Managing Change - Angelfire: Welcome to Angelfire · · 2005-09-19reinvigorate the change...

Comportamiento organizacional

M. En C. Eduardo Bustos Farías 1

Managing ChangeManaging Change



OutlineOutline

Forces of ChangeForces of Change•External Forces

•Internal Forces

Models of Planned ChangeModels of Planned Change•Lewin’s Change Model

•A Systems Model of Change

•Kotter’s Eight Steps for Leading Organizational Change

•Organizational Development



Outline (continued)Outline (continued)

Understanding and Managing Resistance to Understanding and Managing Resistance to ChangeChange

•Why People Resist Change in the Workplace•Alternative Strategies for Overcoming Resistance to Change



Forces of ChangeForces of Change

•• Demographic CharacteristicsDemographic Characteristics- the workforce is more diverse- there is a business imperative to effectively manage diversity

•• Technological AdvancementsTechnological Advancements- organizations are increasingly using technology as a means to

improve productivity and market competitiveness•• Market ChangesMarket Changes

- the emergence of a global economy is forcing companies to bemore competitive and to do business differently

- organizations are forging new partnerships and alliances aimedat creating new products and services

•• Social and Political PressuresSocial and Political Pressures- society and its legislative bodies can put pressure onorganizations to change the way they do business – thetobacco industry is a good example

External ForcesExternal Forces: originate outside the organization.



Forces of Change (continued)Forces of Change (continued)

Internal ForcesInternal Forces: originate inside the organization.

•• Human Resource Problems/ProspectsHuman Resource Problems/Prospects- employees’ needs, job satisfaction, organizationalcommitment, behavior, and performance are forces of change

- dissatisfied employees and high levels of absenteeism andturnover are signs that change is needed

•• Managerial Behavior/DecisionsManagerial Behavior/Decisions- the level of conflict between managers and their directreports is a force for change

- inappropriate leader behavior may result in employeeproblems requiring change

- inequitable reward systems are an additional force forchange



A Generic Typology of Organizational Change

Adaptive Change

Innovative Change

Radically Innovative

Change

Introducing a practice new

to the industry

Introducing a practice new

to the organization

Reintroducing a familiar practice

Degree of complexity,cost, and uncertaintyPotential for resistance to change

Low High



LewinLewin’’ss Change ModelChange Model

••RefreezingRefreezing- Helps employees integrate the changed behavior or

attitude into their normal way of doing things- Positive reinforcement is used to reinforce the desired

change- Coaching and modeling help reinforce the stability of

change

••UnfreezingUnfreezing- Creates the motivation to change- Encourages the replacement of old behaviors and attitudes with

those desired by management- Entails devising ways to reduce barriers to change- Creates psychological safety

•• ChangingChanging- Provides new information, new behavioral models, or new ways of looking at things- Helps employees learn new concepts or points of view- Role models, mentors, experts, benchmarking results, and

training are useful mechanisms to facilitate change



A Systems Model of ChangeA Systems Model of ChangeTarget Elements of ChangeTarget Elements of Change

OrganizingArrangements

Goals Social Factors

Methods

People

Internal* Strengths

* WeaknessesExternal

* Opportunities* Threats

* OrganizationalLevel

* Department/group level* Individual

level

InputsInputs OutputsOutputsSt

rate

gySt

rate

gy



KotterKotter’’ss Steps for Leading Steps for Leading Organizational ChangeOrganizational Change

StepStep DescriptionDescriptionEstablish a senseEstablish a sense Unfreeze the organization by creating aof urgencyof urgency compelling reason for why change is needed.Create the guidingCreate the guiding Create a cross-functional, cross-level group ofcoalitioncoalition people with enough power to lead the change.Develop a visionDevelop a vision Create a vision and strategic plan to guide theand strategyand strategy change process.Communicate theCommunicate the Create and implement a communication strategychange visionchange vision that consistently communicates the new vision

and strategic plan.Empower broadEmpower broad-- Eliminate barriers to change, and use targetbased actionbased action elements of change to transform the

organization. Encourage risk taking andcreative problem-solving.



KotterKotter’’ss Steps for Leading Organizational Steps for Leading Organizational Change (continued)Change (continued)

StepStep DescriptionDescriptionGenerate shortGenerate short-- Plan for and create short-term “wins” orterm winsterm wins improvements. Recognize and reward people

who contribute to the wins.Consolidate gainsConsolidate gains The guiding coalition uses credibility fromand produce moreand produce more short-term wins to create more change.changechange Additional people are brought into the change

process as change cascades throughout theorganization. Attempts are made to reinvigorate the change process.

Anchor newAnchor new Reinforce the changes by highlightingapproaches in theapproaches in the connections between new behaviors and cultureculture processes and organizational success. Develop

methods to ensure leadership development andsuccesses.



Organizational Development

Organizational Organizational DevelopmentDevelopment a set of techniques or tools that are used to implement organizational change



Characteristics of OrganizationCharacteristics of OrganizationDevelopment (OD)Development (OD)

•• OD involves profound changeOD involves profound change•• OD is value loadedOD is value loaded•• OD is a diagnosis/prescription cycleOD is a diagnosis/prescription cycle•• OD is processOD is process--orientedoriented



Resistance To ChangeResistance To Change

Resistance to ChangeResistance to Change:: an emotional/behavioral response to real or imagined work change.

The leading reasons why people resist change are:The leading reasons why people resist change are:• An individual’s predisposition toward change• Surprise and fear of the unknown• Climate of mistrust• Fear of failure• Loss of status and/or job security



Resistance to Change (cont)Resistance to Change (cont)

Leading Reasons Why People Resist Change (cont):Leading Reasons Why People Resist Change (cont):•Peer pressure•Disruption of cultural traditions and/or group relationships•Personality conflicts•Lack of tact and/or poor timing•Nonreinforcing reward systems

For Class DiscussionFor Class Discussion:: What do you think are the top three reasons people resist change?



Assessing an OrganizationAssessing an Organization’’s s Readiness for ChangeReadiness for Change

• Why is readiness for change an important consideration?

• What survey questions resulted in the lowest readiness for change? Why did this occur?

• What can managers do to prepare an organization for change?

Strategies for Overcoming Resistance Strategies for Overcoming Resistance to Changeto Change

DrawbacksDrawbacks

AdvantagesAdvantages

Commonly Commonly Used in Used in SituationsSituations

Can be very time consuming if participators design an inappropriate change

People who participate will be committed to implementing change, and any relevant information they have will be integrated into the change plan

Where the initiators do not have all the information they need to design the change and where others have considerable power to resist

Participation + Involvement Participation + Involvement

Can be very time consuming if lots of people are involved

Once persuaded, people will often help with the implementation of the change

Where there is a lack of information or inaccurate information and analysis

Education + CommunicationEducation + CommunicationApproachApproach

Strategies for Overcoming Resistance Strategies for Overcoming Resistance to Change (continued)to Change (continued)

DrawbacksDrawbacks



Can be too expensive in many cases if alerts others to negotiate for compliance

Sometimes it is a relatively easy way to avoid major resistance

Where someone or some group will clearly lose out in a change and where that group has considerable power to resist

Negotiation + Agreement Negotiation + Agreement

Can be time consuming, expensive, and still fail

No other approach works as well with adjustment problems

Where people are resisting because of adjustment problems

Facilitation + SupportFacilitation + SupportApproachApproach

Strategies for Overcoming Resistance Strategies for Overcoming Resistance to Change (continued)to Change (continued)

DrawbacksDrawbacks



Can be risky if it leaves people mad at the initiators

It is speedy and can overcome any kind of resistance

Where speed is essential and where the change initiators possess considerable power

Explicit + Implicit Coercion Explicit + Implicit Coercion

Can lead to future problems if people feel manipulated

It can be a relatively quick and inexpensive solution to resistance problems

Where other tactics will not work or are too expensive

Manipulation + CoManipulation + Co--optationoptationApproachApproach



Managing Planned ChangeChangeMaking things different. Goals of Planned

Change:

Improving the ability of the organization to adapt to changes in its environment.

Changing the behavior of individuals and groups in the organization.

Goals of Planned Change:

Improving the ability of the organization to adapt to changes in its environment.

Changing the behavior of individuals and groups in the organization.

Planned ChangeActivities that are intentional and goal oriented.

Change AgentsPersons who act as catalysts and assume the responsibility for managing change activities.



Resistance to ChangeForms of Resistance to Change

Overt and immediate

Voicing complaints, engaging in job actions

Implicit and deferred– Loss of employee loyalty and motivation,

increased errors or mistakes, increased absenteeism



Overcoming Resistance to Change

Tactics for dealing with resistance to change:

• Education and communication

• Participation

• Facilitation and support

• Negotiation

• Manipulation and cooptation

• Coercion

Tactics for dealing with resistance to change:

• Education and communication

• Participation

• Facilitation and support

• Negotiation

• Manipulation and cooptation

• Coercion



The Politics of Change

Impetus for change is likely to come from outside change agents.

Internal change agents are most threatened by their loss of status in the organization.

Long-time power holders tend to implement only incremental change.

The outcomes of power struggles in the organization will determine the speed and quality of change.



Lewin’s Three-Step Change Model

UnfreezingChange efforts to overcome the pressures of both individual resistance and group conformity.

RefreezingStabilizing a change intervention by balancing driving and restraining forces.

Restraining ForcesForces that hinder movement from the existing equilibrium.

Driving ForcesForces that direct behavior away from the status quo.



Action ResearchAction Research

A change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicate.

Process Steps:1. Diagnosis2. Analysis3. Feedback4. Action5. Evaluation

Process Steps:1. Diagnosis2. Analysis3. Feedback4. Action5. Evaluation

Action research benefits:

Problem-focused rather than solution-centered.

Heavy employee involvement reduces resistance to change.

Action research benefits:

Problem-focused rather than solution-centered.

Heavy employee involvement reduces resistance to change.



Organizational Development

Organizational Development (OD)

A collection of planned interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-being.

OD Values:1. Respect for people2. Trust and support3. Power equalization4. Confrontation5. Participation

OD Values:1. Respect for people2. Trust and support3. Power equalization4. Confrontation5. Participation



Organizational Development Techniques

Sensitivity Training

Training groups (T-groups) that seek to change behavior through unstructured group interaction.

Provides increased awareness of others and self.

Increases empathy with others, improves listening skills, greater openess, and increased tolerance for others.



Organizational Development Techniques (cont’d)

Survey Feedback Approach

The use of questionnaires to identify discrepancies among member perceptions; discussion follows and remedies are suggested.

Process Consultation (PC)

A consultant gives a client insights into what is going on around the client, within the client, and between the client and other people; identifies processes that need improvement.




Team Building

High interaction among team members to increase trust and openness.

Team Building Activities:

• Goal and priority setting.

• Developing interpersonal relations.

• Role analysis to each member’s role and responsibilities.

• Team process analysis.

Team Building Activities:

• Goal and priority setting.

• Developing interpersonal relations.

• Role analysis to each member’s role and responsibilities.

• Team process analysis.




Intergroup Development

OD efforts to change the attitudes, stereotypes, and perceptions that groups have of each other.

Intergroup Problem Solving:

• Groups independently develop lists of perceptions.

• Share and discuss lists.

• Look for causes of misperceptions.

• Work to develop integrative solutions.

Intergroup Problem Solving:Intergroup Problem Solving:

•• Groups independently develop lists of perceptions.Groups independently develop lists of perceptions.

•• Share and discuss lists.Share and discuss lists.

•• Look for causes of misperceptions.Look for causes of misperceptions.

•• Work to develop integrative solutions.Work to develop integrative solutions.




Appreciative Inquiry

Seeks to identify the unique qualities and special strengths of an organization, which can then be built on to improve performance.

Appreciative Inquiry (AI):

• Discovery: recalling the strengths of the organization.

• Dreaming: speculation on the future of the organization.

• Design: finding a common vision.

• Destiny: deciding how to fulfill the dream.

Appreciative Inquiry (AI):

• Discovery: recalling the strengths of the organization.

• Dreaming: speculation on the future of the organization.

• Design: finding a common vision.

• Destiny: deciding how to fulfill the dream.



Contemporary Change Issues For Today’s Managers

How are changes in technology affecting the work lives of employees?

What can managers do to help their organizations become more innovative?

How do managers create organizations that continually learn and adapt?

Is managing change culture-bound?



Technology in the Workplace

Continuous Improvement Processes– Good isn’t good enough.

– Focus is on constantly reducing the variability in the organizational processes to produce more uniform products and services.

Lowers costs and raises quality.

Increases customer satisfaction.

– Organizational impactAdditional stress on employees to constantly excel.

Requires constant change in organization.



Technology in the Workplace

Process Reengineering– “Starting all over”

– Rethinking and redesigning organizational processes to produce more uniform products and services.

Identifying the organization’s distinctive competencies—what it does best.

Assessing core processes that add value to the organization’s distinctive competencies.

Reorganizing horizontally by process using cross-functional and self-managed teams.



Contemporary Change Issues for Today’s Managers: Stimulating Innovation

Sources of Innovation:• Structural variables

• Organic structures• Long-tenured management• Slack resources• Interunit communication

• Organization’s culture• Human resources

Sources of Innovation:Sources of Innovation:•• Structural variablesStructural variables

•• Organic structuresOrganic structures•• LongLong--tenured managementtenured management•• Slack resourcesSlack resources•• Interunit communicationInterunit communication

•• OrganizationOrganization’’s cultures culture•• Human resourcesHuman resources

Innovation

A new idea applied to initiating or improving a product, process, or service.



Contemporary Change Issues for Today’s Managers: Stimulating Innovation (cont’d)

Idea Champions

Individuals who take an innovation and actively and enthusiastically promote the idea, build support, overcome resistance, and ensure that the idea is implemented.



Mastering Change: It’s Culture-Bound

Questions for culture-bound organizations:1. Do people believe change is even possible?

2. How long will it take to bring about change in the organization?

3. Is resistance to change greater in this organization due to the culture of the society in which it operates?

4. How will the societal culture affect efforts to implement change?

5. How will idea champions in this organization go about gathering support for innovation efforts?

Questions for culture-bound organizations:1. Do people believe change is even possible?

2. How long will it take to bring about change in the organization?

3. Is resistance to change greater in this organization due to the culture of the society in which it operates?

4. How will the societal culture affect efforts to implement change?

5. How will idea champions in this organization go about gathering support for innovation efforts?

Managing Change - Angelfire: Welcome to Angelfire · · 2005-09-19reinvigorate the change...

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