Copyright © 2013 Pearson Education, Inc., publishing as Prentice Hall14-1 Managing Behavior In...

Copyright © 2013 Pearson Education, Inc., publishing as Prentice Hall 14-1

Managing Behavior In Organizations

Sixth Edition

Jerald Greenberg

Managing Organizational Change: Strategic Planning and Organizational Development

Chapter Fourteen

Copyright © 2013 Pearson Education, Inc., publishing as Prentice Hall14-3

Learning Objectives DISTINGUISH among the major targets of organizational change

IDENTIFY the major sources of unplanned organizational change

DESCRIBE what is meant by strategic planning and IDENTIFY the steps in the strategic planning process

DESCRIBE why people are resistant to change in organizations and ways in which this resistance may be overcome

DEFINE organizational development (OD) and DESCRIBE five OD techniques

DESCRIBE how OD is affected by national culture and EXPLAIN the ethical concerns that have been voiced about using OD techniques


Three Good Reasons Why You Should Care About . . . Organizational

Change

1. The success – even the mere survival – of companies depends on their ability to adapt to change.

2. For organizations to be effective, employees’ resistance to change must be overcome.

3. Organizational development techniques can help people adapt to change.


Organizational change – planned or unplanned transformation in an organization’s structure, technology, and/or people

Research shows that leaders of successful organizations support change 94 percent of the time, whereas others support change only 76 percent of the time.

Change or Disappear


Why Are Things Changing?

5 % Consumer awareness

25% Innovations in products or services

18% Ease of getting information

12% Availability of capital

11% Reduced trade barriers

11% Availability of talented labor

10% Technological changes

8% Competitive threats


Three prospective targets:Changes in organizational structureChanges in technologyChanges in people

• Unfreezing – recognizing the need for change• Doomsday management – creating a sense of

urgency in employees by introducing the idea that there is an impending crisis

• Changing – implementing planned change• Refreezing – accepting newly changed state

Targets: What is Changed?


First-order change - change that is continuous in nature and involves no major shifts in how an organization operates

Second-order change - radical change involving major shifts in different levels of the origination and different aspects of the business

How Much is Changed?


Shifting employee demographicsPerformance gaps Government regulationGlobal competitionFluctuating economic conditionsAdvances in technology

Why Does Unplanned Change Occur?


Technology and the Way We Work


• Strategic planning – the process of formulating, implementing, and evaluating changes that enable an organization to achieve its objectives– Basic assumptions: Strategic planning is deliberateStrategic planning occurs when current

objectives no longer can be metNew organizational objectives require new

strategic plans

Strategic Planning


Most strategic plans involve:Products and servicesOrganizational structure

Outsourcing – hiring outside firms to perform noncore business

Offshoring – using outsourcing services of overseas companies

Making Strategic Plans…


Major Forms of Offshoring


Popular Competitive Strategies


Individual Barriers to Change

Economic insecurityFear of the unknownThreats to social relationshipsHabitFailure to recognize the need for

change


Organizational Barriers to Change

Structural inertiaWork group inertiaThreats to existing balance of powerPreviously unsuccessful change

efforts


Change is more likely when:There is dissatisfaction with the

current conditionsThere are desirable alternatives

availableThere are plans for achieving that

alternative

When Will Change Occur?


Overcoming Resistance to Change

Gain leadership support Identify and neutralize change

resistersEducate the workforce“Sell” the need for change Involve employees in the change

effortsCreate a “learning organization”


Responding to Change Resisters


Organizational development (OD) - set of social science techniques designed to plan and implement change in work settings for purposes of enhancing the personal development of individuals and improving the effectiveness of organizational functioning– OD practitioners ― individuals, usually from

outside the organization, who coordinate and facilitate an organization’s change efforts

– OD interventions – planned organizational change

Organizational Development


Survey Feedback

1. Collect data: Employees complete surveys to provide information about problems in their organization

2. Give feedback: Feelings about the organization are summarized and shared with all employees

3. Develop action plans: Through group discussions, specific plans for overcoming problems are identified and developed


Appreciative Inquiry

Discovery: Identifying the positive aspects of the organization

Dreaming: Envisioning what “might be”

Designing: Talking with others about what “should be”

Delivering: Instituting a plan for delivering on ideas


Action lab – teams of participants work off-site to develop and implement new ways of solving organizational problems by focusing on the ineffectiveness of current methods

Action Labs


Quality of work life (QWL) programs – designed to increase organizational output and improve quality by involving employees in the decisions that affect them on the job– Quality circles (QCs)

Quality of Work Life Programs


Critical Questions about OD

Is OD inherently unethical?Does OD really work?Is OD dependent on national

culture?


The Ethics of OD OD techniques impose the values of the

organization on the individual without taking the individual’s own attitudes into account.

The OD process does not provide any free choice on the part of the employees.

The unequal power relationship between an organization and its employees makes it possible for the true intent of OD techniques to be misrepresented.

OD is only a tool and as such is not inherently good or evil.


OD interventions generally are more effective among blue-collar employees than among white-collar employees.

The beneficial effects of OD can be enhanced by using a combination of several techniques instead of any single one.

To be effective, OD techniques must have the support of top management; the more strongly OD programs are supported from the top, the more successful they are.

OD Effectiveness

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