1. Organizational Change
Chapter 14
Organizational Change
Chapter 14, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

2. What you are responsible for…
Six forces for change
Eight targets of change
Individual and organizational resistance to change
Lewin’s model and Kotter’s steps for implementing change
Change agents
Overcoming resistance to change
Material pertinent to this illustration is found on page 512.
The book does not specifically identify these items, but the instructor may want to motivate the lecture by explaining the variety of situations that lead to organizational change.
Chapter 14, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

3. Forces for Change More cultural diversity Aging population
Many new entrants with
inadequate skills
Faster, cheaper, and more mobile computers
Online music sharing
Deciphering of the human genetic code
Rise and fall of dot-com stocks
2000–02 stock market collapse
Record low interest rates
Nature of the work force
Technology
Economic shocks
Force Examples
Material pertinent to this illustration is found on page 512.
The book does not specifically identify these items, but the instructor may want to motivate the lecture by explaining the variety of situations that lead to organizational change.
Chapter 14, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

4. Forces for Change Global competitors Mergers and consolidations
Growth of e-commerce
Internet chat rooms
Retirement of Baby Boomers
Rise in discount and “big box” retailers
Iraq–U.S. war
Opening of markets in China
Hurricane disasters in US in September 2005
Competition
Social trends
World politics
Force Examples
Material pertinent to this illustration is found on pages 512.
The book does not specifically identify these items, but the instructor may want to motivate the lecture by explaining the variety of situations that lead to organizational change.
Chapter 14, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

5. Organizational Targets for Change
Purpose
Clarify or create
mission and objectives
Technology
Improve equipment
facilities, and
work flows
Objective
Set or modify
specific performance
Strategy
strategic and
operational plans
Culture
Clarify or create core
beliefs and values
People
Update recruiting and
selection practices;
improve training and
development
Tasks
Update job designs
for individuals
and groups
Structure
Update organizational
design and coordination
mechanisms
Material pertinent to this illustration is found on page 514.
Organizations can change the following:
Purpose: Clarify or create mission and objectives.
Technology: Modifying how work is processed and methods and equipment used.
Structure: Altering authority relations, coordination mechanisms, job redesign, or similar structural variables.
Tasks: Update job designs for individuals and groups.
People: Changes in employee skills, expectations, and/or behaviour.
Culture: Changing the underlying values and goals of the organization.
Strategy: Clarify or create strategic and operational plans.
Objective: Set or modify specific performance targets.
Chapter 14, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

6. Sources of Individual Resistance to Change
Selective
Habit
information
processing
Individual
Resistance
Material pertinent to this illustration is found on pages
Habit: Life is complex. To cope with having to make hundreds of decisions everyday, we all rely on habits or programmed responses.
Security: People with a high need for security are likely to resist change because it threatens their feelings of safety.
Economic Factors: Another source of individual resistance is concern that changes will lower one’s income.
Fear of the Unknown: Changes substitute ambiguity and uncertainty for the known.
Selective Information Processing: Individuals shape their world through their perceptions. Once they have created this world, it resists change.
Security
Fear of
the unknown
Economic
factors
Chapter 14, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

7. Sources of Organizational Resistance to Change
Threat to established
resource allocations
Structural
inertia
power relationships
Limited focus
of change
Threat to
expertise
Group
Material pertinent to this illustration is found on page 522.
Structural Inertia: Organizations have built-in mechanisms to produce stability; this structural inertia acts as a counterbalance to sustain stability.
Limited Focus of Change: Organizations are made up of a number of interdependent subsystems. Changing one affects the others.
Group Inertia: Group norms may act as a constraint.
Threat to Expertise: Changes in organizational patterns may threaten the expertise of specialized groups.
Threat to Established Power Relationships: Redistribution of decision-making authority can threaten long-established power relationships.
Threat to Established Resource Allocations: Groups in the organization that control sizable resources often see change as a threat. They tend to be content with the way things are.
Chapter 14, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

8. Approaches To Managing Change
Lewin’s Three-Step Model
Kotter’s Eight-Step Plan for Implementing Change
Action Research
Appreciative Inquiry
Material pertinent to this discussion is found on pages
Chapter 14, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

9. Lewin’s Three-Step Model For Implementing Change
Unfreezing
Change efforts to overcome the pressures of both individual resistance and group conformity.
Moving
Efforts to get employees involved in the change process.
Refreezing
Stabilizing a change intervention by balancing driving and restraining forces.
Material pertinent to this discussion is found on pages
Chapter 14, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

10. Exhibit 14-4 Unfreezing the Status Quo
Desired
state
Restraining
forces
Status
Material pertinent to this illustration is found on page 516.
quo
Driving
forces
Time
Chapter 14, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

11. Unfreezing Arouse dissatisfaction with the current state.
Activate and strengthen top management support.
Use participation in decision making.
Build in rewards.
Material pertinent to this discussion is found on pages
Arouse dissatisfaction with the current state.
Tell them about deficiencies in organization.
Activate and strengthen top management support.
Break down power centres.
Use participation in decision making.
Get people involved.
Build in rewards.
Tie rewards to change. Use recognition, status symbols, and praise to get people to go along.
Chapter 14, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

12. Moving Establish goals.
Institute smaller, acceptable changes that reinforce and support change.
Develop management structures for change.
Maintain open, two-way communication.
Material pertinent to this discussion is found on pages
Establish goals.
Eg., Make business profitable by end of next year.
Institute smaller, acceptable changes that reinforce and support change.
Eg., Procedures and rules, job descriptions, reporting relationships.
Develop management structures for change.
E.g., Plans, strategies, mechanisms that ensure change occurs.
Maintain open, two-way communication.
Chapter 14, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

13. Refreezing Build success experiences Reward desired behaviour
Develop structures to institutionalize the change
Make change work
Material pertinent to this discussion is found on pages
Build success experiences.
Set targets for change, and have everyone work toward targets.
Reward desired behaviour.
GOOD: Reward behaviour that reinforces changes.
BAD: Reward old system (e.g., people relying on old systems while computerization is going on).
Develop structures to institutionalize the change.
Organizational retreats, appropriate computer technology, performance appraisals that examine change efforts
Make change work.
Chapter 14, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

14. Kotter: Change Steps in Response to Common Failures in Initiating Change
The inability to create a sense of urgency.
Step 1: Establish a sense of urgency.
Failure to create a coalition.
Step 2: Form a coalition.
The absence of a vision for change.
Step 3: Create a new vision & Step 4: Communicate the vision
Not removing obstacles.
Step 5: Empower others to act.
Failure to provide short-term and achievable goals.
Step 6: Develop short-term “wins.”
The tendency to declare victory too soon.
Step 7: Consolidate improvements.
Not anchoring the changes in the organization’s culture.
Step 8: Reinforce changes.
Material pertinent to this discussion is found on pages
The inability to create a sense of urgency about the need for change.
Failure to create a coalition for managing the change process.
The absence of a vision for change and to effectively communicate that vision.
Not removing obstacles that could impede the achievement of the vision.
Failure to provide short-term and achievable goals.
The tendency to declare victory too soon.
Not anchoring the changes in the organization’s culture.
Chapter 14, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

15. Change Agents
People who act as catalysts and assume the responsibility for managing change activities.
Material pertinent to this discussion is found on page 514.
Chapter 14, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

16. Outside agents Can offer an objective perspective.
Usually have an inadequate understanding of the organization’s history, culture, operating procedures, and personnel.
Don’t have to live with the repercussions after the change is implemented.
Material pertinent to this discussion is found on page 514.
Can offer an objective perspective often unavailable to insiders.
Are disadvantaged because they usually have an inadequate understanding of the organization’s history, culture, operating procedures, and personnel.
May be prone to initiating more drastic changes because they don’t have to live with the repercussions after the change is implemented.
Chapter 14, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

17. Internal agents Have to live with the consequences of their actions.
May be more thoughtful.
May be more cautious.
Material pertinent to this discussion is found on page 514.
Chapter 14, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

18. Overcoming Resistance to Change
Education and communication
This tactic assumes that the source of resistance lies in misinformation or poor communication.
Best used: Lack of information, or inaccurate information
Participation and involvement
Prior to making a change, those opposed can be brought into the decision process.
Best used: Where initiators lack information, and others have power to resist
Facilitation and support
The provision of various efforts to facilitate adjustment.
Best used: Where people resist because of adjustment problems
Material pertinent to this discussion is found on pages
Chapter 14, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada

19. Overcoming Resistance to Change
Negotiation and agreement
Exchange something of value for a lessening of resistance.
Best used: Where one group will lose, and has considerable power to resist
Manipulation and cooperation
Twisting and distorting facts to make them appear more attractive.
Best used: Where other tactics won’t work or are too expensive
Explicit and implicit coercion
The application of direct threats or force upon resisters.
Best used: Speed is essential, and initiators have power
Material pertinent to this discussion is found on pages
Chapter 14, Nancy Langton and Stephen P. Robbins, Organizational Behaviour, Fourth Canadian Edition
Copyright © 2007 Pearson Education Canada