4e Nelson/Quick ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Chapter 18 Managing Change

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Outcomes  Identify the major external and internal forces for change in organizations  Describe how different types of change vary in scope  Discuss methods organizations can use to manage resistance to change  Explain Lewin’s organizational change model 2

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Learning Outcomes  Explain how companies determine the need to conduct an organizational development intervention  Discuss the major group-focused techniques for organization development intervention  Discuss the major individual-focused techniques for organization development intervention 3

Identify the major external and internal forces for change in organizations Learning Outcome ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4

Organizational Changes  Planned change: Results from a deliberate decision to alter the organization  Unplanned change: Imposed on the organization and is unforeseen  Responsiveness requires tremendous flexibility and adaptability on the part of organizations ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5

External Forces for Change Globalization Workforce Diversity Technological Change Ethical Behavior ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6

Internal Forces for Change Crisis Changes in Employee Expectation Changes in Work Climate ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7

Describe how different types of change vary in scope Learning Outcome ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 8

The Scope of Change  Incremental: Relatively small scope, such as making small improvements  Strategic: Larger scale, such as organizational restructuring  Transformational: Organization moves to a radically different, and future state  Change Agent: Individual or group that introduces and manages a change in an organization  Can be internal or external 9

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Internal Change Agents Advantages Know past history, political system, and culture Manage carefully as they must live with the results of change Disadvantages Associated with factions within the organization Accused of favoritism Too close to the situation to have an objective view 10

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. External Change Agents Advantages Bring an outsider’s objective view Preferred by employees due to their impartiality Disadvantages Limited knowledge of organization’s history Viewed with suspicion 11

Discuss methods organizations can use to manage resistance to change Learning Outcome ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Resistance to Change Fear of the unknown Fear of loss and failure Disruption of interpersonal relationships Personality conflicts Politics Cultural assumptions and values 13

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Dealing with Resistance to Change Details and rationale of the change should be provided to employees Communication Establishes a feeling of ownership Participation Identify reasons behind resistance Provide counseling through employee assistance plans Empathy and support 14

Explain Lewin’s organizational change model Learning Outcome ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 15

16 Figure Force Field Analysis of a Decision to Engage in Exercise ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16

17 Figure Lewin’s Change Model ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Beyond the Book: Testing Your Tolerance for Ambiguity 18 Read each of the following statements carefully. Then rate each of them in terms of the extent to which you either agree or disagree with the statement using the following scale: Completely Disagree Completely Agree Neither Agree nor Disagree 1. An expert who doesn’t come up with a definite answer probably doesn’t know much 2. I would like to live in a foreign country for a while 3. The sooner we all acquire similar values and ideals, the better 4. A good teacher is one who makes you wonder about your way of looking at things 5. I like parties where I know most of the people more than ones where all or most of the people are complete strangers

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Beyond the Book: Testing Your Tolerance for Ambiguity Teachers or supervisors who hand out vague assignments give a chance for one to show initiative and originality 7. A person who leads an even, regular life in which few surprises or unexpected happenings arise really has a lot to be grateful for 8. Many of our most important decisions are based upon insufficient information. 9. There is really no such thing as a problem that can’t be solved 10. People who fit their lives to a schedule probably miss most of the joy of living. 11. A good job is one where what is to be done and how it is to be done are always clear 12. It is more fun to tackle a complicated problem than to solve a simple one 13. In the long run, it is possible to get more done by tackling small, simple problems rather than large and complicated ones 14. Often the most interesting and stimulating people are those who don’t mind being different and original 15. What we are used to is always preferable to what is unfamiliar

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Beyond the Book: Testing Your Tolerance for Ambiguity 20 Scoring: For even-numbered questions, add the total points. For odd-numbered questions, use reverse scoring and add the total points. (1 becomes 7, 2 becomes 6, etc.) Interpreting Your Results: A score of 15 would indicate perfect ambiguity tolerance, while perfect intolerance would yield a score of 105. Typical scores between 20 and 80 are reported, with means of 45. Tested private-sector managers scored 44.6 ± 8.5, while public- and third-sector managers scored 43 ± 20

Explain how companies determine the need to conduct an organizational development intervention Learning Outcome ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Development (OD)  Systematic approach to organizational improvement  Applies behavioral science theory and research to increase individual and organizational well-being and effectiveness  Structured cycle of diagnosing organizational problems and opportunities and applying expertise to them  Grounded in solid research and theory  Recognizes the reciprocal relationship between individuals and organizations  Goal oriented 22

23 Figure The Organization Development Cycle ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 23

Discuss the major group-focused techniques for organization development intervention Learning Outcome ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 24

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Survey Feedback  Method of intervention whereby employee attitudes are solicited by questionnaire  Anonymous  Group reporting format  No repercussions  Clear purpose  Follow-up 25

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Management by Objectives and Quality Program  Organization-wide intervention technique of joint goal setting between employees and managers  Setting initial objectives  Periodic progress reviews  Problem solving to remove obstacles to goal achievement  Quality Program: Embeds product and service quality excellence into the organizational culture  Raise aspirations about product/service quality 26

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Team Building  Improves the effectiveness of a work group  Seek feedback  Discuss errors  Reflect on successes and failures  Experiment with new ways of performing  Climate of psychological safety 27

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Process Consultation  Helps managers and employers improve the processes that are used in organizations  Used in combination with other OD interventions  Organization in examining the processes of the organization and refining them 28

Discuss the major individual-focused techniques for organization development intervention Learning Outcome ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 29

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Skills Training  Increasing the job knowledge, skills, and abilities that are necessary to do a job effectively  Accomplished either in formal classroom settings or on the job  Should be integrated into OD 30

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Leadership Training & Development  Techniques that are designed to enhance individual’s leadership skills  Action learning  Simulation  Business games  Role-playing  Case studies 31

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Executive Coaching  Technique for enhancing managers’ ability to perform by pairing them with a coach in a partnership  Verbal information  Intellectual skills  Attitudes  Development 32

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Role Negotiation  Technique whereby individuals meet and clarify their psychological contract  Outcome  Better understanding of what each can be expected to give and receive  Less ambiguity 33

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Job Redesign  Alters jobs to improve the fit between individual skills and the demands of the job  Realign task demands and individual capabilities  Redesign jobs to fit new techniques or organization structures 34

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Health Promotion Programs Focus on helping employees manage their stress and prevent health problems 35

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Career Planning 36  Matches individual’s career aspirations with organizational opportunities  Benefits both the organization and its individuals  Identifies and nurtures talented employees for potential promotion

©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Beyond the Book: When the Perks are Gone 37 Because of the global recession, many organizations are removing organizational perks and benefits in order to save money No more free lunches, no co-pay health insurance, subsidized child care, etc In light of these changes, what can be done to make sure employees stay content and motivated? Remember that perks are not essential to the job; i.e., lose the sense of entitlement Be fair in cutbacks Continue gathering with co-workers, even at your own expense You are part of the solution – ask yourself “What does my work offer that I can be happy about?”

38 1.Who is the target of change in this scene? 2. What are the forces for change? Are the forces for change internal or external to the change target? 3. Does the scene show the role of leadership in organizational change? If it does, who is the leader? Field of Dreams ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 38

39 1.Describe the type of change that Holden’s leaders are managing 2.What resistance is Holden encountering, especially as the company seeks to design and manufacture highly innovative outerwear garments? 3.Using Kurt Lewin’s change model, give a force field analysis for Holden’s challenges in delivering innovative products. Suggest how the company might overcome resistance and foster permanent change Holden Outerwear ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 39