Transcript Organizational Change

Organizational Change
Chapter 18
Organizational Change
• All companies must change in order to remain
competitive
• Change is difficult
– Organizational Inertia
• There are benefits to stability
Forces of Change
External
Demographic Characteristics
Technological Advancements
Shareholder, Customer, and Market Changes
Social and Political Pressures
The Need for Change
Internal
Human Resource Problem/Prospects
Managerial Behavior/Decisions
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Types of Organizational Change
Adaptive
Change
Innovative
Change
Reintroducing a
familiar practice
Introducing a
practice new to
the organization
Low
Introducing a
practice new to
the industry
High
 Degree of complexity,
cost, and uncertainty
 Potential for
resistance to change
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Radically
Innovative
Change
Lewin’s Change Model
• Unfreezing
– Creates the motivation to change
• Benchmarking Data
• Financial data, emerging trends

Changing
– Provides new information, new behavioral
models, or new ways of looking at things

Refreezing
– Helps employees integrate the changed behavior
or attitude into their normal way of doing things
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Assumptions of Lewin’s Model
• Change involves learning something new &
unlearning the old way of doing things
• Change will not occur without motivation
• People are the hub of all organizational
change
• Resistance to change is found even when
change is desirable
A Systems Model of Change
Target Elements of Change
Organizing
Arrangements
Inputs
Outputs
Internal
 Strengths
Strategy
Goals
People
Social
Factors
 Weaknesses
External
Internal
 Organizational
level
 Opportunities
 Department/
group level
 Threats
 Individual level
Methods
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Table 18-1
Kotter’s Eight Steps for Leading Organizational
Change
Step
Description
1)
Establish a sense of urgency
Unfreeze the organization by creating a compelling
reason for why change is needed
2)
Create the guiding coalition
Create a cross-functional, cross-level group of people
with enough power to lead the change
3)
Develop a vision and strategy
Create a vision and strategic plan to guide the change
process
4)
Communicate the changevision
Create and implement a communication strategy that
consistently communicates the new vision and strategic
plan
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Table 18-1
Kotter’s Eight Steps for Leading Organizational
Change
Step
Description
5)
Empower broad-based action
Eliminate barriers to change, use target elements of
change to transform the organization
6)
Generate short-term wins
Plan for and create short-term “wins” or improvements
7)
Consolidate gains and produce
more change
The guiding coalition uses credibility from short-terms
wins to create change. Additional people are brought
into the change process as change cascades throughout
the organization
8)
Anchor new approaches in the
culture
Reinforce the changes by highlighting connections
between new behaviors and processes and
organizational success
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Organizational Development
Resistance to Change
• Emotional/behavioral response to threats to
an established work routine
– Passive or active
– One of three possible outcomes of influence
attempts (Compliance & commitment)
Recipient Characteristics & Resistance
• Resilience to change
– Self-esteem, optimism, internal locus of control
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•
•
•
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Fear of the unknown
Fear of failure
Loss of status/job security
Peer pressure
Past success
Change Agent Characteristics &
Resistance
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•
•
•
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Disruption of culture or group relationships
Personality conflicts
Lack of tact or poor timing
Leadership style
Failure to legitimize change
Overcoming Resistance to Change
Approach
Commonly Used in
Situations Where:
Advantages
Drawbacks
Education and
Communication
There is a lack of
information or
inaccurate
information &
analysis
Once persuaded,
people will often
help with
implementation of
change
Can be very time
consuming if lots of
people are involved
Participation and
Involvement
The initiators do not
have all the
information they
need to design the
change & others
have considerable
power to resist
People who
participate will be
committed to the
implementation of
change
Can be very time
consuming if
participators design
an inappropriate
change
Facilitation and Support
People are resisting
because of
adjustment
problems
No other approach
works as well with
adjustment
problems
Can be very time
consuming,
expensive and still
fail
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Table 18-3
Overcoming Resistance to Change
Approach
Commonly Used in
Situations Where:
Advantages
Drawbacks
Negotiation and
Agreement
Someone or some
group will clearly
lose out in a change
and where that
group has
considerable power
to resist
Sometimes it is a
relatively easy way
to avoid major
change
Can be too
expensive in may
cases if it alerts other
to negotiate for
compliance
Manipulation and
Co-optation
Other tactics will not It can be relatively
work or are too
quick and
expensive
inexpensive
Can lead to future
problems if people
feel manipulated
Explicit and Implicit
Coercion
Speed is essential
and where the
change initiators
possess considerable
power
Can be very risky ad
leave people mad at
the initiators
It is speedy and can
overcome any kind
of resistance
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Stress
• An adaptive response to an environmental
stimulus that places special demands on the
individual
• Fight-or-flight response
– Physiological changes
– Physiological reactions
• Eustress vs. Distress
• Stressors – factors that cause stress
Performance
Stress and Performance
Stress
Coping Strategies
• Control strategy
– Aggressively try to solve problem
• Escape strategy
– Avoid problem
• Symptom Management strategy
– Deal with symptoms (drinking, meditating, etc.)
Mitigating Factors
• Social Support
– Esteem support
– Informational support
– Social companionship
– Instrumental support
• Hardiness
– Challenges vs. stressors
– Internal locus of control
Personality & Stress
• Type A personality
– Never ending struggle to achieve more and more in
less and less time
– Sense of urgency about time
– Competitive
– Aversion to idleness
– Type A’s tend to:
• Speak rapidly
• Answer questions quickly
• Be sarcastic (hide rudeness in humor)