Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed. Copyright © 2004 by Pearson Education Canada Inc. Chapter 14 Organizational Change

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed. Copyright © 2004 by Pearson Education Canada Inc. Forces for Change Types of Organizational Change Managing Organizational Change Resistance to Change Caveats on Undergoing Change

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed. Copyright © 2004 by Pearson Education Canada Inc. Nature of the work force Technology Economic shocks Competition Forces for Change

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed. Copyright © 2004 by Pearson Education Canada Inc. Exhibit 14-1 Change Options Technology What are the change options? Physical setting PeopleStructureCulture

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed. Copyright © 2004 by Pearson Education Canada Inc. What Do Organizations Change? Culture –changing the underlying values and goals of the organization Structure –altering authority relations, coordination mechanisms, job redesign, or similar structural variables Technology –modifying how work is processed and methods and equipment used

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed. Copyright © 2004 by Pearson Education Canada Inc. What Do Organizations Change? Physical Settings –altering the space and layout arrangements in the workplace People –changes in employee skills, expectations and/or behaviour

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed. Copyright © 2004 by Pearson Education Canada Inc. Total Quality Management Philosophy of management that’s driven by the constant attainment of customer satisfaction through the continuous improvement of all organizational processes –seeks to reduce variability in output, resulting in lower costs and higher quality

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed. Copyright © 2004 by Pearson Education Canada Inc. Exhibit 14-2 What Is Total Quality Management? Intense focus on the customer Concern for continuous improvement Improvement in the quality of everything the organization does Accurate measurement Empowerment of employees

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed. Copyright © 2004 by Pearson Education Canada Inc. Why TQM Fails Some firms were not performing TQM, just calling it that Some managers have unrealistic expectations, and effect results too quickly Some programs did not assure employees’ job security Some firms did not provide adequate training Some firms did not appreciate the complexity of changes involved

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed. Copyright © 2004 by Pearson Education Canada Inc. Elements of Re-engineering Identifying an organization’s distinctive competencies Assessing core processes Reorganizing horizontally by process

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed. Copyright © 2004 by Pearson Education Canada Inc. Re-engineering versus TQM TQM Incremental improvements Bottom-up participative decision-making Re-engineering Quantum leaps in performance Driven by top management

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed. Copyright © 2004 by Pearson Education Canada Inc. Exhibit 14-4 Lewin’s Three- Step Change Model Refreezing MovingUnfreezing

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed. Copyright © 2004 by Pearson Education Canada Inc. Implementing Change Unfreezing: getting ready for change –Minimizing resistance Moving: making the change –Changing people (individuals and groups); Tasks; Structure; Technology Refreezing: stabilizing the change –Reinforcing outcomes, evaluating results, making constructive modifications

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed. Copyright © 2004 by Pearson Education Canada Inc. Exhibit 14-7 Sources of Individual Resistance to Change Security Economic factors Individual Resistance Fear of the unknown Selective information processing Habit

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed. Copyright © 2004 by Pearson Education Canada Inc. Cynicism About Change Feeling uninformed about what was happening Lack of communication and respect from one’s supervisor Lack of communication and respect from one’s union representative Lack of opportunity for meaningful participation in decision-making

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed. Copyright © 2004 by Pearson Education Canada Inc. Exhibit 14-9 Sources of Organizational Resistance to Change Organizational Resistance Threat to established resource allocations Structural inertia Threat to established power relationships Limited focus of change Threat to expertise Group inertia

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed. Copyright © 2004 by Pearson Education Canada Inc. Overcoming Resistance to Change Education and Communication –This tactic assumes that the source of resistance lies in misinformation or poor communication. Participation –Prior to making a change, those opposed can be brought into the decision process. Facilitation and Support –The provision of various efforts to facilitate adjustment.

Chapter 14, Stephen P. Robbins and Nancy Langton, Organizational Behaviour, 3rd ed. Copyright © 2004 by Pearson Education Canada Inc. Overcoming Resistance to Change Negotiation –Exchange something of value for a lessening of resistance. Manipulation and Cooperation –Twisting and distorting facts to make them appear more attractive. Coercion –The application of direct threats or force upon resisters.