoming Resistance to Change An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Learning Objectives Identify forces that cause resistance to change. Recognize strategies that can increase motivation to change. Diagnose forces driving and resisting organization change. Experience reactions to a change situation. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Change and Reinvent (part 1 of 2) Many organizations being forced to change radically. Organizations face major challenge in managing change. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Change and Reinvent (part 2 of 2) Organizations need capacity to adapt quickly. People focus of most serious challenges. Large scale changes incur significant problems and challenges. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Changes on Personal Level Set patterns of behavior. Defined relationships with others. Work procedures and job skills. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Changes on Organizational Level Policies. Procedures. Organization structures. Manufacturing processes. Work flows. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Life Cycle of Resistance to Change (part 1 of 5) Response to change tends to move through 5 phases: Phase 1: Change Introduced. Only few people who see need for change. Resistance appears massive. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Life Cycle of Resistance to Change (part 2 of 5) Phase 2: Forces Identified. Forces for and against change identified. Change more thoroughly understood. Novelty of change tends to disappear. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Life Cycle of Resistance to Change (part 3 of 5) Phase 3: Direct Conflict. Direct conflict and showdown between forces. This phase probably means life or death to change. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Life Cycle of Resistance to Change (part 4 of 5) Phase 4. Remaining resistance seen as stubborn. Possibility resisters will mobilize to shift balance of power. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Life Cycle of Resistance to Change (part 5 of 5) Phase 5. Resisters to change are as few and as alienated as were advocates in first phase. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Leading Change: Major Factors Affecting Success of Change Advocates of change. Degree of change. Time frame. Impact on culture. Evaluation of change. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Figure 6.1 Change Factors An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Advocates of Change Person leading change often most important force for change. OD practitioners may be brought in to assist. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Degree of Change Is change minor or major? The greater the change, the more difficult to implement. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Time Frame Greater chance of success if: Change is gradual. Longer time frame. Some organizations only chance for survival depends on: Radical change. Introduced swiftly. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Impact on Culture The greater the impact on existing culture: The greater the resistance and The more difficult it is to implement change. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Evaluation on Culture Standards of performance developed. Designed to measure: Degree of change and Impact on organization. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

A Change Model (part 1 of 5) Two major considerations in organizational change are: Degree of change. Impact on organization’s culture. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Figure 6.2 Change Model An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Change Model (part 2 of 5) Quadrant 1 Minor change, low impact on culture. Resistance at lowest level. Success most probable. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Change Model (part 3 of 5) Quadrant 2 Minor change, high impact on culture. Some resistance can be expected. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Change Model (part 4 of 5) Quadrant 3 Major change, high impact on culture. Some resistance likely. Good management can probably overcome resistance. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Change Model (part 5 of 5) Quadrant 4 Major change, high impact on culture. Greatest resistance can be predicted. Probability of success low. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Driving Forces Toward Acceptance of Change Anything that increases organization to implement change. Vary in intensity depending on situation. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Driving Forces for Change (part 1 of 5) Dissatisfaction with present situation. External pressures toward change. Momentum toward change. Motivation by management. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Driving Forces for Change (part 2 of 5) Dissatisfaction with present situation. Intense dissatisfaction with present situation provides motivation. Some members are aware of need for improvement. Being average not good enough. Stockholder demands for change. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Driving Forces for Change (part 3 of 5) External pressures toward change. Forces outside of organization (example: market conditions). New technologies and methods implemented to remain competitive. New legal requirements. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Driving Forces for Change (part 4 of 5) Momentum toward change. Once change underway, forces push it along. Those involved tend to become committed. Money previously already spent on change provides motivation. Change in one part of organization may set off chain reaction. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Driving Forces for Change (part 5 of 5) Motivation by management. Manager or advocate of change becomes motivating force. Top management’s encouragement can motivate change. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Restraining Forces Blocking Change (part 1 of 2) Uncertainty regarding change. Fear of unknown. Disruption of routine. Loss of benefits. Threat to security. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Restraining Forces Blocking Change (part 2 of 2) Threat to position power. Redistribution of power. Disturb existing social networks. Conformity to norms and culture. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Driving Forces & Restraining Forces Act in Tandem Effective change programs: Increase driving forces. Decrease restraining forces. Force-field analysis model useful to view driving and restraining forces. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Strategies to Increase Motivation (part 1 of 2) Climate conducive to change. Clearly articulated vision. Effective communications. Leadership of managers. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Strategies to Increase Motivation (part 2 of 2) Participation of members. Reward systems. Negotiation, agreement, and politics. Power strategies. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

OD Application Five Phases of Resistance to Change Change tends to move through a life cycle. Environmental movement over 40 years illustrates phases. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

PHASE 1 – Change Introduced. Environmental movement began to grow in 1970s. The forces for change were small. PHASE 2 – Forces Identified. By 1980s forces for and against change became organized. PHASE 3 – Direct Conflict. Clean Air Act of 1990 brought opposing groups into direct confrontation. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

PHASE 4 – Residual Resistance. Opposing groups continued to have conflicts. Resistance became less intense through first decade of 2000s. PHASE 5 – Change Established. World generally sees environmental responsibility as a necessity. Disagreements persist in how to implement changes. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

OD Application The World of Business Globalization has occurred for hundreds of years. Recently experienced exponential growth. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Reasons for increase include: Improvements in communications and transportation. More efficient global banking systems. Surpluses in capital for some countries. Worldwide lowering of trade barriers. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Multinational companies (MNCs) based all over the world. MNCs emerging in larger numbers in developing countries. MNCs help create markets by employing workers worldwide. Trend for MNCs to blend into countries and adapt local culture. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Table 6.1 Fortune Top Global 500 Companies An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Keywords and Concepts Driving forces. Employee stock ownership plan. Increases client system to implement proposed change. Employee stock ownership plan. Grant stock or stock options to broad section of employees. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Gain sharing. Knowledge-based pay. Open-book management. Reward system that recognizes value of specific group. Knowledge-based pay. Reward system based on the knowledge or skills of workers. Open-book management. Employees use financial records to analyze problems. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Profit-sharing. Restraining forces. Vision. Uses the performance of business to calculate employee pay. Restraining forces. Forces that block implementation of change program. Vision. Describes desired future state for organization. Can provide members with mental image of future. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

OD Skill Simulation 6.1 Downsizing in Enigma Co. Purpose. Examine how you attempt to influence others. Understand relationship between acceptance and rejection of change. Consider how change situations are influenced. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

OD Skill Simulation 6.2 Driving and Restraining Forces Purpose. Help you further understand the diagnosis process. Experience overcoming resistance to change. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

OD Skill Simulation 6.3 Strategies for Change Purpose. Experience a change situation where you attempt to change another person. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

Preparations for Next Chapter Read Chapter 7. Prepare for OD Skill Simulation 7.1. Complete Step 1. Prior to class, form teams of eight members and select roles. Read and analyze Case: The Farm Bank. An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall

An Experiential Approach to Organization Development 8th edition Copyright ©2011 Pearson Education, Inc. Publishing as Prentice Hall