chapter 22 managing change. objectives describe the nature of change explain the essential...

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Chapter 22 Managing Change

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Page 1: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

Chapter 22

ManagingChange

Page 2: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

Objectives

Describe the nature of changeExplain the essential components in the

change processUnderstand the leader’s role in the change

processDefine resistance to change and its

functionList tactics for dealing with resistance to

change22 -1Organizational Behavior: An Experiential Approach 8/E

Joyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Page 3: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

Basic Requirements for Successful Change Efforts

22 -2

Top management supportCritical massTrustNew psychological contractsNew learned behaviorsOrganizational learning Institutionalization of innovations

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Page 4: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

Types of Change

22 -3

Incremental

(first-order)

Linear Continuous Targeted at fixing /

modifying problems /

procedures

Transformative(second-order, gamma)

Radical Discontinuous Multidimensional Multilevel Modifies the

fundamental structure, systems, orientation and strategies

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Page 5: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

Critical Mass - Defined

22 -4

Critical mass is defined as the smallest

number of people and / or groups who

must be committed to a change for it to

occur

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Page 6: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

Lewin’s Change Process

22 -5

UnfreezingStress, tension, strong felt

need for change

MovingGive up old ways of behaving,Test new behaviors, attitudes

and values

Refreezing Reinforce, internalize,

institutionalize new behaviorOrganizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Page 7: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

Change Is a Process -not an Event or Managerial Edict

TechnicalSolution

Process

22 -6Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Page 8: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

Steps in the Change Process Determining the need

for change Forming a guiding coalition

Developing a shared vision

Creating a tentative plan

Analyzing potential resistance and

obtaining participation

Establishing an implementation plan

Communicating thechange

Implementing the change

Evaluating the change

22 -7Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Page 9: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

22 -8

C=(D X S X P) > X

Where:C = changeD = dissatisfaction with status quoS = an identifiable and desired end stateP = practical plan for achieving the desired

end stateX = the cost of change to the organization

When Are Conditions Favorable for Change?

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Page 10: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

Force Field Analysis - Defined

Forces for change Forces against

change

Force field analysis assigns pressures for change and resistance to change to oppositesides of an equilibrium state.

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

22 -9

Page 11: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

Creative Tension - Defined

Creative tension results from perceiving the

gap between the ideal situation and an

honest appraisal of its current reality

Current reality

Ideal situation

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

22 -10

Page 12: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

Creating a Sense of Urgency Create a crisis by allowing a loss/error to blow up Eliminate obvious examples of excess Set targets so high they can’t be reached by doing

business as usual Share more info on customer satisfaction and

financial performance Insist employees talk with unsatisfied customers,

suppliers, shareholders Stop “happy talk” and be honest

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

22 -11

Page 13: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

Change Agents - Defined

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Change agents are people who act as catalysts and assume the responsibility for managing change activities

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Page 14: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

Role of Transformational Leaders

EnvisionArticulate a clear and credible vision Set new and difficult standards for

performance Generate pride in past

accomplishments and enthusiasm for new strategy

22 -13Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Page 15: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

…Role of Transformational Leaders

EnergizePersonally demonstrate excitement for

changes Model the behaviors that are expected of

othersCommunicate examples of

early successes to mobilize energy for change

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

22 -14

Page 16: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

…Role of Transformational Leaders

EnableProvide resources necessary for

undertaking significant changeUse rewards to reinforce new behaviorsBuild an effective top-management team to

manage the new organizationDevelop management

practices to support the change process

22 -15Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Page 17: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

Resistance to Change - Defined

Resistance is a natural reaction to change

and part of the process of adaptation

Ensures that plans for change and their

ultimate consequences are carefully thought through

22 -16Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Page 18: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

Handling Resistance to Change

View it as something else that must be

managed by:Understanding the sourceListening carefully to concernRefraining from seeing resisters as

adversariesUsing the appropriate tactic in response

22 -17Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Page 19: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

Sources of Resistance

Inadequate change goalInadequate processPersonal resistancePolitical resistanceSystemic resistance

22 -18Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Page 20: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

Tactics for Dealing with Resistance

Empathy Education and communication Participation and involvement Facilitation and support Co-optation Negotiation and agreement Manipulation Coercion

Commitment

Compliance

22 -19Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Page 21: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

Organizational Development (OD) - Defined

Organization development (OD) is a specialized

system-wide process of data collection, diagnosis,

action, planning, intervention, and evaluation

aimed at:

(1) enhancing congruence between organizational structure, process, strategy, people, and culture, 

(2) developing new and creative organizational solutions, and

(3) developing the organization’s self-renewing capacity.

22 -20Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

Page 22: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

Cultural Values Underlying OD

Respect for peopleTrust and supportEquality and power sharingCandor and confrontationParticipationCollaboration

Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner

22 -21

Page 23: Chapter 22 Managing Change. Objectives  Describe the nature of change  Explain the essential components in the change process  Understand the leader’s

When Does Culture Matter with Change?

OD values are not reflective of all cultures.Cultures vary in terms of their comfort with

change, beliefs about how change occurs, and how it should be implemented.

Cultural values affect the change implementation process

Change interventions that work in one country may not succeed elsewhere. Corporate-wide changes have to be contextualized

22 -22Organizational Behavior: An Experiential Approach 8/EJoyce S. Osland, David A. Kolb, Irwin M. Rubin and Marlene E. Turner