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Chapter 14 organizational change and development Michael A. Hitt
C. Chet Miller Adrienne Colella Mary Triana
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? Knowledge Objectives Describe three major internal pressures for change. Identify and explain six major external pressures for change. Describe the three-phase model of planned change. Discuss important tactical choices involving the speed and style of a change effort. Explain the four general causes of resistance to change and the tactics that can be used to address each cause. Describe the basic organization development (OD) model and discuss OD interventions, including relationship techniques and structural techniques.
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Pressures for Change Pressure for Change Life-Cycle Forces Aspirations
Introduction or Removal of Government Regulations Life-Cycle Forces Growing International Interdependence Changes in Demographics Shifting Political Dynamics Changes in Societal Values Technological Advances Aspirations Pressure for Change Adapted from Exhibit 14-1: Internal and External Pressures for Organizational Change
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Internal Pressures for Change Aspiration-performance Discrepancies
Gaps between what an individual, unit, or organization wants to achieve and what its achieving. Aspirations develop through: past aspirations past performance comparison with others
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Internal Pressures for Change Life-cycle Forces
Natural and predictable pressures that build as an organization grows and that must be addressed to continue growing.
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Entrepreneurial Stage Formalization and Control Stage
Integrative Life-Cycle Model Entrepreneurial Stage Collectivity Stage Need for additional people Need for stability and structure Formalization and Control Stage Need for balance Elaboration Stage Adapted from Exhibit 14-2: Integrative Life-Cycle Model
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External Pressures for Change
Technological Advances Government Regulations Societal Values Political Dynamics Demographics International Interdependence
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Planned Change Process involving deliberate efforts to move from a current undesirable state to a more desirable state.
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Process of Planned Change
Unfreezing Provide rationale for change Create sense of safety with change Create guilt/anxiety about not changing Transforming Provide information supporting change Bring about shifts in behavior Refreezing Implement new evaluation systems Implement new hiring and promotion systems Adapted from Exhibit 14-3: Process of Planned Change
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Factors to Consider Position Power Informal Credibility Expertise
Proven Leadership
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Tactical Choices Speed of Change Style of Change Urgency
Degree of Support Amount and Complexity Competitive Environment Knowledge and Skills Financial and Other Resources Top-down Style Participatory Style Urgency Degree of Support Referent and Expert Power of Change Leaders
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Resistance to Change Efforts to block the introduction of new approaches.
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Low Tolerance for Change
Resistance Factors Lack of Understanding Different Assessments Self-Interest Low Tolerance for Change
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Organizational Development (OD)
Organization-wide continuous process designed to improve communication, problem solving, and learning through behavioral science knowledge.
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Diagnosis of Situation Introduction of interventions
Basic Organization Development Model Diagnosis of Situation Introduction of interventions Progress Monitoring Feedback Adapted from Exhibit 14-4: Basic Organization Development Model
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Organization Development Interventions
Relationship Techniques Structural Techniques T-group Training Team Building Survey Feedback Job Redesign Management by Objectives Supplemental Organizational Processes Adapted from Exhibit 14-5: Organization Development Interventions
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Relationship Techniques
managers and associates gain skills and capabilities build behavior skills interpersonal, listening and collaboration skills common tool used by all types of organization Training team members work together work with a facilitator diagnose task, process and interpersonal problems create solutions Team Building data obtained from questionnaires managers receive information for their unit expected to hold meeting to discuss problems Survey Feedback
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Team-building Tips Right people Large block of uninterrupted time
High-priority problem/opportunity Identified problem/opportunity Structure Realistic solutions Implement Follow up
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Structural Techniques
enlargement of jobs enrichment of jobs motivates; problem solving, communication, learning Job Redesign individuals negotiate job goals with managers held accountable for attainment Goal-Based Leadership ongoing meetings between associates and/or managers understand and address problems Supplemental Organizational Processes
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Organizational Learning
Exploitative Learning Exploratory Learning How to more effectively use current knowledge Creating new knowledge and being innovative
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SUCCESSFUL OD QUALITIES ACROSS CULTURES…
openness to new willingness to change Flexibility understanding beliefs and behavior of different cultures Specific Knowledge ability to listen and resolve problems Interpersonal Sensitivity
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Check out http://wileymanagementupdates.com/
Strategic Lens Why do organizations need to make changes on a regular basis? What are the major causes of these changes? Why is it so difficult for people to change their behavior, even when they know it is important to do so? If you were in a managerial position and believed that a major change in your unit’s structure was needed, what actions would you take to ensure that the change was made effectively? Check out for daily articles related to management in the news .
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