1. Organizational Behavior Instructor: B. Aliiaskarov, Ph.D.

2. Chapter 16 Organizational Change
Essentials of
Organizational Behavior, 11/e
Stephen P. Robbins & Timothy A. Judge
Chapter 16
Organizational Change

3. After studying this chapter, you should be able to:
Identify forces that act as stimulants to change.
List the sources for resistance to change.
Compare the four main approaches to managing organizational change.
Demonstrate two ways to create a culture of change.
Describe the causes and consequences of work stress.
Explain global differences in organizational change and stress.

4. Forces that Stimulate Change
There are many forces that stimulate change including the nature of the workforce, technology, economic shocks, competition, social trends and world politics. All these things can create change in a workplace.

5. Sources of Resistance to Change
People tend to resist change, even in the face of evidence of its benefits.
Individual
Organizational
Habit
Security
Economic Factors
Fear of the Unknown
Selective Information Processing
Structural Inertia
Limited Focus of Change
Group Inertia
Threat to Expertise
Threat to Established Power Relationships and Resource Allocations
Whenever change is present there is resistance to change. Individuals and groups become comfortable with things that are familiar and change threatens the status quo. There are different ways that change is resisted by employees.
There are many sources of resistance to change as seen in the visual in this slide. It can take the form of individual resistance such as fear of the unknown or security issues or organizational resistance such as threat to expertise, structural inertia or limited focus of change.

6. Overcoming Resistance to Change
Education and Communication
Participation
Building Support and Commitment
Implementing Changes Fairly
Cooptation
Selecting People who Accept Change
Coercion
When managers face resistance to change there are some useful tactics they can utilize to help people overcome it. These tactics include education and communication, getting people to participate in the process and building support and commitment. It can also include being sure to implement the change fairly by applying a consistent and fair process, using manipulation and cooptation to spin the message to gain cooperation or selecting people from the beginning who are more willing to accept change. Finally, a manager can resort to coercion using direct threats and force to make people change. This is not often a good option.

7. Approaches to Managing Organizational Change
Lewin’s Three-Step Model of Change
Kotter’s Eight-Step Model of the Change Process
Organizational Development
There are three main approaches to managing organization change. They are Lewin’s three-step model of change, Kotter’s eight step model of the change process and organizational development.

8. Lewin’s Three-Step Model
Unfreezing can be achieved by:
Increase driving forces that direct behavior away from the status quo
Decrease restraining forces that hinder movement from the existing equilibrium
Combine the two above approaches
Lewin offers a three-step model to help facilitate the change process. He sets forth that change efforts need to “unfreeze” individual resistance and group conformity to help them move forward and then you need to refreeze the changes by balancing driving and restraining forces. This will help to move people through the change process and solidify the desired behaviors/outcomes moving forward.
In the unfreezing stage Lewin identifies driving and restraining forces. Driving forces are those that direct behavior away from the status quo. Restraining forces are those that hinder movement from the existing equilibrium.

9. Kotter’s Eight-Step Plan
Create urgency
Form coalition
Create new vision
Communicate the vision
Empower others
Reward “wins”
Consolidate improvements
Reinforce the change
Movement
Refreezing
Kotter also offers a model to look at change that builds on the initial ideas of Lewin. He sets forth the following eight steps:
Establish a sense of urgency
Form a coalition
Create a new vision
Communicate the vision
Empower others by removing barriers
Create and reward short-term “wins”
Consolidate, reassess, and adjust
Reinforce the changes
Unfreezing

10. Organizational Development
A collection of planned-change interventions that seek to improve organizational effectiveness and employee well-being
Based on humanistic-democratic values:
Respect for People
Trust and Support
Power Equalization
Confrontation
Participation
Organizational development is an area of study that is set up to determine what an organization needs to improve their effectiveness and employee well being. Some organizational development values include respect for people, trust and support, power equalization, confrontation and participation.

11. OD Interventions Sensitivity Training Survey Feedback
Changing behavior through unstructured group interaction
Survey Feedback
Gathering data and acting on it
Process Consultation
Using outside consultants
Appreciative Inquiry
Discovering what the organization does right
There are six commonly used organizational development techniques. The first is sensitivity training that sets up groups that seek to change behavior through unstructured group interaction by providing an environment of increased awareness of others and of themselves. This increases their empathy, listening skills, openness and tolerance for others.
The second technique is the survey feedback approach where the organization will use a questionnaire to identify discrepancies among member perceptions and then follow up with discussions and plans for improvement.
Process consultation is the third technique. In this technique there is a consultant involved who gives the clients some insights into what is happening in the organization and helps to identify a process for improvement.
The fourth technique is engaging in team building tools to increase trust and openness through increased interactions.
Intergroup development is an organizational development tool that attempts to change the attitudes, stereotypes and perceptions that groups may have of each other.
Finally, the sixth commonly used technique is appreciative inquiry. This process seeks to identify the unique qualities and special strengths of an organization which they then use to build on to improve performance through a process. This process includes discovery (identifying the strengths of the organization), dreaming (speculating on the future of the organization), designing (finding a common vision) and destiny (deciding how to fulfill the dream).

12. Stimulating a Culture of Innovation
Innovation is a new idea applied to initiating or improving a product, process or service.
Sources of innovation included: structure, culture, human resources.
Innovation is a new idea applied to the beginning or improvement of a product, process or services. Organizations can seek innovation through changing structure, creating a culture of creativity or hiring an innovative workforce

13. Idea Champions
Managers who actively and enthusiastically promote an idea, build support, overcome resistance, and ensure that innovation is implemented
Have high self-confidence, persistence, energy, and acceptance of risk
Use inspiration and vision to gain commitment
Have decision-making discretion
For innovation to occur there needs to be an idea champion who actively promote the innovation.
An idea champion is someone who actively and enthusiastically promotes an idea, builds support, overcomes resistance and ensures that innovation is implemented. A manager must have high energy and be willing to accept risk. They must use inspiration and vision to gain commitment and have the authority to make decisions.

14. Work Stress
Dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what is desired and for which the outcome is perceived to be both uncertain and important
Types:
Challenge Stress – may improve performance
Hindrance Stress – comes from obstacles to achieving goals – mostly negative
When change occurs stress is found throughout the organization. Stress is defined as a dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and important. There are different types of stress. There is challenge stress which is stress associated with workload, pressure to get work done and time constraints. Hindrance stressors are those things that keep you from reaching your goals such as uncooperative employees or red tape. This can cause more stress than challenge stress often does.

15. Managing Stress Counseling Time Management Physical Activity
Organizational
Personal
Employee Selection
Organizational Communication
Goal-setting Programs
Job Redesign
Counseling
Time Management
Physical Activity
Stress needs to be managed and maintained at a healthy level. Individuals often manage stress through time management techniques, physical exercise or expanding their social support network. Organizations can also help employees manage stress by providing training, realistic goal setting, solid designing of jobs, offering employee sabbaticals and establishing a wellness program.
Managers have no direct control on personal stress and there are ethical considerations about intruding into employees’ personal lives

16. Global Implications Is managing change culture bound?
Do people believe change is possible?
Yes, when people believe they control their environment
If it’s possible, how long will it take to bring about?
Short-term focus cultures want fast results
Is resistance to change greater in some cultures than in others?
Yes, traditional cultures resist change
Organizational change will vary in different cultures depending on the people’s view of the possibility of change and their time orientation . Also, some cultures have strong traditions and this will create a higher resistance to change.

17. Global Implications Continued
Does culture influence how change efforts will be implemented?
Yes, high power distance cultures are autocratic
Do successful idea champions do things differently in different cultures?
Yes, idea champions modified techniques based on culture
Does stress vary across cultures?
The conditions that lead to stress may vary, but the personality effects, outcomes, and reduction methods do not
Stress also varies by cultures as different issues will cause stress in different cultures. The concept of power distance will impact how change is implemented as well as who is the best idea champion for leading the change. However, stress is bad for everyone no matter which culture they belong to. Also, across cultures having a good support system of family and friends can reduce stress.

18. Implications for Managers
The need for change encompasses almost aspects of OB
The real world is turbulent, requiring organizations and their members to undergo dynamic change if they are to perform at competitive levels
Managers must continually act as change agents
Chance is inevitable, especially in today’s market so it is critical for managers to have the skill set to deal with it as it impacts every aspect of organizational behavior.
If an organization is to remain competitive they must learn to operate in a changing environment. Managers must take on the role of change agents and be the champions for innovation.

19. Keep in Mind… Organizations and their members tend to resist change
It is unlikely that anyone approach to managing change we best in every situation
Changes often stressful, but not all stress is harmful
It is typical for organizations and their members to resist change and in order to handle it effectively each individual may approach change from a different perspective.
Change can be stressful, but it doesn’t mean it has to be harmful.

20. Summary Identified forces that act as stimulants to change.
Listed the sources for resistance to change.
Compared the three main approaches to managing organizational change.
Described the causes and consequences of work stress.
Described characteristics of a learning organization.
Explained global differences in organizational change and stress.