1. Organizational Change and Development15
C H A P T E R
F I F T E E N
Organizational Change and Development

2. Why do organizations change?
Unplanned Change
Managers don’t expect it
Can lead to chaotic, uncontrolled periods of change
Planned Change
Systematic efforts by managers to move organizations to a new state
Design, technology, tasks, people, information systems, etc.

3. External Forces for Change
Computer technology
law of telecosm
effect on knowledge, competition, employment relations
Globalization and local competition
effect on restructuring, outsourcing
mergers
Demography
diversity
emerging expectations
© Corel Corp. With permission.

4. Internal Forces For Change
Turnover of leaders
Need for profits
_______________
_________________
________________

5. Types of Planned Change
Evolutionary Change
Incremental adaptation to the external environment
Series of phases
Need for change
Unfreeze
Change (or move)
Refreeze

6. Types of Change (cont) Revolutionary Change
Unfolds over long periods of time
Equilibrium periods: organization moves steadily toward its mission and goals
Revolutionary periods: Feverish change that affects the overall strategy of the firm
Deep structures are affected like culture, design, processes, and relationships with the environment

7. Resistance to change
People and Organizations resist changes from both internal and external sources and planned and unplanned change
Manager’s reaction
See resistance as a problem
Treat it coercively
Added resistance
See resistance as a signal
People need more information, or better treatment
Gather insights from people

8. Slide 18.6 Sources of Resistance to Change
Individual Resistance
* Perception
* Personality
* Habit
* Threats to power
and influence
* Fear of the unknown
* Economic reasons
Organizational Resistance
* Organization design
* Organizational culture
* Resource limitations
* Fixed investments
* Interorganizational
agreements
Resistance to Change

9. Slide 18.5 Employee Readiness for Change
Perceived Personal Risk from Change
Low
High
High
High readiness
for change
Moderate to
indeterminant
readiness for change
Level of Dissatisfaction
with the Current
Situation
Moderate to
indeterminant
readiness for change
Low readiness
for change
Low
Source: Adapted from Zeira, Y., and Avedisian, J. Organizational planned change: Assessing the
chances for success. Organizational Dynamics, Spring 1989, 37.

10. Resistance to Change Direct Costs Saving Face Fear of the Unknown
Breaking Routines
Incongruent Systems
Incongruent Team Dynamics
Forces for
Change

11. Slide 18.4 A Systems Model of Change
People
Culture
Task
Technology
Design
Strategy

12. Slide 18.7 Force Field Analysis
Driving forces
Resisting forces
High performance goals
Group norms for output
New equipment
Familiarity with
present equipment
Complacency
Competition
Employees with
new skills
Need to learn new skills
Desire for increased
influence and rewards
Fear of reduced
influence and rewards
Current level
of group
performance
Desired level
of group
performance
Source: Adapted from Zand, D.E. Force field analysis. In N. Nicholson (ed.), Blackwell Encyclopedic
Dictionary of Organizational Behavior. Oxford, England: Blackwell, 1995, 181.

13. Slide 18.3 Initiatives Contributing to Effective Change Management
Motivating Change
Creating a Vision
Effective Change
Management
Developing Political Support
Managing the Transition
Sustaining Momentum
Source: Adapted with permission from Cummings, J.G., and Worley, C.G. Organization Development
and Change, 6th ed. Cincinnati: South-Western, 1997, 154.

14. Successfully Diffusing Change
Successful pilot study
Favorable publicity
Top management support
Labor union involvement
Diffusion strategy described well
Pilot program people moved
Courtesy of Roberts Express

15. Customer-Driven Change at Continental Airlines
Continental Airlines executives created an urgency to change by listening to customers and communicating their concerns to employees. Customer-driven change motivates employees to engage in continuous change.
Courtesy of Continental Airlines

16. Minimizing Resistance to Change
Communication
Minimizing
Resistance
to Change
Coercion
Training
Negotiation
Employee
Involvement
Stress
Management

17. Refreezing the Desired Conditions
Creating organizational systems and team dynamics to reinforce desired changes
alter rewards to reinforce new behaviors
new information systems guide new behaviors
recalibrate and introduce feedback systems to focus on new priorities

18. Organization Development
A planned system wide effort, managed from the top with the assistance of a change agent, that uses behavioral science knowledge to improve organizational effectiveness.

19. Action Research Process
Establish
Client-
Consultant
Relations
Diagnose
Need for
Change
Introduce
Change
Evaluate/
Stabilize
change
Disengage
Consultant’s
Services

20. Appreciative Inquiry Process
Discovery
Discovering the best of “what is”
Dreaming
Forming ideas about “what might be”
Designing
Engaging in dialogue about “what should be”
Delivering
Developing objectives about “what will be”

21. Parallel Structures
Parallel
Structure
Organization

22. Organization Development Concerns
Cross-Cultural Concerns
Linear and open conflict assumptions different from values in some cultures
Ethical Concerns
Management power
Employee privacy rights
Employee self-esteem
Consultant’s role