1. Chapter 18 Nelson & Quick
Managing Change

2. Organizational Change
Planned Change - change resulting from a deliberate decision to alter the organization
Unplanned Change - change that is imposed on the organization and is often unforeseen
Managers must be
prepared to handle both 2

3. External Forces for Change
Workforce
Diversity
Globalization
Changing
Technology
Ethical
Behavior 3

4. Globalization Workforce Diversity Organizations must rethink
the most efficient ways to
Use resources
Disseminate/gather information
Develop people
Majority of
new workers
will be female
Workforce will
grow in diversity -
more Hispanics &
African-Americans
Structural
Change
&
Workforce is aging -
less young workers, more
middle-aged
Mental
Change
Workforce
Diversity 4

5. Ethical Behavior Changing Technology Other Organizations Customers
Treatment
Changes
in work
relationships
Environment
With its ability to reach across boundaries and give voice to the many, the Internet changes the ground rules for everything from commerce to government. Visit digitrends.net to read the latest headlines on emerging technologies, What are the latest newsworthy events in the field of digital technology, and what are the implications for change in business and society?
Society
Technological
Change
Changes in
organizational
structure
Changing
Technology 5

6. Internal Forces for Change
Company
Crisis
Declining
Effectiveness
Changing
Employee
Expectations
Changing
Work Climate 6

7. Scope of Change
Incremental Change - change of a relatively small scope, such as making small improvements
Strategic Change - change of a larger scale, such as organizational restructuring
Transformational Change - change in which the organization moves to a radically different, and sometimes unknown, future state 7

8. The Change Agent’s Role
Change Agent - the individual or group who undertakes the task of introducing and managing a change in an organization
The change agent can be internal or external 8

9. Internal Change Agents
Advantages
know past history, political system, and culture
must live with results of change so will move carefully
Disadvantages
may be associated with factions, accused of favoritism
may be too close to the situation to be objective 9

10. External Change Agents
Advantages
outsider’s objective view
impartiality
Disadvantages
limited knowledge of organization’s history
may be viewed with suspicion
To succeed, they must be perceived as trustworthy,
be experts with proven track records, be similar to
those they are working with 10

11. Resistance to Change Fear of the unknown Fear of loss Fear of failure
Disruption of interpersonal relationships
Personality conflicts
Politics
Cultural assumptions and values 11

12. Dealing with Resistance to Change
Communication
details
rationale
Participation in the process
ownership
commitment
Empathy and support 12

13. Reactions to Change & Managerial Interventions
Disengagement
psychological withdrawal from change
Disidentification
feeling that one’s
identity is being
threatened by change Disenchantment
feeling negativity or
anger toward a change
Disorientation
feelings of loss and confusion due to change
Expression
Withdrawal
Sadness, worry
Anger
Confusion
Managerial Intervention
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. 13

14. Lewin’s Three Step Change Model
1. Unfreezing - involves encouraging individuals to discard old behaviors by shaking up the equilibrium state that maintains the status quo
2. Moving - new attitudes, values, and behaviors are substituted for old ones
3. Refreezing - involves the establishment of new attitudes, values, and behaviors as the new status quo 14

15. 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
Equilibrium 15

16. 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 16

17. 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 17

18. Diagnosis & Needs Analysis
Diagnosis and
needs analysis
Intervention
Follow-up
The Group for Organizational Effectiveness helps clients facilitate change and manage knowledge. The group’s work with organizations such as NASA, Pfizer, and Johnson & Johnson has earned it a reputation as a leader in change management. What services are listed at the site, and how does the group address issues of needs analysis and evaluation for its clients?
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? 18

19. OD Intervention Methods: Organizational/Group Techniques
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 19

20. OD Intervention Methods: Organizational/Group Techniques
Management by Objective 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 19

21. OD Intervention Methods: Organizational/Group Techniques
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 20

22. OD Intervention Methods: Organizational/Group Techniques
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
The American Quality Management Mall is a Web portal for management professionals, featuring discussion groups, publications, job opportunities, and links. Visit the site to learn more about quality topics such as benchmarking, total quality management, team building, and reengineering. 20

23. OD Intervention Methods: Organizational/Group Techniques
Large Group Interventions - events that bring all of the key members of a group together in one room for an extended period of time
Outside consultants determine participants & goals
Participants=critical mass supporting change 21

24. OD Intervention Methods: Organizational/Group Techniques
Process Consultation - 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 21

25. OD Intervention Methods: Individual-Focused Techniques
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) 22

26. OD Intervention Methods: Individual-Focused Techniques
Sensitivity Training – an intervention designed to help individuals under- stand how their behavior affects others
Outside trainer who
intervenes only to move
the group forward.
Training can:
help employees
understand each other
recognize their own feelings
improve communication 22

27. OD Intervention Methods: Individual-Focused Techniques
Management Development Training - a host of techniques for enhancing managers’ skills in an organization
Verbal information
Intellectual skills
Attitudes
Development 23

28. OD Intervention Methods: Individual-Focused Techniques
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 23

29. OD Intervention Methods: Individual-Focused Techniques
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 24

30. OD Intervention Methods: Individual-Focused Techniques
Health Promotion Programs
Career Planning
Ex. Stress reduction education, employee assistance
Match individual’s career aspirations with organizational opportunities 24

31. Ethical Considerations in Organizational Development
Selection of the OD method
Voluntary participation
Confidentiality
Potential for manipulation by the change agent 25