Microsoft® PowerPoint Presentation to Accompany Organizational Behavior SEVENTH EDITION Gregory Moorhead and Ricky W. Griffin

Organization Change and Development Chapter 19 Organization Change and Development

Copyright © by Houghton Mifflin Company. All rights reserved. Learning Objectives Summarize four dominant forces for change in organizations. Describe the process of planned organization change as a continuous process. Discuss several approaches to organization development. Explain organizational and individual sources of resistance to change. Identify seven keys to managing successful organization change and development. Copyright © by Houghton Mifflin Company. All rights reserved.

Copyright © by Houghton Mifflin Company. All rights reserved. Forces for Change Top management evaluates the organization and considers significant changes when pressures for change appear. The most powerful pressures involve: People Increasing diversity in age, education, ethnicity, and background. Technology Increasing usage of all forms of technology. Competition Increasing globalization of markets. Copyright © by Houghton Mifflin Company. All rights reserved.

Table 19.1 Pressures for Organization Change Copyright © by Houghton Mifflin Company. All rights reserved.

The Continuous Change Process Model Planned change from the perspective of top management is that change is a continuous process. Top management perceives that change are needed. The issue is subjected to the organization’s problem-solving and decision-making process. Alternatives for change are generated and evaluated, and an acceptable one is selected. The change process is implemented and then evaluated for effectiveness and desired results. Copyright © by Houghton Mifflin Company. All rights reserved.

Figure 19.2 Continuous Change Process Model of Organization Change Copyright © by Houghton Mifflin Company. All rights reserved.

The Continuous Change Process Model Change Agents Early on, the organization may seek out a change agent – a person (typically an outsider) to be responsible for managing the change effort. Measuring, Evaluating, and Controlling the Change The effectiveness of the change process is indicated by increases in productivity, effectiveness, or employee morale. Transition Management The process of systematically planning, organizing, and implementing change, from the disassembly of the current state to the realization of a fully functional future state within an organization. Copyright © by Houghton Mifflin Company. All rights reserved.

Organization Development The process of (1) planned change and (2) improvement of the organization through (3) the application of knowledge of the behavioral sciences. System wide Organization Development Can be a major restructuring of the organization or the implementation of programs such as quality-of-work-life. Quality-of-work-life refers to the degree to which members of a work organization are able to satisfy important personal needs through their experiences in the organization. Copyright © by Houghton Mifflin Company. All rights reserved.

Organization Development [continued] The Organization Development Process Planned change as opposed to spontaneous or haphazard change. Improvement of the organization rather than simply imposed or imitative change. Application of the knowledge of the behavioral sciences to create true behavioral change and not merely technological improvement. Copyright © by Houghton Mifflin Company. All rights reserved.

Organization Development [continued] System wide Organization Development Involves making structural changes in the organization’s task divisions, authority, or relationships. Implementing people-oriented programs: Quality-of-Work-Life through which employees are able to satisfy personal needs through their experiences in the organization. Total Quality Management (TQM). Benefits of Quality-of-Work-Life programs: A more positive attitude toward work. Increased employee productivity. Increased effectiveness of the organization. Copyright © by Houghton Mifflin Company. All rights reserved.

Figure 19.3 Walton’s Categorization of Quality-of-Work-Life Programs Copyright © by Houghton Mifflin Company. All rights reserved.

Task and Technological Change System wide Organizational Change Through Changes in Tasks and the Technology Involved in Doing the Work Integrated Framework for Implementation of Task Redesign in Organizations Copyright © by Houghton Mifflin Company. All rights reserved.

Copyright © by Houghton Mifflin Company. All rights reserved. Integrated Framework for Implementation of Task Redesign in Organizations Table 19.2 Copyright © by Houghton Mifflin Company. All rights reserved.

Group and Individual Change Groups and individuals are involved in organization change in a vast number of ways. People-oriented change techniques include: Training. Management development programs. Team building. Survey feedback. Copyright © by Houghton Mifflin Company. All rights reserved.

Group and Individual Change [continued] Training Training is designed to improve employees’ job skills. Training methods include: Lecture, discussion, a lecture-discussion combination, experiential methods, case studies, and films or videotapes. A major concern of training programs is transferring employee learning to the workplace. Copyright © by Houghton Mifflin Company. All rights reserved.

Group and Individual Change [continued] Management Development Programs Can help fill the managerial skills gap for technical people who become managers. Use participative methods, such as case studies and role playing to foster managerial skills, abilities, and perspectives. Copyright © by Houghton Mifflin Company. All rights reserved.

Group and Individual Change [continued] Team Building Emphasizes working together in a spirit of cooperation and generally has the following goals: To set team goals and priorities. To analyze or allocate the way work is performed. To examine how a group is working. To examine relationships among the people doing the work. Copyright © by Houghton Mifflin Company. All rights reserved.

Group and Individual Change [continued] Group and Individual Change Survey Feedback Survey feedback techniques can form the basis for a change process. In the process, data are gathered, analyzed, summarized, and returned to those who generated them to identify, discuss, and solve problems. Copyright © by Houghton Mifflin Company. All rights reserved.

Figure 19.4 The Survey Feedback Process Copyright © by Houghton Mifflin Company. All rights reserved.

Copyright © by Houghton Mifflin Company. All rights reserved. Resistance to Change Organizations both promote and resist change. Externally, firms expect customers to alter their current buying habits in favor of the firm. Internally, firms resist change to protect their internal operations from external instabilities. Firms must change internally to remain competitive in the marketplace. Copyright © by Houghton Mifflin Company. All rights reserved.

Table 19.3 Resistance to Change: Organizational Sources of Resistance Copyright © by Houghton Mifflin Company. All rights reserved.

Table 19.3 Resistance to Change: Individual Sources of Resistance Copyright © by Houghton Mifflin Company. All rights reserved.

Copyright © by Houghton Mifflin Company. All rights reserved. Table 19.4 Keys to Managing Successful Organization Change and Development Copyright © by Houghton Mifflin Company. All rights reserved.