1. Managing Organizational Change Chapter 16 16-1 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

2. Learning Objectives 1.Characterize the prevalence of the change process in organizations. 2.Understand what, exactly, is changed when organizational change comes about, and the forces responsible for unplanned organizational change. 3.Describe what is meant by strategic planning and the types of strategic changes that organizations make. 16-2 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

3. Learning Objectives 4.Identify the ten steps in the strategic planning process. 5.Explain why people are resistant to organizational change and how this resistance may be overcome. 6.Identify and describe the major organizational development techniques that are used today. 16-3 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

4. Change Targets 16-4 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

5. Changing People 16-5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

6. Change Magnitude 16-6 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

7. Unplanned Change Forces  Shifting employee demographics  Performance gaps  Government regulation  Global competition  Fluctuating economic conditions  Advances in technology 16-7 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

8. Strategic Planning The process of formulating, implementing, and evaluating decisions that enable an organization to achieve its objectives 16-8 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

9. Strategic Planning  Is deliberate  Occurs when current objectives can no longer be met  New organizational objectives require new strategic plans 16-9 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

10. Strategic Planning Targets  Products and services  Organizational structure  Downsizing  Rightsizing  Outsourcing 16-10 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

11. Strategic Planning Process 16-11 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

12. Various Competitive Strategies 16-12 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

13. Individual Barriers to Change  Economic insecurity  Fear of the unknown  Threats to social relationships  Habit  Failure to recognize need for change 16-13 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

14. Organizational Barriers to Change  Structural inertia  Work group inertia  Threats to existing balance of power  Previously unsuccessful change efforts 16-14 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

15. Resistance to Change Factors 16-15 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

16. Overcoming Organizational Change Resistance  Shape political dynamics  Identify and neutralize change resisters  Educate the workforce  Involve employees in the change efforts  Reward constructive behaviors  Take the situation into account 16-16 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

17. Sell the Need for Change 16-17 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

18. Create a Learning Organization  Establish commitment to change  Adopt an informal organizational structure  Develop an open organizational culture 16-18 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

19. Organizational Development Management by Objective 16-19 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

20. Organizational Development Survey Feedback 16-20 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

21. Organizational Development Appreciative Inquiry  Discovery  Dreaming  Designing  Delivering 16-21 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

22. Organizational Development  Action labs  Quality of work life programs  Work restructuring  Quality circles 16-22 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

23. Organizational Development Effectiveness  More effective among blue-collar workers  Enhanced by using technique combination  Depends on degree of top management support 16-23 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

24. National Values and Organizational Development 16-24 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

25. This work is protected by United States copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from it should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 16-25