Change Catlyst

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Chapter 18

Organizational Change

and Development


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Learning Goals

Discuss the pressures on managers to

change their organizations

Describe different types of organizational

change

Explain the phases and targets of planned

organizational change


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Learning Goals (Cont.)

List some reasons for resistance to change

in organizations

Describe the organizational development

techniques managers can use to change their

organizations

Understand some international aspects of

organizational change and development


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Chapter Overview Introduction

Forces For and Against Change

Unplanned and Planned Organizational

Change

Targets of Organizational Change

Planned Organizational Change

Resistance to Change


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Chapter Overview (Cont.) Organizational Development

International Aspects of Organizational

Change and Development

Ethical Issues About Organizational Change

and Development


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Introduction Organizational change involves movement

from the present state of the organization to

some future or target state Future state can include a new strategy, new

technology, or changes in the organizationsculture


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Introduction (Cont.)

TimeA A

Organizational change: moving from thepresent state of the organization to some

future or target state.


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Introduction (Cont.) Many sources of pressure on managers to

change their organizations exist and will

continue in the future Identify the pressures on organizations and

their managers to change

Want to know the probable effects on youas a member of a changing system


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Introduction (Cont.) Know how to deliberately change an

organization

Understand the sources of resistance to

change

Learn how to manage the change process to

reduce resistance


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Forces For and Against Change External forces for change

Competitors and markets

Acquisition threats

International: global markets

Workforce diversity

Quality management


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(Cont.) Internal forces for change

High dissatisfaction

Felt stress

Loss of control of processes

Dysfunctionally high conflict

Slow decision making

High turnover and absenteeism

Communication dysfunctions


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(Cont.) Forces against change

Internal: resistance to change from individuals

and groups

External: special interest groups such as

consumer groups and unions

View the forces for and against change as

a force field working on the organization


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(Cont.)

Present state of

the organizationDesired state of

the organization

A ATime

Forces forchange

Forces against

change

A Force Field

Text book Figure 18.1


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Unplanned and Planned

Organizational Change Unplanned organizational change: forces

for change overwhelm resistance to change

Planned organizational change: A

deliberate, systematic change effort


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Organizational Change (Cont.) Unplanned organizational change

Forces for change overwhelm resistance to

change Usually unexpected

Chaotic, uncontrolled change effects

Example: economic changes leading toreductions in workforce


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Organizational Change (Cont.) Planned organizational change

A deliberate, systematic change effort

Change organizational design, information

systems, job design, and peoples behavior

Although managers try to follow a plan, the

change does not always move smoothly The change effort often hits blockages, causing

managers to rethink their goals and plan


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Organizational Change (Cont.) Planned organizational change (cont.)

Phases

Define the desired future state of the organization Diagnose the present state of the organization

Move the organization to the desired future state

A change agenthelps managers to bring about

planned change. An external or internalconsultant


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Targets of Planned

Organizational Change Organizational culture

Decision processes

Communication processes

Job design

Organizational design


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Targets of Planned

Organizational Change (Cont.) Technology

Strategy

Managers should choose the target only after careful

assessment of the current state of the organization

and the need for change.


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Targets of Planned

Organizational Change (Cont.)

Externalenvironment Strategy

Targets

CultureTechnology

Organizational design

Job design

Mission

A model for thinking about planned organizational change


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Planned Organizational Change Reasons for planned organizational change

Managers react to environmental shifts

They anticipate the future state of the externalenvironment

Often a difficult task. As noted by anorganizational change scholar, planned

organization change is messy and never as clearas we have written in our books and articles


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(Cont.) Models of planned organizational change

Evolutionary model

Incremental change

Example: changing the organizations pay scale to

stay market competitive

Revolutionary model

Change many parts of an organization

Example: strategic shift


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(Cont.) Evolutionary model of organizational

change

Three phases with no distinct boundaries. Eachphase blends into the next phase

A manager or other change agent develops a needfor change among those affected

The change agent then tries to move theorganization or part of it toward the changed state

The change agent tries to stabilize the change andmake it a part of the organization


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(Cont.) Evolutionary model of organizational

change

Sees change happening in small bits that add to

a total amount of change

Unexpected events can occur along the way,

forcing a return to an earlier phase


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(Cont.) Revolutionary model of organizational

change Organizational change unfolds over long

periods of stability followed by bursts of majorchange activities

Uses three concepts Equilibrium period: organization moves steadily

toward its mission and goals Revolutionary period: a major change in the

strategic direction of the organization

Deep structures: enduring features of theorganization that let it succeed


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change (cont.)

Two events trigger a revolutionary period

Dissatisfaction with the organization's performance

Strong feelings among organization members that it

is time for change


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change (cont.)

Strong feelings among organization members

that it is time for change

Organization members feel uneasy with the current

equilibrium period

Develop feelings of little forward movement

Characterizes organizations that must shift direction


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Resistance to Change No matter what the target, changes affect

the social system of an organization

People develop long-standing, familiar

patterns of social interaction

Strong resistance develops when

organizational change affects these socialnetworks


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Resistance to Change (Cont.) Resistance can take many forms

Lack of cooperation with the change effort

Sabotage of the change effort

Dysfunctionally high conflict levels


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Resistance to Change (Cont.) Reasons for resistance to change

Perceive the loss of something valued such as

social status

Misunderstand the goal of the change

Distrust the change agent

No common perception of the value of thechange

Low tolerance for change


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Resistance to Change (Cont.) Managers orientation to resistance to

change (cont.)

Absence of resistance

Also a signal to get more information

Low commitment to the change can make thechange less effective

Resisters can focus the change agents on potentiallydysfunctional aspects of a proposed change


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Resistance to Change (Cont.) Managing the change process to reduce

resistance

Use change agents with characteristics similarto the change target

Use dramatic ceremonies and symbols to signaldisengagement from the past

Widely communicate information about thechange


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resistance (cont.)

Involve those affected by the change Commit enough resources

Negotiation may be necessary, when a powerful

person or group is a potential source of

resistance


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resistance (cont.)

Cooptation: a political tactic that aims to gainendorsement of the change from importantindividuals or groups

Sometimes no choice other than to force change

onto the target system


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Organizational Development Organizational development is a long-

term, systematic, and prescriptive approach

to planned organizational change Although it uses a system-wide view, it can

focus on single subsystems of anorganization

Applies the theories and concepts of thesocial and behavioral sciences toorganizational change


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Phases of Organizational

Development (Cont.) Organizational development unfolds in a

series of phases

These are phases, not steps, because no

clear boundaries exist between them

Phases can repeat. For example, during the

evaluation phase, managers may discover aneed for more data from the diagnosis stage

See text book Figure 18.2


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Development (Cont.)

Contracting

Develop an agreement between the consultantand client

Can range from an oral agreement to a legallybinding agreement

Describes mutual expectations and each partysduties

Not static. Subject to renegotiation as theorganizational development program unfolds


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Development (Cont.)

Diagnosis

Consultant gets information about the clientsystem and diagnoses its current state

Observe the clients behavior and reactions

Observe physical characteristics of system

Systematic data collection using surveys, interviews,and company records

Consultant summarizes this phases results for

feedback to the client system


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Development (Cont.)

Planning the change

A collaborative activity between the consultantand client system

Identify alternative courses of action and the

effects of each

Lay out the steps in the change program

Client decides the nature of the change

program--not the consultant


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Development (Cont.)

Intervention Collaborative intervention to move the client

system to the desired future state Includes job and organizational design changes,

conflict reduction program, and the like. Seethe Organizational Development

Interventions section of the chapter Consultants role: help the intervention andforecast dysfunctional results

Earlier client involvement helps reduceresistance to change in the intervention phase


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Development (Cont.)

Evaluation

Focuses on whether the organizationaldevelopment effort had the desired effect

Ranges from simply asking how the client feels

to a well-designed research effort

Done independently of the consultant Should also give the client system information

about the next steps to take


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Organizational Development

Interventions (Cont.) Human process interventions

Focus on interpersonal, intra-group, and

intergroup processes

Includes conflict, communication and decision

making

Goal: improve human processes to get moreeffective organizational functioning


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Interventions (Cont.) Structural and technological interventions

Focus on organizational design, job design, and

the addition of new technology

New technology focuses on improving

organizational processes

Goal: improve human productivity andorganizational effectiveness


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Interventions (Cont.) Human resource management

interventions

Draws on the human resource management orpersonnel practices of an organization

Includes motivation and rewards, careerplanning and development, and stress

management Goal: change individual behavior and

performance to get improved organizationaleffectiveness


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Interventions (Cont.) Multiple interventions have the strongest

effects

Structural/technological interventions andhuman resource management interventionshad the strongest effects

Effects stronger in small organizations thanin large organizations

Survey feedback has weaker effects thanother interventions


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International Aspects of

Organizational Development Intellectual roots of organizational

development are mainly in the United

States, England, northern Europe, andScandinavia

Values and assumptions of organizationaldevelopment consultants likely reflect these

cultural values

Nature of interventions also reflect thesecultural values


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International Aspects ofOrganizational Development

(Cont.) Cultural differences and effect of

organizational development approaches

Latin American workers often accept adirective management style

France and Italy: view organizations ashierarchical systems that use power and

political behavior Sweden and the United States: view

organizations as less hierarchical


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International Aspects of


(Cont.) Cultural differences and effect of

organizational development approaches(cont.)

Conflict management approaches varydepending on tolerance of uncertainty

Tend to use nonconfrontational approaches toconflict reduction


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Ethical Issues About

Organizational Development Ethical dilemmas that can undermine an

organizational development effort

Misrepresentation of consultants capabilities,skills, or experience

Misrepresentation of clients problems

Data confidentiality and voluntarism in

providing data Full awareness of and consent to the behavioral

changes asked of participants

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