1. Organization Change and Development
Spring 2007
Organization Change and Development

2. Organizational Change and Development
What is it?
Why change?
Resistance to change
Force field analysis
Spring 2007
Organization Change and Development

3. Organization Change and Development
OD Defined
OD = shorthand for “Organization Change and Development”
OD is an effort…
Planned
Organization-wide
Managed from the top, in order
To increase organizational effectiveness, through
Planned interventions in organizational processes, using behavioral-science knowledge
Spring 2007
Organization Change and Development

4. The Change Process Consideration of alternatives Evaluation
Forces for change
Management recognition of need for change
Diagnosis of problem and points of resistance
Evaluation
Selection of methods & implementation
Consideration of alternatives
Spring 2007
Organization Change and Development

5. Forces Driving Change: Internal and External
Technology
The Economy
Competition
Workforce
Global
Events
Social
Trends
Spring 2007
Organization Change and Development

6. Attitude Toward Change
Desirable
Accept change as inevitable
Proactive
Not Desirable
Feel threatened by change
Reactive
Spring 2007
Organization Change and Development

7. Organization Change and Development
Objects of Change
Structure
Physical
Setting
Technology
People
Culture
Spring 2007
Organization Change and Development

8. Resistance to Change - Individual
Group Inertia
Selective Information Processing
Force of Habit
Individual
Six sources of organizational resistance have been identified.
• Group Inertia. Even if individuals want to change, group norms can constrain them.
• Structural Inertia. Organizations have built-in stability mechanisms: for instance, selection procedures, training processes, job descriptions, and rules. When an organization faces change, structural inertia acts as a counterbalance to sustain stability.
• Limited Focus of Change. Organizations consist of interdependent subsystems, so one cannot be changed without affecting the others. The larger system, therefore, can nullify limited subsystem changes.
• Threat to Expertise. The expertise of specialized groups may be threatened by organizational change.
• Threat to Established Power Relationships. Any redistribution of decision-making authority can threaten established power relationships within the organization.
• Threat to Established Resource Allocations. Those that benefit the most from the current allocation of resources are often the most threatened by changes that may affect future allocations.
Need for Security
Fear of the Unknown
Economic Factors
Spring 2007
Organization Change and Development

9. Resistance to Change - Group
Organizational
Threat
to Expertise
Limited
Focus
of Change
Threat to
Existing
Allocations
Relationships
Structural
Inertia
Group Inertia
Six sources of organizational resistance have been identified.
• Group Inertia. Even if individuals want to change, group norms can constrain them.
• Structural Inertia. Organizations have built-in stability mechanisms: for instance, selection procedures, training processes, job descriptions, and rules. When an organization faces change, structural inertia acts as a counterbalance to sustain stability.
• Limited Focus of Change. Organizations consist of interdependent subsystems, so one cannot be changed without affecting the others. The larger system, therefore, can nullify limited subsystem changes.
• Threat to Expertise. The expertise of specialized groups may be threatened by organizational change.
• Threat to Established Power Relationships. Any redistribution of decision-making authority can threaten established power relationships within the organization.
• Threat to Established Resource Allocations. Those that benefit the most from the current allocation of resources are often the most threatened by changes that may affect future allocations.
Spring 2007
Organization Change and Development

10. Overcoming Resistance
Education and communication
Negotiation
Communication
Facilitation and support
Coercion
Manipulation and cooptation
Spring 2007
Organization Change and Development

11. Organizational Change
Unfreezing
Changing
Refreezing
Kurt Lewin asserts that successful change requires unfreezing the status quo, changing to a new state, then refreezing the new change to make it permanent. Moving from the status quo (equilibrium) can be achieved in three ways:
1. The driving forces, which direct behavior away from the status quo, can be increased.
2. The restraining forces, which hinder movement away from the status quo, can be increased.
3. The two approaches can be combined.
Lewin’s Three-Step Process
Spring 2007
Organization Change and Development

12. Unfreezing the Status Quo
Desired
State
Restraining
Forces
Status
Quo
The status quo can be considered an equilibrium state. To move from a state of equilibrium (to overcome individual and organizational resistance), unfreezing must occur. It can be done in three ways:
1. The driving forces, which direct behavior away from the status quo, can be increased.
2. The restraining forces, which hinder movement from the existing equilibrium, can be decreased.
3. A third alternative is combining the first two approaches.
Once unfreezing has been accomplished, the change can be implemented. But merely introducing change does not ensure that it will take hold. The new situation must be refrozen. The objective of refreezing is to stabilize the new situation by balancing the driving and restraining forces. Unless this is done, employees will revert to the previous state of equilibrium.
Driving
Forces
Time
Spring 2007
Organization Change and Development

13. OD Tools and Interventions
Survey and survey feedback
Team building
Diversity training
Leadership development
Organization restructuring
Job redesign
Adoption of new technologies
Intergroup Development. This technique can change attitudes, stereotypes, and perceptions that groups have of each other. One method emphasizes problem solving. Once problems have been identified, team members can move to the integration phase of working together to develop solutions to improve intergroup relations.
Process Consultation. An outside consultant helps a client to perceive, understand, and act upon various processes in the workplace: such as work flow, informal relationships, and formal communication channels.
Sensitivity Training. This method uses unstructured group interaction to change behavior. Members meet in an “open” environment to discuss their interactive processes and themselves. The discussion is loosely directed by a behavioral scientist. The group is process oriented, and individuals learn by observing and participating rather than being told.
Survey Feedback. Management can use the survey feedback approach to assess the attitudes of organizational members in order to identify and address the discrepancies among their perceptions.
Team Building. The following team building activities promote trust and openness between team members: goal setting, interpersonal development, role analysis, and team process analysis.
Spring 2007
Organization Change and Development

14. Organization Change and Development
Change and Culture
Is change possible?
How long will it take?
Does culture influence resistance?
Does culture influence implementation?
Does culture influence idea champions?
Spring 2007
Organization Change and Development