1. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–1 CHAPTER 16 MANAGING ORGANISATIONS THROUGH CHANGE & CONFLICT

2. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–2 LECTURE OUTLINE Managing change Managing resistance to change Managing conflict Relationship between conflict & change

3. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–3 MANAGING CHANGE Managing change: Diagnosing the need for change – Internal factors – External factors The change cycle Effective organisational change is cyclical

4. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–4 MANAGING CHANGE The change cycle 1. Performance gap 2. Identify a desired future 3. Recognise need for change 4. Problem diagnosis 5. Development of alternatives 6. Selection of appropriate alternatives 7. Implementation 8. Evaluation against desired outcomes

5. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–5 MANAGING CHANGE The organisation External change factors economy regulations competition technical development imports politics Internal change factors structure jobs employees technology culture

6. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–6 MANAGING RESISTANCE TO CHANGE Individual resistance to change: Self-interest Misunderstanding Lack of trust Differential assessment Ability to adjust

7. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–7 MANAGING RESISTANCE TO CHANGE Managing resistance to change: Freeze cycle approach Unfreezing Initial awareness of need for change is developed Changing Focus on learning needed new behaviours Freezing Reinforcing new learned behaviours

8. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–8 MANAGING RESISTANCE TO CHANGE UNFREEZE CHANGEUNFREEZEREFREEZE THREE-STEP PROCESS:

9. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–9 MANAGING RESISTANCE TO CHANGE Overcoming resistance to change: Methods adopted by managers Education & communication Participation & involvement Facilitation & support Negotiation & agreement Manipulation & cooptation Explicit & implicit coercion

10. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–10 MANAGING RESISTANCE TO CHANGE Overcoming resistance METHODS (Kotter & Schlesinger) Participation & involvement Education & communication Facilitation & support Negotiation & agreement Manipulation & cooptation Explicit & implicit coercion

11. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–11 MANAGING RESISTANCE TO CHANGE Force-field analysis: Method involving analysing the two types of forces—driving forces & restraining forces—that influence any proposed change, then assessing how best to overcome resistance Driving forces Factors pressuring for a particular change Restraining forces Factors pressuring against a change

12. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–12 MANAGING RESISTANCE TO CHANGE Overcoming resistance to change Force Field Analysis (Kurt Lewin) ‘a method involving analysing the two types of forces, driving forces and restraining forces, that influence any proposed change, then assessing how best to overcome resistance.’ Driving forces Factors pressuring for a particular changeRestrainingforces Factors pressuring against a change CHANGECHANGE

13. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–13 MANAGING RESISTANCE TO CHANGE Forces for change Forces against change Good union relationsFailing union relations Foreign competitionStringent work rules Recent lossesCurrent benefit costs Cheaper outside sourcesCurrent pay costs Union desire to save jobsAbsenteeism levels Company reluctance to Company desire for save jobsflexibility in layoff decisions

14. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–14 MANAGING CONFLICT Conflict is the perceived difference between two or more parties resulting in mutual opposition. Between individuals & organisation Causes of conflict Benefits and losses from conflict

15. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–15 MANAGING CONFLICT Conflict between individuals and organisations: Organisation efficiency is built on task specialisation, unity of command, formalisation. This often requires workers to be passive, dependent & subordinate. Individuals may have little control over work and machines may seem to take over control.

16. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–16 MANAGING CONFLICT Conflict between individuals and organisations (cont.): This conflicts with the needs & expectations of maturing people. Therefore, many job structures conflict with a healthy personality’s basic growth needs.

17. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–17 MANAGING CONFLICT Conflict between individuals and organisations: Conflict is strongest with Very mature employees Highly structured organisations Formalised rules and procedures Fragmented and mechanised jobs

18. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–18 MANAGING CONFLICT Choices facing employees in conflict: Leave organisation or seek promotion Use defence mechanisms Psychologically disassociate Concentrate on material rewards Find allies & resist

19. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–19 MANAGING CONFLICT Conflict between individuals/organisations: Leave Defend Disassociate Find distraction Conflict occurs: Employees must choose to Form alliances

20. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–20 MANAGING CONFLICT Causes of conflict: Communication factors Structural factors Size Participation Line–staff distinctions Reward systems Resource interdependence Task interdependence Power

21. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–21 MANAGING CONFLICT Causes of conflict (cont.): Personal behaviour factors Communication styles Workforce diversity Differences in goals Reward structures Differences in perceptions Increased demand for specialists

22. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–22 MANAGING CONFLICT Benefits & losses from conflict: BENEFITSLOSSES Productive task focusEnergy diversion Cohesion & satisfaction Distorted judgment Power & feedback Loser effects Goal attainmentPoor coordination

23. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–23 MANAGING CONFLICT Benefits & losses from conflict Benefits Productive task focus Cohesion & satisfaction Power & feedback Goal attainment Losses Energy diversion Distorted judgment Loser effects Poor coordination

24. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–24 MANAGING CONFLICT Reducing/resolving conflict: Change situational factors Appeal to superordinate goals Interpersonal conflict-handling techniques – Avoidance – Accommodation – Competition – Compromise – Collaboration

25. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–25 MANAGING CONFLICT Managing intergroup conflict through change: Problem solving Expansion of resources Smoothing Bureaucratic authority Limited communication Confrontation & negotiation Intergroup training

26. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–26 MANAGING CONFLICT Managing intergroup conflict Intergroup training Expansion of resources Bureaucratic authority Problem solving Limited communication Smoothing Confrontation & negotiation Intergroup conflict resolution

27. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–27 RELATIONSHIP BETWEEN CHANGE & CONFLICT Types of intergroup conflict – Functional – Dysfunctional Changing views on conflict – Traditional view—conflict is destructive & unnecessary – Modern view—conflict is inevitable, & may produce better organisational performance Stimulating conflict Build group diversity, communicate to provoke change, encourage competition

28. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–28 LECTURE SUMMARY Managing change – Diagnosing need – Change cycle Managing resistance to change – Introducing change – Resistance to change – Managing resistance

29. Copyright  2005 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin 16–29 LECTURE SUMMARY Managing conflict – Individual-organisational conflict – Causes Relationship between conflict & change – Types of intergroup conflict – Changing views on conflict – Stimulating conflict