Organizational Behavior BUS-542 Instructor: Erlan Bakiev, Ph.D. 1-1

Chapter 16 Organizational Change 16-2 Essentials of Organizational Behavior, 11/e Stephen P. Robbins & Timothy A. Judge

After studying this chapter, you should be able to: Identify forces that act as stimulants to change. 2. List the sources for resistance to change. 3. Compare the four main approaches to managing organizational change. 4. Demonstrate two ways to create a culture of change. 5. Describe the causes and consequences of work stress. 6. Explain global differences in organizational change and stress.

Forces that Stimulate Change 16-4

Sources of Resistance to Change  Habit  Security  Economic Factors  Fear of the Unknown  Selective Information Processing  Structural Inertia  Limited Focus of Change  Group Inertia  Threat to Expertise  Threat to Established Power Relationships and Resource Allocations 16-5 Individual Organizational People tend to resist change, even in the face of evidence of its benefits.

Overcoming Resistance to Change Education and Communication 2. Participation 3. Building Support and Commitment 4. Implementing Changes Fairly 5. Cooptation 6. Selecting People who Accept Change 7. Coercion

Approaches to Managing Organizational Change 16-7  Lewin’s Three-Step Model of Change  Kotter’s Eight-Step Model of the Change Process  Organizational Development

Lewin’s Three-Step Model 16-8 Unfreezing can be achieved by:  Increase driving forces that direct behavior away from the status quo  Decrease restraining forces that hinder movement from the existing equilibrium  Combine the two above approaches

Kotter’s Eight-Step Plan 1. Create urgency 2. Form coalition 3. Create new vision 4. Communicate the vision 5. Empower others 6. Reward “wins” 7. Consolidate improvements 8. Reinforce the change 16-9 Unfreezing Movement Refreezing

Organizational Development A collection of planned-change interventions that seek to improve organizational effectiveness and employee well-being Based on humanistic-democratic values:  Respect for People  Trust and Support  Power Equalization  Confrontation  Participation

OD Interventions  Sensitivity Training  Changing behavior through unstructured group interaction  Survey Feedback  Gathering data and acting on it  Process Consultation  Using outside consultants  Appreciative Inquiry  Discovering what the organization does right

Stimulating a Culture of Innovation  Innovation is a new idea applied to initiating or improving a product, process or service.  Sources of innovation included: structure, culture, human resources

Idea Champions Managers who actively and enthusiastically promote an idea, build support, overcome resistance, and ensure that innovation is implemented  Have high self-confidence, persistence, energy, and acceptance of risk  Use inspiration and vision to gain commitment  Have decision-making discretion

Work Stress Dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what is desired and for which the outcome is perceived to be both uncertain and important  Types:  Challenge Stress – may improve performance  Hindrance Stress – comes from obstacles to achieving goals – mostly negative

Managing Stress  Employee Selection  Organizational Communication  Goal-setting Programs  Job Redesign  Counseling  Time Management  Physical Activity Organizational Personal Managers have no direct control on personal stress and there are ethical considerations about intruding into employees’ personal lives

Global Implications Is managing change culture bound? 1. Do people believe change is possible? Yes, when people believe they control their environment 2. If it’s possible, how long will it take to bring about? Short-term focus cultures want fast results 3. Is resistance to change greater in some cultures than in others? Yes, traditional cultures resist change

Global Implications Continued Does culture influence how change efforts will be implemented? Yes, high power distance cultures are autocratic 5. Do successful idea champions do things differently in different cultures? Yes, idea champions modified techniques based on culture Does stress vary across cultures?  The conditions that lead to stress may vary, but the personality effects, outcomes, and reduction methods do not

Implications for Managers  The need for change encompasses almost aspects of OB  The real world is turbulent, requiring organizations and their members to undergo dynamic change if they are to perform at competitive levels  Managers must continually act as change agents

Keep in Mind…  Organizations and their members tend to resist change  It is unlikely that anyone approach to managing change we best in every situation  Changes often stressful, but not all stress is harmful

Summary Identified forces that act as stimulants to change. 2. Listed the sources for resistance to change. 3. Compared the three main approaches to managing organizational change. 4. Described the causes and consequences of work stress. 5. Described characteristics of a learning organization. 6. Explained global differences in organizational change and stress.