Chapter 16Nelson & QuickManaging Change Copyright 2005 by South-Western, a division of Thomson Learning. All rights reserved.

Organizational ChangeManagers must be prepared to handle both

External Forces for ChangeGlobalizationWorkforceDiversityChangingTechnologyEthicalBehavior

Internal Forces for ChangeDecliningEffectivenessChangingEmployeeExpectationsCompanyCrisisChangingWork Climate

Scope of ChangeIncremental Change - change of a relatively small scope, such as making small improvementsStrategic Change - change of a larger scale, such as organizational restructuringTransformational Change - change in which the organization moves to a radically different, and sometimes unknown, future state

The Change Agents RoleChange Agent - the individual or group who undertakes the task of introducing and managing a change in an organization

The change agent can be internal or external

Internal Change Agents

External Change AgentsTo succeed, they must be perceived as trustworthy, be experts with proven track records, be similar to those they are working with

Resistance to ChangeFear of the unknownFear of lossFear of failureDisruption of interpersonal relationshipsPersonality conflictsPoliticsCultural assumptions and values

Dealing with Resistance to ChangeCommunicationdetailsrationaleParticipation in the processownershipcommitmentEmpathy and support

Reactions to Change & Managerial InterventionsReaction

Disengagementpsychological withdrawal from changeDisidentificationfeeling that ones identity is beingthreatened by change Disenchantmentfeeling negativity or anger toward a changeDisorientationfeelings of loss and confusion due to changeExpression

Withdrawal

Sadness, worry

Anger

Confusion

Managerial Intervention Confront, identify

Explore, transfer

Neutralize, acknowledge

Explain, plan

Table adapted from H. Woodward and S. Buchholz. Aftershock: Helping People through corporate Change, p. 15. Copyright 1987 John Wiley & Sons, Inc. Reprinted by Permission of John Wiley & Sons, Inc.

Lewins Three Step Change Model1. Unfreezing - involves encouraging individuals to discard old behaviors by shaking up the equilibrium state that maintains the status quo2. Moving - new attitudes, values, and behaviors are substituted for old ones3. Refreezing - involves the establishment of new attitudes, values, and behaviors as the new status quo

Force Field Analysis of Decision to Engage in ExerciseForces for changeWeight gainMinimally passing treadmill testFeel lethargic; have no energyFamily history of cardiovascular diseaseNew, physically demanding jobForces for status quoLack of timeNo exercise facility at workSpouse/partner hates to exerciseNo interest in physical activity or sportsMade a grade of D in physical education classEquilibrium

Applying Lewins Model to the OrganizationUnfreezing: the organization eliminates rewards for current behaviorMoving: the organization initiates new options and explains their rationaleRefreezing: organizational culture & formal reward systems encourage the new behaviors

Organizational Development (OD) Organizational Development (OD) - a systematic approach to organizational improvement that applies behavioral science theory and research in order to increase individual and organizational well-being and effectiveness

Diagnosis & Needs AnalysisAsk What are the forces for change? What are the forces preserving the status quo? What are the most likely sources of resistance? What are the goals to be accomplished by change?

OD Intervention Methods: Organizational/Group Techniques Survey Feedback - a widely used method of intervention whereby employee attitudes are solicited by questionnaireAnonymousGroup reporting format No repercussionsClear purposeFollow up

OD Intervention Methods: Organizational/Group Techniques Management by Objective - an organization-wide intervention technique of joint goal setting between employees and managersInitial objectivesPeriodic progress reviewsProblem solving to remove obstacles to goal achievement

OD Intervention Methods: Organizational/Group Techniques Quality Program - a program that embeds product and service quality excellence into the organizational culture

Raise aspirations about product/service qualityEmbed product/service quality excellence in the organizational culture

OD Intervention Methods: Organizational/Group Techniques Team Building - an intervention designed to improve the effectiveness of a work groupSeek feedbackDiscuss errorsReflect on successes & failuresExperiment with new ways of performingClimate of psychological safety

OD Intervention Methods: Organizational/Group Techniques Large Group Interventions - events that bring all of the key members of a group together in one room for an extended period of time

Outside consultants determine participants & goalsParticipants = critical mass supporting change

OD Intervention Methods: Organizational/Group Techniques Process Consultation - an OD method that helps managers and employers improve the processes that are used in organizationsOutside consultant:Enters organizationDefines the relationship Chooses an approachGathers data Diagnoses problemIntervenesLeaves organization

OD Intervention Methods: Individual-Focused Techniques Skills Training - increasing the job knowledge, skills, and abilities that are necessary to do a job effectivelyIn formal classroom settingsOn the job (Continual updating)

OD Intervention Methods: Individual-Focused Techniques Sensitivity Training - an intervention designed to help individuals under- stand how their behavior affects othersOutside trainer whointervenes only to move the group forward.Training can: help employees understand each otherrecognize their own feelingsimprove communication

OD Intervention Methods: Individual-Focused Techniques Management Development Training - a host of techniques for enhancing managers skills in an organizationVerbal informationIntellectual skillsAttitudesDevelopment

OD Intervention Methods: Individual-Focused Techniques Role Negotiation - a technique whereby individuals meet and clarify their psychological contractOutcomes: Better understanding of what each can be expected to give & receive Less ambiguity

OD Intervention Methods: Individual-Focused Techniques Job Redesign - an OD intervention method that alters jobs to improve the fit between individual skills and the demands of the job

Realign task demands and individual capabilitiesRedesign jobs to fit new techniques or organization structures

OD Intervention Methods: Individual-Focused Techniques

Health Promotion Programs

Career Planning

Ethical Considerations in Organizational DevelopmentSelection of the OD methodVoluntary participationConfidentialityPotential for manipulation by the change agent

2345With its ability to reach across boundaries and give voice to the many, the Internet changes the ground rules for everything from commerce to government. Visit digitrends.net to read the latest headlines on emerging technologies, What are the latest newsworthy events in the field of digital technology, and what are the implications for change in business and society?6789101112131415161718The Group for Organizational Effectiveness helps clients facilitate change and manage knowledge. The groups work with organizations such as NASA, Pfizer, and Johnson & Johnson has earned it a reputation as a leader in change management. What services are listed at the site, and how does the group address issues of needs analysis and evaluation for its clients?19192020The American Quality Management Mall is a Web portal for management professionals, featuring discussion groups, publications, job opportunities, and links. Visit the site to learn more about quality topics such as benchmarking, total quality management, team building, and reengineering.212122222323242425