Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Managing Change Chapter 18 Organizational Behavior Nelson & Quick 6th edition

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Organizational Change Managers must be prepared to handle both Planned Change - Planned Change - change resulting from a deliberate decision to alter the organization UnplannedChange - Unplanned Change - change that is imposed on the organization and is often unforeseen Photos courtesy of Clips Online, © 2008 Microsoft Corporation

ExternalForcesforChange External Forces for Change Globalization Workforce Diversity Technological Change Ethical Behavior Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Majority of new workers will be female Workforce will grow in diversity - more Hispanics & African-Americans Workforce is aging - less young workers, more middle-aged Organizations must rethink the most efficient ways to Use resources Disseminate/gather information Develop people Globalization Structural Change Mental Change Workforce Diversity Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved

Ethical Behavior Technological Change Customers Society Environment Other Organizations Ethical Treatment Changes in work relationships Changes in organizational structure Changes in Technology Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved

InternalForcesforChange Internal Forces for Change Declining Effectiveness Changing Employee Expectations Company Crisis Changing Work Climate Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved ScopeofChange Scope of Change IncrementalChange - Incremental Change - change of a relatively small scope, such as making small improvements Strategic Change - Strategic Change - change of a larger scale, such as organizational restructuring Transformational Change - Transformational Change - change in which the organization moves to a radically different, and sometimes unknown, future state

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved TheChangeAgent’sRole The Change Agent’s Role Change Agent - Change Agent - the individual or group who undertakes the task of introducing and managing a change in an organization Effective change leaders build relationships –Within the leadership team –Between the team and organizational members –Between the team and key environmental players

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved InternalChangeAgents Internal Change Agents Advantages Know past history, political system, and culture Must live with results of change so will move carefully May be associated with factions, accused of favoritism May be too close to the situation to be objective Disadvantages

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved ExternalChangeAgents External Change Agents To succeed, they must be perceived as trustworthy, be experts with proven track records, be similar to those they are working with Advantages Outsider’s objective view Impartiality Disadvantages Limited knowledge of organization’s history May be viewed with suspicion

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved ResistancetoChange Resistance to Change Fear of the unknown Fear of loss Fear of failure Disruption of interpersonal relationships Personality conflicts Politics Cultural assumptions and values Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Dealingwith ResistancetoChange Dealing with Resistance to Change Communication –details –rationale Participation in the process –ownership –commitment Empathy and support Photos courtesy of Clips Online, © 2008 Microsoft Corporation

Reactions to Change & Managerial Interventions Disengagement psychological withdrawal from changeDisidentification feeling that one’s identity is being Disenchantment threatened by change Disenchantment feeling negativity or anger toward a changeDisorientation feelings of loss and confusion due to change Withdrawal Sadness, worry Anger Confusion Confront, identify Explore, transfer Neutralize, acknowledge Explain, plan Table adapted from H. Woodward and S. Buchholz. Aftershock: Helping People through corporate Change, p. 15. Copyright © 1987 John Wiley & Sons, Inc. Reprinted by Permission of John Wiley & Sons, Inc. Expression ManagerialIntervention Reaction Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved

ForceFieldAnalysisofDecision toEngageinExercise Force Field Analysis of Decision to Engage in Exercise Forces for change Weight gain Minimally passing treadmill test Feel lethargic; have no energy Family history of cardiovascular disease New, physically demanding job Forces for status quo Lack of time No exercise facility at work Spouse/partner hates to exercise No interest in physical activity or sports Made a grade of D in physical education class Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved EQUILIBRIUM

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Lewin’sThreeStepChangeModel Lewin’s Three Step Change Model 1.Unfreezing - 1. Unfreezing - involves encouraging individuals to discard old behaviors by shaking up the equilibrium state that maintains the status quo 2. Moving - 2. Moving - new attitudes, values, and behaviors are substituted for old ones 3. Refreezing - 3. Refreezing - involves the establishment of new attitudes, values, and behaviors as the new status quo

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved ApplyingLewin’sModelto theOrganization Applying Lewin’s Model to the Organization Unfreezing: the organization eliminates rewards for current behavior Moving: the organization initiates new options and explains their rationale Refreezing: organizational culture & formal reward systems encourage the new behaviors Reducing forces For status quo Developing new attitudes, values, and behaviors Reinforcing new attitudes, values, and behaviors

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved OrganizationalDevelopment (OD) Organizational Development (OD) Organizational Development (OD) - Organizational Development (OD) - a systematic approach to organizational improvement that applies behavioral science theory and research in order to increase individual and organizational well-being and effectiveness

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Diagnosis&NeedsAnalysis Diagnosis & Needs Analysis Ask What are the forces for change? What are the forces preserving the status quo? What are the most likely sources of resistance? What are the goals to be accomplished by change? Diagnosis and needs analysis Intervention Follow-up

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved OD Intervention Methods: OD Intervention Methods: Organizational/Group Techniques Survey Feedback - Survey Feedback - a widely used method of intervention whereby employee attitudes are solicited by questionnaire Anonymous Group reporting format No repercussions Clear purpose Follow-up

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved an organization- wide intervention technique of joint goal setting between employees and managers Initial objectives Periodic progress reviews Problem solving to remove obstacles to goal achievement OD Intervention Methods: OD Intervention Methods: Organizational/Group Techniques Management by Objective -

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Quality Program - a program that embeds product and service quality excellence into the organizational culture Raise aspirations about product/service quality Embed product/service quality excellence in the organizational culture OD Intervention Methods: OD Intervention Methods: Organizational/Group Techniques

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Team Building - an intervention designed to improve the effectiveness of a work group Seek feedback Discuss errors Reflect on successes & failures Experiment with new ways of performing Climate of psychological safety OD Intervention Methods: OD Intervention Methods: Organizational/Group Techniques

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved an OD method that helps managers and employers improve the processes that are used in organizations Outside consultant: Enters organization Defines the relationship Chooses an approach Gathers data Diagnoses problem Intervenes Leaves organization OD Intervention Methods: OD Intervention Methods: Organizational/Group Techniques Process Consultation -

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved OD Intervention Methods: OD Intervention Methods: Individual-Focused Techniques Skills Training - Skills Training - increasing the job knowledge, skills, and abilities that are necessary to do a job effectively In formal classroom settings On the job (Continual updating)

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved OD Intervention Methods: OD Intervention Methods: Individual-Focused Techniques Leadership training and development - a variety of techniques that are designed to enhance individual’s leadership skills Action learning Simulation Business games Role-playing Case studies

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved OD Intervention Methods: OD Intervention Methods: Individual-Focused Techniques a host of techniques for enhancing managers’ skills in an organization Verbal information Intellectual skills Attitudes Development Executive coaching -

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved OD Intervention Methods: OD Intervention Methods: Individual-Focused Techniques Role Negotiation - Role Negotiation - a technique whereby individuals meet and clarify their psychological contract Outcomes Better understanding of what each can be expected to give & receive Less ambiguity

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Job Redesign - an OD intervention method that 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 OD Intervention Methods: OD Intervention Methods: Individual-Focused Techniques

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Health Promotion Programs Career Planning Ex. Stress reduction education, employee assistance Match individual’s career aspirations with organizational opportunities OD Intervention Methods: OD Intervention Methods: Individual-Focused Techniques

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved EthicalConsiderationsin OrganizationalDevelopment Ethical Considerations in Organizational Development Selection of the OD method Voluntary participation Confidentiality Potential for manipulation by the change agent

Copyright ©2009 South-Western, a division of Cengage Learning All rights reserved Chapter 18: Reflect & Discuss Field of Dreams Video Clip Field of Dreams Video Clip What to Watch for and Ask Yourself Who is the target of change in this scene? What are the forces for change? Are the forces for change internal or external to the change target? Does the scene show the role of leadership in organizational change? If it does, who is the leader? What does this person do to get desired change?