Organizational Change McGraw-Hill/Irwin McShane/Von Glinow OB 5e Copyright © 2010 by The...
-
Upload
nickolas-bedingfield -
Category
Documents
-
view
227 -
download
2
Transcript of Organizational Change McGraw-Hill/Irwin McShane/Von Glinow OB 5e Copyright © 2010 by The...
Organizational Change
McGraw-Hill/IrwinMcShane/Von Glinow OB 5e Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
15-2
Umpqua Umpqua Bank’sBank’s
Umpqua Bank has become the largest regional community bank in the Pacific Northwest by applying effective organizational change practices
OrganizationalChange
15-3
Lewin’s Force Field Analysis Model
Developed by Kurt Lewin
Driving forces• Push organizations toward change• External forces or leader’s vision
Restraining forces• Resistance to change -- employee
behaviors that block the change process
DrivingForces
RestrainingForces
15-4
DesiredConditions
CurrentConditions
BeforeChange
AfterChange
Force Field Analysis Model
DuringChange
DrivingForces
RestrainingForces Driving
Forces
RestrainingForces
DrivingForces
RestrainingForces
15-5
Not Hoppy About Change
Mina Ishiwatari(front) wanted to
improve Hoppy drink’s brand image,
but most staff didn’t want to change.
“I tried to take a new marketing
approach to change the image of
Hoppy . . . but no one would listen to
me.” She improved Hoppy’s
popularity with limited support or
budget. Most employees who
opposed Ishiwatari’s changes have
since left the company.
15-6
Restraining Forces (Resistance to Change)Many forms of resistance
• e.g., complaints, absenteeism, passive noncompliance
View resistance as a resource1. Symptoms of deeper problems in
the change process
2. A form of constructive conflict -- may improve decisions in the change process
3. A form of voice – helps procedural justice
15-7
Why People Resist Change
1. Direct costs• Losing something of value due to change
2. Saving face• Accepting change acknowledges own imperfection,
past wrongdoing
3. Fear of the unknown• Risk of personal loss• Concern about being unable to adjust
15-8
Why People Resist Change(con’t)
4. Breaking routines• Organizational unlearning is part of change process• But past practices/habits are valued by employees
due to comfort, low cognitive effort
5. Incongruent organizational systems• Systems/structures reinforce status quo• Career, reward, power, communication systems
6. Incongruent team dynamics• Norms contrary to desired change
15-9
Creating an Urgency for Change
Inform employees about driving forces
Most difficult when organization is doing well
Customer-driven change• Adverse consequences for firm• Human element energizes employees
Sometimes need to create urgency to change without external drivers• Requires persuasive influence• Use positive vision rather than threats
15-10
Minimizing Resistance to Change
Highest priority and first strategy for change
Improves urgency to change Reduces uncertainty (fear of
unknown) Problems -- time consuming and
costly
Communication
Learning
Involvement
Stress Mgt
Coercion
Negotiation
15-11
Minimizing Resistance to Change
Provides new knowledge/skills Includes coaching and other forms
of learning Helps break old routines and
adopt new roles Problems -- potentially time
consuming and costly
Communication
Involvement
Stress Mgt
Coercion
Negotiation
Learning
15-12
Minimizing Resistance to Change
Employees participate in change process
Helps saving face and reducing fear of unknown
Includes task forces, future search events
Problems -- time-consuming, potential conflict
Learning
Involvement
Stress Mgt
Coercion
Negotiation
Involvement
Communication
15-13
Minimizing Resistance to Change
When communication, learning, and involvement are not enough to minimize stress
Potential benefits• More motivation to change• Less fear of unknown• Fewer direct costs
Problems -- time-consuming, expensive, doesn’t help everyone
Learning
Involvement
Coercion
Negotiation
Stress Mgt
Communication
15-14
Minimizing Resistance to Change
Influence by exchange -- reduces direct costs
May be necessary when people clearly lose something and won’t otherwise support change
Problems• Expensive• Gains compliance, not commitment
Learning
Involvement
Stress Mgt
Coercion
Communication
Negotiation
15-15
Minimizing Resistance to Change
When all else fails Assertive influence Radical form of “unlearning” Problems
• Reduces trust• May create more subtle resistance• Encourage politics to protect jobCoercion
Learning
Involvement
Communication
Stress Mgt
Negotiation
15-16
Refreezing the Desired Conditions
“When you are leading for growth, you know you are going to disrupt comfortable routines and ask for new behavior, new priorities, new skills… Even when we want to change, and do change, we tend to relax and the rubber band snaps us back into our comfort zones.”
Ray Davis, CEO, Umpqua Bank
15-17
Refreezing the Desired Conditions
Realigning organizational systems and team dynamics with the desired changes• Alter rewards to reinforce new behaviors• Change career paths • Revise information systems
15-18
Change Agents
Change agent -- anyone who possesses enough knowledge and power to guide and facilitate the change effort
Engage in transformational leadership• Develop the change vision• Communicate the vision• Act consistently with the vision• Build commitment to the vision
15-19
Strategic Vision & Change
Need a vision of the desired future state Identifies critical success factors for change Minimizes employee fear of the unknown Clarifies role perceptions
15-20
Diffusion of Change
Begin change as pilot projects
Effective diffusion considers MARS model• Motivation – pilot project is successful, reward
diffusion of pilot project
• Ability – Train employees to adopt pilot project
• Role perceptions –Translate pilot project to new situations
• Situational factors – Provide resources to implement pilot project elsewhere
15-21
Action Research Approach
Action orientation and research orientation• Action – to achieve the goal of change• Research – testing application of concepts
Action research principles1.Open systems perspective
2.Highly participative process
3.Data-driven, problem-oriented process
15-22
Formclient-
consultantrelations
Disengageconsultant’s
services
Action Research Process
Diagnoseneed forchange
Introduceintervention
Evaluate/stabilizechange
15-23
BBC Takes the Appreciative Journey
To become a more creative organization, the British Broadcasting Company sponsored an appreciative inquiry process of employee consultation, called Just Imagine. “It gave me a powerful mandate for change,” said BBC’s chief executive at the time.
15-24
Appreciative Inquiry Approach
Frames change around positive and possible future, rather than traditional problem focus.
Application of positive organizational behavior
15-25
Four-D Model of Appreciative Inquiry
DesigningDesigningDesigningDesigning
Engaging in dialogue about “what should be”
Engaging in dialogue about “what should be”
DreamingDreamingDreamingDreaming
Forming ideas about “what might be”
Forming ideas about “what might be”
DiscoveryDiscoveryDiscoveryDiscovery
Discovering the best of “what is
Discovering the best of “what is
DeliveringDeliveringDeliveringDelivering
Developing objectives about “what will be”
Developing objectives about “what will be”
15-26
Large Group Interventions Future search, open space, and other
interventions that involve “the whole system” • Large group sessions• May last a few days• High involvement with minimal structure
Limitations of large group interventions• Limited opportunity to contribute• Risk that a few people will dominate• Focus on common ground may hide differences• Generates high expectations about ideal future
15-27
Parallel Learning Structure Approach Highly participative social structures
Members representative across the formal hierarchy
Sufficiently free from firm’s constraints
Develop solutions for organizational change which are then applied back into the larger organization
15-28
OrganizationParallelStructure
Parallel Learning Structures
15-29
Cross-Cultural and Ethical Concerns
Cross-Cultural Concerns• Linear and open conflict assumptions different from
values in some cultures
Ethical Concerns• Privacy rights of individuals• Management power• Individuals’ self-esteem
15-30
Organizations are About People
“Take away my people, but leave my factories, and soon grass will grow on the factory floors. Take away my factories, but leave my people, and soon we will have a new and better factory.”
Andrew Carnegie (1835-1919)
Source: Library of Congress
Discussion ofActivity 15.3Strategic Change Incidents
McGraw-Hill/IrwinMcShane/Von Glinow OB 5e
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
15-32
Scenario #1: “Greener Telco”
Scenario #1 refers to Bell Canada’s Zero Waste program, which successfully changed employee behaviorby altering the causes of thosebehaviors.
Pilot project in Toronto – 12 floor building of 1000 staff reduced waste from 1800 lb per day to just 75 lb per day within 3 years.
Courtesy of Bell Canada
15-33
Bell Canada’s Change StrategyRelied on the MARS model to alter behavior:
Motivation -- employee involvement, respected steering committee (photo)
Ability -- taught paper reduction, email, food disposal
Role perceptions – learned importance of reducing waste
Situation -- created barriers to wasteful behavior, eg. removed garbage bins
Courtesy of Bell Canada
15-34
Scenario #2: “Go Forward Airline”
Scenario #2 refers to
Continental Airline’s “Go
Forward” change strategy,
which catapulted the
company “from worst to first”
within a couple of years.
15-35
Continental Airlines’ Change Strategy Communicate, communicate,
communicate
Introduced 15 performance measures
Established stretch goals (repainting planes in 6 months)
Replaced 50 of 61 executives
Rewarded new goals (on-time arrival, stock price)
Customers as drivers of change
Organizational Change
McGraw-Hill/IrwinMcShane/Von Glinow OB 5e
Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.