1. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 14-1 Chapter 14 Managing Change

2. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 14-2 CHANGE AT WORK The Nature of Work Change Change Proactive Reactive Responses to Change How Individual Attitudes Affect Response to Change The Hawthorne Effect Group Response to Change Homeostasis Backsliding Costs and Benefits Psychic costs

3. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 14-3 RESISTANCE TO CHANGE Nature and Effect Chain-reaction effect Reasons for Resistance Types of Resistance Logical Resistance Psychological Resistance Sociological Resistance Implications of Resistance Possible Benefits of Resistance

4. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 14-4 IMPLEMENTING CHANGE SUCCESSFULLY Transformational Leadership and Change Transformational leaders Creating Vision Communicating Charisma Stimulated Learning Double-loop learning Single-loop learning

5. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 14-5 IMPLEMENTING CHANGE SUCCESSFULLY Three Stages in Change Unfreezing Changing Refreezing Manipulating the Forces Equilibrium

6. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 14-6 IMPLEMENTING CHANGE SUCCESSFULLY Figure 14-3 A model of the equilibrium state and change process

7. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 14-7 IMPLEMENTING CHANGE SUCCESSFULLY Building Support for Change Use of Group Forces Providing a Rationale for Change Participation Shared Rewards Employee Security Communication and Education Stimulating Employee Readiness Working with the Total System

8. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 14-8 UNDERSTANDING ORGANIZATION DEVELOPMENT Organization development (OD) Foundations of OD Systems Orientation Understanding Causality Assumptions Underlying Organizational Development

9. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 14-9 UNDERSTANDING ORGANIZATION DEVELOPMENT Figure 14-6 Common organization development assumptions

10. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 14-10 UNDERSTANDING ORGANIZATION DEVELOPMENT Characteristics of Organization Development Humanistic Values Use of a Change Agent Problem Solving Action research Experimental Learning Interventions at Many Levels Contingency Orientation Summary and Application

11. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 14-11 UNDERSTANDING ORGANIZATION DEVELOPMENT The Organization Development Process 1. Initial diagnosis 2.Data collection Performance gaps Baseline information 3.Data feedback and confrontation 4.Action planning and problem solving 5.Use of interventions 6.Evaluation and follow-up Benefits and Limitations of OD

12. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 14-12 UNDERSTANDING ORGANIZATION DEVELOPMENT Figure 14-8 Benefits and limitations of organization development

13. McGraw-Hill/Irwin © 2002 The McGraw-Hill Companies, Inc., All Rights Reserved. 14-13 Questions