Organization Change and Development Spring 2007 Organization Change and Development

Organizational Change and Development What is it? Why change? Resistance to change Force field analysis Spring 2007 Organization Change and Development

Organization Change and Development OD Defined OD = shorthand for “Organization Change and Development” OD is an effort… Planned Organization-wide Managed from the top, in order To increase organizational effectiveness, through Planned interventions in organizational processes, using behavioral-science knowledge Spring 2007 Organization Change and Development

The Change Process Consideration of alternatives Evaluation Forces for change Management recognition of need for change Diagnosis of problem and points of resistance Evaluation Selection of methods & implementation Consideration of alternatives Spring 2007 Organization Change and Development

Forces Driving Change: Internal and External Technology The Economy Competition Workforce Global Events Social Trends Spring 2007 Organization Change and Development

Attitude Toward Change Desirable Accept change as inevitable Proactive Not Desirable Feel threatened by change Reactive Spring 2007 Organization Change and Development

Organization Change and Development Objects of Change Structure Physical Setting Technology People Culture Spring 2007 Organization Change and Development

Resistance to Change - Individual Group Inertia Selective Information Processing Force of Habit Individual Six sources of organizational resistance have been identified. • Group Inertia. Even if individuals want to change, group norms can constrain them. • Structural Inertia. Organizations have built-in stability mechanisms: for instance, selection procedures, training processes, job descriptions, and rules. When an organization faces change, structural inertia acts as a counterbalance to sustain stability. • Limited Focus of Change. Organizations consist of interdependent subsystems, so one cannot be changed without affecting the others. The larger system, therefore, can nullify limited subsystem changes. • Threat to Expertise. The expertise of specialized groups may be threatened by organizational change. • Threat to Established Power Relationships. Any redistribution of decision-making authority can threaten established power relationships within the organization. • Threat to Established Resource Allocations. Those that benefit the most from the current allocation of resources are often the most threatened by changes that may affect future allocations. Need for Security Fear of the Unknown Economic Factors Spring 2007 Organization Change and Development

Resistance to Change - Group Organizational Threat to Expertise Limited Focus of Change Threat to Existing Allocations Relationships Structural Inertia Group Inertia Six sources of organizational resistance have been identified. • Group Inertia. Even if individuals want to change, group norms can constrain them. • Structural Inertia. Organizations have built-in stability mechanisms: for instance, selection procedures, training processes, job descriptions, and rules. When an organization faces change, structural inertia acts as a counterbalance to sustain stability. • Limited Focus of Change. Organizations consist of interdependent subsystems, so one cannot be changed without affecting the others. The larger system, therefore, can nullify limited subsystem changes. • Threat to Expertise. The expertise of specialized groups may be threatened by organizational change. • Threat to Established Power Relationships. Any redistribution of decision-making authority can threaten established power relationships within the organization. • Threat to Established Resource Allocations. Those that benefit the most from the current allocation of resources are often the most threatened by changes that may affect future allocations. Spring 2007 Organization Change and Development

Overcoming Resistance Education and communication Negotiation Communication Facilitation and support Coercion Manipulation and cooptation Spring 2007 Organization Change and Development

Organizational Change Unfreezing Changing Refreezing Kurt Lewin asserts that successful change requires unfreezing the status quo, changing to a new state, then refreezing the new change to make it permanent. Moving from the status quo (equilibrium) can be achieved in three ways: 1. The driving forces, which direct behavior away from the status quo, can be increased. 2. The restraining forces, which hinder movement away from the status quo, can be increased. 3. The two approaches can be combined. Lewin’s Three-Step Process Spring 2007 Organization Change and Development

Unfreezing the Status Quo Desired State Restraining Forces Status Quo The status quo can be considered an equilibrium state. To move from a state of equilibrium (to overcome individual and organizational resistance), unfreezing must occur. It can be done in three ways: 1. The driving forces, which direct behavior away from the status quo, can be increased. 2. The restraining forces, which hinder movement from the existing equilibrium, can be decreased. 3. A third alternative is combining the first two approaches. Once unfreezing has been accomplished, the change can be implemented. But merely introducing change does not ensure that it will take hold. The new situation must be refrozen. The objective of refreezing is to stabilize the new situation by balancing the driving and restraining forces. Unless this is done, employees will revert to the previous state of equilibrium. Driving Forces Time Spring 2007 Organization Change and Development

OD Tools and Interventions Survey and survey feedback Team building Diversity training Leadership development Organization restructuring Job redesign Adoption of new technologies Intergroup Development. This technique can change attitudes, stereotypes, and perceptions that groups have of each other. One method emphasizes problem solving. Once problems have been identified, team members can move to the integration phase of working together to develop solutions to improve intergroup relations. Process Consultation. An outside consultant helps a client to perceive, understand, and act upon various processes in the workplace: such as work flow, informal relationships, and formal communication channels. Sensitivity Training. This method uses unstructured group interaction to change behavior. Members meet in an “open” environment to discuss their interactive processes and themselves. The discussion is loosely directed by a behavioral scientist. The group is process oriented, and individuals learn by observing and participating rather than being told. Survey Feedback. Management can use the survey feedback approach to assess the attitudes of organizational members in order to identify and address the discrepancies among their perceptions. Team Building. The following team building activities promote trust and openness between team members: goal setting, interpersonal development, role analysis, and team process analysis. Spring 2007 Organization Change and Development

Organization Change and Development Change and Culture Is change possible? How long will it take? Does culture influence resistance? Does culture influence implementation? Does culture influence idea champions? Spring 2007 Organization Change and Development