1. 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.

3. 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

4. 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

5. 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.

6. 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

7. External Pressures for Change
Technological Advances
Government Regulations
Societal Values
Political Dynamics
Demographics
International Interdependence

8. Planned Change
Process involving deliberate efforts to move from a current undesirable state to a more desirable state.

9. 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

10. Factors to Consider Position Power Informal Credibility Expertise
Proven Leadership

11. 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

12. Resistance to Change
Efforts to block the introduction of new approaches.

13. Low Tolerance for Change
Resistance
Factors
Lack of Understanding
Different
Assessments
Self-Interest
Low Tolerance for Change

14. Organizational Development (OD)
Organization-wide continuous process designed to improve communication, problem solving, and learning through behavioral science knowledge.

15. 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

16. 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

17. 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

18. Team-building Tips Right people Large block of uninterrupted time
High-priority problem/opportunity
Identified problem/opportunity
Structure
Realistic solutions
Implement
Follow up

19. 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

20. Organizational Learning
Exploitative Learning
Exploratory Learning
How to more effectively use current knowledge
Creating new knowledge and being innovative

21. 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

22. 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?
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