Transcript Organizational Behavior 11e

Organization Change
 Organizational change is the process through which an
organisation moves from the present state to an
improved state.
 Change management comprises three elements:
evolution of the firm, its management and organization,
and the people who work for it.
 Three levels of change are observed: individual level,
group level, and organisations.
Nature of Change
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vital if a company were to avoid stagnation;
a process and not an event;
normal and constant;
fast and is likely to increase further in the present competitive
business;
‘directive’, that is, implemented by ‘top down’ management or
‘participative’, that is, involving those parties impacted by change;
is ‘natural’, that is, evolutionary or ‘adaptive’, that is, a reaction to
external circumstances and pressures;
is ‘incremental’, that is continuous small changes or ‘step’, that is,
radical shift from current to new processes; and
is interdependent on organizational environment or culture.3
Types of change
 Evolutionary change and revolutionary change
 Reactive change & proactive change
Forces for Change
Force
Examples
Nature of the workforce
More cultural diversity
Aging population
Many new entrants with inadequate skills
Technology
Faster, cheaper, and more mobile computers
On-line music sharing
Deciphering of the human genetic code
Economic shocks
Rise and fall of stocks
Global economy slowdown
Competition
Global competitors
Mergers and consolidations
Growth of e-commerce
Forces for Change
Force
Examples
Social trends
Internet chat rooms
Retirement of Baby Boomers
Rise in discount and “big box” retailers
World politics
Iraq–U.S. war
Opening of markets in China
War on terrorism following 9/11/01
Outsourcing noise
Managing Planned Change
Change
Making things different.
Planned Change
Activities that are
intentional and goal
oriented.
Change Agents
Persons who act as
catalysts and assume the
responsibility for managing
change activities.
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.
Resistance to Change
Forms 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
• Deferred resistance clouds the link between source and
reaction
Sources of Resistance to Change
Sources of Individual Resistance to Change
Sources of Organizational Resistance to
Change
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 Overcoming Resistance to Change
 Education and Communication
– Show those effected the logic behind the change
 Participation
– Participation in the decision process lessens resistance
 Building Support and Commitment
– Counseling, therapy, or new-skills training
 Implementing Change Fairly
– Be consistent and procedurally fair
 Manipulation and Cooptation
– “Spinning” the message to gain cooperation
 Selecting people who accept change
– Hire people who enjoy change in the first place
 Coercion
– Direct threats and force
Six Methods for Dealing With Resistance to Change
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
Lewin’s Three-Step Change Model
 Unfreezing
– Change efforts to overcome the pressures of both
individual resistance and group conformity
 Refreezing
– Stabilizing a change intervention by balancing driving
and restraining forces
Force field analysis
• Driving Forces
Forces that direct behavior away from the status quo.
•
Restraining Forces
Forces that hinder movement from the existing equilibrium.
Unfreezing the Status Quo
The Six-Stage Change Process
Kotter’s Eight-Step Plan for Implementing Change
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Establish a sense of urgency by creating a compelling reason
for why change is needed.
Form a coalition with enough power to lead the change.
Create a new vision to direct the change and strategies for
achieving the vision.
Communicate the vision throughout the organization.
Empower others to act on the vision by removing barriers to
change and encouraging risk taking and creative problem
solving.
Plan for, create, and reward short-term “wins” that move the
organization toward the new vision.
Consolidate improvements, reassess changes, and make
necessary adjustments in the new programs.
Reinforce the changes by demonstrating the relationship
between new behaviors and organizational success.
Kotter’s Eight-Step Plan
 Builds from Lewin’s Model
 To implement change:
1.
2.
3.
4.
5.
6.
7.
8.
Establish a sense of urgency
Form a coalition
Create a new vision
Communicate the vision
Empower others by removing barriers
Create and reward short-term “wins”
Consolidate, reassess, and adjust
Reinforce the changes
Unfreezing
Movement
Refreezing