Chapter 22 Managing Change

Objectives Describe the nature of change Explain the essential components in the change process Understand the leader’s role in the change process Define resistance to change and its function List tactics for dealing with resistance to change Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -1

Basic Requirements for Successful Change Efforts Top management support Critical mass Trust New psychological contracts New learned behaviors Organizational learning Institutionalization of innovations Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -2

Types of Change Incremental (first-order) Transformative Linear Continuous Targeted at fixing / modifying problems / procedures Transformative (second-order, gamma) Radical Discontinuous Multidimensional Multilevel Modifies the fundamental structure, systems, orientation and strategies Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -3

Critical Mass - Defined Critical mass is defined as the smallest number of people and / or groups who must be committed to a change for it to occur Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -4

Lewin’s Change Process Unfreezing Stress, tension, strong felt need for change Moving Give up old ways of behaving, Test new behaviors, attitudes and values Refreezing Reinforce, internalize, institutionalize new behavior Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -5

Change Is a Process - not an Event or Managerial Edict Technical Solution Process Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -6

Steps in the Change Process obtaining participation Determining the need for change Forming a guiding coalition Evaluating the change Developing a shared vision Implementing the change Creating a tentative plan Communicating the change Establishing an implementation plan Analyzing potential resistance and obtaining participation Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -7

When Are Conditions Favorable for Change? C=(D X S X P) > X Where: C = change D = dissatisfaction with status quo S = an identifiable and desired end state P = practical plan for achieving the desired end state X = the cost of change to the organization Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -8

Force Field Analysis - Defined Force field analysis assigns pressures for change and resistance to change to opposite sides of an equilibrium state. Forces against change Forces for change Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -9

Creative Tension - Defined Creative tension results from perceiving the gap between the ideal situation and an honest appraisal of its current reality Ideal situation Current reality Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -10

Creating a Sense of Urgency Create a crisis by allowing a loss/error to blow up Eliminate obvious examples of excess Set targets so high they can’t be reached by doing business as usual Share more info on customer satisfaction and financial performance Insist employees talk with unsatisfied customers, suppliers, shareholders Stop “happy talk” and be honest Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -11

Change Agents - Defined Change agents are people who act as catalysts and assume the responsibility for managing change activities Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -12

Role of Transformational Leaders Envision Articulate a clear and credible vision Set new and difficult standards for performance Generate pride in past accomplishments and enthusiasm for new strategy Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -13

…Role of Transformational Leaders Energize Personally demonstrate excitement for changes Model the behaviors that are expected of others Communicate examples of early successes to mobilize energy for change Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -14

…Role of Transformational Leaders Enable Provide resources necessary for undertaking significant change Use rewards to reinforce new behaviors Build an effective top-management team to manage the new organization Develop management practices to support the change process Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -15

Resistance to Change - Defined Resistance is a natural reaction to change and part of the process of adaptation Ensures that plans for change and their ultimate consequences are carefully thought through Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -16

Handling Resistance to Change View it as something else that must be managed by: Understanding the source Listening carefully to concern Refraining from seeing resisters as adversaries Using the appropriate tactic in response Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -17

Sources of Resistance Inadequate change goal Inadequate process Personal resistance Political resistance Systemic resistance Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -18

Tactics for Dealing with Resistance Empathy Education and communication Participation and involvement Facilitation and support Co-optation Negotiation and agreement Manipulation Coercion Commitment Compliance Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -19

Organizational Development (OD) - Defined Organization development (OD) is a specialized system-wide process of data collection, diagnosis, action, planning, intervention, and evaluation aimed at: enhancing congruence between organizational structure, process, strategy, people, and culture,  developing new and creative organizational solutions, and (3) developing the organization’s self-renewing capacity. Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -20

Cultural Values Underlying OD Respect for people Trust and support Equality and power sharing Candor and confrontation Participation Collaboration Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -21

When Does Culture Matter with Change? OD values are not reflective of all cultures. Cultures vary in terms of their comfort with change, beliefs about how change occurs, and how it should be implemented. Cultural values affect the change implementation process Change interventions that work in one country may not succeed elsewhere. Corporate-wide changes have to be contextualized Organizational Behavior: An Experiential Approach 8/E Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner 22 -22