 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione C H A P T E R 17 Organisational change and development

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 2 Chapter learning objectives 1.Identify four forces for change in the business environment. 2.Describe the elements of Lewin’s force field analysis model. 3.Outline six reasons why people resist organisational change. 4.Discuss six strategies to minimise resistance to change. 5.Outline the role of change agents. 6.Define organisation development. 7.Discuss three things consultants need to determine in a client relationship. 8.Explain how appreciative inquiry differs from the more traditional approach to organisation development. 9.Discuss four ethical issues in organisation development.

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 3 Courtesy of Centrelink Organisational change at Centrelink Centrelink is transforming several government departments into a centre of excellence for customer service through feedback measures and special training for employees.

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 4 Some external forces for change Informationtechnology Globalisation & competition Demography  Easier information transfer  Facilitates global structures  Requires new competencies and expectations  Facilitates telecommuting; new employment relationships  More emphasis on knowledge management

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 5 Some external forces for change Informationtechnology Globalisation & competition Demography  Global competition  Technology makes it easier to compete quickly  Results in restructuring, outsourcing, mergers  produces many employment changes

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 6 Some external forces for change Informationtechnology Globalisation & competition Demography  More educated workforce  want more involvement; interesting work  Younger generation  less intimidated by status  want a more balanced work life  Cultural changes  more individualism in traditionally collectivist countries

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 7 Desired conditions Current conditions Before change After change Driving forces Restraining forces Force field analysis During change Driving forces Restraining forces Driving forces Restraining forces

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 8 Resistance to change at BP Norge Employees initially resisted self- directed work teams (SDWTs) at BP Norge’s North Sea drilling rigs. ‘We already have teams!’ ‘SDWTs don’t work on rigs!’ ‘This creates more work  we want higher pay!’ ‘I don’t know how to work in teams.’ ‘SDWTs will threaten my job as a supervisor!’ © AP/ Wide World

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 9 Forces for change Resistance to change Direct costs Saving face Fear of the unknown Breaking routines Incongruent systems Incongruent team dynamics

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 10 Creating an urgency for change  Need to motivate employees to change  Most difficult when organisation is doing well  Must be real, not contrived  Customer-driven change  adverse consequences for firm  human element energises employees

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 11 Reducing restraining forces at Unilever Gary Calveley (right) brought in team coaches to train employees throughout the process of changing Unilever’s Elida Faberge factory into Europe’s best factory. A theatrical production helped to communicate the changes that Calveley was trying to achieve through coaching. © Dean Smith/The Camera Crew

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 12 Minimisingresistance to change Communication Training Employeeinvolvement Stressmanagement Negotiation Coercion Minimising resistance to change

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 13 Refreezing the desired conditions Creating organisational systems and team dynamics to reinforce desired changes  alter rewards to reinforce new behaviours  new information systems guide new behaviours  recalibrate and introduce feedback systems to focus on new priorities

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 14 Mary Gordon: change agent Mary Gordon is changing Ignite, the Auckland-based architect and interior design firm (formerly ASA Crone) through her leadership and a new strategic vision. © P. Doyle/Sunday Star-Times

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 15 Strategic vision and change agents  Strategic vision and change  need vision of desired future state  minimises employee fear of the unknown  clarifies role perceptions  Change agents  possess knowledge and power to facilitate the change effort  usually internal change champion  need to be transformational leaders © P. Doyle/ Sunday Star-Times

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 16 Conditions for diffusing change  Successful pilot study  Favourable publicity  Top management support  Labour union involvement  Diffusion strategy described well  Pilot program people moved around

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 17 Organisation development defined A planned system-wide effort, managed from the top with the assistance of a change agent, which uses behavioural science knowledge to improve organisational effectiveness.

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 18 Establishclient-consultantrelations Disengageconsultant’sservices Action research process Diagnose need for change Introduce change Evaluate/ stabilise change

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 19 Parallel learning structures at Shell Shell applied a parallel learning structure to create a more marketing-oriented culture. A cross-section of employees from each country formed teams to develop ways to improve sales in their country. © John Thoeming

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 20 Organisation Parallel learning structure Parallel learning structures

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 21 What is appreciative inquiry?  Directs the group’s attention away from its own problems and focuses participants on the group’s potential and positive elements  Reframes relationships around the positive rather than being problem oriented

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 22 Discovery Discovering the best of ‘what is’ Dreaming Forming ideas about ‘what might be’ Designing Engaging in dialogue about ‘what should be’ Delivering Developing objectives about ‘what will be’ Appreciative inquiry process

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 23 Organisation development concerns  Cross-cultural concerns  linear and open conflict assumptions different from values in some cultures  Ethical concerns  management power  employee privacy rights  employee self-esteem  consultant’s role

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione 24 Overview of the next chapter  Types of psychological contract  Trends in employability and casual work  Stages of organisational socialisation  Holland’s theory of occupational choice  Lateral and boundaryless career development  Strategies to assist personal career development

 2003 McGraw-Hill Australia Pty Ltd PPTs t/a Organisational Behaviour on the Pacific Rim by McShane and Travaglione C H A P T E R 17 Organisational change and development