1. Organization Change and Development
Chapter 19
Organization Change and Development

2. Chapter Learning Objectives
After studying this chapter you should be able to:
Summarize the dominant forces for change in organizations.
Describe the process of planned organization change.
Discuss several approaches to organization development.
Explain resistance to change.
Identify the keys to managing successful organization change and development.
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3. Information Processing and Communication Areas of Pressure for Change
Forces for Change
People
Competition
Technology
Information Processing and Communication
Areas of Pressure for Change
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4. 19.1 Pressures for Organization Change
Category
Examples
Type of Pressure for Change
People
Generation X, Y, Millennials
Global Labor Supplies
Senior citizens
Workforce diversity
Demands for different training, benefits, workplace arrangements, and compensation systems
Technology
Manufacturing in space
Internet
Global design teams
More education and training for workers at all levels, more new products, products move faster to market
Information Processing and Communication
Computer, satellite communications
Global Sourcing
Videoconferencing
Social Networking
Faster reaction times, immediate responses to questions, new products, different office arrangements, telecommuting, marketing, advertising, recruiting on social networking sites
Competition
Global markets
International trade agreements
Emerging nations
Global competition, more competing products with more features and options, lower costs, higher quality
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5. Processes for Planned Organization Change
Lewin’s Process Model
Planned organization change requires a systematic process of movement from one condition to another
Unfreezing
Process by which people become aware of the need for change
Change
Movement from the old way of doing things to a new way
Refreezing
Process of making new behaviors relatively permanent and resistant to further change
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6. 19.1 Lewin’s Process of Organizational Change
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7. Processes for Planned Organization Change (cont’d)
The Continuous Change Process Model
Incorporates the forces for change, a problem-solving process, a change agent, and transition management
Takes a top management perspective
Perceives forces and trends that indicate need for change
Determines alternatives for change
Selects the appropriate alternative
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8. 19.2 Continuous Change Process Model of Organization Change
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9. Processes for Planned Organization Change (cont’d)
The Continuous Change Process Model (cont’d)
Change agent: a person responsible for managing a change effort
Assists management with problem recognition/definition
Can be involved in generating/evaluating potential action plans
Can be from inside or outside of the organization
Implements the change
Measures, evaluates, controls the desired results
Transition management
Process of systematically planning, organizing, and implementing change
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10. Organization Development
Organization Development (OD)
The process of planned change/improvement of the organization through the application of knowledge of the behavioral sciences
System-Wide Organizational Development
Structural Change
Is a comprehensive system-wide rearrangement of task division, authority, reporting relationships
Affects performance appraisal and rewards, decision-making, communication, information-processing systems
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11. Organization Development (cont’d)
Contemporary Approaches to System-Wide OD
Reengineering
Rethinking
Quality of Work Life
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12. 19.3 Walton’s Categorization of Quality-of-Work-Life Programs
Reference: Adapted from Richard E. Walton, “Quality of Work Life: What Is It?” Sloan Management Review, Fall 1973, pp. 11–21, by permission of the publisher. Copyright © 1973 by the Sloan Management Review Association. All rights reserved.
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13. Organization Development (cont’d)
Task and Technological Change
Task redesign
Changing tasks involved in doing the work, the technology, or both
Technological change
Changing how inputs are transformed into outputs
Griffin’s integrated framework for introducing job changes
Nine steps that reflect the complexities of the interfaces between individual jobs and the total organization
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14. 19.2 Integrated Framework for Implementation of Task Redesign in Organizations
Reference: Ricky W. Griffin, Task Design: An Integrative Framework (Glenview, IL: Scott, Foresman, 1982), p Used by permission.
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15. OD: Group and Individual Change
People-Oriented Change Techniques
Training
Management Development
Team Building
Survey Feedback
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16. OD: Group and Individual Change (cont’d)
Training
Purpose:
Improve employees’ current job skills or impart new skills
Methods:
Lecture, discussion, lecture-discussion combination, experiential methods, case studies, films/video tapes
Locations:
Classroom, on and off company property, at a hotel, resort, and conference centers, and on-the-job
Major difficulty:
Transferring learning to the workplace
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17. OD: Group and Individual Change (cont’d)
Management Development Programs
Multifaceted, complex, long-term process with no quick and simple approach:
Organizations should identify carefully and systematically their unique development needs and existing programs
Management development objectives must be compatible with organizational objectives
The utility and value of management development is not proven
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18. OD: Group and Individual Change (cont’d)
To set team goals and priorities
To examine relationships among those doing the work
To analyze and allocate the way work is performed
To examine how a group is working
Team Building Goals
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19. OD: Group and Individual Change (cont’d)
Survey Feedback
Provides information about employees’ beliefs and attitudes
Can assist management with problem-solution diagnosis
Data are returned to employee groups at all organization levels
Data are used by all employees working together in their normal work groups to identify/solve problems
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20. 19.4 The Survey Feedback Process
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21. Resistance to Change The Resistance to Change Paradox
Organizations invite change when change offers competitive advantage
Organizations resist change when change threatens the organization’s structure and control systems
Organizations must balance stability (permanence) with the need to react to external shifts (change)
Resistance can warn of the need to reexamine the need for change
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22. Resistance to Change: Sources of Resistance to Change (Katz and Kahn)
Organizational Sources
Overdetermination
Narrow focus of change
Group inertia
Threatened expertise
Threatened power
Resource allocation changes
Individual Sources
Habit
Security
Economic factors
Fear of the unknown
Lack of awareness
Social factors
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23. 19.3 Organizational and Individual Sources of Resistance
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24. Managing Successful Organization Change and Development
Keys to Managing Change in Organizations
Consider international issues
Take a holistic view
Start small
Secure top management support
Encourage participation by those affected by the change
Foster open communication
Reward those who contribute to change
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25. 19.4 Keys to Managing Successful Organization Change and Development
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26. 19.4 Keys to Managing Successful Organization Change and Development
Impact
Consider global issues.
Keeps in touch with the latest global developments and how change is handled in different cultures
Take a holistic view of the organization.
Helps anticipate the effects of change on the social system and culture
Start small.
Works out details and shows the benefits of the change to those who might resist
Secure top management support.
Gets dominant coalition on the side of change: safeguards structural change, heads off problems of power and control
Encourage participation by those affected by the change.
Minimizes transition problems of control, resistance, and task redefinition
Foster open communication.
Minimizes transition problems of resistance and information and control systems
Reward those who contribute to change.
Minimizes transition problems of resistance and control systems
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27. Organizational Behavior in Action
After reading the chapter:
In the chapter opening case, how does the return of Michael Dell to Dell compare with the return of Howard Schultz to Starbuck’s?
Which pressures for organizational change are likely to increase when economic conditions decline? When they improve?
Which individual source of resistance to change likely causes students to perform poorly in school? How could the resistance be overcome?
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