© 2013 Cengage Learning Chapter 18 Managing Change 1.Identify the major external and internal...

© 2013 Cengage Learning

Chapter 18Managing Change

1. Identify the major external and internal forces for change in organizations.

2. Describe how different types of change vary in scope.

3. Discuss methods organizations can use to manage resistance to change.

4. Explain Lewin’s organizational change model.

5. Explain how companies determine the need to conduct an organizational development intervention.

6. Discuss the major group-focused techniques for organization development intervention.

7. Discuss the major individual-focused techniques for organization development intervention.L

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Identify the major external and internal forces for change in organizations.


1 Learning Outcome

Organizational Changes

Planned Change – change resulting from a deliberate decision to alter the organization

Unplanned Change – change that is imposed on the organization and is often unforeseen


External Forces for Change

Globalization WorkforceDiversity

ChangingTechnology

EthicalBehavior


Globalization

AND

Organizations must rethink the most efficient ways to:

Use resourcesDisseminate/gather informationDevelop people

Globalization requires changes in structure and employee mindsets


Workforce

Diversity

Workforce will see:Increased gender diversityIncreased cultural diversityIncreased age diversity


Technological Change

Organizations that fail to keep pace canquickly fall behind.

Innovation promotes associated changes in work relationships and organizationalstructures.


• Organizations must create a culture that encourages ethical behavior.

• Society expects organizations to maintain ethical behavior internally and externally.

EthicalBehavior


Internal Forces for Change

Declining Effectiveness

Changes in Expectations

CrisisChanges in

Work Climate


Describe how different types of change vary in scope.


2 Learning Outcome

Scope of Change

Incremental Change – change of a relatively small scope, such as making small improvements

Strategic Change – change of a larger scale, such as organizational restructuring

Transformational Change – change in which the organization moves to a radically different, and sometimes unknown, future state


The Change Agent

• Individual or group that undertakes the task of introducing and managing a change in an organization.

• Internal or external



Internal Change Agents

Advantages• know past history,

political system, and culture

• must live with results of change so will move carefully

Disadvantages• may be associated

with factions, accused of favoritism

• may be too close to the situation to be objective


External Change Agents

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

Advantages• outsider’s

objective view• impartiality

Disadvantages• limited knowledge of

organization’s history

• may be viewed with suspicion


Discuss methods organizations can use to manage resistance to change.

3 Learning Outcome

Resistance to Change

• Fear of the unknown• Fear of loss• Fear of failure• Disruption of interpersonal

relationships• Personality conflicts• Politics• Cultural assumptions and

values


Dealing with Resistance to Change

• Communication– details– rationale

• Participation in the process– ownership– commitment

• Empathy and support



Explain Lewin’s organizational change model.

4 Learning Outcome

Lewin’s Three-Step Change Model

Unfreezing – involves encouraging individuals to discard old behaviors by shaking up the equilibrium state that maintains the status quo

Moving – new attitudes, values, and behaviors are substituted for old ones

Refreezing – new attitudes, values, and behaviors are established as the new status quo


Force Field Analysis of Decision to Engage in Exercise

Forces for change

Weight gain

Minimally passing

treadmill test

Feel lethargic;

have no energy

Family history of

cardiovascular disease

New, physically demanding job

Forces for status quo

Lack of time

No exercise facility at work

Spouse/partner hates to exercise

No interest in physical activity or sports

Made a grade of D in physical education class

EquilibriumEquilibrium



Applying Lewin’s Model

• Unfreezing: the organization eliminates rewards for current behavior

• Moving: the organization initiates new options and explains their rationale

• Refreezing: organizational culture and formal reward systems encourage the new behaviors

Unfreezing Moving Refreezing

Reducing forcesFor status quo

Developing newattitudes, values,and behaviors

Reinforcing newattitudes, values,and behaviors


Beyond the Book:Testing Your Tolerance for Ambiguity

Read each of the following statements carefully. Then rate each of them in terms of the extent to which you either agree or disagree with the statement using the following scale:

1 2 3 4 5 6 7

Completely Disagree

Completely Agree

Neither Agree nor Disagree

1. An expert who doesn’t come up with a definite answer probably doesn’t know much.2. I would like to live in a foreign country for a while.3. The sooner we all acquire similar values and ideals, the better.4. A good teacher is one who makes you wonder about your way of looking at things.5. I like parties where I know most of the people more than ones where all or most of the people are complete strangers.



6. Teachers or supervisors who hand out vague assignments give a chance for one to show initiative and originality.7. A person who leads an even, regular life in which few surprises or unexpected happenings arise really has a lot to be grateful for.8. Many of our most important decisions are based upon insufficient information.9. There is really no such thing as a problem that can’t be solved.10. People who fit their lives to a schedule probably miss most of the joy of living.11. A good job is one where what is to be done and how it is to be done are always clear.12. It is more fun to tackle a complicated problem than to solve a simple one.13. In the long run, it is possible to get more done by tackling small, simple problems rather than large and complicated ones.14. Often the most interesting and stimulating people are those who don’t mind being different and original.15. What we are used to is always preferable to what is unfamiliar.


Scoring: For even-numbered questions, add the total points. For odd-numbered questions, use reverse scoring and add the total points. (1 becomes 7, 2 becomes 6, etc.)

Interpreting Your Results:

A score of 15 would indicate perfect ambiguity tolerance, while perfect intolerance would yield a score of 105. Typical scores between 20 and 80 are reported, with means of 45. Tested private-sector managers scored 44.6 ± 8.5, while public- and third-sector managers scored 43 ± 20.



Explain how companies determine the need to conduct an organizational development intervention.

5 Learning Outcome


a systematic approach to organizational

improvement that applies behavioral science

theory and research in order to increase individual

and organizational well-being and effectiveness

Organizational Development (OD)



Diagnosis and Needs Analysis

Questions to ask:• 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?

Diagnosis and needs analysis Intervention

Follow-up


Discuss the major group-focused techniques for organization development intervention.

6 Learning Outcome

Group-Focused Techniques

• Survey feedback

• Management by objectives (MBO)

• Product and service quality programs

• Team building

• Process consultation

5



Survey Feedback

A widely used method of intervention whereby employee attitudes are solicited by questionnaire

AnonymousGroup reporting format No repercussionsClear purposeFollow-up


An organization-wide intervention technique of joint goal setting between employees and managers

Initial objectivesPeriodic progress reviews Problem solving to remove obstacles to goal achievement

Management by Objectives


A program that embeds product and service quality excellence into the organizational culture

Raise aspirations about product/service quality

Embed product/service quality excellence in the organizational culture

Quality Program


An intervention designed to improve the effectiveness of a work group

Seek feedbackDiscuss errorsReflect on successes and

failuresExperiment with new ways of

performingClimate of psychological safety

Team Building


An OD method that helps managers and employers improve the processes that are used in organizations

Outside consultant:Enters organizationDefines the relationship Chooses an approachGathers data Diagnoses problemIntervenesLeaves organization

Process Consultation


Discuss the major individual-focused techniques for organization development intervention.

7 Learning Outcome

Individual-Focused Techniques

• Skills training

• Leadership training & development

• Executive coaching

• Role negotiation

• Job redesign

• Health promotion programs

• Career planning


Skills Training

increasing the job knowledge, skills,

and abilities that are necessary to do

a job effectively



A variety of techniques that are designed to enhance individual’s leadership skills

Action learningSimulationBusiness gamesRole-playingCase studies

Leadership Training & Development


A host of techniques for enhancing managers’ skills in an organization

Verbal informationIntellectual skillsAttitudesDevelopment

Executive Coaching


A technique whereby individuals meet and clarify their psychological contract

•Better understanding of what each can be expected to give and receive• Less ambiguity

Role Negotiation


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 capabilities

Redesign jobs to fit new techniques or organization structures

Job Redesign


HealthPromotionPrograms Ex. Stress reduction

education, employee assistance

Match individual’s career aspirations with organizational opportunities

Health and Career

Career Planning

Beyond the Book:When the Perks Are Gone

Because of the global recession, many organizations are removing organizational perks and benefits in order to save money.

No more free lunches, no co-pay health insurance, subsidized child care, etc.

In light of these changes, what can be done to make sure employees stay content and motivated?

• Remember that perks are not essential to the job; i.e., lose the sense of entitlement• Be fair in cutbacks.• Continue gathering with co-workers, even at your own expense. • You are part of the solution – ask yourself “What does my work offer that I can be happy about?”


1.Who is the target of change in this scene?

2. What are the forces for change? Are the forces for change internal or external to the change target?

3. Does the scene show the role of leadership in organizational change? If it does, who is the leader?


Field of Dreams

http://www.thomsonedu.com/resource_uploads/static_resources/0324595840/17821/ch10.html

1. Describe the type of change that Holden’s leaders are managing.

2. What resistance is Holden encountering, especially as the company seeks to design and manufacture highly innovative outerwear garments?

3. Using Kurt Lewin’s change model, give a force field analysis for Holden’s challenges in delivering innovative products. Suggest how the company might overcome resistance and foster permanent change.


Holden Outerwear

http://www.cengage.com/management/webtutor/daft_mgt10e/video/ojt/ch11.html

© 2013 Cengage Learning Chapter 18 Managing Change 1.Identify the major external and internal...

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