18-1©2005 Prentice Hall 18: Organizational Change and Development Chapter 18: Organizational Change and Development Understanding And Managing Organizational Behavior 4th Edition JENNIFER GEORGE & GARETH JONES

18-2 ©2005 Prentice Hall Chapter Objectives  Appreciate the forces that lead to organization change and the various impediments to change that arise during the change process  Distinguish between evolutionary and revolutionary change and identify the main types of each of these kinds of change processes

18-3 ©2005 Prentice Hall Chapter Objectives  Discuss the main steps involved in action research and identify the main issues that must be addressed to manage the change process effectively  Understand the process of organization development and how to use various change techniques to facilitate the change process

18-4 ©2005 Prentice Hall Opening Case: Toyota is a Master at Managing Change  Why is change important at Toyota?

18-5 ©2005 Prentice Hall What is Organizational Change?  Movement of an organization away from its present state and toward some desired future state to increase its effectiveness –Reengineering –TQM –Innovation –Restructuring

18-6 ©2005 Prentice Hall Table 18.1 Forces for and Impediments to Change Forces for Change  Competitive  Economic and political  Global  Demographic and social  Ethical Impediments  Power and conflict  Differences in functional orientation  Mechanistic structure  Organizational culture  Group norms  Uncertainty/ insecurity  Habit

18-7 ©2005 Prentice Hall Lewin’s Force-Field Theory of Change  Forces resist change  Forces push change  Performance levels –P1 = Balance –P2 Increase forces for change, reduce forces for change, or both

18-8 ©2005 Prentice Hall  Evolutionary Change: Change that is gradual, incremental, and narrowly focused.  Revolutionary Change: Change that is rapid, dramatic, and broadly focused. Categories of Change

18-9 ©2005 Prentice Hall Instruments of Evolutionary Change  Socio-technical systems theory  Total quality management

18-10 ©2005 Prentice Hall Instruments of Revolutionary Change  Reengineering  Restructuring  Innovation

18-11 ©2005 Prentice Hall Figure 18.2 Lewin’s Three Step Change Process  Unfreeze  Change  Refreeze

18-12 ©2005 Prentice Hall A strategy for generating and acquiring knowledge that managers can use to define an organization’s desired future state and to plan a change program that allows the organization to reach that state Managing Change: Action Research

18-13 ©2005 Prentice Hall Figure 18.3 Steps in Action Research  Diagnosing organization  Determining desired state  Implementing action  Evaluating action  Institutionalizing action research

18-14 ©2005 Prentice Hall Implementing Action  Identify possible impediments to change  Decide who will be responsible –External change agents –Internal change agents  Decide specific change strategy

18-15 ©2005 Prentice Hall Change Agents External  Outside consultants who are experts at managing change Internal  Managers from within the organization who are knowledgeable about the situation

18-16 ©2005 Prentice Hall Types of Change Top-down  Implemented by managers at a high- level in organization  Result of radical restructuring and reengineering  More resistance Bottom-up  Implemented by employees at low levels and rises over time  All levels involved in change process  Less resistance

18-17 ©2005 Prentice Hall A series of techniques and methods that managers can use in their action research program to increase the adaptability of their organization. Organization Development

18-18 ©2005 Prentice Hall OD Techniques to Deal with Resistance to Change  Education and Communication  Participation and Empowerment  Facilitation  Bargaining and Negotiation  Manipulation  Coercion

18-19 ©2005 Prentice Hall OD Techniques to Promote Change  Counseling  Sensitivity Training  Process Consultation  Team Building  Intergroup Training  Total Organizational Interventions