Organizational Change: Two Metaphors Calm Waters (Incremental, Evolutionary)Calm Waters (Incremental, Evolutionary) White Water Rapids (Radical, Revolutionary)White Water Rapids (Radical, Revolutionary)

Forces for Change External:External: –Customers –Competitors –Technology –Economic –Social –Political –International Internal:Internal: –Financial Problems –Production Inefficiencies –Employee Expectations/ Demands –Management Goals

Resistance to Change UncertaintyUncertainty –Fear of the unknown Self-interestSelf-interest –e.g., Fear poorer job conditions or outcomes Lack of understanding and trustLack of understanding and trust –Don’t believe change necessary Goal ConflictsGoal Conflicts –Interdepartmental –Cultural –Personal

Force Field Analysis of a Decision to Engage in Exercise Forces for Status Quo (Restraining) 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 a physical education class. Forces for Change (Driving) Weight gain Minimally passing treadmill test Feel lethargic, having no energy Family history of cardiovascular disease New, physically demanding job Equilibrium

Lewin’s 3-Step Change Model UnfreezingUnfreezing Motivate Change (strengthen driving and/or weaken restraining forces) Motivate Change (strengthen driving and/or weaken restraining forces) ChangeChange Use Effective Change Method Use Effective Change Method RefreezingRefreezing Solidify the Change Solidify the Change UnfreezingUnfreezing Communication/Education/ Communication/Education/ Stop rewarding old behavior/ Promise rewards for new behavior ChangeChange Participation/Training/ Participation/Training/ Coercion Coercion RefreezingRefreezing Reinforce with Reinforce with Resources/Rewards Resources/Rewards

Types of Changes Technology/Product/ServiceTechnology/Product/Service Strategy/StructureStrategy/Structure People/CulturePeople/Culture (Usually, more than one change at a time)

Technology/Product/Service Change Facilitated by “Ambidextrous” approachFacilitated by “Ambidextrous” approach –looser structure for innovation than for established activities

Technology/Product/Service Change Innovation often requires expertise from several departments simultaneously (e.g., Marketing, R&D, Manufacturing)Innovation often requires expertise from several departments simultaneously (e.g., Marketing, R&D, Manufacturing) “Bottom-Up after Horizontal-Linkage”“Bottom-Up after Horizontal-Linkage” –Horizontal Linkage Model: Specialized departmentsSpecialized departments Horizontal linkagesHorizontal linkages Boundary spanningBoundary spanning

Horizontal Linkage Model

Strategy/Structure Change Mission, General GoalsMission, General Goals Structural Design, Administrative Procedures, Management SystemsStructural Design, Administrative Procedures, Management Systems Usually “top-down”Usually “top-down”

People and Culture Changes TQM - Total Quality ManagementTQM - Total Quality Management OD - Organizational DevelopmentOD - Organizational Development

Organizational Development Use of behavioral science knowledge to promote people/culture changes such as: Skill DevelopmentSkill Development Attitude ChangeAttitude Change EmpowermentEmpowerment Job EnrichmentJob Enrichment TeamworkTeamwork

OD Techniques Individual: Job TrainingJob Training Career PlanningCareer Planning Coaching, CounselingCoaching, CounselingGroup: Sensitivity TrainingSensitivity Training Role PlayingRole Playing Team-buildingTeam-building The following can include large portions and even the Entire Organization: Survey-feedbackSurvey-feedback Intergroup activitiesIntergroup activities Process-consultationProcess-consultation

OD Has Changed Roots go back to late 1940sRoots go back to late 1940s Began as a separate professionBegan as a separate profession Almost died out in the 1970sAlmost died out in the 1970s Reborn in 1980sReborn in 1980s –Jack Welch, GE OD now considered a skill all organizational leaders needOD now considered a skill all organizational leaders need OD practitioners teach leaders to be teachersOD practitioners teach leaders to be teachers

Organizational Development Sub-Categories of OD Consultation Approaches (from text) Action Research Consultants gather data and apply theory to solve problemsAction Research Consultants gather data and apply theory to solve problems Appreciative Inquiry Consultants focus on replicating positive outcomes – to minimize defensiveness and placing blameAppreciative Inquiry Consultants focus on replicating positive outcomes – to minimize defensiveness and placing blame Parallel Learning Structure More dependent on organization members for solutions – Consultants train members to be OD “experts” (somewhat like “quality circles”)Parallel Learning Structure More dependent on organization members for solutions – Consultants train members to be OD “experts” (somewhat like “quality circles”)