organizational change and development.ppt...

Organizational Organizational Change and Change and Organizational Organizational Change and Change and

C H A P T E RC H A P T E R 1616

Copyright © 2003 by The McGraw-Hill Companies, Inc. All rights reserved. McShane/ Von Glinow 2/e

Change and Change and DevelopmentDevelopmentChange and Change and DevelopmentDevelopment

Driving Change at EDSDriving Change at EDS

� listening to customer complaints

�

Richard H. “Dick” Brown

drove the change effort at

EDS by:


AP/ Wide World

�changing the firm’s structure

�monitoring the change process

�communicating the change directly with employees

�replacing several executives

Some External Forces for ChangeSome External Forces for Change

InformationInformationTechnologyTechnology

GlobalizationGlobalization& Competition& Competition

Easier information transfer

Facilitates global structures

Requires new competencies and expectations


& Competition& Competition

DemographyDemography

Facilitates telecommuting; new employment relationships

More emphasis on knowledge management




Global competition

Technology makes it easier to compete quickly




Results in restructuring, outsourcing, mergers � produces many employment

changes




More educated workforce

� want involvement; interesting work

Younger generation




Younger generation

� less intimidated by status

� want a more balanced work life

Cultural changes

� more individualism in traditionally collectivist countries

DesiredConditions

Force Field AnalysisForce Field Analysis

RestrainingForces Driving

Forces

RestrainingForces


CurrentConditions

BeforeChange

AfterChange

DrivingForces

RestrainingForces

DuringChange

DrivingForces

Forces

Resistance to Change at BP NorgeResistance to Change at BP Norge

“We already have teams!”

“SDWTs don’t work on rigs!”

Employees initially resisted self-

directed work teams (SDWTs) at BP

Norge’s North Sea drilling rigs.


“This creates more work -- we want higher pay!”

“I don’t know how to work in teams.”

“SDWTs will threaten my job as a supervisor!”

AP/ Wide World

Resistance to ChangeResistance to Change

Direct Costs

Saving Face


Forces forForces for

ChangeChange

Fear of the Unknown

Breaking Routines

Incongruent Systems

Incongruent Team Dynamics

Creating an Urgency for ChangeCreating an Urgency for Change

Need to motivate employees to change

Most difficult when organization is doing well

Must be real, not contrived


Must be real, not contrived

Customer-driven change

�Adverse consequences for firm

�Human element energizes employees

Reducing Restraining Forces at UnileverReducing Restraining Forces at Unilever

Gary Calveley (right) brought in

team coaches to train

employees throughout the

process of changing Unilever’s

Elida Faberge factory into


Elida Faberge factory into

Europe’s best factory. A

theatrical production helped to

communicate the changes that

Calveley was trying to achieve

through coaching.

Dean Smith/The Camera Crew

MinimizingMinimizing

CommunicationCommunication

TrainingTrainingCoercionCoercion

Minimizing Resistance to ChangeMinimizing Resistance to Change


MinimizingMinimizingResistanceResistanceto Changeto Change EmployeeEmployee

InvolvementInvolvement

StressStressManagementManagement

NegotiationNegotiation

Refreezing the Desired ConditionsRefreezing the Desired Conditions

Creating organizational systems and team

dynamics to reinforce desired changes

� alter rewards to reinforce new behaviors

� new information systems guide new behaviors


� new information systems guide new behaviors

� recalibrate and introduce feedback systems to

focus on new priorities

Strategic Vision & Change AgentsStrategic Vision & Change Agents

Strategic Vision and Change

�Need vision of desired future state

�Minimizes employee fear of the unknown

�Clarifies role perceptions


Change Agents

�Possess knowledge and power to facilitate the

change effort

�Usually internal change champion

�Need to be transformational leaders

Conditions for Diffusing ChangeConditions for Diffusing Change

Successful pilot study

Favorable publicity

Top management support


Top management support

Labor union involvement

Diffusion strategy described well

Pilot program people moved around

Organization Development DefinedOrganization Development Defined

A planned system wide effort, managed from

the top with the assistance of a change

agent, that uses behavioral science


agent, that uses behavioral science

knowledge to improve organizational

effectiveness.

EstablishEstablishClientClient--

ConsultantConsultantRelationsRelations

Action Research ProcessAction Research Process

DiagnoseDiagnoseIntroduceIntroduce

Evaluate/Evaluate/


DisengageDisengageConsultant’sConsultant’s

ServicesServices

DiagnoseDiagnose

Need forNeed for

ChangeChange

IntroduceIntroduce

ChangeChange

Evaluate/Evaluate/

StabilizeStabilize

ChangeChange

OrganizationParallel Learning Structure

Parallel Learning StructuresParallel Learning Structures


Appreciative Inquiry at Hunter DouglasAppreciative Inquiry at Hunter Douglas

The Hunter Douglas Window

Fashions Division in Colorado

relied on appreciative inquiry as

well as a search conference to


create a collective vision, re-

instill a sense of community

among employees, and build

leadership within the company. Courtesy of Amanda Trotsen-Bloom

What is Appreciative Inquiry?What is Appreciative Inquiry?

Directs the group’s attention

away from its own problems

and focuses participants on

the group’s potential and

positive elements.


positive elements.

Reframes relationships

around the positive rather

than being problem orientedCourtesy of Amanda Trotsen-Bloom

DiscoveryDiscovery DreamingDreaming

Forming Forming

DesigningDesigning

Engaging in Engaging in

DeliveringDelivering

Developing Developing

Appreciative Inquiry ProcessAppreciative Inquiry Process


Discovering Discovering

the best of the best of

“what is”“what is”

Forming Forming

ideas about ideas about

“what might “what might

be”be”

Engaging in Engaging in

dialogue dialogue

about “what about “what

should be”should be”

Developing Developing

objectives objectives

about “what about “what

will be”will be”

Organization Development Concerns Organization Development Concerns

Cross-Cultural Concerns

�Linear and open conflict assumptions

different from values in some cultures

Ethical Concerns


Ethical Concerns

�Management power

�Employee privacy rights

�Employee self-esteem

�Consultant’s role

Organizational Organizational Change and Change and Organizational Organizational Change and Change and

C H A P T E RC H A P T E R 1616


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